Aug. 3, 2006 — Reliance Steel & Aluminum Co. completed its previously disclosed acquisition of Yarde Metals, Inc., a metals service center company headquartered in Southington, Conn.

The company paid $100 million in cash and assumed approximately $102 million of net debt for all outstanding Yarde Metals common stock. The acquisition will be immediately accretive to Reliance's earnings. Current management and employees will remain in place with Tracy Yarde Smith serving as President of Yarde Metals, Inc., a wholly owned subsidiary of Reliance.

Founded in 1976, Yarde Metals specializes in the processing and distribution of stainless steel and aluminum plate, rod and bar products. Yarde has additional metals service centers in Pelham, N.H.; East Hanover, N.J.; Hauppauge, N.Y.; High Point, N.C.; Streetsboro, Ohio; and Limerick, Pa., and a sales office in Ft. Lauderdale, Fla. Yarde's net sales for the fiscal year ended June 30, 2006 were approximately $385 million.

Reliance's CEO, David H. Hannah, said, "This acquisition, our second largest in terms of revenues, not only strengthens our market presence but also complements our existing geographic network. We look forward to Yarde's continued growth and contribution to our overall success." Craig Yarde, founder of Yarde Metals, said, "We are very pleased to become a part of Reliance. This was the right move for the future of the company and all of its associates."

Reliance entered into a $100 million, 364-day, unsecured credit facility to assist with the financing of the Yarde acquisition and to provide for working capital needs and other growth initiatives.

Earlier this year, Reliance completed its acquisition of Earle M. Jorgensen Co. (April 3, 2006). The transaction was valued at approximately $984 million, including the assumption of Jorgensen's net debt. The consideration paid included cash of approximately $369 million and the issuance of approximately 4.5 million shares of Reliance common stock. Earle M. Jorgensen operates as a wholly owned subsidiary of Reliance.

The company recently completed a two-for-one stock split in the form of a 100% stock dividend (July 19, 2006). The company also increased its regular cash dividend rate by 20%, effective with the 2006 third quarter dividend payment.

Headquartered in Los Angeles, Calif., Reliance Steel & Aluminum Co. is one of the largest metals service center companies in the United States. Through a network of more than 150 locations in 37 states and Belgium, Canada, China and South Korea, the company provides value-added metals processing services and distributes a full line of over 90,000 metal products. Products include galvanized, hot-rolled and cold-finished steel; stainless steel; aluminum; brass; copper; titanium and alloy steel sold to more than 95,000 customers in various industries.