Schnitzer Steel Industries’ Board of Directors has elected John D. Carter as Chief Executive Officer and President, and Kenneth M. Novack as Chairman, replacing Robert W. Philip, who stepped down from these positions. The Board also elected Mr. Carter to the Board of Directors. All appointments are effective immediately.

"John Carter's in-depth experience managing global businesses, and his experience as an attorney with responsibility for legal compliance, makes him perfectly equipped for this role," said Mr. Novack. "In John, we've found a capable leader with the right skills to meet the Board's objectives."

"The Board has charged executive leadership with capitalizing on the many opportunities to grow Schnitzer Steel's successful operations and build shareholder value in the years to come, all within a culture of ethical and legal compliance," said Mr. Carter. "I'm honored to be a part of the team."

Mr. Carter, 59, is a Director of Northwest Natural Gas Company, Flir Systems, and Kuni Automotive in the U.S. In the United Kingdom, he serves as a Director of London & Continental Railways and Cross London Rail Links. He served until 2002 as Executive Vice President and Director of Bechtel Group, Inc. His duties included providing senior executive oversight of Bechtel's telecommunications, industrial, and water businesses. While serving as President of Bechtel's Europe, Africa, Middle East, Southwest Asia region, he played a lead role in the organizational and financial restructuring of the Channel Tunnel Rail Link in the United Kingdom, in addition to managing the execution of other power, petroleum and civil projects. An attorney, he also served as General Counsel of the Bechtel global engineering and construction organization.

Mr. Novack, a Director since 1991, is Chief Executive Officer of Schnitzer Investment Corp. He also served as Chairman of Lasco Shipping Co.

Schnitzer’s Board, through its Audit Committee, is continuing its independent investigation of alleged practices of paying commissions to purchasing managers of the company's customers in Asia in connection with export sales of recycled ferrous metals. Schnitzer disclosed this investigation, which is being conducted through the Audit Committee by an outside law firm, in November 2004. The company has notified the U.S. Department of Justice and the Securities and Exchange Commission of the investigation; has instructed its outside law firm to provide those agencies with the information obtained as a result of the investigation; and is cooperating fully with those agencies.