April 4, 2006 — Steel Technologies Inc. has completed the previously announced sale of its Custom Steel, Inc. subsidiary to American Railcar Industries, Inc.

Proceeds from the sale totaled approximately $18 million, including approximately $5 million for inventories. Steel Technologies intends to use $13 million of this amount to reduce indebtedness under its revolving credit agreement. The remainder will be used for general corporate purposes.

Commenting on the announcement, Bradford T. Ray, Chairman and CEO of Steel Technologies, said, "We are pleased to complete this transaction and are committed to working with ARI through a transition period to help ensure a smooth changeover for the employees of the Kennett facility. As our only fabrication facility, the Kennett operation has a stronger strategic fit long term as part of ARI, while Steel Technologies will remain highly focused on growth opportunities in our core steel-processing segment."

“We are pleased to have completed the acquisition of Custom Steel,” commented James J. Unger, CEO of ARI. “The addition of this facility to our railcar manufacturing business increases the percentage of railcar parts that are manufactured by the company. We are excited to welcome the employees of the Kennett facility to ARI. For many years we have been the beneficiary of their good work and are very pleased to have them join us in manufacturing railcars for our customers.”

Steel Technologies processes flat-rolled steel to specific thickness, width, temper, finish and shape requirements for a wide range of applications. The company has 19 facilities, including its joint-venture operations, located throughout the United States and Mexico.

American Railcar Industries, Inc. is a leading North American manufacturer of covered hopper and tank railcars. ARI also repairs and refurbishes railcars, provides fleet management services and designs and manufactures certain railcar and industrial components used in the production of its railcars as well as railcars and non-railcar industrial products produced by others. ARI provides its railcar customers with integrated solutions through a comprehensive set of high quality products and related services.