March 30, 2006 — Steel Technologies Inc. expects to report sales of approximately $250 million and earnings of approximately $0.21 per diluted share for the second quarter of fiscal 2006, which ends on March 31, 2006.

The company expects shipments for the quarter to be approximately 320,000 tons, which is in line with projections stated during the company’s January conference call.

The company's expectations include the operations of its Custom Steel, Inc. subsidiary. Steel Technologies has signed a definitive agreement to sell this subsidiary to American Railcar Industries, Inc., with the transaction expected to close on or about April 1, 2006. Steel Technologies anticipates that Custom Steel will be presented as a discontinued operation in its interim financial statements for the quarter ending March 31, 2006.

Steel Technologies processes flat-rolled steel to specific thickness, width, temper, finish and shape requirements for automotive, appliance, lawn and garden, office furniture, agriculture, railcar, construction, hardware, and consumer goods. The company has 20 facilities, including its joint-venture operations, located throughout the United States and Mexico.