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Steel Technologies Reports
Record Sales and Net Income

April 19, 2004 — Steel Technologies Inc. reported record net income of $6.9 million on record sales of $184.8 million for the second quarter, and record net income of $9.3 million on record sales of $315.6 million for the six months ended March 31, 2004.

Second Quarter Results—Net income of $6.9 million ($ 0.68 per diluted share) compares with net income of $2.0 million ($0.20 per diluted share) in the year-earlier quarter. Sales, $184.8 million, represent a 42% increase over $130.1 million for the same period a year ago.

Six-Month Results—Year-to-date net income, $9.3 million ($0.93 per diluted share), represents a 61% increase over $5.8 million ($0.58 per diluted share) in the first six months of fiscal 2003. Sales rose 23% to a record $315.6 million from $256.1 million for the same period last year.

Comments—"We have made significant customer-driven investments over the last few years to expand our capacity and strengthen our market position," said Bradford T. Ray, Chairman and CEO. "Our marketing strategies and expanded capabilities have resulted in new business awards that launched in the second fiscal quarter. We are seeing growth across all facilities and regions as a result of these new programs and the improving economic environment.

"Our record tonnage shipped in the second quarter increased 39% over last year," added Mr. Ray. "Recent investments have us well positioned to manage these higher volumes and we are realizing positive impact on our financial performance from the increased throughput. Our current backlog reflects similar patterns going forward.

"Our Mi-Tech Steel joint venture experienced substantial growth during the quarter as sales increased 53% over year-earlier levels, fueling a significantly improved earnings contribution," Mr. Ray continued.

"As stated in our March release on the outlook for the second quarter, a portion of our earnings during the quarter was attributable to higher prices due to rising raw material costs," commented Mr. Ray. "This benefit will reverse in subsequent quarters as the full effect of the raw material increases works through inventory."

As previously reported, on March 31, 2004, in connection with the completion of a public stock offering for 2,905,000 shares, the Company realized net proceeds of approximately $47.3 million. "This offering gives us financial flexibility to pursue our strategic growth plans," concluded Mr. Ray.

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 21 facilities, including its joint-venture operations, located throughout the United States and Mexico.

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