Aug. 17, 2006 — Worthington Industries, Inc. has acquired Precision Specialty Metals, Inc. (PSM) for $33.7 million in cash. The purchase price is subject to change pursuant to a working capital adjustment and an earnout that could be paid based on certain targets being met through 2009.

PSM, a processor of stainless steel located in Los Angeles, Calif., had revenues of approximately $50 million for the last calendar year. PSM will be included in Worthington's Steel Processing business segment.

Worthington Steel President, Joe Harden, stated, "This transaction represents a natural extension of our focus on value-added processing of flat-rolled steel, providing us with a new product line, stainless steel, and a West Coast base for the introduction of carbon flat-rolled steel processing."

Worthington expects the acquisition to be nominally accretive to earnings per share in fiscal 2007.

Worthington Steel, a Worthington Industries company, is one of America's largest independent steel processors of flat rolled steel. Operating 11 facilities across the United States, the company offers the widest range of services in the industry including acrylic coating, cleaning, cold-rolling, configured blanking, cutting-to-length, dry lubricating, edging, galvannealing, hot-dipped galvanizing, hydrogen annealing, pickling, slitting, temper rolling and tension leveling.

Worthington Industries is a leading diversified metal processing company with annual sales of approximately $3 billion. The Columbus, Ohio, based company is North America's premier value-added steel processor and a leader in manufactured metal products such as metal framing, pressure cylinders, automotive past model service stampings, metal ceiling grid systems and laser welded blanks. Worthington employs more than 8,000 people and operates 61 facilities in 10 countries.

Founded in 1955, the company operates under a long-standing corporate philosophy rooted in the golden rule, with earning money for its shareholders as the first corporate goal. This philosophy, an unwavering commitment to the customer, and one of the strongest employee/employer partnerships in American industry serve as the company's foundation. Worthington Industries is listed as one of America's Most Admired Companies and one of the 100 Best Companies to Work For in America by Fortune magazine.