Sep. 27, 2006 — Worthington Industries, Inc. reported net earnings of $43.2 million on first-quarter record net sales of $778.7 million for the three months ended August 31, 2006.

First Quarter Results — The $43.2 million net earnings ($0.48 per diluted share) reflect a 52% increase from first quarter 2006 net earnings of $28.4 million ($0.32 per diluted share). Net sales of $778.7 million were a first quarter record, increasing 12% from first quarter 2006 net sales of $694.1 million. Operating income doubled compared to the year-ago first quarter.

“This first quarter reflects good results — in some cases, great results — at all three business segments and our joint ventures. As key segments of the economy began to slow during the quarter, our management team performed well in balancing volumes and margins,” said John P. McConnell, Chairman and CEO.

The ratio of total debt to capitalization was 27.9% at quarter end compared to 31.6% a year ago. Annualized return on equity was 18.0% in the first quarter of fiscal 2007 compared to 13.7% in the first quarter of fiscal 2006.

Quarterly Segment Results — Unit selling prices were up in all three business segments — Steel Processing, Metal Framing and Pressure Cylinders — compared to the year ago first quarter, and in Steel Processing and Metal Framing compared to last quarter. Spreads between selling prices and material costs widened in all three business segments compared to the year ago first quarter, and in Steel Processing and Metal Framing compared to last quarter.

In the Steel Processing segment, quarterly net sales rose $49.4 million (14%) to $401.0 million from $351.6 million in the comparable quarter of fiscal 2006. The increase was due to higher pricing (up 6%) and higher volumes (up 7%) relative to the prior year. Operating income more than doubled due to the combination of higher volumes and a wider spread between selling prices and material costs compared to depressed spreads in the first quarter of fiscal 2006. The company’s August 16, 2006, acquisition of Precision Specialty Metals (PSM) contributed $2.5 million in sales to the Steel Processing segment for the time it was owned during the quarter.

In the Metal Framing segment, net sales increased $7.0 million (3%) to $212.3 million from $205.3 million in the comparable quarter of fiscal 2006. Average selling prices improved 15%, more than offsetting an overall volume decline of 10%, as measured in tons. A portion of the tonnage decline was attributable to increased sales of the new Ultrasteel product which is lighter than traditional framing products per linear foot. Operating income for the quarter rose 71% compared to the prior year as a result of a better spread between selling prices and material costs.

In the Pressure Cylinders segment, net sales of $121.5 million—a first quarter record—reflect an increase of $14.4 million (13%) compared to $107.1 million in the comparable quarter of fiscal 2006. Quarterly operating income $16.7 million. Average selling prices improved significantly due to product mix and price increases in certain product lines, to cover increased material costs. Strong results in Europe, improved volumes in several North American product lines, and plant consolidation savings led to a doubling in operating income from the prior year.

Worthington’s joint ventures added significantly to first quarter results. Equity in the net income of six unconsolidated affiliates totaled $18.3 million for the quarter, compared to $13.2 million in the year ago quarter, a 38% increase. The improvement was due to record performance at Worthington Armstrong Venture (WAVE) and record first quarter performance at TWB and Aegis.

Outlook — Worthington anticipates that demand in two of its key end markets—commercial construction (especially office buildings) and automotive—may continue to soften. The company says that recent announcements of production cuts by General Motors, Ford and Chrysler will create a more challenging environment for the Steel Processing segment. In addition, uncertainties regarding the economy and interest rates plus relatively high material prices have led to delays in planned commercial construction starts by customers of the Metal Framing segment. Other end markets served by the Pressure Cylinders segment and certain of the company’s joint ventures continue to be strong and stable.

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 62 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.