Metal Management, Houchens Form JV

Metal Management, Inc. announced that it has entered into a joint venture agreement with Houchens Industries, Inc. The name of the joint venture is Metal Management Nashville, LLC.

The company will operate scrap metal businesses in Nashville, Tenn. and Bowling Green, Ky. Metal Management will contribute approximately $10 million in addition to marketing, operational and development expertise to the joint venture. Houchens Industries will make an equal capital contribution in a combination of real estate, cash and other assets to form the joint venture.

Metal Management and Houchens Industries will be equal partners in the joint venture. Metal

Daniel Dienst, chairman, CEO and president of Metal Management, Inc., noted, "This joint venture is an outstanding opportunity for Metal Management to expand its footprint and, in particular, to gain another facility on the river system in Nashville. The Nashville operation is a start up that will develop gradually over Fiscal 2006, and we expect will become fully developed into an automobile shredding operation by March 2006. The operation in Bowling Green is an existing business that is a feeder operation and currently represents a small metal and paper recycling operation.

“Bowling Green, albeit smaller than our expected business that will develop in Nashville over the next 14 months, is and has been profitable. Metal Management will develop the Nashville operation and operate both recycling facilities and market all of the material for the joint venture. The operations will be a component of our Central Region operations and report to Skip Rouster."

Dienst continued, "Houchens Industries is an outstanding partner with tremendous vision and strong financial resources. In addition to their business acumen and financial strength, they bring to the joint venture a 26-acre property on the Cumberland River that is properly permitted for scrap metal recycling including automobile shredding. Skip Rouster and I look forward to developing and operating a scrap metal business with Houchens Industries."

Jimmie Gipson, chairman of Houchens Industries, Inc., noted, "We are excited to join Metal Management in this joint venture. Metal Management is the largest and most professionally operated recycler of scrap metals in the United States and among the largest in the world. Their size and scale as well as expertise in developing scrap metal businesses make them an ideal partner. We look forward to enjoying an outstanding partnership with Metal Management."