Schnitzer Makes Appointments

Schnitzer Steel announced that it has appointed Kelly Lang to the position of vice president for Asset and Operational Integration. He will assist in managing the integration of acquired businesses into the Schnitzer operation. Lang had previously served as acting CFO.

The company also appointed Gregory Witherspoon interim CFO.

The company also announced that it has received a formal order of investigation involving Schnitzer’s previous investigation of a former practice of paying commissions to Asian customers for accepting ferrous scrap.

Schnitzer had voluntarily notified the SEC and the U.S. Department of Justice of the independent investigation; and instructed its outside law firm to provide those agencies with the information obtained as a result of the investigation; and continues to cooperate fully with those agencies. The previously announced investigation is being conducted by an independent law firm working under the supervision of the Audit Committee of the Company's Board of Directors.

Finally, the company also announced that it has signed a letter of intent setting forth its intention to proceed with a proposed acquisition of all of the outstanding membership interests in Metals Recycling LLC, a limited liability company, other than membership interests held by Prolerized New England Company from Izzo.

PNE currently owns approximately 60 percent of the outstanding equity of MRL and Izzo owns approximately 40 percent of the outstanding equity.

The company is currently an indirect owner of 50 percent of PNE, and on June 8, 2005 it entered into an agreement with Hugo Neu and its affiliates to acquire the 50 percent in PNE it does not currently own.

Schnitzer and Izzo intend that the acquisition would occur as soon as practicable following (and in any event not before) the consummation of the transactions contemplated by the Master Agreement.

MRL has scrap metal operations in New England.