Olympic Steel Reports Record Sales and Earnings for First Quarter of 2004 CLEVELAND, April 29 /PRNewswire-FirstCall/ -- Olympic Steel, Inc., , a national steel service center, today announced record financial results for the first quarter ended March 31, 2004. Net sales for the first quarter of 2004 increased 62.8% to a record $187.0 million from $114.9 million for the first quarter a year ago. Tons sold increased 43.2% to a record 385 thousand from 269 thousand in the first quarter of 2003. First quarter 2004 net income was also the highest ever for the Company, totaling $10.8 million, or $1.12 per share, compared to a net loss of $(479) thousand, or $(.05) per share for last year's first quarter. "The diligent execution of our management plans positioned us extremely well during the first quarter, when steel demand and prices increased significantly," stated Michael D. Siegal, Chairman and Chief Executive Officer. "We are very pleased with our ability to perform and grow during a period of very tight steel supply. As indicated in our fourth quarter earnings release, in anticipation of a market recovery we aggressively and intentionally increased our inventory position at the end of 2003. This allowed us to be favorably inventoried to meet our customers' significantly increasing demand for steel during the first quarter. Our 43.2% increase in shipping volumes for the first quarter far outpaced the service center industry increase of approximately 25%. The increased volume of steel processed through our assets was a significant contributor to our best ever quarterly financial results." "Our commercial relationships will continue to be guided by our core values of integrity, respect and financial stability, as we expect customer demand to remain strong, prices to remain elevated, and availability of steel to be tight through the second quarter. We believe we are favorably positioned in terms of inventory, equipment capacity, and working capital availability to continue performing well through the seasonally stronger second quarter," concluded Mr. Siegal. Founded in 1954, Olympic Steel is a North American steel service center that is experienced in the specialized processing and distribution of large volumes of flat-rolled carbon and stainless steel products. Headquartered in Cleveland, Ohio, the Company operates 12 distribution and processing facilities and participates in two joint ventures in Michigan. For further information about Olympic Steel, Inc., visit the Company's web site at http://www.olysteel.com/ . It is the Company's policy not to make quarterly or annual sales or earnings projections for external use and not to endorse any analyst's sales or earnings estimates. Forward-looking statements in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. Readers are cautioned not to place undue reliance on these forward- looking statements that speak only as of the date hereof. Such risks and uncertainties include, but are not limited to: general business, economic and political conditions; competitive factors such as the availability and pricing of steel and fluctuations in customer demand; layoffs or work stoppages by the Company's, suppliers', or customers' personnel; equipment installation delays or malfunctions; and customer, supplier, and competitor consolidation or insolvency. Please refer to the Company's Securities and Exchange Commission filings for further information. OLYMPIC STEEL SELECTED FINANCIAL INFORMATION (in thousands, except per share data and ratios) Three Months Ended March 31, 2004 2003 SUMMARY RESULTS OF OPERATIONS: (unaudited) Net sales $187,033 $114,880 Operating income 18,835 379 Income (loss) before income taxes 17,495 (798) Net income (loss) $10,847 $(479) Earnings per share: Net income (loss) per share - basic $1.12 $(0.05) Net income (loss) per share - diluted $1.09 $(0.05) As of March 31, Dec. 31, 2004 2003 2003 SUMMARY BALANCE SHEET DATA: (unaudited) Accounts receivable, net $82,319 $59,167 $56,501 Inventories 94,739 92,435 92,775 Net property and equipment 87,787 95,331 89,782 Total assets 278,056 258,982 249,002 Current liabilities 51,562 35,666 42,574 Total debt 100,006 109,080 97,797 Shareholders' equity 123,266 115,024 112,236 Shareholders' equity per share 12.77 11.93 11.63 Debt-to-equity ratio .81 to 1 .95 to 1 .87 to 1 Three Months Ended March 31, 2004 2003 OTHER DATA: (unaudited) Capital expenditures 107 95 EBITDA (a) 21,206 2,466 (a) Defined as operating income plus depreciation plus asset impairment charge. It is the Company's policy not to make quarterly or annual sales or earnings projections for external use and not to endorse any analyst's sales or earnings estimates. OLYMPIC STEEL RESULTS OF OPERATIONS (in thousands, except per share and tonnage data) Three Months Ended March 31, 2004 2003 (unaudited) Tons sold Direct 330,095 229,501 Toll 55,049 39,434 Total tons 385,144 268,935 % change 43.2% (13.0%) Net sales $187,033 $114,880 % change 62.8% 4.2% Cost of materials sold 133,546 90,987 Gross profit 53,487 28.6% 23,893 20.8% Operating expenses Warehouse and processing 10,884 5.8% 7,988 7.0% Administrative and general 9,677 5.2% 5,808 5.1% Distribution 5,071 2.7% 3,764 3.3% Selling 5,316 2.8% 2,754 2.4% Occupancy 1,333 0.7% 1,113 1.0% Depreciation 2,071 1.1% 2,087 1.8% Asset impairment charge 300 0.2% - 0.0% Total operating expenses 34,652 18.5% 23,514 20.5% Operating income 18,835 10.1% 379 0.3% Income (loss) from joint ventures 78 (29) Income before financing costs and income taxes 18,913 350 Interest and other expense on debt 1,418 0.8% 1,148 1.0% Income (loss) before income taxes 17,495 9.4% (798) (0.7%) Income tax benefit (provision) (6,648) 38.0% 319 40.0% Net income (loss) $10,847 $(479) Earnings per share: Net income (loss) per share - basic $1.12 $(0.05) Weighted average shares outstanding - basic 9,675 9,644 Net income (loss) per share - diluted $1.09 $(0.05) Weighted average shares outstanding - diluted 9,959 9,644 It is the Company's policy not to make quarterly or annual sales or earnings projections for external use and not to endorse any analyst's sales or earnings estimates. DATASOURCE: Olympic Steel, Inc. CONTACT: Richard T. Marabito, Chief Financial Officer of Olympic Steel, Inc., +1-216-292-3800, or fax, +1-216-292-3974 Web site: http://www.olysteel.com/

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