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Steel Technologies Completes the Sale of Its Custom Steel, Inc. Subsidiary

Posted on: Monday, 3 April 2006, 18:00 CDT

Steel Technologies Inc. (NASDAQ/NM: STTX) today announced that it has completed the previously announced sale of its Custom Steel, Inc. subsidiary to American Railcar Industries, Inc. (NASDAQ: ARII) ("ARI"). Proceeds from the sale totaled approximately $18 million, including approximately $5 million for inventories. Steel Technologies intends to use $13 million of this amount to reduce indebtedness under its revolving credit agreement. The remainder will be used for general corporate purposes.

The Custom Steel facility in Kennett, Missouri, produces fabricated parts that primarily support ARI's nearby railcar manufacturing operations.

Commenting on the announcement, Bradford T. Ray, Chairman and Chief Executive Officer of Steel Technologies, said, "We are pleased to complete this transaction and are committed to working with ARI through a transition period to help ensure a smooth changeover for the employees of the Kennett facility. As our only fabrication facility, the Kennett operation has a stronger strategic fit long term as part of ARI, while Steel Technologies will remain highly focused on growth opportunities in our core steel-processing segment."

Steel Technologies processes flat-rolled steel to specific thickness, width, temper, finish and shape requirements for automotive, appliance, lawn and garden, office furniture, agriculture, construction, hardware, and consumer goods. The Company has 19 facilities, including its joint-venture operations, located throughout the United States and Mexico. More information about the Company may be found on the World Wide Web at www.steeltechnologies.com.

Statements contained in this release, which are not historical facts, are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties (contained in the Company's SEC filings), which could cause actual results to differ materially from those projected. SEC filings may be obtained from the SEC or by contacting the Company.

Source: Business Wire

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