ACIER LEROUX INC. - WINDS UP A RECORD YEAR NET EARNINGS OF $6.5 MILLION OR $0.90 PER SHARE SALES OF $161.9 MILLION UP 86.8%.

BOUCHERVILLE, Quebec--(BUSINESS WIRE)--Dec. 19, 1994--ACIER LEROUX INC.(ME:LER.A, LER.B, LER.D, LER.WT) During its fiscal year ended October 31, 1994, the steel distributor ACIER LEROUX INC. saw its net earnings rise to $6,496,000, up from $1,432,000 in 1993, an increase of 353.6%. Earnings per share amounted to $0.90 on a weighted average of 7,203,055 shares outstanding in 1993-1994, compared with $0.31 on 4,629,312 shares outstanding in 1992-1993. Fully diluted earnings per share amounted to $0.77 in 1993-1994. Consolidated sales totalled $161,881,000, close to double the previous year's figure.

The strong growth in revenues and earnings can be attributed to:

- a 58.7% higher volume of shipments, which totalled 238,000 tons compared with 150,000 tons last year - a rise that reflects first and foremost the Company's internal growth, and secondly, the contribution of new centres: those of Ennisteel for a three- month period, the Amos centre for seven months and the Ottawa centre for two months; and

- a 17.6% increase in Acier Leroux's average selling price, which rose to $680 per ton, thereby almost equalling the peak reached in 1988.

Fourth-quarter results ______________________

For the three-month period ended October 31, 1994, net earnings amounted to $2,942,000, up 319.1% over the corresponding quarter in 1993. Earnings per share rose to $0.38, an increase of 192.3%. Sales grew by $42.2 million, or 145.1%, to reach $71.3 million. A portion of the increase in sales was due to the $24.8 million contribution by Ennisteel's centres, which generated results that exceeded the expectations of Acier Leroux's management for the last quarter.

During the fourth quarter, Acier Leroux's average selling price was $709 per ton, up 19.6% over the same period last year. Major shift in geographic distribution of activities.

The acquisition of the shares of Ennisteel Corp. and assets of the Harricana Metal Division of Denharco, combined with the opening of a new service centre in Ottawa, have obviously altered the Company's geographic breakdown of sales: -0-

                                        1994          1993
                                        ____          ____
Quebec                                  62%           71%
United States                           23%           19%
Ontario                                  8%            3%
Atlantic Provinces                       7%            7%

CONTACT: Andre Leroux

              Vice-President, Administration
              [phone]