EMJ Reports Fiscal 2003 Results.

Business Editors

BREA, Calif.--(BUSINESS WIRE)--May 1, 2003

The Earle M. Jorgensen Company ("EMJ") today reported results for the Company's fourth quarter and fiscal year ended March 31, 2003.

Revenues increased 9.5% to $246.0 million and operating income increased 78.0% to $21.0 million for the fourth quarter of fiscal 2003, when compared to $224.6 million and $11.8 million, respectively, for the same period in fiscal 2002. Net income for the fourth quarter of fiscal 2003 was $8.0 million versus $1.0 million for the same period in fiscal 2002.

Revenues increased 2.8% to $919.9 million and operating income increased 26.0% to $63.4 million for fiscal 2003, when compared to $895.1 million and $50.3 million, respectively, for fiscal 2002. After recognizing an extraordinary loss of $12.3 million resulting from early termination of debt, the Company reported net income of $2.4 million for fiscal 2003 versus $5.4 million for fiscal 2002. The fiscal 2002 period included a non-operating excise tax of $1.9 million related to an IRS settlement agreement.

Maurice S. Nelson, Jr., EMJ's President and Chief Executive Officer stated, "Fiscal 2003 was a good year for EMJ given the challenges our industry experienced during a time of economic uncertainty. Throughout fiscal 2003, our business levels were stable, although we did experience slightly higher volumes in our fourth quarter due to higher cyclical demand and increased market share. Tonnage sold during the fourth quarter and fiscal 2003 increased 7% and 3%, respectively, when compared to the same periods of fiscal 2002. Our Canadian operations enjoyed a record year due to increased capacity and efficiencies from new facilities, effective marketing of core products and services, and favorable economic conditions."

"Our gross and operating margins remained strong throughout fiscal 2003, reflecting our ongoing strategy of successfully marketing our core products and services while maintaining disciplined cost controls. We believe this strategy, together with maintaining balanced inventories, has and will continue to allow us to effectively compete in the marketplace."

"Our ability to grow market share profitably in a weak economy during fiscal 2003 underscores the success of our strategies, including the expansion and automation of our Chicago facility and our commitment to provide customers with the best service in the industry. Even though we do not expect market conditions to dramatically improve over the next year, we are excited by the opportunities to continue to leverage our strengths and capabilities to increase our growth and market share in fiscal 2004."

Nelson concluded his remarks by stating, "I want to thank all the employees at EMJ for the effort given and results achieved during fiscal 2003. We are confident we can continue to build on our past successes and look forward to new challenges and opportunities in fiscal 2004."

EMJ, with headquarters in Brea, is one of the largest independent distributors of metal products in North America with 35 service and processing centers. EMJ inventories more than 25,000 different bar, tubing, plate, and various other metal products, specializing in cold finished carbon and alloy bars, mechanical tubing, stainless bars and shapes, aluminum bars, shapes and tubes, and hot-rolled carbon and alloy bars.

The Company has scheduled a conference call with industry analysts and other interested persons to discuss its fourth quarter and fiscal 2003 results. The call will take place on May 2, 2003 at 8:00 a.m. PDT. The dial-in phone number for those interested in participating on the call is 800-834-5978. The Company's results can also be found on its internet website at www.emjmetals.com.

This release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995, including, without limitation, the statement relating to anticipated growth in fiscal 2004. Actual events or results may differ materially from expectations and are subject to risks, uncertainties and other factors over which we have no control, such as the cyclicality of the metals industry and the industries that purchase our products, fluctuations in metals prices, risks associated with the implementation of new technology, general economic conditions, competition in the metals service center industry and our "on-time or free" delivery guaranty. These factors and additional information are included in the Company's reports on file with the Securities and Exchange Commission. In particular, we refer you to our Registration Statement on Form S-4 filed on July 3, 2002.

                      Earle M. Jorgensen Company
                         Financial Highlights
                              (in $000's)


                           Fourth Quarter Ended  Twelve Months Ended
                                  March:               March:
                              2003     2002        2003     2002
                            ------------------  --------------------
 Statement of Operations
  and Other Data:
Revenues                    $245,991 $224,591    $919,927 $895,058
Gross Profit                  70,769   61,948     261,365  253,067
 Warehouse and delivery
  expense                     33,197   30,245     127,080  124,457
 Selling expense               8,518    7,946      32,329   31,932
 General and administrative
  expense                      8,009   11,973      38,590   46,405
                            ------------------  --------------------
Operating expenses            49,724   50,164     197,999  202,794
                            ------------------  --------------------
Operating income              21,045   11,784      63,366   50,273
Net interest expense          12,120   10,767      47,206   42,545
Income before income taxes
 and extraordinary loss        8,925    1,017      16,160    5,809 (a)
Extraordinary loss -
 early termination of debt       ---      ---      12,278      ---
Net income                     8,011      972       2,382    5,354
EBITDA (b)                    21,310   16,855      71,879   64,422
Capital expenditures           2,265    5,068      15,335   24,531

Reconciliation of EBITDA:
 Operating income            $21,045  $11,784     $63,366  $50,273
 Depreciation and
  amortization                 2,847    2,839      11,369   11,449
 Postretirement expense          120       62         498      249
 Restructuring and other
  non-recurring charges          ---      250         ---    1,861
 LIFO charge (credit)         (2,702)   1,920      (3,354)     590
                            ------------------  --------------------
 EBITDA                      $21,310  $16,855     $71,879  $64,422
                            ==================  ====================

(a) This amount is after a non-operating expense of $1.9 million
    for excise tax paid under an IRS settlement.

(b) "EBITDA" represents income from operations before net interest
    expense, taxes, depreciation and amortization, LIFO adjustments,
    non-recurring charges and certain non-cash expenses.


                                                    March      March
                                                  31, 2003    31, 2002
                                                 ----------- ---------
       Balance Sheet Data:
Cash and cash equivalents                           $20,030   $21,300
Accounts receivable, net                             97,292    89,279
Inventory                                           213,590   186,868
Net property, plant and equipment                   113,037   111,243
Total assets                                        490,741   443,998
Accounts payable                                    119,815    88,484
Accrued liabilities                                  45,514    36,237
Revolving credit facility                            72,007    81,700
Other long-term debt (including current portion)    258,530   211,195
Total stockholder's deficit                         (48,016)  (15,786)