EMJ Reports Fourth Quarter and Fiscal 2004 Results.

Business Editors

LYNWOOD, Calif.--(BUSINESS WIRE)--May 25, 2004

The Earle M. Jorgensen Company ("EMJ") today reported results for the Company's fourth fiscal quarter of 2004 and fiscal year ended March 31, 2004.

Revenues increased 30.9% to $322.1 million and operating income increased 16.7% to $24.5 million for the fourth quarter of fiscal 2004, when compared to $246.0 million and $21.0 million, respectively, for the same period in fiscal 2003. The Company had record revenues for the quarter, with tonnage shipped up approximately 22% from the prior year quarter. Net income for the fourth quarter of fiscal 2004 was $10.0 million versus $8.0 million for the same period in fiscal 2003. The 2004 fourth quarter financial results include a charge to record inventory on a last in first out basis (LIFO) of $13.8 million.

Revenues increased 13.1% to $1,040.4 million in fiscal 2004 when compared to $919.9 million for fiscal 2003. Operating income increased 36.0% to $69.5 million for fiscal 2004, as compared to $51.1 million for fiscal 2003. Fiscal 2003 included a loss of $12.3 million resulting from early termination of debt. Net income for fiscal 2004 was $15.3 million compared to $2.4 million for the same period in fiscal 2003. Fiscal 2004 results included a gain of $1.2 million from the sale of surplus property, $4.9 million of pre-tax income for redemption of life insurance policies and a charge related to LIFO of $14.3 million.

Maurice S. Nelson, Jr., EMJ's President and Chief Executive Officer stated, "We are very pleased with our record fourth quarter results. We were well positioned to respond to the recent dramatic changes in the industrial metals market. Our goal is to maintain a consistent source of metals to our customers who depend on EMJ for their materials supplies."

"Nearly all of the industries that we serve have shown dramatic growth in demand, and most of our locations shipped record volumes in the fourth quarter."

EMJ also announced that the proposed restructuring of the combined capital structure of EMJ with Earle M. Jorgensen Holding Company, Inc. ("Holding"), its parent company, had been delayed. Because of the delay, additional negotiations among Holding's security holders and changes to the structure of the transaction are required before it can proceed. As EMJ noted in January, the transaction would not have affected its day-to-day operations, and likewise, the delay will not affect its customers, suppliers and employees, who will continue to deal with the Earle M. Jorgensen Company.

EMJ is one of the largest independent distributors of metal products in North America with 36 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 2004 results. The call will take place on May 26, 2004 at 8:00 a.m. (Pacific). The dial-in phone number for those interested in participating on the call is 800-370-8105. This press release can also be found on the Company's Internet website at www.emjmetals.com/emjonline/pr.asp.

This release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. 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)

                             Three Months Ended   Twelve Months Ended
                             March 31, March 31,  March 31,  March 31,
                                2004      2003       2004       2003
Statement of Operations and
 Other Data:
Revenues                     $322,066  $245,991  $1,040,367  $919,927
Gross Profit                   86,193    70,769     286,101   261,365
   Warehouse and delivery
    expense                    36,764    33,197     135,421   127,080
   Selling expense             13,223     8,518      38,254    32,329
   General and administrative
    expense                    11,672     8,009      42,954    38,590
   Loss on early retirement
    of debt                       ---       ---         ---    12,278
Operating expenses             61,659    49,724     216,629   210,277
Operating income               24,534    21,045      69,472    51,088
Net interest expense           12,887    12,120      51,093    47,206
Income before income taxes     11,647     8,925      18,379     3,882
Net income (loss)               9,967     8,011      15,252     2,382
EBITDA (a)                     27,331    23,892      80,756    62,457
Capital expenditures            3,749     2,265      10,530    15,335

Reconciliation of EBITDA:
   Net income (loss)           $9,967    $8,011     $15,252    $2,382
   Depreciation and
    amortization                2,797     2,847      11,284    11,369
   Net interest expense        12,887    12,120      51,093    47,206
   Provision for income taxes   1,680       914       3,127     1,500
   EBITDA                     $27,331   $23,892     $80,756   $62,457

(a) "EBITDA" represents net income (loss) before net interest expense,
provision for income taxes and depreciation and amortization.
Consistent with Item 10(e) of Regulation S-K, our EBITDA has not been
adjusted to exclude any other non-cash charges (credits) or
liabilities, such as LIFO adjustments of $13,843, $(2,702), $14,343
and $(3,354) and accruals for postretirement benefits aggregating $56
and $120, $619 and $498 for the three months and fiscal year ended
March 31, 2004 and March 31, 2003, respectively. In addition, our
EBITDA for the twelve-months ended March 31, 2003 has not been
adjusted for a loss of $12,278 related to early retirement of debt. We
believe that EBITDA is commonly used as a measure of performance for
companies in our industry and is frequently used by analysts,
investors, lenders and other interested parties to evaluate a
company's financial performance and its ability to incur and service
debt. Our EBITDA is used by management as a performance measure to
assess our financial results in connection with determining incentive
compensation, and is also used by the independent appraisal firm in
connection with its annual valuation of our equity. While providing
useful information, our EBITDA should not be considered in isolation
or as a substitute for consolidated statement of operations and cash
flows data prepared in accordance with accounting principles generally
accepted in the United States, and should not be construed as an
indication of a company's operating performance or as a measure of
liquidity.



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

                                        March 31, 2004  March 31, 2003
Balance Sheet Data:
Cash and cash equivalents                      $15,528        $20,030
Accounts receivable, net                       133,092         97,292
Inventory                                      225,248        213,590
Net property, plant and equipment              112,190        113,037
Total assets                                   536,480        490,741
Accounts payable                               162,648        119,815
Accrued liabilities                             57,919         45,514
Revolving credit facility                       51,677         72,007
Other long-term debt (including current
 portion)                                      258,061        258,530
Total stockholder's deficit                    (37,359)       (48,016)