EMJ Reports Record First Quarter Results.

BREA, Calif.--(BUSINESS WIRE)--July 17, 1998--The Earle M. Jorgensen Co. ("EMJ") Friday reported record earnings for the company's first fiscal quarter ended June 30, 1998.

First fiscal quarter revenues were $250.6 million compared to $259.9 million reported in the previous year. The fiscal 1998 period included revenues of $7.6 million from foreign operations disposed of during fiscal 1998.

Operating income for the first fiscal quarter increased 17% to a record $18.9 million, compared to $16.1 million reported in prior year.

First fiscal quarter net income increased 48% to a record $8.3 million, compared to $5.6 million reported in the previous year.

Sandy Nelson, EMJ's president and chief executive officer, stated, "The company's efforts to reengineer branch processes is resulting in significant cost savings and improved gross margins which is allowing the company to achieve improved operating profits."

EMJ, with headquarters in Brea, is one of the largest independently owned distributors of metal in the United States with 23 domestic service centers, two Canadian service centers, and five processing centers.

EMJ inventories more than 40,000 sizes, shapes and grades of bar, sheet, plate, structurals, expanded metals, tubing and pipe in carbon, alloy steel, stainless and specialty aluminum and steel. -0-

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


First Quarter Ended June:                          1998           1997

Revenues                                       $250,600       $259,900
Operating income                                 18,900         16,100
Income before taxes                               8,900          6,100
Net income                                        8,300          5,600

CONTACT: EMJ, Brea

Charles Gallopo, 714/579-8823

Fax: [phone]