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INSTEEL INDUSTRIES' SCRAP BROKERAGE ACTIVITIES TO BE ASSUMED BY GEORGETOWN STEEL; NO MATERIAL IMPACT ON INSTEEL EARNINGS ANTICIPATED

 MOUNT AIRY, N.C., March 5 /PRNewswire/ -- Insteel Industries, Inc. (NYSE: III) and Georgetown Steel Corporation of Georgetown, S.C., today announced that effective Aug. 1 Georgetown Steel Corporation will assume the steel scrap acquisition service now being performed for Georgetown Steel Corporation by Insteel Industries' Intersteel Corporation subsidiary.
 Commenting on termination of the agreement, Howard O. Woltz Jr., Insteel chairman, said, "It has become apparent that Georgetown Steel can now more cost-effectively acquire its steel scrap raw material internally than by using an outside broker. Therefore, these duties will be brought in house by Georgetown Steel following an orderly phaseout of Intersteel's Georgetown, S.C., office. We fully support Georgetown Steel's efforts to reduce costs.
 "Although scrap brokerage has usually made a sizable contribution to Insteel's revenues, profit margins have been very thin. The elimination of this high revenue, low margin segment of our business will allow more accurate presentation of operating margins in our core lines of business. Last year, this business accounted for 13 percent of Insteel revenues but less than 5 percent of net earnings. We expect the discontinuance to have no material impact on earnings this year."
 Insteel Industries, Inc., one of the nation's largest producers of wire and wire products, produces welded wire reinforcement, galvanized fencing products, specialty wire fabrics, industrial wire, nails, and the Insteel 3-D(TM) panels.
 -0- 3/5/93
 /CONTACT: Howard O. Woltz Jr., chairman of the board of Insteel Industries, 919-786-2141/
 (III)


CO: Insteel Industries, Inc. ST: North Carolina IN: MNG SU:

LR-CK -- NY019 -- 3410 03/05/93 11:25 EST
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Publication:PR Newswire
Date:Mar 5, 1993
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