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2. 2 The Schnitzer Steel Team Greg Witherspoon, CPA – CFO CFO since August 2005 Prior Professional Experience: Managing Director at Plan Bravo Partners, LLC; 1998-2005 Former CFO of Aames Financial Corp. John D. Carter – President and CEO CEO since May 2005 Prior Professional Experience: Various positions, including President at Bechtel Group; 1982-2002 Rob Stone –VP, Treasurer (Chief Investor Relations Officer) Rob Stone – VP, Treasurer (Chief Investor Relations Officer) Prior Professional Experience: CFO / SVP at Mesa Air Group; 2000 – 2004 Various positions, The Boeing Company; 1979 – 2000 Tamara Lundgren – EVP, Strategy and Investments: President shared services Prior Professional Experience: Managing Director, JP Morgan Chase; 2001-2005 Various Positions, including Managing Director, Deutsche Bank AG; 1996-2001 Management Positions, Goldman Sachs; Partner, Hogan & Hartson, LLP

3. 3 Schnitzer Steel Business Overview Three Important Businesses Forming One Integral Company Metals Recycling Steel Manufacturing Auto Parts One of the country’s largest metals recyclers One of the country’s largest metals recyclers Processes 3.5mm tons of ferrous metals annually Processes 3.5mm tons of ferrous metals annually Additional 1.0mm tons of ferrous metals in global trading business Additional 1.0mm tons of ferrous metals in global trading business 32 self-service stores 32 self-service stores 18 full-service locations 18 full-service locations ~250,000 cars processed per year ~250,000 cars processed per year ~4mm of annual retail admissions ~4mm of annual retail admissions 32% sales growth from FY04- FY05 32% sales growth from FY04- FY05 700-800k tons annual capacity 700-800k tons annual capacity Record performance for last two consecutive years Record performance for last two consecutive years Favorable West Coast steel market conditions Favorable West Coast steel market conditions Vertically integrated metals recycler with 81 operations in 22 states and Western Canada Vertically integrated metals recycler with 81 operations in 22 states and Western Canada Over 3,000 employees Over 3,000 employees Source of Supply Source of Scrap Supply Growth Capital

4. 4 Investor Highlights Solid industry fundamentals underpinning business outlook Solid industry fundamentals underpinning business outlook Value-enhancing acquisitions within fragmented markets through a disciplined approach Value-enhancing acquisitions within fragmented markets through a disciplined approach Leading positions in coastal ports offer both a competitive advantage and barrier to entry for metals recycling Leading positions in coastal ports offer both a competitive advantage and barrier to entry for metals recycling Self-service, high margin Auto Parts Business provides growth opportunities and smoothes cyclicality of scrap operations Self-service, high margin Auto Parts Business provides growth opportunities and smoothes cyclicality of scrap operations Significant investments in infrastructure and equipment for increased efficiency and attractive returns on investment Significant investments in infrastructure and equipment for increased efficiency and attractive returns on investment Technologically advanced mini-mill taking advantage of robust market conditions on West Coast Technologically advanced mini-mill taking advantage of robust market conditions on West Coast Strong, experienced management team recently augmented to prepare for further growth Strong, experienced management team recently augmented to prepare for further growth

5. 5 Growth Drivers for Metals Recycling Business Strong Industry Fundamentals Source: 2005 World Steel Dynamics, IISI, and Wall Street Research CAGR = 18.5% Leads to scrap demand growth Forecast Demand is robust, …but supply remains tight Chinese steel consumption biggest contributor to demand Forecasted increase in steel production Total Steel and Electric Arc Furnace (EAF) ProductionWorldwide Global Scrap Demand China Import DemandRequired Scrap Recovery Rates Million Metric Tons

6. 6 Value-Enhancing Acquisitions Recent activity in Metals Recycling Business has significantly expanded the company’s footprint Recent activity in Metals Recycling Business has significantly expanded the company’s footprint  Strategic ports acquired in Hugo Neu JV separation have provided bi-coastal export capabilities  Regional Recycling acquisition has increased scrap supply area, added 0.5mm tons of processing volume and 10 additional locations in manufacturing-rich Southeastern Region Future Opportunities: Future Opportunities:  Fragmented markets may provide opportunities for further disciplined expansion Integration process: Integration process:  Company’s focus is on rapid integration of new assets to maximize long-term value of acquisitions

7. 7 Growth Drivers for Metals Recycling Business Strategic Deep Water Ports Locations Export Facility Ferrous Recycling Facility

8. 8 Auto Parts Industry Drivers Underpin Growth Source: 2005 AAIA Factbook (* - 2005 Estimate) Aging US Vehicle Population Annual Miles Driven (in Trillions) Healthy growth projected for full service and self-service automotive industry segments Healthy growth projected for full service and self-service automotive industry segments Older vehicles are still on the road, driving more miles, resulting in higher demand for spare parts to service these older vehicles Older vehicles are still on the road, driving more miles, resulting in higher demand for spare parts to service these older vehicles

9. 9 Schnitzer’s Auto Parts Market Position Schnitzer is well-positioned within two high growth segments of the Used Auto Parts Industry High operating margins are achievable while simultaneously delivering compelling value to customers Full-Service $4-6 billion Self-Service $1-2 billion Greenleaf Pick N Pull Taillight Replacement Cost Segment Sales Growth Rates (a) Market Size (a) Source: 2005 AAIA Factbook (* - 2005 Estimate)

10. 10 Auto Parts Growth and Profitability Highlights Ability to extract value from acquisitions through application of technology and disciplined business practices Ability to extract value from acquisitions through application of technology and disciplined business practices High velocity vehicle life cycle as well as diverse and varied sources of revenue allow for high profitability High velocity vehicle life cycle as well as diverse and varied sources of revenue allow for high profitability Wholesale ‘core’ sales & crush auto bodies Admission revenues & parts sales Self-Service Revenues

11. 11 Infrastructure Investments New mega shredders, induction sorting systems (non-ferrous) and overall upgrades of plant infrastructure increase capacity, lower cost and deliver higher quality product New mega shredders, induction sorting systems (non-ferrous) and overall upgrades of plant infrastructure increase capacity, lower cost and deliver higher quality product Company-wide IT upgrade: standardized ERP system Company-wide IT upgrade: standardized ERP system Improved systems for all auto parts locations for enhanced retail environment, merchandising and purchasing of car bodies Improved systems for all auto parts locations for enhanced retail environment, merchandising and purchasing of car bodies New furnace and expanded melt shop at steel manufacturing facility increases capacity and improves productivity and ability to respond to robust market conditions New furnace and expanded melt shop at steel manufacturing facility increases capacity and improves productivity and ability to respond to robust market conditions

12. 12 Steel Manufacturing Business Highlights Record financial performance for last 2 years Record financial performance for last 2 years West Coast markets have provided robust demand for steel products West Coast markets have provided robust demand for steel products Reduction in West Coast steel making capacity has improved supply fundamentals Reduction in West Coast steel making capacity has improved supply fundamentals Reputation for quality products and superior customer service Reputation for quality products and superior customer service Diverse, high quality product mix Diverse, high quality product mix Broad customer base Broad customer base Secure long-term supply of scrap Secure long-term supply of scrap

13. 13 Overall Management Objectives Industry leader in creating shareholder value Industry leader in creating shareholder value  Metals Recycling: product differentiation  Auto Parts: managing the automobile lifecycle  Steel Manufacturing: productivity and customer satisfaction Improve productivity Improve productivity  Integration of acquisitions  Investment in infrastructure  Technological enhancements Seek growth Seek growth  Additional value-creating acquisitions  New technologies

14. 14 II. Financial Performance Highlights & Trends

15. 15 Schnitzer Steel’s Strong Financial Growth Fiscal Year End 2001-2005 Revenue CAGR = 27.5% Source: Public company filings Note: EBITDA defined as: as reported operating income plus depreciation and amortization. 2001-2005 EBITDA CAGR = 65.5%

16. 16 Schnitzer Steel’s Strong Financial Performance Metals Recycling Business Metals Recycling Business  Integration of recent acquisitions and significant capital improvement projects well under way Auto Parts Business Auto Parts Business  GreenLeaf acquisition increased footprint by more than 60%  Integration / rationalization of full-service business on schedule  Steady improvement in self-service retail sales per transaction and wholesale “core” sales per car purchased Steel Manufacturing Business Steel Manufacturing Business  2 nd consecutive quarter of record operating earnings  Projects under way to increase capacity and provide greater flexibility to meet customer demand Source: Public company filings Note: 1Q2006 Net Income excludes gains from disposition of assets and charges related to SEC investigation.

17. 17 Schnitzer Steel’s Strengthening Balance Sheet Strong Cash Flow Strong Cash Flow Reinvestment in Capital Improvements and Acquisitions Reinvestment in Capital Improvements and Acquisitions Source: Public company filings Note: Net debt includes minority interest.

18. 18 Recap of Investor Highlights Solid industry fundamentals underpinning business outlook Solid industry fundamentals underpinning business outlook Value-enhancing acquisitions within fragmented markets through a disciplined approach Value-enhancing acquisitions within fragmented markets through a disciplined approach Leading positions in coastal ports offer both a competitive advantage and barrier to entry for metals recycling Leading positions in coastal ports offer both a competitive advantage and barrier to entry for metals recycling Self-service, high margin Auto Parts Business provides growth opportunities and smoothes cyclicality of scrap operations Self-service, high margin Auto Parts Business provides growth opportunities and smoothes cyclicality of scrap operations Significant investments in infrastructure and equipment for increased efficiency and attractive returns on investment Significant investments in infrastructure and equipment for increased efficiency and attractive returns on investment Technologically advanced mini-mill taking advantage of robust market conditions on West Coast Technologically advanced mini-mill taking advantage of robust market conditions on West Coast Strong, experienced management team recently augmented to prepare for further growth Strong, experienced management team recently augmented to prepare for further growth

19. 19 Appendix: Detailed Business Segment Overview

20. 20 Metals Recycling Business 3.5 million tons of ferrous scrap processed and sold annually 3.5 million tons of ferrous scrap processed and sold annually 1.0 million tons sold annually by Global Trading Business through supplies obtained in Russian and Baltic Sea region 1.0 million tons sold annually by Global Trading Business through supplies obtained in Russian and Baltic Sea region One of countries largest exporters of ferrous scrap. Six deep water port facilities provide competitive advantage and barrier to entry One of countries largest exporters of ferrous scrap. Six deep water port facilities provide competitive advantage and barrier to entry Bi-coastal operations in 28 cities and 11 states Bi-coastal operations in 28 cities and 11 states Strong industry fundamentals have resulted in a significant increase in average prices compared to prior cycles Strong industry fundamentals have resulted in a significant increase in average prices compared to prior cycles Positive outlook Positive outlook

21. 21 Used Auto Parts Business 32 stores 32 stores 220,000+ cars processed per year 220,000+ cars processed per year ~4 million annual retail customers ~4 million annual retail customers $100+ million - FY 2005 Revenue $100+ million - FY 2005 Revenue attractive operating margins attractive operating margins Complementary to metals recycling business—source of scrap supply Complementary to metals recycling business—source of scrap supply Full-service business Full-service business Acquired in Oct 2005 Acquired in Oct 2005 18 locations 18 locations Provides great locations and access to larger full-service sector of used parts market Provides great locations and access to larger full-service sector of used parts market Self-service business

22. 22 Steel Manufacturing Business The steel manufacturing business serves as a source of demand for the Company’s metals recycling business, contributing to vertical integration model The steel manufacturing business serves as a source of demand for the Company’s metals recycling business, contributing to vertical integration model 700-800k tons annual capacity for rebar, wire rod and other long steel products 700-800k tons annual capacity for rebar, wire rod and other long steel products Near-term business outlook remains bright Near-term business outlook remains bright  Strong West Coast demand for steel products  Recent consolidation in West Coast capacity has improved supply/demand balance New state of the art Electric Arc Furnace has increased melt shop capacity and improved productivity New state of the art Electric Arc Furnace has increased melt shop capacity and improved productivity Planned improvements in rolling mill will improve output of finished products, provide greater flexibility to meet customer demand and further improve productivity Planned improvements in rolling mill will improve output of finished products, provide greater flexibility to meet customer demand and further improve productivity