Steel Dynamics to Pay $500M for Largest Metal Recycler in Southeast

Steel Dynamics, Inc.(Nasdaq: STLD) announced that its subsidiary OmniSource Corporation will acquire Recycle South, one of the largest regional scrap metalrecycling companies in the nation.

Recycle South was formed in August 2007by the merger of Carolinas Recycling Group and Atlantic Scrap andProcessing. The company is headquartered in Spartanburg, South Carolina.

OmniSource, which already owns 25% of Recycle South, will acquire the remaining equity interests in atransaction valued at approximately $500 million. Current Recycle Southequity owners will receive 3,938,000 shares of Steel Dynamics common stock,valued at approximately $138 million and $232 million in cash.

Theaggregate transaction value includes the assumption of certain liabilities,including net debt, which are expected to total approximately $135 millionat closing.

Completion of the transaction is subject only to regulatoryapproval, and is expected to close before the end of the second quarter of2008.

Recycle South employs 600 people in 19 locations throughout NorthCarolina, South Carolina, and Georgia. From September of 2007 to March of 2008, the company generatedrevenues of approximately $670 million from the processing of 1.4 milliontons of ferrous scrap and 150 million pounds of nonferrous scrap.

Thecompany will operate as a division of OmniSource Corporation, and will becalled OmniSource Southeast.

About Steel Dynamics, Inc.

Steel Dynamics, Inc. is the fifth largest producer of carbon steel inthe U.S. and is one of the nation’s largest metals recyclers. Producingsteel from recycled steel scrap in five electric-arc-furnace mini-mills,the company shipped 5.6 million tons of steel in 2007 and had consolidatedrevenues of $4.4 billion. Steel products include flat-rolled steel,wide-flange beams, rails, engineered bars, merchant bars, and specialtyshapes. Steel Dynamics also produces fabricated steel building products. InOctober 2007 Steel Dynamics acquired OmniSource Corporation, which at thetime was the largest privately owned U.S. scrap metals processor.