Steel Technologies Announces Joint Venture Transaction With Ferragon

    LOUISVILLE, Ky.--Sept. 19, 2001--Steel Technologies Inc. today announced that it has completed its previously announced transaction with Ferragon Corporation, a Minority Business Enterprise of Cleveland, Ohio, to form a joint venture between the two companies involving the operations of Ferrolux Metals Co. ("Ferrolux Metals") of Wayne, Michigan. As a result of the transaction, Steel Technologies now owns 49% of Ferrolux Metals and Ferragon Corporation owns a 51% interest. Terms of the transaction were not disclosed.
    Ferrolux Metals currently processes 175,000 tons of steel annually, specializing in exposed automotive products. Ferragon Corporation will retain working control of Ferrolux Metals. Ferragon Corporation operates two other facilities -- one in Ohio and another in Mississippi, and in total the three facilities process approximately 945,000 tons of steel annually for a variety of customers in the Midwest.
    "Ferrolux Metals is a rapidly growing company and a highly regarded precision steel processor with a strong operating team," said Bradford T. Ray, Vice Chairman and Chief Executive Officer of Steel Technologies. "This partnership with Ferrolux Metals will allow Steel Technologies to continue to expand the resources that it brings to the market. The combined strength of this partnership has been well received by our customers. The current focus for Ferrolux Metals is processing steel for strategic customers in the Detroit area. Our plan is to inject new capital to expand Ferrolux Metals' capabilities and grow its market presence."
    "We are pleased to be associated with one of the premier steel processor/converters in North America," said Eduardo Gonzalez, President and Chief Executive Officer of Ferragon Corporation. "Our strategy with this partnership is well defined, and we intend to bring broader capabilities and solutions to the marketplace."
    Steel Technologies processes flat-rolled steel to specified thickness, width, temper, finish and shape requirements for automotive, appliance, lawn and garden, agricultural, recreational, office equipment and railcar industries among others. The Company operates 15 production facilities located throughout the United States and Mexico, including two at Mi-Tech Steel, Inc. For the most recent fiscal year ended September 30, 2000, Steel Technologies reported sales of $461 million and net income of $10.2 million or $0.94 per diluted share. More information about the Company may be found on the World Wide Web at www.steeltechnologies.com.