Schnitzer Steel's Board Elects Former Bechtel Executive John D. Carter as CEO, President, and Director, and Director Kenneth M. Novack as Chairman

PORTLAND, Ore.--May 19, 2005--The Board of Directors of Schnitzer Steel Industries, Inc. said it today elected John D. Carter as Chief Executive Officer and President, and Kenneth M. Novack as Chairman, replacing Robert W. Philip, who stepped down from these positions, effective immediately. The Board also elected Mr. Carter to the Board of Directors.

"John Carter's in-depth experience managing global businesses, and his experience as an attorney with responsibility for legal compliance, makes him perfectly equipped for this role," said Mr. Novack. "In John, we've found a capable leader with the right skills to meet the Board's objectives."

"The Board has charged executive leadership with capitalizing on the many opportunities to grow Schnitzer Steel's successful operations and build shareholder value in the years to come, all within a culture of ethical and legal compliance," said Mr. Carter. "I'm honored to be a part of the team."

Mr. Carter, 59, an Oregon native, is a Director of Northwest Natural Gas Company, Flir Systems, and Kuni Automotive in the U.S. In the United Kingdom, he serves as a Director of London & Continental Railways and Cross London Rail Links. He served until 2002 as Executive Vice President and Director of Bechtel Group, Inc. His duties included providing senior executive oversight of Bechtel's telecommunications, industrial, and water businesses. While serving as President of Bechtel's Europe, Africa, Middle East, Southwest Asia region, he played a lead role in the organizational and financial restructuring of the Channel Tunnel Rail Link in the United Kingdom, in addition to managing the execution of other power, petroleum and civil projects. An attorney, he also served as General Counsel of the Bechtel global engineering and construction organization.

Mr. Novack, a Director since 1991, is Chief Executive Officer of Schnitzer Investment Corp. He also served as Chairman of Lasco Shipping Co.

The Board, through its Audit Committee, is continuing its independent investigation of alleged practices of paying commissions to purchasing managers of the Company's customers in Asia in connection with export sales of recycled ferrous metals. This investigation, disclosed by the Company in November 2004, is being conducted through the Audit Committee by an outside law firm. The Company has notified the U.S. Department of Justice and the Securities and Exchange Commission of the investigation; has instructed its outside law firm to provide those agencies with the information obtained as a result of the investigation; and is cooperating fully with those agencies.

About Schnitzer Steel Industries, Inc.

Schnitzer Steel Industries, Inc. is one of the nation's largest recyclers of ferrous metals, a leading self-service used auto parts retailer with 30 locations in the U.S. and Canada, and manufacturer of finished steel products. The Company, with its joint venture partners, processes approximately 5.2 million tons of recycled ferrous metals per year as well as brokers nearly 3.0 million tons through various brokerage arrangements. In addition, the Company's steel mill has an annual production capacity of approximately 700,000 tons of finished steel products. The Company and its joint venture partners operate primarily along the West Coast and Northeastern seaboard of the United States.

Schnitzer's common stock is traded on the NASDAQ Stock Market System under the symbol "SCHN."

For more information about Schnitzer Steel Industries, Inc. go to www.schnitzersteel.com