Reliance Steel & Aluminum Co. Declares 3:2 Stock Split and 1999 3Q Dividend Payment; 15% Dividend Increase After Stock Split

Business Wire, July 30, 1999

LOS ANGELES--(BUSINESS WIRE)--July 30, 1999--

Reliance Steel & Aluminum Co. (NYSE:RS) announced today that its Board of Directors has declared a three-for-two stock split, in the form of a 50% stock dividend, and a 15% increase in the dividend rate.

The common stock split will be effected on September 24, 1999, with new stock certificates issued to shareholders of record September 2, 1999. Shareholders of record will be entitled to one additional share of common stock for every two shares of the Company's common stock held on that date. Cash will be paid in lieu of fractional shares.

Beginning with the 1999 fourth quarter dividend payment, the Company's regular quarterly cash dividend will be adjusted to $.05 per share of common stock, representing a 15% increase over the current rate, after giving effect to the three-for-two stock split. Reliance's total common shares outstanding will increase from approximately 18.6 million to 27.9 million shares.

David H. Hannah, president and chief executive officer, said, "We are pleased to announce our second three-for-two stock split since our initial public offering in 1994. Our revenues and earnings have increased at compound annual growth rates of 30% and 39%, respectively, since 1993. We are committed to increasing shareholder value and believe that this stock split and related dividend rate increase will create a more favorable environment in terms of the trading volume, liquidity and marketability of our stock that should prove attractive to investors."

Reliance's Board of Directors also declared its regular third quarter cash dividend of $.065 per share of common stock, payable on September 1, 1999, to shareholders of record August 16, 1999. The Company recently increased its regular quarterly cash dividend 8% to $.065 per share. Reliance reported its best-ever financial results on July 22, 1999. Net income increased to $13.7 million, or $.73 per diluted share, up 11%, on sales of $384.7 million, up 18%, for the second quarter ended June 30, 1999.

"We are proud of our tradition of 39 years of consecutive dividend payments and our ability to continue this dividend program for our shareholders as a result of our record breaking earnings for the 1999 second quarter," added Hannah.

Reliance Steel & Aluminum Co., with headquarters in Los Angeles, is one of the largest metals service center companies in the United States. Through a network of 69 processing and distribution centers (including American Steel, L.L.C.) in 22 states and France, the Company provides value-added metals processing services and distributes a full line of over 70,000 metal products. These products include galvanized, hot-rolled and cold-finished steel; stainless steel; aluminum; brass; copper and alloy steel to more than 50,000 customers in various industries. Reliance Steel & Aluminum Co.'s news releases and additional information are available on the Company's Web site at: www.rsac.com.