Steel Technologies Inc. Discusses Expectations for Second Quarter Ending March 31, 2003

Business Wire, March 26, 2003

Business Editors

LOUISVILLE, Ky.--(BUSINESS WIRE)--March 26, 2003

Steel Technologies Inc. (Nasdaq/NM:STTX) today announced that it expects results for the second fiscal quarter ended March 31, 2003, to be lower than originally expected. The Company has reduced its expectations for the quarter to reflect the impact of narrower margins and softer shipments. As a result, the Company expects to report earnings for the quarter ended March 31, 2003, of approximately $0.18 per share on a fully diluted basis compared with $0.29 per share on a fully diluted basis for the same period in 2002. Steel Technologies plans to release full results for the second fiscal quarter on April 21, 2003.

"We expect sales for the quarter to reach approximately $130 million, or be about 13% above last year's second quarter sales," said Bradford T. Ray, Chairman and Chief Executive Officer. "However, volume shipped will come in about 3% below year-earlier levels, and margins have contracted due to high-priced inventory secured during the tight supply environment of late 2002. We reacted quickly and have reduced our inventory levels significantly during the quarter, and we continue to improve our operating performance in a tough economic environment. Because of this, and since raw material prices have stabilized, we expect improvement in margins during our third quarter.

"Looking ahead, the underlying strength and market positioning of our Company has never been stronger," added Mr. Ray. "Our recent asset purchase of Cold Metal Products' cold rolled strip facility in Ottawa, Ohio, will soon begin to contribute to our results. Our operating improvements should not be overshadowed by the short-term raw material swings that are affecting our margins. We are extremely well positioned to capitalize on the changing market dynamics and look to expand market share and improve financial performance as the economy recovers."

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 16 production facilities located throughout the United States and Mexico, including three at Mi-Tech Steel, Inc. For the fiscal year ended September 30, 2002, Steel Technologies reported sales of $475.4 million and net income of $15.8 million or $1.60 per diluted share. More information about the Company may be found on the World Wide Web at www.steeltechnologies.com.

Statements contained in this release, which are not historical facts, are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties (contained in the Company's SEC filings), which could cause actual results to differ materially from those projected. SEC filings may be obtained from the SEC or by contacting the Company.