Metals USA Reports Record Earnings for the Fourth Quarter and Full Year 2004

Business Wire, Feb 22, 2005

HOUSTON -- Metals USA Inc. (Nasdaq:MUSA), a leader in the metals processing and distribution industry, today announced record results for the fourth quarter and full year ended Dec. 31, 2004. Net income for the fourth quarter of 2004 was $20.5 million, or $0.99 per diluted share, compared to $2.6 million, or $0.13 per diluted share, for the fourth quarter of 2003. Annual net income for 2004 was $104.5 million, or $5.05 per diluted share, compared to $7.5 million, or $0.37 per diluted share, in 2003.

Net sales for the fourth quarter of 2004 were $394.4 million, compared to $249.5 million reported for the same quarter in 2003. Operating income for the fourth quarter of 2004 was $32.9 million, compared to operating income of $4.0 million reported in the fourth quarter of 2003.

Sales for the year ended Dec. 31, 2004 surpassed $1.5 billion, compared to sales of $963.2 million reported for 2003. Operating income for the 2004 full year was $173.7 million, compared to $16.4 million for 2003.

C. Lourenco Goncalves, president and CEO stated, "In many ways, 2004 has been a unique year for the metals business. Metal prices increased to all time highs during 2004, as tight supply concerns were the dominant issue." Mr. Goncalves continued, "The U.S. economy is healthy, and we expect the current level of metal consumption to continue. As far as pricing is concerned, recent announcements of increases in raw material prices for integrated mills in Asia and in Europe have the potential to push worldwide steel prices upward. However, it is difficult to

say at this time just when and how much further domestic prices will be affected." Mr. Goncalves also stated, "Regardless of what ultimately happens to metal prices, we believe in the strength of our business, and are prepared to deliver good results."

Metals USA has scheduled a conference call for Tuesday, Feb. 22, 2005 at 11:00 a.m. Eastern Standard Time. A replay of the call will be available approximately two hours after the live broadcast ends and will be available through March 31, 2005. To access the replay, dial 888-203-1112 in the U.S. and 719-457-0820 for international service and enter the pass code 5925847.

Investors, analysts and the general public are invited to listen to the conference call over the Internet by visiting the company's Web site at www.metalsusa.com. To listen to the live call online, please visit the Web site at least 15 minutes early to register, download and install any necessary audio software. For those who cannot listen to the live webcast, an archive will be available at the Company's Web site shortly after the call.

Metals USA Inc. is a leading metals processor and distributor in North America. Metals USA provides a wide range of products and services in the heavy carbon steel, flat-rolled steel, specialty metals, and building products markets. For more information, visit the company's Web site at www.metalsusa.com.

The information contained in this release is limited and the Company encourages interested parties to read the Company's Form 10-K and 10-Q's which are on file with the Securities and Exchange Commission for more complete information. Additionally, copies of the Company's filings with the Securities and Exchange Commission together with press releases and other information investors may find of benefit can be found at the Company's Web site at www.metalsusa.com.

This press release contains certain forward-looking statements which involve known and unknown risks, uncertainties or other factors not under the Company's control which may cause the actual results, performance or achievement of the Company to be materially different from the results, performance or other expectations implied by these forward-looking statements. These factors include, but are not limited to, those disclosed in the Company's periodic filings with the Securities and Exchange Commission.