1. 2 The Schnitzer Steel Team Greg Witherspoon, CPA – CFO CFO since August 2005 Prior Professional Experience: Managing Director at Plan Bravo Partners,

1

2

The Schnitzer Steel TeamThe Schnitzer Steel Team

Greg Witherspoon, CPA – CFOGreg Witherspoon, CPA – CFO

CFO since August 2005CFO since August 2005

Prior Professional Experience: Prior Professional Experience: Managing Director at Plan Bravo Managing Director at Plan Bravo

Partners, LLC; 1998-2005Partners, LLC; 1998-2005

Former CFO of Aames Financial Corp.Former CFO of Aames Financial Corp.

John D. Carter – President and CEOJohn D. Carter – President and CEO

CEO since May 2005CEO since May 2005

Prior Professional Experience: Various Prior Professional Experience: Various positions, including President at positions, including President at

Bechtel Group; 1982-2002Bechtel Group; 1982-2002

Rob Stone Rob Stone –– VP, Treasurer (Chief Investor VP, Treasurer (Chief Investor Relations Officer)Relations Officer)

Prior Professional Experience: CFO / SVP Prior Professional Experience: CFO / SVP at Mesa Air Group; 2000 – 2004at Mesa Air Group; 2000 – 2004

Various positions, The Boeing Company; Various positions, The Boeing Company; 1979 – 20001979 – 2000

Tamara Lundgren Tamara Lundgren – – EVP, EVP, Strategy and Strategy and Investments:Investments: President shared President shared

servicesservices

Prior Professional Experience: Prior Professional Experience: Managing Director, JP Morgan Chase; Managing Director, JP Morgan Chase;

2001-20052001-2005

Various Positions, including Managing Various Positions, including Managing Director, Deutsche Bank AG; 1996-2001Director, Deutsche Bank AG; 1996-2001

Management Positions, Goldman Management Positions, Goldman Sachs; Partner, Hogan & Hartson, LLPSachs; Partner, Hogan & Hartson, LLP

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Schnitzer Steel Business OverviewSchnitzer Steel Business Overview

Three Important Businesses Forming One Integral Company

Metals RecyclingMetals Recycling

Steel Steel ManufacturingManufacturing

Auto PartsAuto Parts

One of the country’s largest metals One of the country’s largest metals recyclersrecyclers

Processes 3.5mm tons of ferrous Processes 3.5mm tons of ferrous metals annuallymetals annually

Additional 1.0mm tons of ferrous Additional 1.0mm tons of ferrous metals in global trading businessmetals in global trading business

32 self-service stores32 self-service stores

18 full-service locations18 full-service locations

~250,000 cars processed per year~250,000 cars processed per year

~4mm of annual retail admissions~4mm of annual retail admissions

32% sales growth from FY04-FY0532% sales growth from FY04-FY05

700-800k tons annual capacity700-800k tons annual capacity

Record performance for last two Record performance for last two consecutive yearsconsecutive years

Favorable West Coast steel market Favorable West Coast steel market conditionsconditions

Vertically integrated Vertically integrated metals recycler with metals recycler with 81 operations in 22 81 operations in 22 states and Western states and Western CanadaCanada

Over 3,000 employeesOver 3,000 employees

Sou

rce

of

Sup

ply

Source of

Scrap S

upply

Growth Capital

4

Investor HighlightsInvestor Highlights

Solid industry fundamentals underpinning business outlook Solid industry fundamentals underpinning business outlook

Value-enhancing acquisitions within fragmented markets through a Value-enhancing acquisitions within fragmented markets through a disciplined approach disciplined approach

Leading positions in coastal ports offer both a competitive advantage Leading positions in coastal ports offer both a competitive advantage and barrier to entry for metals recycling and barrier to entry for metals recycling

Self-service, high margin Auto Parts Business provides growth Self-service, high margin Auto Parts Business provides growth opportunities and smoothes cyclicality of scrap operationsopportunities and smoothes cyclicality of scrap operations

Significant investments in infrastructure and equipment for increased Significant investments in infrastructure and equipment for increased efficiency and attractive returns on investmentefficiency and attractive returns on investment

Technologically advanced mini-mill taking advantage of robust Technologically advanced mini-mill taking advantage of robust market conditions on West Coastmarket conditions on West Coast

Strong, experienced management team recently augmented to Strong, experienced management team recently augmented to prepare for further growthprepare for further growth

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Growth Drivers for Metals Recycling BusinessGrowth Drivers for Metals Recycling BusinessStrong Industry FundamentalsStrong Industry Fundamentals

Source: 2005 World Steel Dynamics, IISI, and Wall Street ResearchSource: 2005 World Steel Dynamics, IISI, and Wall Street Research

CAGR = 18.5%

5

108

11 1014

1820 21

23

0

5

10

15

20

25

'00 '01 '02 '03 '04 '05E '06E '07E '08E '09E

Leads to scrap demand growthLeads to scrap demand growth

0%

20%

40%

60%

80%

100%

1930 1940 1950 1960 1970 1980 1990 2000 2010

Scr

ap R

eco

very

Forecast

Demand is robust, Demand is robust, ……but supply remains tightbut supply remains tight

Chinese steel consumption biggestChinese steel consumption biggestcontributor to demandcontributor to demand

0

250

500

750

1,000

1,250

1,500

1995 2000 2003 2005 2010

Ton

s (m

m)

Total Steel Production EAF Production

Forecasted increase in steel productionForecasted increase in steel production

0

50

100

150

200

250

300

350

400

1975 1979 1991 1995 1999 2003 2007

Mill

ion

s o

f T

on

s

Total Steel and Electric Arc Furnace (EAF) Production Worldwide Global Scrap Demand

China Import Demand Required Scrap Recovery Rates

Mill

ion

Met

ric T

ons

6

Value-Enhancing AcquisitionsValue-Enhancing Acquisitions

Recent activity in Metals Recycling Business has significantly Recent activity in Metals Recycling Business has significantly expanded the company’s footprintexpanded the company’s footprint

Strategic ports acquired in Hugo Neu JV separation have provided Strategic ports acquired in Hugo Neu JV separation have provided bi-coastal export capabilitiesbi-coastal export capabilities

Regional Recycling acquisition has increased scrap supply area, Regional Recycling acquisition has increased scrap supply area, added 0.5mm tons of processing volume and 10 additional locations added 0.5mm tons of processing volume and 10 additional locations in manufacturing-rich Southeastern Regionin manufacturing-rich Southeastern Region

Future Opportunities:Future Opportunities:

Fragmented markets may provide opportunities for further Fragmented markets may provide opportunities for further disciplined expansiondisciplined expansion

Integration process:Integration process:

Company’s focus is on rapid integration of new assets to maximize Company’s focus is on rapid integration of new assets to maximize long-term value of acquisitionslong-term value of acquisitions

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Growth Drivers for Metals Recycling BusinessGrowth Drivers for Metals Recycling BusinessStrategic Deep Water Ports LocationsStrategic Deep Water Ports Locations

Export FacilityExport Facility Ferrous Recycling FacilityFerrous Recycling Facility

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Auto Parts Industry Drivers Underpin GrowthAuto Parts Industry Drivers Underpin Growth

Source: 2005 AAIA Factbook (* - 2005 Estimate)Source: 2005 AAIA Factbook (* - 2005 Estimate)

Aging US Vehicle PopulationAging US Vehicle Population Annual Miles Driven (in Trillions)Annual Miles Driven (in Trillions)

7.5

8.0

8.5

9.0

9.5

10.0

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

Ag

e

Cars Light Trucks

Healthy growth projected for full service and self-service Healthy growth projected for full service and self-service automotive industry segmentsautomotive industry segments

Older vehicles are still on the road, driving more miles, resulting in Older vehicles are still on the road, driving more miles, resulting in higher demand for spare parts to service these older vehicleshigher demand for spare parts to service these older vehicles

2.40

2.50

2.60

2.70

2.80

2.90

3.00

3.10

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

E

20

06

E

Mil

es

(T

rill

ion

s)

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Schnitzer’s Auto Parts Market PositionSchnitzer’s Auto Parts Market Position

Schnitzer is well-positioned within two high growth Schnitzer is well-positioned within two high growth segments of the Used Auto Parts Industrysegments of the Used Auto Parts Industry

4.00%

4.70%

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

Self Serve Full Serve

$191

$121

$20

$0

$50

$100

$150

$200

$250

OEM Aftermarket PNP

High operating margins are achievable High operating margins are achievable while simultaneously delivering compelling value to customerswhile simultaneously delivering compelling value to customers

$51$58

$65

$82 $79

23.126.822.0

15.510.8

$0

$30

$60

$90

2001 2002 2003 2004 TTM

US

$ in

Mill

ion

s

Revenues Operating Incom e

Full-Service$4-6 billion

Self-Service$1-2 billion

Greenleaf

Pick N Pull

Taillight Replacement Cost

Segment Sales Growth Rates (a)Market Size

(a) Source: 2005 AAIA Factbook (* - 2005 Estimate)(a) Source: 2005 AAIA Factbook (* - 2005 Estimate)

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Auto Parts Growth and Profitability HighlightsAuto Parts Growth and Profitability Highlights

Ability to extract value from acquisitions through application of Ability to extract value from acquisitions through application of technology and disciplined business practicestechnology and disciplined business practices

High velocity vehicle life cycle as well as diverse and varied High velocity vehicle life cycle as well as diverse and varied sources of revenue allow for high profitabilitysources of revenue allow for high profitability

Wholesale Sales45%

Retail Sales55%

Wholesale ‘core’ sales & crush auto bodies

Admission revenues & parts sales

Self-Service Revenues

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Infrastructure InvestmentsInfrastructure Investments

New mega shredders, induction sorting systems (non-ferrous) New mega shredders, induction sorting systems (non-ferrous) and overall upgrades of plant infrastructure increase capacity, and overall upgrades of plant infrastructure increase capacity, lower cost and deliver higher quality productlower cost and deliver higher quality product

Company-wide IT upgrade: standardized ERP systemCompany-wide IT upgrade: standardized ERP system

Improved systems for all auto parts locations for enhanced Improved systems for all auto parts locations for enhanced retail environment, merchandising and purchasing of car retail environment, merchandising and purchasing of car bodiesbodies

New furnace and expanded melt shop at steel manufacturing New furnace and expanded melt shop at steel manufacturing facility increases capacity and improves productivity and facility increases capacity and improves productivity and ability to respond to robust market conditionsability to respond to robust market conditions

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Steel Manufacturing Business HighlightsSteel Manufacturing Business Highlights

Record financial performance for last 2 yearsRecord financial performance for last 2 years

West Coast markets have provided robust demand for steel West Coast markets have provided robust demand for steel productsproducts

Reduction in West Coast steel making capacity has improved Reduction in West Coast steel making capacity has improved supply fundamentalssupply fundamentals

Reputation for quality products and superior customer serviceReputation for quality products and superior customer service

Diverse, high quality product mixDiverse, high quality product mix

Broad customer baseBroad customer base

Secure long-term supply of scrapSecure long-term supply of scrap

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Overall Management ObjectivesOverall Management Objectives

Industry leader in creating shareholder valueIndustry leader in creating shareholder value

Metals Recycling: product differentiationMetals Recycling: product differentiation

Auto Parts: managing the automobile lifecycleAuto Parts: managing the automobile lifecycle

Steel Manufacturing: productivity and customer satisfactionSteel Manufacturing: productivity and customer satisfaction

Improve productivityImprove productivity

Integration of acquisitionsIntegration of acquisitions

Investment in infrastructureInvestment in infrastructure

Technological enhancementsTechnological enhancements

Seek growthSeek growth

Additional value-creating acquisitionsAdditional value-creating acquisitions

New technologiesNew technologies

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II. Financial Performance II. Financial Performance Highlights & TrendsHighlights & Trends

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Schnitzer Steel’s Strong Financial GrowthSchnitzer Steel’s Strong Financial GrowthFiscal Year EndFiscal Year End

$33.8

$322.8

$28.5

$350.6

$88.2

$496.9

$187.3

$688.2

$253.5

$853.1

$0

$100

$200

$300

$400

$500

$600

$700

$800

$900

US

$ in

Mil

lio

ns

2001A 2002A 2003A 2004A 2005A

EBITDA Revenues

2001-2005 Revenue CAGR = 27.5%

Source: Public company filingsSource: Public company filingsNote: Note: EBITDA defined as: as reported operating income plus depreciation and amortization.EBITDA defined as: as reported operating income plus depreciation and amortization.

2001-2005 EBITDA CAGR = 65.5%

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Schnitzer Steel’s Strong Financial Schnitzer Steel’s Strong Financial PerformancePerformance

Metals Recycling BusinessMetals Recycling Business

Integration of recent acquisitions and significant capital improvement projects well under wayIntegration of recent acquisitions and significant capital improvement projects well under way

Auto Parts BusinessAuto Parts Business

GreenLeaf acquisition increased footprint by more than 60%GreenLeaf acquisition increased footprint by more than 60%

Integration / rationalization of full-service business on scheduleIntegration / rationalization of full-service business on schedule

Steady improvement in self-service retail sales per transaction and wholesale “core” sales per car purchasedSteady improvement in self-service retail sales per transaction and wholesale “core” sales per car purchased

Steel Manufacturing BusinessSteel Manufacturing Business

22ndnd consecutive quarter of record operating earnings consecutive quarter of record operating earnings

Projects under way to increase capacity and provide greater flexibility to meet customer demandProjects under way to increase capacity and provide greater flexibility to meet customer demand

$389

$19

$409

$21

$0

$50

$100

$150

$200

$250

$300

$350

$400

$450U

S$

in M

illi

on

s

1st Qtr 2006 2nd Qtr 2006

Revenues Net Income

Source: Public company filingsSource: Public company filingsNote: 1Q2006 Net Income excludes gains from disposition of assets and charges related to SEC investigation.Note: 1Q2006 Net Income excludes gains from disposition of assets and charges related to SEC investigation.

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Schnitzer Steel’s Strengthening Balance Schnitzer Steel’s Strengthening Balance SheetSheet

Strong Cash FlowStrong Cash Flow

Reinvestment in Capital Improvements and AcquisitionsReinvestment in Capital Improvements and Acquisitions

$92.1

$35.6

$89.2

$62.6

$(8.2)

$44.02.7x

1.2x1.0x

0.2x

0.0x0.3x

$(20.0)

$0.0

$20.0

$40.0

$60.0

$80.0

$100.0

2001A 2002A 2003A 2004A 2005A LTM 2Q2006

US

$ in

Mill

ion

s

(1.0)x

0.0x

1.0x

2.0x

3.0x

4.0x

5.0x

Net Debt Net Debt / EBITDA

Source: Public company filingsSource: Public company filingsNote: Note: Net debt includes minority interest.Net debt includes minority interest.

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Recap of Investor HighlightsRecap of Investor Highlights

Solid industry fundamentals underpinning business outlook Solid industry fundamentals underpinning business outlook

Value-enhancing acquisitions within fragmented markets through a Value-enhancing acquisitions within fragmented markets through a disciplined approach disciplined approach

Leading positions in coastal ports offer both a competitive advantage Leading positions in coastal ports offer both a competitive advantage and barrier to entry for metals recycling and barrier to entry for metals recycling

Self-service, high margin Auto Parts Business provides growth Self-service, high margin Auto Parts Business provides growth opportunities and smoothes cyclicality of scrap operationsopportunities and smoothes cyclicality of scrap operations

Significant investments in infrastructure and equipment for increased Significant investments in infrastructure and equipment for increased efficiency and attractive returns on investmentefficiency and attractive returns on investment

Technologically advanced mini-mill taking advantage of robust Technologically advanced mini-mill taking advantage of robust market conditions on West Coastmarket conditions on West Coast

Strong, experienced management team recently augmented to Strong, experienced management team recently augmented to prepare for further growthprepare for further growth

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Appendix: Detailed Business Appendix: Detailed Business Segment Overview Segment Overview

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Metals Recycling BusinessMetals Recycling Business

3.5 million tons of ferrous scrap 3.5 million tons of ferrous scrap processed and sold annuallyprocessed and sold annually

1.0 million tons sold annually by 1.0 million tons sold annually by Global Trading Business through Global Trading Business through supplies obtained in Russian and supplies obtained in Russian and Baltic Sea regionBaltic Sea region

One of countries largest One of countries largest exporters of ferrous scrap. Six exporters of ferrous scrap. Six deep water port facilities provide deep water port facilities provide competitive advantage and competitive advantage and barrier to entrybarrier to entry

Bi-coastal operations in 28 cities Bi-coastal operations in 28 cities and 11 statesand 11 states

Strong industry fundamentals Strong industry fundamentals have resulted in a significant have resulted in a significant increase in average prices increase in average prices compared to prior cyclescompared to prior cycles

Positive outlookPositive outlook

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Used Auto Parts BusinessUsed Auto Parts Business

32 stores32 stores

220,000+ cars processed per year220,000+ cars processed per year

~4 million annual retail customers~4 million annual retail customers

$100+ million - FY 2005 Revenue$100+ million - FY 2005 Revenue

attractive operating marginsattractive operating margins

Complementary to metals recycling Complementary to metals recycling business—source of scrap supplybusiness—source of scrap supply

Full-service businessFull-service business Acquired in Oct 2005Acquired in Oct 2005

18 locations18 locations

Provides great locations and access to Provides great locations and access to larger full-service sector of used parts larger full-service sector of used parts marketmarket

Self-service business

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Steel Manufacturing BusinessSteel Manufacturing Business

The steel manufacturing business serves as a source of demand for the The steel manufacturing business serves as a source of demand for the Company’s metals recycling business, contributing to vertical integration model Company’s metals recycling business, contributing to vertical integration model

700-800k tons annual capacity for rebar, wire rod and other long steel products700-800k tons annual capacity for rebar, wire rod and other long steel products

Near-term business outlook remains brightNear-term business outlook remains bright

Strong West Coast demand for steel Strong West Coast demand for steel productsproducts

Recent consolidation in West Coast Recent consolidation in West Coast capacity has improved capacity has improved supply/demand balancesupply/demand balance

New state of the art Electric Arc Furnace New state of the art Electric Arc Furnace has increased melt shop capacity and has increased melt shop capacity and improved productivityimproved productivity

Planned improvements in rolling mill will Planned improvements in rolling mill will improve output of finished products, improve output of finished products, provide greater flexibility to meet customer provide greater flexibility to meet customer demand and further improve productivitydemand and further improve productivity