Olympic Steel Reports Record Sales and Earnings for First Quarter of 2004

Olympic Steel Reports Record Sales and Earnings for First Quarter
of 2004 


CLEVELAND, April 29  /PRNewswire-FirstCall/ -- Olympic Steel, Inc., , a
national steel service center, today announced record financial results for the
first quarter ended March 31, 2004.

Net sales for the first quarter of 2004 increased 62.8% to a record $187.0
million from $114.9 million for the first quarter a year ago.  Tons sold
increased 43.2% to a record 385 thousand from 269 thousand in the first quarter
of 2003.  First quarter 2004 net income was also the highest ever for the
Company, totaling $10.8 million, or $1.12 per share, compared to a net loss of
$(479) thousand, or $(.05) per share for last year's first quarter.

"The diligent execution of our management plans positioned us extremely well
during the first quarter, when steel demand and prices increased
significantly," stated Michael D. Siegal, Chairman and Chief Executive Officer.
"We are very pleased with our ability to perform and grow during a period of
very tight steel supply.  As indicated in our fourth quarter earnings release,
in anticipation of a market recovery we aggressively and intentionally
increased our inventory position at the end of 2003.  This allowed us to be
favorably inventoried to meet our customers' significantly increasing demand
for steel during the first quarter.  Our 43.2% increase in shipping volumes for
the first quarter far outpaced the service center industry increase of
approximately 25%. The increased volume of steel processed through our assets
was a significant contributor to our best ever quarterly financial results."

"Our commercial relationships will continue to be guided by our core values of
integrity, respect and financial stability, as we expect customer demand to
remain strong, prices to remain elevated, and availability of steel to be tight
through the second quarter.  We believe we are favorably positioned in terms of
inventory, equipment capacity, and working capital availability to continue
performing well through the seasonally stronger second quarter," concluded Mr.
Siegal.

Founded in 1954, Olympic Steel is a North American steel service center that is
experienced in the specialized processing and distribution of large volumes of
flat-rolled carbon and stainless steel products.  Headquartered in Cleveland,
Ohio, the Company operates 12 distribution and processing facilities and
participates in two joint ventures in Michigan.  For further information about
Olympic Steel, Inc., visit the Company's web site at http://www.olysteel.com/ .

It is the Company's policy not to make quarterly or annual sales or earnings
projections for external use and not to endorse any analyst's sales or earnings
estimates.  Forward-looking statements in this release are made pursuant to the
safe harbor provisions of the Private Securities Litigation Reform Act of 1995.

Such forward-looking statements are subject to certain risks and uncertainties
that could cause actual results to differ materially from those projected. 
Readers are cautioned not to place undue reliance on these forward- looking
statements that speak only as of the date hereof.  Such risks and uncertainties
include, but are not limited to: general business, economic and political
conditions; competitive factors such as the availability and pricing of steel
and fluctuations in customer demand; layoffs or work stoppages by the
Company's, suppliers', or customers' personnel; equipment installation delays
or malfunctions; and customer, supplier, and competitor consolidation or
insolvency.  Please refer to the Company's Securities and Exchange Commission
filings for further information.

                              OLYMPIC STEEL
                      SELECTED FINANCIAL INFORMATION

              (in thousands, except per share data and ratios)

                                          Three Months Ended
                                              March 31,
                                            2004         2003
  SUMMARY RESULTS OF OPERATIONS:              (unaudited)

  Net sales                               $187,033    $114,880
  Operating income                          18,835         379
  Income (loss) before income taxes         17,495        (798)
  Net income (loss)                        $10,847       $(479)
  Earnings per share:
  Net income (loss) per share -
      basic                                  $1.12      $(0.05)
     Net income (loss) per share -
      diluted                                $1.09      $(0.05)


                                              As of March 31,     Dec. 31,
                                             2004        2003       2003
  SUMMARY BALANCE SHEET DATA:                   (unaudited)

  Accounts receivable, net                 $82,319     $59,167    $56,501
  Inventories                               94,739      92,435     92,775
  Net property and equipment                87,787      95,331     89,782
  Total assets                             278,056     258,982    249,002
  Current liabilities                       51,562      35,666     42,574
  Total debt                               100,006     109,080     97,797
  Shareholders' equity                     123,266     115,024    112,236
  Shareholders' equity per share             12.77       11.93      11.63
  Debt-to-equity ratio                    .81 to 1    .95 to 1   .87 to 1


                                                Three Months Ended
                                                     March 31,
                                              2004               2003
  OTHER DATA:                                       (unaudited)

  Capital expenditures                          107                95
    EBITDA (a)                               21,206             2,466

  (a) Defined as operating income plus depreciation plus asset impairment
      charge.

     It is the Company's policy not to make quarterly or annual sales or
     earnings projections for external use and not to endorse any analyst's
     sales or earnings estimates.


                              OLYMPIC STEEL
                          RESULTS OF OPERATIONS

             (in thousands, except per share and tonnage data)

                                        Three Months Ended March 31,
                                           2004             2003
                                               (unaudited)
  Tons sold
     Direct                              330,095          229,501
     Toll                                 55,049           39,434
     Total tons                          385,144          268,935
     % change                              43.2%           (13.0%)

  Net sales                             $187,033         $114,880
     % change                              62.8%             4.2%

  Cost of materials sold                 133,546           90,987
     Gross profit                         53,487  28.6%    23,893  20.8%

  Operating expenses
     Warehouse and processing             10,884   5.8%     7,988   7.0%
     Administrative and general            9,677   5.2%     5,808   5.1%
     Distribution                          5,071   2.7%     3,764   3.3%
     Selling                               5,316   2.8%     2,754   2.4%
     Occupancy                             1,333   0.7%     1,113   1.0%
     Depreciation                          2,071   1.1%     2,087   1.8%
     Asset impairment charge                 300   0.2%         -   0.0%

        Total operating expenses          34,652  18.5%    23,514  20.5%

     Operating income                     18,835  10.1%       379   0.3%

  Income (loss) from joint ventures           78              (29)
    Income before financing costs and
     income taxes                         18,913              350
  Interest and other expense on debt       1,418   0.8%     1,148   1.0%
     Income (loss) before income taxes    17,495   9.4%      (798) (0.7%)
  Income tax benefit (provision)          (6,648) 38.0%       319  40.0%
     Net income (loss)                   $10,847            $(479)

  Earnings per share:
     Net income (loss) per share -
      basic                                $1.12           $(0.05)
     Weighted average shares
      outstanding - basic                  9,675            9,644
     Net income (loss) per share -
      diluted                              $1.09           $(0.05)
     Weighted average shares
      outstanding - diluted                9,959            9,644

     It is the Company's policy not to make quarterly or annual sales or
     earnings projections for external use and not to endorse any analyst's
     sales or earnings estimates.


DATASOURCE: Olympic Steel, Inc.



CONTACT:  Richard T. Marabito, Chief Financial Officer of Olympic Steel,

Inc., [phone], or fax, [phone]



Web site:  http://www.olysteel.com/ 

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