Metal Management Announces 2.7 Million Share Repurchase Authorization

Metal Management, Inc. (Nasdaq:MTLM), one of the
nation's largest full service scrap metal recyclers, today announced
that its Board of Directors has authorized the Company to repurchase
up to 2.7 million shares of its common stock, or approximately 10% of
the current shares outstanding.
   "Metal Management is committed to investing for growth and
creating value for our shareholders, propositions that are not
mutually exclusive as evidenced by our recent acquisitions, ambitious
capital expenditure program and this new authorization to repurchase
up to 2.7 million shares of our common stock," said Daniel W. Dienst,
Chairman, Chief Executive Officer and President of Metal Management.
"Our financial performance over the past 18 quarters has proven that
we have transformed our business. Our strong balance sheet and
significant free cash flow allow us the flexibility to simultaneously
invest in our current business, pay dividends, and initiate this share
repurchase program while we continue to prudently pursue other growth
opportunities. We believe this stock repurchase program underscores
the Board's commitment to enhancing shareholder value."
   Metal Management will repurchase shares from time to time for cash
in open market transactions or in privately negotiated transactions in
accordance with applicable federal securities laws. The timing and
amount of any repurchases will be determined by the Company's
management based on its evaluation of market conditions, share price,
other capital allocation alternatives, lender approvals if required,
and other factors. The new share repurchase program does not require
the Company to acquire any specific number of shares and may be
modified, suspended, extended or terminated by the Company at any time
without prior notice.
   The Company's $300 million credit agreement allows for repurchases
of common stock in an aggregate amount of up to $50 million in any
twelve month period and $100 million over the term of the credit
agreement. Approval will be required from the lenders under the credit
agreement before any repurchases that exceed those limitations. As of
September 6, 2006, Metal Management had no borrowings under its line
of credit and a cash position of approximately $60 million, including
short-term investments.

   About Metal Management, Inc.

   Metal Management is one of the largest full service metal
recyclers in the United States, with approximately 50 recycling
facilities in 16 states. For more information about Metal Management,
Inc., visit the Company's website at www.mtlm.com.

   Forward Looking Statements

   All of the statements in this release, other than historical
facts, are forward-looking statements made in reliance upon the Safe
Harbor Provisions of the Private Securities Litigation Reform Act of
1995. As such, they involve risks and uncertainties and are subject to
change at any time. These statements reflect our current expectations
regarding the future profitability of the Company and its
subsidiaries. As discussed in our annual report on Form 10-K for the
fiscal year ended March 31, 2006, and in other periodic filings filed
by the Company with the U.S. Securities and Exchange Commission, some
of the factors that could affect our performance include, among other
things: cyclicality and competitiveness of the metals recycling
industry, commodity price fluctuations, debt covenants that restrict
our ability to engage in certain transactions, compliance with
environmental, health, safety and other regulatory requirements
applicable to the Company, potential environmental liability, risk of
deterioration of relations with labor unions, dependence on key
management, dependence on suppliers of scrap metal, concentration of
customer risk and exposure to credit risk, impact of export and other
market conditions on the business, availability of scrap alternatives,
under funded defined benefit pension plans, and the implementation of
a significant IT consolidation in fiscal 2007 and 2008.
   Forward-looking statements speak only as of the date they were
made, and Metal Management undertakes no obligation to update or
revise any forward-looking statements in light of new information or
future events. You should not place undue reliance on any
forward-looking statements, which speak only as of the date of this
press release.