Metal Management Completes Acquisition of Morris Recycling, Inc.; Assets are Complementary to Metal Management's Existing Footp

Metal Management, Inc. (Nasdaq:MTLM), one of the
nation's largest full service scrap metal recyclers, today announced
that it has completed the acquisition of substantially all of the
assets of privately held Morris Recycling, Inc. Terms of the
transaction were not disclosed.
   Morris Recycling is a leading full service scrap metal recycler
serving Mississippi and portions of Arkansas, Tennessee and Alabama.
Through its 10 operating facilities including a shredding plant on the
Mississippi River, Morris Recycling handles approximately 240,000 tons
of ferrous metals and 32 million pounds of nonferrous metals each
year.
   Daniel W. Dienst, Chairman, President and Chief Executive Officer
of Metal Management said, "The Morris assets fit neatly into our
existing footprint in the Mid-South region and advance our ambition to
make Metal Management the largest, strongest and most profitable scrap
metal recycler in North America. We expect that this acquisition will
be accretive to Metal Management's earnings per share, and will
provide us with additional facilities from which to serve our
important customers and consumers."
   Mr. Dienst continued, "This transaction exemplifies our
disciplined approach to pursuing value-creating acquisitions that
complement our existing operations. We have previously stated that by
being patient Metal Management would find opportunities with
characteristics that meet our stringent acquisition criteria:
geography contiguous with existing Metal Management facilities,
attractive transportation attributes, accretion to earnings and
employees with a shared culture. We are fortunate to be able to check
all of these boxes in acquiring the Morris business and we look
forward to welcoming the Morris employees into the Metal Management
family."
   Metal Management has received the necessary approval from its
lenders to effect the transaction. The acquisition is being funded
with Metal Management's cash on hand.

   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, 2005, 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, impact of export and other market conditions on the
business, availability of scrap alternatives, and under funded defined
benefit pension plans.