Metal Management Enters into New Five-Year Credit Agreement

Metal Management, Inc. (Nasdaq:MTLM), one of the
nation's largest full service scrap metal recyclers, today announced
that it has entered into a new five-year credit agreement with a
consortium of lenders led by LaSalle Bank, N.A. The agreement
represents a credit commitment of $300 million with a maturity date of
May 1, 2011.
   The $300 million credit agreement, which replaces the previous
$200 million credit agreement, is a revolving credit and letter of
credit facility. Proceeds from the new credit agreement will be
utilized to increase the Company's flexibility to pursue capital
allocation opportunities that could include acquisitions, dividends or
share repurchases. Borrowing costs are based on variable rates tied to
the London Interbank Offered Rate ("LIBOR") plus a margin or prime
rate plus or minus a margin. The margin is dependent on the Company's
leverage ratio as determined by the trailing four fiscal quarters,
which as currently measured results in an effective borrowing rate of
approximately 5.95% per annum.
   "For many years our banks, led by LaSalle Bank, have helped foster
Metal Management's success and this credit agreement demonstrates
LaSalle's commitment to the ongoing growth of our company," said
Daniel W. Dienst, Chairman, President and Chief Executive Officer of
Metal Management, Inc. "We are especially pleased that the annual
interest expense under this agreement, including amortization related
to deferred financing costs and unused line fees, will be
significantly less than it was under our previous agreement. We
appreciate our lenders' recognition of Metal Management's financial
discipline, strong cash flow, and the outstanding performance made
possible by the focus and dedication of the Company's talented
employees."

   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.