Metal Management, Inc. and Southern Holdings, L.L.C. Divest Southern Recycling, L.L.C.

Metal Management, Inc. (Nasdaq:MTLM), one of the
nation's largest full service scrap metal recyclers, and Southern
Holdings, L.L.C., a privately-owned company, today announced the sale
of Southern Recycling, L.L.C. to European Metal Recycling Ltd. (EMR)
for $161.4 million in cash.
   Headquartered in Covington, Louisiana, Southern Recycling, L.L.C.
is the largest scrap metal recycler in the Gulf Coast region with 15
facilities in Louisiana, Alabama, Mississippi and Florida. Prior to
completion of the transaction, Southern Holdings, L.L.C. owned 71.5
percent of Southern Recycling, L.L.C. and Metal Management, Inc. owned
the remaining 28.5 percent.
   "EMR's valuation presented an outstanding opportunity to realize a
significant and immediate cash return on Metal Management's investment
in Southern Recycling," said Daniel W. Dienst, Chairman, President and
Chief Executive Officer of Metal Management, Inc. "We have enjoyed a
profitable relationship with the Southern team and thank their
managers and employees for all of their contributions through the
years."
   "Since 1900, our family has been in the metals recycling business
and today Southern Recycling is among the largest recyclers of scrap
metal in the U.S.," said Edward L. Diefenthal, co-owner and Chief
Executive Officer of Southern Holdings, L.L.C. "Though bittersweet for
my family, EMR's earnest interest convinced us to sell our stake in
Southern Recycling."
   "We are proud of the performance and leadership of the Southern
Recycling employees who will be a valuable addition to EMR. We are
pleased that the existing management team will continue to operate
under the leadership of Pat Ryan who has been named Chief Executive
Officer of Southern Recycling after many years of service as Chief
Operating Officer," added Mr. Diefenthal.
   Based upon its ownership interest, Metal Management, Inc. received
approximately $46 million. Metal Management, Inc. expects to record a
one-time gain of approximately $17 million after tax in its first
fiscal quarter of 2007. Metal Management, Inc. accounts for its
investment in Southern Recycling, L.L.C. under the equity method of
accounting.

   About Southern Recycling, L.L.C.

   Southern Recycling is a Louisiana-based scrap metal recycler with
15 facilities in 4 states.

   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.