Metal Management Reports Results for the Period Ended June 30, 2006

Metal Management, Inc. (Nasdaq:MTLM):

   --  Net Sales of $496 Million

   --  Net Income of $44.9 Million

   --  EPS of $1.70 per diluted share

   --  EBITDA(1) (as defined) of $53.6 Million

   Metal Management, Inc. (Nasdaq:MTLM), one of the nation's largest
full service scrap metal recyclers, today announced results for the
first fiscal quarter ended June 30, 2006.
   The company generated consolidated net sales of $496 million in
the first quarter of fiscal 2007 and net income of $44.9 million.
EBITDA (as defined) was $53.6 million, and earnings per share were
$1.70 per diluted common share. Earnings per share included a one-time
gain of approximately $0.61 per diluted common share related to the
sale of a joint venture interest.
   "With strong earnings, record sales and the continued hard work of
our 1,800 dedicated employees, Metal Management's 2007 fiscal year is
off to a great start," said Daniel W. Dienst, Chairman, Chief
Executive Officer and President of Metal Management. "We capitalized
on favorable ferrous and nonferrous market conditions during the
quarter to achieve record revenues and the second highest quarterly
EBITDA in our Company's history. Metal Management is a strong,
profitable industry leader, and through our aggressive investment in
new facilities, equipment and technology we are well-positioned to
continue creating value for our shareholders."

   First Quarter Highlights

   --  Consolidated net sales of $496 million for the quarter ended
        June 30, 2006, an increase of 30% as compared to net sales of
        $382 million for the quarter ended June 30, 2005.

   --  Net income, after recording a gain on the sale of the
        Company's 28.5 percent interest in Southern Recycling L.L.C.,
        was $44.9 million or $1.70 per diluted common share, compared
        to $5.4 million or $0.22 per diluted common share in the same
        period last year.

   --  EBITDA (as defined) of $53.6 million in the quarter ended June
        30, 2006 represented an increase of 313% over EBITDA (as
        defined) of $13.0 million in the quarter ended June 30, 2005.

   --  Approximately 1.2 million tons of metal were processed and
        sold or brokered, including ferrous yard shipments of
        approximately 1.1 million tons and non-ferrous shipments of
        approximately 127 million pounds.

   --  The Company turned ferrous inventories approximately 11 times
        and non-ferrous inventories (excluding stainless and alloy)
        approximately 11 times.

   --  A dividend of $0.075 per share was paid to all shareholders of
        record.

   --  Metal Management concluded the fiscal quarter with no
        borrowings under its line of credit and a solid cash and
        short-term investment position of $31.3 million.

   "Operational excellence remains a key competitive advantage for
Metal Management and this strength helped us achieve outstanding
results in our first fiscal quarter," said Mr. Dienst. "Once again
this quarter we leveraged Metal Management's transportation and
logistics expertise to take advantage of the attractive pricing
environment here in the United States. We also continued to rapidly
turn our inventories in order to limit the impact of price
fluctuations. This disciplined inventory management was especially
important in mitigating unprecedented nonferrous volatility."

   Transaction Update

   Mr. Dienst stated, "By remaining disciplined and opportunistic, we
profitably expanded Metal Management's operations and generated
outstanding returns for our shareholders in the first fiscal quarter.
Both of Metal Management's recently completed acquisitions were highly
complementary and immediately accretive."

   --  Morris Recycling: On February 27, 2006, Metal Management
        acquired substantially all of the assets of Morris Recycling,
        Inc. Now known as Metal Management Mississippi, the business
        has 10 facilities including a shredding plant adjacent to the
        Mississippi River. Metal Management Mississippi is now fully
        integrated and contributed to the Company's results in the
        first fiscal quarter.

   --  Southern Recycling: On April 28, 2006, Metal Management
        completed the sale of its 28.5 percent ownership interest in
        Southern Recycling, L.L.C for approximately $46 million in
        cash. In connection with this transaction, the Company
        recorded a one-time gain of approximately $26.4 million pre
        tax, or $16.2 million after tax, representing approximately
        $0.61 per diluted share in the first fiscal quarter.

   --  East Chicago: On May 16, 2006, Metal Management acquired
        substantially all of the assets of a recycling facility in
        East Chicago, Indiana from OmniSource Corporation. Under the
        terms of the agreement, Metal Management acquired property,
        buildings and equipment including a 29 acre yard, an
        automobile shredder, two balers and a shear. The East Chicago
        facility contributed to Metal Management's profitability
        during the final six weeks of the Company's first fiscal
        quarter.

   During the quarter Metal Management entered into a new five-year
credit agreement with a consortium of lenders led by LaSalle Bank,
N.A. The agreement represents a commitment of $300 million that Metal
Management can draw on to pursue capital allocation opportunities that
could include acquisitions, dividends or share repurchases. Mr. Dienst
noted, "As a relatively young company, we will evaluate all capital
allocation opportunities against stringent criteria, relative returns
and franchise enhancing characteristics."
   Mr. Dienst concluded, "After generating positive pre-tax income
for 18 consecutive quarters, Metal Management has an outstanding
track-record and we are confident that we can continue to build on our
success. Once again, a note of gratitude to our employees across the
country is appropriate. With the most talented employees in our
industry, we are confident that Metal Management can operate
profitably and create value for shareholders in even the most dynamic
and unpredictable of markets."

   Investor Conference Call

   Metal Management will host its First Quarter Results Conference
Call and Webcast at 11:00 am ET (10:00 am CT) on August 3, 2006. The
conference call can be accessed by dialing 866-510-0712 passcode
78381659. International callers can dial 617-597-5380 passcode
78381659. The conference will also be accessible via the web at
www.mtlm.com. A replay of the call will be available by dialing
888-286-8010 passcode 18734229 through August 10, 2006. International
callers can dial 617-801-6888 passcode 18734229 for the replay.

   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.

   (1) EBITDA is defined by the Company to be earnings before
interest, taxes, depreciation, amortization, severance and other
charges, gain (loss) on sale of fixed assets, income from joint
ventures, other income (expense), gain on sale of joint venture
interest, and stock-based compensation expense. EBITDA is presented
because management believes it provides additional information with
respect to the performance of its fundamental business activities.
Management also believes that debt holders and investors commonly use
EBITDA to analyze Company performance and to compare that performance
to the performance of other companies that may have different capital
structures. A reconciliation of EBITDA to GAAP net income is included
in the table attached to this release. EBITDA is a measure typically
used by many investors, but is not a measure of earnings as defined
under Generally Accepted Accounting Principles, and may be defined
differently by others.
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                        METAL MANAGEMENT, INC.
                 CONSOLIDATED STATEMENTS OF OPERATIONS
          (unaudited, in thousands, except per share amounts)

                                                  Three months ended
                                                ----------------------
                                                 June 30,    June 30,
                                                   2006        2005
                                                ----------  ----------

Net sales                                        $495,912    $381,634

Operating expenses:
 Cost of sales  (excluding depreciation)          422,921     350,379
 General and administrative                        20,872      19,746
 Depreciation and amortization                      6,847       4,614
 Severance and other charges                          442           0
                                                ----------  ----------
Operating income                                   44,830       6,895

Income from joint ventures                          1,860       2,051
Interest expense                                     (322)       (376)
Interest and other income, net                        431         472
Gain on sale of joint venture interest             26,362           0
                                                ----------  ----------

Income before income taxes                         73,161       9,042
Provision for income taxes                         28,272       3,596
                                                ----------  ----------
Net income                                        $44,889      $5,446
                                                ==========  ==========

Earnings per share:
 Basic                                              $1.76       $0.22
                                                ==========  ==========
 Diluted                                            $1.70       $0.22
                                                ==========  ==========

Cash dividends declared per share                  $0.075      $0.075
                                                ==========  ==========

Weighted average common shares outstanding:
 Basic                                             25,576      24,354
                                                ==========  ==========
 Diluted                                           26,393      25,300
                                                ==========  ==========



                        METAL MANAGEMENT, INC.
                          EBITDA (AS DEFINED)
               RECONCILIATION TO GAAP FINANCIAL MEASURES
                       (unaudited, in thousands)

                                                   Three months ended
                                                  --------------------
                                                  June 30,   June 30,
                                                    2006       2005
                                                  ---------  ---------

Net income                                         $44,889     $5,446

Add Back:
  Depreciation and amortization                      6,847      4,614
  Tax provision                                     28,272      3,596
  Stock-based compensation expense                   1,178      1,498
  Income from joint ventures                        (1,860)    (2,051)
  Gain on sale of joint venture interest           (26,362)         0
  Interest expense                                     322        376
  Interest and other income, net                      (431)      (472)
  Severance and other charges                          442          0
  (Gain) loss on sale of fixed assets                  310        (16)
                                                  ---------  ---------

EBITDA (AS DEFINED)                                $53,607    $12,991
                                                  =========  =========
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