Metal Management Reports Results for the Period Ended December 31, 2005

Metal Management, Inc. (Nasdaq:MTLM):

   --  Net Sales of $395 Million

   --  Net Income of $15.3 Million

   --  EPS of $0.60 per diluted share

   Metal Management, Inc. (Nasdaq:MTLM), one of the nation's largest
full service scrap metal recyclers, today announced results for its
third fiscal quarter ended December 31, 2005.
   The company generated consolidated net sales of $395 million in
the third quarter of fiscal 2006 and net income of $15.3 million.
EBITDA(1) (as defined) was $31.1 million, and earnings per share were
$0.60 per diluted common share.

   Third Quarter Highlights

   --  Consolidated net sales of $395.1 million for the quarter ended
        December 31, 2005, compared to $447.6 million for the quarter
        ended December 31, 2004.

   --  EBITDA (as defined) of $31.1 million in the quarter ended
        December 31, 2005, compared to EBITDA (as defined) of $51.9
        million in the quarter ended December 31, 2004.

   --  Net income was $15.3 million or $0.60 per diluted common share
        for the quarter ended December 31, 2005, compared to $29.5
        million or $1.19 per common diluted share for the quarter
        ended December 31, 2004.

   --  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 124 million pounds.

   --  The Company turned ferrous inventories approximately 11 times
        and non-ferrous inventories (excluding stainless and alloy)
        approximately 13 times.

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

   --  The company ended the fiscal quarter with no borrowings under
        its line of credit and a solid cash position, including short
        term investments, of nearly $75 million.

   Year to Date Highlights

   --  Consolidated net sales of $1.2 billion for the nine months
        ended December 31, 2005, compared to net sales of $1.2 billion
        for the nine months ended December 31, 2004.

   --  EBITDA (as defined) of $76.7 million in the nine months ended
        December 31, 2005, compared to EBITDA (as defined) of $135.6
        million in the nine months ended December 31, 2004.

   --  Net income of $37.7 million for the nine months ended December
        31, 2005, or $1.48 per common diluted share, compared to net
        income of $76.1 million, or $3.11 per common diluted share for
        the nine months ended December 31, 2004.

   "Metal Management delivered strong results in the third quarter
despite challenging ferrous market conditions evidenced by a volatile
pricing environment in the U.S. and weak international demand," said
Daniel W. Dienst, Chairman, Chief Executive Officer and President of
Metal Management. "The Company's ongoing financial and operational
success is attributable to the focus and commitment of our 1,600
employees across the country. We are proud to have now generated 16
consecutive quarters of positive pre-tax income."
   "Operational excellence and diversification are two important
differentiators for Metal Management, helping us deliver solid results
even in very difficult market conditions," Mr. Dienst added. "The
Company's performance this quarter once again demonstrated the
importance of rapidly turning inventories to limit the impact of price
fluctuations and the strategic value of our diversified product
offering and geography."
   The Company noted that domestic demand for ferrous scrap metal was
relatively strong throughout its fiscal third quarter. Pricing
remained volatile however, demonstrating the importance of Metal
Management's disciplined approach to rapidly turning inventory. In
response to weakness in demand from export markets, Metal Management
leveraged its operational flexibility and multifaceted distribution
network to take advantage of the more favorable U.S. markets.
   Non-ferrous markets remained strong throughout the quarter. Metal
Management's non-ferrous markets, which account for approximately 30
percent of the Company's sales, benefited from a robust pricing
environment. Mr. Dienst noted, "The considerable units of copper,
aluminum, and nickel that we process balance our exposure to the steel
markets. This diversification is an important part of our business
strategy. We believe that we are the largest non-ferrous processor in
the U.S. and we are on track to process approximately 475 million
pounds of non-ferrous scrap metal in fiscal 2006."
   Southern Recycling, L.L.C., one of the largest metal recyclers in
the Gulf Coast region in which Metal Management has a 28.5 percent
interest, concluded its insurance adjustment process related to
damages from Hurricane Katrina. This resulted in a benefit for Metal
Management contributing approximately $1.8 million of pre-tax earnings
in our third quarter. Southern Recycling indicates that it is now
nearly fully recovered from the operational damage caused by Hurricane
Katrina and is well-positioned to assist with the recycling and
recovery challenges in New Orleans and the Gulf Coast region.
   The Company has been implementing a long-term strategy to improve
the efficiency and profitability of its Chicago-area scrap yards.
After a thorough review of the Chicago area operations, the Company
consolidated certain processing activities and increased utilization.
In connection with this initiative, Metal Management recorded an asset
impairment charge of approximately $1.0 million in the third quarter.
   Mr. Dienst continued, "Given the financial flexibility afforded by
our strong balance sheet, we are always assessing opportunities to
generate attractive returns on capital for our shareholders. In the
third quarter we finished the installation of our Gamma-Tech metal
analyzer in Memphis and completed the installation of state-of-the-art
metal recovery technology at six shredding facilities, bringing the
number of these plants across our system to eight. After 9 months of
fiscal 2006, we've made capital investments of approximately $22
million into our operations. Consistent with the plan that we
announced at the start of the fiscal year, and depending on the timing
of a planned land purchase that would expand an existing facility, we
expect that our total capital expenditures in fiscal 2006 will be
between $30 and $40 million."
   In conclusion, Mr. Dienst stated, "While prudently evaluating
external investment opportunities, we intend to invest in technologies
and other initiatives to increase the efficiency of our operations,
return capital to our shareholders through our dividend program and
evaluate appropriate acquisition opportunities. With our competitive
advantages - scale, locations, diversity of mix, technologies, balance
sheet and employees - Metal Management is well-positioned for growth
and success."

   Investor Conference Call 

   Metal Management will host its Third Quarter Results Conference
Call and Webcast at 11:00 am ET (10:00 am CT) on February 2, 2006. The
conference call can be accessed by dialing 866-510-0708 passcode
52940563. International callers can dial 617-597-5377 passcode
52940563. 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 25655480 through February 9, 2006. International
callers can dial 617-801-6888 passcode 25655480 for the replay.

   About Metal Management, Inc. 

   Metal Management is one of the largest full service metal
recyclers in the United States, with approximately 40 recycling
facilities in 15 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.

   (1) EBITDA is defined by the company to be earnings before
interest, taxes, depreciation, amortization, asset impairment charge,
income from joint ventures, gain (loss) on sale of fixed assets, other
income (expense), stock-based compensation expense, and gain (loss) on
debt extinguishment. 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 of performance typically
used by many investors, but is not a measure of earnings as defined
under GAAP, 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         Nine months ended
                   ------------------------- -------------------------
                   December 31, December 31, December 31, December 31,
                       2005         2004         2005         2004
                   ------------ ------------ ------------ ------------

Net sales             $395,090     $447,553   $1,155,025   $1,239,736

Operating expenses:
 Cost of sales
  (excluding
  depreciation)        345,984      377,211    1,025,411    1,051,056
 General and
  administrative        20,469       19,955       58,711       56,951
 Depreciation and
  amortization           4,891        4,687       13,868       13,896
 Asset impairment
  charge                   995            0          995            0
                   ------------ ------------ ------------ ------------
Operating income        22,751       45,700       56,040      117,833

Income from joint
 ventures                2,964        3,911        6,466       11,848
Interest expense          (418)        (649)      (1,176)      (2,883)
Interest and other
 income (expense),
 net                       376          (47)       1,433           27
Loss on debt
 extinguishment              0            0            0       (1,653)
                   ------------ ------------ ------------ ------------

Income before
 income taxes           25,673       48,915       62,763      125,172
Provision for
 income taxes           10,327       19,433       25,050       49,112
                   ------------ ------------ ------------ ------------
Net income             $15,346      $29,482      $37,713      $76,060
                   ============ ============ ============ ============

Earnings per share:
 Basic                   $0.63        $1.26        $1.54        $3.29
                   ============ ============ ============ ============
 Diluted                 $0.60        $1.19        $1.48        $3.11
                   ============ ============ ============ ============

Cash dividends
 declared per share     $0.075       $0.075       $0.225       $0.075
                   ============ ============ ============ ============

Weighted average
 common shares
 outstanding:
 Basic                  24,556       23,329       24,429       23,088
                   ============ ============ ============ ============
 Diluted                25,733       24,833       25,533       24,437
                   ============ ============ ============ ============



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

                       Three months ended         Nine months ended
                   ------------------------- -------------------------
                   December 31, December 31, December 31, December 31,
                       2005         2004         2005         2004
                   ------------ ------------ ------------ ------------

Net income             $15,346      $29,482      $37,713      $76,060

Add Back:
  Depreciation and
   amortization          4,891        4,687       13,868       13,896
  Tax provision         10,327       19,433       25,050       49,112
  Asset impairment
   charge                  995            0          995            0
  Stock-based
   compensation
   expense               2,183        1,128        5,545        3,299
  Income from joint
   ventures             (2,964)      (3,911)      (6,466)     (11,848)
  Interest expense         418          649        1,176        2,883
  Interest and
   other (income)
   expense, net           (376)          47       (1,433)         (27)
  Loss on sale of
   fixed assets            305          396          301          535
  Loss on debt
   extinguishment            0            0            0        1,653
                   ------------ ------------ ------------ ------------

EBITDA (AS DEFINED)    $31,125      $51,911      $76,749     $135,563
                   ============ ============ ============ ============
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