Metal Management Reports Results for the Period Ended June 30, 2005

Metal Management, Inc. (Nasdaq:MTLM):

   --  Sales Increased to $382 Million

   --  Net Income of $5.4 Million

   --  EPS of $0.22 per diluted share

   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, 2005.
   The company generated consolidated net sales of $382 million in
the first quarter of fiscal 2006 and net income of $5.4 million.
EBITDA(1) (as defined) was $13 million, and earnings per share were
$0.22 per diluted common share.

   First Quarter Highlights

   --  Consolidated net sales of $382 million for the quarter ended
        June 30, 2005 represented an increase of 4% over net sales of
        $367 million for the quarter ended June 30, 2004.

   --  EBITDA (as defined) of $13 million in the quarter ended June
        30, 2005, compared to EBITDA (as defined) of $26 million in
        the quarter ended June 30, 2004.

   --  Net income was $5.4 million or $0.22 per diluted common share,
        compared to $12.5 million or $0.52 per common diluted share
        for the quarter ended June 30, 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 120 million pounds.

   --  The Company turned ferrous inventories 13 times and
        non-ferrous inventories (excluding stainless and alloy) 14
        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
        marketable securities of $47 million.

   Daniel W. Dienst, Chairman, Chief Executive Officer and President
of Metal Management said, "Metal Management met the challenges in the
first quarter of fiscal 2006 by adhering to our disciplined strategy
of turning inventories as rapidly as market conditions permit. We have
now generated positive pre tax income for 14 consecutive quarters. Our
business was tested in the first quarter and maintaining profitability
in the face of ferrous and nickel markets that declined precipitously
is a testament to our franchise and the hard work of our 1,600
employees across the country."
   The Company noted that weakness in the ferrous markets during the
first half of calendar 2005 was without precedent both in terms of
percentage and absolute dollar declines in unit pricing. These price
changes were extreme and significantly reduced the spreads that the
Company was able to realize.

   --  Prices for prime grades of ferrous scrap declined by more than
        $300 per ton since late calendar 2004 through June 2005.

   --  Prices for prime grades of ferrous scrap declined from
        approximately $250 per ton at the start of the first quarter
        to about $140 per ton in June 2005.

   --  Obsolete grades of ferrous scrap also declined precipitously
        in the first half of calendar 2005 and during the first
        quarter of fiscal 2006.

   Mr. Dienst continued, "Due to our operational flexibility and
unique distribution channels, we were able to offset weak domestic
demand for ferrous scrap by taking advantage of more favorable export
markets. In the first quarter we exported approximately 330,000 tons
of ferrous grades of scrap. The weakness evidenced by declining prices
in the ferrous market has now abated to some degree and we are
cautiously optimistic for continued recovery in ferrous prices in the
current quarter.
   "We are especially pleased with the progress of our new joint
ventures in Albany, New York and Nashville, Tennessee. Port Albany
Ventures is already making a strong contribution to our bottom line
and has expanded both the scope of our operations as well as our
portfolio of services. Metal Management Nashville is also progressing
well and we are on track to ramp up operations there over the next few
quarters. Joint ventures, including our investment in Southern Scrap,
contributed more than $2 million to our pre-tax earnings in the first
fiscal quarter and will be an important element of our growth strategy
going forward as we continue to expand our service offerings and
geographic footprint.
   "The hard work is behind us in creating one of the strongest
balance sheets in the industry. This enables us to make infrastructure
investments that will create an enterprise with world class recycling
facilities. Our national footprint and track-record of operational
excellence enables us to now focus more keenly on both organic and
external growth opportunities. We will continue to be financially
disciplined as we assess opportunities for growth and will move
forward opportunistically only if a situation meets our stringent
criteria. We would look for any potential transaction to be accretive
to earnings while maintaining a strong capitalization. In the
meantime, our dividend program allows us to continue returning capital
to shareholders even as we enhance and expand our infrastructure and
geographic reach," concluded Mr. Dienst.

   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 2, 2005. The
conference call can be accessed by dialing 800-591-6923 passcode
68890461. International callers can dial 617-614-4907 passcode
68890461. 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 29899615 through August 9, 2005. International
callers can dial 617-801-6888 passcode 29899615 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, non-cash and
non-recurring expense (income), 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
                                           ---------------------------
                                             June 30,       June 30,
                                               2005           2004
                                           -----------     -----------

Net sales                                   $  381,634     $  367,176

Operating expenses:
 Cost of sales (excluding depreciation)        350,379        323,779
 General and administrative                     19,746         18,682
 Depreciation and amortization                   4,614          4,529
                                           -----------     -----------
Operating income                                 6,895         20,186

Income from joint ventures                       2,051          3,230
Interest expense                                  (376)        (1,313)
Interest and other income, net                     472             39
Loss on debt extinguishment                          0         (1,653)
                                           -----------     -----------

Income before income taxes                       9,042         20,489
Provision for income taxes                       3,596          7,964
                                           -----------     -----------
Net income                                  $    5,446     $   12,525
                                           ===========     ===========

Earnings per share:
 Basic                                      $     0.22     $     0.55
                                           ===========     ===========
 Diluted                                    $     0.22     $     0.52
                                           ===========     ===========

Cash dividends declared per share           $    0.075     $    0.000
                                           ===========     ===========

Weighted average common shares outstanding:
 Basic                                          24,354         22,947
                                           ===========     ===========
 Diluted                                        25,300         24,161
                                           ===========     ===========



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

                                                  Three months ended
                                                ----------------------
                                                 June 30,    June 30,
                                                   2005        2004
                                                ---------    ---------

Net income                                     $   5,446    $  12,525

Add Back:
 Depreciation and amortization                     4,614        4,529
 Tax provision                                     3,596        7,964
 Stock-based compensation expense                  1,498        1,067
 Income from joint ventures                       (2,051)      (3,230)
 Interest expense                                    376        1,313
 Interest and other income, net                     (472)         (39)
 (Gain) loss on sale of fixed assets                 (16)         145
 Loss on debt extinguishment                           0        1,653
                                                ---------    ---------

EBITDA (AS DEFINED)                            $  12,991    $  25,927
                                                =========    =========
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