Mr. Martin Juravsky reports

RUSSEL METALS CLOSES ACQUISITION OF SEVEN SERVICE CENTERS FROM KLOECKNER

Russel Metals Inc. has closed its acquisition of seven service centres in the United States from Kloeckner Metals Corp. for $102-million (U.S.), subject to normal course working capital adjustments. The seven metals service centres are located in Dubuque (Iowa), Charlotte (North Carolina), Suwanee (Georgia), Houston (Texas), Austin (Texas), Jacksonville (Florida) and Pompano Beach (Florida).

John Reid, president and chief executive officer of Russel Metals, commented: "We look forward to expanding our U.S. footprint in key geographic areas. We welcome the Kloeckner employees to the Russel family."

About Russel Metals Inc.

Russel Metals is one of the largest metals distribution companies in North America with a growing focus on value-added processing. It carries on business in three segments: metals service centres, energy field stores and steel distributors. Its network of metals service centres carries an extensive line of metal products in a wide range of sizes, shapes and specifications, including carbon hot rolled and cold finished steel, pipe and tubular products, stainless steel, aluminum, and other non-ferrous specialty metals. Its energy field stores carry a specialized product line focused on the needs of energy industry customers. Its steel distributors operations act as master distributors selling steel in large volumes to other steel service centres and large equipment manufacturers mainly on an as-is basis.