Olympic Steel signs agreement to acquire Tinsley Group - PS&W

May 22, 2006

Olympic Steel Inc., a national steel service center, today announced the signing of a definitive stock purchase agreement to acquire Tinsley Group - PS&W Inc., an indirect subsidiary of Eliza Tinsley Group PLC, an English company. PS&W is a North Carolina-based fabricator of heavy construction equipment components for original equipment manufacturers and is a current customer of Olympic Steel.

The purchase price for the acquisition of PS&W, which is structured as a stock sale, is $10,080,000 in cash, subject to a net working capital adjustment after the closing. Subject to due diligence and satisfaction of closing conditions, the transaction should be completed in early June 2006.

PS&W was founded in 1990, and currently operates two facilities located in Siler City and Seagrove, N.C.