Released on October 2, 2007

Steelmaker Steel Dynamics Inc., Fort Wayne, Ind., has signed an agreement to acquire scrap recycler OmniSource Corp., also of Fort Wayne.

According to the agreement, which has been approved by the boards of directors of both companies, Steel Dynamics will receive all of the outstanding stock of OmniSource in a transaction valued at slightly more than $1 billion. OmniSource shareholders will receive 9.7 million shares of Steel Dynamics stock and $425 million in cash. The aggregate transaction value includes the assumption by SDI of certain liabilities, including net debt, which is expected to be approximately $210 million at closing. Completion of the transaction is subject only to regulatory approval and is expected to close in November.

OmniSource, which on Sept. 19 announced plans to spend $9 million to upgrade facilities in Toledo, will operate as a wholly owned subsidiary of Steel Dynamics, which recently announced plans to build a scrap processing plant in Indianapolis. According to a press release by Steel Dynamics, the new company will maintain a focus on ferrous and nonferrous scrap processing, brokerage and industrial scrap management. Steel Dynamic’s existing scrap operations in Virginia and Tennessee will be consolidated into OmniSource, as will the planned facility in Indianapolis.

Danny Rifkin, OmniSource’s current president and CEO, will join the Steel Dynamics management team as an executive vice president of the company’s newly formed recycled metals platform. He will continue to lead the OmniSource subsidiary as president and COO. Rifkin also will be named to Steel Dynamics’ board of directors.

 “This acquisition creates a significant platform for Steel Dynamics’ strategic expansion into the steel scrap and recycled metals sector, which is an important element of our overall growth plan,” said Keith Busse, the company’s chairman and CEO.