The reduction of approximately 80 personnel, which includes natural attrition, since April 30, 2001 amounts to about 8% of Olympic's total workforce. This reduction affects most locations at nearly every organizational level, from management to staff and warehouse personnel. The Company states that this action will not affect its focus on safety, or its performance efficiencies for its customers.

"We regret having to take these necessary actions to reduce our workforce and eliminate positions, but we believe that this will enable us to be a leaner, stronger company as the market recovers," stated Michael D. Siegal, Chairman and Chief Executive Officer.

"These difficult but necessary measures are part of a mandatory action plan that responds to the continued severe market conditions that exist in the steel industry today. This action furthers our efforts in reducing operating expenses and right sizing the operation," stated David A. Wolfort, President and Chief Operating Officer. "Our aggressive restructuring of employee base, inventory, and facilities further aligns Olympic with the changing market conditions. We remain committed to growth and continued positioning as a flat-rolled market leader."

The Company stated that the personnel reductions are expected to result in a total savings of approximately $1.8 million this year. Since the beginning of 2000, the Company has reduced its headcount and payroll costs by approximately 14%. Other management efforts include a reduction of approximately 32%, or $40 million, in inventory and a $32 million reduction in bank debt that have been achieved over the past 12 months. Further reductions in discretionary spending have been imposed at all levels of the Company. The Company previously announced the consolidation of its Chicago facilities and the closure of its international operations in Pittsburgh.

Olympic Steel is a leading North American steel service center that is experienced in the specialized processing and distribution of flat-rolled carbon and stainless steel products, as well as tubular steel products. Headquartered in Cleveland, Ohio, the company has approximately 900 employees in 14 locations serving nine geographic markets. For further information on Olympic Steel, Inc., visit the Company's web site at http://www.olysteel.com.

It is the Company's policy not to make quarterly or annual sales or earnings projections for external use and not to endorse any analyst's sales or earnings estimates. Forward-looking statements in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof. Such risks and uncertainties include, but are not limited to, general business and economic conditions; competitive factors such as the availability and pricing of steel and fluctuations in demand; work stoppages by automotive or steel manufacturers; equipment malfunctions; and the impact of the Company's expense reduction efforts on its future performance. Please refer to the Company's Securities and Exchange Commission filings for further information.

Contact: Cathy S. Kish
Director - Investor Relations
Telephone: (216) 682-4034
Fax: (216) 682-4065