Russel Metals Inc.
TSX : RUS

Russel Metals Inc.

August 23, 2007 13:09 ET

Russel Metals Reports Investment in Canadian Asset-Backed Securities

TORONTO, ONTARIO--(Marketwire - Aug. 23, 2007) - Russel Metals Inc. (TSX:RUS) today reported that approximately $11 million or 5% of its $207 million in cash and cash equivalents is invested in commercial paper issued by a trust managed by Coventree Capital. The commercial paper was not repaid when it came due on Thursday, August 23rd. The commercial paper was accorded the highest rating (R-1 (high)) available from the Dominion Bond Rating Service when it was purchased. The Company is unable to determine at this time if the commercial paper will ultimately be repaid in whole or in part and, if so, when that might occur. In addition, the Company has $4 million invested in asset-backed commercial paper issued by a trust sponsored by the Royal Bank of Canada and $192 million invested in bank term deposits with members of its banking syndicate.

Russel Metals is one of the largest metals distribution companies in North America. It carries on business in three distribution segments: metals service centers, energy tubular products and steel distributors, under various names including Russel Metals, A.J. Forsyth, Acier Leroux, Acier Loubier, Acier Richler, Arrow Steel Processors, B&T Steel, Baldwin International, Comco Pipe and Supply, Fedmet Tubulars, Leroux Steel, McCabe Steel, Megantic Metal, Metaux Russel, Milspec Industries, Pioneer Pipe, Russel Metals Williams Bahcall, Spartan Steel Products, Sunbelt Group, Triumph Tubular & Supply, Wirth Steel and York-Ennis.

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