SOURCE: Tarpon Industries, Inc.

March 29, 2006 08:30 ET

Tarpon Industries Inks $3.0 Million Rack Storage System Contract

Company to Provide Material for Warehouse 4-Level Picking Module

MARYSVILLE, MI -- (MARKET WIRE) -- March 29, 2006 -- Tarpon Industries, Inc. (AMEX: TPO), a manufacturer and distributor of structural and mechanical steel tubing and engineered steel storage rack systems, today announced that it has entered into a multi-million dollar contract with a significant Internet retailer to provide turn-key engineered rack storage systems. The contract, valued at approximately $3 Million, provides for the design, manufacture and installation of a 4-level picking module in the new customer's 850,000 square foot distribution warehouse. The completed system will have more than 44,000 twelve foot storage levels.

"This innovative new project will showcase our customized racking and storage system capabilities and their seamless integration into a technologically sophisticated warehouse management system. It represents a key step forward in our growth in the Rack Industry," said Pat Hook, President and Chief Operating Officer. "Our selection for this opportunity was based largely on our reputation and ability to provide a quality racking solution in a timely basis."

This turn-key project is expected to be manufactured and installed during the 2nd Quarter of 2006. The identification of Tarpon's new account has been withheld in this release at the customer's request.

About Tarpon Industries, Inc.

Tarpon Industries, Inc., through its wholly owned subsidiaries within the United States and Canada, manufactures and sells structural and mechanical steel tubing and engineered steel storage rack systems. Through an aggressive acquisition-driven business model, the company's mission is to become a larger and more significant manufacturer and distributor of structural and mechanical steel tubing, engineered steel storage rack systems and related products. For more information, please visit Tarpon's website at http://www.tarponind.com.

Forward-Looking Statements

Certain statements made by Tarpon in this news release and other periodic oral and written statements, including filings with the Securities and Exchange Commission, are "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements, as well as statements which address operating performance, events or developments that we believe or expect to occur in the future, including those that discuss strategies, goals, outlook or other non-historical matters, or which relate to future sales or earnings expectations, cost savings, awarded sales, volume growth, earnings or general belief in our expectations of future operating results, are forward-looking statements. The forward-looking statements are subject to risks and uncertainties that may cause actual results to materially differ from those contained in the statements. Some, but not all of the risks, include our ability to obtain future sales, our ability to successfully integrate acquisitions, changes in worldwide economic and political conditions, including adverse effects from terrorism or related hostilities including increased costs, reduced production or other factors, costs related to legal and administrative matters, our ability to realize cost savings expected, inefficiencies related to production that are greater than anticipated, changes in technology and technological risks, foreign currency fluctuations, increased fuel costs, increased steel costs as it relates to our selling price, work stoppages and strikes at our facilities and that of our customers, the presence of downturns in customer markets where the Company's goods and services are sold, financial and business downturns of our customers or vendors, and other factors, uncertainties, challenges and risks detailed in Tarpon's public filings with the Securities and Exchange Commission. Tarpon does not intend or undertake any obligation to update any forward-looking statements.

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