DON’T BE FOOLED BY DECEPTIVE ACCUSATIONS

Recently Metalico was the victim of an anonymous and distorted attack questioning, among other things, our commitment to our local communities and our country. While we all know that competition in the scrap metal recycling business can be aggressive, it doesn’t justify this type of behavior.

Here are a few genuine facts to consider:

 American Jobs. All Metalico facilities are in the U.S. Every Metalico facility provides jobs in its community. Loss of business would force us to eliminate those positions for the hard-working people who have them and need them. It would also block our growth and our ability to create new jobs.

 Material Exports. Less than 10% of Metalico’s total sales are exported to foreign markets. We sell our materials to the same buyers – domestic and foreign – as do all the other scrap metal recyclers.

 Metalico sells more than 90% of its ferrous products to U.S. steel mills and more than 80% of its non-ferrous products to American consumers. Our principal buyers are steel mills and brokers located here in the U.S.

 Capital Reinvestment. We are investing capital in expansion projects throughout our network, including a new facility development in Pittsburgh, continuing upgrades to our shredders and replacements of trucks and containers – all bought from or contracted with American companies.

 Commitment to Our Community. Metalico and its subsidiaries continue to contribute to local charities and to support local activities.

 Foreign Investment. Yes, Metalico now has foreign ownership, like a lot of American companies. The largest scrap recycler in the U.S. has foreign ownership, as do some of the more significant regional scrap companies. Foreign ownership means that someone outside our country sees an opportunity for investment in America.

Investment means construction, expansion, growth, and jobs. All this means a higher standard of living and a revitalization of American industry, which is why our Federal and State elected officials from both parties actively solicit foreign investment.

Please understand the motive behind this aggressive marketing strategy as it is an unorthodox means of gaining market share.

Thank you for your continuing support.

- The People of Metalico