SIMS LIMITED — Earnings Release 2007

Oct 30, 2007

31 OCTOBER 2007

==> picture [74 x 38] intentionally omitted <==

==> picture [74 x 37] intentionally omitted <==

==> picture [163 x 36] intentionally omitted <==

ASX & MEDIA RELEASE

(ASX CODE: SGM)

SIMS GROUP REPORTS UNAUDITED NET PROFIT AFTER TAX FOR 3 MONTHS TO 30 SEPTEMBER 2007 OF $57.3 MILLION CONSISTENT WITH EARLIER GUIDANCE

Highlights

• Unaudited sales revenue of $1.316 billion up 7% on Q1 FY07

• Unaudited EBITDA of $110.2 million down 7% on Q1 FY07

• Unaudited net profit after tax of $57.3 million down 16% on Q1 FY07

• Merger with Metal Management on track, following early US Anti-trust clearance

• Completion of Adams joint venture in Southern California

Sims Group Limited Group Chief Executive, Jeremy Sutcliffe, announced today that the Company’s unaudited net profit after tax for the three months to 30 September 2007 was $57.3 million, consistent with the earnings guidance provided by the Company to the market on 17 September 2007, but down 16% on the prior corresponding quarter in fiscal 2007. Unaudited EBITDA (earnings before interest, tax, depreciation and amortisation) was down 7% on the prior corresponding quarter to $110.2 million. Unaudited sales revenue was up 7% on the prior corresponding quarter to $1.316 billion.

Mr. Sutcliffe said: “As previously advised, while the global environment for metals prices remained strong throughout the quarter, margin was adversely affected by high bulk ocean freight rates, a weak US dollar and intensive buy price competition in most markets.

“Although sales volumes were below budget due to shipping timing, they were in line with the prior corresponding quarter. Bulk ocean freight rates are at all time highs and the ability to adjust buying prices to reflect this has been impaired by the availability of cheap container rates in the same markets. This differential is likely to close over time but, in the short term, the Company is responding by shipping a significant amount of material in containers itself, using new rapid loading equipment, and by increasing its push to secure material at source.

Page 1 of 3

“As is the case for most Australian businesses which are reliant on exports and overseas earnings, the weak US dollar has impacted the result. In the quarter, the average Australian/US exchange rate was 85 cents (compared to 76 cents for the first quarter in fiscal 2007). Compared to the prior corresponding quarter, currency movements had a negative $6 million EBIT impact on translation of overseas earnings in the first quarter and a theoretical negative impact of up to $19 million on the Company’s Australian EBIT, depending on the extent to which currency movements could be used to trigger buy price reductions.

“Competition to secure raw material, driven by overcapacity, remained intense throughout the quarter and continues to be a driver behind the Company’s strategy of industry consolidation.

“Our Sims Recycling Solutions division maintained the strong performance enjoyed in the fourth quarter of fiscal 2007.”

Merger with Metal Management, Inc.

On 30 October, the Company received notification from the US Federal Trade Commission of the early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act, which satisfies one of the conditions to the completion of the Company’s proposed merger with Metal Management, Inc. (MM). Of the outstanding conditions, the most important is the approval of MM’s shareholders at a meeting which is scheduled to occur in early 2008.

Outlook

Market conditions in October remain similar to those towards the end of the first quarter. The Company remains confident that metal prices will stay firm and that higher US dollar C&F ferrous prices can be achieved to offset, in part, the weak US dollar. Bulk ocean freight rates, however, continue to escalate.

The Company’s short term strategy of maximising container shipments will continue in the second quarter. Longer term, the Company’s strategy of securing more material at source and leading industry consolidation, coupled with technological improvements to enhance metallic recoveries, is the best means of maintaining and enhancing margin and returns to shareholders.

Guidance for the first half will be provided at the Company’s Annual General Meeting on 21 November 2007.

Page 2 of 3

Sims Group’s core business is metal recycling, with an emerging business in recycling solutions. Headquartered in Australia, Sims earns around 70 per cent of its revenue from international operations in the United Kingdom, Continental Europe, North America, New Zealand and Asia. Sims has over 3,500 employees, annual turnover of A$5.5 billion and is listed on the Australian Stock Exchange (ASX CODE: SGM)

For further information contact :

Jeremy Sutcliffe Group Chief Executive

or

Stuart Nelson Director, Corporate Services

Sims Group Limited 41 McLaren Street

NORTH SYDNEY NSW 2060

ABN 69 114 838 630 Phone: (02) 9956 9180

Page 3 of 3