SIMS LIMITED — Interim / Quarterly Report 2009

Oct 23, 2008

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ASX & MEDIA RELEASE

(ASX: SGM, NYSE: SMS)

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24 October 2008
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SIMS ANNOUNCES FISCAL 2009 FIRST QUARTER RESULT

Highlights

• Unaudited financial results

• Sales revenue of $3.5 billion up 169% on Q1 FY08

• EBITDA of $285.1 million up 159% on Q1 FY08

• EBIT of $249.2 million up 180% on Q1 FY08

• NPAT of $145.1 million up 175% on Q1 FY08

• Balance sheet well positioned to deal with the challenges and opportunities presented by the global credit crisis with net debt representing 13% of total capital at quarter end

• Determined a final dividend of 75 cents per share (comprising an ordinary dividend of 65 cents per share and a special dividend of 10 cents per share) payable on 27 October 2008

• Metal Management business now fully integrated

• North American strategy progresses with acquisitions of Silver Dollar Recycling (through Sims’ SA Recycling joint venture) and Global Investment Recovery (through Sims Recycling Solutions)

Financial Results to 30 September 2008

Sims Metal Management’s Chief Executive Officer, Mr. Daniel W. Dienst, announced today that the Company’s unaudited NPAT (net profit after tax) for the three months to 30 September 2008 was $145.1 million, up 175% on the prior corresponding period.

Unaudited EBITDA (earnings before interest, tax, depreciation and amortisation) was up 159% on the prior corresponding period to $285.1 million. Unaudited sales revenue was up 169% on the prior corresponding period to $3.5 billion.

The result includes a full contribution in the quarter from the former Metal Management business, which merger happened post the prior corresponding period.

Unaudited NPAT and unaudited EBITDA for the quarter ended 30 September 2008 were down 42% and 32% respectively on the quarter ended 30 June 2008.

Basic earnings per share for the quarter were 80 cents, compared to 42 cents in the prior corresponding period, a more meaningful comparison given the enlarged equity base resulting from the issue of shares to former Metal Management stockholders on completion of the merger.

Mr. Dienst stated: “Entering the second quarter, the global economy has been adversely impacted by the crisis in the financial and credit markets. For the steel and metal markets, what began as a seasonal slowdown and overstocking environment has now been compounded by a worldwide financial crisis perhaps without precedent in our lifetime. The steel and manufacturing complex is experiencing the same threat of illiquidity and demand paralysis as many industries around the world. That being said, we believe that Sims Metal Management’s competitive position will be recognized in these challenging times by our adherence to our prudent and disciplined operating strategy. Ours is not a business built upon financial engineering and we will use our platform, visibility and ample liquidity to manage through these difficult markets. It is a hallmark of Sims Metal Management that we will adapt to business environments – robust or challenging – to deliver the optimum level of performance possible under such conditions.”

North America

For the quarter, unaudited sales revenue was $2.7 billion and unaudited EBIT (earnings before interest and tax)(pre-corporate costs) was $248.3 million (including Sims Recycling Solutions). As the Metal Management merger was completed in the third quarter of the 2008 fiscal year, comparisons with the prior corresponding period are not relevant. Excluding the contribution from the former Metal Management business, however, unaudited EBIT was up 166%.

Sales tonnes during the quarter were 3.3 million.

Mr. Dienst said: “Despite the precipitous decline of commodity prices during the quarter, the North American business put up a strong performance. In addition to the completion of the Metal Management business integration, highlights were the metal recycling acquisitions completed in North America during the quarter. SA Recycling – a joint venture between Sims and Adams Steel operating in Southern California, Arizona and Nevada – acquired a 70% interest in Silver Dollar Recycling, the leading metal recycler in Las Vegas, operating the only shredding facility in that city. Sims Metal Management also purchased the assets of Weinert Recycling, a ferrous and non ferrous scrap metal recycler with operations in Middletown and Liberty, New York.

Mr. Dienst added: “The United States, as the origin of the financial contagion, is certainly not immune from the woes of the global financial crisis and current challenging global business climate. Customers and consumers alike are adjusting their values and levels of raw materials and finished goods inventories against the backdrop of uncertain demand and production prospects.”

Other Regions

Unaudited sales revenue for the combined Australian, Asian and European regions was up 29% to $848.6 million on the prior corresponding period. Unaudited EBIT (pre-corporate costs) was $14.6 million, down 68% on the prior corresponding period.

Sales tonnes for the combined regions during the quarter were approximately 872,000.

Mr. Jeremy Sutcliffe, Executive Director, said: “Our Australian and New Zealand operations delivered a solid result for the quarter, which was in line with the prior corresponding period. The performance of our European metal recycling operation was, however, adversely affected by inventory value adjustments which resulted in an EBIT loss for the quarter.

“Sims Recycling Solutions (“SRS”) made positive contributions in both Europe and North America and the SRS business strategy remains on track.

“The SRS business continued to expand in North America with the acquisition of Global Investment Recovery Inc., a leading US e-scrap recycler and asset recovery specialist based in Tampa, Florida, announced on 7 October 2008. The acquisition will increase our North American electronics recycling and asset recovery market presence by approximately 40%, consolidating our market leading position.”

Markets & Outlook

Trading conditions in both ferrous and non ferrous markets remain extremely difficult and short term trends in those markets are equally difficult to predict. Consequently, margins and volumes are likely to be significantly affected in the second quarter. Despite the recording of significant inventory write-downs of approximately $70 million in consideration of lower of cost or market assessments made in the first fiscal quarter just ended, additional provisions could be required should consumers and/or counterparties fail to perform on sales contracts. Accordingly, it is not possible to provide guidance on the Company’s second quarter performance at this time. At the Company’s 2008 Annual General Meeting to be held in Sydney on 21 November 2008 and if

visibility is available, an update on the market and the outlook will be provided. The rapid and significant reduction of ocean freight rates and the depreciation of the Australian dollar against the US dollar and the British pound should, however, have a positive impact.

Mr Dienst concluded: “As we have said on many occasions, Sims Metal Management’s competitive advantage is its extraordinary people. Coupled with a strong balance sheet, unrivalled geographic reach and product diversity, we are optimistic that we will execute on our goal of capitalizing on market opportunities when they present themselves and emerging from this adverse point in the cycle stronger than when we entered it.”

Cautionary Statements Regarding Forward-Looking Information

This release may contain forward-looking statements, including statements about Sims’ financial condition, results of operations, earnings outlook and prospects. Forward-looking statements are typically identified by words such as “plan,” “believe,” “expect,” “anticipate,” “intend,” “outlook,” “estimate,” “forecast,” “project” and other similar words and expressions.

These forward-looking statements involve certain risks and uncertainties. Our ability to predict results or the actual effects of our plans and strategies is subject to inherent uncertainty. Factors that may cause actual results or earnings to differ materially from these forward-looking statements include those discussed and identified in filings we make with the Australian Securities Exchange and the United States Securities and Exchange Commission, including the risk factors described in the Registration Statement on Form F-4 we filed with the United States Securities and Exchange Commission on 8 February 2008.

Because these forward-looking statements are subject to assumptions and uncertainties, actual results may differ materially from those expressed or implied by these forward-looking statements. You are cautioned not to place undue reliance on these statements, which speak only as of the date of this release.

All subsequent written and oral forward-looking statements concerning the matters addressed in this release and attributable to us or any person acting on our behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in this release. Except to the extent required by applicable law or regulation, we undertake no obligation to update these forward-looking statements to reflect events or circumstances after the date of this release.

All references to currencies reflect measures in Australian dollars.

About Sims Metal Management

Sims Metal Management (www.simsmm.com) is the world’s largest listed metal recycler with over 230 operations globally. Sims’ core businesses are metal recycling and recycling solutions. Sims earns around 80 per cent of its revenue from international operations in North America, the United Kingdom, Continental Europe, New Zealand and Asia. Sims has over 6,000 employees, an annualised turnover of over $10 billion in fiscal 2008 on a pro forma basis and has its ordinary shares listed on the Australian Stock Exchange (ASX CODE: SGM) and its ADRs listed on the New York Stock Exchange (NYSE SYMBOL: SMS).

For further information contact in North America

Dan Dienst Rob Larry Group Chief Executive or Chief Financial Officer Tel: 212 750 7189 Tel: 312 644 8205

For further information contact in Australia

Jeremy Sutcliffe Chairman, Europe & Australia or Executive Director Tel: 02 9956 9100

Stuart Nelson Director, Corporate Services Tel: 02 9956 9100