Founded in 1954, Olympic Steel is a leading U.S. steel service center focused on the direct sale and distribution of large volumes of processed carbon, coated and stainless flat-rolled sheet, coil and plate steel products. Headquartered in Cleveland, Ohio, the Company operates 15 facilities. For further information, visit the Company's web site at http://www.olysteel.com.

Forward-looking statements in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are typically identified by words or phrases such as "may," "will," "should," "expect," "anticipate," "intend," "plan," "believe," "estimate," "potential," or "continue," as well as the negative of these terms or other similar expressions. Such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. Readers are cautioned not to place undue reliance on these forward-looking statements.

Such risks and uncertainties include, but are not limited to: the timely and successful completion of the acquisition of the Dover processing facility; the timely and successful installation of processing equipment, cost overruns and the availability of labor and adequate customer demand to support the Dover processing facility; general and global business, economic and political conditions; competitive factors such as the availability and pricing of steel, industry inventory levels, and rapid fluctuations in customer demand and pricing; the cyclicality and volatility within the steel industry; the ability of customers (especially those that may be highly leveraged or in the automotive industry) to maintain their credit availability; layoffs or work stoppages by the Company's, suppliers' or customers' personnel; the availability and cost of transportation and logistical services; equipment installation delays or malfunctions; and the successes of the Company's capital investments, efforts and initiatives to increase sales volumes, maintain cash turnover, maintain or improve inventory turnover, reduce costs, and improve customer service. Further information on these and other risks and uncertainties is provided under Item 1A "Risk Factors" of the Company's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, which disclosure is incorporated herein by reference, and elsewhere in reports that the Company files or furnishes with the SEC. This release speaks only as of its date and the Company undertakes no obligation to publicly update forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent required by law. You are advised, however, to consult any further disclosures the Company makes on related subjects in its reports filed with or furnished to the SEC.

SOURCE: Olympic Steel, Inc.

Olympic Steel, Inc.
Richard T. Marabito, 216-292-3800
Chief Financial Officer
Fax: 216-292-3974

Olympic Steel, Inc. (ZEUS) distributes processed carbon, coated and stainless flat-rolled sheet, and coil and plate steel products in the United States.

ZEUS, a Zacks #1 Rank (Strong Buy), operates as an intermediary between steel producers and manufacturers that require processed steel for their operations. ZEUS operates 16 facilities across North America, predominantly in the Midwest.

Olympic Steel Reports a Record Second Quarter

On July 31, Olympic Steel reported record second quarter earnings that beat Wall Street estimates by $1.00 per share. Net income was $29.6 million, or $2.70 per share, compared to $9.4 million, or 88 cents per share, a year ago. Analysts expected only $1.70 per share.

Sales jumped 31% to $363.5 million from $277.4 million in the second quarter of 2007. Sales were hot for the entire first half of the year, rising 18.9% compared to the first half of 2007.

Volumes rose, as tons sold increased 5.1% to 353 thousand from 336 thousand in the year ago period.

Outlook Is Cautious

Despite the record second quarter, the company was cautiously optimistic.

ZEUS said its outlook remained favorable. The company stated it was positioned to perform well through the seasonally slow third quarter sales period.

ZEUS to Pay $1 Per Share Special Dividend

On July 31, Olympic Steel announced it will pay a $1 special dividend payable on Sep 15 to shareholders of record as of Sep 1.

The company also raised its regular quarterly dividend by 1 cent to 5 cents per share from 4 cents. It is also payable on Sep 15 to shareholders of record on Sep 1.

'Given the company's strong balance sheet and cash flows, its ongoing increased capital spending initiatives, and the company's commitment to growth, it was deemed appropriate to reward shareholders at this time,' said CEO Michael D. Siegal.

Estimates Rise Sharply for the Third Quarter and Full Year

Responding to the record second quarter, covering analysts have been raising estimates for the third quarter and the full year. For the third quarter, estimates jumped 26 cents to $1.68 from $1.42 per share in the last month.

For the full year, estimates climbed 14.7% in the last 30 days to $6.18 from $5.39 per share.

Value Fundamentals

Olympic Steel continues to have strong fundamentals. It currently trades at only 8.8x forward earnings. Its price-to-book (P/B) is 1.70, under the industry average of 1.98. The company has a solid five year average return on equity (ROE) of 16.55%.

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Net sales for the first half of 2008 increased 18.9% to $638.4 million, compared to last year's first half net sales of $536.8 million. Net income for the first half of 2008 totaled $42.8 million or $3.93 per diluted share, compared to $14.7 million, or $1.37 per diluted share for last year's first half. Tons sold in the first half increased 3.3% to 669 thousand from 648 thousand in the first half of 2007, compared to the Metals Service Center Institute statistics of a 3.8% decline in total steel shipments in the United States for the first half of 2008.

Olympic Steel's Board of Directors approved an increase of $.01 per share on its regular quarterly cash dividend to $.05 per share. The Board of Directors also approved a special non-recurring dividend of $1.00 per share. Both dividends are for shareholders of record on September 1, 2008, and payable on September 15, 2008.

"The dividends were approved as a result of the Company's extraordinary performance during the first half of 2008. Given the Company's strong balance sheet and cash flows, its on-going increased capital spending initiatives, and the Company's commitment to growth, it was deemed appropriate to reward shareholders at this time," stated Chairman and Chief Executive Officer Michael D. Siegal.

Mr. Siegal continued, "We are pleased that our efforts are gaining market share as we are moving closer to our customers both in business alignment and physical presence. Given the uncertainty surrounding the general economic environment, our outlook remains favorable, yet cautious. We believe we are appropriately positioned in terms of inventory, value-add processing capabilities, and liquidity to continue performing well through the seasonally slower sales period of the third quarter," concluded Mr. Siegal.

A simulcast of Olympic Steel's 2008 second quarter earnings conference call may be accessed via the Investor Relations section of the Company's website at www.olysteel.com. The simulcast will begin at 10:00 a.m. Eastern Time today and a replay of the call will be available for 14 days thereafter.

Founded in 1954, Olympic Steel is a leading U.S. steel service center focused on the direct sale and distribution of large volumes of processed carbon, coated and stainless flat-rolled sheet, coil and plate steel products. Headquartered in Cleveland, Ohio, the Company operates 16 facilities. For further information, visit the Company's web site at http://www.olysteel.com.

It is the Company's policy not to endorse any analyst's sales or earnings estimates. Forward-looking statements in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are typically identified by words or phrases such as "may," "will," "should," "expect," "anticipate," "intend," "plan," "believe," "estimate," "potential," or "continue," as well as the negative of these terms or other similar expressions. Such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. Readers are cautioned not to place undue reliance on these forward-looking statements. Such risks and uncertainties include, but are not limited to: general and global business, economic and political conditions; competitive factors such as the availability and pricing of steel, industry inventory levels, and rapid fluctuations in customer demand and steel pricing; the cyclicality and volatility within the steel industry; the ability of customers (especially those that may be highly leveraged, those in the domestic automotive industry and those with inadequate liquidity) to maintain their credit availability; customer, supplier, and competitor consolidation, bankruptcy or insolvency; layoffs or work stoppages by the Company's, suppliers' or customers' personnel; the availability and cost of transportation and logistical services; equipment installation delays or malfunctions; the amounts, timing and successes of the Company's capital investments, including the construction of a new facility in South Carolina and the acquisition and start-up of a new facility in Dover, Ohio; the successes of our strategic efforts and initiatives to increase sales volumes, maintain cash turnover, maintain or improve inventory turnover, reduce costs and improve customer service; the timing and outcome of OLP's efforts and ability to liquidate its remaining assets; the adequacy of our existing information technology and business system software and the success of implementing our new enterprise-wide information system; and the Company's ability to pay regular quarterly cash dividends. Further information on these and other risks and uncertainties is provided under Item 1A "Risk Factors" of the Company's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, which disclosure is incorporated herein by reference, and elsewhere in reports that the Company files or furnishes with the SEC. This release speaks only as of its date and the Company undertakes no obligation to publicly update forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent required by law. You are advised, however, to consult any further disclosures the Company makes on related subjects in its reports filed with or furnished to the SEC.

                            OLYMPIC STEEL
                    SELECTED FINANCIAL INFORMATION

           (in thousands, except per share data and ratios)

                             Three Months Ended    Six Months Ended
                                  June 30,             June 30,
                             ------------------- ---------------------
                               2008      2007        2007       2006
                             --------- --------- ------------ --------
SUMMARY RESULTS OF               (unaudited)          (unaudited)
 OPERATIONS:
----------------------------

Net sales                    $ 363,514 $ 277,413 $    638,389 $536,818

Operating income                47,329    15,871       68,556   25,281

Income before income taxes      47,169    15,018       68,369   23,401
                             --------- --------- ------------ --------

Net income                   $  29,598 $   9,446 $     42,759 $ 14,698
                             ========= ========= ============ ========

Earnings per share:

   Net income per share -
    basic                    $    2.73 $    0.89 $       3.95 $   1.40

   Net income per share -
    diluted                  $    2.70 $    0.88 $       3.93 $   1.37

                                  June 30,       December 31,
                             -------------------
                               2008      2007        2007
                             --------- --------- ------------
SUMMARY BALANCE SHEET DATA:      (unaudited)
----------------------------

Accounts receivable, net     $ 135,706 $ 120,600 $     88,414

Inventories                    237,237   197,021      178,530

Net property and equipment      98,753    88,516       89,651

Total assets                   493,098   437,416      386,083

Current liabilities            136,452   108,438       92,290

Total debt                      32,023    64,296       16,707

Shareholders' equity           309,125   253,118      263,520

Shareholders' equity per
 share                           28.46     23.65        24.56

Debt-to-equity ratio          .10 to 1  .25 to 1     .06 to 1

                              Six Months Ended
                                  June 30,
                             -------------------
                               2008      2007
                             --------- ---------
OTHER DATA:                      (unaudited)
----------------------------

Capital expenditures            13,975     5,509

Cash dividends per share     $    0.08 $    0.06

                            OLYMPIC STEEL
                        RESULTS OF OPERATIONS

          (in thousands, except per share and tonnage data)


                                       Three Months Ended June 30,
                                     --------------------------------
                                          2008             2007
                                     --------------- ----------------
                                               (unaudited)

Tons sold
   Direct                             320,076         296,849
   Toll                                33,338          39,276
                                     ---------       ----------

                                      353,414         336,125
  % change                                5.1%           (1.9%)

Net sales                            $363,514        $277,413
  % change                               31.0%            8.3%



Costs and expenses

   Cost of materials sold (exclusive
    of depreciation shown below)      260,581  71.7%  221,729   79.9%
   Warehouse and processing            17,651   4.9%   14,272    5.1%
   Administrative and general          19,242   5.3%   11,271    4.1%
   Distribution                         8,634   2.4%    6,464    2.3%
   Selling                              5,899   1.6%    4,185    1.5%
   Occupancy                            1,862   0.5%    1,451    0.5%
   Depreciation                         2,316   0.6%    2,170    0.8%
                                     ---------       ----------

      Total costs and expenses        316,185  87.0%  261,542   94.3%
                                     ---------       ----------

   Operating income                    47,329  13.0%   15,871    5.7%

Interest and other expense on debt        160   0.0%      853    0.3%
                                     ---------       ----------

   Income before income taxes          47,169  13.0%   15,018    5.4%

Income tax provision                   17,571  37.3%    5,572   37.1%
                                     ---------       ----------

Net income                           $ 29,598        $  9,446
                                     =========       ==========

Earnings per share:

   Net income per share - basic      $   2.73        $   0.89
                                     =========       ==========

   Weighted average shares
    outstanding - basic                10,857          10,603
                                     =========       ==========

   Net income per share - diluted    $   2.70        $   0.88
                                     =========       ==========

   Weighted average shares
    outstanding - diluted              10,946          10,753
                                     =========       ==========

                                         Six Months Ended June 30,
                                      --------------------------------
                                           2008             2007
                                      --------------- ----------------
                                                (unaudited)

Tons sold
   Direct                              600,079         570,175
   Toll                                 68,759          77,539
                                      ---------       ----------

                                       668,838         647,714
  % change                                 3.3%           (4.9%)

Net sales                             $638,389        $536,818
  % change                                18.9%            8.4%



Costs and expenses

   Cost of materials sold (exclusive
    of depreciation shown below)       469,188  73.5%  433,760   80.8%
   Warehouse and processing             33,415   5.2%   27,947    5.2%
   Administrative and general           32,351   5.1%   21,535    4.0%
   Distribution                         15,676   2.5%   12,773    2.4%
   Selling                              10,789   1.7%    7,966    1.5%
   Occupancy                             3,814   0.6%    3,204    0.6%
   Depreciation                          4,600   0.7%    4,352    0.8%
                                      ---------       ----------

      Total costs and expenses         569,833  89.3%  511,537   95.3%
                                      ---------       ----------

   Operating income                     68,556  10.7%   25,281    4.7%

Interest and other expense on debt         187   0.0%    1,880    0.4%
                                      ---------       ----------

   Income before income taxes           68,369  10.7%   23,401    4.4%

Income tax provision                    25,610  37.5%    8,703   37.2%
                                      ---------       ----------

Net income                            $ 42,759        $ 14,698
                                      =========       ==========

Earnings per share:

   Net income per share - basic       $   3.95        $   1.40
                                      =========       ==========

   Weighted average shares
    outstanding - basic                 10,814          10,527
                                      =========       ==========

   Net income per share - diluted     $   3.93        $   1.37
                                      =========       ==========

   Weighted average shares
    outstanding - diluted               10,894          10,716
                                      =========       ==========





 It is the Company's policy not to make quarterly or annual sales or
     earnings projections for external use and not to endorse any
                analyst's sales or earnings estimates.

SOURCE: Olympic Steel, Inc.

Olympic Steel, Inc.
Richard T. Marabito, 216-292-3800
Chief Financial Officer
Fax: 216-292-3974

Schedule this webcast into MS-Outlook calendar (click open when prompted):http://apps.shareholder.com/PNWOutlook/t.aspx?m=32288&k=6B61215E

Founded in 1954, Olympic Steel is a leading U.S. steel service center focused on the direct sale and distribution of large volumes of processed carbon, coated and stainless flat-rolled sheet, coil and plate steel products. Headquartered in Cleveland, Ohio, the Company operates 16 facilities. For further information, visit the Company's web site at http://www.olysteel.com.

The Olympic Steel, Inc. logo is available at http://www.primenewswire.com/newsroom/prs/?pkgid=3582

It is the Company's policy not to endorse any analyst's sales or earnings estimates. Forward-looking statements in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are typically identified by words or phrases such as "may," "will," "should," "expect," "anticipate," "intend," "plan," "believe," "estimate," "potential," or "continue," as well as the negative of these terms or other similar expressions. Such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. Readers are cautioned not to place undue reliance on these forward-looking statements.

Such risks and uncertainties include, but are not limited to: general and global business, economic and political conditions; competitive factors such as the availability and pricing of steel, industry inventory levels, and rapid fluctuations in customer demand and pricing; the cyclicality and volatility within the steel industry; the ability of customers (especially those that may be highly leveraged or in the automotive industry) to maintain their credit availability; layoffs or work stoppages by the Company's, suppliers' or customers' personnel; the availability and cost of transportation and logistical services; equipment installation delays or malfunctions; the successes of the Company's capital investments, efforts and initiatives to increase sales volumes, maintain cash turnover, maintain or improve inventory turnover, reduce costs, and improve customer service; the timing and outcome of efforts and ability to liquidate OLP's remaining assets; the adequacy of our existing information technology and business system software and the success of implementing our new information system; customer, supplier, and competitor consolidation or insolvency; and the Company's ability to pay regular quarterly cash dividends. Further information on these and other risks and uncertainties is provided under Item 1A "Risk Factors" of the Company's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, which disclosure is incorporated herein by reference, and elsewhere in reports that the Company files or furnishes with the SEC. This release speaks only as of its date and the Company undertakes no obligation to publicly update forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent required by law. You are advised, however, to consult any further disclosures the Company makes on related subjects in its reports filed with or furnished to the SEC.

This news release was distributed by PrimeNewswire, www.primenewswire.com

SOURCE: Shareholder.com; Olympic Steel, Inc.

Olympic Steel, Inc.
          Jill A. Lettl (External Communication Specialist)
          216-682-4036
          jlettl@olysteel.com