EXHIBIT 99.1

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

Shareholders and Board of Directors
Reliance Steel & Aluminum Co.

     We have audited the accompanying consolidated balance sheets of Reliance Steel & Aluminum Co. and subsidiaries as of December 31, 2005 and 2004, and the related consolidated statements of income, shareholders’ equity and cash flows for each of the three years in the period ended December 31, 2005. Our audits also included the financial statement schedule listed in the Index at Item 15(a). These financial statements and schedule are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements and schedule based on our audits.

     We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

     In our opinion, the financial statements referred to above present fairly, in all material respects, the consolidated financial position of Reliance Steel & Aluminum Co. and subsidiaries at December 31, 2005 and 2004, and the consolidated results of their operations and their cash flows for each of the three years in the period ended December 31, 2005, in conformity with U.S. generally accepted accounting principles. Also, in our opinion, the related financial statement schedule, when considered in relation to the basic financial statements taken as a whole, presents fairly in all material respects the information set forth therein.

     We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the effectiveness of Reliance Steel & Aluminum Co.’s internal control over financial reporting as of December 31, 2005, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated March 10, 2006 expressed an unqualified opinion thereon.

/s/ ERNST & YOUNG LLP

Los Angeles, California
March 10, 2006, except for Note 14, as to which
the date is December 29, 2006

Note 14.		Condensed Consolidating Financial Statements

     In November 2006, the Company issued senior unsecured notes for an aggregate principal amount of $600 million at fixed interest rates that are guaranteed by certain of its wholly owned domestic subsidiaries. The accompanying combined and consolidating financial information has been prepared and presented pursuant to Rule 3-10 of SEC Regulation S-X “Financial Statements of Guarantors and Issuers of Guaranteed Securities Registered or being Registered.” The guarantees are full and unconditional and joint and several obligations of each of the guarantor subsidiaries. There are no significant restrictions on the ability of the Company to obtain funds from any of the guarantor subsidiaries by dividends or loan. The supplemental consolidating financial information has been presented in lieu of separate financial statements of the guarantors as such separate financial statements are not considered meaningful.

     Consolidating financial information related to the Company, its guarantor subsidiaries and non-guarantor subsidiaries as of December 31, 2005, and 2004 and for each of the three years in the period ended December 31, 2005 is shown below:

Condensed Consolidating Balance Sheet
As of December 31, 2005
(amounts in thousands)

										Non-
						Guarantor				Guarantor
		Parent				Subsidiaries				Subsidiaries				Eliminations				Consolidated
Assets
Cash and cash equivalents		$	(7,912	)		$	35,717			$	7,217			$	—			$	35,022
Accounts receivable, less allowance for doubtful accounts			70,533				288,372				12,640				(1,614	)			369,931
Inventories			58,659				304,318				24,408				—				387,385
Prepaid expenses and other current assets			110				15,659				3,240				—				19,009
Deferred income taxes			—				35,868				133				—				36,001
Total current assets			121,390				679,934				47,638				(1,614	)			847,348
Investments in subsidiaries			571,358				989,050				—				(1,560,408	)			—
Property, plant and equipment, net			66,692				403,405				9,622				—				479,719
Goodwill			12,437				372,293				—				—				384,730
Intangible assets, net			906				43,442				36				—				44,384
Intercompany receivables			212,919				—				—				(212,919	)			—
Other assets			552				12,653				148				(464	)			12,889
Total assets		$	986,254			$	2,500,777			$	57,444			$	(1,775,405	)		$	1,769,070
Liabilities & Shareholders’ Equity
Accounts payable		$	35,241			$	146,322			$	4,494			$	(1,614	)		$	184,443
Accrued compensation and retirement costs			8,418				42,023				1,913				—				52,354
Other current liabilities			6,310				38,657				1,994				—				46,961
Current maturities of long-term debt			49,200				325				—				—				49,525
Current maturities of capital lease obligations			—				536				—				—				536
Total current liabilities			99,169				227,863				8,401				(1,614	)			333,819
Long-term debt			300,050				1,225				—				—				301,275
Intercompany borrowings			—				190,264				22,655				(212,919	)			—
Deferred taxes and other long-term liabilities			—				104,125				604				(618	)			104,111
Total shareholders’ equity			587,035				1,977,300				25,784				(1,560,254	)			1,029,865
Total liabilities and shareholders’ equity		$	986,254			$	2,500,777			$	57,444			$	(1,775,405	)		$	1,769,070

Condensed Consolidating Balance Sheet
As of December 31, 2004
(amounts in thousands)

										Non-
						Guarantor				Guarantor
		Parent				Subsidiaries				Subsidiaries				Eliminations				Consolidated
Assets
Cash and cash equivalents		$	(10,638	)		$	21,084			$	1,213			$	—			$	11,659
Accounts receivable, less allowance for doubtful accounts			73,114				247,953				10,463				(1,539	)			329,991
Inventories			73,988				256,922				18,869				—				349,779
Prepaid expenses and other current assets			171				11,749				5,296				—				17,216
Deferred income taxes			—				24,584				—				—				24,584
Total current assets			136,635				562,292				35,841				(1,539	)			733,229
Investments in subsidiaries			570,159				877,388				—				(1,447,547	)			—
Property, plant and equipment, net			67,181				382,792				8,840				—				458,813
Goodwill			12,436				329,344				—				—				341,780
Intangible assets, net			1,245				15,368				60				—				16,673
Intercompany receivables			196,027				—				—				(196,027	)			—
Other assets			45				12,721				70				—				12,836
Total assets		$	983,728			$	2,179,905			$	44,811			$	(1,645,113	)		$	1,563,331
Liabilities & Shareholders’ Equity
Accounts payable		$	28,301			$	110,700			$	4,840			$	(1,539	)		$	142,302
Accrued compensation and retirement costs			7,628				40,702				1,629				—				49,959
Other current liabilities			8,238				26,716				1,063				—				36,017
Current maturities of long-term debt			46,150				250				—				—				46,400
Total current liabilities			90,317				178,368				7,532				(1,539	)			274,678
Long-term debt			349,300				31,550				—				—				380,850
Intercompany borrowings			—				175,118				20,909				(196,027	)			—
Deferred taxes and other long-term liabilities			—				85,274				518				(541	)			85,251
Total shareholders’ equity			544,111				1,709,595				15,852				(1,447,006	)			822,552
Total liabilities and shareholders’ equity		$	983,728			$	2,179,905			$	44,811			$	(1,645,113	)		$	1,563,331

Condensed Consolidating Statement of Income
For the year ended December 31, 2005
(amounts in thousands)

						Guarantor				Non-Guarantor
		Parent				Subsidiaries				Subsidiaries				Eliminations				Consolidated
Net sales		$	736,804			$	2,571,386			$	77,385			$	(18,524	)		$	3,367,051
Other income, net			435				12,625				(18	)			(9,371	)			3,671
			737,239				2,584,011				77,367				(27,895	)			3,370,722
Costs and expenses:
Cost of sales (exclusive of depreciation and amortization shown below)			538,970				1,874,035				54,601				(18,606	)			2,449,000
Warehouse, delivery, selling, general and administrative			112,820				384,945				13,862				(3,722	)			507,905
Depreciation and amortization			6,924				39,157				550				—				46,631
Interest			26,513				3,924				352				(5,567	)			25,222
			685,227				2,302,061				69,365				(27,895	)			3,028,758
Income before minority interest and income taxes			52,012				281,950				8,002				—				341,964
Minority interest			—				(8,666	)			(86	)			—				(8,752	)
Equity in earnings of subsidiaries			171,196				2,128				—				(173,324	)			—
Income from continuing operations before income taxes			223,208				275,412				7,916				(173,324	)			333,212
Provision for income taxes			19,900				105,650				2,225				—				127,775
Net income		$	203,308			$	169,762			$	5,691			$	(173,324	)		$	205,437

Condensed Consolidating Statement of Income
For the year ended December 31, 2004
(amounts in thousands)

						Guarantor				Non-Guarantor
		Parent				Subsidiaries				Subsidiaries				Eliminations				Consolidated
Net sales		$	711,020			$	2,190,330			$	57,305			$	(15,621	)		$	2,943,034
Other income, net			1,141				13,795				741				(11,509	)			4,168
			712,161				2,204,125				58,046				(27,130	)			2,947,202
Costs and expenses:
Cost of sales (exclusive of depreciation and amortization shown below)			514,534				1,572,436				39,581				(15,703	)			2,110,848
Warehouse, delivery, selling, general and administrative			115,039				362,699				11,697				(5,548	)			483,887
Depreciation and amortization			7,280				36,731				616				—				44,627
Interest			26,869				7,318				382				(5,879	)			28,690
			663,722				1,979,184				52,276				(27,130	)			2,668,052
Income before minority interest and income taxes			48,439				224,941				5,770				—				279,150
Minority interest			—				(8,193	)			(989	)			—				(9,182	)
Equity in earnings of subsidiaries			139,988				(728	)			—				(139,260	)			—
Income from continuing operations before income taxes			188,427				216,020				4,781				(139,260	)			269,968
Provision for income taxes			17,971				80,032				2,237				—				100,240
Net income		$	170,456			$	135,988			$	2,544			$	(139,260	)		$	169,728

Condensed Consolidating Statement of Income
For the year ended December 31, 2003
(amounts in thousands)

						Guarantor				Non-Guarantor
		Parent				Subsidiaries				Subsidiaries				Eliminations				Consolidated
Net sales		$	488,411			$	1,378,929			$	26,896			$	(11,303	)		$	1,882,933
Other income, net			1,044				9,952				160				(8,319	)			2,837
			489,455				1,388,881				27,056				(19,622	)			1,885,770
Costs and expenses:
Cost of sales (exclusive of depreciation and amortization shown below)			357,680				1,005,136				20,977				(11,483	)			1,372,310
Warehouse, delivery, selling, general and administrative			98,175				293,579				7,930				(3,757	)			395,927
Depreciation and amortization			7,849				27,493				1,528				—				36,870
Interest			24,520				6,118				489				(4,382	)			26,745
			488,224				1,332,326				30,924				(19,622	)			1,831,852
Income before minority interest and income taxes			1,231				56,555				(3,868	)			—				53,918
Minority interest			—				1,394				(456	)			—				938
Equity in earnings of subsidiaries			33,715				(466	)			—				(33,249	)			—
Income from continuing operations before income taxes			34,946				57,483				(4,324	)			(33,249	)			54,856
Provision for income taxes			467				22,113				(1,734	)			—				20,846
Net income		$	34,479			$	35,370			$	(2,590	)		$	(33,249	)		$	34,010

Condensed Consolidating Cash Flow Statement
For the year ended December 31, 2005
(amounts in thousands)

										Non-
						Guarantor				Guarantor
		Parent				Subsidiaries				Subsidiaries				Eliminations				Consolidated
Cash Flows from operating activities:
Net income (loss)		$	203,308			$	169,763			$	5,690			$	(173,324	)		$	205,437
Equity in earnings of subsidiaries			(171,196	)			(2,128	)			—				173,324				—
Adjustments to reconcile net income to cash provided by (used in) operating activities			141,458				(75,778	)			1,102				—				66,782
Cash provided by (used in) operating activities			173,570				91,857				6,792				—				272,219
Cash Flows from investing activities:
Purchases of property, plant and equipment, net			(6,229	)			(45,058	)			(2,453	)			—				(53,740	)
Acquisitions of metals service centers and net asset purchases of metals service centers, net of cash acquired			(94,377	)			—				—				—				(94,377	)
Intercompany loan repayments (advances), net			(16,892	)			—				—				16,892				—
Other investing activities, net			1,485				—				—				—				1,485
Cash provided by (used in) investing activities			(116,013	)			(45,058	)			(2,453	)			16,892				(146,632	)
Cash Flows from financing activities:
Net borrowings (repayments) of long-term debt			(46,200	)			(47,311	)			—				—				(93,511	)
Dividends paid			(12,530	)			—				—				—				(12,530	)
Intercompany borrowings (repayments)			—				15,145				1,747				(16,892	)			—
Other financing activities			3,898				—				—				—				3,898
Cash provided by (used in) financing activities			(54,832	)			(32,166	)			1,747				(16,892	)			(102,143	)
Effect of exchange rate changes on cash and cash equivalents			—				—				(81	)			—				(81	)
Increase (decrease) in cash and cash equivalents			2,725				14,633				6,005				—				23,363
Cash and cash equivalents at beginning of period			(10,637	)			21,083				1,213				—				11,659
Cash and cash equivalents at end of period		$	(7,912	)		$	35,716			$	7,218			$	—			$	35,022

Condensed Consolidating Cash Flow Statement
For the year ended December 31, 2004
(amounts in thousands)

										Non-
						Guarantor				Guarantor
		Parent				Subsidiaries				Subsidiaries				Eliminations				Consolidated
Cash Flows from operating activities:
Net income (loss)		$	170,457			$	135,987			$	2,544			$	(139,260	)		$	169,728
Equity in earnings of subsidiaries			(139,988	)			728				—				139,260				—
Adjustments to reconcile net income to cash provided by (used in) operating activities			(4,130	)			(39,547	)			(4,283	)			—				(47,960	)
Cash provided by (used in) operating activities			26,339				97,168				(1,739	)			—				121,768
Cash Flows from investing activities:
Purchases of property, plant and equipment, net			(4,496	)			(30,040	)			(1,446	)			—				(35,982	)
Tax reimbursements made related to prior acquisition			(16,475	)			—				—				—				(16,475	)
Intercompany loan repayments (advances), net			5,441				—				—				(5,441	)			—
Other investing activities, net			2,808				—				—				—				2,808
Cash provided by (used in) investing activities			(12,722	)			(30,040	)			(1,446	)			(5,441	)			(49,649	)
Cash Flows from financing activities:
Net borrowings (repayments) of long-term debt			(22,150	)			(42,250	)			—				—				(64,400	)
Dividends paid			(8,448	)			—				—				—				(8,448	)
Intercompany borrowings (repayments)			—				(6,717	)			1,276				5,441				—
Other financing activities			8,657				—				—				—				8,657
Cash provided by (used in) financing activities			(21,941	)			(48,967	)			1,276				5,441				(64,191	)
Effect of exchange rate changes on cash and cash equivalents			—				—				1,565				—				1,565
Increase (decrease) in cash and cash equivalents			(8,324	)			18,161				(344	)			—				9,493
Cash and cash equivalents at beginning of period			(2,313	)			2,922				1,557				—				2,166
Cash and cash equivalents at end of period		$	(10,637	)		$	21,083			$	1,213			$	—			$	11,659

Condensed Consolidating Cash Flow Statement
For the year ended December 31, 2003
(amounts in thousands)

										Non-
						Guarantor				Guarantor
		Parent				Subsidiaries				Subsidiaries				Eliminations				Consolidated
Cash Flows from operating activities:
Net income (loss)		$	34,477			$	35,372			$	(2,590	)		$	(33,249	)		$	34,010
Equity in earnings of subsidiaries			(33,715	)			466				—				33,249				—
Adjustments to reconcile net income to cash provided by (used in) operating activities			255,931				(184,428	)			2,307				—				73,810
Cash provided by (used in) operating activities			256,693				(148,590	)			(283	)			—				107,820
Cash Flows from investing activities:
Purchases of property, plant and equipment, net			(2,290	)			(17,292	)			(1,327	)			—				(20,909	)
Acquisitions of metals service centers and net asset purchases of metals service centers, net of cash acquired			(245,850	)			—				—				—				(245,850	)
Intercompany loan repayments (advances), net			(147,238	)			—				—				147,238				—
Other investing activities, net			3,020				—				—				—				3,020
Cash provided by (used in) investing activities			(392,358	)			(17,292	)			(1,327	)			147,238				(263,739	)
Cash Flows from financing activities:
Net borrowings (repayments) of long-term debt			134,850				12,395				—				—				147,245
Dividends paid			(7,643	)			—				—				—				(7,643	)
Intercompany borrowings (repayments)			—				145,651				1,587				(147,238	)			—
Other financing activities			8,706				—				—				—				8,706
Cash provided by (used in) financing activities			135,913				158,046				1,587				(147,238	)			148,308
Effect of exchange rate changes on cash and cash equivalents			—				—				472				—				472
Increase (decrease) in cash and cash equivalents			248				(7,836	)			449				—				(7,139	)
Cash and cash equivalents at beginning of period			(2,561	)			10,759				1,107				—				9,305
Cash and cash equivalents at end of period		$	(2,313	)		$	2,923			$	1,556			$	—			$	2,166

     Unaudited consolidating financial information related to the Company, its guarantor subsidiaries and non-guarantor subsidiaries as of September 30, 2006 and for the three and nine-month periods ended September 30, 2006 and 2005, respectively, is reflected below.

Unaudited Condensed Consolidating Balance Sheet
As of September 30, 2006
(amounts in thousands)

										Non-
						Guarantor				Guarantor
		Parent				Subsidiaries				Subsidiaries				Eliminations				Consolidated
Assets
Cash and cash equivalents		$	(17,448	)		$	27,695			$	11,794			$	—			$	22,041
Accounts receivable, less allowance for doubtful accounts			96,243				616,694				36,954				(3,941	)			745,950
Inventories			116,178				829,670				41,657				—				987,505
Prepaid expenses and other current assets			—				18,885				726				—				19,611
Deferred income taxes			—				35,482				142				—				35,624
Total current assets			194,973				1,528,426				91,273				(3,941	)			1,810,731
Investments in subsidiaries			590,191				1,986,657				—				(2,576,848	)			—
Property, plant and equipment, net			88,065				632,954				15,161				—				736,180
Goodwill			15,328				741,633				2,704				—				759,665
Intangible assets, net			1,120				350,513				26				—				351,659
Intercompany receivables			504,925				—				—				(504,925	)			—
Other assets			526				72,777				1,611				(464	)			74,450
Total assets		$	1,395,128			$	5,312,960			$	110,775			$	(3,086,178	)		$	3,732,685
Liabilities & Shareholders’ Equity
Accounts payable		$	47,792			$	302,446			$	31,439			$	(3,941	)		$	377,736
Accrued compensation and retirement costs			4,958				74,150				3,301				—				82,409
Other current liabilities			15,110				89,745				3,275				—				108,130
Current maturities of long-term debt			44,200				51,040				1,118				—				96,358
Current maturities of capital lease obligations			—				553				—				—				553
Total current liabilities			112,060				517,934				39,133				(3,941	)			665,186
Long-term debt			279,850				873,151				—				—				1,153,001
Intercompany borrowings			—				493,400				11,525				(504,925	)			—
Deferred taxes and other long-term liabilities			—				239,864				1,443				—				241,307
Total shareholders’ equity			1,003,218				3,188,611				58,674				(2,577,312	)			1,673,191
Total liabilities and shareholders’ equity		$	1,395,128			$	5,312,960			$	110,775			$	(3,086,178	)		$	3,732,685

Unaudited Condensed Consolidating Statement of Income
For the nine months ended September 30, 2006
(amounts in thousands)

						Guarantor				Non-Guarantor
		Parent				Subsidiaries				Subsidiaries				Eliminations				Consolidated
Net sales		$	650,784			$	3,405,578			$	145,017			$	(27,963	)		$	4,173,416
Other income, net			833				12,616				1,266				(11,074	)			3,641
			651,617				3,418,194				146,283				(39,037	)			4,177,057
Costs and expenses:
Cost of sales (exclusive of depreciation and amortization shown below)			462,988				2,505,950				110,376				(28,025	)			3,051,289
Warehouse, delivery, selling, general and administrative			90,514				475,642				23,979				(3,117	)			587,018
Depreciation and amortization			5,475				39,000				657				—				45,132
Interest			18,309				31,123				459				(7,895	)			41,996
			577,286				3,051,715				135,471				(39,037	)			3,725,435
Income before minority interest and income taxes			74,331				366,479				10,812				—				451,622
Minority interest			—				(104	)			(123	)			—				(227	)
Equity in earnings of subsidiaries			221,358				3,820				—				(225,178	)			—
Income from continuing operations before income taxes			295,689				370,195				10,689				(225,178	)			451,395
Provision for income taxes			19,645				148,099				3,786				—				171,530
Net income		$	276,044			$	222,096			$	6,903			$	(225,178	)		$	279,865

Unaudited Condensed Consolidating Statement of Income
For the nine months ended September 30, 2005
(amounts in thousands)

						Guarantor				Non-Guarantor
		Parent				Subsidiaries				Subsidiaries				Eliminations				Consolidated
Net sales		$	560,049			$	1,893,463			$	57,857			$	(12,996	)		$	2,498,373
Other income, net			359				10,291				(36	)			(7,905	)			2,709
			560,408				1,903,754				57,821				(20,901	)			2,501,082
Costs and expenses:
Cost of sales (exclusive of depreciation and amortization shown below)			408,317				1,395,440				40,774				(13,057	)			1,831,474
Warehouse, delivery, selling, general and administrative			83,240				285,254				10,297				(3,178	)			375,613
Depreciation and amortization			5,200				29,208				398				—				34,806
Interest			20,197				3,504				255				(4,666	)			19,290
			516,954				1,713,406				51,724				(20,901	)			2,261,183
Income before minority interest and income taxes			43,454				190,348				6,097				—				239,899
Minority interest			—				(6,271	)			—				—				(6,271	)
Equity in earnings of subsidiaries			109,821				933				—				(110,754	)			—
Income from continuing operations before income taxes			153,275				185,010				6,097				(110,754	)			233,628
Provision for income taxes			9,359				76,750				2,670				—				88,779
Net income		$	143,916			$	108,260			$	3,427			$	(110,754	)		$	144,849

Unaudited Condensed Consolidating Statement of Income
For the three months ended September 30, 2006
(amounts in thousands)

						Guarantor				Non-Guarantor
		Parent				Subsidiaries				Subsidiaries				Eliminations				Consolidated
Net sales		$	225,595			$	1,352,067			$	58,177			$	(9,631	)		$	1,626,208
Other income, net			91				5,768				836				(4,708	)			1,987
			225,686				1,357,835				59,013				(14,339	)			1,628,195
Costs and expenses:
Cost of sales (exclusive of depreciation and amortization shown below)			160,017				998,890				44,884				(9,652	)			1,194,139
Warehouse, delivery, selling, general and administrative			31,572				183,652				10,568				(1,089	)			224,703
Depreciation and amortization			1,893				14,336				282				—				16,511
Interest			6,221				16,580				151				(3,598	)			19,354
			199,703				1,213,458				55,885				(14,339	)			1,454,707
Income before minority interest and income taxes			25,983				144,377				3,128				—				173,488
Minority interest			—				(33	)			(62	)			—				(95	)
Equity in earnings of subsidiaries			87,161				1,145				—				(88,306	)			—
Income from continuing operations before income taxes			113,144				145,489				3,066				(88,306	)			173,393
Provision for income taxes			6,786				58,251				851				—				65,888
Net income		$	106,358			$	87,238			$	2,215			$	(88,306	)		$	107,505