October 16, 2008

Metalico agrees to Pennsylvania acquisition

Metalico Inc has agreed to terms of a definitive asset purchase agreement for a family owned multi yard fully integrated scrap metal recycling operation in Western Pennsylvania. It intends to use approximately USD 69 million of the net proceeds of the private placement for the purchase of the assets.

The total purchase price for the acquisition is USD 76 million subject to additional closing adjustments based on the value of the inventory on hand, USD 69 million of which will be paid in cash and USD 7 million of which will be in shares of Metalico's common stock having an aggregate value of USD 7 million determined at a price per share equal to 90% of the volume weighted average price for Metalico common stock on AMEX for the twenty trading days immediately preceding the closing date.