Metalico Offers Response: Addresses Recent Stock Downturn

Metalico, Inc.

, today stated that it is not aware of any events dictating recent declines in its stock price amid unusually heavy volume but speculated they may be the results of aggressive short selling and/or stockholders not completely understanding the Company's recent debt restructuring, announced October 21. The debt restructuring and proposed sales of certain non-core assets are expected to help achieve the Company's principal strategic objective of significantly reducing debt and leverage while concentrating Metalico's operations in its scrap metals recycling segment.  The complex transaction included an issuance of stock together with new notes in exchange for outstanding indebtedness that slashed the Company's leverage.  The new notes have no current cash-pay interest and mature in 2024. The restructuring, asset sales, and cost reductions should move Metalico appreciably toward its goal of reducing total debt by 30% to 40% over the next few months, freeing its balance sheet to allow it to execute its business plans and take advantage of opportunities and upswings in the metals commodity sector.  The Company intends to discuss the restructuring further in its Third Quarter earnings call, to be held in early November. NYSE MKT has informed the Company that the Exchange is aware of the recent unusual trading activity in Metalico stock.  The Company has also contacted FINRA, the independent regulatory body having jurisdiction over securities firms and brokers. The Company is in compliance will all of its debt covenants and is not in default under any of its credit arrangements.  Principal and interest payments on debt have been made on time and all suppliers are being paid on agreed terms.   In the nine months ended September 30, 2014, Metalico generated EBITDA of $17.5 million.  As part of its strategic redirection, the Company has agreed to treat its lead operations, collectively a non-core asset, as discontinued operations held for resale. The Company's volume of ferrous scrap sales for the third quarter was a record high of 160,400 gross tons, eclipsing the former record of 154,700 gross tons set in the third quarter of 2008.  Non-ferrous sales of 55.4 million pounds were Metalico's second highest, trailing only the  56.6 million pounds posted in this year's second quarter. The underlying operating fundamentals of the Company have improved during most of 2014.