Energy Alloys, LLC was founded in 1995 with a vision of changing the traditional business model that applied to the oilfield metals distribution market. The strategy was to become a value-added supply chain partner of its customers in an industry that was traditionally transaction oriented and adversarial. The Company’s Management Team also understood the critical need for Internet-based information technology for real-time inventory and transaction processing.

Since 2002, we have been working with Energy Alloys, LLC. When we began, the Company was a regional wholesale distributor of specialty alloy tubular and bar steel products, which served the original equipment-manufacturing (OEM) sector of the energy industry. During the interim period, we have assisted the Company in developing and executing its growth strategy, and on matters relating to the capital structure needed to support a rapidly growing business.

Most recently, after examining a range of finance and growth strategy alternatives, a plan was decided upon in 2005 that included the following growth elements: (i) find a new strategic capital partner and refinance the Company in order to have funds available for acquisitions, (ii) reposition the business as a supply chain partner to OEM customers, which would require information systems upgrades and “bundling both in-house and out-sourced” secondary material handling and processing services, (iii) recognize that the OEM business was consolidating on a global basis and that OEMs would need international supply chain partners, and (iv) also attempt to leverage growth based upon the global consolidation in the steel industry by targeting certain subsidiaries or divisions of larger steel wholesale distributors, which would be non-core to them but highly relevant to the Company.

Since 2002, the Company has increased revenue from $33.6 million to nearly $300 million, and has grown EBITDA from $5 million to roughly $42 million. This announced transaction of the acquisition of the US Energy Division assets of Ryerson, Inc., which were acquired by Ryerson as part of its acquisition of Integris in 2005, was the second significant acquisition by Energy Alloys, LLC, as part of its growth plan. With the completion of this transaction, the Company is now the leading competitor globally in its industry niche.

Since 1982, Source Capital, Ltd. has successfully represented hundreds of medium-sized companies on matters related to developing, implementing and funding growth strategies.