MEA reports Q4 miss by a penny on higher than expected revenues; cautiously optimistic for 2008

Income from continuing operations of $0.11/share vs. $0.12 estimate on $113.7 mil in sales vs. $92.7 mil estimate.

Fourth-quarter 2007 results were negatively impacted by declining lead product selling prices and product unit volumes as compared to the third quarter of 2007, as well as these additional factors:


-- Continued implementation of Sarbanes-Oxley compliance requirements and
absorption of losses from development stage companies totaling $637,000 on
a pre-tax basis.
-- Higher interest expense related to debt incurred in connection with
acquisitions closed in 2007.
-- Higher effective federal and state income tax rates compared to 2006.
-- Discontinued operations charge net of taxes totaling $915,000 in the
quarter.

Metalico operates in a highly cyclical and volatile commodity metals universe made ever more difficult by the current unpredictable economic and capital markets. The Company's strategy focuses on broad diversification among various commodity metal groups, through internal growth and acquisitions, and taking a long-term view to achieve growth and above-average financial results.

"Our record financial performance in 2007 resulted from a successful acquisition program, strong pricing across most commodity products sold and dedicated execution by our employees and managers," said Carlos E. Agüero, Metalico's President and Chief Executive Officer. "Despite the challenging environment," Agüero added, "we expect that 2008 will be another year of strong growth for Metalico."

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