Sims Group Reports Unaudited Net Profit after Tax for 9 Months to 31 March 2008 of $182.5 Million Following Record Third Quarter

Sims Group Limited (ASX:SGM) (NYSE:SMS):
Highlights

Unaudited sales revenue of $4.432 billion up 10.4% on FY07

Unaudited EBITDA of $357.1 million up 11.3% on FY07

Unaudited EBIT of $298.1 million up 12.6% on FY07

Unaudited NPAT of $182.5 million up 11.2% on FY07

Unaudited record NPAT of $80.3 million for Q3 FY08

Completion of Metal Management merger, with business integration and

synergy realisation underway

Strong outlook for Q4 FY08. Earnings will exceed those in Q3 FY08

prior to any extraordinary expenses or other costs that may be

recorded in connection with the Metal Management merger

Sims Group Results for 9 months to 31 March 2008
Sims Group Limited Group Chief Executive Officer, Daniel Dienst

announced today that the Company´s unaudited

NPAT (net profit after tax) for the nine months to 31 March 2008 was

$182.5 million, up 11.2% on the prior corresponding period.
Unaudited EBITDA (earnings before interest, tax, depreciation and

amortisation) and before charges that may be recorded in connection with

the merger transaction with Metal Management, was up 11.3% on the prior

corresponding period to $357.1 million. Unaudited sales revenue was up

10.4% on the prior corresponding period to $4.432 billion. Sales tonnes

increased moderately by 3% to 7.33 million tonnes.
Unaudited NPAT for the quarter ended 31 March 2008 was $80.3 million and

unaudited EBITDA was $145.7 million, up 62.3% and 44.1%

respectively on the quarter ended 31 December 2007.
The result includes a contribution from the former Metal Management

business for the period 15 March 2008 to 31 March 2008. This assisted in

delivering record earnings for the quarter.
Mr. Dienst said: "The result reflects the

vastly improved ferrous trading conditions experienced over the third

quarter, with strong prices for ferrous scrap globally, more than

offsetting the impact of the continuing strength of the Australian

dollar. It marks an exciting time for the 6,000 men and women of the

combined Sims Metal Management as two industry leaders have joined

together to create one truly global leader."
Australia, New Zealand & Asia
Sales revenue for the region was up 9.1% to $1.174 billion. Although

EBIT (earnings before interest and tax) and pre-amortisation of other

intangibles, was down slightly by 3.3% to $107.8 million compared to the

prior corresponding nine month period, it rose strongly compared to the

December quarter by 41.6% to $42.6 million. As with the Group as a

whole, improved ferrous margins was the major contributor to this

improvement.
North America
Sales revenue was up 26.9% in US dollar terms on the prior corresponding

period to US$2.09 billion but, after translation into Australian

dollars, was only up by 10.7%. Similarly, on a comparative basis, in US

dollar terms, EBIT (pre-amortisation of other intangibles) was up 32.4%

to US$128.3 million, although this increase was only 14.1% after

translation into Australian dollars.
Mr. Dienst said: "The completion of the merger

with Metal Management was the key event in the quarter although, with

Metal Management closing off its books on 14 March 2008, the timing was

such that only two weeks´ profit contribution

is included in this result. It is worth noting, however, for the record

that the EBITDA generated by the former Metal Management businesses for

the period from 1 January 2008 through 14 March 2008 was also a record

US$70.0 million, justifying the confidence expressed at that company´s

last results announcement in February this year."
Europe
In Europe, the improvement in the quarter compared to the previous

quarter was the greatest across the Group. After a challenging December

quarter, particularly from the metal recycling division, EBIT

(pre-amortisation of other intangibles) rose by 90.7% to GBP16.4

million. For the nine months, sales revenue was up 24.9% in pounds

sterling on the prior corresponding period to GBP412.7 million, but only

up 11.6% after translation into Australian dollars. EBIT

(pre-amortisation of other intangibles) was up 57.0% to GBP29.2 million

with the increase being 41.2% after translation into Australian dollars.
Sims Recycling Solutions
The contribution of Sims Recycling Solutions to revenue and profits was

again encouraging. Sales revenue of $435.9 million was up 38.7% on the

prior corresponding period and EBIT (pre-corporate costs and

amortisation of other intangibles) of $72.1 million, was up 66.2%. This

result represented 24.2% of Group EBIT (pre-corporate costs and

amortisation of other intangibles), well within the Company´s

target range of 20% - 25% of Group EBIT, although, following the Metal

Management merger, the relative contribution of SRS will decline in the

short to medium term.
Metal Management Merger Integration Update
As previously advised, the Metal Management merger was completed on 14

March 2008.
The integration process is proceeding according to schedule. A new

management structure for the combined North American business has been

announced, with Bob Kelman, President, Commercial North America and Alan

Ratner, President, Operations North America jointly leading the

business, reporting to Mr. Dienst.
Mr. Dienst said: "The North American

integration plan is proceeding according to plan with no surprises and

we remain confident that the $35 million of operational synergies should

be accomplished in fiscal 2009 and commercial synergies should be

identifiable in coming months and quarters."
Outlook
Mr. Dienst said: "Demand and pricing from

consumers for our ferrous and non-ferrous metals is robust and freight

rates have stabilised, albeit still at historically high levels, which

is supportive of an expectation for attractive operating conditions in

our fourth fiscal quarter. While we have not yet seen visibility to our

consolidated April results or been able to form a conclusive opinion

about the North American market (which tends to be a spot market

determined monthly where variations can be significant) for the month of

June, firm demand and prices in April and May are encouraging.
"The continued strength of the Australian

dollar could continue to provide head winds for the conversion of local

currencies to reported earnings. Notwithstanding the potential impact of

foreign currency translation, because of the full three month

contribution of earnings from Metal Management we believe our fourth

quarter performance will exceed the quarter just posted subject to any

extraordinary expenses or other costs that may be recorded in connection

with the Metal Management merger, but because of the potential for

volatility in prices and freight rates, which over recent quarters has

been unprecedented, we are unable to provide more precise estimates."
Cautionary Statements Regarding Forward-Looking Information
This release may contain forward-looking statements, including

statements about Sims Group Limited´s

financial condition, results of operations, earnings outlook and

prospects. Forward-looking statements are typically identified by words

such as "plan," "believe," "expect," "anticipate," "intend," "outlook," "estimate," "forecast," "project" and

other similar words and expressions.
These forward-looking statements involve certain risks and

uncertainties. Our ability to predict results or the actual effects of

our plans and strategies is subject to inherent uncertainty. Factors

that may cause actual results or earnings to differ materially from

these forward-looking statements include those discussed and identified

in filings we make with the Australian Securities Exchange and the

United States Securities and Exchange Commission, including the risk

factors described in the Registration Statement on Form F-4 we filed

with the United States Securities and Exchange Commission on 8 February

2008.
Because these forward-looking statements are subject to assumptions

and uncertainties, actual results may differ materially from those

expressed or implied by these forward-looking statements. You are

cautioned not to place undue reliance on these statements, which speak

only as of the date of this release.
All subsequent written and oral forward-looking statements concerning

the matters addressed in this release and attributable to us or any

person acting on our behalf are expressly qualified in their entirety by

the cautionary statements contained or referred to in this release.

Except to the extent required by applicable law or regulation, we

undertake no obligation to update these forward-looking statements to

reflect events or circumstances after the date of this release.
About Sims Group Limited
Sims Group (www.sims-group.com)

is the world´s largest listed metal recycler

with over 200 operations globally. Sims´ core

business is metal recycling, with an emerging business in recycling

solutions. Sims earns around 80 per cent of its revenue from

international operations in the United Kingdom, Continental Europe

North America, New Zealand and Asia. Sims has over 6,000 employees, an

annual turnover of $8.5 billion and has its ordinary shares listed on

the Australian Stock Exchange (ASX CODE: SGM) and its ADRs listed on the

NYSE (NYSE SYMBOL: SMS).