General Steel Holdings Inc. (GSHO)

[AMERICAN_PSYCHO]

General Steel Holdings, Inc. Reports Strong Fiscal Year 2007 First Quarter Financial Results & Announces Conference Call and Webcast

Monday , May 14, 2007 18:00 ET

BEIJING, May 14 /Xinhua-PRNewswire/ -- General Steel Holdings, Inc. (OTC Bulletin Board: GSHO), China's first publicly traded steel manufacturer in the US, reports financial results for its 2007 fiscal year first quarter ending March 31, 2007. Management will host a conference call and webcast on Wednesday, May 16, 2007, 9:00 a.m. Eastern time to discuss these results.

2007 First Quarter Financial Results

Sales Revenue increased 82% to $37.6 million in the first quarter of 2007 compared to $20.6 million in the same period of 2006. Shipment volume increased by 64% to 87,786 tons in the first three months of 2007 compared to 53,547 tons in the first three months of 2006. Overall Cost of Sales was $35.9 million in the first quarter of 2007, an 85% increase over the same period in the previous year. Gross Profit increased 36% to $1.73 million in the first three months of 2007 from $1.27 million in the same period of 2006. Selling, General and Administrative expenses decreased 2.2% to $630,200 in the first quarter of 2007 in contrast to $644,795 in the first three months of 2006. Net Income was up 88% to $474,865 in the first quarter of 2007 as opposed to $252,408 in the same period of 2006. EPS rose to 0.015 from 0.008.

The primary reasons for the Net Income result include strong demand for General Steel's main product, hot-rolled carbon steel sheets, well controlled costs and improving margins.

"We are very pleased with our 2007 first quarter results. In 2006, we invested heavily in improving and expanding our operations: We added 4 new production lines, increased our capacity by 150,000 tons, brought on 16 new distributors, and increased our processing efficiency by 20%. Now, in the first quarter of 2007, we can really see that these investments are beginning to gain traction and generate positive results," said Henry Yu, General Steel Holdings, Inc. Chairman and CEO.

He further elaborated, "We continue to see strong demand for our product and are clearly the dominate market leader in our niche. We saw the price of steel rise in the first quarter, our costs are managed and under control and our gross margin is improving. We are very excited about the remaining quarters of the year."

Conference Call and Webcast

Management will host a conference call at 9:00 A.M. U.S. Eastern time on Wednesday, May 16, 2007, to discuss results for the first quarter. Joining Henry Yu, General Steel Holdings Chairman and Chief Executive Officer, on the call will be John Chen, the company's Chief Financial Officer and Ross Warner, a Director with the company. To participate in the conference call, please dial the following number five to ten minutes prior to the scheduled conference call time: 1-800-860-2442. The pass code for the call is "General Steel."

This conference call will be broadcast live over the Internet and can be accessed by all interested parties through the following URL http://www.videonewswire.com/event.asp?id=39795. To listen to the live webcast, go to the URL at least fifteen minutes prior to the start of the call to register, download, and install any necessary audio software. For those unable to participate during the live broadcast, a replay will be available shortly after the call on General Steel Holdings' website http://www.gshi-steel.com for 90 days.

About General Steel Holdings, Inc.

General Steel Holdings, Inc. through its subsidiary, Tianjin Daqiuzhuang Metal Sheet Co., Ltd., is a leading manufacturer of high quality hot-rolled steel sheets used in the construction of small agricultural and specialty vehicles. Since 1988, it has expanded its operations to ten production lines capable of processing 400,000 tons of 0.7-2.0 mm hot-rolled carbon steel sheets per year. It is now the largest producer in its product category in China. For more information, visit www.gshi-steel.com.

Information Regarding Forward-Looking Statements

This press release may contain certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations or beliefs about future events and financial, political and social trends and assumptions it has made based on information currently available to it. The Company cannot assure that any expectations, forecasts or assumptions made by management in preparing these forward-looking statements will prove accurate, or that any projections will be realized. Such forward-looking statements may be affected by inaccurate assumptions or by known or unknown risks or uncertainties. Actual results may vary materially from those expressed or implied by the statements herein. For factors that could cause actual results to vary, perhaps materially, from these forward-looking statements, please refer to the Company's Form 10-K, filed with the Securities and Exchange Commission, and other subsequent filings. Forward-looking statements contained herein speak only as of the date of this release. The Company does not undertake any obligation to update or revise publicly any forward-looking statements, whether to reflect new information, future events or otherwise.

SOURCE General Steel Holdings, Inc.