PRESS RELEASE - February 3, 2006

Contact:

Port of Longview: Marie Wise, Communications/Public Affairs Manager
360-425-3305

NAP Steel: Dwaine Odinson, 604-946-0916

PORT FINALIZES LAND SALE TO R & R TRADING INC.

Subsidiary of NAP Steel plans to expand steel distribution facility

Longview, Washington - At a special meeting held today, the Board of Commissioners of the Port of Longview formally approved the sale of 35 acres of industrial property located in the West Industrial Park to R & R Trading Inc. of Delta, B.C. Canada, for a purchase price of $2,156,840. The company also has a three-year option to purchase an additional 15 acres at the West Industrial Park.

The company has been a tenant at the Port since 2001 through their subsidiary North American Pipe & Steel (NAP Steel) which operates a steel distribution center on six acres at the West Industrial Park. NAP Steel imports steel products across the Port’s docks and distributes them to its customers.

As part of the property purchase, the Port retains a Right of First Refusal to purchase the property back from R & R Trading Inc. in the case of a future sale. The same agreement was made with Simpson Timber Company in December 2005 when Simpson purchased 35 acres of the Port’s West Industrial Park property for a future lumber mill.

In addition to the property purchase, Cascadia Metals, another subsidiary of R & R Trading Inc., will lease the Port’s Warehouse 14 for one year with two one-year renewal options. Cascadia Metals will use the approximately 69,000 square foot building for processing steel coil and storage of small bore pipe and tubing while a new warehouse and processing facility is being built on the 35 acres. The six-acre site currently occupied by NAP Steel will be vacated and the Port plans to develop it into a storage area for marine cargo.

According to R & R Trading Inc., construction of the new warehouse and processing facility is expected to generate a capital investment of $5 million and provide 50 new family-wage jobs when it is completed. R & R Trading Inc. has been handling imported steel pipe since 1981 when Earl Ritchie, founder of the company, lived and worked in Korea. The company has since expanded in Canada and the United States and the expansion at the Port of Longview is the result of many years in the steel distribution industry.

R & R Trading’s new warehouse and processing facility is also projected to generate additional marine activity at the Port’s terminals. During 2005 just over 7,000 tons of imported steel products were handled across the Port’s docks. In 2006 approximately 20,000 tons on four to six vessels is projected, and volume could go as high as 60,000 tons per year after R & R Trading completes the new facility. “The marine revenue to the Port from all services associated with steel imports for R & R Trading Inc. and Cascadia Metals is estimated at over $750,000 per year over the next several years,” according to Gary Lindstrom, the Port’s director of marketing. “The impact on jobs in our community associated with steel imports, both at the processing facility and the dockside, will be significant,” he states.

“The Port began diversifying into the steel market in 1999, and NAP Steel’s decision to locate at the Port in 2001 brought the Port stability in the metals market,” explains Lindstrom. “Today we see assurance for the future growth of this important cargo at the Port,” he states.

“The Port’s extensive marine and rail infrastructure with convenient truck access made it the perfect location for the expansion of our business,” said Jim Ritchie, Sales Manager at R & R Trading Inc. “We are excited about the future of our business in North America and believe that the Port of Longview is our best logistics partner, not only for the Northwest but also in the Midwest.

Port of Longview Commission President Walt Barham paints a positive picture of the transaction. “Our strategy to redevelop this property to attract a marine-dependent industry is now coming to fruition,” he says. “The partnership we’ve developed with NAP Steel is an important part of the picture.

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PORT OF LONGVIEW MISSION To provide expansion and development of foreign and domestic trade, to encourage commercial and industrial development, and to enhance waterfront recreational activities for the economic benefit of the citizens of the Port District.

The Port of Longview is the first full-service operating port with strategic transportation connections on the deep-draft Columbia River shipping channel in southwest Washington State. The Port is located just 66 river miles from the Pacific Ocean, 120 driving miles from Seattle, Washington and 40 driving miles from Portland, Oregon. Port facilities include eight marine terminals and waterfront industrial property with direct connections to main-line rail and interstate highway. Cargo handling specialties include all types of bulk cargos and breakbulk commodities such as steel, lumber, logs, pulp, paper and project cargo.