What’s the difference?

Some people can’t tell the differencebetween CMC and other companies in our industry.

They think we’re just a steel company and all steel companies are basically the same.

all steel companies are basically the same.

But we are different. Very different.

Let’s take a closer look.

Although some may think we can

be lumped together with all the

companies in our industry, there

are important differences.

Differences in strategy, differences

in financial strength. And, finally,

differences in performance.

When you compare us to other companies in our industry,

there’s no comparison.

SO WHAT IS THEHere’s why CMC is different.

And here’s why the difference

matters to our shareholders

and to our future.

DIFFERENCE?

Focus on Long ProductsAt CMC, our steel production is primarily in long products–

such as reinforcing bars and merchant bars–that are typically

used in construction, a market that remains poised for

growth worldwide. We do not produce flat rolled products.

DiversificationUnlike other companies in the industry, CMC doesn’t just

manufacture steel, with fortunes rising or falling based

on one segment. We also manufacture copper tubing; we

process ferrous and nonferrous scrap; we have diversified

geographically, operating the second largest steel producing

plant in Poland; we operate many fabrication plants,

construction-related product warehouses, and a heat

treating plant in the U.S; and we globally market, distribute

and process primary and secondary metals and other

related raw materials and products through a global network

of marketing and distribution offices, processing facilities

and other joint ventures. CMC is a company of global

reach, with a significant presence in North America,

Europe, Asia and Australia.

Financial StrengthCMC’s sound management and commitment to being an

efficient, high-quality, low-cost producer have led to

more than a quarter century of consistent profitability and

financial stability. We are one of the very few companies

in the steel industry to have earned and maintained an

investment grade public debt rating. We have also earned

the trust of our shareholders. We have awarded quarterly

cash dividends to our investors for 164 consecutive

quarters. And we remain committed to increasing value

for our shareholders now, purchasing over three

million shares of CMC stock in 2005 and authorizing the

purchase of two million more.

WHAT TRULY MAKES CMC DIFFERENT?

CMC DIFFERENT?

PerformanceFiscal 2005 saw us achieve record net earnings, even

after the stunning records set in fiscal 2004. And record

net sales. Just two more milestones in 28 straight years

of profitability. For the full picture of the achievements of our

most recent record-setting year, see our complete annual

report or visit our website at www.commercialmetals.com.

4.8

6.6

03 04 0501 02

2.92.52.5

0

NET SALES($ b i l l ions)

0

1

2

3

4

5

6

7

0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

2.3

03 04 0501 02

2.3 2.4

2.21.9

CMC DOMESTICSTEEL MILLS

(tons shipped in millions)

The 5 Different Business Segments That Make Up 1 Different Company

0

300

600

900

structurals

1200

15001,342

03 04 0501 02

rebar

joists

posts

976

1,250

946948

CMC DOMESTICFABRICATION PLANTS

( tons sh i pped in thousands )

Domestic MillsComprised of four steel

minimills with a capacity of 2.4

million tons and a copper

tube mill with a capacity of 80

million pounds.

Domestic FabricationComprised of rebar and structural

fabrication plants, joist plants, a

cellular beam fabricator, fence post

manufacturing plants, a heat treating

plant and construction-related

product warehouses, with a capacity

of more than 1.4 million tons.

0

1.5

1.0

0.5

2.0

2.5

3.0

3.53.3

03 04 0501 02

2.8

3.4

2.62.3

CMC RECYCLING

(tons shipped in millions)

nonferrous

ferrous

RecyclingOne of the country’s largest

processors of nonferrous scrap

with a capacity of 530,000

tons and one of the largest

regional processors of ferrous

scrap with a capacity of 3.0

million tons.

Marketing & DistributionMarkets, distributes and processes

primary and secondary metals

and related products through a

global network of marketing and

distribution offices, processing

facilities and other joint ventures.

CMCZThe second largest steel producer

in Poland with a capacity of 1.1

million tons.

That Make Up 1 Different Company

Since 1915, Commercial Metals Company and its subsidiaries have manufactured,

recycled and marketed steel and metal products and related materials throughout a

network of locations around the world. CMC is an efficient, high-quality, low-cost producer

a

0

1

2

3

4

5

2.21

4.63

03 04 0502

0.33

0.72

DILUTED EARNINGSPER SHARE(year end)

Adjusted for January 2005 stock split.

and is one of the few steel companies with investment grade public debt ratings. CMC

has a high degree of vertical integration and is organized into five business segments:

Domestic Mills, CMCZ, Domestic Fabrication, Recycling and Marketing & Distribution.

0

4

8

12

16

7.95

15.47

95 00 0590

4.933.50

STOCKHOLDERS’EQUITY PER SHARE(year end)

Adjusted for January 2005 stock split.

6565 N. MacArthur Blvd. Suite 800 Irving, Texas 75039 Phone 214.689.4300