Fourth Quarter 2010 Financial Highlights

• Revenue increased 6% year-over-year to $478.6 million in the fourth quarter of 2010, from $452.0 million in the fourth quarter of 2009.
• Fourth quarter 2010 production totaled 1.0 million metric tons, compared with 1.1 million metric tons in the fourth quarter of 2009.
• Gross profit increased by 223% year-over-year to $43.2 million, or 9.0% of revenue, up from $13.4 million, or 3.0% of revenue in the fourth quarter of 2009.
• Operating income for the quarter was $25.7 million, compared with $1.5 million operation income in the fourth quarter of 2009.
• Net income attributable to the Company was $2.2 million, or $0.04 per diluted share based on 54.7 million weighted average shares outstanding, compared with a net loss of $11.1 million, or ($0.26) per diluted share based on 41.9 million weighted average shares outstanding in the fourth quarter of 2009.
• As of December 31, 2010, the Company had cash and restricted cash of $263.1 million and total stockholders' equity of $99.0 million.

Full-Year 2010 Financial Highlights

• Revenue increased by 13% year-over-year to $1.9 billion, up from $1.7 billion in 2009.
• Production volume for the year totaled 4.0 million metric tons, compared with 3.8 metric tons in 2009.
• Gross profit for the year was $71.9 million, or 3.8% of revenue, compared with $88.6 million, or 5.3% of revenue in 2009. Gross margins were impacted by interruption of production for which General Steel received compensation.
• Operating income totaled $19.0 million, compared with $47.5 million in 2009.
• Net loss attributable to the Company was $7.7 million, or ($0.14) per diluted share, based on 53.1 million weighted average shares outstanding, compared with a net loss of $25.2 million, or $(0.60) per diluted share, based on 41.9 million weighted average shares outstanding in 2009.

2010 and Recent Business Highlights

• Began testing on two newly constructed 1,280 cubic meter blast furnaces, two 120 metric ton converters and one 400 square meter sintering machine built by Shaanxi Iron and Steel Group ("Shaanxi Steel Group") at Longmen Joint Venture. Based on designed efficiency levels, this new equipment increases GSI's annual crude steel production capacity by 3 million metric tons to 7 million metric tons.
• At the end of 2010, we received reimbursement from Shaanxi Steel Group of approximately $25.0 million (RMB169 million) and compensation of approximately $27.1 million (RMB180 million) for the loss of production volume and production efficiency at Longmen Joint Venture during the construction of the blast furnaces by Shaanxi Steel Group.
• Appointed PricewaterhouseCoopers Zhong Tian CPAs Limited as the Company's independent registered public accounting firm, with services to commence in the second quarter of fiscal 2011.
• In December 2010, the Company initiated a one million share repurchase program. As of January 31, 2011, the Company had purchased 713,660 shares under the program.
• Formed Tianwu General Steel Material Trading Co., Ltd. through a joint venture with Tianjin Materials and Equipment Group Corporation. The joint venture, a raw materials trading company, is expected to provide as much as 50% of GSI's annual demand of iron ore.
• In the third quarter of 2010, completed the conversion of all convertible promissory notes issued on December 13, 2007 to common stock.

"2010 was a year of progress and positioning for General Steel, as we grew revenue in a challenging environment. We commenced several initiatives aimed at expanding our production capacity to capture what we believe will be a considerable increase in demand in 2011," said General Steel Chairman and Chief Executive Officer Mr. Henry Yu. "We made considerable improvements to our bottom-line during the year and we expect to continue to demonstrate financial gains based on our newly expanded capacity, which was not reflected in our fourth quarter results. Now that this construction is complete, along with our upgrades to existing production equipment and improved raw materials procurement, we expect to increase production levels and attain profitability. In addition, our improved raw materials sourcing is designed to insulate us from pricing volatility, providing greater stability and visibility, supporting our overall goal of margin improvement, and creating a platform to support sustainable profitability."

Mr. Yu added, "The steel market in China is poised for continued strong growth, driven by ongoing investment in infrastructure, housing and transportation, with China's Western region presenting a virtual great opportunity for construction and development. In addition to the favorable market climate, we believe that government initiatives targeting improvement in the efficiency, profitability and environmental responsibility of China's steel industry will be highly conducive to General Steel's further expansion. In line with these initiatives, we are highly focused on driving growth by optimizing our current facilities' capabilities, creating additional efficiencies and through our capacity expansion. In addition to organic growth, our proven, effective approach to M&A which aligns the interests of the Central and Provincial governments, as well as local companies, positions GSI to be a leader in the ongoing consolidation of our industry. We believe we are well positioned in the market, with the right strategy and the resources necessary to continue building our business, expanding our margins, improving our bottom line and increasing shareholder value."

Fourth Quarter 2010 Financial Results

Revenues for the fourth quarter of 2010 increased 6% year-over-year to $478.6 million, compared with $452.0 million in the fourth quarter of 2009. The increase is primarily attributable to a 23% rise in the average selling price of rebar from RMB3,048 (approximately US $451) in the fourth quarter of 2009 to RMB3,753 (approximately US $555) in the fourth quarter of 2010. Total volume production in the fourth quarter of 2010 was 969,000 metric tons, compared with 1.1 million in 2009.

Cost of sales for the quarter was $435.4 million, compared with $438.6 million in the fourth quarter of 2009. The year-over-year decline in cost of sales was primarily related to compensation of RMB180 million from Shaanxi Steel Group for the decreased production volume as a result of the aforementioned equipment construction.

Gross Profit for the quarter increased 223% to $43.2 million, or 9.0% of sales, compared with $13.4 million, or 3.0% of sales in the fourth quarter of 2009. The increase in gross profit and gross margin for the quarter was attributable to the increased revenue and reduced cost of sales related to the aforementioned RMB180 million compensations from Shaanxi steel Group.

Selling, general and administrative expenses for the fourth quarter of 2010 increased 48.2% to $17.6 million, compared to $11.9 million in the fourth quarter of 2009. Selling, general and administrative expenses were 3.7% and 2.6% of total revenues in the fourth quarter of 2010 and 2009, respectively. The increase in selling, general and administrative expenses is primarily driven by the ascending transportation and agent charges at Longmen Joint Venture due to the increase of shipping volume and long distance sales deliveries to markets in Henan, Hubei and Chongqing.

Income from operations for the fourth quarter of 2010 totaled $25.7 million, compared with $1.5 million in the fourth quarter of 2009. The increase is due to the compensation from Shaanxi Steel Group for the loss of production volume and production efficiency at Longmen Joint Venture during the construction of blast furnaces by Shaanxi Steel Group.

Finance and interest expense for the fourth quarter of 2010 was $13.7 million, compared with $9.4 million in the fourth quarter of 2009. The increase in interest expense was related to additional borrowing by the Company to stockpile raw material inventory in order to utilize the expected capacity increase of 3 million metric tons in 2011 as a result of the new manufacturing equipment installed at the Longmen Joint Venture.

Net income attributable to General Steel for the fourth quarter of 2010 was $2.2 million, or $0.04 per diluted share, based on 54.7 million weighted average shares outstanding. This compares to a net loss of $11.1 million, or $0.26 per diluted share, based on 41.9 million weighted average shares outstanding in the fourth quarter of 2009.

Full Year 2010 Financial Results

Revenues for the 12 months ended December 31, 2010 increased 14%, to $1.9 billion, from $1.7 billion in 2009. The increase in revenue was primarily attributable to a combination of increased sales volume and average selling prices. Total production volume in 2010 was 4.0 million metric tons, an increase of 3.2% over 3.8 million metric tons in 2009. Average selling price of rebar in 2010 increased by 21.3% to RMB3,546 (approximately US $524.6), compared with RMB3,083 (approximately US $456.0) in 2009.

Cost of sales for the year increased to $1.8 billion, compared with $1.6 billion in 2009. The increase of output and the rise of iron ore and coke purchase price are the primary elements that led to the increase of cost of sales in 2010.

Gross Profit for the year was $71.9 million, or 3.8% of revenue, compared with $88.6 million, or 5.3% of revenue in 2009. The decline in gross profit and gross margin was primarily related to increased cost of sales, as a result of a year-over-year increase in the price of raw materials, partially offset by increases in the average selling prices of the Company's products.

Selling, general and administrative expenses totaled $52.9 million, compared with $41.1 million in 2009. Selling, general and administrative expenses were 2.8% and 2.5% of total revenues in 2010 and 2009, respectively. The year-over-year increase in SG&A was mainly driven by the ascending transportation and agent charges at Longmen Joint Venture due to the increase of shipping volume and long distance sales deliveries to markets in Henan, Hubei and Chongqing.

Income from operations for 2010 totaled $19.0 million, compared with $47.5 million in 2009. Operating margin, as a percentage of revenue, was 1.0%, compared with 2.8% in 2009. The decline in operating income for the year was primarily attributable to increases in the cost of revenue and selling, general and administrative expenses in 2010.

Finance and interest expense for 2010 was $51.3 million, compared to $27.8 million in 2009. The increase in interest expense was related to additional borrowing by the Company to stockpile raw material inventory in order to utilize the additional capacity expected to come on line as a result of the new manufacturing equipment installed at Longmen Joint Venture.

For the 12 months ended December 31, 2010, net loss attributable to General Steel was $7.7 million, or $(0.14) per diluted share, based on 53.1 million weighted average shares outstanding. This compares to a net loss of $25.2 million, or $0.60 per diluted share, based on 41.9 million weighted average shares outstanding in 2009.

Balance Sheet

As of December 31, 2010, General Steel had cash and restricted cash of $263.1 million, compared to $274.2 million as of December 31, 2009. Accounts receivable, net of allowance was $17.6 million as of December 31, 2010, compared to $8.5 million as of December 31, 2009.

The Company had an inventory balance of $475. 9 million as of December 31, 2010 compared to $208.1 million as of December 31, 2009. The increase in inventories during 2010 was primarily related to increased raw materials purchase in anticipation of a potential significant increase in price increase during the first half of 2011, as well as preparation for the increased capacity at the Longmen Joint Venture.

As of December 31, 2010, the Company had total liabilities of $1.6 billion. This included $480.2 million in short-term notes payable related to bank lines of credit and $489.4 million in short-term loans.

Conference Call and Webcast:

General Steel management will hold an earnings conference call at 8:00 a.m. U.S. Eastern Time on March 16, 2011 (8:00 p.m. Beijing/Hong Kong Time) to discuss the quarterly and annual results and answer investors' questions.

Interested investors may access the call by dialing 1-800-860-2442 toll free in the U.S. or 1-412-858-4600 from outside the U.S.

Additionally, a live and archived webcast of this call will be available on the Investor Relations section of General Steel's website at www.gshi-steel.com, or generalsteel@tpg-ir.com.

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. Actual results could differ materially from those projected in the forward-looking statements as a result of inaccurate assumptions or a number of risks and uncertainties. These risks and uncertainties are set forth in the Company's filings under the Securities Act of 1933 and the Securities Exchange Act of 1934 under "Risk Factors" and elsewhere, and include: (a) those risks and uncertainties related to general economic conditions in China, including regulatory factors that may affect such economic conditions; (b) whether the Company is able to manage its planned growth efficiently and operate profitable operations, including whether its management will be able to identify, hire, train, retain, motivate and manage required personnel or that management will be able to successfully manage and exploit existing and potential market opportunities; (c) whether the Company is able to generate sufficient revenues or obtain financing to sustain and grow its operations; (d) whether the Company is able to successfully fulfill our primary requirements for cash; and (e) other risks, including those disclosed in the Company's Form 10-K, filed with the SEC. 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.

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    Second Quarter of 2010 Highlights
    -- Total revenues increased 22.7% to $501.7 million from $408.9 million in
       the second quarter of 2009
    -- Aggregate shipment volume reached 1.01 million metric tons, an increase
       of 6.8% year-over-year
    -- Gross margin was 1.5%, compared to 1.3% in the previous quarter and
       5.5% in the second quarter of 2009
    -- On May 13, 2010, the Company entered into a Joint Venture Framework
       Agreement with Shanxi Meijin Energy Group Co., Ltd.

    First Half of 2010 Highlights
    -- Total revenues increased 30.5% to a record $954.7 million from $731.7
       million in the first half of 2009
    -- Aggregate shipment volume reached 2.05 million metric tons, an increase
       of 22.3% year-over-year
    -- Gross margin was 1.4%, compared to 4.8% in the first half of 2009

"Demand continues to be robust," said General Steel's Chairman and Chief Executive Officer Henry Yu. "Located in central China, our largest subsidiary, Longmen Joint Venture, is relatively insulated from the slowdown in the real estate industry and allows us to continue benefiting from infrastructure development projects in western China. In fact, this year alone, there are over 235 construction and infrastructure projects scheduled to begin in Shaanxi province, including nine new railways, one new airport, the expansion of the Xi'an airport, two new ring subway systems and four new dams. These projects will take place over many years and drive our growth in the quarters and years to come. In the meantime, the industry continues to experience ups and downs as average selling prices and key input costs for iron ore and coking coal continue to fluctuate. Regardless, our focus is to continue vetting high-quality acquisition targets while putting an equal effort on controlling our costs and increasing profitability. The fundamentals of our business remain strong and I'm confident in our ability to deliver long-term shareholder value."

Selected Financial Results for the Second Quarter and First Half of 2010

Total revenues for the second quarter of 2010 increased 22.7% to $501.7 million from $408.9 million in the second quarter of 2009. Total revenues for the first half of 2010 increased 30.5% to $954.7 million from $731.7 million in the first half of 2009.

The increase in total revenues was predominantly due to an increase in both shipment volume and average selling prices for rebar at the Company's Longmen Joint Venture ("Longmen JV").

Cost of Sales

Total cost of sales for the second quarter of 2010 increased 27.9% to $494.3 million from $386.4 million in the second quarter of 2009. Total cost of sales for the first half of 2010 increased 35.2% to $941.6 million from $696.3 million in the first half of 2009. Cost of sales principally consists of the cost of raw materials, labor, utilities, manufacturing costs, manufacturing-related depreciation and other fixed costs. The increase in cost of sales was primarily due to an increase in total revenues.

Gross Profit

Gross profit for the second quarter of 2010 decreased 67.3% year-over-year to $7.4 million from $22.5 million. Gross profit for the first half of 2010 decreased 63.0% year-over-year to $13.1 million from $35.4 million. Gross margin for the second quarter of 2010 was 1.5%, compared to 5.5% in the second quarter of 2009. Gross margin for the first half of 2010 was 1.4%, compared to 4.8% in the first half of 2009.

The Company noted that gross profit was adversely affected by declining average selling prices which fell from the middle of April to the end of June and the price of iron ore and coke, which remained relatively high during the second quarter of 2010.

Operating Expenses

Selling, general and administrative expenses for the second quarter of 2010 increased 43% to $13.7 million, compared to $9.6 million in the second quarter of 2009. Selling, general and administrative expenses for the first half of 2010 increased 37.8% to $25.8 million from $18.7 million in the first half of 2009. Selling, general and administrative expenses were 2.7% and 2.3% of total revenues in the second quarter of 2010 and 2009, respectively, and 2.7% and 2.6% of total revenues in the first half of 2010 and 2009, respectively. The Company noted that the increase is mainly due to higher transportation and agent charges at the Longmen Joint Venture following shipping volume increases.

Finance and interest expenses for the second quarter of 2010 were $16.5 million, compared to $11.3 million in the second quarter of 2009. Finance and interest expenses for the first half of 2010 were $27.4 million, compared to $14.2 million in the first half of 2009. The Company noted that the year-over- year increases were caused by a combination of additional finance and interest expenses and gains on a change in fair value of derivative liabilities.

Net Income

Net loss attributable to General Steel Holdings, Inc. for the second quarter of 2010 was $2.1 million compared to a net loss of $31.8 million in the second quarter of 2009. Net loss attributable to General Steel Holdings, Inc. for the first half of 2010 was $7.6 million compared to net loss of $24.5 million in the first half of 2009.

Basic and diluted losses per share for the second quarter of 2010 were $0.041 compared to basic and diluted losses per share of $0.80 in the second quarter of 2009. Basic and diluted losses per share for the first half of 2010 were $0.15 compared to basic and diluted losses per share of $0.64 in the first half of 2009.

Balance Sheet

As of June 30, 2010, General Steel had cash and restricted cash of $320.4 million, compared to $274.2 million as of December 31, 2009. Accounts receivable was $21.4 million as of June 30, 2010, compared to $8.5 million as of December 31, 2009. Convertible notes payable increased to $1.3 million as of June 30, 2010, compared to $1.1 million as of December 31, 2009.

The Company had an inventory balance of $281.3 million as of June 30, 2010 compared to $208.1 million on December 31, 2009. This balance is comprised of raw materials and finished products.

On August 5, 2010, remaining notes outstanding from the Company's December 13, 2007 private placement have been converted into a total of 1,559,675 shares of Common Stock.

As of today, all of the convertible promissory notes issued on December 13, 2007 have now been converted into Common Stock.

Conference Call

General Steel management will hold an earnings conference call at 8:00 a.m. U.S. Eastern Time on August 6, 2010 (8:00 p.m. Beijing/Hong Kong Time on August 6, 2010). Management will discuss results and highlights from the quarter and answer questions. The dial-in number and passcode for the conference call are as follows:

U.S. Toll Free: +1-800-860-2442

Passcode: General Steel Holdings

The conference call will be broadcast live over the Internet and can be accessed by clicking the following link: http://www.gshi-steel.co... .

About General Steel Holdings, Inc.

General Steel Holdings, Inc., (NYSE:GSI - News), headquartered in Beijing, China, operates a diverse portfolio of Chinese steel companies. With 6.3 million metric tons aggregate production capacity, its companies serve various industries and produce a variety of steel products including rebar, hot-rolled carbon and silicon sheet, high-speed wire and spiral-weld pipe. General Steel Holdings, Inc. has steel operations in Shaanxi and Guangdong provinces, Inner Mongolia Autonomous Region and Tianjin municipality. For more information, please visit http://www.gshi-steel.co... .

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.

    For investor and media inquiries, please contact:

    In China:

     Ms. Jing Ou-Yang
     General Steel Holdings, Inc.
     Tel:   +86-10-5879-7346
     Email: jing.ouyang@gshi-steel.com

     Mr. Justin Knapp
     Ogilvy Financial, Beijing
     Tel:   +86-10-8520-6556
     Email: gsi@ogilvy.com

    In the United States:

     Ms. Jessica Barist Cohen
     Ogilvy Financial, New York
     Tel:   +1-646-460-9989
     Email: gsi@ogilvy.com




                  GENERAL STEEL HOLDINGS INC. AND SUBSIDIARIES

                           CONSOLIDATED BALANCE SHEETS
                    AS OF JUNE 30, 2010 AND DECEMBER 31, 2009
                      (In thousands, except per share data)

                                     ASSETS
                                                  June 30,        December 31,
                                                    2010              2009
                                                 (Unaudited)
    CURRENT ASSETS:
      Cash                                         $50,772           $82,118
      Restricted cash                              269,670           192,041
      Notes receivable                              56,355            29,185
      Restricted notes receivable                   24,324
      Accounts receivable, net                      20,759             8,525
      Accounts receivable - related party              734
      Other receivables, net                         8,887             5,357
      Other receivables - related parties           30,556            32,670
      Dividend receivable                            5,940             2,372
      Inventories                                  281,276           208,087
      Advances on inventory purchase                40,085            28,407
      Advances on inventory purchase -
       related parties                               8,798             2,995
      Prepaid expense                                5,409               690
      Prepaid value added tax                       17,075            19,488
      Deferred tax assets                            8,775             3,341
        Total current assets                       829,415           615,276

    PLANT AND EQUIPMENT, net                       566,202           555,111

    OTHER ASSETS:
      Advances on equipment purchase                18,618             8,419
      Investment in unconsolidated
       subsidiaries                                 12,751            20,022
      Long-term deferred expense                                       2,069
      Intangible assets, net of
       accumulated amortization                     23,400            23,733
      Note issuance cost                               392               406
      Plant and equipment to be disposed             2,800             3,026
        Total other assets                          57,961            57,675

          TOTAL ASSETS                          $1,453,578        $1,228,064

                          LIABILITIES AND EQUITY

    CURRENT LIABILITIES:
      Short term notes payable                    $388,080          $254,608
      Accounts payable                             194,478           158,126
      Accounts payable - related parties            85,128            48,151
      Short term loans - bank                      177,404           148,968
      Short term loans - others                     97,902           110,358
      Short term loans - related parties                --            11,751
      Other payables and accrued
       liabilities                                  19,769            16,222
      Other payable - related parties               24,085             3,706
      Customer deposit                             186,589           208,765
      Customer deposit - related parties            28,514             3,791
      Deposit due to sales representatives          67,884            49,544
      Taxes payable                                  6,020             6,921
      Distribution payable to former
       shareholders                                 12,862            16,434
        Total current liabilities                1,288,715         1,037,345

    CONVERTIBLE NOTES PAYABLE, net of
     debt discount of $2,019 and $2,250
     as of June 30, 2010 and December 31,
     2009, respectively                              1,281             1,050

    DERIVATIVE LIABILITIES                           8,672            23,340

        Total liabilities                        1,298,668         1,061,735

    COMMITMENT AND CONTINGENCIES

    EQUITY:
      Preferred stock, $0.001 par value,
       50,000,000 shares authorized,
       3,092,899 shares issued and
       outstanding as of June 30, 2010
       and December 31, 2009, respectively               3                 3
      Common Stock, $0.001 par value,
       200,000,000 shares authorized,
       52,952,508 and 51,618,595 shares
       issued and outstanding as of June
       30, 2010 and December 31, 2009,
       respectively                                     53                52
      Paid-in-capital                               99,498            95,588
      Statutory reserves                             6,541             6,162
      Accumulated deficits                         (24,047)          (16,412)
      Accumulated other comprehensive
       income                                        8,398             8,336
        Total shareholders' equity                  90,446            93,729

    NONCONTROLLING INTERESTS                        64,465            72,598

        Total equity                               154,911           166,327

          TOTAL LIABILITIES AND EQUITY          $1,453,578        $1,228,062



                  GENERAL STEEL HOLDINGS, INC. AND SUBSIDIARIES

       CONSOLIDATED STATEMENTS OF OPERATION AND OTHER COMPREHENSIVE INCOME
                                   (UNAUDITED)
                      (In thousands, except per share data)

                                  Three months ended       Six months ended
                                        June 30,               June 30,
                                    2010        2009        2010        2009
    REVENUES                     $383,173    $324,461    $700,801    $586,875

    REVENUES - RELATED PARTIES    118,506      84,486     253,901     144,866

      TOTAL REVENUES              501,679     408,947     954,702     731,741

    COST OF REVENUES              369,437     301,849     687,013     553,851

    COST OF REVENUES - RELATED
     PARTIES                      124,882      84,599     254,596     142,469

      TOTAL COST OF REVENUES      494,319     386,448     941,609     696,320

    GROSS PROFIT                    7,360      22,499      13,093      35,421

    SELLING, GENERAL AND
     ADMINISTRATIVE EXPENSES       13,677       9,564      25,818      18,732

    (LOSS) INCOME FROM
     OPERATIONS                    (6,317)     12,935     (12,725)     16,689

    OTHER INCOME(EXPENSE)
      Interest income                 617         764       1,737       1,642
      Finance/interest
       expense                    (16,464)    (11,309)    (27,427)    (14,247)
      Change in fair value
       of derivative
       liabilities                 10,729     (26,726)     14,668     (22,611)
      Gain from debt
       extinguishment                  --          --          --       2,930
      Government grant                 --          --          --       3,520
      Income from equity
       investments                  3,074       2,753       4,756       2,698
      Other non-operating
       income, net                    571         142         567         652
           Total other
            expense, net           (1,473)    (34,376)     (5,699)    (25,416)

    LOSS BEFORE PROVISION FOR
     INCOME TAXES AND
     NONCONTROLLING INTEREST       (7,790)    (21,442)    (18,424)     (8,728)

    PROVISION FOR INCOME TAXES
      Current                      (5,093)      3,230      (4,472)      3,394
      Deferred                      2,253      (1,222)       (335)         --
          Total (benefit)
           provision for
           income taxes            (2,840)      2,008      (4,807)      3,394

    NET LOSS BEFORE
     NONCONTROLLING INTEREST       (4,950)    (23,450)    (13,617)    (12,122)

    Less: Net (Loss) income
     attributable to
     noncontrolling interest       (2,822)      8,340      (5,982)     12,333

    NET LOSS ATTRIBUTABLE TO
     CONTROLLING INTEREST          (2,128)    (31,790)     (7,635)    (24,455)

    OTHER COMPREHENSIVE INCOME
     (LOSS)
      Foreign currency
       translation
       adjustments                    361         163          62         (14)
      Comprehensive income
       (loss) attributable
       to noncontrolling
       interest                        (1)     (1,031)        164      (1,106)

    COMPREHENSIVE LOSS            $(1,768)   $(32,658)    $(7,409)   $(25,575)

    WEIGHTED AVERAGE NUMBER
     OF SHARES
      Basic & Diluted          52,111,605  39,533,099  51,883,491  37,918,177

    LOSS PER SHARE
      Basic & Diluted              $(0.04)     $(0.80)     $(0.15)     $(0.64)



                  GENERAL STEEL HOLDINGS, INC. AND SUBSIDIARIES

                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                        FOR THE SIX MONTHS ENDED JUNE 30,
                                   (UNAUDITED)
                      (In thousands, except per share data)

                                                     Six months ended June 30,
                                                      2010              2009
    CASH FLOWS FROM OPERATING ACTIVITIES:
      Net loss attributable to controlling
       interest                                     $(7,635)         $(24,455)
      Net (loss) income attributable to
       noncontrolling interest                       (5,982)           12,333
      Consolidated net loss                         (13,617)          (12,122)
      Adjustments to reconcile net loss to
       cash (used in) provided by
       operating activities:
        Depreciation and amortization                19,334            13,478
        Debt extinguishment                                            (2,930)
        Inventory written-off                         6,528
        Impairment of long-lived assets               1,733
        (Gain) Loss on disposal of equipment            123            (3,431)
        Stock issued for services and
         compensation                                 1,507               636
        Make whole shares interest expense
         on notes conversion                                            6,455
        Income from investment                       (4,756)           (2,699)
        Amortization of deferred note
         issuance cost and discount on
         convertible notes                               13                43
        Change in fair value of derivative
         instrument                                 (14,668)           22,612
        Deferred tax assets                          (5,501)            2,166
      Changes in operating assets and
       liabilities
        Notes receivable                            (26,939)            4,915
        Accounts receivable                         (12,047)           (7,924)
        Accounts receivable - related parties        (1,015)                0
        Other receivables                            (1,570)             (362)
        Other receivables - related parties           2,300           (14,993)
        Inventories                                 (85,941)          (84,204)
        Advances on inventory purchases             (11,512)           11,271
        Advances on inventory purchases -
         related parties                             (5,431)          (13,021)
        Accounts payable                             35,734            59,067
        Accounts payable - related parties           37,605            15,283
        Other payables and accrued liabilities        2,426            19,183
        Other payables - related parties             20,495            15,749
        Customer deposits                           (20,269)           16,160
        Customer deposits - related parties          25,081            (3,574)
        Taxes payable                                 4,966           (12,769)
          Net cash (used in) provided by
           operating activities                     (45,421)           28,990

    CASH FLOWS FROM INVESTING ACTIVITIES:
      Acquired long term investment                  (1,273)           (6,593)
      Cash proceeds from disposal of long-
       term investment                                3,667
      Dividend receivable                            (1,554)
      Long term other receivables                                       1,215
      Deposits due to sales
       representatives                               18,663            31,933
      Cash proceeds from sales of
       equipment                                         60             4,414
      Advance on equipment purchases                (10,268)            3,065
      Equipments purchase and intangible
       assets                                       (29,240)          (60,388)
      Payments to original shareholders              (2,460)
          Net cash used in investing
           activities                               (22,405)          (26,354)

    CASH FLOWS FINANCING ACTIVITIES:
      Restricted cash                               (76,526)
      Notes receivable - restricted                 (24,223)          (69,727)
      Borrowings on short term loans -
       bank                                         133,196            72,816
      Payments on short term loans - bank          (105,485)          (43,353)
      Borrowings on short term loan -
       others                                        72,083            79,354
      Payments on short term loans -
       others                                       (89,878)          (63,899)
      Payments on short term loans -
       others-related parties                        (4,401)            2,931
      Borrowings on short term notes
       payable                                      408,476           371,614
      Payments on short term notes payable         (276,594)         (303,327)
          Net cash provided by financing
           activities                                36,648            46,409

    EFFECTS OF EXCHANGE RATE CHANGE IN CASH            (168)               (9)

    (DECREASE) INCREASE IN CASH                     (31,346)           49,036

    CASH, beginning of period                        82,118            14,895

    CASH, end of period                             $50,772           $63,931



                  GENERAL STEEL HOLDINGS, INC. AND SUBSIDIARIES

                   CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
                      (In thousands, except per share data)

                           Preferred stock        Common stock
                                                                      Paid-in
                          Shares   Par value    Shares    Par value   capital

    BALANCE, December
     31, 2008           3,092,899      $3.00  36,128,833    $36.00    $37,129

     Net loss
      attributable to
      controlling
      interest
     Net income
      attributable to
      noncontrolling
      interest
     Disposal of
      subsidiaries
     Distribution of
      dividend to
      noncontrolling
      shareholders
     Adjustment to
      statutory reserve
     Common stocks
      issued for
      compensation                               216,000      0.22        498
     Common stock issued
      for interest
      payment                                    152,240      0.15        558
     Common stock issued
      for repayment of
      debt                                       300,000      0.30      1,800
     Common stock
      transferred by CEO
      for compensation                                                    138
     Notes converted to
      common stock                             5,104,596      5.11     24,125
     Make whole shares
      issued on notes
      conversion                               1,399,759      1.40      5,565
     Reduction of
      Registered Capital
     Foreign currency
      translation
      adjustments

    BALANCE, June 30,
     2009, unaudited    3,092,899      $3.00  43,301,428    $43.00    $69,813

     Net loss
      attributable to
      controlling
      interest
     Net income
      attributable to
      noncontrolling
      interest
     Distribution of
      dividend to
      noncontrolling
      shareholders
     Adjustment to
      statutory reserve
     Common stock issued
      for compensation                           380,650      0.55      1,377
     Common stock issued
      for interest
      payments                                    44,065      0.05        187
     Common stock
      transferred by CEO
      for compensation                                                    138
     Notes converted to
      common stock                             1,940,678      1.95      7,947
     Make whole shares
      issued on notes
      conversion                                 396,218      0.40      1,520
     Common stock issued
      for private
      placement                                5,555,556      5.56     14,606
     Foreign currency
      translation
      adjustments

    BALANCE, December
     31, 2009           3,092,899      $3.00  51,618,595    $51.51    $95,588

     Net loss
      attributable to
      controlling
      interest
     Net loss
      attributable to
      noncontrolling
      interest
     Distribution of
      dividend to
      noncontrolling
      shareholders
     Noncontrolling
      interest acquired
     Adjustment to
      special reserve
     Common stock issued
      for compensation                           405,750      0.41      1,369
     Common stock issued
      for repayment of
      debt                                       928,163      0.93      2,403
     Common stock
      transferred by CEO
      for compensation                                                    138
     Foreign currency
      translation
      adjustments

    BALANCE, June 30,
     2010, unaudited    3,092,899      $3.00  52,952,508    $52.84    $99,498


                                              Retained earnings /
                                             Accumulated deficits
                                          Statutory               Contribution
                                           reserves   Unrestricted  receivable

    BALANCE, December 31, 2008               $4,902        $10,092      $(960)

      Net loss attributable to
       controlling interest                                (24,455)
      Net income attributable to
       noncontrolling interest
      Disposal of subsidiaries
      Distribution of dividend to
       noncontrolling shareholders
      Adjustment to statutory reserve           260           (260)
      Common stocks issued for
       compensation
      Common stock issued for interest
       payment
      Common stock issued for repayment
       of debt
      Common stock transferred by CEO
       for compensation
      Notes converted to common stock
      Make whole shares issued on notes
       conversion
      Reduction of Registered Capital                                     960
      Foreign currency translation
       adjustments

    BALANCE, June 30, 2009, unaudited        $5,162       $(14,623)        $0

      Net loss attributable to
       controlling interest                                   (789)
      Net income attributable to
       noncontrolling interest
      Distribution of dividend to
       noncontrolling shareholders
      Adjustment to statutory reserve         1,000         (1,000)
      Common stock issued for
       compensation
      Common stock issued for interest
       payments
      Common stock transferred by CEO
       for compensation
      Notes converted to common stock
      Make whole shares issued on notes
       conversion
      Common stock issued for private
       placement
      Foreign currency translation
       adjustments

    BALANCE, December 31, 2009               $6,162       $(16,412)        $0

      Net loss attributable to
       controlling interest                                 (7,635)
      Net loss attributable to
       noncontrolling interest
      Distribution of dividend to
       noncontrolling shareholders
      Noncontrolling interest acquired
      Adjustment to special reserve             379
      Common stock issued for
       compensation
      Common stock issued for repayment
       of debt
      Common stock transferred by CEO
       for compensation
      Foreign currency translation
       adjustments

    BALANCE, June 30, 2010, unaudited        $6,541       $(24,047)        $0


                                       Accumulated other   Noncon-
                                         comprehensive    trolling
                                             income       interest     Totals

    BALANCE, December 31, 2008               $8,705        $54,330   $114,237

      Net loss attributable to
       Controlling interest                                           (24,455)
      Net income attributable to
       noncontrolling interest                              12,333     12,333
      Disposal of subsidiaries                                (293)      (293)
      Distribution of dividend to
       noncontrolling shareholders                            (556)      (556)
      Adjustment to statutory reserve                                       0
      Common stocks issued for
       compensation                                                       498
      Common stock issued for interest
       payment                                                            558
      Common stock issued for repayment
       of debt                                                          1,800
      Common stock transferred by CEO
       for compensation                                                   138
      Notes converted to common stock                                  24,130
      Make whole shares issued on notes
       conversion                                                       5,566
      Reduction of Registered Capital                                     960
      Foreign currency translation
       adjustments                              (14)        (1,106)    (1,120)

    BALANCE, June 30, 2009, unaudited        $8,691        $64,708   $133,797

      Net loss attributable to
       controlling interest                                              (789)
      Net income attributable to
       noncontrolling interest                               9,230      9,230
      Distribution of dividend to
       noncontrolling shareholders                          (2,749)    (2,749)
      Adjustment to statutory reserve                                       0
      Common stock issued for
       compensation                                                     1,378
      Common stock issued for interest
       payments                                                           187
      Common stock transferred by CEO
       for compensation                                                   138
      Notes converted to common stock                                   7,949
      Make whole shares issued on notes
       conversion                                                       1,520
      Common stock issued for private
       placement                                                       14,612
      Foreign currency translation
       adjustments                             (355)         1,409      1,054

    BALANCE, December 31, 2009               $8,336        $72,598   $166,327

      Net loss attributable to
       controlling interest                                            (7,635)
      Net loss attributable to
       noncontrolling interest                              (5,982)    (5,982)
      Distribution of dividend to
       noncontrolling shareholders                          (1,045)    (1,045)
      Noncontrolling interest acquired                      (1,270)    (1,270)
      Adjustment to special reserve                                       379
      Common stock issued for
       compensation                                                     1,369
      Common stock issued for repayment
       of debt                                                          2,404
      Common stock transferred by CEO
       for compensation                                                   138
      Foreign currency translation
       adjustments                               62            164        226

    BALANCE, June 30, 2010, unaudited        $8,398        $64,465   $154,911

Pursuant to the Xi Luo Du hydropower project contract, the Company will supply 135,000 metric tons of rebar during years 2010 through 2013, with 60,000 metric tons estimated for shipment in 2010. Pursuant to the Xiang Jia Ba hydropower project contract, the Company will supply 105,000 metric tons of rebar during years 2010 through 2013, with 40,000 metric tons estimated for shipment this year. The Company's Longmen Joint Venture won both contracts as a "lead-supplier" and will supply 50% of construction steel needed for both projects.

"Our Longmen Joint Venture facility continues to be extremely well-positioned, both geographically and strategically, to benefit from ongoing government investment in rural China's infrastructure development," said General Steel's Chairman and Chief Executive Officer Henry Yu. "With a strong reputation for quality production, these contract wins will enhance our Longmen facility's market advantage in the western inland region, particularly in Sichuan and Yunnan provinces, and we will play a more important role as a construction steel producer in this rapidly developing area."

Located in Sichuan province, the Xi Luo Du hydropower project is one of four large hydropower projects currently under construction on the Jin Sha river. It is expected to generate electrical energy of 57.1 billion kilowatts and will be the third largest hydropower plant in the world and second largest in China. The total investment of this project is approximately RMB79.2 billion, or approximately US$11.6 billion.

The Xiang Jia Ba hydropower project is located at the junction of Sichuan and Yunnan provinces. It is expected to generate electrical energy of 30.7 billion kilowatts. The total investment for this project is approximately RMB28.9 billion, or approximately US$4.25 billion.

About General Steel Holdings, Inc.

General Steel Holdings, Inc., (NYSE: GSI), headquartered in Beijing, China, operates a diverse portfolio of Chinese steel companies. With 6.3 million metric tons of aggregate production capacity, its companies serve various industries and produce a variety of steel products including rebar, hot-rolled carbon and silicon sheet, high-speed wire and spiral-weld pipe. General Steel Holdings, Inc. has steel operations in Shaanxi and Guangdong provinces, Inner Mongolia Autonomous Region and Tianjin municipality. For more information, please visit http://www.gshi-steel.co... .

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. Actual results could differ materially from those projected in the forward-looking statements as a result of inaccurate assumptions or a number of risks and uncertainties. These risks and uncertainties are set forth in the Company's filings under the Securities Act of 1933 and the Securities Exchange Act of 1934 under "Risk Factors" and elsewhere, and include: (a) those risks and uncertainties related to general economic conditions in China, including regulatory factors that may affect such economic conditions; (b) whether the Company is able to manage its planned growth efficiently and operate profitable operations, including whether its management will be able to identify, hire, train, retain, motivate and manage required personnel or that management will be able to successfully manage and exploit existing and potential market opportunities; (c) whether the Company is able to generate sufficient revenues or obtain financing to sustain and grow its operations; (d) whether the Company is able to successfully fulfill our primary requirements for cash; and (e) other risks, including those disclosed in the Company's Form 10-K, filed with the SEC. 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.

    For investor and media inquiries, please contact:

    In China:

     Jing Ou-Yang
     General Steel Holdings, Inc.
     Tel:   +86-10-5879-7346
     Email: jing.ouyang@gshi-steel.com

     Justin Knapp
     Ogilvy Financial, Beijing
     Tel:   +86-10-8520-6556
     Email: gsi@ogilvy.com

    In the United States:

     Jessica Barist Cohen
     Ogilvy Financial, New York
     Tel:   +1-646-460-9989
     Email: gsi@ogilvy.com

The Company sold the securities in "units" at a price of $4.50 per unit. Each unit consists of one share of Common Stock and a two and one half year warrant to purchase 0.50 of an additional share of Common Stock. The warrants have an exercise price of $5.00 per share and are exercisable commencing six months and one day after closing.

Certain anti-dilution adjustment provisions contained in the Company's common stock purchase warrants originally issued on December 13, 2007 ("December 2007 Warrants") may have been triggered by the Company's sale of the units. Rather than giving full effect to the anti-dilution provisions, the Company and the holders of the December 2007 Warrants entered into an agreement whereby the aggregate number of shares of common stock issuable upon exercise of the December 2007 Warrants is increased from 1,154,958 shares to 3,900,871 shares, and the exercise price of the December 2007 Warrants was reduced from $13.51 per share to $5.00 per share.

Rodman & Renshaw, LLC, a subsidiary of Rodman & Renshaw Capital Group, Inc. (Nasdaq: RODM) acted as the lead placement agent for the transaction and FT Global Capital, Inc., acted as co-lead placement agent for the transaction.

This press release does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. Any offer will be made only by means of a prospectus, including a prospectus supplement, forming a part of the effective registration statement. Copies of the prospectus supplement together with the accompanying prospectus can be obtained at the Securities and Exchange Commission's website at http://www.sec.gov.

About General Steel Holdings, Inc.

General Steel Holdings, Inc., (NYSE: GSI), headquartered in Beijing, China, operates a diverse portfolio of Chinese steel companies. With 6.3 million metric tons of aggregate production capacity, its companies serve various industries and produce a variety of steel products including rebar, hot-rolled carbon and silicon sheet, high-speed wire and spiral-weld pipe. General Steel Holdings, Inc. has steel operations in Shaanxi and Guangdong provinces, Inner Mongolia Autonomous Region and Tianjin municipality. For more information, please visit http://www.gshi-steel.co... .

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. Actual results could differ materially from those projected in the forward-looking statements as a result of inaccurate assumptions or a number of risks and uncertainties. These risks and uncertainties are set forth in the Company's filings under the Securities Act of 1933 and the Securities Exchange Act of 1934 under "Risk Factors" and elsewhere, and include: (a) those risks and uncertainties related to general economic conditions in China, including regulatory factors that may affect such economic conditions; (b) whether the Company is able to manage its planned growth efficiently and operate profitable operations, including whether its management will be able to identify, hire, train, retain, motivate and manage required personnel or that management will be able to successfully manage and exploit existing and potential market opportunities; (c) whether the Company is able to generate sufficient revenues or obtain financing to sustain and grow its operations; (d) whether the Company is able to successfully fulfill our primary requirements for cash and (e) other risks, including those disclosed in the Company's Form 10-K, filed with the SEC. 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.

    For investor and media inquiries, please contact:

    In China:
     Jing Ou-Yang
     General Steel Holdings, Inc.
     Tel:   +86-10-5879-7346
     Email: jing.ouyang@gshi-steel.com

     Justin Knapp
     Ogilvy Financial, Beijing
     Tel:   +86-10-8520-6556
     Email: gsi@ogilvy.com

    In the United States:
     Jessica Barist Cohen
     Ogilvy Financial, New York
     Tel:   +1-646-460-9989
     Email: gsi@ogilvy.com

The securities are being offered in "units" at a price of $4.50 per unit. Each unit consists of one share of Common Stock and a two and one half year warrant to purchase 0.50 of an additional share of Common Stock. The warrants have an exercise price of $5.00 per share and are exercisable commencing six months and one day after closing.

Certain anti-dilution adjustment provisions contained in the Company's common stock purchase warrants originally issued on December 13, 2007 ("December 2007 Warrants") may have been triggered by the Company's sale of the units. Rather than giving full effect to the anti-dilution provisions, the Company and the holders of the December 2007 Warrants entered into an agreement whereby the aggregate number of shares of common stock issuable upon exercise of the December 2007 Warrants is increased from 1,154,958 shares to 3,900,871 shares, and the exercise price of the December 2007 Warrants was reduced from $13.51 per share to $5.00 per share.

Rodman & Renshaw, LLC, a subsidiary of Rodman & Renshaw Capital Group, Inc. (Nasdaq: RODM) acted as the lead placement agent for the transaction and FT Global Capital, Inc., acted as co-lead placement agent for the transaction.

This press release does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. Any offer will be made only by means of a prospectus, including a prospectus supplement, forming a part of the effective registration statement. Copies of the prospectus supplement together with the accompanying prospectus can be obtained at the Securities and Exchange Commission's website at http://www.sec.gov.

About General Steel Holdings, Inc.

General Steel Holdings, Inc., (NYSE: GSI), headquartered in Beijing, China, operates a diverse portfolio of Chinese steel companies. With 6.3 million metric tons of aggregate production capacity, its companies serve various industries and produce a variety of steel products including rebar, hot-rolled carbon and silicon sheet, high-speed wire and spiral-weld pipe. General Steel Holdings, Inc. has steel operations in Shaanxi and Guangdong provinces, Inner Mongolia Autonomous Region and Tianjin municipality. For more information, please 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. Actual results could differ materially from those projected in the forward-looking statements as a result of inaccurate assumptions or a number of risks and uncertainties. These risks and uncertainties are set forth in the Company's filings under the Securities Act of 1933 and the Securities Exchange Act of 1934 under "Risk Factors" and elsewhere, and include: (a) those risks and uncertainties related to general economic conditions in China, including regulatory factors that may affect such economic conditions; (b) whether the Company is able to manage its planned growth efficiently and operate profitable operations, including whether its management will be able to identify, hire, train, retain, motivate and manage required personnel or that management will be able to successfully manage and exploit existing and potential market opportunities; (c) whether the Company is able to generate sufficient revenues or obtain financing to sustain and grow its operations; (d) whether the Company is able to successfully fulfill our primary requirements for cash and (e) other risks, including those disclosed in the Company's Form 10-K, filed with the SEC. 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.

With over 100 distributors attending the conference, General Steel locked in approximately 70% of 2010 targeted total sales volume through cooperation agreements with distributors. At and following the conference, the Company signed cooperation agreements with eight distributors at the "Strategic Partner" level, with each contract amounting to 180,000 metric tons of purchasing volume. In addition, the Company secured cooperation agreements with thirty distributors at the "Major Distributor" level, with the purchasing volume of each contract ranging from 30,000 to 80,000 metric tons.

"We are encouraged by the result of our annual distributor conference," said General Steel's chairman and chief executive officer Henry Yu. "Demand for our steel products remains robust as illustrated by the fulfillment of approximately 70% of our targeted 2010 sales volume through cooperation agreements with distributors, all of whom have proven dependable in upholding contractual obligations in past years. Going forward, we are well positioned to capture the remaining 30% of 2010 sales through individual contracts throughout the year, as the Chinese government continues to emphasize infrastructure-related investment and development in our addressable markets, notably within the newly established Guanzhong-Tianshui Economic Zone."

According to government reports, the Guanzhong-Tianshui Economic Zone will begin to receive significant government infrastructure-related spending in 2010. The economic zone covers approximately 70,000 square kilometers spanning two western provinces and seven cities. General Steel's Longmen JV facility is located in the northern part of this zone and with the recent opening of a sales office in Tianshui, the Company is strategically located to capture the construction-related demand for steel as the economic zone becomes more established.

About General Steel Holdings, Inc.

General Steel Holdings, Inc., (NYSE: GSI), headquartered in Beijing, China, operates a diverse portfolio of Chinese steel companies. With 6.3 million metric tons of aggregate production capacity, its companies serve various industries and produce a variety of steel products including rebar, hot-rolled carbon and silicon sheet, high-speed wire and spiral-weld pipe. General Steel Holdings, Inc. has steel operations in Shaanxi and Guangdong provinces, Inner Mongolia Autonomous Region and Tianjin municipality. For more information, please visit http://www.gshi-steel.co... .

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. Actual results could differ materially from those projected in the forward-looking statements as a result of inaccurate assumptions or a number of risks and uncertainties. These risks and uncertainties are set forth in the Company's filings under the Securities Act of 1933 and the Securities Exchange Act of 1934 under "Risk Factors" and elsewhere, and include: (a) those risks and uncertainties related to general economic conditions in China, including regulatory factors that may affect such economic conditions; (b) whether the Company is able to manage its planned growth efficiently and operate profitable operations, including whether its management will be able to identify, hire, train, retain, motivate and manage required personnel or that management will be able to successfully manage and exploit existing and potential market opportunities; (c) whether the Company is able to generate sufficient revenues or obtain financing to sustain and grow its operations; (d) whether the Company is able to successfully fulfill our primary requirements for cash and (e) other risks, including those disclosed in the Company's Form 10-K, filed with the SEC. 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.

    For investor and media inquiries, please contact:

    In China:

     Jing Ou-Yang
     General Steel Holdings, Inc.
     Phone: +86-10-5879-7346
     Email: jing.ouyang@gshi-steel.com

     Justin Knapp
     Ogilvy Financial, Beijing
     Phone: +86-10-8520-6556
     Email: gsi@ogilvy.com

    In the United States:

     Jessica Barist Cohen
     Ogilvy Financial, New York
     Phone: +1-646-460-9989
     Email: gsi@ogilvy.com

More than 100 distributors from provinces including Gansu, Hubei, Inner Mongolia, Shaanxi and Sichuan are expected to participate in the event. The Company classifies its distributors by three categories: Strategic Partner, Major Distributor and General Distributor based on annual sales volume and market share within its geographic region. Different payment terms and conditions for the Company's products are given to distributors based upon their classification.

"Our goal for the event is to lock-in around 70% of our 2010 total sales volume with distributors while the rest of the sales will be made by direct contracts throughout the year," said General Steel's Chairman and Chief Executive Officer Henry Yu. "Based upon our preliminary discussions with distributors, we are confident that we will be able to achieve this goal as we continue to experience strong demand for our products in our addressable markets, in particular, Shaanxi and Sichuan provinces which are benefiting from China's intensive stimulus-related spending on infrastructure and earthquake rebuilding projects. In addition, Gansu province, which through the newly created Guanzhong-Tianshui Economic Zone, will undergo significant infrastructure-related development in the coming years."

China's State Council Information Office approved the Guanzhong-Tianshui Economic Zone development program in June of 2009. The economic zone covers approximately 70,000 square kilometers spanning two western provinces and seven cities with construction planned from 2009 to 2020. General Steel's Longmen JV is located in the northern part of the zone and in September of 2009, the Company opened a sales office in Tianshui. The Company believes that demand for its products will continue to grow as the economic zone becomes more established and the government encourages additional "Go West" development objectives.

About General Steel Holdings, Inc.

General Steel Holdings, Inc., (NYSE: GSI), headquartered in Beijing, China, operates a diverse portfolio of Chinese steel companies. With 6.3 million metric tons of aggregate production capacity, its companies serve various industries and produce a variety of steel products including rebar, hot-rolled carbon and silicon sheet, high-speed wire and spiral-weld pipe. General Steel Holdings, Inc. has steel operations in Shaanxi and Guangdong provinces, Inner Mongolia Autonomous Region and Tianjin municipality. For more information, please visit http://www.gshi-steel.co... .

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. Actual results could differ materially from those projected in the forward-looking statements as a result of inaccurate assumptions or a number of risks and uncertainties. These risks and uncertainties are set forth in the Company's filings under the Securities Act of 1933 and the Securities Exchange Act of 1934 under "Risk Factors" and elsewhere, and include: (a) those risks and uncertainties related to general economic conditions in China, including regulatory factors that may affect such economic conditions; (b) whether the Company is able to manage its planned growth efficiently and operate profitable operations, including whether its management will be able to identify, hire, train, retain, motivate and manage required personnel or that management will be able to successfully manage and exploit existing and potential market opportunities; (c) whether the Company is able to generate sufficient revenues or obtain financing to sustain and grow its operations; (d) whether the Company is able to successfully fulfill our primary requirements for cash and (e) other risks, including those disclosed in the Company's Form 10-K, filed with the SEC. 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.

    For investor and media inquiries, please contact:

    In China:

     Jing Ou-Yang
     General Steel Holdings, Inc.
     Phone: +86-10-5879-7346
     Email: jing.ouyang@gshi-steel.com

     Justin Knapp
     Ogilvy Financial, Beijing
     Phone: +86-10-8520-6556
     Email: gsi@ogilvy.com

    In the United States:

     Jessica Barist Cohen
     Ogilvy Financial, New York
     Phone: +1-646-460-9989
     Email: gsi@ogilvy.com

At the conference, members of General Steel's management team will also hold one-on-one meetings with investors to discuss the Company's business strategy.

Since 2003, China Entrepreneurs has worked as a professional platform dedicated to deepening the understanding of entrepreneurship and growth opportunities in China. For more information on the event, visit http://www.ce-premier.co... .

About General Steel Holdings, Inc.

General Steel Holdings, Inc., (NYSE: GSI - News), headquartered in Beijing, China, operates a diverse portfolio of Chinese steel companies. With 6.3 million metric tons of aggregate production capacity, its companies serve various industries and produce a variety of steel products including rebar, hot-rolled carbon and silicon sheet, high-speed wire and spiral-weld pipe. General Steel Holdings, Inc. has steel operations in Shaanxi and Guangdong provinces, Inner Mongolia Autonomous Region and Tianjin municipality. For more information, please visit http://www.gshi-steel.co... .

    For more information, please contact:

    In China:
     Jing Ou-Yang
     General Steel Holdings, Inc.
     Tel:   +86-10-5879-7346
     Email: jing.ouyang@gshi-steel.com

     Justin Knapp
     Ogilvy Financial, Beijing
     Tel:   +86-10-8520-6556
     Email: gsi@ogilvy.com

    In the United States:
     Jessica Barist Cohen
     Ogilvy Financial, New York
     Tel:   +1-646-460-9989
     Email: gsi@ogilvy.com

    Details for the Company's presentation are as follows:

    Date:     Wednesday, December 2, 2009
    Time:     1:45 p.m. - 2:25 p.m. (local time)
    Location: Goldman Sachs Conference Center

At the conference, members of General Steel's management team will also hold one-on-one meetings with investors to discuss the Company's third quarter of 2009 financial results and business strategy.

About General Steel Holdings, Inc.

General Steel Holdings, Inc., (NYSE: GSI - News), headquartered in Beijing, China, operates a diverse portfolio of Chinese steel companies. With 6.3 million metric tons of aggregate production capacity, its companies serve various industries and produce a variety of steel products including rebar, hot-rolled carbon and silicon sheet, high-speed wire and spiral-weld pipe. General Steel Holdings, Inc. has steel operations in Shaanxi and Guangdong provinces, Inner Mongolia Autonomous Region and Tianjin municipality. For more information, please visit http://www.gshi-steel.co... .

For investor and media inquiries, please contact: In China: Jing Ou-Yang General Steel Holdings, Inc. Tel: +86-10-5879-7346 Email: jing.ouyang@gshi-steel.com Justin Knapp Ogilvy Financial, Beijing Tel: +86-10-8520-6556 Email: gsi@ogilvy.com In the United States: Jessica Barist Cohen Ogilvy Financial, New York Tel: +1-646-460-9989 Email: gsi@ogilvy.com

Upon closing, General Steel expects to benefit from Baotai's established market position producing and selling steel billet and strip steel in Hebei province as well as its geographical location approximately 100 kilometers from the Tangshan port, which gives Baotai access to high-quality imported iron ore at minimal transportation costs. In addition, Baotai has annualized capacity of 1.5 million metric tons, which will increase General Steel's aggregate capacity by over 23% to 7.8 million metric tons and further its goal of becoming one of China's largest and most profitable steel companies.

"We have a unique value proposition that makes us well-suited to lead in China's steel industry consolidation effort," said Mr. Henry Yu, General Steel's chairman and chief executive officer. "Our competitive advantage is our established track record of both acquiring private companies with outstanding potential as well as buying the prime assets of state-owned enterprises through joint-ventures. With access to the western capital markets, we are able to inject currency to improve the profitability of acquired assets while simultaneously stimulating economic development. In order to meet our partnership requirements, the management teams of the companies we acquire must have established track records, a deep understanding of their local market and be willing to stay on board with a long-term vested interest in the venture's performance. After extensive dialogue, it is clear that Baotai's interests and vision are aligned with ours and we are excited to take the next steps in forming our mutually beneficial partnership."

Mr. Baocai Wang, Baotai's chairman, commented, "This agreement lays the foundation for an exciting future as a member of the larger General Steel group. As the catalysts for consolidation continue to strengthen in China, this partnership will provide us with a strategic opportunity to continue growing while maintaining our operational team. We are eager to capitalize on the benefits and synergies that come with being part of General Steel's larger-scale, forward-thinking and uniquely positioned steel group in China."

The completion of this acquisition is subject to certain conditions, including satisfactory completion of appraisals, audit and customary due diligence as well as the execution of a definitive agreement. If a definitive agreement is reached, General Steel anticipates providing further details including specific financial terms on this proposed transaction upon execution thereof.

If this transaction is consummated, General Steel is expected to have approximately 10,000 employees and operate five subsidiaries based in China producing a variety of steel products including rebar, steel billet and strip steel, hot-rolled carbon and silicon sheet, high-speed wire and spiral-weld pipe.

About Tangshan Baotai Iron and Steel Group Co., Ltd.

An integrated steel producer founded in 2002, Tangshan Baotai Iron and Steel Group Co., Ltd. is located in Tangshan city, Hebei province in northeastern China, 100 kilometers from the Tangshan port. It has an aggregate production capacity of 1.5 million metric tons and focuses sales within the domestic market.

About General Steel Holdings, Inc.

General Steel Holdings, Inc., (NYSE: GSI - News), headquartered in Beijing, China, operates a diverse portfolio of Chinese steel companies. With 6.3 million metric tons of aggregate production capacity, its companies serve various industries and produce a variety of steel products including rebar, hot-rolled carbon and silicon sheet, high-speed wire and spiral-weld pipe. General Steel Holdings, Inc. has steel operations in Shaanxi and Guangdong provinces, Inner Mongolia Autonomous Region and Tianjin municipality. For more information, please visit http://www.gshi-steel.co... .

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. Actual results could differ materially from those projected in the forward-looking statements as a result of inaccurate assumptions or a number of risks and uncertainties. These risks and uncertainties are set forth in the Company's filings under the Securities Act of 1933 and the Securities Exchange Act of 1934 under "Risk Factors" and elsewhere, and include: (a) those risks and uncertainties related to general economic conditions in China, including regulatory factors that may affect such economic conditions; (b) whether the Company is able to manage its planned growth efficiently and operate profitable operations, including whether its management will be able to identify, hire, train, retain, motivate and manage required personnel or that management will be able to successfully manage and exploit existing and potential market opportunities; (c) whether the Company is able to generate sufficient revenues or obtain financing to sustain and grow its operations; (d) whether the Company is able to successfully fulfill our primary requirements for cash and (e) other risks, including those disclosed in the Company's Form 10-K, filed with the SEC. 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.

    For investor and media inquiries, please contact:

    In China:
     Jing Ou-Yang
     General Steel Holdings, Inc.
     Tel:   +86-10-5879-7346
     Email: jing.ouyang@gshi-steel.com

     Justin Knapp
     Ogilvy Financial, Beijing
     Tel:   +86-10-8520-6556
     Email: gsi@ogilvy.com

    In the United States:
     Jessica Barist Cohen
     Ogilvy Financial, New York
     Tel:   +1-646-460-9989
     Email: gsi@ogilvy.com

BEIJING, Nov. 6 /PRNewswire-Asia-FirstCall/ -- General Steel Holdings, Inc. ("General Steel" or "the Company") (NYSE: GSI - News), one of China's leading non-state-owned producers of steel products and aggregators of domestic steel companies, today announced its financial results for the third quarter ended September 30, 2009.

    Third Quarter of 2009 Highlights
    -- Aggregate shipment volume increased 67.2% year-over-year to a record
       1,036,076 metric tons
    -- Total revenues increased 17.8% to a record $484.8 million from $411.5
       million in the third quarter of 2008
    -- Gross margin was 8.2%, compared to 5.5% in the previous quarter and
       -1.5% in the third quarter of 2008
    -- Income from operations increased to a record $29.2 million
    -- Net income was $10.4 million, or earnings per basic and diluted share
       of $0.23 and $0.22, respectively
    -- Established a sales office in one of western China's key economic
       development zones, Guanzhong-Tianshui Economic Zone

"We achieved record total revenues, shipment volume and income from operations during the quarter," said Mr. Henry Yu, General Steel's chairman and chief executive officer. "Our Longmen JV continues to benefit from a micro-trend in the domestic steel space, delivering construction-related steel to an increasing number of rural development and infrastructure projects. This helped gross margin at the subsidiary expand to more than 8% during the quarter, which is four consecutive quarters of improvement. Going forward, the accelerating momentum for significant industry consolidation combined with our unique platform and ability to create 'win-win' partnerships, has positioned us as one of the most sought out partners within the industry."

Selected Financial Results for the Third Quarter and Nine Months Ended September 30, 2009

Total revenues for the third quarter of 2009 increased 17.8% year-over-year to $484.8 million from $411.5 million in the year-ago period. Total revenues for the nine months ended September 30, 2009 increased 11.6% year-over-year to $1.2 billion from $1.1 billion in the year-ago period.

The increase in total revenues was predominantly due to increased shipment volumes at the Company's Shaanxi Longmen Iron and Steel Co., Ltd. joint venture ("Longmen JV"), which in the nine months ended September 30, 2009, increased 61.0% year-over-year as well as the Company's Maoming Hengda Steel Group, Limited ("Maoming") subsidiary, which in the nine months ended September 30, 2009, increased 617.7% year-over-year. The Company noted that the increase in shipment volumes helped to offset lower selling prices and declines at its Daqiuzhuang Metal subsidiary and Baotou Steel Pipe joint venture. The increase in total revenues was also attributable to the Company's Maoming acquisition, which took place on June 25, 2008. Total revenues for the nine months ended September 30, 2009 reflect a full nine months of operations, whereas the subsidiary did not exist in the same period last year.

Cost of Sales

Total cost of sales for the third quarter of 2009 increased 6.5% year-over-year to $445.0 million from $417.9 million in the year-ago period. Total cost of sales for the nine months ended September 30, 2009 increased 7.6% year-over-year to $1.1 billion from $1.0 billion in the year-ago period. Cost of sales principally consists of the cost of raw materials, labor, utilities, manufacturing costs, manufacturing-related depreciation and other fixed costs. The increase in cost of sales was mostly attributable to an increase in shipment volumes at the Company's Longmen JV and Maoming subsidiary in response to demand created by earthquake reconstruction and infrastructure-related stimulus projects.

Gross Profit

Gross profit for the third quarter of 2009 was $39.7 million compared to a gross loss of $6.3 million in the year-ago period. Gross profit for the nine months ended September 30, 2009 increased 154.7% year-over-year to $75.2 million from $29.5 million in the year-ago period. Gross margin for the third quarter of 2009 was 8.2%, compared to -1.5% in the year-ago period. Gross margin for the nine months ended September 30, 2009 was 6.2%, compared to 2.7% in the year-ago period.

Operating Expenses

Selling, general and administrative expenses for the third quarter of 2009 decreased 14.9% to $10.5 million, compared to $12.3 million in the year-ago period. Selling, general and administrative expenses for the nine months ended September 30, 2009 increased 3.0% to $29.2 million from $28.4 million in the year-ago period. Selling, general and administrative expenses were 2.2% and 3.0% of total revenues in the third quarters of 2009 and 2008, respectively, compared to 2.4% and 2.6% in the nine months ended September 30, 2009 and 2008, respectively. The Company noted that the year-over-year increase in selling, general and administrative expenses in the nine months ended September 30, 2009 was attributable to the addition of the Company's Maoming subsidiary, which did not exist in the year-ago period as well as a 61% increase in shipment volume at the Company's Longmen JV.

Finance and interest expenses for the third quarter of 2009 were $4.2 million, compared to $6.9 million in the year-ago period. Finance and interest expenses for the nine months ended September 30, 2009 were $18.4 million, compared to $19.1 million in the year-ago period. The reduction in finance and interest expense for the nine months ended September 30, 2009 was primarily due to interest paid on bank loans and the early redemption of notes receivable and various bank fees.

Net Income

Net income for the third quarter of 2009 was $10.4 million, compared to net income of $20.5 million in the year-ago period. Net loss for the nine months ended September 30, 2009 was $14.2 million, compared to net loss of $1.6 million in the year-ago period. The decrease in net income was due to a $29.9 million derivative instrument-related gain which occurred in the third quarter of 2008 and is a non-operating, non-cash gain related to a convertible bond and warrants issued in December of 2007.

Basic earnings per share was $0.23 in the third quarter of 2009 and $0.57 in the year-ago period.

Diluted earnings per share was $0.22 in the third quarter of 2009 and $0.57 in the year-ago period. Basic and diluted losses per share were $0.35 in the nine months ended September 30, 2009, compared to $0.05 in the year-ago period.

Balance Sheet

As of September 30, 2009, General Steel had cash and restricted cash of $251.9 million, compared to $145.6 million as of December 31, 2008. Accounts receivable was $12.2 million and accounts receivables - related parties was $2.8 million as of September 30, 2009, compared to accounts receivable of $8.3 million as of December 31, 2008. Convertible notes payable decreased to $912 thousand as of September 30, 2009, compared to $7.2 million as of December 31, 2008. Because $8.3 million in notes were converted to 1,940,678 shares of common stock from June 30, 2009 to September 30, 2009, total outstanding shares increased to 45.8 million as of September 30, 2009.

Conference Call

General Steel management will hold an earnings conference call at 8:00 a.m. U.S. Eastern Time on November 6, 2009 (9:00 p.m. Beijing/Hong Kong Time on November 6, 2009). On the call, management will discuss results and highlights from the quarter and answer questions.

The dial-in number and passcode for the conference call are as follows: U.S. Toll-free: +1-800-860-2442 Passcode: General Steel Holdings

The conference call will be broadcast live over the Internet and can be accessed by clicking the following link: http://www.gshi-steel.co... .

About General Steel Holdings, Inc.

General Steel Holdings, Inc., (NYSE: GSI - News), headquartered in Beijing, China, operates a diverse portfolio of Chinese steel companies. With 6.3 million metric tons aggregate production capacity, its companies serve various industries and produce a variety of steel products including rebar, hot-rolled carbon and silicon sheet, high-speed wire and spiral-weld pipe. General Steel Holdings, Inc. has steel operations in Shaanxi and Guangdong provinces, Inner Mongolia Autonomous Region and Tianjin municipality. For more information, please visit http://www.gshi-steel.co... .

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. Actual results could differ materially from those projected in the forward-looking statements as a result of inaccurate assumptions or a number of risks and uncertainties. These risks and uncertainties are set forth in the Company's filings under the Securities Act of 1933 and the Securities Exchange Act of 1934 under "Risk Factors" and elsewhere, and include: (a) those risks and uncertainties related to general economic conditions in China, including regulatory factors that may affect such economic conditions; (b) whether the Company is able to manage its planned growth efficiently and operate profitable operations, including whether its management will be able to identify, hire, train, retain, motivate and manage required personnel or that management will be able to successfully manage and exploit existing and potential market opportunities; (c) whether the Company is able to generate sufficient revenues or obtain financing to sustain and grow its operations; (d) whether the Company is able to successfully fulfill our primary requirements for cash and (e) other risks. 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.

For investor and media inquiries, please contact: In China: Ms. Jing Ou-Yang General Steel Holdings, Inc. Tel: +86-10-5879-7346 Email: jing.ouyang@gshi-steel.com Mr. Justin Knapp Ogilvy Financial, Beijing Tel: +86-10-8520-6556 Email: gsi@ogilvy.com In the United States: Ms. Jessica Barist Cohen Ogilvy Financial, New York Tel: +1-646-460-9989 Email: gsi@ogilvy.com GENERAL STEEL HOLDINGS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATION AND OTHER COMPREHENSIVE INCOME (UNAUDITED) (In thousands, except per share data) Three months ended Nine months ended September 30, September 30, 2009 2008 2009 2008 REVENUES $361,652 $325,911 $875,374 $781,918 REVENUES - RELATED PARTIES 123,099 85,610 341,118 308,198 TOTAL REVENUES 484,751 411,521 1,216,492 1,090,116 COST OF SALES 340,484 335,944 822,392 762,395 COST OF SALES - RELATED PARTIES 104,534 81,923 318,946 298,218 TOTAL COST OF SALES 445,018 417,867 1,141,338 1,060,612 GROSS PROFIT 39,733 (6,347) 75,154 29,504 SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 10,487 12,328 29,219 28,364 INCOME(LOSS) FROM OPERATIONS 29,246 (18,675) 45,935 1,140 OTHER INCOME(EXPENSE), NET Interest income 826 646 2,468 2,104 Finance/interest expense (4,174) (6,872) (18,422) (19,149) Change in fair value of derivative liabilities (617) 29,885 (23,228) 4,769 Gain from debt extinguishment -- 7,169 2,932 7,169 Government grant -- -- 3,433 -- Income from equity investments 963 -- 3,661 -- Other non-operating income, net (2,984) 899 (2,331) 1,919 Total other (expense) income, net (5,986) 31,727 (31,487) (3,189) INCOME(LOSS) BEFORE PROVISION FOR INCOME TAXES AND NONCONTROLLING INTEREST 23,260 13,051 14,448 (2,049) PROVISION FOR INCOME TAXES Current 6,717 (813) 12,451 1,147 Deferred (2,925) (1,271) (5,265) (1,694) Total provision (benefit) for income taxes 3,792 (2,084) 7,186 (547) NET INCOME(LOSS) BEFORE NONCONTROLLING INTEREST 19,468 15,135 7,262 (1,502) Less: Net income (Loss) attributable to noncontrolling interest 9,088 (5,329) 21,421 116 NET INCOME(LOSS) ATTRIBUTABLE TO CONTROLLING INTEREST 10,380 20,464 (14,159) (1,618) OTHER COMPREHENSIVE INCOME (LOSS): Foreign currency translation adjustments (247) 96 (175) 6,554 Comprehensive (loss) income attributable to noncontrolling interest 1,441 (295) 334 3,911 COMPREHENSIVE INCOME(LOSS) $11,574 $20,266 $(14,000) $8,846 WEIGHTED AVERAGE NUMBER OF SHARES Basic 44,973,882 35,687,891 40,295,924 35,157,579 Diluted 45,040,143 35,687,891 40,295,924 35,157,579 EARNINGS PER SHARE Basic $0.23 $0.57 $(0.35) $(0.05) Diluted $0.22 $0.57 $(0.35) $(0.05) GENERAL STEEL HOLDINGS INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS AS OF SEPTEMBER 30, 2009 AND DECEMBER 31, 2008 (In thousands, except per share data) ASSETS September 30, December 31, 2009 2008 (Unaudited) CURRENT ASSETS: Cash $54,289 $14,895 Restricted cash 197,584 130,700 Notes receivable 27,373 38,207 Accounts receivable, net of allowance for doubtful accounts of $612 and $401 as of September 30, 2009 and December 31, 2008, respectively 12,151 8,329 Accounts receivable - related parties 2,784 -- Other receivables, net of allowance for doubtful accounts of $566 and $564 as of September 30, 2009 and December 31, 2008, respectively 6,855 5,099 Other receivables - related parties 420 523 Dividend receivable 4,957 630 Inventories 221,502 59,549 Advances on inventory purchases 39,230 47,154 Advances on inventory purchases - related parties 17,853 2,375 Prepaid expenses - current 926 494 Deferred tax assets 2,191 7,487 588,115 315,444 PLANT AND EQUIPMENT, net 558,405 491,705 OTHER ASSETS: Advances on equipment purchases 7,069 8,965 Investment in unconsolidated subsidiaries 17,640 13,959 Prepaid expenses - non current 500 1,195 Prepaid expenses related party - non current 172 211 Long term other receivable 2,674 4,873 Intangible assets, net of accumulated amortization 24,020 24,556 Note issuance cost 964 4,218 Plant and equipment to be disposed 6,455 587 Total other assets 59,494 58,564 Total assets $1,206,014 $865,713 LIABILITIES AND EQUITY CURRENT LIABILITIES: Short term notes payable $280,134 $206,040 Accounts payable 175,309 149,239 Accounts payable - related parties 19,324 15,327 Short term loans - bank 151,050 67,840 Short term loans - others 110,171 87,834 Short term loans - related parties 8,362 7,350 Other payables 8,655 3,183 Other payable - related parties 2,074 677 Accrued liabilities 14,716 7,779 Customer deposits 199,909 141,102 Customer deposits - related parties -- 7,216 Deposits due to sales representatives 39,286 8,149 Taxes payable 13,317 13,917 Distribution payable to former shareholders 15,934 18,765 Deferred tax liability 103 -- Total current liabilities 1,038,344 734,418 CONVERTIBLE NOTES PAYABLE, net of debt discount of $2,388 and $26,095 as of September 30, 2009 and December 31, 2008, respectively 912 7,155 DERIVATIVE LIABILITIES 4,933 9,903 COMMITMENT AND CONTINGENCIES Total liabilities 1,044,189 751,476 EQUITY: Preferred stock, $0.001 par value, 50,000,000 shares authorized, 3,092,899 shares issued and outstanding as of September 30, 2009 and December 31, 2008, respectively 3 3 Common Stock, $0.001 par value, 200,000,000 shares authorized, 45,789,439 and 36,128,833 shares issued and outstanding as of September 30, 2009 and December 31, 2008, respectively 46 36 Paid-in-capital 79,924 37,129 Statutory reserves 6,827 4,903 Retained (deficits) earnings (5,992) 10,092 Contribution receivable -- (960) Accumulated other comprehensive income 8,531 8,706 Total equity 89,339 59,909 NONCONTROLLING INTERESTS 72,486 54,329 Total equity 161,825 114,237 Total liabilities and equity $1,206,014 $865,713

    Details for the Company's presentation are as follows:

    Date: Tuesday, November 10, 2009
    Time: 12:30 p.m. - 12:55 p.m. (local time)
    Location: Sofitel New York

At the conference, members of General Steel's management team will also hold one-on-one meetings with investors to discuss the Company's third quarter of 2009 financial results and business strategy.

About General Steel Holdings, Inc.

General Steel Holdings, Inc., (NYSE: GSI - News), headquartered in Beijing, China, operates a diverse portfolio of Chinese steel companies. With 6.3 million metric tons of aggregate production capacity, its companies serve various industries and produce a variety of steel products including rebar, hot-rolled carbon and silicon sheet, high-speed wire and spiral-weld pipe. General Steel Holdings, Inc. has steel operations in Shaanxi and Guangdong provinces, Inner Mongolia Autonomous Region and Tianjin municipality. For more information, please visit http://www.gshi-steel.co... .

For investor and media inquiries, please contact: In China: Jing Ou-Yang General Steel Holdings, Inc. Tel: +86-10-5879-7346 Email: jing.ouyang@gshi-steel.com Justin Knapp Ogilvy Financial, Beijing Tel: +86-10-8520-6556 Email: gsi@ogilvy.com In the United States: Jessica Barist Cohen Ogilvy Financial, New York Tel: +1-646-460-9989 Email: gsi@ogilvy.com

General Steel management will hold an earnings conference call at 8:00 a.m. U.S. Eastern Time on November 6, 2009 (9:00 p.m. Beijing/Hong Kong Time on November 6, 2009). Management will discuss results and highlights from the quarter and answer questions.

    The dial-in number and passcode for the conference call are as follows:

    U.S. Toll-free: +1-800-860-2442
    Passcode: General Steel Holdings

The conference call will be broadcast live over the Internet and can be accessed by clicking the following link: http://www.gshi-steel.co... .

About General Steel Holdings, Inc.

General Steel Holdings, Inc., (NYSE: GSI - News), headquartered in Beijing, China, operates a diverse portfolio of Chinese steel companies. With 6.3 million metric tons aggregate production capacity, its companies serve various industries and produce a variety of steel products including rebar, hot-rolled carbon and silicon sheet, high-speed wire and spiral-weld pipe. General Steel Holdings, Inc. has steel operations in Shaanxi and Guangdong provinces, Inner Mongolia Autonomous Region and Tianjin municipality. For more information, please visit http://www.gshi-steel.co... .

    For investor and media inquiries, please contact:

    In China:

     Jing Ou-Yang
     General Steel Holdings, Inc.
     Tel:   +86-10-5879-7346
     Email: jing.ouyang@gshi-steel.com

     Justin Knapp
     Ogilvy Financial, Beijing
     Tel:   +86-10-8520-6556
     Email: gsi@ogilvy.com

    In the United States:

     Jessica Barist Cohen
     Ogilvy Financial, New York
     Tel:   +1-646-460-9989
     Email: gsi@ogilvy.com

    Details for the Company's presentation are as follows:

     Date:     Thursday, September 17, 2009
     Time:     13:05 (local time)
     Location: Grand Hyatt Beijing

At the conference members of General Steel's management team will also hold one-on-one meetings with investors to discuss the Company's second quarter of 2009 financial results and business strategy.

About General Steel Holdings, Inc.

General Steel Holdings, Inc., (NYSE: GSI - News), headquartered in Beijing, China, operates a diverse portfolio of Chinese steel companies. With 6.3 million metric tons of aggregate production capacity, its companies serve various industries and produce a variety of steel products including rebar, hot-rolled carbon and silicon sheet, high-speed wire and spiral-weld pipe. General Steel Holdings, Inc. has steel operations in Shaanxi and Guangdong provinces, Inner Mongolia Autonomous Region and Tianjin municipality. For more information, please visit http://www.gshi-steel.co... .

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.

    For investor and media inquiries, please contact:

    In China:
     Jing Ou-Yang
     General Steel Holdings, Inc.
     Tel:   +86-10-5879-7346
     Email: jing.ouyang@gshi-steel.com

     Justin Knapp
     Ogilvy Financial, Beijing
     Tel:   +86-10-8520-6556
     Email: gsi@ogilvy.com

    In the United States:
     Jessica Barist Cohen
     Ogilvy Financial, New York
     Tel:   +1-646-460-9989
     Email: gsi@ogilvy.com

    Details for the Company's presentation are as follow:

    Date:     Thursday, September 10, 2009
    Time:     11:40 a.m. to 12:05 p.m. in Louis Salon (4th Floor)
              12:30 p.m. to 12:55 p.m. in Holmes II Salon (4th Floor)
    Location: New York Palace Hotel, New York, NY

At the conference, General Steel will also hold one-on-one meetings with investors to discuss the Company's second quarter of 2009 financial results and business strategy. More information about the Rodman & Renshaw Conference can be found at: http://www.rodm.com/conf... .

About General Steel Holdings, Inc.

General Steel Holdings, Inc., (NYSE: GSI - News), headquartered in Beijing, China, operates a diverse portfolio of Chinese steel companies. With 6.3 million metric tons of aggregate production capacity, its companies serve various industries and produce a variety of steel products including rebar, hot-rolled carbon and silicon sheet, high-speed wire and spiral-weld pipe. General Steel Holdings, Inc. has steel operations in Shaanxi and Guangdong provinces, Inner Mongolia Autonomous Region and Tianjin municipality. For more information, please visit http://www.gshi-steel.co... .

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.

    For investor and media inquiries, please contact:

    In China:
     Jing Ou-Yang
     General Steel Holdings, Inc.
     Tel:   +86-10-5879-7346
     Email: jing.ouyang@gshi-steel.com

     Justin Knapp
     Ogilvy Financial, Beijing
     Tel:   +86-10-8520-6556
     Email: gsi@ogilvy.com

    In the United States:
     Jessica Barist Cohen
     Ogilvy Financial, New York
     Tel:   +1-646-460-9989
     Email: gsi@ogilvy.com

BEIJING, May 11 /PRNewswire-Asia-FirstCall/ -- General Steel Holdings, Inc. ("General Steel" or "the Company") (NYSE: GSI - News), one of China's leading non- state-owned producers of steel products and aggregators of domestic steel companies, today announced its financial results for the first quarter of 2009 ended March 31, 2009.

    Highlights from the First Quarter of 2009:

    -- Shipment volume at Shaanxi Longmen Iron and Steel Co., Ltd. ("Longmen
       Joint Venture") reached record high of 654,681 metric tons, a 39.4%
       year-over-year increase
    -- Total revenues increased 10.7% to $322.8 million from $291.6 million in
       the first quarter of 2008
    -- Gross margin was 4.0%, compared to 4.5% in the first quarter of 2008
       and -8.3% in the previous quarter
    -- Net income increased 235.2% to $7.3 million, or $0.20 per basic and
       diluted share
    -- Net income less derivative impact (non-GAAP), defined as net income
       less impact of derivative gain or loss, was $3.2 million, or $0.09 per
       basic and diluted share

"I'm pleased to report a return to positive gross margin and net income in the first quarter," said Mr. Henry Yu, General Steel's chairman and chief executive officer. "Our investment in two, modern blast furnaces at our Longmen Joint Venture is allowing us to meet stimulus and earthquake rebuilding-related demand in our largest addressable market of Shaanxi and Sichuan provinces while decreasing our requirements for major inputs such as energy, coke and manpower. In fact, this increased demand resulted in record production and shipment volumes for the quarter. These achievements are indicative of our ability to consolidate state-owned and private companies with outstanding potential and improve their efficiency with modern equipment and management techniques."

Mr. Yu continued, "As we look at the remainder of 2009, I'm confident that spending on earthquake rebuilding and stimulus projects will continue to drive demand for our products. While the economic slowdown has made for challenging times for many steel companies, it is also creating numerous opportunities to acquire quality assets with excellent growth potential at attractive valuations. We were founded on an M&A platform, and will continue to play a significant role in the industry's consolidation as catalysts strengthen."

Selected Financial Results for the First Quarter of 2009

Revenues

Total revenues in the first quarter of 2009 increased 10.7% to $322.8 million from $291.6 million in the first quarter of 2008.

The year-over-year increase in total revenues was due to a significant increase in shipment volumes at the Company's Longmen Joint Venture, which were partially offset by decreases at other locations, as well as the timing of the acquisition of Maoming Hengda Steel Group Limited ("Maoming"), which began contributing to the Company's consolidated financial results on June 25, 2008.

Cost of Sales

Total cost of sales for the first quarter of 2009 increased 11.2% to $309.9 million from $278.6 million in the first quarter of 2008.

Cost of sales principally consists of the cost of raw materials, labor, utilities, manufacturing costs, manufacturing-related depreciation and other fixed costs. The increase in cost of sales was mostly attributable to an increase in production volume at the Company's Longmen Joint Venture facility in response to demand created by earthquake reconstruction and stimulus measures. The timing of the Maoming acquisition also contributed to the increase.

Gross Profit and Margin

Gross profit for the first quarter of 2009 decreased 0.5% year-over-year to $12.9 million from $13.0 million in the first quarter of 2008. The year- over-year decrease in gross profit was largely due to the lower average selling price of steel products caused by the economic slowdown in China's real estate and construction markets and in the overall domestic economy.

Gross margin for the first quarter of 2009 was 4.0%, compared to 4.5% in the first quarter of 2008 and to gross margin of -8.3% in the fourth quarter of 2008. The Company noted that a strategic decision to sell-out of high-cost inventory in the fourth quarter of 2008 and an increase in aggregate demand in the Company's main markets of Shaanxi and Sichuan provinces due to stimulus and earthquake reconstruction-related spending resulted in a return to positive gross margin.

Operating Expenses

Selling, general and administrative expenses for the first quarter of 2009 increased 40.3% to $9.2 million from $6.5 million in the first quarter of 2008. Selling, general and administrative expenses were 2.8% of total revenues in the first quarter of 2009, compared to 2.2% of total revenues in the first quarter of 2008.

A large portion of the increase in selling, general and administrative expenses for the first quarter of 2009 was attributable to increased production volume at the Company's Longmen Joint Venture and the timing of the Maoming acquisition.

Finance and interest expenses for the first quarter of 2009 decreased 50.9% to $2.9 million from $6.0 million in the first quarter of 2008. The decrease was primarily due to lower interest rates and capitalized interest expense related to the two new blast furnaces at Longmen Joint Venture.

Net Income

Net income for the first quarter of 2009 increased 235.2% to $7.3 million from $2.2 million in the first quarter of 2008. Basic and diluted earnings per share for the first quarter of 2009 were $0.20, compared to $0.06 in the first quarter of 2008.

Net income during the first quarter of 2009 was also impacted by a gain of $4.1 million from a derivative instrument; $2.9 million from debt waivers to the Maoming subsidiary, a result of negotiations with a key creditor; and a $3.5 million government grant at our Longmen Joint Venture, a benefit of the national steel industry revitalization plan.

The Company noted that it believes that net income less derivative impact (non-GAAP), which is calculated as GAAP net earnings before the impact of a derivative gain or loss is a better measurement of its performance. Net income less derivative impact (non-GAAP) for the first quarter of 2009 was $3.2 million, or $0.09 per basic and diluted share, based on 36.3 million basic and diluted shares.

The derivative instrument gain is a non-operating, non-cash gain related to the convertible bond and related warrants issued in December 2007. According to accounting rules, the derivative instrument value and associated gain or loss is linked to the Company's stock price. The gain or loss of this instrument has no impact on cash (i.e. no cash was paid out or received).

Balance Sheet

As of March 31, 2009 General Steel had cash and restricted cash of $213.4 million, compared to $145.6 million as of December 31, 2008. Accounts receivable was $20.1 million as of March 31, 2009, compared to $8.3 million as of December 31, 2008.

Explanation of Non-Cash Derivative Expenses

Pursuant to SFAS 133 and EITF 00-19, the Company determined that both the warrants and the conversion option embedded in the Notes issued on December 13, 2007 met the definition of a derivative instrument and must be carried as a liability and marked to market each reporting period. As such, depending upon the price of the Company's common stock at the end of the quarter or year there could be an associated gain or loss, which is non-cash in nature but will be recurring until such time as the Notes are either redeemed or converted and the warrants are exercised.

As of March 31, 2009, the balance of derivative liabilities was $5.8 million, which consisted of $1.8 million for the warrants and $4.0 million for the carrying value of the Convertible Notes.

Conference Call

General Steel management will hold an earnings conference call at 8:00 a.m. U.S. Eastern Time on May 11, 2009. Management will discuss results and highlights from the quarter and answer questions. The dial-in number and passcode for the conference call are as follows:

U.S. Toll Free: +1-800-860-2442

Passcode: General Steel Holdings

The conference call will be broadcast live over the Internet and can be accessed by clicking the following link: http://www.gshi-steel.co... .

About General Steel Holdings, Inc.

General Steel Holdings, Inc., (NYSE: GSI - News), headquartered in Beijing, China, operates a diverse portfolio of Chinese steel companies. With 6.3 million metric tons aggregate production capacity, its companies serve various industries and produce a variety of steel products including rebar, hot-rolled carbon and silicon sheet, high-speed wire and spiral-weld pipe. General Steel Holdings, Inc. has steel operations in Shaanxi and Guangdong provinces, Inner Mongolia Autonomous Region and Tianjin municipality. For more information, please visit http://www.gshi-steel.co... .

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.

GENERAL STEEL HOLDINGS INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS AS OF MARCH 31, 2009 AND DECEMBER 31, 2008 ASSETS March 31, December 31, 2009 2008 Unaudited CURRENT ASSETS: Cash $39,128,494 $14,895,442 Restricted cash 174,321,481 130,700,335 Notes receivable 17,318,812 38,207,312 Accounts receivable, net of allowance for doubtful accounts of $400,571 and $401,109 as of March 31, 2009 and December 31, 2008, respectively 20,082,659 8,329,040 Other receivables, net of allowance for doubtful accounts of $683,826 and $684,767 as of March 31, 2009 and December 31, 2008, respectively 2,479,717 5,099,469 Other receivables - related parties 1,395,616 523,024 Dividend receivable 629,621 630,481 Inventories 107,858,572 59,548,915 Advances on inventory purchases 36,840,793 47,153,869 Advances on inventory purchases - related parties 13,863,922 2,374,637 Prepaid expenses - current 704,162 494,370 Deferred tax assets 6,488,093 7,487,380 421,111,942 315,444,274 PLANT AND EQUIPMENT, net 527,298,591 491,705,028 OTHER ASSETS: Advances on equipment purchases 7,755,163 8,965,382 Investment in unconsolidated subsidiaries 20,476,409 13,959,432 Prepaid expenses - non current 1,153,027 1,195,073 Prepaid expenses related party - non current 197,775 211,248 Long term other receivable 4,563,423 4,872,584 Intangible assets, net of accumulated amortization 24,461,096 24,555,655 Note issuance cost 4,197,058 4,217,974 Plant and equipment to be disposed -- 586,508 Total other assets 62,803,951 58,563,856 Total assets $1,011,214,484 $865,713,158 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Short term notes payable $244,428,086 $206,040,150 Accounts payable 150,364,523 149,239,317 Accounts payable - related parties 32,026,694 15,326,524 Short term loans - bank 85,931,040 67,840,256 Short term loans - others 90,928,371 87,833,706 Short term loans - related parties 7,339,650 7,349,670 Other payables 10,407,709 3,182,661 Other payable - related parties 8,191,474 677,013 Accrued liabilities 11,652,374 7,779,488 Customer deposits 147,012,299 141,101,584 Customer deposits - related parties 6,690,802 7,216,319 Deposits due to sales representatives 43,858,305 8,149,279 Taxes payable 14,087,859 13,916,636 Distribution payable to former shareholders 18,739,625 18,765,209 Total current liabilities 871,658,811 734,417,812 CONVERTIBLE NOTES PAYABLE, net of debt discount of $25,625,326 and $26,094,942 as of March 31, 2009 and December 31, 2008, respectively 7,624,674 7,155,058 DERIVATIVE LIABILITIES 5,788,442 9,903,010 COMMITMENT AND CONTINGENCIES Total liabilities 885,071,927 751,475,880 SHAREHOLDERS' EQUITY: Preferred stock, $0.001 par value, 50,000,000 shares authorized, 3,092,899 shares issued and outstanding 3,093 3,093 Common Stock, $0.001 par value, 200,000,000 shares authorized, 36,390,323 and 36,128,833 shares issued and outstanding as of March 31, 2009 and December 31, 2008, respectively 36,390 36,129 Paid-in-capital 37,957,453 37,128,641 Retained earnings 17,166,701 10,091,829 Statutory reserves 5,162,401 4,902,641 Contribution receivable (959,700) (959,700) Accumulated other comprehensive income 8,230,428 8,407,359 Total shareholders' equity 67,596,766 59,609,992 NONCONTROLLING INTERESTS 58,545,791 54,627,286 Total equity 126,142,557 114,237,278 Total liabilities and shareholders' equity $1,011,214,484 $865,713,158 GENERAL STEEL HOLDINGS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME FOR THE THREE MONTHS ENDED MARCH 31 (UNAUDITED) 2009 2008 REVENUES $262,414,416 $178,492,167 REVENUES - RELATED PARTIES 60,379,480 113,073,832 TOTAL REVENUES 322,793,896 291,565,999 COST OF SALES 252,002,104 166,714,663 COST OF SALES - RELATED PARTIES 57,869,673 111,869,221 TOTAL COST OF SALES 309,871,777 278,583,884 GROSS PROFIT 12,922,119 12,982,115 SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 9,168,261 6,532,821 INCOME FROM OPERATIONS 3,753,858 6,449,294 OTHER INCOME (EXPENSE), NET Interest income 878,633 580,318 Finance/interest (expense) (2,938,778) (5,986,507) Change in fair value of derivative liabilities 4,114,568 2,670,764 Gain from debt extinguishment 2,930,200 -- Government grant 3,519,890 -- Income from equity investments (54,632) -- Other non-operating income (expense), net 510,216 369,270 Total other income (expense), net 8,960,097 (2,366,155) INCOME BEFORE PROVISION FOR INCOME TAXES AND NONCONTROLLING INTEREST 12,713,955 4,083,139 PROVISION FOR INCOME TAXES Current 164,221 666,356 Deferred 1,221,850 (216,533) Total provision for income taxes 1,386,071 449,823 NET INCOME BEFORE NONCONTROLLING INTEREST 11,327,884 3,633,316 Less: Net income attributable to noncontrolling interest 3,993,252 1,444,856 NET INCOME ATTRIBUTABLE TO CONTROLLING INTEREST 7,334,632 2,188,460 OTHER COMPREHENSIVE (LOSS) INCOME: Foreign currency translation adjustments (176,931) 1,615,950 Comprehensive (loss)income attributable to noncontrolling interest (74,746) 2,706,989 COMPREHENSIVE INCOME $7,082,955 $6,511,399 WEIGHTED AVERAGE NUMBER OF SHARES Basic 36,285,312 34,836,394 Diluted 36,285,312 34,923,614 EARNING PER SHARE Basic $0.20 $0.06 Diluted $0.20 $0.06 GENERAL STEEL HOLDINGS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE THREE MONTHS ENDED MARCH 31 (UNAUDITED) 2009 2008 CASH FLOWS FROM OPERATING ACTIVITIES: Net income attributable to controlling interest $7,334,632 $2,188,460 Net income attributable to noncontrolling interest 3,993,252 1,444,856 Consolidated net income 11,327,884 3,633,316 Adjustments to reconcile net income to cash provided by (used in) operating activities: Depreciation 6,024,757 4,499,873 Amortization 224,416 205,146 Debt waiver (2,930,200) -- (Gain)Loss on disposal of equipment (3,517,774) 9,492 Stock issued for services and compensation 271,212 548,456 Amortization of deferred note issuance cost 20,917 8,894 Amortization of discount on convertible notes -- 697,628 Change in fair value of derivative instrument (4,114,568) (2,670,763) Deferred tax assets 989,146 (216,533) Changes in operating assets and liabilities Accounts receivable (11,764,035) (1,459,682) Accounts receivable - related parties -- 7,631,355 Notes receivable 20,837,833 (13,832,292) Notes receivable - restricted -- 8,491,027 Other receivables 2,915,525 1,533,823 Other receivables - related parties (1,736,108) (148,056) Inventories (48,394,144) (17,647,149) Advances on inventory purchases 10,249,490 6,516,616 Advances on inventory purchases - related parties (7,552,281) (26,563,452) Prepaid expense - current (156,475) (220,516) Accounts payable 1,285,289 11,144,259 Accounts payable - related parties 21,860,581 (6,951,111) Other payables 7,229,879 (2,579,136) Other payable - related parties 8,179,890 (2,118,101) Accrued liabilities 3,882,827 522,377 Customer deposits 6,103,498 20,885,570 Customer deposits - related parties (5,120,847) (9,391,133) Taxes payable 190,208 (9,585,924) Net cash provided by (used in) operating activities 16,306,920 (27,056,016) CASH FLOWS FROM INVESTING ACTIVITIES: Acquired long term investment (6,592,950) -- Cash acquired from subsidiary -- 702,237 Deposits due to sales representatives 35,722,574 (451,457) Advance on equipment purchases 1,198,078 416,045 Cash proceeds from sale of equipment 440 -- Equipment purchases (41,415,299) (28,097,609) Intangible assets purchases (163,329) 143,465 Net cash used in investing activities (11,250,486) (27,287,319) CASH FLOWS FINANCING ACTIVITIES: Restricted cash (43,802,323) (33,726,504) Borrowings on short term loans - bank 51,732,681 24,893,037 Payments on short term loans - bank (33,548,167) (28,568,988) Borrowings on short term loans - related parties -- 6,168,050 Payments on short term loans - related parties -- (5,153,320) Borrowings on short term loan - others 13,295,533 23,147,344 Payments on short term loans - others (7,150,703) (16,733,731) Borrowings on short term notes payable 158,809,676 62,896,500 Payments on short term notes payable (120,138,200) (11,614,887) Borrowings on employee loans -- 2,306,205 Payment to noncontrolling shareholders -- (594,336) Net cash provided by financing activities 19,198,497 23,019,370 EFFECTS OF EXCHANGE RATE CHANGE IN CASH (21,879) 857,715 INCREASE (DECREASE) IN CASH 24,233,052 (30,466,250) CASH, beginning of period 14,895,442 43,713,346 CASH, end of period $39,128,494 $13,247,096 GENERAL STEEL HOLDINGS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY Preferred stock Common stock Shares Par value Shares Par value BALANCE, January 1, 2008 3,092,899 $3,093 34,634,765 $34,635 Net income Acquired noncontrolling interest Adjustment to statutory reserve Preferred stock issued for acquisition of minority interest, net of dividend distribution to Victory New Conversion of redeemable stock, $1.95 Common stock issued for service, $1.32 Common stock issued by $2.50 Common stock issued for compensation, $8.16 76,600 77 Common stock issued for compensation, $10.43 150,000 150 Foreign currency translation adjustments BALANCE, March 31, 2008, unaudited 3,092,899 $3,093 34,861,365 $34,862 Net loss Acquired noncontrolling interest Adjustment to statutory reserve Common stock issued for compensation, $6.66 87,400 87 Common stock issued for compensation, $10.29 90,254 90 Common stock issued for consulting fee, $3.6 100,000 100 Common stock issued for public relations, $3.6 25,000 25 Common stock issued for compensation, $3.5 87,550 88 Common stock transferred by CEO for compensation, $6.91 Common stock issued at $5/share 140,000 140 Notes converted to common stock 541,299 541 Make whole shares issued on notes conversion 195,965 196 Foreign currency translation adjustments BALANCE, December 31, 2008 3,092,899 $3,093 36,128,833 $36,129 Net income Adjustment to statutory reserve Common stock issued for compensation, $1.85 109,250 109 Common stock issued for interest payment, $3.66 152,240 152 Common stock transferred by CEO for compensation, $6.91 Foreign currency translation adjustments BALANCE, March 31, 2009, unaudited 3,092,899 $3,093 36,390,323 $36,390 Retained earnings Paid-in Statutory Subscriptions capital reserves Unrestricted receivable BALANCE, January 1, 2008 $23,429,153 $3,632,325 $22,686,590 $(959,700) Net income 2,188,460 Acquired noncontrolling interest Adjustment to statutory reserve 347,747 (347,747) Preferred stock issued for acquisition of minority interest, net of dividend distribution to Victory New Conversion of redeemable stock, $1.95 Common stock issued for service, $1.32 Common stock issued by $2.50 Common stock issued for compensation, $8.16 548,379 Common stock issued for compensation, $10.43 1,564,350 Foreign currency translation adjustments BALANCE, March 31, 2008, unaudited $25,541,882 $3,980,072 $24,527,303 $(959,700) Net loss (13,512,905) Acquired noncontrolling interest Adjustment to statutory reserve 922,569 (922,569) Common stock issued for compensation, $6.66 581,997 Common stock issued for compensation, $10.29 928,582 Common stock issued for consulting fee, $3.6 359,900 Common stock issued for public relations, $3.6 89,975 Common stock issued for compensation, $3.5 306,337 Common stock transferred by CEO for compensation, $6.91 207,300 Common stock issued at $5/share 699,860 Notes converted to common stock 6,102,691 Make whole shares issued on notes conversion 2,310,117 Foreign currency translation adjustments BALANCE, December 31, 2008 $37,128,641 $4,902,641 $10,091,829 $(959,700) Net income 7,334,632 Adjustment to statutory reserve 259,760 (259,760) Common stock issued for compensation, $1.85 202,003 Common stock issued for interest payment, $3.66 557,709 Common stock transferred by CEO for compensation, $6.91 69,100 Foreign currency translation adjustments BALANCE, March 31, 2009, unaudited $37,957,453 $5,162,401 $17,166,701 $(959,700) Accumulated other comprehensive Noncontrolling income interest Totals BALANCE, January 1, 2008 $3,285,278 $43,322,066 $95,433,440 Net income 1,444,856 3,633,316 Acquired noncontrolling interest 14,973,544 14,973,544 Adjustment to statutory reserve -- Preferred stock issued for acquisition of minority interest, net of dividend distribution to Victory New -- Conversion of redeemable stock, $1.95 -- Common stock issued for service, $1.32 -- Common stock issued by $2.50 -- Common stock issued for compensation, $8.16 548,456 Common stock issued for compensation, $10.43 1,564,500 Foreign currency translation adjustments 1,615,950 2,706,989 4,322,939 BALANCE, March 31, 2008, unaudited $4,901,228 $62,447,455 $120,476,195 Net loss (9,986,693) (23,499,598) Acquired noncontrolling interest 921,942 921,942 Adjustment to statutory reserve -- Common stock issued for compensation, $6.66 582,084 Common stock issued for compensation, $10.29 928,672 Common stock issued for consulting fee, $3.6 360,000 Common stock issued for public relations, $3.6 90,000 Common stock issued for compensation, $3.5 306,425 Common stock transferred by CEO for compensation, $6.91 207,300 Common stock issued at $5/share 700,000 Notes converted to common stock 6,103,232 Make whole shares issued on notes conversion 2,310,313 Foreign currency translation adjustments 3,506,131 1,244,582 4,750,713 BALANCE, December 31, 2008 $8,407,359 $54,627,286 $114,237,278 Net income 3,993,251 11,327,883 Adjustment to statutory reserve -- Common stock issued for compensation, $1.85 202,112 Common stock issued for interest payment, $3.66 557,861 Common stock transferred by CEO for compensation, $6.91 69,100 Foreign currency translation adjustments (176,931) (74,746) (251,677) BALANCE, March 31, 2009, unaudited $8,230,428 $58,545,791 $126,142,557 For investor and media inquiries please contact: In China: Ms. Jing Ou-Yang General Steel Holdings, Inc. Tel: +86-10-5879-7346 Email: jing.ouyang@gshi-steel.com Mr. Justin Knapp Ogilvy Financial, Beijing Tel: +86-10-8520-6556 Email: justin.knapp@ogilvy.com In the United States: Ms. Jessica Barist Cohen Ogilvy Financial, New York Tel: +1-646-460-9989 Email: jessica.cohen@ogilvypr.com

   Selected First Quarter 2009 Operating Results:

    -- General Steel expects revenues to be approximately US$320.0 million, an
       increase of 9.7% from US$291.6 million in the first quarter 2008 and an
       increase of 22.6% from US$261.1 million in the fourth quarter 2008

    -- General Steel expects GAAP net income to be approximately US$7.0
       million, compared to net income of US$2.2 million in the first quarter
       2008 and a net loss of US$9.7 million in the fourth quarter 2008

    -- General Steel expects non-GAAP(1) net income to be approximately US$2.9
       million, compared to a net loss of US$0.5 million in the first quarter
       of 2008 and a net loss of US$17.7 million in the fourth quarter 2008

    -- General Steel expects GAAP basic earnings per share to be approximately
       US$0.19, compared to US$0.06 in the first quarter 2008 and basic losses
       per share of US$0.27 in the fourth quarter 2008

    -- General Steel expects non-GAAP basic earnings per share to be
       approximately US$0.08, compared to non-GAAP basic losses per share of
       US$0.01 in the first quarter 2008 and US$0.50 in the fourth quarter
       2008

    (1) Non-GAAP net income is calculated as GAAP net income before the impact
        of a derivative gain or loss. The derivative instrument gain or loss
        is a non-operating, non-cash gain or loss related to the convertible
        bond and related warrants issued in December 2007. Due to accounting
        rules, the derivative instrument value and associated gain or loss is
        linked to the Company's stock price.

"We are very pleased with our swing to profitability and the momentum we have built from the fourth quarter of last year to the first quarter of 2009," said Mr. Henry Yu, General Steel's chairman and chief executive officer. "Our strategic investment last year in two cost-efficient, state-of-the-art blast furnaces increased our capacity and ability to meet demand for construction-related steel created by stimulus- and earthquake-related projects in China's rural provinces. Couple this with our decision to sell-out of high priced inventory as quickly as possible to make way for lower-cost inventory, and our margins returned to positive territory. With utilization rates at healthy levels, higher regional steel prices in our addressable market and signs of an economic recovery in sight, we believe momentum has shifted and I'm confident in the company's ability to perform."

Scheduled Announcement of First Quarter 2009 Earnings

General Steel will report its financial results for the first quarter ended March 31, 2009 at a subsequent date and will provide earnings call dial-in information accordingly.

About General Steel Holdings, Inc.

General Steel Holdings, Inc., (NYSE: GSI - News), headquartered in Beijing, China, operates a diverse portfolio of Chinese steel companies. With 6.3 million metric tons aggregate production capacity, its companies serve various industries and produce a variety of steel products including rebar, hot-rolled carbon and silicon sheet, high-speed wire and spiral-weld pipe. General Steel Holdings, Inc. has steel operations in Shaanxi and Guangdong provinces, Inner Mongolia Autonomous Region and Tianjin municipality. For more information, please visit http://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.

For investor and media inquiries, please contact: In China: Jing Ou-Yang General Steel Holdings, Inc. Tel: +86... Email: jing.ouyang@gshi-steel.com Justin Knapp Ogilvy Financial, Beijing Tel: +86-10-8520-6556 Email: justin.knapp@ogilvy.com In the United States: Jessica Barist Cohen Ogilvy Financial, New York Tel: +1-646-460-9989 Email: jessica.cohen@ogilvypr.com

Founded in 2006, the Chamber connects non-state-owned metals companies, primarily steelmakers and steel-related companies, with the goal of creating a platform for improved information sharing and cooperation within the industry. Additionally, it strives to build a favorable external political environment for members' business development initiatives by voicing their opinions, requirements, and suggestions to the Chinese government.

Mr. Zhao Xizi, honorary president of the Chamber, and former director-general of the State Bureau of Metallurgical Industry commented, "Non-state-owned steel companies are an integral part of China's industrial mix. Henry's twenty years of industry experience and General Steel's leadership in the steel space will be helpful toward streamlining communication and collaboration between the public and private sectors."

"It is an honor to be named vice president of such a respected and influential group of industry professionals," said Mr. Yu. "As the government accelerates its efforts to consolidate the industry and put production capacity in the hands of more efficient producers, I'm confident that General Steel and other non-state-owned producers will play a central role. With over twenty years of operating experience, access to the western capital market and a track record of successfully merging, creating joint ventures and acquiring both state-owned and private enterprises, we are well positioned to make a unique contribution to this group."

Approximately 80% of private-sector steelmakers in China have production capacity of over two million metric tons per year. Mr. Shen Wenrong, board chairman of Jiangsu Shagang Group is currently the president of the China Chamber of Metallurgical Industry. Jiangsu Shagang Group is the largest private mill in China and the eighth-largest steelmaker in the world by 2008 output.

About General Steel Holdings, Inc.

General Steel Holdings, Inc., (NYSE: GSI - News), headquartered in Beijing, China, operates a diverse portfolio of Chinese steel companies. With 6.3 million metric tons aggregate production capacity, its companies serve various industries and produce a variety of steel products including rebar, hot-rolled carbon and silicon sheet, high-speed wire and spiral-weld pipe. General Steel Holdings, Inc. has steel operations in Shaanxi and Guangdong provinces, Inner Mongolia Autonomous Region and Tianjin municipality. For more information, please visit http://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.

    For investor and media inquiries, please contact:

    In China:

     Jing Ou-Yang
     General Steel Holdings, Inc.
     Tel:   +86...
     Email: jing.ouyang@gshi-steel.com

     Justin Knapp
     Ogilvy Financial, Beijing
     Tel:   +86-10-8520-6556
     Email: justin.knapp@ogilvy.com

    In the United States:

     Jessica Barist Cohen
     Ogilvy Financial, New York
     Tel:   +1-646-460-9989
     Email: jessica.cohen@ogilvypr.com

The contracts, signed with 12 separate parties, total 560,000 metric tons of steel, with approximately 85% going to infrastructure-related projects and 15% to real estate projects, including low-income housing. According to China's National Development and Reform Commission, 44%, or $259 billion, of the central government's $586 billion stimulus package is allocated for rural infrastructure, earthquake reconstruction and public housing. An additional 38%, or $219 billion, is allocated for transport and power infrastructure.

"We are pleased to see concrete effects from stimulus-related spending," said Mr. Henry Yu, General Steel's chairman and chief executive officer. "We believe that the strategic geographic location of our integrated facilities and Longmen Joint Venture's focus on infrastructure and construction-related steel make us ideally positioned to capitalize on this spending going forward. In fact, we are seeing strong demand for steel in the inland areas of Sichuan and Shaanxi provinces, which fall within Longmen Joint Venture's addressable market. We see this trend continuing as stimulus spending moves forward in 2009 and 2010, and we expect a long-term emphasis on western development to drive infrastructure and construction spending in these inland provinces in the future."

The steel sold through the contracts is priced at the Xi'an market price at the time of shipment. General Steel receives payment for each batch of steel before making the shipment. The Company noted that these contracts represent direct sales to end-users, which are separate from sales made through distributors. In December 2008, General Steel opened a branch office in Sichuan province in order to capture opportunities created by earthquake reconstruction efforts in the area.

About General Steel Holdings, Inc.

General Steel Holdings, Inc., (NYSE: GSI - News), headquartered in Beijing, China, operates a diverse portfolio of Chinese steel companies. With 6.3 million metric tons aggregate production capacity, its companies serve various industries and produce a variety of steel products including rebar, hot-rolled carbon and silicon sheet, high-speed wire and spiral-weld pipe. General Steel Holdings, Inc. has steel operations in Shaanxi and Guangdong provinces, Inner Mongolia Autonomous Region and Tianjin municipality. For more information, please visit http://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.

    For investor and media inquiries, please contact:

    In China:

     Jing Ou-Yang
     General Steel Holdings, Inc.
     Tel:   +86-10-5879-7346
     Email: jing.ouyang@gshi-steel.com

     Justin Knapp
     Ogilvy Financial, Beijing
     Tel:   +86-10-8520-6556
     Email: justin.knapp@ogilvy.com

    In the United States:

     Jessica Barist Cohen
     Ogilvy Financial, New York
     Tel:   +1-646-460-9989
     Email: jessica.cohen@ogilvypr.com

During a panel discussion titled, "Key infrastructure opportunities in China and the reacceleration of economic growth," Ms. Jing Ou-Yang, General Steel's investor relations manager said, "Our focus on producing high-quality, construction-related steel makes us well positioned to benefit from infrastructure investment in China. Especially in inland provinces, such as Shaanxi and Sichuan, we are seeing stimulus measures beginning to take effect. Our geographic proximity to this rising demand for construction steel, integrated production facilities and new, efficient blast furnaces, give us a unique ability to cater to stimulus and earthquake rebuilding projects and to benefit from the central government's continued emphasis on western development."

In October of 2008, the Company announced the completion of two new blast furnaces at its Shaanxi Longmen Steel Co., Ltd. Joint Venture ("Longmen Joint Venture") site, which increased the Company's production capacity and efficiency. Ms. Ou-Yang noted that the furnaces coming online coincides with rising demand for construction-related steel from the central government's increased spending on rural development in China. The two, new blast furnaces require less energy, coke and manpower and have a pig-iron production capacity of 2 million metric tons annually.

In the first quarter of 2009, recognized by the Sichuan provincial government as a "Preferred Supplier" for reconstruction projects, the Company's Longmen Joint Venture signed contracts with the city of Mianyang in Sichuan province to provide over 70,000 metric tons of rebar. In addition, General Steel has announced its participation in additional projects in Shaanxi province including:

    -- Xi'an's subway lines 1 and 4 extensions
    -- The Xi'an-Baotou railway
    -- The Shiyen-Gansu expressway

Ms. Ou-Yang concluded the discussion saying, "After the financial crisis began, prices for raw materials and finished products dropped significantly, with finished product prices falling faster than those of raw materials. Our strategic decision to sell-off high-cost inventory as quickly as possible allowed us to purchase lower-cost inventory and improve our margins throughout the fourth quarter. In fact, by December, we were pleased to see gross margins return to positive territory. We're excited about the stimulus-related demand we've seen thus far and are confident that China's emphasis on western development will propel our growth in the longer-term."

At the conference, Ms. Ou-Yang also held one-on-one meetings with investors to discuss the Company's financial results and business strategy.

More information about the Piper Jaffray & ChinaVenture Investment Conference can be found at: http://events.chinaventure.com.cn/sh...

About General Steel Holdings, Inc.

General Steel Holdings, Inc., (NYSE: GSI - News), headquartered in Beijing, China, operates a diverse portfolio of Chinese steel companies. With 6.3 million tons aggregate production capacity, its companies serve various industries and produce a variety of steel products including rebar, hot-rolled carbon and silicon sheet, high-speed wire and spiral-weld pipe. General Steel Holdings, Inc. has steel operations in Shaanxi and Guangdong provinces, Inner Mongolia Autonomous Region and Tianjin municipality. For more information, please visit to http://www.gshi-steel.com .

    For further information, please contact:

    In China:
    General Steel Holdings, Inc.
     Jing Ou-Yang
     Tel:   +86-10-5879-7346
     Email: jing.ouyang@gshi-steel.com

    Ogilvy Financial, Beijing
     Justin Knapp
     Tel:   +86-10-8520-6556
     Email: justin.knapp@ogilvy.com

    In the United States:
    Ogilvy Financial, New York
     Jessica Barist Cohen
     Tel:   +1-646-460-9989
     Email: jessica.cohen@ogilvypr.com

    Date:     Tuesday, March 17, 2009
    Time:     16:15 - 17:00 (local time)
    Location: Grand Hyatt Shanghai, China

At the conference, Ms. Ou-Yang will also hold one-on-one meetings with investors to discuss the Company's financial results and business strategy.

More information about the Piper Jaffray & ChinaVenture Investment Conference can be found at: http://events.chinaventure.com.cn/sh... .

About General Steel Holdings, Inc.

General Steel Holdings, Inc., (NYSE: GSI - News), headquartered in Beijing, China, operates a diverse portfolio of Chinese steel companies. With 6.3 million tons aggregate production capacity, its companies serve various industries and produce a variety of steel products including rebar, hot-rolled carbon and silicon sheet, high-speed wire and spiral-weld pipe. General Steel Holdings, Inc. has steel operations in Shaanxi and Guangdong provinces, Inner Mongolia Autonomous Region and Tianjin municipality. For more information, please visit to http://www.gshi-steel.com .

    For investor and media inquiries, please contact:

    In China:
    General Steel Holdings, Inc.
     Jing Ou-Yang
     Tel:   +86-10-5879-7346
     Email: jing.ouyang@gshi-steel.com

    Ogilvy Financial, Beijing
     Justin Knapp
     Tel:   +86-10-8520-6556
     Email: justin.knapp@ogilvy.com

    In the United States:
    Ogilvy Financial, New York
     Jessica Barist Cohen
     Tel:   +1-646-460-9989