Company locks in approximately 70% of targeted 2010 total sales volume with distributors

BEIJING, Dec. 22 /PRNewswire-Asia-FirstCall/ -- General Steel Holdings, Inc. ("General Steel" or "the Company") (NYSE: GSI), one of China's leading non-state-owned producers of steel products and aggregators of Chinese steel companies, today announced results from its annual distributor conference held in Xian, China from December 14-16, 2009.

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.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.

    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

SOURCE General Steel Holdings, Inc.

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