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To: James Strauss who wrote (2270)	2/13/1998 9:19:00 PM
From: James Strauss	Read Replies (1) \| Respond to of 2377

From The Alex Brown Interview... All: RCG: One of the companies that you mentioned the last time that we talked, a company called Recycling Industries, Inc. (Nasdaq: RECY), which seems on a valuation basis to have held its own in a pretty rough market here in the last 3-4 months. Can you give us an update on Recycling? Estra: Well, Recycling's stock has held pretty stable, maybe even up a $1.00 over the past calendar quarter and of course the rest in the industry have fallen down quite a bit. I don't think that is a random assurance, I think the market has very deliberately expressed it's interest in Recycling Industries based on the fact that the company continues to show substantial expansion through acquisition. It has continued to do just what they promised they would do which is to identify and acquire at modest multiples of cash flow very substantial companies in the metal scrap recycling business and putting these together creates very interesting geographic synergies. Secondly, the company has recently reported a very good earnings result which in my view puts them ahead of schedule. In fact, for a company as young and rapidly growing as they are, it seems to me that they are progressing and bringing in returns for shareholders in the form of earnings and cash flow at a faster pace then I would have originally thought possible. That is certainly very positive. I think the market is recognizing this. When I look at the stock trading at $6.00 or so on a pro forma EBITDA basis this is only at about 7 times EBITDA, that is a very modest valuation in my view for a company whose growth is nothing short of spectacular. Jim