AGY Retains Investment Banker to Explore Strategic Financial Options.

AIKEN, S.C. -- AGY President and Chief Executive Officer Doug Mattscheck today announced plans to explore all the company's strategic financial options, including the potential for refinancing or a sale of the Company. Mattscheck said the company's strong performance since emerging from Chapter 11 protection in April 2004 and the robust debt and equity markets make this an opportune time to launch such an initiative.

"The company's performance during the past 16 months has been very good," he said. "We have demonstrated consistent, strong growth and have enhanced our profitability. We think now is an interesting time to explore these alternatives to allow us to sustain our growth strategy as a provider of high performance materials in a diverse range of applications."

"The AGY Board made its decision in this regard after considering a number of factors including the company's performance, the upcoming maturity of our debt and the current climate for interest rates and investments" he continued. "At the same time, investors are showing a strong desire to participate in businesses like AGY that have a solid business model and have proven their ability to perform."

To assist the company in exploring its options, AGY has engaged the investment firm of Houlihan Lokey Howard & Zukin headquartered in New York City. Houlihan Lokey is one of the world's leading middle-market investment bankers.

AGY is a leading global producer of fiberglass yarns and high strength fiberglass reinforcements used in a wide variety of composites applications. The company serves a diverse range of markets including aerospace and defense, electronics, construction and industrial. Headquartered in Aiken, S.C. (USA), AGY has a European office in Lyon, France, and manufacturing facilities in Aiken, S.C., and Huntingdon, Pa. Additional information may be found at the company's website, www.agy.com, or by email at [e-mail].