Allegheny Technologies Announces Cost Reduction Actions.

Business Editors

PITTSBURGH--(BUSINESS WIRE)--July 22, 2002

Allegheny Technologies Incorporated (NYSE:ATI) announced workforce reductions of approximately 275 salaried employees across the Company. These cost reduction actions predominantly involve the Company's Flat-Rolled Product segment and should be substantially completed by the end of the third quarter 2002.

"We must maintain cost structures in all of our businesses that keep us competitive and deliver profitable performance even in this difficult market environment. I am convinced that this can be accomplished while retaining the strength to grow with the markets for our specialty materials as the economy recovers," said Jim Murdy, president and chief executive officer. "It is regrettable that the current weak economic conditions are forcing us and so many other companies across America to eliminate jobs and temporarily layoff both salaried and hourly employees."

Allegheny Technologies expects to record a one time pre-tax charge of approximately $5 million, or $0.04 per share after tax, in the 2002 third quarter as a result of the cost reduction actions announced today. These actions are estimated to provide annual pre-tax cost savings of approximately $18 million.

This news release contains forward-looking statements. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from those projected in the forward-looking statements. Additional information concerning factors that could cause actual results to differ materially from those projected in the forward-looking statements is contained in Allegheny Technologies' filings with the Securities and Exchange Commission.

Allegheny Technologies Incorporated (NYSE:ATI) is one of the largest and most diversified specialty materials producers in the world, with revenues of approximately $2.1 billion in 2001. The Company has approximately 10,700 employees world-wide and its talented people use innovative technologies to offer growing global markets a wide range of specialty materials. High-value products include nickel-based and cobalt-based alloys and superalloys, titanium and titanium alloys, specialty steels, super stainless steel, exotic alloys, which include zirconium, hafnium and niobium, tungsten materials, and highly engineered strip and Precision Rolled Strip(R) products. In addition, we produce commodity specialty materials such as stainless steel sheet and plate, silicon and tool steels, and forgings and castings. The Allegheny Technologies website can be found at www.alleghenytechnologies.com.