Alyn Corp. Announces Results for Fourth Quarter and Full Year 1997.

IRVINE, Calif.--(BUSINESS WIRE)--Jan. 29, 1998--Alyn Corp. (Nasdaq:ALYN), producer of high-performance Boralyn and other proprietary advanced metal matrix composite materials, Thursday reported its financial results for the fourth quarter and full year 1997.

For the quarter ended Dec. 31, 1997, the company reported a net loss of $2,995,000, or $0.28 per share, on net revenues of $32,000. This compares with a net loss of $1,023,000, or $0.10 per share, on net revenues of $36,000 in the fourth quarter of 1996. The company's cash position on Dec. 31, 1997, was $13,126,000.

For the 12 months ended Dec. 31, 1997, Alyn reported a net loss of $7,316,000, or $0.68 per share, on net revenues of $364,000. This compares with a pro forma net loss of $2,281,000, or $0.26 per share, on net revenues of $194,000 for the year ended Dec. 31, 1996.

Robin A. Carden, president and CEO, stated: "1997 was a year of significant achievements in which Alyn Corp. made progress toward its growth objectives. We completed our production facility in Irvine, Calif., and have begun renovation of an additional, larger facility, also in Irvine. We established key relationships with leading companies in industries which will benefit from Boralyn's properties and Alyn's production capabilities. The strength of these relationships provides an important part of the foundation for Alyn's near-term and future growth."

Alyn announced exclusive agreements during 1997 with True Temper Sports for golf club shafts and bicycle frame sets and with Bolle Inc. for sunglass frames. The company received orders from General Motors for EV-1 engine cradles, Cessna Aircraft for Citation Excel aircraft components, and Mersey Inc. for parts for the next generation of high-end watches sold under brand names.

Memorandums of Understanding were signed with Seagate Technology for the testing and manufacture of Boralyn hard disk substrates and with Diemakers Inc. for joint sales and production efforts in the automotive industry.

"Taylor Made Golf continues to refine the design of its metal-wood driver club head, based upon testing done by its staff and golf pros," said Carden. "Final design and testing must be completed prior to our ordering production tooling. True Temper Sports is currently proceeding with refinements in the production process for Boralyn golf club shafts. Seagate Technologies continues in its test program as anticipated.

"General Motors' engine cradle is on plan, awaiting completion of tooling, with first shipments scheduled for the second quarter. During the first quarter, Alyn will begin limited-quantity shipments of product for Cessna Aircraft and Mersey Inc. We have learned a great deal working with our customers over the past year, but, most importantly, we have learned that the more strategic and critical the product is to our customer, the longer it takes to complete design and testing."

"Looking to 1998," continued Carden, "we will remain focused on finalizing product design and testing for our key accounts, while we broaden our customer base. Our new manufacturing facility will be operational by mid-year, providing the capability to produce extruded and forged products, such as parts for making computer disk substrates, precision parts for aerospace and golf shafts, in large volumes.

"We are engaged in the qualification tests for several industries, including aerospace and nuclear. We also plan to complete ISO 9001 and QS 9001 certifications during the third quarter in order to accelerate our penetration into the automotive and aerospace industries."

Alyn designs, develops and manufactures consumer and industrial products utilizing its high-performance Boralyn material and other proprietary advanced metal matrix composite materials for a variety of markets. -0-

Except for historical information contained herein, this document contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve known and unknown risks and uncertainties that may cause the company's actual results or outcomes to be materially different from those anticipated and discussed herein. Further, the company operates in an industry sector where securities values may be volatile and may be influenced by regulatory and other factors beyond the company's control. Important factors that the company believes might cause such differences are discussed in the cautionary statements accompanying the forward-looking statements in the Annual Report on Form 10-K and in the risk factors detailed in the company's prospectus, dated Oct. 22, 1996, filed with the Securities and Exchange Commission. In assessing forward-looking statements contained herein, readers are urged to read carefully all cautionary statements contained in those filings with the Securities and Exchange Commission. -0-

                              Alyn Corp.
                  Condensed Statements of Operations
                             (Unaudited)

                                      Three Months Ended
                                           Dec. 31,
                                    1997             1996

Net sales                     $    32,000      $     6,000
Contract revenue                       --           30,000
Total revenue                      32,000           36,000
Costs and expenses:
Cost of goods sold                 24,000           24,000
Establishment of
 manufacturing facilities         780,000          198,000
General and administrative
 expenses                         795,000          512,000
Selling and marketing             367,000          378,000
Research and development        1,172,000          171,000
Total costs and expenses        3,138,000        1,283,000
Operating loss                 (3,106,000)      (1,247,000)
Interest expense                   (2,000)         (31,000)
Interest income                   113,000          255,000
Loss before provision
 for income taxes              (2,995,000)      (1,023,000)
Provision for income taxes             --               --
Net loss                      $(2,995,000)     $(1,023,000)
Basic and diluted
 net loss per share           $     (0.28)     $     (0.10)
Common shares used in
 computing net loss
 per share                     10,750,000       10,115,000
Pro forma net loss                     --               --
Pro forma basic and diluted
 net loss per share                    --               --
Pro forma common shares
 used in computing
 net loss per share                    --               --


                                     Twelve Months Ended
                                           Dec. 31,
                                    1997             1996
                                                 (Pro forma)

Net sales                     $   305,000      $   129,000
Contract revenue                   59,000           65,000
Total revenue                     364,000          194,000
Costs and expenses:
Cost of goods sold                323,000          114,000
Establishment of
 manufacturing facilities       1,809,000          262,000
General and administrative
 expenses                       2,633,000        1,310,000
Selling and marketing           1,371,000          610,000
Research and development        2,338,000          290,000
Total costs and expenses        8,474,000        2,586,000
Operating loss                 (8,110,000)      (2,392,000)
Interest expense                   (3,000)        (144,000)
Interest income                   809,000          283,000
Loss before provision
 for income taxes              (7,304,000)      (2,253,000)
Provision for income taxes         12,000            2,000
Net loss                      $(7,316,000)     $(2,255,000)
Basic and diluted net loss
 per share                    $     (0.68)     $        --
Common shares used in
 computing net loss
 per share                     10,750,000               --
Pro forma net loss                     --      $(2,281,000)
Pro forma basic and diluted
 net loss per share                    --      $     (0.26)
Pro forma common shares
 used in computing
 net loss per share                    --        8,615,000


Note 1:  Common shares used in computing net loss per share includes
the 2,750,000 shares issued in an initial public offering of the
company's common stock on Oct. 22, 1996.

Note 2:  Pro forma information is presented to reflect the change of
Alyn Corp.'s status for federal income tax purposes from an "S" to a
"C" corporation as a result of a merger in May 1996.  The pro forma
data includes the amortization of intangible assets of $26,000 for
the period from Jan. 1, 1996, to May 1, 1996.

-0-

                             Alyn Corp.
                      Condensed Balance Sheets

                                             Dec. 31,
                                       1997            1996
ASSETS
Current assets:
Cash and cash equivalents         $13,126,000     $24,411,000
Accounts receivable, net               94,000          57,000
Inventories                           172,000          41,000
Other current assets                  201,000         122,000
Total current assets               13,593,000      24,631,000
Equipment, furniture
 and fixtures, net                 13,302,000       5,027,000
Other assets, net                   3,454,000       1,771,000
Intangibles, net                      778,000         774,000
                                  $31,127,000     $32,203,000

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable                  $   551,000     $   945,000
Notes payable -- current              999,000              --
Accrued and other current
 liabilities                          326,000         192,000
Total current liabilities           1,876,000       1,137,000
Long-term liabilities:
Notes payable -- long term          5,501,000              --
Stockholders' equity:
Common stock                           11,000          11,000
Additional paid-in capital         33,294,000      33,294,000
Accumulated deficit                (9,555,000)     (2,239,000)
Total stockholders' equity         23,750,000      31,066,000
                                  $31,127,000     $32,203,000

CONTACT: Alyn Corp., Irvine

Richard L. Little, 714/475-1525

or

Financial Relations Board

310/442-0599

Karen Taylor, general information

Moira Conlon, investor/analyst contact