Brush Wellman Comments On Lower Earnings Outlook and the Progress of the Alloy Expansion Project.

CLEVELAND--(BUSINESS WIRE)--Sept. 16, 1999--

Brush Wellman Inc., (NYSE:BW) today commented on the sales and lower earnings outlook for the remainder of 1999 and the progress of the $117 million Alloy Expansion Project (AEP).

Metal Systems Group

(The Metal Systems Group consists of Alloy Products, Technical Materials, Inc. (TMI) and Beryllium Products.)

Business conditions remain strong for alloy strip products and TMI. This strength is fueled by continuing strong market demand in telecommunications, automotive electronics and computer product applications. Alloy bulk products continue to experience further softness in oil and gas, and aerospace markets, impacting overall bulk sales, however, undersea cable systems, plastic tooling and foundry product applications are beginning to see a recovery. The development and commercialization of the new spinodal materials associated with the Brush Engineered Bronze facility in Lorain, Ohio is taking longer than expected. Beryllium products sales are being affected by procurement delays in defense and aerospace markets.

Despite strong demand for alloy strip products, sales and earnings continue to be affected by strip mill capacity constraints and higher startup costs. A longer than expected seasonal maintenance shutdown of the old strip mill and AEP in the month of July coupled with slower startup of both facilities after shutdown will affect the earnings performance in the third quarter.

Capacity constraints and cost inefficiencies should be relieved, as the AEP becomes fully operational. In order to accelerate the ramp up process, the Company has retained the services of approximately 50 outside engineers and skilled trades, including an experienced equipment commissioning project manager, and has dedicated additional internal resources to focus on AEP equipment reliability and cast shop production. These efforts, to date, have already resulted in an increase in the output of pounds over the last several weeks as compared to prior production levels. The constrained capacity and costs associated with the additional outside resources will affect financial performance through the fourth quarter of 1999.

Microelectronics Group

(The Microelectronics Group includes Williams Advanced Materials Inc. (WAM) and Ceramic Products)

WAM's sales and profits continue to experience strong growth principally driven by the vacuum coating market segments which include both optical and hard disk media physical vapor deposition materials. WAM has launched a successful startup of its new specialty alloys product line targeted for use in electron tube, microelectronic packaging and aerospace product applications.

Ceramics is experiencing some growth in new products including copper tungsten and RF packages, however, overall sales remain flat with improvements in manufacturing increasing profitability.

Chairman's Comments

Commenting on the outlook for the remainder of 1999, Gordon D. Harnett, Chairman, President and Chief Executive Officer, said "Our highest priority is to get the AEP up and running continuously as soon as possible in order to increase our manufacturing capacity to meet our customers' demand and leverage the growth of our new alloys. Although the increased costs associated with the AEP startup effort will have a material impact on our second half financial performance, as compared to the first half of 1999, we believe it is in the best interest for the long-term success of Brush Wellman."

Forward-looking Statements 

Any forward-looking statements in this announcement are based on current expectations. The Company's performance may differ from that contemplated by the forward-looking statements as a result of a variety of factors including the global and domestic economy, manufacturing yields and operating performances at the Company's various facilities, changes in product mix, the timely and successful completion of pending capital expansions, tax rates and exchange rates.

Brush Wellman Inc., with headquarters in Cleveland, Ohio, is a manufacturer of engineered materials. The Company and its subsidiaries supply worldwide markets with Beryllium Products, Alloy Products, Ceramic Products, Precious Metal Products and Specialty Metal Systems.

For further information, please contact:

Michael C. Hasychak

Treasurer and Secretary

Brush Wellman Inc.

17876 St. Clair Avenue 

Cleveland, Ohio 44110

[phone]

http://www.brushwellman.com