COMMONWEALTH INDUSTRIES FINALIZES NEW ACCOUNTS RECEIVABLE SECURITIZATION FACILITY; COMPANY APPLIES PROCEEDS OF COMMON STOCK OFFERING TO REDUCE INDEBTEDNESS.

LOUISVILLE, Ky.--(BUSINESS WIRE)--Sept. 30, 1997--Commonwealth Industries, Inc. (Nasdaq/NM: CMIN) today announced that it has finalized a new $150 million, three-year accounts receivable securitization facility with PNC Bank, N.A. The new facility augments the Company's existing $225 million revolving credit facility to support Commonwealth's working capital requirements. With a reduced interest rate linked to commercial paper rates, under current financial condition, the new accounts receivable securitization facility is expected to save Commonwealth approximately $2.25 million annually in interest expense. These savings are based on the comparison with the interest rate and pricing schedule for the revolving credit facility in effect prior to the equity offering as described below.

"We are pleased to complete this step in our capitalization plan," commented Mark V. Kaminski, President and Chief Executive Officer. "This facility increases the resources available to support our growing operations and allows us to take advantage of the favorable rates available in the commercial paper market. Coupled with our just completed common stock offering, it greatly expands the financial flexibility of our Company while lowering our cost of capital."

Kaminski noted that Commonwealth used the net proceeds from its common stock offering to repay existing indebtedness under the Company's term loan agreement and revolving credit facility. In the offering, Commonwealth issued 5,750,000 common shares, including 750,000 shares issued in connection with the underwriters' over-allotment option, at $18 per share. Net proceeds of approximately $97.7 million were used to repay the entire amount outstanding under the Company's term loan agreement, totaling $95.0 million, as well as $2.7 million outstanding under the Company's revolving credit facility. According to Kaminski, the repayment of this debt is expected to reduce Commonwealth's interest costs by $1.8 million in the fourth quarter of 1997 and $7.1 million on an annual basis, based on the blended interest rate of 7.32% for the term loan and 7% for the revolving credit facility.

Commonwealth Industries is one of North America's leading manufacturers of aluminum sheet for distributors and the transportation, construction, and consumer durables end-use markets. The Company has direct-chill casting facilities in Kentucky - one of the largest multi-purpose aluminum rolling mills in North America - and continuous casting mini-mills in Ohio and California. Commonwealth also is a leading manufacturer of innovative electrical wiring products through its Alflex operations in California.

CONTACT: Commonwealth Industries, Inc., Louisville

William G. Toler, 502/589-8100