Carpenter's Operations, Growth Not Affected by Change in Debt Rating.

Business Editors/Mining & Metals Writers

WYOMISSING, Pa.--(BUSINESS WIRE)--July 7, 2000

Carpenter Technology (NYSE:CRS) Corp.'s operations and plans for growth will not be affected by a recent change in its senior unsecured debt rating by Moody's Investors Service, a senior company financial official said today.

Moody's reduced Carpenter's senior unsecured debt rating from "A-3" to "Baa-1," with a stable outlook. Both ratings are considered to be investment grade. Moody's affirmed Carpenter's short-term debt rating of "Prime-2."

"The change in rating by Moody's will not have an adverse impact on Carpenter's ability to finance operations, capital expenditures or the company's plans for growth," said G. Walton Cottrell, Carpenter's senior vice president - finance and chief financial officer. "Carpenter plans to reduce capital expenditures, and cash flow is expected to accelerate in future periods. Carpenter previously arranged revolving credit agreements and longer-term financing to meet our needs. We view this rating change as disappointing, but it will not have a noticeable impact on Carpenter's results of operations or financial position. We continue to have a very positive outlook for Carpenter."

Carpenter produces and distributes stainless steel, specialty alloys, titanium and various engineered products. Information about Carpenter can be found on the Internet at www.cartech.com.

Some of the statements in this news release are forward-looking statements. These statements are based on current expectations that involve a number of risks and uncertainties, which are specified in Carpenter's filings with the Securities and Exchange Commission, including the March 31, 2000, form 10-Q. Actual results could differ materially from those projected in the forward-looking statements.