Carpenter Announces Further Expansion At Reading, Talley Plants.

READING, Pa.--(BUSINESS WIRE)--Oct. 27, 1998--To continue to meet customer needs and increase its business, Carpenter Technology Corp. (NYSE:CRS) announced today that it will invest $113.6 million to expand its melt shop in Reading and add capacity at its Talley Metals Inc. plant in Hartsville, S.C.

Together, the two projects will greatly reduce Carpenter's need to purchase billet and finishing services from outside sources, said executive vice president Dennis M. Draeger.

"By adding melting and finishing capacity, we can continue to deliver a quality product to our customers and at the same time improve our cost-effectiveness and reliability," he said. "These and other capital projects we now have underway will help us meet customer demand both now and in the future and profitably grow our business."

Construction at the Reading melt shop is expected to begin in January 2000 and be substantially complete in mid-2001. Construction at Talley is expected to begin before the end of 1998 and be substantially complete by spring 2000.

The majority of the expenditures will be made in Carpenter's fiscal years 2000 and 2001. Reading melt shop expansion The $70 million expansion of the melt shop in Reading will increase production of billet needed at both Reading and Talley and reduce costs.

At the heart of the project are the installation of a new 50-ton arc melting furnace and upgrades to the existing continuous caster. Also included in the expansion are improvements to ingot melting, refining and casting processes.

Those and other improvements in the arc melt shop are expected to increase continuous caster billet production capacity by 66 percent.

Talley expansion

A previously announced, $6.8 million project to increase rolling mill billet heating capability at Talley, necessary to increase stainless steel production there, is underway and is expected to be complete in early 1999.

The newest project, which will cost $43.6 million, is designed to further increase capacity and finishing capabilities. It includes:

-- Modifications to rolling mill gearing and material handling

systems.

-- Additional annealing, cleaning and finishing equipment.

-- Improvements to the plant's infrastructure, including roadways

and utilities.

To meet customer demand into the next decade, particularly for premium alloys used in a variety of demanding environments, Carpenter previously announced a series of multi-year capital projects at its Reading specialty alloys plant.

Expenditures include:

-- $87.3 million to modernize finishing operations for narrow strip products, used in electronics, anti-theft devices and ground fault interrupters in appliances, among other applications;

-- $42 million to install a new, 4,500-ton forging press, used to strengthen alloys for aerospace and other industries;

-- $22 million to install four additional vacuum arc remelting (VAR) furnaces, which are complete and used to make aerospace, medical, electronics and other alloys; and

-- $3.4 million for a new electro-slag remelting (ESR) furnace, which is complete and used primarily for aerospace alloys that are melted three times to ensure the highest purity levels.

In fiscal 1999 (which began July 1, 1998), Carpenter expects to spend about $170 million on those and other capital projects. Some of these statements are forward-looking statements.

They are based on current expectations, which involve a number of risks and uncertainties that could cause actual results to differ materially from those projected.

Information concerning factors that could cause actual results to differ materially from those projected in the company's forward-looking statements can be found in Carpenter's filings with the Securities and Exchange Commission.

Carpenter, based in Reading, Pa., makes and distributes stainless steels, specialty alloys and various engineered products. In fiscal 1998 (ended June 30, 1998), Carpenter had sales of approximately $1.2 billion. Further information about Carpenter can be found on the Internet, at http://www.cartech.com.