Carpenter Gains Metals Manufacturing Capacity by Completing Acquisition of Converter.

READING, Pa.--(BUSINESS WIRE)--Nov. 3, 1997--Carpenter Technology Corp. (NYSE:CRS) announced Monday that it had acquired the assets of privately-held Shalmet Corporation and its affiliates for approximately $8.4 million in stock and cash, and assumed about $3.9 million of Shalmet's debt.

Shalmet, with operations in Orwigsburg, Pa. and Elyria, Ohio, will become a wholly owned subsidiary of Carpenter. The company converts "black" coil and bar to "bright" round bar and coil products made of stainless steel, superalloys, titanium and carbon steel. Shalmet, which employs about 150 people, was profitable in 1996 on sales of more than $12 million.

Shalmet is Carpenter's eleventh acquisition in four years. The company's corporate development activities reflect Carpenter's desire to grow by diversifying into related specialty materials, increasing international sales, and acquiring additional metals manufacturing capacity. In addition to Shalmet, Carpenter also is seeking to acquire another metals manufacturing source, Talley Industries (NYSE:TAL), in a cash tender offer valued at $312 million.

Carpenter announced in January that it planned to acquire Shalmet's parent company, Global Technology, Inc., and its two primary businesses: Shalmet and Hetran, Inc., which designs and manufactures a broad range of coil and bar processing equipment. Carpenter still has an exclusive option to purchase Hetran. Helmut Oertmann will continue as president of Hetran.

Shalmet's customers include some carbon steel manufacturers and most U.S. specialty steel and titanium manufacturers. "Our intent is to continue to serve and grow with the entire customer base," said Robert W. Cardy, chairman, president and CEO of Carpenter.

Shalmet also will continue to provide incremental coil and bar finishing capacity to Carpenter, augmenting the output of Carpenter's main Reading, Pa., specialty alloys plant, Cardy said.

Carpenter's main manufacturing plant in Reading, Pa., has been running at about 90 percent capacity and a manufacturing shortfall had been anticipated as the company continues to grow its business globally, he said.

As previously announced, Michael J. Lubas, 49, will serve as the company's general manager. Lubas, who has been manager - production technology for Carpenter, will report to Dennis Draeger, senior vice president, Specialty Alloys Operations.

Carpenter is a major producer of specialty materials, including stainless steel, titanium and other specialty alloys, and various engineered products. The company now employs about 5,500 people in North America, Europe and Asia. Sales for fiscal year 1997 (ended June 30, 1997) were $939 million.

CONTACT: Carpenter Technology Corp.

Katharine Marshall, 610/208-3034