Carpenter closes on Dynamet acquisition, elects Dynamet founder to board.

READING, Pa.--(BUSINESS WIRE)--Feb. 28, 1997--Carpenter Technology Corp. (NYSE:CRS) announced that it closed Friday on its acquisition of privately-held Dynamet Inc. for approximately $150 million in stock and cash, and assumption of Dynamet's debt of approximately $11 million.

The specialty metals manufacturer financed the purchase by issuing 2.8 million shares of Carpenter common stock and paying $51 million in cash.

Concurrently, Carpenter sold back Dynamet's McMurray, Pa., Forged Products Division to Peter N. Stephans, for approximately $4 million in cash and assumption of debt. Stephans had been president and chief operating officer of Dynamet.

P.C. Rossin, Dynamet's chairman, CEO and founder, was elected a director of Carpenter, effective today, becoming the fifteenth board member. Before founding Dynamet in 1967, Rossin had held various production and operations positions at Crucible Steel Corp., Fansteel Metallurgical Corp., and Cyclops Corp.

Rossin holds a bachelor's degree in metallurgy from Lehigh University and a master's degree in metallurgical engineering from Yale University.

Throughout his career, he has won a number of awards for his entrepreneurial success -- from organizations as diverse as the Small Business Administration, The Pittsburgh Business Times, Washington & Jefferson College (Washington, Pa.) and Arthur Young. In 1994, Rossin received the prestigious ASM (American Society for Metals) Medal for the Advancement of Research.

The Stephans' and Rossin families now own 14 percent of Carpenter.

Dynamet is the largest acquisition in Carpenter's 108-year history," noted Robert W. Cardy, Carpenter's chairman, president and CEO. "It will support one of the company's strategies to grow by diversifying into other specialty materials."

Carpenter also is extending its sales and marketing activities in major global markets and has embarked on a significant capital expansion program at its primary metals manufacturing plant in Reading, Pa., Cardy said.

Dynamet manufactures titanium bar and wire products, primarily for use in aircraft, medical devices, and chemical and petroleum processing. It also makes powder alloys for the aerospace and tooling industries. Carpenter provides metals to all of these industries as well. With this acquisition, revenues from aerospace will represent about 20 percent of Carpenter's annual sales.

Based in Washington, Pa., Dynamet had sales of $106 million in 1996. It employs about 300 people in Western Pennsylvania, Clearwater, Fla., and the Los Angeles area. Dynamet will become a wholly owned subsidiary of Carpenter.

As previously announced, Robert J. Torcolini, 46, will serve as Dynamet's president. Torcolini, who had been vice president -- Manufacturing Operations for Carpenter, will report to Cardy.

Carpenter is a major producer of specialty metals and also manufactures various engineered products, such as ceramic cores for the casting industry and injection-molded parts from ceramics and metals. The company now employs about 5,000 people in North America, Europe and Asia. Sales for fiscal year 1996 (ended June 30, 1996) were $865 million.

CONTACT: Carpenter Technology Corp., Reading

Katharine Marshall, Manager-Communications, 610/208-3034