Carpenter to Acquire Swedish Powder Metal Producer.

Business Editors

WYOMISSING, Pa.--(BUSINESS WIRE)--Feb. 1, 2000

Carpenter Technology Corporation (NYSE:CRS) today acquired the Anval Group, a powder metal producer based in Torshalla, Sweden, as a way to extend its presence in the European market and diversify its business.

Anval had been owned by publicly held Vallourec Group, a manufacturer principally focused in tubular products based in Boulogne, France. The purchase price was under $9 million including the assumption of debt.

Under Vallourec's ownership, Anval evolved from a supplier of powder metal billets for tube extrusion to a diversified supplier of gas atomized metal powder.

These metal powders are used as coatings in high-temperature or corrosive applications, feedstock for the metal-injection molding (MIM) of parts, and hot isostatic pressed billet. Anval's evolution led to fewer synergies with the Vallourec Group.

Anval also is one of the three largest producers of powder high-speed tool steels in Europe. Two of Carpenter's three business units currently are involved in the manufacture and distribution of powder metals, including high-speed tool steels, but sales mostly are within the United States, according to Robert J. Torcolini, president of Carpenter's Dynamet, Incorporated, subsidiary.

Anval and Dynamet Powder Products in Bridgeville, Pa., will comprise a Powder Products Group business unit within Dynamet.

&uot;Anval will help diversify Dynamet's business, which today is heavily dependent on the cyclical aerospace industry,&uot; Torcolini said. &uot;It provides a profitable growth opportunity in raw metal powders and greater business opportunities for us in Europe.&uot;

In 1999, Anval was profitable on sales of about $13 million (U.S.). It employs 80 people in Sweden, Germany and the United States.

Carpenter, based in Reading, Pa., is a leading manufacturer and distributor of specialty alloys and various engineered products.

Carpenter's Dynamet, Incorporated, subsidiary produces titanium alloys as well as powder metal products, while Carpenter's Engineered Products Group produces a range of made-to-order components that include MIM parts. Carpenter had sales of $1.0 billion in fiscal 1999 (ended June 30, 1999).

Information on Carpenter is available at www.cartech.com, with additional information about Dynamet at www.dynamet.com. Information about Anval can be found at www.anval.com, with additional information about Vallourec at www.vallourec.fr.