Consolidated Stainless Announces Second Quarter Results.

ORLANDO, Fla.--(BUSINESS WIRE)--August 15, 1997--Consolidated Stainless Inc. (NASDAQ/NMS:"PIPE") today announced results for its second quarter of 1997.

Sales for the three months ended June 30, 1997 were $14 million, reflecting a 10% increase over the second quarter sales reported in 1996. Sales for the six month period ended June 30, 1997 were $27.4 million, resulting in a 1% increase over results for the same period in 1996, this in spite of a 35% reduction in selling prices for stainless steel pipe compared with the prior periods. Downward pressure on selling prices, created by an oversupply in the U.S. market, and the continued low level of production at the manufacturing operations (i.e. ornamental tubing and buttweld fitting facilities) as well as increased interest expense on the additional indebtedness incurred throughout 1996 to finance capital improvement projects, resulted in a net loss for the quarter of $0.15 per share and a net loss for the six month period of $0.32 per share.

"The Company is expecting the second half of 1997 to reflect a substantial improvement as its new tubing plant and buttweld fitting factory production levels increase and manufacturing efficiencies are implemented. We are optimistic that the growth of market share achieved in the past two years will soon pay off," stated Ronald J. Adams, President of Consolidated Stainless, Inc.

Consolidated Stainless Inc. manufactures stainless steel pipe, flanges ornamental and structural tubing, and nipples, and supplies a broad line of stainless and exotic alloy pipe, valves and fittings (PVF) and related products through its distribution network. The company's customers include original equipment manufacturers, commercial and industrial end-users and other distributors throughout the United States and Canada. Headquartered in Orlando, Consolidated's primary production facilities are located in Auburndale, Fla., Lakeland, Fla. and Houston. The company operates seven distribution/service centers in Florida (3), California, Georgia, Illinois and Texas. -0-

                    CONSOLIDATED STAINLESS INC.
                      STATEMENTS OF OPERATIONS

                                    Three Months Ended
                                 6/30/97         6/30/96
                                        (Unaudited)
Sales                            $14,005,738     $12,740,361

Cost of Sales                     12,306,658      10,524,911

 GROSS PROFIT                      1,699,080       2,215,450

Selling, General & Admin.
  Expenses                         1,837,178       1,796,687

Income (Loss) from Operations      (138,098)         418,763

Other Income (Expense):
  Interest                         (875,533)       (647,459)
  Other                              45,556         240,863
                                   (829,977)       (406,596)


INCOME (LOSS) BEFORE INCOME
  TAXES ON INCOME (BENEFIT)         (968,076)         12,167

Taxes on Income (Benefit)           (308,984)          4,867

NET INCOME (LOSS)                 $ (659,091)     $    7,300

EARNINGS (LOSS) PER SHARE
 Primary                              $(0.15)          $0.00
 Fully Diluted                          N/A            $0.00

WEIGHTED AVERAGE NUMBER OF COMMON
 SHARES AND SHARE EQUIVALENTS
 OUTSTANDING
  Primary                           4,473,804       4,341,959
  Fully diluted                         N/A         4,398,348


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                                      Six Months Ended
                                 6/30/97         6/30/96
                                       (Unaudited)
Sales                            $27,377,422     $27,167,589

Cost of Sales                     24,252,266      21,788,066

 GROSS PROFIT                      3,125,156       5,379,523

Selling, General & Admin.
  Expenses                         3,579,277       3,662,073

Income (Loss) from Operations      (454,121)       1,717,450

Other Income (Expense):
  Interest                       (1,716,155)     (1,387,699)
  Other                              59,048         280,716
                                 (1,657,107)     (1,106,983)
INCOME (LOSS) BEFORE INCOME
  TAXES ON INCOME (BENEFIT)       (2,111,228)        610,467

Taxes on Income (Benefit)           (675,300)        244,187

NET INCOME (LOSS)                $(1,435,928)     $  366,280

EARNINGS (LOSS) PER SHARE
 Primary                              $(0.32)          $0.08
 Fully Diluted                          N/A            $0.08

WEIGHTED AVERAGE NUMBER OF COMMON
 SHARES AND SHARE EQUIVALENTS
 OUTSTANDING
  Primary                           4,469,857       4,322,420
  Fully diluted                         N/A         4,378,808

-0-

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

The statements contained herein that are not historical facts may be forward looking statements. The forward looking statements are subject to certain risks and uncertainties, including without limitation those identified below, which could cause actual results to differ materially from historical results or those anticipated. Readers are cautioned not to place undue reliance on these forward looking statements, which speak only as of their dates.

The following factors could cause actual results to differ materially from historical results or those anticipated: adverse economic conditions, the impact of competitive products and pricing, product demand and acceptance risks, raw material and other increased costs, customer delays or difficulties in the production of products, and other risks detailed from time to time in Consolidated Stainless Inc.'s Securities and Exchange Commission filings.

CONTACT: Consolidated Stainless Inc., Orlando

Ronald J. Adams, President

407/896-4000