Consolidated Stainless announces third quarter results.

ORLANDO, Fla.--(BUSINESS WIRE)--Nov. 15, 1996--Consolidated Stainless Inc. (NASDAQ/NMS:PIPE) Friday announced that sales for the three months ended Sept. 30, 1996 increased 5.6% to $12.1 million, up from $11.5 million for the comparable period in 1995.

The company incurred a $0.3 million net loss in the third quarter of 1996 as compared with $0.6 million of net income for the same period of 1995, as the company continued on its program to aggressively de-stock its higher cost inventory while selling prices were declining. On a per share basis, net loss for the third quarter of 1996 was $0.07 as compared with net income of $0.14 for the same quarter of 1995.

"Although we were disappointed that stainless steel prices have taken so long to turnaround," stated Ronald J. Adams, president of Consolidated Stainless Inc., "we are very excited that it appears that the anticipated turnaround has finally begun. After more than a year of declining prices, the decline has not only stopped, but along with the rest of the industry, we implemented a price increase of approximately 10 percent on stainless steel pipe this month. 1997 is expected to be a banner year for us with increasing profit margins along with increasing revenues."

Consolidated Stainless Inc. manufactures stainless steel pipe, flanges 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.

Common Stock in Consolidated Stainless Inc. is traded on NASDAQ's National Market System under the symbol "PIPE."

Private Securities Litigation Reform Act of 1995 Compliance Statement: Statements contained in this release that are not based on historical facts are forward looking statements subject to uncertainties and risks including, but not limited to: product and service demand and acceptance, economic conditions, the impact of competition and pricing, capacity and supply constraints or difficulties, and other risks detailed in the company's Securities and Exchange Commission filings. -0-

                  CONSOLIDATED STAINLESS INC.
                 SELECTED FINANCIAL HIGHLIGHTS

                                   Three Months Ended
                                      (UNAUDITED)
                                9/30/96         9/30/95

Sales                         $12,090,743     $11,450,979
Cost of Sales                  10,489,017       8,418,022

GROSS PROFIT                    1,601,726       3,032,957

Selling, General & Admin.
  Expenses                      1,415,534       1,688,667

Income from Operations            186,192       1,344,290

Other Income (Expense):
  Interest                       (793,876)       (381,974)
  Other                            36,732          11,699

INCOME (LOSS) BEFORE TAXES       (570,952)        974,015
Taxes (Benefit) on Income        (246,198)        351,200

NET INCOME (LOSS)             $  (324,754)    $   622,815

EARNINGS (LOSS) PER SHARE:
  Primary                     $     (0.07)    $      0.14
  Fully-diluted               $     (0.07)    $      0.14

Shares Used in Computing EPS:
  Primary                       4,438,366       4,556,249
  Fully-diluted                 4,438,366       4,560,484


                                    Nine Months Ended
                                      (UNAUDITED)
                                9/30/96         9/30/95

Sales                         $39,258,332     $35,604,607
Cost of Sales                  32,277,083      24,645,551

GROSS PROFIT                    6,981,249      10,959,056

Selling, General & Admin.
  Expenses                      5,077,607       5,016,467

Income from Operations          1,903,642       5,942,589

Other Income (Expense):
  Interest                     (2,181,575)     (1,039,814)
  Other                           317,448          78,670

INCOME (LOSS) BEFORE TAXES         39,515       4,981,445
Taxes (Benefit) on Income          (2,011)      1,914,300

NET INCOME (LOSS)             $    41,526     $ 3,067,145

EARNINGS (LOSS) PER SHARE:
  Primary                     $      0.01     $      0.69
  Fully-diluted               $      0.01     $      0.67

Shares Used in Computing EPS:
  Primary                       4,703,465       4,425,509
  Fully-diluted                 4,703,465       4,550,684

CONTACT: Consolidated Stainless Inc., Orlando

Ronald J. Adams, President, 407/896-4000