Consolidated Stainless reports operating results for 1996 year.

ORLANDO, Fla.--(BUSINESS WIRE)--April 16, 1997--Consolidated Stainless Inc. (NASDAQ/NMS:PIPE) Wednesday announced operating results for 1996.

For the 12 months ended Dec. 31, 1996, the company's net sales increased 11.7% to a record $50.8 million, compared with $45.5 million in the prior year. After a $2.5 million inventory write-down during the fourth quarter, the company reported a net loss for 1996 of $2.7 million as compared with net income of $2.7 million for 1995. On a per share basis, the net loss for 1996 was $0.63 as compared with net income of $0.60 for 1995.

"Despite an approximately 35% decline in stainless steel selling prices in 1996, sales increased as a result of the acquisition of Flow Components Inc. (a Houston-based manufacturer of stainless steel forged flanges), Twenty First Century Metals Inc. (a master distributor of stainless steel products in the Chicago area) and the commencement of operations at the company's ornamental and structural tube manufacturing facility," stated Ronald J. Adams, president of Consolidated Stainless Inc. "The 1996 net loss is largely attributable to the $2.5 million inventory write-down as well as the costs involved in integrating these new activities into our already existing operations," added Adams.

"Although the first quarter of 1997 continued to be impacted by lower than anticipated demand and gross profit margins, we believe that the second quarter will show an improvement in selling prices for the stainless steel industry, and more specifically in the company's performance. Realization of such pricing improvement should lead to higher gross profit margins and increased revenues. The company continues to pursue its strategic goal of becoming a leading cost efficient manufacturer and distributor of stainless steel products throughout North America," concluded Adams.

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 and Lakeland, Fla. and Houston. The company operates seven distribution/service centers in Florida (3), California, Georgia, Illinois and Texas.

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

                                 Fiscal Year Ended December 31,
                                  1996                      1995

Net Sales                    $ 50,822,978              $ 45,518,335
Cost of Sales                  42,676,056                32,269,490
Inventory Write-down            2,515,377                    --

GROSS PROFIT                    5,631,545                13,248,845

Selling, General &
Admin. Expenses                 7,067,012                 6,992,709

Income (Loss) from Operations  (1,435,467)                6,256,136

Other Income (Expense):
Interest                       (3,003,386)               (1,486,176)
Cost of abandoned public
 offering                         --                       (533,415)
Other                             337,538                   122,702

INCOME (LOSS) BEFORE
 INCOME TAXES                  (4,101,315)                 4,359,247
Taxes on Income (Benefit)      (1,352,300)                 1,704,200

NET INCOME (LOSS)            $ (2,749,015)               $ 2,655,047

EARNINGS (LOSS) PER SHARE    $      (0.63)               $      0.60

Shares Used in Computing EPS    4,358,456                  4,460,096

CONTACT: Consolidated Stainless Inc., Orlando

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