Court Approves Haynes International Disclosure Statement; Court Ruling Gives Company Go Ahead to Solicit Votes on Plan of Reorganization.

KOKOMO, Ind. -- Company Takes Major Step Toward Emergence from Chapter 11;

Confirmation Hearing Scheduled for August 16, 2004

Haynes International, Inc. announced today that the U.S. Bankruptcy Court for the Southern District of Indiana has approved the Disclosure Statement filed in connection with the Company's Joint Plan of Reorganization. The Bankruptcy Court also authorized the Company to begin soliciting approval from its creditors for its Plan of Reorganization and, ultimately, to seek an Order confirming the Plan. At a hearing Monday in Indianapolis, the Honorable Anthony J. Metz III ruled that the Company's Disclosure Statement contained adequate information for the purposes of soliciting creditor approval for the Plan. A confirmation hearing for the Court to consider approval of the Plan has been scheduled for August 16, 2004. By July 8, 2004, Haynes will mail notice of the confirmation hearing and begin the process of soliciting approvals for the Plan from qualified claim holders. Assuming that the requisite approvals are received and the Bankruptcy Court confirms the Plan in August, Haynes presently expects to emerge from Chapter 11 reorganization no later than August 30, 2004.

Haynes President and Chief Executive Officer, Francis J. Petro, said, "We are extremely pleased by the Court's approval of our Disclosure Statement, which is a key step toward the Company's successful emergence from Chapter 11. We are still on target to emerge from Chapter 11 by the end of the summer in a stronger and more financially stable position. We are very pleased to have the support of the Creditors' Committee and our majority equity holder for our Plan."

The Disclosure Statement

The Disclosure Statement should be reviewed with respect to the specific items of the proposed distributions to be made to creditors and current stockholders, as well as other information relevant to the Plan of Reorganization. The Disclosure Statement includes information about financial projections through fiscal year 2006; the details of the proposed Plan of Reorganization, an estimated range of Haynes' enterprise value upon emergence from Chapter 11, including support for the "best interest" requirement under the Bankruptcy Code; and a description of the events leading up to the filing of the Chapter 11 cases.

As set forth in the projections, Haynes is optimistic that the positive financial trends that it has experienced in recent months will continue, including increased sales in each of its major markets. "As we emerge from Chapter 11, we intend to continue to service our customers and capitalize on the increased customer demand for our products. We are confident that with continued support from our vendors and the $100 million exit financing that we have arranged, we will be able to grow our business," Petro said. "We are appreciative of the support that we have received during our restructuring from our vendors, customers and employees, all of whom have allowed us to use this process to lay the foundation for our future success."

The Plan of Reorganization

As previously reported, the proposed Plan of Reorganization incorporates the terms of the restructuring agreement reached prepetition, which provides that holders of Haynes' Senior Notes will exchange $140 million of 11 5/8% Senior Notes due September, 2004 for 96% of the equity in the reorganized company. Haynes is privately held and its current majority equity holder has agreed to the cancellation of its current equity interests in exchange for its pro rata share of 4% of the equity in the reorganized company which, upon the company's emergence from Chapter 11, will be distributed to the current holders of the company's common stock. The Plan of Reorganization currently provides that the Company's trade creditors will be paid in full in cash when their claims are ultimately allowed. The other two key components of Haynes' restructuring, the modification of its collective bargaining agreement with the USWA and the commitment for exit financing received from Congress Financial Corporation (Central), are already in place.

Solicitation Timetable

The solicitation timetable authorized by the Bankruptcy Court is as follows:

--June 25, 2004 is the Record Date. Certain holders of claims as of this date will receive the mailing from Haynes and be entitled to vote on the Plan.

--July 6, 2004 is the last day for Haynes to file objections to claims that would prevent a claimholder from voting on the Plan unless the claimholder obtains temporary allowance of the claim from the Bankruptcy Court.

--July 8, 2004 is the last day for Haynes to mail its solicitation packages.

--July 23, 2004 is the deadline by which creditors must file motions to seek temporary allowance of claims (for voting purposes only) that have been objected to by Haynes or must otherwise be temporarily allowed in order to be permitted to vote on the Plan.

--Beginning on August 2, 2004, copies of the exhibits to the Plan will be filed with the Bankruptcy Court and can be obtained electronically from the Company's claims and voting agent at www.kccllc.com or the Bankruptcy Court at www.insb.uscourts.gov.

--August 9, 2004 is the Voting and Objection Deadline. This is the deadline for receipt of ballots on the Plan of Reorganization and for filing objections with the Bankruptcy Court to confirmation of the Plan.

--August 16, 2004 is the confirmation hearing.

--August 30, 2004 is the date targeted for Haynes' emergence from Chapter 11.

Haynes International, Inc. is a leading developer, manufacturer and marketer of technologically advanced, high performance alloys, primarily for use in the aerospace and chemical processing industries. The Disclosure Statement and the proposed Plan of Reorganization can be accessed at http://www.kccllc.net/haynes. Information on the Chapter 11 case can also be obtained on the Bankruptcy Court's Web site with PACER registration: http://www.insb.uscourts.gov. Haynes' Chapter 11 cases are being presided over by the Honorable Anthony J. Metz III under consolidated Case No. 04-05364 (AJM).

Cautionary Statement Regarding Forward-Looking Information and Other Matters

Bankruptcy law does not permit solicitation of acceptances of the Plan of Reorganization until the Court approves the applicable Disclosure Statement relating to the Plan of Reorganization as providing adequate information of a kind, and in sufficient detail, as far as is reasonably practicable in light of the nature and history of the debtor and the condition of the debtor's books and records, that would enable a hypothetical reasonable investor typical of the holder of claims or interests of the relevant class to make an informed judgment about the Plan of Reorganization. On June 28, 2004, the Bankruptcy Court approved the Company's Disclosure Statement with respect to the Joint Plan of Reorganization and authorized a balloting and solicitation process that will commence on or about July 8, 2004 and conclude on August 9, 2004. A hearing on confirmation of the Joint Plan of Reorganization is scheduled to commence in the Bankruptcy Court on August 16, 2004. Accordingly, this announcement is not intended to be, nor should it be construed as, a solicitation for a vote on the Plan, which can only occur based on the official disclosure statement package that is being mailed on or about July 8, 2004. The Company will emerge from Chapter 11 if and when the Plan receives the requisite creditor approvals and is confirmed by the Bankruptcy Court.

This document contains certain statements that are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended. Those statements may include statements regarding the intent, belief or current expectations of the Company or its officers with respect to the Company's strategic plans and ability to benefit from this transaction. Readers of this document are cautioned that reliance on any forward-looking statement involves risks and uncertainties. Although the Company believes that the assumptions on which the forward-looking statements contained herein are based are reasonable, any of those assumptions could prove to be inaccurate given the inherent uncertainties as to the occurrence or nonoccurrence of future events. There can be no assurance that the forward looking statements contained in this document will prove to be accurate. The inclusion of a forward-looking statement herein should not be regarded as a representation by the Company that the Company's objectives will be achieved.