GrafTech Wins Supply Contract For Australian Magnesium Corporation's Stanwell Magnesium Project.

Business Editors

WILMINGTON, Del.--(BUSINESS WIRE)--Aug. 13, 2002

GrafTech International Ltd. (NYSE:GTI) today announced that it has been awarded a contract to supply graphite products for Australian Magnesium Corporation's (AMC) Stanwell magnesium project. The contract, awarded by Leighton Contractors Pty Limited, the engineering, procurement and construction contractor for the project, is valued at approximately $6 million.

Under the contract, GTI, a supplier to the magnesium industry for over 40 years, will supply graphite anodes and bipoles to AMC's new plant under construction in Stanwell, Queensland, Australia. These products are critical in the production of magnesium metal in the Alcan EX2 cells, the technology utilized by the new project. GTI expects to ship the products under contract and record the respective revenues in 2003.

"After several years of technical development work with Alcan and its licensees, GTI developed low cost, high purity and high electrical conductivity products for the new Alcan EX2 cells. We were chosen as the preferred supplier for AMC's major project because of our high quality graphite products and strong technical service," commented Scott Mason, president of GTI's Advanced Energy Technology Division. "With the role of magnesium expected to increase in the automotive industry, our relationship with AMC offers new opportunities for growth."

Magnesium is attractive to the automotive industry primarily because of its light weight, which can positively impact auto efficiencies. It is approximately one-quarter the weight of steel and approximately two-thirds the weight of aluminum. As previously announced by AMC, Ford Motor Company has committed to a 10 year take or pay arrangement for approximately half of the new plant's output.

AMC selected the Alcan EX2 technology as the most energy efficient and productive electrolytic cell available, offering advantages including reduced operating costs, capital cost savings, less frequent rebuilds and faster ramp ups. The new AMC plant is expected to begin operations in late 2004.

GrafTech International Ltd. is one of the world's largest manufacturers and providers of high quality natural and synthetic graphite and carbon based products and services, offering energy solutions to industry-leading customers worldwide engaged in the manufacture of steel, aluminum, silicon metal, automotive products and electronics. We have 13 manufacturing facilities in 7 countries and are the leading manufacturer in all of our major product lines. We produce graphite electrodes that are consumed primarily in the production of steel in electric arc furnaces, the steel making technology used by all "mini-mills," and for refining steel in ladle furnaces. We also produce carbon electrodes that are consumed in the manufacture of silicon metal and cathodes that are used in the production of aluminum. In addition, we develop and manufacture natural graphite for use in materials and components for proton exchange membrane fuel cells and fuel cell systems, thermal interface products for computer, communications and other applications, fire retardant products for transportation applications and building and construction materials applications, industrial thermal management products for high temperature process applications, and conductive products for batteries and supercapacitor power storage applications. GRAFCELL(TM), GRAFGuard(TM), GRAFOIL(R), GRAFSHIELD(TM) and eGraf(TM) are trademarks of our subsidiary. For additional information on GrafTech International, call 302-778-8227 or visit our website at www.graftechinternational.com. For additional information on our flexible graphite subsidiary, Graftech Inc., call 216-529-3777 or visit its website at www.graftech.com. For additional information on our High Tech High Temp business unit, call 216-676-2100 or visit its website at www.HT2.com.

Australian Magnesium Corporation Limited (AMC) is one of the world's largest integrated magnesia and magnesium companies. AMC's vision and focus during the past 15 years has been to value add to the world's largest source of cryptocrystalline magnesite at Kunwarara near Rockhampton in Central Queensland through a range of successful magnesia product applications, processes and research projects.

NOTE: This news release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. These include statements about such matters as contract values and performance, product approvals, sales, development, performance, advantages, shipments, commercial acceptance and commercialization, growth opportunities, and construction and future production and operation of facilities by a third party. We have no duty to update such statements. Actual future events and circumstances (including future performance, results and trends) could differ materially from those set forth in these statements due to various factors. These factors include delays in, abandonment of and other risks generally encountered with construction of facilities by a third party and risks generally encountered in the subsequent operation thereof or in demand for products produced thereby, risks generally encountered with commercial launch and acceptance of new or improved products or new uses for existing products, the occurrence of unanticipated events or circumstances relating to research, development and collaboration activities, changes in strategic plans or programs, changes in global or regional economic and competitive conditions, technological developments, and other risks and uncertainties, including those detailed in our filings with the Securities and Exchange Commission.