Universal Stainless Announces Improved First Quarter Results.

Business Editors

BRIDGEVILLE, PA--(BUSINESS WIRE)--April 19, 2000

Universal Stainless & Alloy Products, Inc. (Nasdaq:USAP) today announced substantially improved results for the first quarter ended March 31, 2000.

                                   First Quarter,
                                2000          1999
     Net sales           $18,089,000   $14,488,000
     EBITDA              $ 2,141,000   $   991,000
     Net income          $   896,000   $   231,000
     Earnings per
       diluted share     $      0.15   $      0.04

    Commenting on these results, Mac McAninch, President and Chief
Executive Officer of Universal Stainless, stated, "The first quarter
of 2000 reflects a continuation of the improving trends seen in the
second half of 1999. During the quarter, demand from forgers and the
power generation sector continued to strengthen. In addition, we saw a
pick up in demand from the aerospace sector as shipments to service
centers serving this market improved over year-ago levels. First
quarter results were also positively impacted by the implementation of
an alloy surcharge mechanism and by the price increases we announced
at the end of 1999. We also maintained our focus on cost control,
causing SG&A costs to decrease as a percentage of revenues."
    Mr. McAninch continued, "The first quarter also benefited from the
significantly improved performance of our bar mill over year-ago
levels. In fact, the bar mill facility achieved record production
levels during March."
    Mr. McAninch concluded, "As we move into the second quarter, we
remain focused on taking actions to broaden our product line and
further reduce operating costs. We expect demand from the power
generation and service center markets to continue to improve, and we
believe that second quarter results will be higher than first quarter
levels. For the balance of the year, we believe our profitability can
further improve with an increase in demand from the service center
market and the aerospace industry."
    Universal Stainless & Alloy Products, Inc. headquartered in
Bridgeville, Pa., manufactures and markets semi-finished and finished
specialty steels, including stainless steel, tool steel and certain
other alloyed steels. The Company's products are sold to rerollers,
forgers, service centers and original equipment manufacturers, which
primarily include the power generation and aerospace industries.

Except for historical information contained herein, the statements
in this release are forward-looking statements that are made pursuant
to the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. Forward-looking statements involve known and
unknown risks and uncertainties which may cause the Company's actual
results in future periods to differ materially from forecasted
results. Those risks include, among others, risks associated with the
receipt and timing of future customer orders, risks associated with
the manufacturing process and production yields, risks related to
plant and equipment additions and maintenance. Certain of these risks
and other risks are described in the Company's filings with the
Securities and Exchange Commission (SEC) over the last 12 months,
copies of which are available from the SEC or may be obtained upon
request from the Company.

           UNIVERSAL STAINLESS & ALLOY PRODUCTS, INC.
                      FINANCIAL HIGHLIGHTS
       (Dollars in thousands except per share information)
                              (Unaudited)

              CONSOLIDATED STATEMENT OF OPERATIONS

                                      For the Three Months Ended
                                               March 31,
                                          2000           1999

Net sales                              $18,089        $14,488
Cost of products sold                   15,403         12,961
Selling and administrative expenses      1,102          1,014
   Operating income                      1,584            513
Other income (expense)                    (206)          (146)
   Income before taxes                   1,378            367
Income taxes                               482            136
   Net income                         $    896      $     231
Earnings per share:
   Basic                              $   0.15      $    0.04
   Diluted                            $   0.15      $    0.04

Weighted average shares of
Common Stock outstanding
   Basic                             6,072,516      6,163,314
   Diluted                           6,076,084      6,163,314

Tons shipped                            10,840         10,160

EBITDA                                  $2,141           $991

                          BALANCE SHEET DATA

                                   March 31,   December 31,
                                      2000         1999

Current assets                      $32,767       $30,275
Net property, plant & equipment      37,427        36,989
Other assets                          1,026           915
                                    $71,220       $68,179

Current liabilities                 $11,870       $ 9,475
Long-term debt                        9,548        10,005
Deferred taxes                        5,253         5,046
Stockholders' equity                 44,549        43,653
                                    $71,220       $68,179