Universal Stainless Announces Strong Second Quarter Results.

Business Editors

BRIDGEVILLE, Pa.--(BUSINESS WIRE)--July 20, 2000

Universal Stainless & Alloy Products, Inc. (Nasdaq:USAP) today announced substantially improved results for the second quarter ended June 30, 2000.

                    Quarter Ended June 30,   Six Months Ended June 30,
                      2000         1999         2000         1999
Net sales          $19,012,000  $15,485,000  $37,101,000  $29,973,000
EBITDA             $ 2,952,000  $ 1,109,000  $ 5,093,000  $ 2,100,000
Net income         $ 1,366,000  $   249,000  $ 2,262,000  $   480,000
Earnings per
 diluted share     $      0.22  $      0.04  $      0.37  $      0.08

      Mac McAninch, President and Chief Executive Officer of Universal
Stainless, commented, "We are very pleased with our results for the
three- and six-month periods ended June 30, 2000, which showed
significant improvement over year-ago levels. While total tons shipped
decreased during the second quarter of 2000 in comparison to the first
quarter of 2000 and year-ago levels, our increase in sales revenue
resulted from an improved sales mix of products, as well as some price
increases to cover higher raw material and energy costs. We continued
to benefit from increased demand for power generation and aerospace
products shipped to our reroller and forging market customers and for
tool steel and bar mill products shipped to our service center
customers. In addition, our sales revenue from Titusville special
shape products increased by 70% and 56% for the three- and six- month
periods ended June 30, 2000 in comparison to year-ago periods."
      The Company's selling and administrative costs for the three and
six month periods ended June 30, 2000 reflect higher employment costs
in comparison to the year-ago periods, and a non-recurring pre-tax bad
debt charge of $142,000.
      Mr. McAninch continued, "Looking ahead, we continue to remain
optimistic about our future. Our backlog has increased 17.7% over
year-ago levels, and reflects strong demand for our power generation
products and an improved demand for our aerospace products. This,
combined with continued operational improvements, should continue to
generate improved results in the second half of 2000."
      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 Quarter        For the Six Months
                                 Ended                   Ended
                                June 30,                June 30,
                            2000       1999         2000       1999

Net sales                 $19,012    $15,485      $37,101    $29,973
Cost of products sold      15,227     13,940       30,630     26,901
Selling and
 administrative
 expenses                   1,433        970        2,535      1,984
   Operating income         2,352        575        3,936      1,088
Other income (expense)       (250)      (180)        (456)      (326)
   Income before taxes      2,102        395        3,480        762
Income taxes                  736        146        1,218        282
   Net income             $ 1,366     $  249      $ 2,262     $  480
Earnings per share:
   Basic                  $  0.22     $ 0.04      $  0.37     $ 0.08
   Diluted                $  0.22     $ 0.04      $  0.37     $ 0.08

Weighted average shares of
Common Stock outstanding
   Basic                6,072,564  6,102,593    6,072,540  6,132,954
   Diluted              6,076,470  6,102,593    6,076,277  6,132,954

Tons shipped                9,709     11,354       20,549     21,514

EBITDA                     $2,952     $1,109       $5,093     $2,100


                          BALANCE SHEET DATA

                                    June 30,    December 31,
                                      2000          1999

Current assets                      $35,368       $30,275
Net property, plant & equipment      38,079        36,989
Other assets                            878           915
                                    $74,325       $68,179

Current liabilities                 $12,907       $ 9,475
Long-term debt                       10,225        10,005
Deferred taxes                        5,253         5,046
Total Liabilities                    28,385        24,526
Stockholders' equity                 45,940        43,653
                                    $74,325       $68,179