[GRAPHIC OMITTED]
UNIVERSAL STAINLESS & ALLOY PRODUCTS, INC.
600 Mayer Street o Bridgeville, Pennsylvania 15017
CONTACTS: Richard M. Ubinger
Vice President of Finance,
Chief Financial Officer
and Treasurer
(412) 257-7606
FOR IMMEDIATE RELEASE
- ---------------------
Comm-Partners LLC
June Filingeri
(203) 972-0186
UNIVERSAL STAINLESS REVISES THIRD QUARTER ESTIMATE
BRIDGEVILLE, PA, September 17, 2002 - Universal Stainless & Alloy
Products, Inc. (Nasdaq:USAP) today announced that it expects third quarter 2002
sales to be approximately $15 to $16 million and diluted earnings per share to
be approximately $0.03. The Company's initial projection for the quarter was for
sales in the range of $18 to $21 million and diluted earnings per share of
between $0.09 and $0.14, as reported on July 23, 2002. In the prior year third
quarter, the Company reported sales of $23 million and diluted earnings per
share of $0.38. The Company expects to report final third quarter results on
October 22.
Mac McAninch, President and Chief Executive Officer, commented: "The
stalled recovery of the U.S. economy has resulted in lower than expected demand
from the service center market. Our order patterns in the third quarter suggest
that service centers are replenishing rather than building inventories. The
competition for existing orders and the pullback of tariff protection have put
pressure on pricing as well. We do not expect these conditions to improve for
the balance of the year."
Mr. McAninch continued: "The hourly employees at our Bridgeville
facility continue to work under a day-to-day extension of the collective
bargaining agreement between the Company and the United Steelworkers of America
that would have expired August 31. We are hopeful that a new labor agreement
will be in place within a short period of time. Our revised third quarter
estimate is dependent upon that extension continuing through the remainder of
the quarter or the successful negotiation of a new contract."
USAP REVISES THIRD QUARTER ESTIMATE - PAGE 2 -
Mr. McAninch concluded: "2002 has been more challenging to predict than any
other time in our 8-year history. We are continuing to control our costs
carefully and we remain in constant communication with our customers to assess
their needs. We are prepared to respond quickly to changes in market
conditions."
WEBCAST
- -------
A conference call discussing the Company's revised third quarter outlook is
scheduled at 9:00 a.m. (EDT) today, Tuesday, September 17, 2002. It will be
webcast simultaneously on the Company's web site for all interested parties at
WWW.UNIVSTAINLESS.COM, and thereafter archived on the web site. A telephone
replay of the conference call will be available beginning at approximately 11:00
a.m. (EDT) today, continuing through September 24. It can be accessed by dialing
706-645-9291, passcode 5734264. This is a toll call.
ABOUT UNIVERSAL STAINLESS & ALLOY PRODUCTS, INC.
- -----------------------------------------------
Universal Stainless & Alloy Products, Inc., headquartered in Bridgeville,
Pa., manufactures and markets a broad line of semi-finished and finished
specialty steels, including stainless steel, tool steel and certain other
alloyed steels. The Company's products are sold to original equipment
manufacturers, service centers, forgers, rerollers and wire redrawers.
FORWARD-LOOKING INFORMATION SAFE HARBOR
- ------------------------------------------
EXCEPT FOR HISTORICAL INFORMATION CONTAINED HEREIN, THE STATEMENTS IN THIS
RELEASE ARE FORWARD-LOOKING STATEMENTS THAT ARE MADE PURSUANT TO THE "SAFE
HARBOR" PROVISION OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995.
FORWARD-LOOKING STATEMENTS INVOLVE KNOWN AND UNKNOWN RISKS AND UNCERTAINTIES
THAT 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 ACQUISITION OF THE EMPIRE SPECIALTY STEEL ASSETS AND THE
SUCCESSFUL START-UP OF DUNKIRK SPECIALTY STEEL LLC, RISKS ASSOCIATED WITH THE
RECEIPT, PRICING AND TIMING OF FUTURE CUSTOMER ORDERS, RISKS RELATED TO THE
FINANCIAL VIABILITY OF CUSTOMERS, RISKS ASSOCIATED WITH THE MANUFACTURING
PROCESS AND PRODUCTION YIELDS, RISKS ASSOCIATED WITH THE NEGOTIATION OF A NEW
COLLECTIVE BARGAINING AGREEMENT WITH THE UNITED STEELWORKERS OF AMERICA
REPRESENTING THE HOURLY EMPLOYEES AT THE BRIDGEVILLE FACILITY, AND RISKS RELATED
TO PROPERTY, PLANT AND EQUIPMENT. 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.
# # #