EXHIBIT 99.02

                                  NEWS RELEASE


FOR:              UNIVERSAL STAINLESS & ALLOY PRODUCTS, INC.

APPROVED BY:      Clarence "Mac" McAninch
                  President & CEO
                  (412) 257-7600

FOR IMMEDIATE RELEASE

CONTACT:          Morgan-Walke Associates
                  June Filingeri, Eric Boyriven
                  Media Contact:  Brian Maddox, Estelle Bieber
                  (212) 850-5600


              UNIVERSAL STAINLESS & ALLOY PRODUCTS, INC. ANNOUNCES
                           INSURANCE CLAIM SETTLEMENT

                  BRIDGEVILLE,  PA,  November  25, 1998 - Universal  Stainless &
Alloy Products,  Inc.  (Nasdaq:USAP)  today announced that a settlement has been
reached  with its former  insurance  carrier  regarding  a claim  related to the
six-week  production halt of the Company's universal rolling mill in 1995. After
deducting all fees associated with the settlement of the claim, the Company will
receive  $750,000  before tax,  which will be recorded as a one-time gain in the
1998 fourth quarter.

      The Company  also  announced that it  will record charges  related to  due
diligence costs associated with its intent to acquire AL Tech Specialty  Steels,
Inc. The  Company's  letter of intent to acquire AL Tech expired on November 17,
1998,  as  previously  announced.  The  Company  will  recognize  this and other
non-recurring  charges,  which will total  approximately  $550,000,  in the 1998
fourth  quarter.  Net of  these  one-time  costs,  the  pre-tax  gain  from  the
settlement is anticipated  to be  approximately  $200,000,  or $0.02 per diluted
share after tax.

      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

                                    - MORE -




UNIVERSAL STAINLESS & ALLOY PRODUCTS, INC.                                PAGE 2
INSURANCE CLAIM SETTLEMENT

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 and risks related to plant and equipment additions and maintenance. Those
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.


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