Investors:
                                           Jaime Vasquez
                                           (610) 208-2165
                                           jvasquez@cartech.com

                                           Media:
                                           Katharine Marshall
                                           (610) 208-3034
                                           kmarshall@cartech.com


         CARPENTER TECHNOLOGY ANNOUNCES ADDITIONAL COST
           SAVINGS INITIATIVES AND DIVIDEND REDUCTION

     Wyomissing, Pa. (September 30, 2002) - Carpenter Technology
Corp. (NYSE:CRS) announced today that as part of its strategy to
reduce costs and improve operational effectiveness, it will
eliminate approximately 500 positions -- representing 10 percent
of its global workforce -- through job eliminations, furloughs
and early retirement incentives.  The workforce reductions
include 265 salaried employees or 16% of salaried positions
company wide.

     The company also said its Board of Directors intends to
reduce the quarterly dividend - payable on common stock to
$.0825 cents per share.  Carpenter had been paying a quarterly
dividend of $.33 per share.

     Workforce reductions, combined with other cost savings
initiatives, will result in annual savings of approximately $40
- - $45 million.  The Company expects to dedicate its free cash
flow to debt reduction.

     Dennis M. Draeger, chairman and chief executive officer
said:  "In view of continued pressure from weak market
conditions, including aerospace and power generation, in
addition to low priced imports, we must take actions to ensure
Carpenter remains financially strong and competitive.  The
decision to reduce the workforce is always difficult, and we
regret the hardship that it will have on affected employees.

     "To compete successfully in today's global environment we
must challenge our existing business practices, streamline
operations and reduce our cost structure at an accelerated pace.
The initiatives announced today reflect our commitment to a lean
operating business model in order to be profitable in the trough
of a cyclical downturn."

     The cost savings initiatives being announced today will
result in special charges in the first and second quarters of
fiscal 2003 (ending June 30, 2003).  The combined total of the
special charge is expected to be $20-$25 million.

     These charges will not materially affect Carpenter's
operating cash flow since the severance payments will be funded
predominantly by the company's overfunded pension plan.  In the
current market environment, Carpenter expects to be profitable
before special charges and generate free cash flow for fiscal
2003.

     Carpenter produces and distributes specialty materials,
including stainless steels, titanium alloys, superalloys and
various engineered products.  Information about Carpenter can be
found on the Internet at www.cartech.com, with selected products
sold online at www.carpenterdirect.com.

     Except for historical information, all other information in
this news release consists of forward-looking statements within
the meaning of the Private Securities Litigation Act of 1995.
These forward-looking statements are subject to risks and
uncertainties that could cause actual results to differ from
those projected, anticipated or implied.  The most significant
of these uncertainties are described in Carpenter's filings with
the Securities and Exchange Commission including its report on
Form 10-K for the year ended June 30, 2002, and its most recent
registration statement on Form S-4, filed on October 12, 2001,
as amended on November 29, 2001.  They include but are not
limited to:  1) the cyclical nature of the specialty materials
business and certain end-use markets, including aerospace, power
generation, automotive and consumer durables, which are subject
to changes in general economic and financial market conditions;
2) the ability of Carpenter to recoup increased costs of
electricity, natural gas and raw materials, such as nickel,
through increased prices and surcharges; 3) worldwide excess
manufacturing capacity for certain alloys that Carpenter
produces; 4) fluctuations in currency exchange rates, resulting
in increased competition and downward pricing pressure on
certain Carpenter products; 5) the degree of success of
government trade actions; and 6) fluctuations in stock markets
that could impact the valuation of the assets in Carpenter's
pension trusts and the accounting for pension assets.  Carpenter
undertakes no obligation to update or revise any forward-looking
statements.