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NEWS RELEASE

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                                               CONTACT:      Hugh Aiken
                                                             Kevin McDermed
                                                             913 367 2121
                                                             NYSE: FDY

                   OUTSIDE COUNSEL APPOINTED TO INVESTIGATE
                 ACCOUNTING IRREGULARITIES AT ATCHISON CASTING'S
                           PENNSYLVANIA FOUNDRY GROUP

      Atchison, Kansas - November 3, 2000 -[NYSE: "FDY"] "The Audit Committee of
the Board of Directors has engaged Jenner & Block as outside counsel to advise
the committee on the conduct of the investigation into accounting irregularities
at the Pennsylvania Foundry Group ("PFG"), a unit of Atchison Casting
Corporation ("ACC")," said Hugh Aiken, CEO. "Jenner & Block has engaged
PricewaterhouseCoopers as outside accountants to investigate the irregularities,
including the possibility of theft. We expect that Deloitte & Touche LLP, our
auditors, will assist in the investigation. The investigation will also
determine whether restatement of ACC's prior financial reports is necessary, and
if so, what adjustments should be made. The employment of the previous unit CFO
at PFG was terminated on October 25, 2000," added Aiken.

      "In fiscal 2000, which ended June 30, 2000, PFG sales represented $36.3
million, or approximately 8%, of total sales reported by Atchison," said Aiken.
"PFG and ACC continue to operate its business as usual. The accounts that appear
to be affected include receivables, payables, operating expenses and prepaid
expenses. Other accounts may be identified in the investigation," added Aiken.

        "As a result, the Company does not expect to release financial
statements for the fiscal quarter ended September 30, 2000 until the amounts and
periods have been quantified and any necessary restatements have been made."

      Atchison Casting Corporation produces iron, steel and non-ferrous castings
for a wide variety of equipment, capital goods and consumer markets.

      This press release contains forward-looking statements that involve risks
and uncertainties. The Company's actual results could differ materially from the
expected results because of a variety of factors, including the results of the
investigation into the errors described herein and the fact that the amounts and
timing of the accounting errors referred to above are not yet known, nor is the
amount, if any, that may be recoverable from insurance or other parties, and
other factors described in the Company's filings with the U.S. Securities and
Exchange Commission.