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PRESS RELEASE
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FOR IMMEDIATE RELEASE: CONTACT:
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John A. St. Wrba
TITANIUM METALS CORPORATION Vice President and Treasurer
Three Lincoln Centre (972) 233-1700
5430 LBJ Freeway, Suite 1700
Dallas, Texas 75240-2697
(972) 233-1700
Haynes and TIMET Announce Long-Term Conversion Agreement for Flat Products
Kokomo, Indiana and Dallas, Texas, November 20, 2006 -- Haynes International,
Inc. ("Haynes") (OTC: HYNI.PK) and Titanium Metals Corporation ("TIMET") (NYSE:
TIE) today announced that the companies have entered into a long term agreement
under which Haynes will process titanium metal for TIMET into a variety of flat
products, including plate and sheet, on Haynes' 4-High Steckel Rolling mill
located at Haynes' facilities in Kokomo, Indiana. Under the agreement, TIMET
agreed to pay $50 million to Haynes in exchange for Haynes' commitment to
provide capacity to TIMET to process up to 10 million pounds of titanium per
year on Haynes' 4-High Steckel Rolling mill for a period of 20 years with an
option to increase the annual volume to 20 million pounds per year, subject to
TIMET's agreement to provide financing necessary to fund capital expenditures
necessary to achieve such increased process volumes. In addition to the up-front
fee, TIMET will pay Haynes for its processing services during the term of the
agreement and will sell certain quantities of titanium metal to Haynes.
Haynes' 4-High Steckel Rolling mill is well suited for rolling of titanium flat
products and is capable of rolling plate and sheet up to 72" wide. An integrated
computer control system supports the 4-High Steckel Mill and five re-heat
furnaces.
Steven L. Watson, TIMET's Vice Chairman and Chief Executive Officer, said, "This
agreement is the culmination of several years of cooperative effort between the
operating management teams of TIMET and Haynes in developing procedures and
qualifications for processing titanium flat products utilizing Haynes' 4-High
Steckel Rolling mill capabilities. This agreement provides TIMET with a
long-term secure source for processing these types of products, resulting in a
significant increase in our existing mill product conversion capabilities which
will allow us to in turn provide certainty to our customers of our long-term
ability to meet their needs. It also enhances utilization of existing process
capacity, which allows both companies to deploy their capital resources in a
more efficient manner. We look forward to a long-term mutually beneficial
relationship with Haynes in this agreement and will continue to explore similar
opportunities in other manufacturing processes."
Francis Petro, President and Chief Executive Officer of Haynes, said, "We are
very pleased to enter into this agreement with TIMET. This agreement enables
Haynes to monetize a portion of our excess mill capacity, while providing TIMET
with the benefit of our considerable expertise and experience in rolling flat
products. We look forward to working with TIMET under these new long-term
arrangements. With the conclusion of this transaction we will now turn our
attention to other aspects of our plans to enhance shareholder value, including
a review of our existing capital structure and pursuit of a full listing of our
common stock on the NASDAQ Stock Market."
The statements in this release relating to matters that are not historical facts
are forward-looking statements that represent management's beliefs and
assumptions based on currently available information and involve risks and
uncertainties, including but not limited to, the cyclicality of the commercial
aerospace industry, future global economic conditions, global productive
capacity, competitive products and other risks and uncertainties included in
TIMET's filings with the Securities and Exchange Commission.
TIMET, headquartered in Dallas, Texas, is a leading worldwide producer of
titanium metal products. Information on TIMET is available on its website at
www.timet.com.
Haynes International, Inc. is a leading developer, manufacturer and marketer of
technologically advanced, high performance alloys, primarily for use in the
aerospace and chemical processing industries. Information on Haynes is available
on its website at www.haynesintl.com.