Universal Stainless & Alloy Products, Inc. Announces Second Quarter Results

BRIDGEVILLE, PA, July 20, 1999 -- Universal Stainless & Alloy Products, Inc. (Nasdaq:USAP) today announced results for the quarter ended June 30, 1999:

                    Quarter Ended June 30         Six Months Ended June 30
                        1999          1998            1999         1998
Net sales        $15,485,000   $21,163,000     $29,973,000  $43,512,000
Net income          $249,000    $1,535,000        $480,000   $3,346,000
Earnings
per diluted share      $0.04         $0.24           $0.08        $0.52

Mac McAninch, President and Chief Executive Officer of Universal Stainless commented, "The second quarter was a continuation of first quarter trends of increased scrap costs and lower selling prices for our products. Price increases initiated in April have been difficult to implement due to the continued impact of imports. Nonetheless,through careful management of our costs we continue to operate profitably. During the quarter, we saw lower sales of forging products due to decreased demand from the petrochemical, oil, and aerospace industries. This was partially offset by renewed demand from the power generation industry. Our scheduled July maintenanceshutdown is complete, and our bar mill is operating on a two-turn basis and the round bar finishing facility is fully operational."

Mr. McAninch continued, "We believe the second half of 1999 will bestronger than the first. While preliminary indications are that scrapcosts will remain high due to foreign demand, we expect domestic pricing to improve as the Asian economies strengthen and importsdecline. We continue to add new customers, and we expect increases in our backlog as market conditions improve. With our bar mill and round bar finishing facility now fully operational, we are aggressively increasing our presence in the finished round bar market." 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 andaerospace industries.

Except for historical information contained herein, the statements inthis release are forward-looking statements that are made pursuantto the safe harbor provisions of the Private Securities LitigationReform Act of 1995. Forward-looking statements involve known andunknown risks and uncertainties which may cause the Company's actual results in future periods to differ materially from forecastedresults. Those risks include, among others, risks associated with thereceipt and timing of future customer orders, risks associated withthe manufacturing process and production yields, risks related toproperty, plant and equipment. Certain of these risks and other risksare described in the Company's filings with the Securities andExchange Commission (SEC) over the last 12 months, copies of which are available from the SEC or may be obtained upon request from the Company.

                   UNIVERSAL STAINLESS & ALLOY PRODUCTS, INC.
                            FINANCIAL HIGHLIGHTS
            (Dollars in thousands except per share information)
                               (Unaudited)

                   CONSOLIDATED STATEMENT OF OPERATIONS

	             For the Quarter Ended	   For the Six Months Ended
	                    June 30,	                    June 30,
	                 1999	    1998	          1999        1998

Net sales	      $15,485    $21,163	       $29,973     $43,512
Cost of products sold  13,940	  17,332	        26,901	    35,799
Selling and 
administrative 
expenses	          970	   1,336	        1,984	     2,476
Operating income	  575 	   2,495	        1,088	     5,237
Other income (expense)	 (180)	     (58)	         (326)	        75
Income before taxes	  395	   2,437	          762	     5,312
Income taxes	          146	     902	          282	     1,966
Net income	     $    249	$  1,535	     $    480	  $  3,346
Earnings per share:
	Basic	     $   0.04  $    0.24	     $   0.08	 $    0.53
	Diluted      $   0.04  $    0.24	     $   0.08	 $    0.52
Weighted average shares of
Common Stock outstanding
	Basic	    6,102,593   6,311,203	    6,132,954 	 6,303,356
	Diluted     6,102,593	6,372,742	    6,132.954 	 6,405,711

Tons shipped 	       11,354	   13,665	       21,514       28,229 

                                 BALANCE SHEET DATA

	                                 June 30,	 December 31,
	                                    1999	        1998

Current assets	                         $28,999	     $28,442
Net property, plant & equipment	          37,116	      35,710
Other assets	                             288 	         298 
	                                 $66,403	     $64,450
Current liabilities	                 $ 9,148	     $ 6,613
Long-term debt	                          10,926	      11,841
Deferred taxes	                           4,133	       3,431
Total liabilities	                  24,207	      21,885

Stockholders' equity	                  42,196	      42,565 
	                                 $66,403	     $64,450

CONTACT: Morgen-Walke Associates
         Gordon McCoun, Eric Boyriven
         Media Contact: Brian Maddox
         (212) 850-5600