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

BRIDGEVILLE, PA, October 19, 1999 -- Universal Stainless & Alloy Products, Inc. (Nasdaq:USAP) today announced results for the quarter ended September 30, 1999:

                   Quarter Ended 9/30,      9 Month Ended  9/30,
                    1999         1998         1999         1998
Net sales     $16,110,000  $15,977,000  $46,083,000  $59,489,000
Net income    $   455,000  $   982,000  $   935,000  $ 4,328,000
Earnings per
diluted share $      0.07  $      0.16  $      0.15  $      0.68

     Commenting on these results, Mac McAninch, President and Chief
Executive Officer of Universal Stainless said, "Sales increased during
the 1999 third quarter in comparison to the year- ago period due to
higher shipments of products to the reroller and power generation
markets. Net income was unfavorably impacted by continued pricing
pressures resulting from imports, as well as rising raw material and
energy costs. Our cost containment programs started in early 1999,
combined with an improved sales mix, enhanced our profitability
despite the issues that continue to impact our markets."
     Mr. McAninch continued, "Looking ahead, we believe the positive
trends of the 1999 third quarter will continue into the fourth
quarter. The power generation sector remains strong and demand for our
bar mill products should increase based on the successful
implementation of several initiatives to improve our production
capabilities."
     The Company also noted that it continued to pursue its stock
repurchase program during the third quarter. Universal Stainless
repurchased an additional 21,200 shares of its common stock, bringing
the total number of shares repurchased to 238,700 since the program
was initiated on October 19, 1998. The Company is authorized to
repurchase an additional 76,300 shares.
     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 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,
risks related to property, plant and equipment. Certain of these risks
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.

                   - FINANCIAL TABLES FOLLOW -
           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 Nine Months Ended
                             September 30,           September 30,
                            1999       1998          1999       1998

Net sales                  $16,110    $15,977      $46,083    $59,489
Cost of products sold       14,210     13,141       41,111     48,940
Selling and administrative
 expenses                    1,007      1,149        2,991      3,625
   Operating income            893      1,687        1,981      6,924
Other income (expense)        (170)      (129)        (496)       (54)
Income before taxes            723      1,558        1,485      6,870
Income taxes                   268        576          550      2,542
   Net income             $    455  $     982     $    935   $  4,328
Earnings per share:
   Basic                  $   0.07  $    0.16     $   0.15  $    0.69
   Diluted                $   0.07  $    0.16     $   0.15  $    0.68

Weighted average shares of
Common Stock outstanding
   Basic                 6,104,661  6,315,450   6,123,523   6,307,387
   Diluted               6,104,661  6,315,450   6,123,523   6,375,624
Tons shipped                10,594     10,625      32,108      38,854

                       BALANCE SHEET DATA

                                September 30, December 31,
                                      1999         1998

Current assets                      $30,475       $28,442
Net property, plant & equipment      37,002        35,710
Other assets                            285           298
                                    $67,762       $64,450

Current liabilities                 $ 9,939       $ 6,613
Long-term debt                       10,752        11,841
Deferred taxes                        4,518         3,431
Total liabilities                    25,209        21,885

Stockholders' equity                 42,553        42,565
                                    $67,762       $64,450

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