Universal Stainless Announces Fourth Quarter Results

BRIDGEVILLE, PA Jan. 25, 2000 -- Universal Stainless & Alloy Products, Inc. (Nasdaq:USAP) today announced results for the quarter and year ended December 31, 1999:

Quarter Ended December 31,   Year Ended December 31,
                      1999         1998         1999         1998
Net sales      $20,580,000  $13,106,000  $66,663,000  $72,595,000
Net income     $ 1,168,000  $   676,000  $ 2,103,000  $ 5,004,000
Earnings per
 diluted share $      0.19  $      0.11  $      0.34  $      0.79

Commenting on these results, Mac McAninch, President and Chief Executive Officer of Universal Stainless, stated, "We are very pleased with our fourth quarterperformance, which benefited from increased product demand and favorable production efficiencies. During the quarter, sales volumes were positively impacted bydemand from the reroll, forging and power generation markets, and the addition of new customers."

The Company's 1999 fourth quarter and full-year results reflected a reduction in the effective income tax rate from 37 percent to 31 percent, which increased theCompany's net income by $197,000 or $0.03 per diluted share. The Company's 1998 fourth quarter and full-year results reflected a one-time gain of $149,000, or$0.02 per diluted share.

Mr. McAninch continued, "1999 ended on a strong note, as demand in some of our markets began to recover and pricing pressures from imports started to ease.Looking ahead, we expect to see a continuing recovery in overall demand for our products, particularly in the reroll, forging and power generation markets, as wellas a slight recovery in the service center and aerospace markets. We believe that this higher demand, combined with our focus on cost control, a recentlyimplemented alloy surcharge mechanism and our two recently announced price increases will contribute to sales growth and better profitability. We are optimisticabout our prospects for the coming year."

The Company also noted that it continued its stock repurchase program during the fourth quarter. Universal Stainless repurchased an additional 22,200 shares of itscommon stock, bringing the total number of shares repurchased to 257,900 since the program was initiated on October 19, 1998. The Company is authorized torepurchase an additional 57,100 shares.

Universal Stainless & Alloy Products, Inc., headquartered in Bridgeville, Pa., manufactures and markets semi-finished and finished specialty steels, including stainlesssteel, tool steel and certain other alloyed steels. The Company's products are sold to rerollers, forgers, service centers and original equipment manufacturers, whichprimarily 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 provisionsof the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties which may cause theCompany's actual results in future periods to differ materially from forecasted results. Those risks include, among others, risks associated with the receipt, pricing andtiming of future customer orders, risks associated with the manufacturing process and production yields, risks related to property, plant and equipment. Certain ofthese 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 areavailable 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 Year Ended
                           December 31,           December 31,
                          1999       1998         1999       1998

Net sales              $20,580    $13,106      $66,663    $72,595
Cost of products sold   17,522     11,155       58,633     60,095
Selling and
 administrative expenses 1,308      1,309        4,299      4,934
   Operating income      1,750        642        3,731      7,566
Other income (expense)    (210)       350         (706)       296
Income before taxes      1,540        992        3,025      7,862
Income taxes               372        316          922      2,858
   Net income          $ 1,168  $     676      $ 2,103    $ 5,004
Earnings per share:
   Basic               $  0.19  $    0.11      $  0.34    $  0.79
   Diluted             $  0.19  $    0.11      $  0.34    $  0.79

Weighted average shares of
Common Stock outstanding
   Basic             6,079,637  6,295,935     6,110,911 6,304,524
   Diluted           6,079,637  6,295,935     6,110,911 6,355,231

Tons shipped            12,723      6,608        44,831    45,462

                          BALANCE SHEET DATA

                                 December 31, December 31,
                                      1999         1998

Current assets                      $30,275       $28,442
Net property, plant & equipment      36,989        35,710
Other assets                            915           298
                                    $68,179       $64,450

Current liabilities                 $ 9,475       $ 6,613
Long-term debt                       10,005        11,841
Deferred taxes                        5,046         3,431
Total liabilities                    24,526        21,885

Stockholders' equity                 43,653        42,565
                                    $68,179       $64,450

CONTACT: UNIVERSAL STAINLESS &
         ALLOY PRODUCTS, INC.
         Clarence "Mac" McAninch
         President & CEO
         412/257-7600
         or
         Morgen-Walke Associates
         Gordon McCoun,
         Eric Boyriven
         Media contact:
         Brian Maddox, Brian Bailey
         212/850-5600