Universal Stainless Announces Improved First Quarter Results

BRIDGEVILLE, PA, April 19, 2000 -- Universal Stainless & Alloy Products, Inc. (Nasdaq:USAP) today announced substantially improved results for the first quarter ended March 31, 2000.

                                   First Quarter,
                                2000          1999
     Net sales           $18,089,000   $14,488,000
     EBITDA              $ 2,141,000   $   991,000
     Net income          $   896,000   $   231,000
     Earnings per
       diluted share     $      0.15   $      0.04

Commenting on these results, Mac McAninch, President and Chief Executive Officer of Universal Stainless, stated, "The first quarter of 2000 reflects a continuation of the improving trends seen in the second half of 1999. During the quarter, demand from forgers and the power generation sector continued to strengthen. In addition, we saw a pick up in demand from the aerospace sector as shipments to service centers serving this market improved over year-ago levels. First quarter results were also positively impacted by the implementation of an alloy surcharge mechanism and by the price increases we announced at the end of 1999. We also maintained our focus on cost control, causing SG&A costs to decrease as a percentage of revenues."

Mr. McAninch continued, "The first quarter also benefited from the significantly improved performance of our bar mill over year-ago levels. In fact, the bar mill facility achieved record production levels during March."

Mr. McAninch concluded, "As we move into the second quarter, we remain focused on taking actions to broaden our product line and further reduce operating costs. We expect demand from the power generation and service center markets to continue to improve, and we believe that second quarter results will be higher than first quarter levels. For the balance of the year, we believe our profitability can further improve with an increase in demand from the service center market and the aerospace industry."

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 risksinclude, 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 plant and equipment additions and maintenance. 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 Three Months Ended
                                               March 31,
                                          2000           1999

Net sales                              $18,089        $14,488
Cost of products sold                   15,403         12,961
Selling and administrative expenses      1,102          1,014
   Operating income                      1,584            513
Other income (expense)                    (206)          (146)
   Income before taxes                   1,378            367
Income taxes                               482            136
   Net income                         $    896      $     231
Earnings per share:
   Basic                              $   0.15      $    0.04
   Diluted                            $   0.15      $    0.04

Weighted average shares of
Common Stock outstanding
   Basic                             6,072,516      6,163,314
   Diluted                           6,076,084      6,163,314

Tons shipped                            10,840         10,160

EBITDA                                  $2,141           $991

                       BALANCE SHEET DATA
   
                                   March 31,   December 31,
                                      2000         1999

Current assets                      $32,767       $30,275
Net property, plant & equipment      37,427        36,989
Other assets                          1,026           915
                                    $71,220       $68,179

Current liabilities                 $11,870       $ 9,475
Long-term debt                        9,548        10,005
Deferred taxes                        5,253         5,046
Stockholders' equity                 44,549        43,653
                                    $71,220       $68,179 

Contact:
Universal Stainless & Alloy Products, Inc.
Clarence "Mac" McAninch
President & CEO
(412) 257-7600
or
Morgen-Walke Associates, New York
Gordon McCoun, Eric Boyriven
Media contact:
Brian Maddox, Claudia Moscarella
(212) 850-5600