Universal Stainless Announces Manganese Surcharge

BRIDGEVILLE, Pa., May 12, 2004 -- Universal Stainless & Alloy Products, Inc. (Nasdaq:USAP) today announced that it is changing its raw material surcharge formula to include a manganese component effective with shipments June 1, 2004. The raw material is sold as 78% ferromanganese. The Company has established a trigger price of $600 per gross ton against which the surcharge will be calculated, based on the U.S. Standard 78% ferromanganese published in Ryan's Notes. The manganese content in each grade of product produced will govern the surcharge formula calculation. In April, the average price for 78% ferromanganese was $1,699 per gross ton.

Dudley J. Merchant, Vice President of Sales and Marketing, commented: "The price of 78% ferromanganese has escalated rapidly. This surcharge will enable us to recover these costs in the products we supply."

About Universal Stainless & Alloy Products, Inc.

Universal Stainless & Alloy Products, Inc., headquartered in Bridgeville, Pa., manufactures and markets a broad line of semi-finished and finished specialty steels, including stainless steel, tool steel and certain other alloyed steels. The Company's products are sold to original equipment manufacturers, service centers, forgers, rerollers and wire redrawers.

Forward-Looking Information Safe Harbor

Except for historical information contained herein, the statements in this release are forward-looking statements that are made pursuant to the "safe harbor" provision of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties that 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 limited operating history of Dunkirk Specialty Steel LLC, risks associated with the receipt, pricing and timing of future customer orders, risks associated with significant fluctuations that may occur in raw material and energy prices, risks associated with the manufacturing process and production yields, risks related to property, plant and equipment and risks related to the ultimate outcome of the Company's current and future litigation matters. 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.

CONTACT: 
Stainless & Alloy Products, Inc.
Richard M. Ubinger, Vice President of Finance,
  Chief Financial Officer and Treasurer
(412) 257-7606

Comm-Partners LLC
June Filingeri
(203) 972-0186