Universal Stainless Announces Price Increases

BRIDGEVILLE, Pa., July 26, 2004 -- Universal Stainless & Alloy Products, Inc. (Nasdaq:USAP) today announced a 7% base price increase on all premium remelted and high strength low alloy grades of steel and a 5% base price increase on all other stainless and tool steel grades effective with shipments on August 1, 2004. In addition, the Company will increase the premium over the London Metal Exchange price for nickel used to calculate its raw material surcharge from $0.18 per pound to $0.23 per pound. All other factors in the calculation will remain unchanged.

Dudley J. Merchant, Vice President of Sales and Marketing, commented: "The costs of energy, operating supplies and transportation to our company have all risen to new levels. We must recover these costs in the products we supply to the marketplace in order to successfully serve our customers. We will continue to review our pricing policies in relationship to these costs as the year progresses."

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 Company's ability to meet its current loan covenants, risks associated with the receipt, pricing and timing of future customer orders, risks related to the financial viability of customers, risks associated with the manufacturing process and production yields, and 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.

CONTACT:  Universal 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