Universal Stainless Announces Strong Second Quarter Results

BRIDGEVILLE, Pa.--July 20, 2000--Universal Stainless & Alloy Products, Inc. (Nasdaq:USAP)today announced substantially improved results for the second quarter ended June 30, 2000.

                    Quarter Ended June 30,   Six Months Ended June 30,
                      2000         1999         2000         1999
Net sales          $19,012,000  $15,485,000  $37,101,000  $29,973,000
EBITDA             $ 2,952,000  $ 1,109,000  $ 5,093,000  $ 2,100,000
Net income         $ 1,366,000  $   249,000  $ 2,262,000  $   480,000
Earnings per
 diluted share     $      0.22  $      0.04  $      0.37  $      0.08

Mac McAninch, President and Chief Executive Officer of UniversalStainless, commented, "We are very pleased with our results for thethree- and six-month periods ended June 30, 2000, which showedsignificant improvement over year-ago levels. While total tons shippeddecreased during the second quarter of 2000 in comparison to the firstquarter of 2000 and year-ago levels, our increase in sales revenueresulted from an improved sales mix of products, as well as some priceincreases to cover higher raw material and energy costs. We continuedto benefit from increased demand for power generation and aerospaceproducts shipped to our reroller and forging market customers and fortool steel and bar mill products shipped to our service centercustomers. In addition, our sales revenue from Titusville specialshape products increased by 70% and 56% for the three- and six- monthperiods ended June 30, 2000 in comparison to year-ago periods." The Company's selling and administrative costs for the three andsix month periods ended June 30, 2000 reflect higher employment costsin comparison to the year-ago periods, and a non-recurring pre-tax baddebt charge of $142,000.

Mr. McAninch continued, "Looking ahead, we continue to remainoptimistic about our future. Our backlog has increased 17.7% overyear-ago levels, and reflects strong demand for our power generationproducts and an improved demand for our aerospace products. This,combined with continued operational improvements, should continue togenerate improved results in the second half of 2000."

Universal Stainless & Alloy Products, Inc. headquartered inBridgeville, Pa., manufactures and markets semi-finished and finishedspecialty steels, including stainless steel, tool steel and certainother 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 statementsin this release are forward-looking statements that are made pursuantto the safe harbor provisions of the Private Securities LitigationReform Act of 1995. Forward-looking statements involve known andunknown risks and uncertainties which may cause the Company's actualresults in future periods to differ materially from forecastedresults. Those risks include, among others, risks associated with thereceipt and timing of future customer orders, risks associated withthe manufacturing process and production yields, risks related toplant and equipment additions and maintenance. Certain of these risksand other risks are described in the Company's filings with theSecurities and Exchange Commission (SEC) over the last 12 months,copies of which are available from the SEC or may be obtained uponrequest 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        For the Six Months
                                 Ended                   Ended
                                June 30,                June 30,
                            2000       1999         2000       1999

Net sales                 $19,012    $15,485      $37,101    $29,973
Cost of products sold      15,227     13,940       30,630     26,901
Selling and
 administrative
 expenses                   1,433        970        2,535      1,984
   Operating income         2,352        575        3,936      1,088
Other income (expense)       (250)      (180)        (456)      (326)
   Income before taxes      2,102        395        3,480        762
Income taxes                  736        146        1,218        282
   Net income             $ 1,366     $  249      $ 2,262     $  480
Earnings per share:
   Basic                  $  0.22     $ 0.04      $  0.37     $ 0.08
   Diluted                $  0.22     $ 0.04      $  0.37     $ 0.08

Weighted average shares of
Common Stock outstanding
   Basic                6,072,564  6,102,593    6,072,540  6,132,954
   Diluted              6,076,470  6,102,593    6,076,277  6,132,954

Tons shipped                9,709     11,354       20,549     21,514

EBITDA                     $2,952     $1,109       $5,093     $2,100


                          BALANCE SHEET DATA

                                    June 30,    December 31,
                                      2000          1999

Current assets                      $35,368       $30,275
Net property, plant & equipment      38,079        36,989
Other assets                            878           915
                                    $74,325       $68,179

Current liabilities                 $12,907       $ 9,475
Long-term debt                       10,225        10,005
Deferred taxes                        5,253         5,046
Total Liabilities                    28,385        24,526
Stockholders' equity                 45,940        43,653
                                    $74,325       $68,179

Contacts:

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