Allegheny Technologies Inc. announced that it will increase its quarterly dividend by 67%, to $0.10 per share. The dividend is payable on December 27, 2005, to stockholders of record at the close of business on December 19, 2005.

“We are confident in ATI's ability to continue to generate strong cash flow over the next several years,” said L. Patrick Hassey, Chairman, President, and CEO. “Our major end markets remain strong, and we are well-positioned to fully achieve ATI's opportunities in 2006 and beyond.

In conjunction with the increased dividend announcement, ATI also commented on capital investments for 2006, which are expected to approximate $225 million. The bulk of the investments are aimed at growing ATI's high-value product capabilities, including the previously announced major expansion of ATI's titanium production capabilities and the previously announced expansion of ATI's premium-melt nickel-based alloy, superalloy, and specialty alloy production capabilities. These two growth projects account for over $100 million of ATI's 2006 capital investment plan.

ATI says it is considering additional investments to expand its high-value products capabilities to better serve rapidly growing global markets, such as aerospace, chemical process and oil & gas, electrical energy, and medical.

The company also said it had made a $100 million voluntary contribution to its U.S. defined benefit pension plan. Although cash contributions were not required for 2005, the company made the voluntary cash contribution during the fourth quarter to improve the plan's funded position.

“The actions announced today are aimed at enhancing shareholder value over the near term and long term by increasing shareholder return, improving ATI's balance sheet, and continuing to invest for profitable growth," commented Hassey.

Allegheny Technologies Inc. is one of the largest and most diversified specialty materials producers in the world with revenues of approximately $3.4 billion over the last four quarters. ATI has approximately 9,000 full-time employees world-wide who use innovative technologies to offer growing global markets a wide range of specialty materials solutions. Our major markets are aerospace, construction and mining, chemical processing/oil & gas, food equipment and appliance, automotive, electrical energy, machine and cutting tools, and medical. Our products include nickel-based alloys and superalloys, titanium and titanium alloys, stainless and specialty steels, zirconium, hafnium, and niobium, tungsten materials, silicon and tool steels, and forgings and castings.