Jan. 6, 2006 — Allegheny Technologies Inc. announced that it expects to record a fourth quarter 2005 net special gain of $14.5 to $19.5 million, or $0.14 to $0.19 per share.

Special items, which are primarily non-cash, are expected to include a $38 to $42 million net tax benefit ($0.37 to $0.41 per share) related to the reversal of ATI's remaining valuation allowance for Federal net deferred tax assets, as well as a $14 to $15 million after-tax charge ($0.14 to $0.15 per share) due to asset impairments. The asset impairment charge primarily relates to a 2005 year-end decision to indefinitely idle ATI Allegheny Ludlum's West Leechburg, Pa., flat-rolled products finishing facility. The decision affects approximately 45 hourly production and maintenance employees, and 25 laboratory employees, all of whom will be offered positions at nearby Allegheny Ludlum facilities. ATI expects the consolidation to result in future cash expenditures of less than $2 million, and annual cost reductions of approximately $10 million in its Flat-Rolled Products segment beginning in 2007.

ATI says that additional special items will include a $6 million after-tax charge ($0.06 per share) for legal matters, and a $2.5 million after-tax charge ($0.02 per share) related to the cumulative effect of accounting change for the adoption of FASB Interpretation No. 47, "Accounting for Contingent Asset Retirement Obligations".

Allegheny Technologies Inc. is one of the largest and most diversified specialty materials producers with revenues of approximately $3.4 billion over the last four reported quarters. ATI’s major markets are aerospace, construction and mining, chemical processing/oil & gas, food equipment and appliance, automotive, electrical energy, machine and cutting tools, and medical. 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.