April 27, 2006 — Allegheny Technologies Inc. reported net income of $102.5 million on sales of $1.04 billion for the first quarter of 2006.

The $102.5 million net income ($1.00 per share) compares to net income of $61.0 million ($0.61 per share) for the first quarter of 2005. Sales of $1.04 billion compare to sales of $879.6 million in the first quarter of 2005. Income before tax was $160.2 million, which compares to income before tax of $63.3 million in the first quarter of 2005.

"ATI is off to an outstanding start in 2006, demonstrating strong after-tax profitable growth results and future earnings power," said L. Patrick Hassey, Chairman, President and CEO. "Sales grew to over $1 billion, an increase of 18% compared to the first quarter 2005, and 16% higher than the fourth quarter 2005. Segment operating profit increased 83% compared to the first quarter 2005, and reached 20% of sales as operational execution continued to improve. Net income increased by 68% to $102.5 million, or 10% of sales. Income before tax increased by 153% to $160 million.

"Our key growth markets, namely aerospace and defense, chemical process industry, oil and gas, electrical energy, and medical, remained strong, reaching 62% of ATI's first quarter 2006 sales. Aerospace and defense was the largest of our markets at 31% of first quarter 2006 sales.

"Cash flow was strong and we continued to invest in the business. Capital investments in the first quarter were $52 million, 75% of which were directed towards our high-value products capabilities. We also invested $126 million in additional managed working capital due to significantly higher sales and operating levels. Cash on hand remained nearly flat at $359 million.

"Key financial ratios were very strong in the first quarter 2006. Annualized return on capital employed was over 30%, annualized return on stockholders' equity was over 48%, and net debt to total capitalization improved to 18%.

"We remain focused on reducing costs in 2006 and achieved gross cost reductions of $28 million in the first quarter. Our 2006 cost reduction target is $100 million.

"Demand in our High Performance Metals segment was robust for our premium titanium alloys and nickel-based superalloys for jet engines, and we increased shipments of our titanium alloys used in airframe components. Demand was strong for our exotic alloys, particularly from global corrosion markets and from the aerospace and defense, medical, and electrical energy markets. Operating profit benefited from our ATI Business System (ATIBS) lean manufacturing efforts, which delivered productivity improvements and faster flow of material through our operations.

"In our Flat-Rolled Products segment, with sales essentially flat compared to the first quarter 2005, operating margins improved to over 9% of sales due to cost reductions and an improved product mix. Demand was strong from the key growth markets for our flat-rolled products specialty metals, namely chemical process industry, oil and gas, pollution control for electrical energy, power generation and distribution, and aerospace and defense. Demand from our service center customers began to improve, compared to the second half 2005, as service center inventories returned to better balance and end-use demand was healthy. As overall business activity improved, first quarter 2006 order entry in pounds increased by 30% and 64% compared to the first and fourth quarters 2005, respectively. As a result of these improved conditions, we announced several price increases during the first quarter 2006 for many of our flat-rolled products.

"Our Engineered Products segment had an excellent first quarter. Sales increased 21% due to continued strong demand across most end-use markets. Operating profit reached 16% of sales due to continued improvement in operational execution from ATIBS efforts. Demand from the oil and gas market was very strong, and demand from the transportation, construction and mining, and electrical energy markets remained strong. In addition, demand for our titanium precision metal processing capabilities from the aerospace and defense market remained at a high level.

"Our strategic investments for growth in titanium and titanium alloys, and nickel-based alloys and superalloys are on track. The initial start-up at our Albany, OR upgraded titanium sponge facility went well. We continue to expect increased shipments of our high-value products from these strategic investments by the fourth quarter of 2006.

Outlook—"We expect 2006 to be a year of continuing profitable growth for ATI. Major markets in our High Performance Metals and Engineered Products segments continue to be robust. We expect overall results in our Flat-Rolled Products segment to improve significantly in the second quarter 2006. We expect cash flow to continue to be strong in 2006 enabling ATI to continue to self-fund our strategic investments for growth, and to continue to improve our balance sheet.

"In summary, we are ahead of schedule, committed, and focused on achieving our strategy and profitable growth objectives. We remain dedicated to our disciplined plan and vision of Building the World's Best Specialty Metals Company."

Allegheny Technologies Inc. is one of the largest and most diversified specialty metals producers in the world with revenues of $3.7 billion during the most recent four quarters ending March 31, 2006. ATI’s major markets are aerospace and defense, chemical process industry/oil and gas, electrical energy, medical, automotive, food equipment and appliance, machine and cutting tools, and construction and mining. Products include nickel-based alloys and superalloys, titanium and titanium alloys, stainless and specialty steels, zirconium, hafnium, and niobium, tungsten materials, grain-oriented silicon electrical steel and tool steels, and forgings and castings.