Jan. 25, 2007 — Allegheny Technologies Inc.’s Board of Directors has approved the expansion of the company’s titanium and nickel-based superalloy capabilities at facilities located in the Carolinas.

The project includes the addition of an integrated 10,000-ton press forge and a 700-mm rotary forge, plus conditioning, finishing, and an inspection facility to support increased forged product requirements. ATI will also add a fourth Plasma Arc Melt (PAM) furnace to support premium titanium alloy growth requirements. (Plasma arc melting is a superior cold-hearth melting process for making alloyed titanium products for jet engine rotating parts, medical applications, and other critical applications.)

ATI will also expand its vacuum arc remelt (VAR) capacity to support premium nickel-based superalloy and titanium growth. (VAR melting is a consumable electrode re-melting process that improves the cleanliness and chemical homogeneity of the alloys.)

The capital project is intended to help ATI meet growing demand from the aerospace and defense (both jet engine and airframe), electrical energy, medical, and oil and gas markets. The investment totals approximately $215 million, which is expected to be nearly evenly spread over the next three years.

“This strategic growth project further strengthens ATI’s leadership position in the production of technically demanding premium titanium and nickel-based superalloy long products,” said Patrick Hassey, Chairman, President and CEO of Allegheny Technologies. “This combination of equipment is unique in the specialty metals industry. These investments enhance our ability to meet our customers’ current and future technical requirements and create a platform for further innovation.

“ATI’s long-term supply agreements in the aerospace jet engine and airframe market, and expected growth in the power generation, medical, and oil and gas markets make this project important to achieving our strategic growth objectives.”

ATI expects this self-funded project to be substantially completed by the end of 2009, with the fourth PAM furnace to begin production by the fourth quarter 2008, and the new forging capacity to be operational by the third quarter 2009. ATI expects the one new VAR to be in production in the first quarter 2008, with the remaining four VAR furnaces to be installed as needed.

Allegheny Technologies is one of the largest and most diversified specialty metals producers in the world with revenues of $4.9 billion during 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 titanium and titanium alloys, nickel-based alloys and superalloys, stainless and specialty steels, zirconium, hafnium, and niobium, tungsten materials, grain-oriented silicon electrical steel and tool steels, and forgings and castings.