ATI Allegheny Ludlum is increasing prices by 4 to 10% for nickel-based alloys, stainless steel super-ferritic alloys, stainless steel super-austenitic alloys, stainless steel high strength alloys, and for AL 332 and AL 334 alloys. The price increase applies to sheet, strip, Precision Rolled Strip^®, and plate product forms. It is effective with new orders entered on or after June 13, 2005.

Allegheny Ludlum says the action is necessary to support capital investment and growth.

Additionally, ATI Allegheny Ludlum is changing the manner of calculating surcharges for certain High Technology Alloy (HTA) products. These changes apply to nickel- based alloys, nickel-based superalloys, electronic alloys and stainless steel super-austenitic alloys in sheet, strip, Precision Rolled Strip and plate product forms.

Effective with new orders for these products beginning June 13, 2005, ATI Allegheny Ludlum will calculate the surcharge based on raw material cost averages for the 4th full month prior to the month of scheduled shipment. In addition, tungsten and cobalt will be added to the surcharge calculation, and the nickel premium component will be increased from $.18/lb to $0.30/lb.

New surcharges have been posted on the ATI Allegheny Ludlum website. Trigger points for the following alloying elements used in the surcharge calculation are to be as follows, with the element trigger followed (in parentheses) by the per pound Reference for monthly average calculation, unless noted.

• Nickel $2.75* LME monthly average
• Chrome $0.40* Platts (published monthly average)
• Molybdenum $3.00* Platts (published monthly average)
• Iron $140 per gross ton* AMM (monthly published price)
• Titanium $3.50* Ryan’s Notes (published monthly average)
• Tungsten $4.00 Ryan’s Notes (published monthly average)
• Cobalt $10.00 Ryan’s Notes (published monthly average)

(* Ni, Cr, Mo, Fe and Ti trigger prices remain unchanged)

The company will continue to use a multiplier of 20% in the calculation of the surcharge to account for nonrecoverable scrap losses for all alloys except titanium. In the case of titanium, a factor of 100% is used due to the reactive nature of that element in melting.

Allegheny Ludlum encourages customers to contact their Allegheny Ludlum sales representative if there are questions.