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Tentative Labor Agreement Reached for Allegheny Ludlum and J&L Specialty Steel

May 10, 2004 — Allegheny Technologies Inc. announced that a tentative agreement has been reached on a progressive labor contract covering USWA-represented employees at both ATI Allegheny Ludlum and J&L Specialty Steel.

Patterned after other progressive agreements with the USWA, the tentative collective bargaining agreement will replace existing labor agreements at both Allegheny Ludlum and J&L upon ratification, and would expire June 30, 2007. Ratification of the new agreement, which was a condition of closing to ATI Allegheny Ludlum’s acquisition of J&L Specialty Steel, LLC assets, is expected to occur by May 28, 2004. ATI anticipates being able to close the transaction on or before June 1, 2004.

"This labor agreement helps secure a strong future for the employees of Allegheny Ludlum and J&L Specialty by providing a more competitive cost structure," said Pat Hassey, Chairman, President and CEO of Allegheny Technologies. "The agreement will save jobs while providing the flexibility to efficiently staff and operate these facilities.

"The USWA local and international leadership have been instrumental in reaching this tentative agreement, which helps create a stronger more competitive flat-rolled stainless steel company.

"This agreement, once ratified, puts us in a position to close on the J&L Specialty acquisition. The acquisition enhances our competitive position in the North American flat-rolled stainless steel market. It maintains historical domestic capacity and keeps significant J&L equipment in production. We believe that the new labor agreement and the J&L acquisition best serve employees, retirees, customers and the communities in which the facilities operate."

Further details about the tentative agreement will not be made available until after the ratification process is complete.

Allegheny Technologies Inc. is one of the largest and most diversified specialty materials producers in the world, with revenues of approximately $1.9 billion in 2003. The company’s high-value products include nickel-based and cobalt-based alloys and superalloys, titanium and titanium alloys, specialty steels, super stainless steel, exotic alloys, which include zirconium, hafnium and niobium, tungsten materials, and highly engineered strip and Precision Rolled Strip^(R) products. Commodity specialty materials include stainless steel sheet and plate, silicon and tool steels, and forgings and castings.

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