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Universal Stainless to Assess
Full Alloy Surcharge on Tool Steel

March 19, 2004 — Universal Stainless & Alloy Products, Inc. announced that effective with May 1 shipments, it will include an assessment for chrome, molybdenum and vanadium in its tool steel surcharge formula.

At present, the company only charges for the iron component in its tool steel products, which totaled $0.04 per pound in March. The change in formula could add $0.07 to $0.11 per pound to the iron surcharge already assessed on common-grade tool steel products sold to customers. This estimate is based on current market values for key alloy elements.

Dudley J. Merchant, Vice President of Sales and Marketing, commented: "Specialty steels continue to experience a volatile period due to continued and rapid increases in raw material and energy costs. The additional surcharge is a necessary remedy to offset the heightened cost of producing tool steel products. We hope this advance notice will allow our customers to prepare their marketplace for these pricing changes."

Universal Stainless & Alloy Products, Inc., headquartered in Bridgeville, Pa., manufactures and markets a broad line of semi-finished and finished specialty steels, including stainless steel, tool steel and certain other alloyed steels. The company's products are sold to original equipment manufacturers, service centers, forgers, rerollers and wire redrawers.

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