ATI Announces Sale of Tungsten Materials Business

  ATI Announces Sale of Tungsten Materials Business

Business Wire

PITTSBURGH -- September 16, 2013

Allegheny Technologies Incorporated (NYSE:ATI) announced today that it has
reached an agreement to sell its tungsten materials business to Kennametal
Inc. (NYSE:KMT) for $605 million. The transaction, which is subject to
customary closing conditions and regulatory approvals, is expected to be
completed during the fourth quarter 2013. As a result of this agreement, ATI
will report the financial results of the tungsten materials business in
discontinued operations pending completion of the transaction.

The tungsten materials business, called ATI Tungsten Materials, is part of
ATI’s Engineered Products segment. ATI’s tungsten materials business has
approximately 1,175 employees and produces tungsten powder, tungsten heavy
alloys, tungsten carbide materials, and carbide cutting tools. For the year
ended December 31, 2012, ATI’s tungsten materials business generated total net
revenue of $338.6 million, operating profit of $37.2 million, and EBITDA of
$45.3 million.

“ATI’s growth opportunities are in our High Performance Metals segment
businesses, including precision forgings and titanium investment castings, and
in our diversified Flat-Rolled Products segment business,” said Rich Harshman,
ATI Chairman, President and Chief Executive Officer. “The sale of our tungsten
materials business to Kennametal, a recognized global leader in tungsten-based
wear-resistant products, provides ATI with increased financial flexibility and
simplifies capital allocation and deployment.

“This sale strengthens our focus on ATI’s core strategic businesses and
emphasizes the technical, commercial and operating synergies between our High
Performance Metals and Flat-Rolled Products segment businesses.

“We also believe that the acquisition of the tungsten materials business by
Kennametal improves the competitive position of this business, resulting in a
stronger business for the benefit of customers and employees.”

Goldman, Sachs & Co. acted as sole financial advisor to ATI and K&L Gates LLP
is ATI’s legal counsel in connection with the transaction.

This news release contains forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. Forward-looking
statements are based on management's current expectations and include known
and unknown risks, uncertainties and other factors, many of which we are
unable to predict or control, that may cause our actual results, performance
or achievements to materially differ from those expressed or implied in the
forward-looking statements. Additional information concerning factors that
could cause actual results to differ materially from those projected in the
forward-looking statements is contained in our filings with the Securities and
Exchange Commission. We assume no duty to update our forward-looking

Building the World’s Best Specialty Materials Company™

Allegheny Technologies Incorporated is one of the largest and most diversified
specialty metals producers in the world with revenues of approximately $4.6
billion for the twelve months ending June 30, 2013. ATI has approximately
10,900 full-time employees world-wide who use innovative technologies to offer
global markets a wide range of specialty metals solutions. Our major markets
are aerospace and defense, oil and gas/chemical process industry, electrical
energy, medical, automotive, food equipment and appliance, construction and
mining, and machine and cutting tools. Our products include titanium and
titanium alloys, nickel-based alloys and superalloys, engineered forgings and
castings, zirconium, hafnium, and niobium alloys, grain-oriented electrical
steel, and stainless and specialty steels. The ATI website is


Allegheny Technologies Incorporated
Dan L. Greenfield, 412-394-3004
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