Special Metals Corp. and Daido Steel Announce Expansion of Marketing and Sales Joint-Venture

    NEW HARTFORD, N.Y.--June 12, 2001--Special Metals Corporation and Daido Steel Co., Ltd. of Japan have announced the renewal of a series of agreements reflecting their participation in Daido-Special Metals, Ltd., a joint-venture marketing and sales organization. Daido-Special Metals, Ltd. markets an extensive range of superalloys and high-performance alloys produced by Special Metals and Daido Steel in Japan.
    In addition, the companies announced that Daido-Special Metals, Ltd. will assume all distribution sales activity in the Pacific Rim from its service/distribution center in Nagoya, Japan. Similarly, Special Metals Corporation will represent Daido Steel and Daido-Special Metals, Ltd. throughout Europe and the Pacific.
    Special Metals Corporation President T. Grant John commented, "Special Metals has enjoyed a 27-year association with Daido Steel. These agreements are an outgrowth of our long-standing relationship and further strengthen an association that has proven to be mutually beneficial."
    Special Metals Corporation is the world's largest and most-diversified producer of high-performance nickel-based alloys. Its specialty metals are used in some of the world's most technically demanding industries and applications, including: aerospace, power generation, chemical processing, and oil exploration. Through its 10 U.S. and European production facilities and a global distribution network, Special Metals supplies over 5,000 customers and every major world market for high-performance nickel-based alloys.
    As one of the top specialty steel producers in the world, Daido Steel Co., Ltd. has been a perennial leader in the industry. With production facilities in the Pacific Rim and the U.S. and an international distribution network, Daido Steel supplies a diverse range of specialty steel products and other materials for the automotive, electronics, energy-related and aerospace industries.

The statements in this release relating to matters that are not historical facts are forward-looking statements that involve risks and uncertainties, including, but not limited to, the cyclicality of the Company's markets including the aerospace industry, pricing of raw materials, natural gas and electricity, future global economic and financial market conditions, global productive capacity, demand for the Company's products, competitive products, and other risks and uncertainties detailed in the Company's Securities and Exchange Commission filings.