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Citation Corporation Makes Announcement

9 November 1998

Citation Corporation Makes Announcement

    BIRMINGHAM, Ala.--Nov. 9, 1998--Citation Corporation announced today that T. Morris Hackney, Chairman of the Board of Citation, has granted to Drummond Company, Inc. of Birmingham a 120-day option to purchase four million shares of common stock of Citation currently owned by Mr. Hackney. The exercise of the option by Drummond is subject to due diligence. The purchase price for the shares, which constitute approximately 22.2% of the common stock of Citation currently outstanding, is $20.00 per share.
    Mr. Hackney founded Citation Corporation in 1974, has served as Chairman of the Board since its inception, and served as its Chief Executive Officer from 1974 until September 1998. In addition, Mr. Hackney held the position of President of Citation from 1974 until July 1996. Mr. Hackney will continue to serve as Chairman of the Board of Citation and, if the option is exercised by Drummond, Mr. Hackney, his family and affiliates will continue to own approximately 1.7 million shares of common stock of Citation.
    Guy K. Mitchell, Jr., President of Drummond, stated that Drummond was entering into the option agreement, and subject to due diligence, would be acquiring the Citation shares for investment purposes. Drummond is a privately held firm founded in 1935. It operates three surface mines and one underground mine in Alabama. Through an affiliate, Drummond Company Ltd., Drummond operates a large surface mine in Columbia, South America. Its mines produced 12.8 million tons of coal in 1997. Drummond also operates ABC Coke, a foundry coke producer. In addition to its operating facilities, Drummond owns real estate developments in Florida, California and Alabama.
    Citation is a metal components supplier to capital and durable goods industries. It currently operates 19 manufacturing divisions in 10 states and employs about 6,400 employees.