Gov. Rendell Says Pennsylvania-Based Global Manufacturer Expanding

Latrobe Specialty Steel Will Invest $62 Million in Venango, Westmoreland
Counties; Create and Retain 724 Jobs

HARRISBURG, Pa., Jan. 22 /PRNewswire-USNewswire/ -- Latrobe Specialty Steel
Company is strengthening its presence in Pennsylvania by investing $62 million
in an expansion project in two counties, Governor Edward G. Rendell announced
today.

The Governor said the global manufacturer and distributor of
precision-engineered specialty alloys will create at least 107 jobs and retain
617 positions in Venango and Westmoreland counties.

"Latrobe Specialty Steel's commitment to Pennsylvania speaks volumes about our
strong business climate," Governor Rendell said. "Latrobe did its homework and
considered expanding in other states, but ultimately chose to re-invest in
Pennsylvania because of our competitive business environment, talented
workforce, and attractive quality of life.

"We will continue to use our resources to help existing Pennsylvania
manufacturing firms, as well as those that want to locate here and compete
successfully in national and international markets."

Latrobe Specialty Steel is building a 60,000-square-foot manufacturing
facility near its Latrobe headquarters. The plant will house the company's
expanded vacuum induction melting and vacuum arc remelting operations, which
will supply engineered materials for aerospace and defense systems. Latrobe
expects the new facility to be operational by the end of the year.

The Westmoreland County expansion is expected to create 95 new jobs and retain
551 existing ones.

In a complementary project in Venango County, the company plans to expand its
existing building to accommodate a new bar peeler or finishing line to serve
Latrobe Specialty Steel's aerospace customers. At least 12 jobs will be
created and 63 current positions will be retained. The company anticipates the
Sandycreek project will be completed by the third quarter of this year.

"Our aerospace and defense end users look to us for new materials solutions.
With this tripling of vacuum melting capacity, we can broaden our product
range of high-performance alloys. We appreciate the support of the
Commonwealth of Pennsylvania so we can grow within the state," said Hans J.
Sack, president and CEO of Latrobe Specialty Steel.

The Economic Growth Connection of Westmoreland assisted Latrobe Specialty
Steel in its efforts to obtain a $1.2 million funding offer from the
Department of Community and Economic Development that includes a $770,000
opportunity grant, $275,000 in customized job training and $156,000 in job
creation tax credits.

"This is a special project for Latrobe and Westmoreland County," said John
Skiavo, president and CEO of the Economic Growth Connection of Westmoreland.
"The investment that will be made by Latrobe Specialty Steel, along with the
job creation and retention, is very significant for our region. We are
grateful for the state's important participation and support."

The company's project was coordinated through the Governor's Action Team,
economic development professionals who serve as a single point-of-contact for
businesses considering locating or expanding in Pennsylvania.

Since January 2003, GAT has successfully completed 937 projects, resulting in
commitments to create 99,933 new jobs and retain 226,992 existing positions.
The commonwealth has offered more than $1.8 billion in assistance for these
projects, which will leverage more than $11.2 billion in additional
investment.

Latrobe Specialty Steel Company manufactures and distributes
precision-engineered specialty alloys for its international customers.
Airframe and defense systems manufacturers specify Latrobe's high-performance,
vacuum melted and vacuum remelted alloys for jet engine bearings, helicopter
rotor shafts, landing gears, fighting vehicle torsion bars and spacecraft
components. In business continuously since 1913, Latrobe Specialty Steel
employs approximately 900 people in ten locations throughout North America and
Europe. To learn more about the company, visit http://www.latrobesteel.com.

For information on the Governor's Action Team and DCED programs, visit
http://www.NewPA.com or call 1-866-466-3972.

The Rendell administration is committed to creating a first-rate public
education system, protecting our most vulnerable citizens and continuing
economic investment to support our communities and businesses.To find out more
about Governor Rendell's initiatives and to sign up for his weekly newsletter,
visit http://www.governor.state.pa.us.

CONTACT:
Teresa Candori 717-783-1116,
Penny Kline (DCED) 717-783-1132

SOURCE Pennsylvania Office of the Governor

Teresa Candori of the Pennsylvania Office of the Governor, +1-717-783-1116; or
Penny Kline of the Pennsylvania Department of Community & Economic
Development, +1-717-783-1132