Universal Stainless Updates Outlook for First Quarter of 2009, Announces Initiatives...

Universal Stainless Updates Outlook for First Quarter of 2009, Announces
Initiatives to Address Current Economic Conditions

BRIDGEVILLE, Pa., March 24, 2009 (GLOBE NEWSWIRE) -- Universal Stainless & Alloy
Products, Inc. (Nasdaq:USAP) confirmed today that it expects sales for the
quarter ending March 31, 2009 to range from $32 to $42 million as reported on
January 29. However, it does not expect to meet the earnings guidance, made at
that time, of breakeven to $0.10 for the 2009 first quarter due to five factors:

-- Lower than expected surcharge revenues resulting from further
declines in raw material values and the consumption of high cost
material;
-- A breakdown that required a two-week maintenance outage at the
Bridgeville facility's Universal Rolling Mill;
-- An increase to the Company's bad debt reserve due to economic
conditions and customer credit availability;
-- The reduction of operating levels due to lower than expected
order entry; and
-- The implementation of a salaried employee headcount reduction
of 20%.
The Company noted that order entry in its main end markets has been lower than
expected in the first quarter due to the deepening recession and economic
uncertainty. As a result, the Company's current backlog declined to $62 million
from $75 million at December 31, 2008. The Company has adjusted production
levels accordingly, including the extension of its planned melt shop outage for
a previously announced capital improvement program from two weeks to a minimum
of four weeks. Based on a planned inventory build to support the Company's
outage, the extension will not interfere with delivery schedules. However, the
lower production levels will reduce the cost effectiveness of Company operations
and contribute to an expected loss for the first quarter.

Dennis M. Oates, President and Chief Executive Officer, commented: "We are
seeing the effect of the difficult economic conditions across all our markets
and our customers are reluctant to place orders to restock their inventories.
Therefore, we are executing our contingency plan to adjust our operating levels
to the economic realities while focusing on customer deliveries and other
ongoing business needs. Our plan includes reviewing the composition of our stock
inventory in light of the deceleration of business conditions and current
outlook that may lead to utilizing certain stock for production of new ingot
product."

Mr. Oates continued: "Ultimately, the economy and demand for our products are
expected to recover and we will be better positioned to take advantage of the
market demand. Our strong cash position, supplemented by our new credit
agreement with PNC Bank, will allow us to continue executing our long-term
strategy to strengthen our competitive position through essential capital
investment necessary to deliver unparalleled customer service."

About Universal Stainless & Alloy Products, Inc.

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 rerollers, forgers, service centers, original
equipment manufacturers and wire redrawers. More information is available at
www.univstainless.com.

Forward-Looking Information Safe Harbor

Except for historical information contained herein, the statements in this
release are forward-looking statements that are made pursuant to the "safe
harbor" provision of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements involve known and unknown risks and uncertainties
that may cause the Company's actual results in future periods to differ
materially from forecasted results. Those risks include, among others, risks
associated with the receipt, pricing and timing of future customer orders, risks
associated with significant fluctuations that may occur in raw material and
energy prices, risks associated with the manufacturing process, labor and
production yields, risks related to property, plant and equipment, and risks
related to the ultimate outcome of the Company's current and future litigation
and regulatory matters. Certain of these risks and other risks are described in
the Company's filings with the Securities and Exchange Commission (SEC) over the
last 12 months, copies of which are available from the SEC or may be obtained
upon request from the Company.

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CONTACT: Universal Stainless & Alloy Products, Inc.
Richard M. Ubinger, Vice President of Finance, Chief
Financial Officer and Treasurer
(412) 257-7606

Comm-Partners LLC
June Filingeri, President
(203) 972-0186