RathGibson Enters Important Phase of Financial Restructuring

LINCOLNSHIRE, Ill.--(Business Wire)--
RathGibson, Inc. and its domestic affiliates ("RathGibson" or the "Company")
announced today that they have begun reorganization proceedings under Chapter 11
of the United States Bankruptcy Code in the United States Bankruptcy Court for
the District of Delaware.

In connection with the filing, RathGibson also has filed a proposed plan of
reorganization that provides for holders of allowed general unsecured creditors
to be unimpaired and paid in full on undisputed amounts owed prior to the
bankruptcy filing. The plan has the unanimous support of the Company`s
prepetition secured lender, Boards of Directors, and the management leadership
of the Company, as well as certain key noteholders. The plan, if consummated,
will result in significantly reducing the Company's debt burden. The Chapter 11
filing marks an important step in RathGibson`s ongoing efforts to position the
Company for long-term success.

"The current management team inherited a significant debt load that cannot be
sustained, particularly in these challenging financial markets," said Mike
Schwartz, President and CEO of RathGibson. "As a result, we must take action to
position the Company for the future."

"No one should be confused about what a bankruptcy process means for RathGibson.
Following a record year of performance in 2008 for RathGibson and the industry,
we are experiencing demand levels reduced by 50%. This reduction in demand
combined with our leveraged position necessitates this action. We will emerge
from this process stronger than ever."

Schwartz emphasized that the Chapter 11 filing should have no impact on
day-to-day operations. "We have, subject to bankruptcy court approval, which we
expect to obtain, secured `debtor-in-possession` financing which will provide
the company with sufficient liquidity to continue normal operations during this
transition period. Our brand, our products, our quality systems and our people
remain strong. This process is strictly a financial restructuring of our debt.
We are fully committed to ensuring that our valued customers and channel
partners are not affected by this restructuring process. During this period, we
will work even more closely with our customers, channel partners, vendors,
suppliers and employees to deliver the same level of service they expect and
deserve from RathGibson. I remain thankful for the steadfast support of our
employees and other stakeholders throughout this entire process, and I am
confident in our ability to expand and pursue new opportunities for the
RathGibson brand."

RathGibson is a worldwide manufacturer of highly engineered stainless steel,
nickel, and titanium tubing for diverse industries such as chemical,
petrochemical, energy - power generation, energy - oil and gas, food, beverage,
pharmaceutical, biopharmaceutical, medical, biotechnology, and general
commercial.

RathGibson`s corporate headquarters are located close to Chicago in
Lincolnshire, Illinois. Manufacturing locations include: Janesville, Wisconsin,
North Branch, New Jersey, Clarksville, Arkansas (Greenville Tube), and Marrero,
Louisiana (Mid-South Control Line). In addition to the sales offices in
Janesville, North Branch, and Marrero, RathGibson has also strategically placed
sales offices in Houston, Texas, USA; Shanghai, China; Manama, Bahrain;
Melbourne, Australia; Seoul, Republic of Korea; Mumbai, India; Singapore;
Vienna, Austria; and Buenos Aires, Argentina.

For more information about RathGibson, Greenville Tube, and Mid-South Control
Line products, please visit www.RathGibson.com, www.GreenvilleTube.com, and
www.ControlLine.com.

All Media Inquiries
RathGibson, Inc.
Kirk Thorne, Vice President Sales and Marketing
1-847-594-2038

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