December 14, 1998

BIRMINGHAM, Alabama -- Citation Corporation (Nasdaq: CAST) announced today that it has reached an agreement in principle for the purchase of CT-South, Marion, Alabama with the Automotive Foundry Co., Ltd. and the Mitsubishi Corporation. Citation also received notice that the waiting period under the Hart, Scott, Rodino Antitrust Act had been concluded. Citation expects to complete a definitive agreement and close the acquisition December 28, 1998.

CT-South is the second largest producer of ductile iron thin-walled exhaust manifolds for passenger cars and light trucks in North America. Annual sales are approximately $30 million and it has approximately 270 employees.

John Lawson, Citation Group Vice President - Automotive Markets, said, "CT-South will be a good addition to our automotive product group. We currently supply braking, transmission, suspension, steering and engine parts direct to North American automakers and indirect through other component manufacturers.

"CT-South has additional production capacity and is scheduled to launch a number of new programs which would increase sales over the next few years. In addition, CT-South is forecast to be accretive to Citation earnings in the near future," he said.

Citation Corporation is a producer of aluminum, iron and steel components for durable goods and capital good markets with 20 divisions in 10 states. Prior to the acquisition of CT South, Citation employment stood at 6,850. Sales in fiscal 1998 were approximately $724 million.