CITATION CORPORATION
2 Office Park Circle, Suite 204
Birmingham, AL 35223
Contact: Stanley B. Atkins
205-871-5731

July 24, 1996

BIRMINGHAM, Alabama -- Citation Corporation (Nasdaq: CAST) today announced record sales and earnings for its fiscal third quarter and nine months ended June 30, 1996.

Sales for the third 1996 fiscal quarter were $143.4 million, a 75 per cent increase over the fiscal 1995 third quarter of $82.1 million. Net income for the 1996 quarter was $6.9 million, versus $4.6 million for the third quarter of fiscal 1995, an increase of 49 per cent.

Earnings per share for the fiscal 1996 third quarter was $0.39 compared to $0.35 in the fiscal 1995 third quarter, a 12 per cent increase. As a result of a secondary offering in the last quarter of fiscal 1995, earnings per share for the 1996 period were calculated on a basis of approximately 17.7 million shares outstanding during the quarter versus approximately 13.3 million in the comparable 1995 period, an increase of more than four million shares.

For the fiscal 1996 nine months, sales were $356.1 million, a 65 per cent increase over the $215.6 million sales in the first nine months of fiscal 1995. Net income for the 1996 nine months was $15.3 million versus net income of $12.3 million for the fiscal 1995 nine months, a 25 per cent increase.

Earnings per share for the first nine months of fiscal 1996 was $0.87, versus $0.93 in the fiscal 1995 comparable period, a six per cent decrease. Earnings per share for the nine months was also calculated on a 17.7 million share basis, a four million share increase over the 1995 fiscal nine months shares outstanding.

During its fiscal third quarter, Citation Corporation acquired Bohn Aluminum Corporation in Butler, Indiana. The company also acquired Texas Steel Company in Ft. Worth, Texas; Hi Tech Corporation in Albion, Indiana; and Southern Aluminum Castings Corporation in Bay Minette, Alabama in its second fiscal quarter.

Shipments during the first nine months of fiscal 1996 were approximately 167,000 tons versus approximately 142,000 tons in the comparable period of fiscal 1995. Shipments for the third quarter of fiscal 1996 were 58,700 tons as compared to 52,100 tons in 1995s third quarter. Nine months sales, excluding the companies acquired, were down less than four per cent from the comparable period last year and for the 1996 fiscal quarter were virtually flat compared with last years fiscal quarter.

T. Morris Hackney, Chairman and CEO, said, "good performance in the fiscal third quarter reflects several factors including the better than expected performance of the divisions acquired in fiscal 1996 and the continued improvement of the fiscal 1995 acquisitions excluding Mansfield Foundry. Both our Medium Foundry and Special Foundry Groups and our Alabama Ductile Casting Company in Brewton, Alabama performed well in this past quarter."

"On the negative side, Mansfield Foundry in Mansfield, Ohio had a brief strike during the quarter which reduced earnings and the announced phase down of the Steel Division at Texas Foundries in Lufkin, Texas also reduced earnings, though not substantially. Further, while the Iron Division at Texas Foundries performed better than earlier this year, it did not meet our expectations."

"In general, our business levels and backlogs for the fourth fiscal quarter appear to be in line with the third quarter. However, during the fourth fiscal quarter, a number of our plants will take normal maintenance shutdowns of one or two weeks. While we plan and accrue for these shutdowns, it is normal that results for the fourth fiscal quarter are not as strong as the third quarter because of the shutdowns."

Citations proposed acquisition of Interstate Forging Industries, Inc. is pending. The company has filed a registration statement with the S.E.C. with respect to certain earnout provisions of the acquisition agreement.

Citation Corporation, headquartered in Birmingham, Alabama is a major components supplier to leading manufacturers of durable goods. The company currently operates 18 manufacturing facilities in nine states and employs more than 5,000 employees. During its fiscal year 1995, its annual sales were approximately $308 million.