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

October 15, 1996

BIRMINGHAM, Alabama -- Citation Corporation (Nasdaq: CAST) today announced that it had reached an agreement in principle for the sale of its Pennsylvania Steel Foundry and Machine Company in Hamburg, Pennsylvania to Atchison Casting Corporation (Nasdaq: ACCX). Pennsylvania Steel supplies carbon and high alloy steel castings to the power generation, valve and pump industries.

The agreement is subject to completion of a definitive sales contract and approval by both Boards of Directors. Citation originally purchased Pennsylvania Steel from its owner in June 1995.

The tentative sale price for Pennsylvania Steel is for less than the net asset value and is expected to result in a one time loss to Citation of approximately $1.5 million that will be charged against 1996 fiscal year earnings.

T. Morris Hackney, Citation Chairman and CEO, said, "Sale of Pennsylvania Steel allows Citation to withdraw from a market in which we do not have a strong position and to avoid capital expenditures which can be applied elsewhere. This does not, in any way, affect our commitment to other steel casting markets in which our Texas Steel Company is currently engaged."

Citation Corporation is a metal components producer for the durable goods industry with 16 manufacturing divisions located in nine states. Sales for the most recent nine-months period was $356.1 million.