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

April 16, 1997

BIRMINGHAM, Alabama -- Citation Corporation (Nasdaq: CAST) today reported that it had record sales and earnings for its second quarter of fiscal 1997 and first half.
Sales for the second quarter of fiscal 1997 were $170.4 million, an increase of $49.4 million or 41 per cent from fiscal 1996's second quarter of $121.0 million. Net income for the 1997 second quarter was $6.4 million, up $1.1 million or 21 per cent from fiscal 1996's second quarter of $5.3 million. Earnings per share (EPS) of $0.36 for the 1997 quarter is a 20 per cent increase from the $0.30 reported for the comparable quarter of fiscal 1996. For the fiscal first half, sales of $310.9 million topped fiscal 1996's first half results of $212.7 million by $98.2 million or 46 per cent. Net income for the first six months of fiscal 1997 was $9.9 million, an increase of $1.5 million, or 17 per cent, from fiscal 1996's first half of $8.4 million. EPS for the 1997 first half was $0.56, compared to $0.48 in the first half of fiscal 1996.

The sales increase resulted largely from acquisitions including Interstate Forging Industries of Milwaukee, Wisconsin and Navasota, Texas, which was purchased in the first quarter of fiscal 1997. In addition, Bohn Aluminum, Hi-Tech Corporation and full-quarter results of Southern Aluminum Castings contributed to the sales increase. The three were acquired during the second and third quarters of fiscal 1996.

In addition to the impact of acquired companies, sales of Citation's "same store" units also increased by more than three per cent from the comparable quarter. The company shipped 69,300 tons of product during the second quarter of fiscal 1997, up 15 per cent from the 60,400 tons shipped in fiscal 1996's second quarter. Morris Hackney, Chairman and CEO, said, "This quarter reflects the continuing successful integration of the acquisitions made since our IPO in August 1994, as well as improved utilization of major capital projects at two of our largest units and a reasonably solid business climate."

"Our Special Foundry Group which consists of our aluminum, steel and specialty alloy iron divisions had strong volume in both the automotive and industrial sectors during the quarter. Southern Aluminum Castings, which supplies engine sub-assemblies to Ford Motor Co., made good progress in ramping up to meet strong demand after a difficult first quarter." "Interstate Forging, also showed improved results from the first quarter. Volume for steel forgings supplied to its customers in the construction equipment and heavy truck markets was good."

"We still have capacity available in both our High Volume and Medium Volume Foundry Groups, which supply gray and ductile iron castings, however, continuing improvement of the ramp up of our Texas Foundries expansion from the fourth quarter of fiscal 1996 certainly helped results. We have also announced a major capital expansion of our Citation Foam Casting company which will double lost foam capacity there to about $30 million. Much of that expansion is already sold out."

"There is room for improvement at all of our units, however, most appear to be on the right track, and if the overall economy continues approximately in its current path, we anticipate continued improvement in the third and fourth quarters over the comparable prior year quarters."

Citation Corporation is a metal components producer for capital and durable goods industries with 16 manufacturing divisions located in eight states. It has approximately 5,600 employees and fiscal 1996 annual sales were $488 million.

	March 30, 1997*	March 31, 1996*
Sales	$ 170,435	$ 120,955
Gross Profit	$ 29,582	$ 22,345
S, G & A Expenses	$ 15,290	$ 11,776
Operating income	$ 14,292	$ 10,569
Interest Expense	$ 3,836	$ 1,862
Other Income (Expense):	$ 18	$ 119
Income before tax	$ 10,474	$ 8,826
Taxes	$ 4,085	$ 3,530
Net income	$ 6,389	$ 5,296
Earnings per share	$ 0.36	$ 0.30
Avg. Number of Shares Outstanding	17,725.9	17,675.5

	March 30, 1997*	March 31, 1996*
Sales	$ 310,921	$ 212,716
Gross Profit	$ 51,708	$ 38,205
S, G & A Expenses	$ 28,095	$ 21,732
Operating income	$ 23,613	$ 16,473
Interest Expense	$ 7,353	$ 2,651
Other Income (Expense):	$ (91)	$ 218
Income before tax	$ 16,169	$ 14,040
Taxes	$ 6,306	$ 5,616
Net income	$ 9,863	$ 8,424
Earnings per share	$ 0.56	$ 0.48
Avg. Number of Shares Outstanding	17,722.2	17,675.5