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

July 24, 1997

BIRMINGHAM, Alabama -- Citation Corporation (Nasdaq: CAST) announced today that it has reached agreement with a consortium of banks, led by The First National Bank of Chicago, to provide a new secured revolving credit facility with a maximum loan commitment of $300 million. The agreement is for three years, commencing July 24, 1997. SouthTrust Bank N.A. serves as Collateral Agent.

Citation's previous credit facility, which had a maximum loan commitment of $230 million, was also led by First Chicago. Currently, Citation's long term debt, under the agreement, is approximately $180 million.

The new loan agreement provides a sliding LIBOR scale based upon the Company's ratio of debt to its cash flow, measured by earnings before interest and taxes plus depreciation and amortization ("EBITDA"). The loan is secured by Citation's assets and contains customary covenants.

R. Conner Warren, Executive Vice President and Chief Financial Officer, said, "The new loan agreement not only provides Citation with a continuing source of loan commitments to support the Company's long term growth requirements, but does so on more favorable terms than our existing agreement."

"We are pleased by the strong evidence of interest in Citation by First Chicago and the other member banks which are part of this loan agreement."

In addition to First Chicago, the other banks which are part of the syndicate are; SouthTrust Bank, AmSouth Bank, National Bank of Canada, National City Bank, SunTrust Bank, CIBC, Bank of Nova Scotia, Mellon Bank, BB&T Bank, Credit Lyonnais, Mercantile Bank, Bank of Tokyo-Mitsubishi, Deposit Guaranty National Bank, First Union National Bank, Michigan National Bank, Sanwa Bank, and Sumitomo Bank.

Citation Corporation is a metal components producer to capital and durable goods industries with 16 manufacturing divisions located in eight states. It has approximately 5,600 employees and sales for the first nine months of fiscal 1997 were $488.8 million.