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

November 12, 1997

BIRMINGHAM, Alabama -- Citation Corporation (Nasdaq: CAST) today announced that it had signed a co-maker agreement with LucasVarity and acquired LucasVaritys Camden Casting Center, of Camden, Tennessee. LucasVarity is the worlds largest supplier of anti-lock braking systems.

According to Theo Benz, LucasVarity Vice President of Purchasing, a co-maker agreement means that a LucasVarity supplier is willing to adopt the principles of total quality, lean supply chains, continuous improvement, and open-book partnership. The reward for our partners are long-term supply agreements, he said.

The co-maker agreement covers the supply of castings, forgings, and machining of braking components. Citation had sales to LucasVarity in its fiscal 1997 of more than $13 million.

Camden Casting was LucasVaritys only plant for the production of ductile iron braking parts. Camden currently has 238 employees and will have sales in calendar 1997 of approximately $20 million. Most of the sales are to LucasVarity.

Camden Casting becomes part of the Citation High Volume Group effective December 1. Its high volume molding lines and castings produced are very similar to Citations other High Volume divisions in Texas, Alabama, and Ohio.

The co-maker agreement covers all products currently made by Camden Castings and other divisions of Citation Corporation for LucasVarity. The agreement specifies how Citation and LucasVarity will work together to improve productivity, quality, and delivery of parts manufactured.

Currently Citation produces ductile iron castings for LucasVarity in its Texas Foundries and Alabama Ductile divisions and aluminum castings at its Bohn Aluminum division.

F.F. Sommer, President and COO of Citation, said, This is the largest co-maker agreement Citation has entered into. We have been a significant supplier to LucasVarity for several years and appreciate the confidence the company is placing in us. This move also solidifies Citation as one of the leading producers of braking components.

Citation Corporation is a metal component producer to capital and durable goods industries with 16 manufacturing divisions located in eight states. It has approximately 5,800 employees and sales for the first nine months of fiscal 1997 were $488.8 million.