1. LATROBE SPECIALTY STEEL AMM Aerospace Metals Conference Pittsburgh, PA Dan Hennessy V.P. - Manufacturing April 11, 2007

2. LATROBE SPECIALTY STEEL 2 Outline  LSS History  LSS Capital Investment  Market Conditions  Future Aircraft requirements  LSS Response

3. LATROBE SPECIALTY STEEL 3 Latrobe Specialty Steel  Latrobe Electric Steel Company founded in 1913  Became part of The Timken Company in 1975  Sold by Timken on December 8, 2006 to a group led by Watermill Ventures and Hicks Holdings  Reliably supply high performance materials and related services

4. LATROBE SPECIALTY STEEL 4 Latrobe Specialty Steel  From inception began developing high alloyed steels for specialized applications  Began producing remelted aerospace steels – 1958  VIM and VAR  One of the first producers  Today  Largest global producer of remelted steels  Largest domestic producer of high speed steel  Largest master distributor of tool steels

5. LATROBE SPECIALTY STEEL 5 Capital Expenditures  Invested $100+M from 1990 - 2000  Forging facility, remelt capacity, machining plant  2001 – 2006 invested additional $35M  Additional remelting capacity, added VIM capacity, grinding capacity, sawing capacity, upgraded rolling mill  Result: Modern well equipped facilities for our market segments

6. LATROBE SPECIALTY STEEL 6 Aerospace Assets  Operating Today:  13 vacuum arc remelt furnaces  Three of the largest in the world  30 ton VIM  Numerous approvals and process agreements  Largest number of grades in the industry  Maintaining a dedicated technical department for CI, customer service and product development

7. LATROBE SPECIALTY STEEL 7 Current Market Condition  Boeing and Airbus forecast is stable  Will produce 900+ planes per year  Growth of defense related market  These combine to drive abnormally high demand  However the aerospace market will remain cyclical

8. LATROBE SPECIALTY STEEL 8 Steel Industry’s Reaction  Capacity added at many producers  Last year LSS:  added two vacuum remelt furnaces  Downstream processing equipment  Manpower  Result: Lead time reduction however lead time remains long

9. LATROBE SPECIALTY STEEL 9 Future Outlook  Continued significant requirements for aerospace steels on future commercial aircraft due to:  Combination of strength, ductility and fracture toughness unmatched in materials  Ex. A380 landing gear – one of two globally approved producers  Future aircraft will continue this trend  Producers will require extensive technological expertise and service

10. LATROBE SPECIALTY STEEL 10 LSS Plans  Add additional capacity to further reduce lead time  Will add another large remelt furnace  Start-up first quarter, 2008  Considering other investments  Expect lead times to become reasonable prior to any new entrants becoming certified  Continue to extend our position in marketplace  Technological leadership in premium aerospace steels  Service leadership in our markets

11. LATROBE SPECIALTY STEEL 11 Questions?