January 25, 2000

Quanex Purchases Fort Lupton-Based Aluminum Mill, Newly Acquired Company Renamed Nichols Aluminum-Golden

HOUSTON, Jan. 25 /PRNewswire/ -- Quanex Corporation (NYSE: NX) today announced that it completed the purchase from Alcoa (NYSE: AA) of the Golden Aluminum production facility based in Fort Lupton, Colorado. Terms of the transaction have not been disclosed.

The newly acquired company has become part of Quanex's flat-rolled aluminum sheet business -- Nichols Aluminum. It has been renamed Nichols Aluminum-Golden, in alignment with Nichols' other operating facilities.

Operations at Nichols Aluminum-Golden include melting and casting aluminum into sheet made from a blend of primary P1020 ingot and selected grades of recycled scrap metal, cold rolling it to specific gauge, annealing, leveling, custom coating and slitting to width. Quanex's Nichols Aluminum division also operates an aluminum mini-mill in Davenport, Iowa, and rolling mills in Davenport, Lincolnshire, Illinois; and Decatur, Alabama; that can produce up to 350-million pounds a year of cold finished aluminum coil.

"Golden Aluminum's Fort Lupton-based mill is a good fit with Nichols' other facilities. It significantly upgrades Nichols' production capabilities and provides several opportunities for mutual learning and growth," said Vernon E. Oechsle, chairman of the board and chief executive officer of Quanex. "This acquisition combines Fort Lupton's knowledge of higher-grade products with Nichols' expertise in optimizing production processes. It also broadens the company's product line. Nichols Aluminum-Golden can produce more than 50-million pounds annually of high quality metal for engineered applications in niche markets, such as end and tab stock for food packaging, metal components for computer disks, and home accessory products. Nichols Aluminum is an industrial leader in the low-cost production of large volumes of aluminum sheet for transportation and building and construction markets."

Quanex is a technological leader in the production of value-added engineered steel bars, aluminum flat-rolled products, and engineered, formed- metal products for transportation, capital equipment, homebuilding and remodeling, food packaging, defense and other industries. The company was founded in 1927 and its stock is listed on the New York Stock Exchange under the symbol NX. For more information, call or visit the company's web site at www.quanex.com.

Contact: media, Patrick Cassidy of Quanex Corporation, 713-877-5389.
SOURCE Quanex Corporation
Web site: http: //www.quanex.com
Photo: NewsCom: http: //www.newscom.com/cgi-bin/prnh/19990517/NXLOGO PRN Photo Desk, 888-776-6555 or 201-369-3467
CONTACT: media, Patrick Cassidy, 713-877-5389, or financial, Jeff Galow, 713-877-5327, both of Quanex Corporation
CAPTION: NXLOGO QUANEX CORPORATION LOGO Quanex Corporation logo. (PRNewsFoto)[HD] HOUSTON, TX USA 05/17/1999