Reunion Industries Announces Year 2000 Results

PITTSBURGH--(BUSINESS WIRE)--April 19, 2000--Reunion Industries, Inc., (AMEX:RUN), reported net income of $5.1 million, or $0.38 per share, on sales of $180.4 million for the year ended December 31, 2000.

Full year 2000 results include sales of $138.4 million from the Company's Metals Group and sales of $42.0 million from its Plastics Group. The Company had an operating profit of $15.7 million for the year 2000, which includes a gain of $4.9 million on the previously announced sale of the Plastics Group's Irish operations and a gain of $2.4 million on the sale of real estate in the Metals Group. The Company's reported net income of $5.1 million for year 2000 includes net income from discontinued operations of $1.3 million and net losses from extraordinary charges of $1.9 million.

Although not strictly comparable due to the merger of Reunion and Chatwins Group, Inc. on March 16, 2000 and the simultaneous acquisition of Kingway Material Handling Company, income from continuing operations was $5.6 million, or $0.42 per share, for the year ended December 31, 2000 on sales of $180.4 million versus a loss of $0.7 million, or ($0.12) per share, for the year ended December 31, 1999 on sales of $120.2 million.

Company President Kimball J. Bradley commented that the year 2000 was a period of changes, challenges, and successes. "Since the merger, one of our primary goals in 2000 was to strengthen the Company's balance sheet and financial position through debt reduction. To that end, the sale of non-core assets in year 2000 helped us reduce debt by over $30 million. We are now well-positioned to grow our businesses. We remain committed to increasing shareholder value.

Reunion Industries is headquartered at 11 Stanwix Street, Suite 1400, Pittsburgh, Pennsylvania, 15222. The Metals Group, through its five manufacturing divisions, designs, manufactures and markets a broad range of metal fabricated and machined industrial parts and products, including seamless steel pressure vessels, fluid power cylinders, industrial cranes and structures for bridges, leaf springs and material handling systems. The Plastics Group manufactures high volume, precision plastics products and thermoset compounds and provides engineered plastics services.

The press release contains forward-looking statements as defined by Section 21E of the Securities Act of 1934, as amended, concerning the Company's expectations about the future results of operations, financial position and cash flows. Actual results may differ materially from these forward-looking statements depending on future events, including events beyond the control of the Company. Additional information on factors and risks that could potentially affect the Company's future operations are contained in the Company's reports and filings with the Securities and Exchange Commission.

                       REUNION INDUSTRIES, INC.
                  CONSOLIDATED SUMMARY OF OPERATIONS
             (in thousands, except per share information)

                                        Year Ended December 31,
                                        2000               1999
                                      --------           --------

Sales                                 $180,417           $120,150
                                      ========           ========

Operating profit                      $ 15,699           $  6,247
                                      ========           ========

Net income                            $  5,140           $  1,166
                                      ========           ========
Income applicable to
  common stockholders                 $  5,045           $    710
                                      ========           ========

Net income per share (basic)          $   0.38           $   0.07
                                      ========           ========

Net income per share (diluted)        $   0.38           $   0.07
                                      ========           ========
Weighted average shares
  outstanding (basic)                   13,236              9,500
                                      ========           ========
 Weighted average shares
  outstanding (diluted)                 13,306              9,500
                                      ========           ========

CONTACT: Reunion Industries, Inc., Pittsburgh
John M. Froehlich, 412/281-2111

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