SOURCE: Alloy Steel International

August 12, 2008 09:57 ET

Alloy Steel International Inc (AYSI) Earnings Update

NEW YORK, NY--(Marketwire - August 12, 2008) - Alloy Steel International Inc (OTCBB: AYSI) -- The directors are pleased to advise that as stated in the company's 10Q for period 9 Months to June 30, 2008, earnings per share this year are 10.7 cents per share compared with 3.4 cents per share for the same period last year, an increase of 7.3c or 214%.

On sales of $9.9 Million (2007 5.3 Million) income before taxes was $2.7 million (2007 0.8 Million), an increase of 1.9 million or 240%.

Alloy's directors are confident that the growth will continue in line with increased production facilities, Company on line in August 2008 and the expansion of markets particularly Mongolia.

Investors should be aware that the nature of our business means that the company will always be subject to fluctuations in its quarterly results. It should be remembered that production to date has been carried out on a single mill whilst we have been building the second updated production mill.

End users of Arcoplate have a varying refurbishment timetable as well as non-planned repair needs; also the commencement of new projects and upgrades with existing clients are subject to timetable changes which cannot be predicted.

It has always been company policy to maintain and supply service to existing clients in preference to new business. Of course, the company markets to new businesses in line with production capacity available.

The directors are mindful of the need for continuity of supply in order to keep faith with end users and believe this policy will continue to bring steady growth to the company.

Alloy Steel International Inc is the sole licensed manufacturer of Arcoplate and is a world leader in supplying wear products and wear solutions to the mining and mineral processing industries. Not only does Arcoplate provide for much longer wear life to surfaces which come into contact with severe abrasive and impact wear, Arcoplate is also gaining a world-wide reputation as an anti-hangup solution. Hangup occurs where material adheres to surfaces of chutes, material storage hoppers, loader buckets, bulldozer blades and dump truck trays. The reduction of hangup by the use of Arcoplate increases efficiencies by maximizing product flow whilst reducing energy consumption on mobile equipment. Arcoplate can materially increase the bottom line of a mining or mineral processing company’s financial performance statement.

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