Business Update, March 1, 2010 - Haynes International, Inc.

Capital improvements yield substantial benefitsCapital Expenditure ProjectsFiscal Years 2005 through 2009 - $75.8MMProcess Projects $MMMeltingAir MeltESR upgrade$0.97.1Investment has yielded, and willcontinue to yield, substantial benefits◦ Current finished capacity in excess of23.5mm lbs– Sheet finishing capacity increasedfrom 9.0 mm lbs to 14.0mm lbs (1)Hot Rolling Sheet Fin. Op. (1)4-Hi MKW 100 CR4.880 8.0– Titanium tubular capacity increasedby 42% (2)Anneal lines10.7 ◦ Increased efficiency/improved workingcapital managementTubular (2) Pilger mill 8.0Distribution (3) 50 5.0Wire Processing 2.7Routine 28.6Ttl Total $75.8Fiscal Years 2010 through 2014 - $85.0MMHot Rolling 4-Hi $30.0Process Center Distribution 10.00New Equipment &Upgrades25.0Routine 20.0Total $85.0◦ Reduced operating costs◦ Reduced maintenance costs◦ Improved quality◦ Reduction in unplanned outages◦ Distribution improvements (3)– Service center expansions– Acquisition of Chinese marketingcompany– Value added processingMarch 1, 2010 25