Alloy Steel Issues a Press Release

Recall that in our last correspondence with the CFO of Alloy Steel International ("Additional Answers from Alloy Steel's CFO"), one question we asked was whether the company would make better efforts at shareholder communications, including issuing periodic press releases. Today, the company issued this press release, "Alloy Steel International Inc (AYSI) Earnings Update". Excerpts:

NEW YORK, NY--(MARKET WIRE)--Aug 12, 2008 -- Alloy Steel International Inc (OTC BB:AYSI.OB - News) -- 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 coming 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.