Synalloy Enters Agreement to Sell Its Dye Business

27-Oct-2004

Synalloy Corporation, a producer of specialty chemicals, dyes and pigments, stainless steel pipe, vessels and process equipment, announces that it has signed a letter of intent with an investment group to sell its Blackman Uhler, LLC dye business. The sale is contingent on several factors, including the buyer meeting certain financial conditions and the entering into of definitive agreements. The Company expects the sale to be completed by November 24, 2004. Upon completion of the sale, Synalloy's pigment business, located in Greensboro, North Carolina and currently a part of the Colors Segment, will become a part of the Specialty Chemicals Segment's operations in Spartanburg and Cleveland, Tennessee. This sale will allow the Company to reduce debt and focus resources on other segments of the business.

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