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NEWS RELEASE
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CONTACT: Hugh Aiken
Kevin McDermed
913-367-2121
NYSE: FDY
ATCHISON CASTING REPORTS
ACCOUNTING ERRORS AT PENNSYLVANIA FOUNDRY GROUP
Atchison, Kansas - November 2, 2000 - "Following the appointment in
September of a new chief financial officer at Pennsylvania Foundry Group, a unit
of Atchison Casting Corporation, it has been determined that some asset accounts
on the books of the Pennsylvania unit are overstated, and some liabilities are
understated," said Hugh Aiken, CEO. "We believe that the problem is limited to
the Pennsylvania Foundry Group. The audit committee of the Board of Directors is
conducting a formal investigation of the amounts and timing of the errors. The
investigators are also attempting to determine whether theft was involved, and
whether the overstatements were deliberate or accidental," Aiken added.
"Upon completion of the investigation, we will report the results to
shareholders. It may be necessary to restate earnings for prior years," Aiken
added. "As a result, the Company does not expect to release financial statements
for the fiscal quarter ended September 30, 2000 until the amounts and periods
have been quantified and any necessary restatements have been made."
Atchison Casting Corporation produces iron, steel and non-ferrous castings
for a wide variety of equipment, capital goods and consumer markets.
This press release contains forward-looking statements that involve risks
and uncertainties. The amounts and timing of the accounting errors referred to
above are not yet known, nor is the amount, if any, that may be recoverable from
insurance or other parties.
