AGY Announces Acquisition in Asia Pacific Region

July 15th, 2009 by

AIKEN, SC, USA – (June 15, 2009) – AGY, a leading global producer of glass fiber
yarns and high-strength glass fiber reinforcements, announced that it has acquired a 70%
controlling interest in the Shanghai-based yarn manufacturing business of Grace THW Group.
The transaction closed on June 10, 2009 and the company has been renamed AGY Shanghai
Technology Co., Ltd. Grace THW remains a 30% shareholder in the venture and AGY has
the option and intent to buy the remaining shares from Grace THW at some point in the near
future. AGY Shanghai Technology Co., Ltd is a producer of E-glass yarns and is unaffiliated
with the fabric weaving business of Grace THW.

The acquisition expands AGY’s geographic yarn manufacturing footprint and enables
it to service its growing Asia Pacific customer base. The Asia Pacific region represents a large
market for AGY products and technology due to its diverse and widespread application base
and its continuing economic growth. “We see significant opportunities in the Asia Pacific
region for expanding our revenues and earnings over the long-term as a number of markets we
serve, such as electronics, aerospace and wind energy are expected to grow rapidly in the
region,” said Doug Mattscheck, AGY Chief Executive Officer. “We are taking advantage of
these growth opportunities through the purchase of AGY Shanghai Technology Co., Ltd.”

The AGY-managed facility is a world-class, state-of-the art operation with capacity to
produce in excess of 18,000 MT. “Our goal is to become the preeminent independent yarn
manufacturer in Asia by offering locally produced E-glass products based around AGY’s
recognized industry leading technology. Many of our fabric customers want a strategic
partnership with a high quality independent yarn supplier who can provide them with a strong
base of local support and manufacturing, and that’s exactly what we can provide them,” said
Mattscheck. “We are currently building our sales, marketing and customer service teams to
capitalize on the region’s significant growth opportunities.”