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

Gross Profit Margins30252015 Bus Cycle Decline(2) 1050RestructuringRecessionFY FY FY FY FY FY FY (1) FY FY FY FY FY FY1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010Gross Profit Margin1) As of August 31, 2004, the effective date of the Company's plan of reorganization under Chapter 11 of the U.S. Bankruptcy Code, theCompany adopted fresh start reporting for its financial statements. Because of the emergence from bankruptcy and adoption of freshstart reporting, the historical financial information for periods after August 31, 2004 is not comparable to periods before September1, 2004. This information was derived from and should be read in conjunction with the “Pro Forma Financial Information” and footnotesthereto included in Item 7 of the Company's Form 10-K for the fiscal year-ended September 30, 2005.2) Gross profit percent excluding “fresh start” inventory charges of $25.4 million.March 1, 2010 21