Press Release

Source: Quanex Corporation

MACSTEEL(R) and Sanyo Special Steel Sign

Technical Agreements

Tuesday October 7, 11:55 pm ET

HOUSTON, Oct. 7 /PRNewswire-FirstCall/ -- Quanex Corporation (NYSE: NX - News), an

industry-leading manufacturer of engineered materials and components for the

Vehicular Products and Building Products markets, announced today that MACSTEEL,

its engineered steel bar division and Sanyo Special Steel Company, Ltd. have signed

agreements for the transfer of technology relating to automotive steel applications.

In August 2002, Quanex announced a collaborative agreement between MACSTEEL

and Sanyo to better support Japanese automotive and component manufacturers in

the North American vehicular products market. Sanyo is a world leader in the

production of specialty steel, particularly premium bearing steels for the automotive

industry.

These agreements will primarily cover non-leaded, free-cutting steels, a patented steel

developed by Sanyo as a substitute for leaded steels; a high strength steel developed

for lighter weight powertrain applications; and quality improvements for steel

cleanliness levels beyond the current domestic standards.

"These agreements for technology transfer and further collaboration will allow

MACSTEEL to target additional applications for the new American automotive

manufacturers," said Mark Marcucci, President - MACSTEEL. "This will further improve

our participation in this important segment of the automotive market as well as provide

new alternative products to our existing OEM customers."

Sanyo Special Steel Company, Ltd., headquartered in Himeji, Japan, is a manufacturer

of high quality bearing steels. Sanyo is renowned internationally for producing

top-rated, ultra clean bearing steels.

Quanex Corporation is an industry-leading manufacturer of engineered materials and

components for the Vehicular Products and Building Products markets. The Company

was founded in 1927 and its stock is listed on the New York Stock Exchange under the

symbol NX. For further information visit the Company website at www.quanex.com or the

MACSTEEL website at www.macsteel.com .

Contacts: Jeff Galow 713/877-5327

Valerie Calvert 713/877-5305

Source: Quanex Corporation