Spartanburg, South Carolina, July 27, 2005...Synalloy Corporation (Nasdaq:SYNL), a producer of specialty chemicals, pigments, stainless steel pipe, vessels and process equipment, announces a 60% increase in second quarter net income from continuing operations to $1,043,000, or $.17 per share, on a 25% sales increase to $30,829,000. This compares to net income from continuing operations of $653,000, or $.11 per share, for the same quarter last year on sales of $24,746,000. For the first six months of 2005, net income from continuing operations was up 84% to $2,541,000, or $.41 per share, compared to net income from continuing operations of $1,380,000, or $.23 per share, for the same period of 2004, on a 23% increase in sales to $63,563,000. The Company recorded net losses from discontinued operations of $11,000, or $.00 per share, and $51,000, or $.01 per share, for the second quarter and first six months of 2005, respectively, compared to net losses of $212,000, or $.04 per share, and $274,000, or $.05 per share for the same periods last year. As a result, the Company had net income of $1,032,000, or $.17 per share, and $2,490,000, or $.40 per share, for the second quarter and first six months of 2005, respectively, compared to net income of $441,000, or $.07 per share, and $1,106,000, or $.18 per share, for the same periods last year.

Sales in the Specialty Chemicals Segment were up 13% for the second quarter and 18% for the first six months of 2005, respectively, from the prior year. However, operating income declined 34% for the second quarter and 4% for the first six months, respectively, from the prior year. Although the Cleveland, Tennessee location continued to experience good increases in sales and profits, the Spartanburg, S.C. location performed poorly for the quarter in both sales and profits causing the operating income decline experienced in the quarter compared to the same quarter last year. Spartanburg's decline in sales came from a decline in contract manufacturing in the second quarter as contract customers' product requirements were either reduced or pushed out into subsequent quarters. The reduction in sales created the poor operating results coming primarily from negative manufacturing variances. As discussed in previous quarters, the Segment has introduced a new line of fire retardant chemicals and began receiving orders for the products at the end of the first quarter of 2005. Sales order activity has increased steadily throughout the second quarter to a variety of customers. Applications for this new line of chemicals include mattresses, furniture and home appliances, which are subject to proposed Federal fire retardant regulations that we believe will become effective in early 2006. Regulations already exist in California requiring mattress manufacturers to utilize fire retardant products that conform to the new regulations in their production process which began January 1, 2005. Qualifications of our products continue to have good success in each of the applications. In addition, our products offer a safer alternative to the use of certain compounds used in products currently servicing these industries. As we begin the third quarter, activity among the major mattress manufacturers related to this issue has picked up significantly caused by the expected 2006 regulation deadline. Based on the positive test results our products continue to achieve, management continues to expect the demand for fire retardant products to ramp up in the second half of 2005 and grow into significant volumes by the end of 2005. Management anticipates that sales activity from contract manufacturing at the Spartanburg location will improve during the third and fourth quarter to levels more consistent with the first quarter of 2005. This Segment's business tends to be impacted by general economic conditions, and assuming the increase in contract manufacturing and no significant downturn in the general economy, management expects this Segment to continue to operate profitably going forward.

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The company's balance sheet showed notable improvement during the first half of 2005. Total debt of $10,142,000 at the end of the second quarter was 52% below the level at the end of last year and equaled only 28% of equity compared to 62% six months earlier. Management is pleased to have accomplished one of its principal goals of substantially reducing both debt and inventory.

At the end of 2004, the Company sold certain of the assets associated with the Blackman Uhler, LLC dye business effective January 31, 2005. The sale has been completed and relevant operations were transferred to the purchaser by the end of the first quarter of 2005. The operations of the Colors Segment are being reported as discontinued operations and the loss reported for the second quarter and six months of 2005 came primarily from payments of severance to terminated employees and professional fees.

For more information about Synalloy Corporation, please visit our web site at www.synalloy.com.

This Form 10-Q includes and incorporates by reference "forward-looking statements" within the meaning of the securities laws. All statements that are not historical facts are "forward-looking statements." The words "estimate," "project," "intend," "expect," "believe," "anticipate," "plan" and similar expressions identify forward-looking statements. The forward-looking statements are subject to certain risks and uncertainties, including without limitation those identified below, which could cause actual results to differ materially from historical results or those anticipated. Readers are cautioned not to place undue reliance on these forward-looking statements. The following factors could cause actual results to differ materially from historical results or those anticipated: adverse economic conditions, the impact of competitive products and pricing, product demand and acceptance risks, raw material and other increased costs, customer delays or difficulties in the production of products, unavailability of debt financing on acceptable terms and exposure to increased market interest rate risk, inability to comply with covenants and ratios required by our debt financing arrangements and other risks detailed from time-to-time in Synalloy's Securities and Exchange Commission filings. Synalloy Corporation assumes no obligation to update the information included in this Form 10-Q.

Contact: Greg Bowie at (864) 596-1535

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