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Quanex Corporation Announces Filing of Registration Statement Relating to Its Convertible Debentures

HOUSTON, Jul 7, 2004 /PRNewswire-FirstCall via COMTEX/ -- Quanex Corporation (NYSE: NX) announced today that it has filed a registration statement on Form S-3 with the Securities and Exchange Commission (SEC) to register for resale its 2.50% Convertible Senior Debentures due 2034, and any shares of Quanex common stock issuable upon conversion of the debentures.

Quanex previously announced on May 11, 2004, an aggregate principal amount of $125 million of debentures was issued and sold in a private placement and in Rule 144A transactions in May 2004. Upon effectiveness, the selling securityholders listed in the prospectus contained in the registration statement may use the prospectus relating to the registration statement from time to time to resell their debentures and any shares of Quanex common stock issuable upon conversion of the debentures. Quanex will not receive any proceeds from the sale of the debentures or any shares of Quanex common stock issuable upon conversion of the debentures.

While the registration statement relating to these debentures and shares of Quanex common stock issuable upon conversion of the debentures has been filed with the SEC, the registration statement has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective except in reliance on an applicable exemption from the registration requirements of the Securities Act. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state.

Quanex is an industry leading manufacturer of value-added 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's website at http://www.quanex.com .

Contact: Jeff Galow, 713-877-5327

SOURCE Quanex Corporation

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