NEWS RELEASE
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                                               CONTACT: Tom Armstrong
                                                        Kevin McDermed
                                                        913 367 2121


                          ATCHISON CASTING CORPORATION
                           ANNOUNCES AGREEMENT TO SELL
                            ITS CORE OPERATING ASSETS

         Atchison, Kan (November 19, 2003) - Atchison Casting Corporation
(OTCBB: AHNCQ.PK) today announced that it had entered into a definitive
agreement to sell its remaining operating assets out of bankruptcy to KPS
Special Situations Fund II, L.P. Under the terms of the agreement, KPS will form
a new company to purchase five business units of Atchison for a total
consideration of $40 million. The proposed transaction remains subject to a
number of conditions including the completion of new labor agreements with
Atchison's two trade unions (the United Steelworkers of America and Glass,
Molders, Pottery, Plastics and Allied Workers International unions), the
completion of environmental review and other customary legal and business
conditions. In addition, the terms of the agreement will be subject to more
favorable offers for the Atchison assets at a standard bankruptcy auction. KPS
and Atchison expect to complete the transaction in December 2003.

         After the sale of substantially all of the assets of the Inverness
Castings Group on October 31, 2003, the remaining five business units that
continue to operate and are being sold to KPS are: Atchison Steel Castings based
in Atchison, Kansas and St. Joseph, Missouri; Amite Foundry based outside of New
Orleans, Louisiana; Prospect Foundry based in Minneapolis, Minnesota; London
Precision Machine based in London, Ontario; and ACC Global based in Houston,
Texas. Atchison Steel Castings is a leader in carbon and low alloy, large,
complex steel castings. Amite Foundry's capabilities in the production of large
steel castings compliments Atchison Steel Castings. Prospect Foundry is a leader
in gray and ductile iron castings. London Precision machines steel castings,
typically to tolerances within 0.10 thousandths of an inch. ACC Global
identifies specific customer needs and then finds low cost, but high quality
suppliers, primarily in China and Mexico.

         "We are very pleased to have attracted the support of KPS as a likely
investor group to bring this company out of bankruptcy," said Tom Armstrong,
Chief Executive Officer of ACC. "Their experience with the bankruptcy process
and expertise in implementing successful turnarounds as well as their capital
will be invaluable to the future of the Atchison Companies. This should preserve
jobs for our employees while providing stability for our customers and
suppliers."

         "We are confident that a KPS acquisition of Atchison will strengthen
the business through continued cost reduction, strategic investment of capital
equipment and a significantly improved financial structure," said Stephen
Presser, a Principal at KPS. "We look forward to working with

                          ATCHISON CASTING CORPORATION
      400 SOUTH FOURTH STREET o P.O. BOX 188 o ATCHISON, KANSAS 66002-0188
                     o (913) 367-2121 o FAX (913) 367-2155

Atchison's management team, employees, and unions to enhance the company's
premiere position in the foundry industry. Tom Armstrong is expected to remain
with the new company."

         ACC produces iron, steel and non-ferrous castings for a wide variety of
equipment, capital goods and consumer markets.

         The KPS Special Situations Funds are a family of private equity funds
focused on constructive investing in restructurings, turnarounds and other
special situations. KPS has created new companies to purchase operating assets
out of bankruptcy; establish stand-alone entities to operate divested assets;
and recapitalized high leveraged public and private companies. KPS invests its
capital concurrently with a cost reduction program, capital investment and
financial restructuring of the company's liabilities either in or out of
bankruptcy.

         This press release contains forward-looking statements that involve
risks and uncertainties. Such statements include the company's expectations as
to future performance. Among the factors that could cause actual results to
differ materially from the forward-looking statements are the following:
business conditions and the state of the general economy, particularly the
capital goods industry, the satisfaction of the conditions to the agreement,
including the successful conclusion of union contract negotiations, the
possibility of other offers, the need for bankruptcy court approval, and the
many uncertainties involved in operating a business in reorganization under
Chapter 11.






                          ATCHISON CASTING CORPORATION
      400 SOUTH FOURTH STREET o P.O. BOX 188 o ATCHISON, KANSAS 66002-0188
                     o (913) 367-2121 o FAX (913) 367-2155