<PAGE>   1
 
                              RMI TITANIUM COMPANY
                      EMPLOYEE SAVINGS AND INVESTMENT PLAN
 
                                 ANNUAL REPORT
 
                 FOR THE YEARS ENDED DECEMBER 31, 1996 AND 1995
 
                                  EXHIBIT 99.1
<PAGE>   2
 
                       REPORT OF INDEPENDENT ACCOUNTANTS
 
To the Participants and Administrator
of RMI Titanium Company Employees
Savings and Investment Plan
 
In our opinion, the accompanying statements of net assets available for benefits
and the related statements of changes in net assets available for benefits
present fairly, in all material respects, the net assets available for benefits
of the RMI Titanium Company Employees Savings and Investment Plan (the Plan) at
December 31, 1996 and 1995, and the changes in net assets available for benefits
for the years then ended, in conformity with generally accepted accounting
principles. These financial statements are the responsibility of the Plan's
management; our responsibility is to express an opinion on these financial
statements based on our audits. We conducted our audits of these statements in
accordance with generally accepted auditing standards which require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for the opinion expressed
above.
 
Our audits were performed for the purpose of forming an opinion on the basic
financial statements taken as a whole. The additional information included in
Schedules I and II is presented for purposes of additional analysis and is not a
required part of the basic financial statements but is additional information
required by the Employee Retirement Income Security Act of 1974. The Fund
Information in the statement of changes in net assets available for benefits is
presented for purposes of additional analysis rather than to present the changes
in net assets available for benefits of each fund. Schedules I and II and the
Fund Information have been subjected to the auditing procedures applied in the
audits of the basic financial statements and, in our opinion, are fairly stated
in all material respects in relation to the basic financial statements taken as
a whole.
 
PRICE WATERHOUSE LLP
 
Pittsburgh, Pennsylvania
May 30, 1997
<PAGE>   3
 
                              RMI TITANIUM COMPANY
 
                      EMPLOYEE SAVINGS AND INVESTMENT PLAN
                 STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
 
                           DECEMBER 31, 1996 AND 1995
 
<TABLE>
<CAPTION>
                                                                         1996           1995
                                                                      ----------     ----------
<S>                                                                   <C>            <C>
Investments, at fair value:
  Fidelity Magellan Mutual Fund Account............................   $3,270,017     $3,211,118
  Fidelity Advisor Income and Growth Account.......................      115,611         85,780
  CIGNA Stock Market Index Account.................................      343,352         78,057
  CIGNA International Equity Account...............................      469,416        376,105
  RMI Titanium Company Common Stock Account........................      471,950        191,475
  Participant Loans Receivable.....................................      180,311        114,235
                                                                      ----------     ----------
                                                                       4,850,657      4,056,770
Investments, at contract value:
  Connecticut General Life Insurance Co. Guaranteed
     "Long-Term" Account...........................................    3,425,458      2,970,415
                                                                      ----------     ----------
  Net assets available for benefits................................   $8,276,115     $7,027,185
                                                                       =========      =========
</TABLE>
 
   The accompanying notes are an integral part of these Financial Statements.
 
                                        1
<PAGE>   4
 
                              RMI TITANIUM COMPANY
 
                      EMPLOYEE SAVINGS AND INVESTMENT PLAN
 
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS, WITH FUND INFORMATION
                      FOR THE YEAR ENDED DECEMBER 31, 1996
 
<TABLE>
<CAPTION>
                                                    FIDELITY     CIGNA
                      CIGNA           FIDELITY      ADVISOR      STOCK       CIGNA          RMI
                    GUARANTEED        MAGELLAN      INCOME &     MARKET      INT'L.     TITANIUM CO.    PARTICIPANT
                   "LONG-TERM"      MUTUAL FUND      GROWTH      INDEX       EQUITY     COMMON STOCK       LOANS
                     ACCOUNT          ACCOUNT       ACCOUNT     ACCOUNT     ACCOUNT       ACCOUNT       RECEIVABLE       TOTAL
                  --------------    ------------    --------    --------    --------    ------------    -----------    ----------
<S>               <C>               <C>             <C>         <C>         <C>         <C>             <C>            <C>
Employees'
contributions...    $  280,921       $  230,252     $49,164     $ 61,842    $ 61,977      $ 18,006       $      --     $  702,162
Investment
  income:
  Interest and
    dividend
    income.....        179,432          520,722          --           --          --            --          13,670        713,824
  Net
   appreciation
 (depreciation)
    in fair
    value of
 investments...             --         (172,095)      9,192       34,617      40,762       391,245              --        303,721
                  --------------    ------------    --------    --------    --------    ------------    -----------    ----------
                       179,432          348,627       9,192       34,617      40,762       391,245          13,670      1,017,545
  Transfers....        168,113         (399,178)    (14,403)     168,839      22,636       (48,067)         52,406        (49,654)
                  --------------    ------------    --------    --------    --------    ------------    -----------    ----------
    Total net
      additions
(deductions)...        628,466          179,701      43,953      265,298     125,375       361,184          66,076      1,670,053
                  --------------    ------------    --------    --------    --------    ------------    -----------    ----------
Participant's
  benefits
  paid.........       (173,423)        (120,802)    (14,122)          (3)    (32,064)      (80,709)             --       (421,123)
                  --------------    ------------    --------    --------    --------    ------------    -----------    ----------
    Total net
  deductions...       (173,423)        (120,802)    (14,122)          (3)    (32,064)      (80,709)             --       (421,123)
                  --------------    ------------    --------    --------    --------    ------------    -----------    ----------
Increase
  (decrease) in
  net assets...        455,043           58,899      29,831      265,295      93,311       280,475          66,076      1,248,930
Net assets
  available for
  benefits:
  Beginning of
    year.......      2,970,415        3,211,118      85,780       78,057     376,105       191,475         114,235      7,027,185
                  --------------    ------------    --------    --------    --------    ------------    -----------    ----------
  End of
    year.......     $3,425,458       $3,270,017     $115,611    $343,352    $469,416      $471,950       $ 180,311     $8,276,115
                  ============      ============    ========    ========    ========    ===========      =========      =========
</TABLE>
 
   The accompanying notes are an integral part of these Financial Statements.
 
                                        2
<PAGE>   5
 
                              RMI TITANIUM COMPANY
 
                      EMPLOYEE SAVINGS AND INVESTMENT PLAN
 
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS, WITH FUND INFORMATION
                      FOR THE YEAR ENDED DECEMBER 31, 1995
 
<TABLE>
<CAPTION>
                                                     FIDELITY     CIGNA
                       CIGNA           FIDELITY      ADVISOR      STOCK      CIGNA          RMI
                     GUARANTEED        MAGELLAN      INCOME &    MARKET      INT'L.     TITANIUM CO.    PARTICIPANT
                    "LONG- TERM"     MUTUAL FUND      GROWTH      INDEX      EQUITY     COMMON STOCK       LOANS
                      ACCOUNT          ACCOUNT       ACCOUNT     ACCOUNT    ACCOUNT       ACCOUNT       RECEIVABLE       TOTAL
                   --------------    ------------    --------    -------    --------    ------------    -----------    ----------
<S>                <C>               <C>             <C>         <C>        <C>         <C>             <C>            <C>
Employees'
contributions...     $  253,825       $  219,744     $13,976     $9,159     $ 42,446      $  9,360       $      --     $  548,510
Investment
  Income:
  Interest and
    dividend
    income......        170,854          185,554          --         --           --            --          12,173        368,581
  Net
    appreciation
    in fair
    value of
  investments...             --          625,671      11,491     17,026       34,663        50,474              --        739,325
                   --------------    ------------    --------    -------    --------    ------------    -----------    ----------
                        170,854          811,225      11,491     17,026       34,663        50,474          12,173      1,107,906
  Transfers.....         11,501            2,957      (7,569)    16,831      (17,454)       39,375          (1,645)        43,996
                   --------------    ------------    --------    -------    --------    ------------    -----------    ----------
    Total net
    additions...        436,180        1,033,926      17,898     43,016       59,655        99,209          10,528      1,700,412
                   --------------    ------------    --------    -------    --------    ------------    -----------    ----------
Participant's
  benefits
  paid..........       (196,918)         (83,928)         --     (7,039)          --          (115)         (8,385)      (296,385)
                   --------------    ------------    --------    -------    --------    ------------    -----------    ----------
    Total net
   deductions...       (196,918)         (83,928)         --     (7,039)          --          (115)             --       (296,385)
                   --------------    ------------    --------    -------    --------    ------------    -----------    ----------
Increase in net
  assets........        239,262          949,998      17,898     35,977       59,655        99,094           2,143      1,404,027
Net assets
  available for
  benefits:
  Beginning of
    year........      2,731,153        2,261,120      67,882     42,080      316,450        92,381         112,092      5,623,158
                   --------------    ------------    --------    -------    --------    ------------    -----------    ----------
  End of year...     $2,970,415       $3,211,118     $85,780     $78,057    $376,105      $191,475       $ 114,235     $7,027,185
                    ===========      =============   =========   =======    ========    ============     =========      =========
</TABLE>
 
   The accompanying notes are an integral part of these Financial Statements.
 
                                        3
<PAGE>   6
 
                              RMI TITANIUM COMPANY
                      EMPLOYEE SAVINGS AND INVESTMENT PLAN
                         NOTES TO FINANCIAL STATEMENTS
                           DECEMBER 31, 1996 AND 1995
 
NOTE 1--SUMMARY OF ACCOUNTING POLICIES:
 
ACCOUNTING METHOD
 
     The financial statements of the RMI Titanium Company Savings and Investment
Plan (the Plan) use the accrual method of accounting.
 
USE OF ESTIMATES
 
     Generally accepted accounting principles require management to make certain
estimates and assumptions relating primarily to the fair market value of certain
Plan assets. For additional information on the fair market value of Plan assets
see "Investments" below.
 
INVESTMENTS
 
     Available investment options are as follows:
 
         Fidelity Magellan Mutual Fund Account (a mutual fund)
         RMI Titanium Company Common Stock
         Connecticut General Life Insurance Company Guaranteed "Long-Term"
         Account (guaranteed investment contract)
         Funds managed by CIGNA or Connecticut General Life Insurance Company, a
         wholly-owned subsidiary of CIGNA:
              Stock Market Index Account
              Fidelity Advisor Income and Growth Account
              International Equity Account
 
     Investments in the Fidelity Magellan Mutual Fund and RMI Titanium Company
Common Stock are valued at fair market value based on published quotations. The
guaranteed investment contract is valued at contract value, which approximates
fair market value, and includes approximately $50,000 of assets as of December
31, 1996, which will be allocated in accordance with participants chosen
investment elections in effect at the time the funds were withheld. All CIGNA
managed funds are valued by CIGNA based on the published quotations of the
underlying investments within each of the funds and reflect current market
value. Security transactions are recorded as of the settlement date.
 
FUNDING
 
     The Plan is funded by contributions from the participating employees of RMI
Titanium Company (the Company). The costs of administering the Plan and the
trust are borne by the Company.
 
PAYMENT OF BENEFITS
 
     Benefits are recorded when paid.
 
NOTE 2--DESCRIPTION OF PLAN:
 
GENERAL
 
     The Plan Sponsor is RMI Titanium Company (the Company). The Company is a
successor to entities that have been operating in the titanium industry since
1958. The Company's operations are conducted primarily in one business segment,
the production and marketing of titanium metal and related products.
 
                                        4
<PAGE>   7
 
     The following description of the Plan provides only general information.
Participants should refer to the Plan agreement for a more complete description
of the Plan's provisions.
 
     The Plan is a defined contribution plan covering full-time salaried,
nonrepresented employees who are at least 21 years of age and have one year of
service. Effective July 1, 1996, eligibility was amended to at least 21 years of
age and three months of service. It is subject to the provisions of the Employee
Retirement Income Security Act of 1974 (ERISA).
 
CONTRIBUTIONS
 
     Participants may contribute from 1% to 15% of salary through payroll
deduction. Pre-tax contributions are subject to annual limitations as prescribed
by law ($9,500 in 1996). Certain highly compensated participants, as defined by
the Internal Revenue Code, may contribute from 1% to 7% of salary through
payroll deduction. Contributions are directed by the participants into any one
or all of the investment options. Participants may change their elections of
investment funds by calling the recordkeeper directly or by completing a new
enrollment and change form and submitting it to the employee benefits department
at least 15 days in advance. Participants are 100% vested in their accounts at
all times.
 
PAYMENT OF BENEFITS
 
     Participants or their beneficiaries are entitled to the full current value
of their account in the Plan upon:
 
         Retirement;
         Termination of Employment with the Company;
         or Death
 
     Participants may also make written application to the administrator for
withdrawal of all or a portion of their account balance for certain limited
situations qualifying as financial hardships under Internal Revenue Service
guidelines in effect at the time of withdrawal.
 
PARTICIPANT LOANS RECEIVABLE
 
     Participants may borrow from their accounts a minimum of $1,000 up to a
maximum equal to 50% of the existing account balance. Loans are treated as a
transfer [from] the investment fund to the Participant Loans Receivable fund.
Loan repayment terms range from one month to five years and are secured by the
balance in the participant account. Loans bear interest at a rate commensurate
with the current market rate when made. Loans made in 1996 bear interest at
8.75%. Interest rates on loans made prior to 1996 range from 8.75% to 15.00%.
Principal and interest are paid ratably through monthly payroll deductions.
Repayments are transfers to the investment funds [from] the Participant Loans
Receivable fund.
 
TRANSFERS
 
     Transfers represents net inter-plan and inter-fund transfers.
 
ADMINISTRATOR
 
     The Plan's administrator is the Company's Retirement Board. The Board
establishes rules of procedures and interprets the provisions of the Plan.
 
TERMINATION PROVISION
 
     The Company anticipates the Plan will continue without interruption, but
reserves the right to discontinue the Plan at any time. In the event that such
discontinuance results in the termination of the Plan, the Plan provides that
each participant shall be fully vested with the amount in his/her individual
account which includes earnings on the participant's contributions. The
individual accounts of the participants shall continue to be administered by the
administrator, or be distributed in a lump sum to the participants, as deemed
appropriate by the administrator.
 
                                        5
<PAGE>   8
 
NOTE 3--INCOME TAXES:
 
     The Internal Revenue Service (IRS) has determined and informed the Company
by a letter dated April 30, 1996, that the Plan and related trust are designed
in accordance with applicable sections of the Internal Revenue Code (IRC). The
Plan administrator believes that the Plan is currently being operated in
compliance with the applicable requirements of the IRC. Therefore, no provision
for income taxes has been included in the Plan financial statements.
 
NOTE 4--RECORDKEEPING
 
     Individual participant account balances, allocation and investment options
are maintained by CIGNA based on enrollment and payroll information supplied by
the Company.
 
NOTE 5--SUBSEQUENT EVENT
 
     Effective February 1, 1997, the Company changed the Plan Recordkeeper from
CIGNA to Fidelity Investments. Concurrently, new investment options in Fidelity
managed funds were made available to plan participants. Existing balances in
CIGNA managed funds were transferred to the Fidelity Fund most closely matching
the stated investment strategy. The RMI Titanium Company Common Stock investment
option was retained.
 
                                        6
<PAGE>   9
 
                                   SCHEDULE I
 
                                   FORM 5500
 
           ITEM 27A--SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
 
                              RMI TITANIUM COMPANY
 
                       EMPLOYEE SAVINGS & INVESTMENT PLAN
 
<TABLE>
<CAPTION>
                                                                                               (e)
                   (b)                                 (c)                       (d)         CURRENT
(a)              IDENTITY                   DESCRIPTION OF INVESTMENT            COST         VALUE
----   ----------------------------   -------------------------------------   ----------    ----------
<S>    <C>                            <C>                                     <C>           <C>
--     Fidelity Investments........   Fidelity Magellan Mutual Fund Acc't     $2,968,119    $3,270,017
*      Connecticut General Life
       Insurance Company...........   Guaranteed "Long-term" Account           3,425,458     3,425,458
*      Connecticut General Life
       Insurance Company...........   Stock Market Index Account                 300,700       343,352
*      Connecticut General Life
       Insurance Company...........   Fidelity Advisor Income 
                                      and Growth Account                         103,071       115,611
*      Connecticut General Life
       Insurance Company...........   International Equity Account               402,983       469,416
*      RMI Titanium Company........   RMI Titanium Company
                                      Common Stock Account                       225,707       471,950
--     Participant Loans...........   Interest Rates High 15.00%, Low 8.75%          N/A       180,311
                                                                                            ----------
                                                                                  TOTAL:    $8,276,115
                                                                                            ==========
</TABLE>
 
                         * DESIGNATED PARTY-IN-INTEREST
 
                                        7
<PAGE>   10
 
                                  SCHEDULE II
                                   FORM 5500
 
                 ITEM 27D--SCHEDULE OF REPORTABLE TRANSACTIONS
 
                              RMI TITANIUM COMPANY
                       EMPLOYEE SAVINGS & INVESTMENT PLAN
 
A. PURCHASES:
 
<TABLE>
<CAPTION>
    IDENTITY OF          DESCRIPTION      NUMBER OF      PURCHASED     SELLING      COST OF       CURRENT      NET GAIN
   PARTY INVOLVED         OF ASSETS      TRANSACTIONS      PRICE        PRICE        ASSET         VALUE       OR (LOSS)
--------------------   ---------------   ------------    ----------    --------    ----------    ----------    ---------
<S>                    <C>               <C>             <C>           <C>         <C>           <C>           <C>
Fidelity Investments   Fidelity               34         $1,066,639      N/A       $1,066,639    $1,066,639      N/A
                       Magellan
Connecticut General    Stock Market
  Life Insurance Co.   Index                  33            291,664      N/A          291,664       291,664      N/A
Connecticut General    Guaranteed
  Life Insurance Co.   "Long-Term"            44            733,381      N/A          733,381       733,381      N/A
RMI Titanium Company   Common Stock           39            263,239      N/A          263,239       263,239      N/A
B. SALES:
Fidelity Investments   Fidelity               48            N/A        $684,590       644,436       684,590     $40,154
                       Magellan
Connecticut General    Guaranteed
  Life Insurance Co.   "Long-Term"            56            N/A         463,905       463,905       463,905      N/A
Connecticut General    Stock Market
  Life Insurance Co.   Index                   7            N/A          60,957        53,873        60,957       7,084
RMI Titanium Company   Common Stock           22            N/A         374,720       133,106       374,720     241,614
</TABLE>
 
                                        8