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CAMDEN, N.Y.--([ BUSINESS WIRE ])--International Wire Group Holdings, Inc. (athe Companya) (Pink Sheets: ITWG) today announced results for the third quarter and for the first nine months ended September 30, 2011. Results for the first nine months of 2011 were at record levels, with operating income and net income well above the first nine months of 2010.

aOur customer demand was solid in the third quarter of 2011 in total and across most major markets but the year-over-year gains were not as strong as in the first two quarters of 2011. Although copper prices remain higher than in the 2010 third quarter, the significant decline in copper prices in August and September 2011 had an unfavorable impact on our operating results. Our first nine months operating results were still at record levels,a said Rodney D. Kent, Chief Executive Officer of International Wire Group Holdings, Inc.

Third Quarter Results

Net sales for the quarter ended September 30, 2011 were $220.9 million, an increase of $46.0 million, or 26.3%, compared to $174.9 million for the same period in 2010. This increase was primarily due to a higher selling price of copper, increased sales volume, higher customer pricing/mix (including silver, nickel and tin prices) and a favorable foreign currency exchange effect, partially offset by a higher proportion of tolled copper (customer-owned copper, the value of which is excluded from net sales and cost of sales). Excluding the effects of higher copper prices and a higher proportion of tolled copper, net sales increased $30.1 million, or 15.8%, versus the same period in 2010. Increased volume of $17.6 million, $11.3 million of improved customer pricing/mix, and $1.2 million from a favorable currency exchange rate in Europe contributed to this increase. Total pounds of product sold in the third quarter of 2011 increased by 13.2% compared to the third quarter of 2010.

Operating income for the three months ended September 30, 2011 was $11.3 million, compared to $12.5 million for the three months ended September 30, 2010, a decrease of $1.2 million, or 9.6%, as higher sales in all three business segments were offset by a LIFO cost of sales charge and other impacts due to rapidly declining copper prices and certain increased production costs.

Net income of $2.2 million, or $0.22 per basic and diluted share, for the three months ended September 30, 2011 decreased by $2.6 million, or $0.27 per basic and diluted share, from the prior year results of $4.8 million, or $0.49 per basic and diluted share. The decrease was due primarily to lower operating income, higher interest expense related to the Companyas June 2011 debt financing and a higher effective income tax rate in the 2011 period.

Nine Months Results

Net sales for the nine months ended September 30, 2011 were $679.3 million, an increase of $169.7 million, or 33.3%, compared to 2010 period sales of $509.6 million. This increase was primarily due to a higher selling price of copper, increased sales volume, higher customer pricing/mix (including silver, nickel and tin prices) and a favorable foreign currency exchange rate, partially offset by a higher proportion of tolled copper in the 2011 period. Excluding the effects of higher copper prices and a higher proportion of tolled copper, net sales increased $107.9 million, or 18.9%, versus the prior year period. This increase resulted from $73.7 million of increased volume, $31.3 million of higher customer pricing/mix and $2.9 million from the effects of a favorable foreign currency exchange rate. Total pounds of product sold in the first nine months of 2011 increased by 18.1% compared to the first nine months of 2010.

Operating income for the nine months ended September 30, 2011 was $42.5 million, a record level, compared to $34.8 million for the 2010 period, an increase of $7.7 million, or 22.1%, primarily from increased sales in all three business segments. Operating income also increased in all three business segments for the nine months ended September 30, 2011 compared to the nine months ended September 30, 2010.

Net income of $16.5 million, a record level, or $1.68 per basic share and $1.65 per diluted share in the 2011 period was greater than net income in the 2010 period of $14.2 million, or $1.44 per basic and diluted share, primarily from increased operating income and a lower loss on early extinguishment of debt, partially offset by higher interest expense from the Companyas April 2010 debt refinancing and June 2011 debt financing.

Net debt (total debt less cash) was $240.5 million as of September 30, 2011, a $116.9 million increase from December 31, 2010 primarily from the $100.0 million PIK Note offering in June 2011 (the proceeds of which were used to fund a special distribution to stock and option holders) and increased working capital requirements related to higher sales levels in the first nine months of 2011.

Non-GAAP Results and Net Debt

In an effort to better assist investors and noteholders in understanding the Companyas financial results, as part of this release, the Company is also providing Adjusted EBITDA, which is a measure not defined under accounting principles generally accepted in the United States (GAAP). Adjusted EBITDA is net income excluding interest expense, income taxes, depreciation and amortization expense, impairment charges, stock compensation expense, gain/loss on sale of property, plant and equipment and assets held for sale, amortization of deferred financing fees and loss on early extinguishment of debt. Management uses Adjusted EBITDA as a measure in evaluating the performance of our business. Other companies may define Adjusted EBITDA differently. As a result, our measures of Adjusted EBITDA may not be directly comparable to measures used by other companies. Below is a reconciliation of this non-GAAP financial measure to the most directly comparable financial measures calculated and presented in accordance with GAAP. Net debt as of September 30, 2011 and December 31, 2010 is also presented below. In $ millions:

Additional financial information will be made available on or about November 14, 2011 through the Companyas investor website ([ http://itwg.client.shareholder.com ] or [ http://www.internationalwiregroup.com ]) in the section titled aAdditional Financial Information.a

About International Wire Group Holdings, Inc.

International Wire Group Holdings, Inc., through its wholly-owned subsidiary International Wire Group, Inc., is a manufacturer and marketer of wire products, including bare, silver-plated, nickel-plated and tin-plated copper wire, for other wire suppliers, distributors and original equipment manufacturers. Its products include a broad spectrum of copper wire configurations and gauges with a variety of electrical and conductive characteristics and are utilized by a wide variety of customers primarily in the aerospace, appliance, automotive, electronics/data communications, industrial/energy and medical device industries. The Company currently manufactures and distributes its products at 20 facilities located in the United States, Belgium, France, Italy and Poland, including the recently acquired production facility in Santa Teresa, New Mexico.

Forward-Looking Information is Subject to Risk and Uncertainty

Certain statements in this release may constitute aforward-lookinga statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that are not historical facts and can be identified by the use of forward-looking terminology such as the words abelieves,a aexpects,a amay,a awill,a ashould,a aseeks,a apro forma,a aanticipates,a aintends,a aplans,a aestimates,a or the negative of any thereof or other variations thereof or comparable terminology, or by discussions of strategy or intentions. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions as to future events that may not prove to be accurate. Actual outcomes and results may differ materially from what is expressed or forecasted in these forward-looking statements. As a result, these statements speak only as of the date they were made and we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Many important factors could cause our results to differ materially from those expressed in forward-looking statements. These factors include, but are not limited to, fluctuations in our operating results and customer orders, unexpected decreases in demand or increases in inventory levels, changes in the price of copper, tin, nickel and silver, the failure of our acquisitions and expansion plans to perform as expected, the competitive environment, our reliance on our significant customers, lack of long-term contracts, substantial dependence on business outside of the U.S. and risks associated with our international operations, limitations due to our indebtedness, loss of key employees or the deterioration in our relationship with employees, litigation, claims, liability from environmental laws and regulations and other factors.

For additional information regarding the factors that may cause our actual results to differ from those expected by our forward-looking statements, see aRisk Factorsa in International Wire Groupas 2010 year-end financial report. This report is accessible on the aAdditional Financial Informationa page on the Investor Relations portion of the Companyas website under the tab aFourth Quarter 2010,a available at [ http://itwg.client.shareholder.com ] or [ http://www.internationalwiregroup.com ].

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