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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549





FORM 10-K/A







|x | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|- | ------------------------------------------------------------------------------------

For The Fiscal Year Ended December 31, 2006

or



| ̈ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|- | ----------------------------------------------------------------------------------------

Commission file number: 333-117622





WISE METALS GROUP LLC

(Exact name of Registrant as specified in its charter)







|                                                               |  |                                     
|-------------------------------------------------------------- |  | ------------------------------------
|Delaware                                                       |  | 52-2160047                          
|(State or other jurisdiction of incorporation or organization) |  | (I.R.S. Employer Identification No.)

857 Elkridge Road, Suite 600

Linthicum, Maryland 21090

(Address of principal executive offices and zip
code)

(410) 636-6500

(Registrants telephone number, including area code)





Indicate by check mark if the
registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.    Yes   ̈    No  x

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the
Act.    Yes  x    No   ̈

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter
period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes   ̈    No  x

Indicate by check mark if
disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrants knowledge, in definitive proxy or information statements incorporated by reference in
Part III of this Form 10-K or any amendment to this Form 10-K.   ̈

Indicate by check mark
whether the Registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of accelerated filer and large accelerated filer in Rule 12b-2 of the Exchange Act.

Large accelerated filer   ̈    Accelerated filer   ̈    Non-accelerated filer  x

Indicate by check mark whether the
registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes   ̈    No  x





Securities registered pursuant to Section 12(b) of the Act: None

Securities registered pursuant to Section 12(g) of the Act: None









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EXPLANATORY NOTE

We have restated our financial statements for the years ended December 31, 2006, 2005 and 2004 and related disclosures in this report to correct the following:



| |  |  | The Companys presentation of the LIFO reserve as of December 31, 2006 improperly stated the LIFO reserve at $69.5 million. The reserve should have been
properly stated at $73.1 million.
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | The Company incorrectly presented the pension asset, liability and component of other comprehensive income as a net liability of $0.5 million in 2006 and $4.2
million in 2005, as a component of other non-current liabilities. The Company is correcting the presentation of the pension asset, liability and component of accumulated other comprehensive income at their gross amounts in the consolidated balance
sheets as of December 31, 2006 and 2005 in accordance with SFAS 87, paragraphs 35 through 37.
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | The Company did not report Other Comprehensive Income in accordance with Statement of Financial Accounting Standards No. 130 (SFAS 130),
Reporting Comprehensive Income. The Company is restating the presentation of Members Equity (Deficit) in its consolidated balance sheets to comply with SFAS 130 and disclose both accumulated other comprehensive income and comprehensive
income for all periods presented. The correction has no impact on previously reported net income.
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | The Company has concluded that its shipping and handling costs which have been previously reported as reductions to revenue should properly be included as cost of
sales under Emerging Issues Task Force No. 00-10 (EITF 00-10). The Company is correcting the classification of these costs to cost of goods sold for all periods presented.
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

No attempt has been made in this Amendment No. 1 to modify or update other disclosures presented in the original report on Form 10-K except as required to reflect
the effects of the restatement. This Form 10-K/A generally does not reflect events occurring after the filing of the Form 10-K nor modify nor update those disclosures affected by subsequent events. Accordingly, this Form 10-K/A should be read in
conjunction with our filings made subsequent to the filing of the original Form 10-K. Consequently, all other information not affected by the restatement is unchanged and reflects the disclosures made at the time of the original filing of the Form
10-K on April 17, 2007. The following items have been amended as a result of the restatement:

Item 6, Selected Financial Data;



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Item 7, Managements Discussion and Analysis of Financial Condition and Results of Operations;

Item 8, Financial Statements and Supplementary Data;

Item 9A, Disclosure Controls and Procedures

Our Chief Executive Officer and Chief Financial Officer have also
reissued their certifications required by Sections 302 and 906 of the Sarbanes Oxley Act.



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TABLE OF CONTENTS



|           |  |                                                                                                              |  |     
|---------- |  | ------------------------------------------------------------------------------------------------------------ |  | ----
|           |  |                                                                                                              |  | Page
|           |  | PART I                                                                                                       |  |     
|           |  |                                                                                                             
|Item 1.    |  | Business                                                                                                     |  | 5   
|Item 1A.   |  | Risk Factors                                                                                                 |  | 14  
|Item 1B.   |  | Unresolved Staff Comments                                                                                    |  | 20  
|Item 2.    |  | Properties                                                                                                   |  | 20  
|Item 3.    |  | Legal Proceedings                                                                                            |  | 21  
|Item 4.    |  | Submission of Matters to a Vote of Security Holders                                                          |  | 22  
|           |  |                                                                                                             
|           |  | PART II                                                                                                      |  |     
|           |  |                                                                                                             
|Item 5.    |  | Market for Registrants Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities |  | 23  
|Item 6.    |  | Selected Financial Data                                                                                      |  | 23  
|Item 7.    |  | Managements Discussion and Analysis of Financial Condition and Results of Operation                         |  | 25  
|Item 7A.   |  | Qualitative and Quantitative Disclosures About Market Risk                                                   |  | 35  
|Item 8.    |  | Financial Statements and Supplementary Data                                                                  |  | 36  
|Item 9.    |  | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure                         |  | 58  
|Item 9A.   |  | Controls and Procedures                                                                                      |  | 58  
|Item 9B.   |  | Other Information                                                                                            |  | 59  
|           |  |                                                                                                             
|           |  | PART III                                                                                                     |  |     
|           |  |                                                                                                             
|Item 10.   |  | Directors, Executive Officers and Corporate Governance                                                       |  | 60  
|Item 11.   |  | Executive Compensation                                                                                       |  | 62  
|Item 12.   |  | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters               |  | 67  
|Item 13.   |  | Certain Relationships and Related Transactions, and Director Independence                                    |  | 68  
|Item 14.   |  | Principal Accounting Fees and Services                                                                       |  | 68  
|           |  |                                                                                                             
|           |  | PART IV                                                                                                      |  |     
|           |  |                                                                                                             
|Item 15.   |  | Exhibits, Financial Statement Schedules                                                                      |  | 69  
|Signatures |  | 75                                                                                                          



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FORWARD-LOOKING STATEMENTS

Our forward-looking statements are subject to a variety of factors that could cause actual results to differ significantly from current beliefs.

Some statements and information contained in this Form 10-K/A are not historical facts, but are forward-looking statements, as such term is
defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by the use of forward-looking words such as believes, expects, plans, may,
will, would, could, should, or anticipates or the negative of these words or other variations of these words or other comparable words, or by discussions of strategy that involve risks and
uncertainties. Forward-looking statements may differ from actual future results due to, but not limited to, those factors referenced under Risk Factors and/or any of the following factors:



| |  |  | sales to our major customers,
| | - |  | -----------------------------



| |  |  | competition from non-aluminum sources of packaging,
| | - |  | ---------------------------------------------------



| |  |  | our relationship with our employees and labor unions,
| | - |  | -----------------------------------------------------



| |  |  | general economic conditions, including those affecting our ability to obtain financing,
| | - |  | ---------------------------------------------------------------------------------------



| |  |  | conditions in the capital markets, or in industry conditions, including those affecting our customers and suppliers,
| | - |  | --------------------------------------------------------------------------------------------------------------------



| |  |  | technological developments,
| | - |  | ---------------------------



| |  |  | aluminum demand and prices, and the market for scrap aluminum,
| | - |  | --------------------------------------------------------------



| |  |  | changes in consumer tastes and preferences,
| | - |  | -------------------------------------------



| |  |  | cost and availability of raw materials and energy,
| | - |  | --------------------------------------------------



| |  |  | environmental regulations to which our operations are subject,
| | - |  | --------------------------------------------------------------



| |  |  | changes in our credit rating or in the rating of our indebtedness,
| | - |  | ------------------------------------------------------------------



| |  |  | changes in accounting policies or practices adopted voluntarily or as required by regulations or generally accepted accounting principles, and
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | our ability to attract and retain executives and other key personnel.
| | - |  | ---------------------------------------------------------------------

We have no obligation to update or revise these forward-looking statements.

Part I



|Item 1. | Business
|------- | --------

As used in this Form 10-K/A, all
references to Wise Metals, Wise Group, us, the Company and all similar references are to Wise Metals Group LLC, a Delaware limited liability company and its subsidiaries as a consolidated entity,
unless otherwise expressly stated or the context otherwise requires. As used herein, all references to Wise Alloys or Alloys refer to Wise Alloys LLC, a Delaware limited liability company that is our wholly-owned operating
company. All references to Wise Recycling or Recycling refer to Wise Recycling LLC, a Maryland limited liability company that is our wholly-owned subsidiary. All references to Listerhill Total Maintenance Center
or TMC refer to Listerhill Total Maintenance Center LLC, a Delaware limited liability company that is our wholly-owned subsidiary.



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Overview

Wise Metals Group, LLC, headquartered in Linthicum, MD, is a Delaware limited liability company. Information about our reportable operating segments is provided below. Financial information about our reportable operating segments is set
forth in our Consolidated Financial Statements and the Notes in Item 8 of this Report.

Wise Alloys

Wise Alloys is the third largest producer of aluminum beverage can stock in the world and contributed 87% of the total revenue of Wise Metals Group in
2006. Beverage can stock is aluminum sheet specifically designed and engineered for the production of aluminum beverage cans. In 2006, we supplied an estimated 14% of the North American market for aluminum beverage can stock as measured by volume,
and we own one of only five beverage can stock facilities in North America, which provides valuable capacity to a consolidated industry. Our can stock customers include, Ball Corporation, Crown Holdings, Inc. and Rexam PLC, the three largest
beverage can manufacturers in the world. Our beverage can stock customers produce aluminum cans for the largest brewers and carbonated soft drink bottlers in North America. In addition, we produce food can stock and semi-fabricated aluminum sheet
for building and construction, transportation and other markets. In 2006, we did not derive a material percentage of our revenues from customers outside the United States.

The aluminum beverage can industry is a consolidated and mature industry which has experienced consistent historical stability. Four principal
competitors, Ball, Crown, Rexam and Metal Container Corporation, the can-making subsidiary of Anheuser-Busch Companies, Inc., account for nearly all of the production volumes of aluminum beverage cans in North America. Over the past ten years, the
compounded annual growth rate for the United States beverage can market has been stable. In addition to our Listerhill facility in Muscle Shoals, Alabama, the only other facilities in the world that have the capability to produce aluminum beverage
can stock are operated by two companies, Alcoa, Inc. and Novelis, Inc. which was spun off by Alcan, Inc. in January 2005. The newest of these facilities was built in the mid-1980s and we are unaware of any plans to build additional facilities
in North America to serve the can stock industry. Factors that have led to the consolidation in the industry and our expectation of limited new entrants include substantial capital requirements, lengthy customer qualification procedures and Food and
Drug Administration regulations concerning beverage can coatings for bottlers. Most importantly, customers stringent requirements for thinner gauge can stock and higher quality can stock have surpassed the technical capabilities of most
rolling mill operators. Furthermore, there historically have been virtually no foreign shipments of aluminum beverage can stock to North America primarily due to product quality requirements.

As our primary manufacturing operation, Wise Alloys converts aluminum feedstock into beverage can stock, food container stock and semi-fabricated
aluminum sheet. Unlike Alcoa, we do not manufacture aluminum from bauxite. Instead, we process aluminum scrap and prime aluminum manufactured by third parties. Our production takes place at our Listerhill facility, which we purchased in 1999 as part
of Reynolds divestiture of its integrated can-making infrastructure. Ball purchased Reynolds can-making assets in 1998 and since that time has remained a major customer of our Listerhill facility. The Listerhill facility is a four
million square foot plant with 1.8 billion pounds of annual casting capability, 1.4 billion pounds of annual hot mill capacity and 1.1 billion pounds of annual finishing capacity. The facility has been well-maintained and modernized with more than
$670 million spent on capital improvements since a major modernization process was begun by Reynolds in 1986. We believe the facility is one of the most technologically advanced and lowest cost aluminum processing mills in North America.

Aluminum feedstock purchases comprised approximately 75% of our cost of sales in 2006 for our Alloys operations, with scrap comprising 69% of those
total aluminum purchases. Historically, scrap has



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been a lower cost input for the production of our products than prime aluminum because our scrap reclamation assets are integrated into our production
process and because scrap has generally been sold at a discount to prime aluminum. We have scrap purchase arrangements with our key customers through which we purchase scrap aluminum generated by their can production processes. These scrap purchase
arrangements provided us with approximately 26% of our scrap aluminum requirements in 2006. We also obtain scrap from our scrap collection subsidiary, Wise Recycling, which provided us with approximately 21% of our scrap aluminum requirements in
2006. Our remaining scrap aluminum requirements are met by independent suppliers and brokers. We believe that we are one of the largest purchasers of used beverage containers, or UBCs, in North America, and we believe that our purchasing power
provides us with the ability to negotiate favorable terms and conditions with our suppliers and enhance our operating margins.

Wise
Metals subsidiary, Listerhill Total Maintenance Center, or TMC, provides maintenance, repairs and fabrication to manufacturing and industrial plants worldwide ranging from small on-site repairs to complete turn-key maintenance as well as
providing machine shop services to Wise Alloys. TMC specializes in servicing and repairing electric turbines for the Tennessee Valley Authority (TVA) and others. TMC is actively expanding the business outside of the power generation into
mining equipment and other large-scale projects.

Market Overview and Competitive Environment

Wise Alloys competes principally in the rolled aluminum sheet product market. This market in North America is believed to consist of approximately 10
billion pounds of aluminum shipments annually in segments such as packaging, automotive, building and construction and original equipment manufacturing. The rolled aluminum market is somewhat fragmented, with numerous domestic competitors serving a
number of different markets according to industry data. We principally serve the packaging segment, which represents approximately 40% of rolled aluminum sheet products.

The aluminum beverage can stock market is highly concentrated and competitive. We estimate that the top manufacturers of aluminum beverage cans in North America in 2006 were Ball with a 35% market share (including 2%
attributable to Balls interest in a joint venture with Coors Brewing Company), Crown with a 21% market share, Metal Container with a 23% market share and Rexam with a 21% market share. These manufacturers are supplied with aluminum beverage
can stock (aluminum sheet for body stock, tab and ends) by four principal suppliers: Novelis (formerly Alcans aluminum rolled products business), Alcoa, ARCO and ourselves. We estimate that within this highly concentrated market, Alcoa and
Novelis each hold about a one-third market share and we hold a 14% market share. The remainder of the capacity is provided by ARCO, which shares with Novelis the ownership of a facility in Logan County, Kentucky. Alcan spun off its rolled aluminum
products business as a separate publicly traded company, Novelis, in January 2005.

The beverage can stock industry also faces competition
from non-aluminum sources of packaging such as glass and HDPE and PET packaging producers. The main factors influencing competition in our industry are quality and price. Competition is also affected by each customers requirement that
suppliers complete a qualification process to supply their plants.

The spin off of Novelis did not change the capacity of the overall can
sheet business. Unlike its predecessor, Novelis has no North American reduction capability and is viewed primarily as a conversion company for flat rolling sheet product similar to Wise, but with a much larger and diverse product line.

Aluminum beverage containers are sold primarily to makers and fillers of carbonated soft drinks, beer and other beverages. The principal aluminum
beverage container purchasers in the United States are Anheuser-Busch Companies Inc., The Coca-Cola Company and PepsiCo, Inc. Given the highly concentrated and integrated nature of the aluminum can supply chain (from can stock supplier to ultimate
purchaser), customer relationships tend to be long-term and highly interdependent in nature. For example, our customers require prospective can stock suppliers to undergo a rigorous qualification process at their individual manufacturing facilities
of up to twelve months before the prospective supplier is approved.



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The aluminum can stock market is driven by factors associated with the aluminum beverage can industry.
The United States aluminum beverage market is recognized as a mature market that has experienced slow but stable growth. Total U.S. producer can stock shipments grew an estimated 2.3% in 2006. Aluminum can stock demand is influenced by end-market
retail strategies and consumer sentiment while can stock pricing is influenced by aluminum commodity prices and industry capacity.

Products

Beverage Can Sheet Products

Wise Alloys processes prime aluminum, scrap and alloying agents into sheet products primarily for use in the manufacturing of aluminum beverage can containers. We produce different sheet products for each of the three components of an
aluminum beverage can: the body, the end and the tab, which represent 78.5%, 18.6%, and 2.9%, respectively, of an average beverage cans weight.

The beverage can stock industry market in which we participate has been driven by increasingly demanding product specifications in the last decade. In 1993, the average can stock gauges were 0.01140 for body
stock and 0.01080 for end stock. At these relatively heavy thicknesses, the requirements for the uniformity of flatness and thickness across the entire width of the coil were achievable by all seven producers then making can stock. Similarly,
at those gauges, inclusions, impurities and other imperfections in can stock were far less critical. However, as a result of the struggle for market share and an excess of capacity in the industry, can makers dramatically improved their product and
lowered their costs. Their suppliers, can stock makers, had to adapt to these changes in order to survive. By the end of 2000, there were only three can stock makers still existing in North America: Alcoa, Alcan and Wise Alloys. Participants left
the industry because they were unable to produce the thinner gauge stock can makers requested and also meet their more stringent quality requirements. Can stock gauges dropped significantly, to 0.01080 for body stock and 0.0086 for end
stock, a decline of 5.3% and 20.4%, respectively. It was especially arduous for can stock makers to meet new specifications profitably because the gauges were most significantly reduced in the end and not the body. They had trouble in achieving
extremely tight tolerances in a very hard alloy of aluminum and magnesium. Coincident with this change, can makers increased their quality requirements. For example, while in 1996 a rejection rate of 1 in 10,000 cans was acceptable, the level today
is 2 in 100,000, representing an 80% decrease in the acceptable rejection rate. Today, the three remaining can stock makers have reduced their costs and raised their quality levels to where they are now shipping 0.0080 gauge end stock. We
believe that the can stock we produce for everyday orders is equal to or superior in quality to that of our competitors, Alcoa and Novelis, and that the quality of our can stock for special orders is superior.

Other Aluminum Sheet Products

The
remainder of Alloys aluminum sheet products include rigid container stock for food container manufacturers and fin stock (light gauge alloy) for air conditioners, refrigeration sheets and commercial coolers. We produce small volumes of extra
wide aluminum sheeting for truck trailer roofing and for unique architectural projects and aluminum tread for use in tool boxes in truck beds and linings. In 2005, we also began more significant levels of production of aluminum sheet for the
building and construction products segment and that trend continued into 2006.

The following table sets forth our rolled aluminum product
distribution for the past three years:



|                                  |  |                        |     |  |      |     |  |      |    
|--------------------------------- |  | ---------------------- | --- |  | ---- | --- |  | ---- | ---
|                                  |  | Year endedDecember 31, |    
|                                  |  | 2006                   |     |  | 2005 |     |  | 2004 |    
|Body Stock                        |  | 61                     | %   |  | 66   | %   |  | 70   | %  
|End Stock                         |  | 15                     |     |  | 17   |     |  | 14   |    
|Tab Stock                         |  | 2                      |     |  | 2    |     |  | 3    |    
|                                  |  |                        |     |  |      |     |  |      |    
|Beverage Can Stock                |  | 78                     |     |  | 85   |     |  | 87   |    
|Food Container                    |  | 6                      |     |  | 6    |     |  | 6    |    
|Trailer Roofing                   |  | 3                      |     |  | 2    |     |  | 2    |    
|Other                             |  | 13                     |     |  | 7    |     |  | 5    |    
|                                  |  |                        |     |  |      |     |  |      |    
|Total                             |  | 100                    | %   |  | 100  | %   |  | 100  | %  
|                                  |  |                        |     |  |      |     |  |      |    
|Total pounds billed (in millions) |  | 636                    | (a) |  | 661  | (a) |  | 653  | (a)



|(a) | Total pounds billed do not include Wise Recycling shipments to third parties of 121.0 million pounds in 2006, 103.2 million pounds in 2005, and 83.4 million pounds in
2004.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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Customers

Ball

Ball is the largest beverage can manufacturer in the United States with a 35% market share (including 2% attributable
to Balls interest in a joint venture with Coors). In 2006, we supplied Ball with approximately 62% of our Listerhill facilitys total plant output. Our Listerhill facility has served selected Ball manufacturing facilities since 1965. We
were the largest supplier of aluminum beverage can stock to Ball in 2006. Shipments to Ball decreased approximately 4% from 2005 to 2006.

Our supply agreement with Ball provides that Ball will buy from us all of the aluminum beverage can stock requirements of the beverage can manufacturing facilities Ball purchased from Reynolds. Ball also has the option to have other can
stock producers supply aluminum body stock to its can manufacturing plants located in Hawaii and Puerto Rico.

The Ball supply agreement
provides for Ball to order minimum shipment amounts in each year of the contract. While Ball has the right to reduce these specified minimum shipment amounts, it generally can only do so contractually in proportion to reductions in the beverage can
stock requirements of all of its can manufacturing facilities in North America and not merely on the basis of reductions in the requirements of the Ball facilities we supply. In addition, Ball may also reduce these minimum shipment amounts in the
event our products fail to meet agreed quality levels.

Crown

In 2006, we supplied approximately 18% of our Listerhill facilitys total plant output to Crown. Shipments were approximately 11% lower than
shipments for 2005.

On August 11, 2006 the Company filed a lawsuit against Crown Cork and Seal (USA), Inc. in state court in Alabama
for breach of contract on our beverage can sheet contract and seeking a declaratory judgment on our food sheet contracts. The lawsuit alleges damages because of breaches by Crown of the beverage can sheet contract, and asks the court to interpret
certain pricing provisions of the food contract.

On September 8, 2006, Crown entered a counter claim asserting breaches to the
beverage can contract. The Company intends to vigorously contest this counterclaim and at this time is unable to determine the reasonable likely outcome of both the Companys and Crowns claims.

Other Customers

We finished the
qualification process with Rexam at five of its locations by the end of 2005. In 2006, we shipped approximately 5% of our can stock to Rexam down from approximately 10% of our can stock from 2005. Rexam is the third major independent can
manufacturer in the U.S. and our relationship with them represents an important step in our diversification strategy.



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We have a growing number of customers for common alloy products for the commercial distributor and
building and construction markets. For example, General Electric Company purchases fin stock from us and recently we have begun also selling lamp base products to them. We are increasing our marketing efforts in order to develop and diversify our
customer base in these high value-added products. In particular, we seek new customers who have not traditionally purchased from our Listerhill facility because of its former affiliation with Reynolds. We have built our own independent marketing
staff to serve this market and have built a depot stock to service this very strong market. We have a growing number of contracts for these new products with continued positive interest from market participants.

Wise Recycling currently sells non-ferrous scrap to third parties including Alsco Metals Corporation, formerly Owens Corning Metals Systems, Howell Metal
Company and Maxwell Metals Group.

Operations

Aluminum Sheet Operations

We believe that our Listerhill facility is one of the most technologically advanced and flexible manufacturing
facilities in the United States aluminum sheet industry. Our Listerhill facility has benefited from over $670 million of capital improvements and upgrades since a major modernization process was begun by Reynolds in 1986. The facilitys
features include state-of-the-art gauge control and closed-loop shape control systems, as well as state-of-the-art surface inspection systems. Our Listerhill facilitys hot-mill rolling speed is equal to industry standards, while the cold-mill
rolling speed is competitive with that of our leading competitors. One of our four coating lines can coat wide-width aluminum sheet at a high speed. These investments strengthened our facilitys competitive position by improving its product
quality, increasing its processing capacity and reducing its operating costs. Since 2000, we have incurred maintenance expenditures ranging from approximately $32 to $47 million annually, comprising between $14 million and $24 million in part
replacements and contractor costs and between $18 million and $23 million in employment costs. In addition, our annual capital expenditures, primarily for equipment and related upgrades, have averaged $12 million since 2002. In 2006, we spent $15
million in part replacements and contractor costs and $20 million in employment costs. Our facilitys features include a technologically advanced electromagnetic cast house, which is the only multiple station unit in the industry; a pusher
furnace; hot mills with 116-inch width capability; four cold mills; an annealing line; a coating line and inspection and gauge control systems; and surface inspection systems. Our rolling capabilities have allowed us to meet our customers
increasing demands for thinner gauge aluminum sheets and their increasingly stringent quality controls, unlike some of our former competitors. For instance, Listerhill is one of only two North American facilities capable of rolling the widths
necessary for trailer roofs. In addition, our electromagnetic casting facilities and cold mills also give us superior flexibility to produce customized runs of limited quantity products with shorter production lead times in a cost effective manner.
These shorter runs enable us not only to meet our can stock customers demands for special seasonal or promotional products or innovative new products with a limited initial market, such as energy drinks, but also efficiently produce common
alloy products, such as StarBright, an aluminum tread product used in truck beds and linings.

We are in the process of converting
and qualifying our end stock material from our three stand operation, where we have to make two passes to roll aluminum coil to proper gauge, to our five stand operation, where a coil only has to make one pass. This will increase our efficiencies in
producing end stock while maintaining improved surface quality. This process change will also result in improved capacity on our three-stand that will allow for increased volume. While we are currently qualified at all of our customer locations, any
time a major process change such as this is undertaken, each customer plant location that we serve must re-qualify our product to ensure proper specification. Trial shipments are sent to each customer location and if the plant location and their
respective customers all accept the product, then the process change is considered qualified and the change can then be implemented on all product sold to that customer location.



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Suppliers and Materials

The raw materials used by our aluminum sheet business are generally available from several sources. We utilize a mix of scrap aluminum and prime aluminum. Our supply of raw materials satisfies our current production
requirements. One of our key competitive advantages in the production of can stock is our use of scrap aluminum for a large portion of our aluminum requirements. Aluminum can body stock can be manufactured with UBCs comprising up to 95% of the metal
used. As we are capable of processing and recycling UBCs in an efficient manner and the use of scrap is nearly always less expensive than utilizing primary aluminum to produce the alloy required for producing can sheet, we believe that our high
utilization of scrap provides us with a cost advantage over our competitors. In 2006, we satisfied approximately 69% of our raw material requirements from scrap aluminum, of which approximately 54% was composed of UBCs, 26% was scrap purchased from
our customers and 21% was all other scrap including recycled sheet ingot and electric cable. In 2006, approximately 21% of our scrap aluminum requirements were supplied through our scrap collection segment, Wise Recycling. We expect that a
significant amount of our scrap aluminum requirements will continue to be sourced through scrap purchase arrangements with our can sheet customers, and purchases through Wise Recycling and third party suppliers. We expect to obtain the balance of
our scrap aluminum requirements from our established network of independent scrap dealers and brokers throughout the United States. We believe we are the largest purchaser of UBCs in North America, and as a result, we enjoy considerable leverage
with our vendor base. We obtain prime aluminum from brokers throughout the United States and directly from foreign and domestic producers.

We purchase our electrical requirements from the TVA. Effective in January 2005, we began purchasing our natural gas from Atmos Energy Marketing and successfully negotiated a reduction in the cost of delivery with another pipeline.

Intellectual Property

We have
acquired certain intellectual property rights under licenses from others for use in our business. In particular, we are a licensee under a technology license agreement with Alcoa that grants us a non-exclusive, perpetual, royalty-free, fully paid-up
license to use the technology employed at our Listerhill facility. The license covers the processes, methods, practices and techniques for systems used and products produced at Listerhill. It includes the rights to change and further develop the
technology and worldwide non-exclusive rights to offer for sale and sell products produced at the Listerhill facility.

In addition, the
Alcoa technology license agreement grants us the right throughout North America to make products using licensed technology at the Listerhill facility or using technology used at other facilities that were owned by Reynolds at the time of the
Listerhill facility acquisition or which were previously owned by Reynolds. Alcoa is responsible for obtaining and maintaining all patent rights relating to the licensed technology.

We do not have any patents, licenses or trademarks other than those that are the subject of the Alcoa technology license agreement that we believe to be
material to our business viewed as a whole.

Wise Recycling

Wise Recycling was formed in 1998 when Wise Metals purchased the Reynolds Aluminum Recycling division from Reynolds Metals. Wise Recycling is one of the largest aluminum scrap recyclers and one of the largest
direct-from-the-public collectors of UBCs in the United States. As well as acting as a low-cost supplier of used beverage container scrap for our aluminum processing operations, Recycling collects and sells copper, brass and other aluminum scrap,
which is sold to third parties. In 2006, this segment recycled over 2.7 billion UBCs and contributed 13% of the total revenue of Wise Metals Group.



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The following table shows distribution by metal type for the past three years:



|                                               |  |                        |   |  |       |   |  |       |  
|---------------------------------------------- |  | ---------------------- | - |  | ----- | - |  | ----- | -
|                                               |  | Year endedDecember 31, |  
|                                               |  | 2006                   |   |  | 2005  |   |  | 2004  |  
|Copper & Brass                                 |  | 24                     | % |  | 33    | % |  | 27    | %
|Aluminum                                       |  | 39                     |   |  | 38    |   |  | 39    |  
|Other                                          |  | 15                     |   |  | 5     |   |  | 4     |  
|                                               |  |                        |   |  |       |   |  |       |  
|Total Third Party Sales                        |  | 78                     |   |  | 76    |   |  | 70    |  
|Intercompany aluminum UBC sales to Wise Alloys |  | 22                     |   |  | 24    |   |  | 30    |  
|                                               |  |                        |   |  |       |   |  |       |  
|Total                                          |  | 100                    | % |  | 100   | % |  | 100   | %
|                                               |  |                        |   |  |       |   |  |       |  
|Total pounds billed (in millions)              |  | 207.3                  |   |  | 160.0 |   |  | 128.5 |  

Market Overview and Competitive Environment

Wise Recycling operates seven shipping and processing locations. These locations support a network of 38 neighborhood collection centers. This structure
allows Wise Recycling to service consumers as well as industrial and independent recycling accounts nationwide. From our recycling centers, aluminum and other nonferrous metal materials including copper and brass are sorted, graded, and packaged and
then sent to melting and fabricating facilities throughout the country.

Products

Recycling collects scrap for sale in the merchant market and provides us with an effective, profitable infrastructure to obtain a portion of Wise
Alloys scrap requirements. Wise Recycling also collects other forms of non-ferrous scrap, primarily non-UBC aluminum, copper and brass, for sale into the merchant market.

Customers

Wise Recycling currently sells non-ferrous scrap to third parties including Alsco Metals
Corporation, formerly Owens Corning Metals Systems, Howell Metal Company and Maxwell Metals Group. In 2006, Recycling sold 121 million pounds of scrap to third parties. There is no single customer who contributes 10% or more to Recyclings
revenue.

Operations, Suppliers and Materials

In 2006, this subsidiary recycled approximately 2.7 billion UBCs. Recycling has developed a collection process that utilizes both direct acquisitions from scrap dealers and industrial accounts, as well as from the actual consumer, i.e.
off-the-street. The collection process is centered through its seven shipping/regional centers which act as hubs for a total of 38 service and convenience centers. The regional shipping centers process and upgrade the various metals collected at
their respective area service and convenience centers. We are currently expanding the business of Recycling to include warehousing operations in order to provide regional shipping centers for our scrap collection and to enhance our ability to
provide a vendor managed inventory program required by Alloys customers. These warehousing facilities, the first of which opened in Los Angeles in May 2004, store can sheet to be delivered to the customer and also operate as centralized
shipping points for scrap. This dual role optimizes labor costs and allows us to manage freight costs by coordinating outbound aluminum coil shipments from the Listerhill facility and inbound scrap from the warehouse sites by captive rail car.
Recycling is exploring the opening of other warehousing facilities in several other states.

Wise Metals Group

The following discusses matters relating to our business in general.



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Research and Development

We engage in research and development programs that include aluminum sheet production process and product development and basic and applied research. We believe that these programs can lead to more cost-effective
manufacturing systems that contribute to improvements in quality and operating efficiencies as well as new products. We conduct our research and development activities at our Listerhill facility. Expenditures for our research and development
activities were $0.3 million in 2006. We fund substantially all our research and development expenses through operations.

Employees

As of December 31, 2006, we had 895 employees at our Listerhill facility. Approximately 76% of these employees are engaged in
production, 3% in engineering, research and development and 21% in sales, marketing, product support and general administration. Approximately 76% of these employees are represented by unions and are covered by collective bargaining agreements that
will expire on November 1, 2007. In addition, as of December 31, 2006, we had 29 Wise Group employees at our corporate headquarters, 53 employees at TMC and 114 employees at Recycling. We consider our employee relations to be good. Neither
we nor our predecessor have experienced any major labor stoppage in over 10 years.

Environmental Matters

Our operations are subject to numerous and increasingly stringent federal, state and local laws and regulations governing protection of the environment, including those
relating to air emissions, wastewater and stormwater discharges, the handling, disposal and remediation of hazardous substances and wastes, and public and employee health and safety. Our operations involve the management of hazardous materials and
the use of aboveground and underground storage tanks containing materials that are subject to requirements of the federal Resource Conservation and Recovery Act, or RCRA, and comparable state statutes. Under such statutes, investigation or
remediation may be necessary in the event of leaks or other discharges from current or former underground or aboveground storage tanks or other sources. Our operations involving air emissions and wastewater and stormwater discharges are subject to
the Clean Air Act and Clean Water Act, respectively. Similar to many of our competitors, we have incurred and will continue to incur capital and operating expenditures and other costs in complying with such laws and regulations. Our operations also
involve the risk of the release of hazardous materials into the environment. In addition, we send material to third party recycling, treatment, and/or disposal facilities. The Comprehensive Environmental Response, Compensation, and Liability Act of
1980 and comparable state statutes can impose strict, and under some circumstances joint and several, liability upon entities that send materials to third party facilities for investigation and remediation of contamination, as well as on owners and
operators of sites at which soil or groundwater contamination is identified. We have not received any notice of such potential liability at any such facilities.

Our operating expenditures relating to environmental requirements in 2006 were approximately $3.1 million and are expected to be similar in 2007 and 2008. Future environmental regulations, including those under the
Clean Air Act and Clean Water Act, or more aggressive enforcement of existing regulations, may result in stricter compliance requirements for us and for the aluminum industry in general.

In connection with our acquisition of the Listerhill facility in 1999, a consultant performed a soil and groundwater investigation (Phase II
Report) to identify any environmental issues at the various plants that comprise the Listerhill facility. That Phase II Report identified certain on-site environmental areas of concern that may potentially require investigation or remediation
and provided a then-present value estimate of approximately $18 million to address them. Pursuant to the Listerhill facility purchase agreement, the prior owner of the Listerhill facility, Reynolds, now Alcoa, is required to perform the work
necessary and to indemnify us against the environmental matters required by applicable law to be addressed that are identified in the Phase II Report and any other such environmental liabilities attributable to Reynolds that were identified on or
before March 31, 2004 subject to certain limitations. Alcoa disagrees with the cost estimates contained in the Phase II Report and has stated that it estimates that the environmental issues identified in the Phase II Report will cost less than
$18 million to remediate. Although Alcoa has conducted some on-site environmental investigations and sampling and has submitted reports to the Alabama Department of Environmental Management (ADEM) regarding most of the on-site areas of concern, it
has not yet commenced cleanup activities with respect to many of the areas of concern.



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We are also party to an Environmental Cooperation Agreement, or ECA, with Alcoa, which is Reynolds
successor. The ECA addresses, among other things, the use of a surface water ditch system by both us and Alcoa, the use of process water retention ponds on Alcoas property and certain surface drainage easements across our property. The ECA
expires in December 2009, with automatic two year renewal periods unless either party elects to terminate, in which event the ECA will terminate one year following such election. Under the ECA, each party defends and indemnifies the other against
claims arising from its own violations of any applicable environmental laws, its handling, use, or disposal of hazardous materials at the Listerhill facility, a breach of any warranties, representations or covenants in the agreement, or damage or
loss to property and injury to or death of any persons.

In November 2006 the Company received notice from the Environmental Protection
Agency (EPA) regarding certain violations of the Clean Air Act. The Company disputes some of the alleged violations and has initiated actions to come into compliance with the relevant requirements. The EPA has indicated its intent to
resolve the violations through a judicial consent-decree, including the payment of civil penalties by the Company. Discussions with the EPA are ongoing. The ultimate outcome cannot be reasonably estimated at this time and thus no expense has been
recorded in the Companys consolidated financial statements.

We believe that we are in material compliance with environmental
requirements and that environmental matters will not have a material adverse effect on our business, although resolution of particular items in any particular year or quarter could be material to the results of operations or liquidity for that
period. However, we cannot guarantee that newly discovered conditions, or new, or more aggressive enforcement of applicable environmental requirements, or any failure by Alcoa to perform its indemnification obligations will not have a material
adverse effect on our business.

Wise has not discovered any new environmental concerns. As noted all significant environmental issues have
been identified and remain the responsibilities of Alcoa under the original Asset Purchase Agreement. Alcoa has acknowledged its obligation and discussions continue regarding the methodology to remediate these concerns.



|Item 1A. | Risk Factors.
|-------- | -------------

We may not be able to effectively manage our
exposure to fluctuations in aluminum prices.

Aluminum purchases and related alloying agents represented approximately 74% of our cost
of sales in 2006. Prime aluminum costs fluctuate over time. We reduce our exposure to aluminum price fluctuations by seeking to pass cost increases to customers through an indexed sales pricing mechanism, by keeping sufficient inventory on hand
and/or by fixing the cost of metal through forward contracts on the London Metal Exchange, or LME, based on the cost of prime aluminum. We seek to reduce our exposure to increases in aluminum prices over the contracted price by purchasing or
committing to purchase aluminum at relative fixed prices. We seek to protect ourselves against price fluctuations in prime aluminum contracts both by purchasing and selling futures contracts and through the use of options contracts to effectively
match our customer and supplier commitments. These hedging transactions may require us to post cash pursuant to margin calls. However, there can be no assurance that we will be successful in our efforts to use these types of derivative transactions
to help manage fluctuations in prime aluminum prices.

In addition, we are further exposed to counter-party performance risk in adverse
market conditions in the event of non-performance by a supplier, customer or LME broker and could suffer significant financial losses as a result.

Our processing-based business model seeks to take advantage of the lower price of scrap aluminum compared to prime aluminum to provide a cost-competitive product. To the extent the discount between the LMEs quoted primary aluminum
price and scrap price narrows, our competitive advantage is reduced. We cannot make use of financial markets to effectively hedge against reductions in this discount as this market is not readily available. If the difference between the price of
prime and scrap aluminum is narrow for a considerable period of time, or, if we are unable to successfully manage the risks associated with fluctuations in the price of prime aluminum, our profitability could decline. Hedging transactions may
require us to post cash pursuant to margin calls. Significant losses could occur if we entered into a hedge transaction that became unprofitable because a significant customer reduced orders.



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A decrease in sales to a major customer could adversely affect our business.

We derived approximately 55% and 16% of our total revenues in 2006 from sales to Ball and Crown, respectively. Ball, under long-term supply agreements,
has the ability to reduce their purchases from us if our product quality declines or if we fail to perform under a material provision of our supply agreements. There is no guarantee that we will be able to renew this supply agreement on favorable
terms, or at all. In addition, the amount of aluminum can stock and other products we sell under this agreement could decrease. For example, Ball has the option under their supply agreements to reduce specified shipment amounts in proportion to
reductions in the beverage can stock requirements of all of their can manufacturing facilities in North America. See Item 1, Business  Wise Alloys  Customers.

The loss of either of these customers or decreases in either customers levels of purchases from us for any reason, including a customers
closing or sale of a plant, a sale of its business, a strike or work stoppage by its employees or financial difficulties, or an adverse change in the terms of the supply arrangements with either customer could have a harmful effect on our business.

The loss of our raw materials sources could hurt our business.

Our aluminum can stock production operations use various raw materials, including scrap aluminum and prime aluminum. During 2005 and 2006, we purchased approximately 18% of the aluminum used in our can stock
production operations from two major suppliers. Unlike Alcoa, we are not an integrated producer of aluminum. Accordingly, our ability to produce competitively priced aluminum products depends on our ability to procure a competitively priced supply
of scrap and prime aluminum in a timely manner. We expect that a significant amount of our scrap aluminum supply requirements will continue to be sourced through scrap purchase arrangements with our customers and acquisitions of scrap aluminum from
our Wise Recycling segment and from third party suppliers. We obtain prime aluminum from brokers throughout the United States and directly from foreign and domestic producers. While we believe that these sources of raw materials are sufficient to
meet our current operating requirements, we cannot assure you that we will be able to timely procure competitively priced aluminum or that we will not experience shortages due to the interruption of supply. In addition, if Alcoa or Novelis
significantly increase their purchases of scrap aluminum, we may experience difficulty in obtaining our raw materials at the price discount that scrap has had traditionally over prime aluminum. Furthermore, the price of scrap aluminum may rise if
foreign demand for scrap aluminum increases. The recent trend of increased copper and steel scrap consumption by China and other foreign countries could extend to aluminum scrap.

Our operations require substantial amounts of energy and raw materials and, as a result, our profitability may decline if energy and/or commodity costs increase, or if these supplies are interrupted.

We consume substantial amounts of energy in our operations. Energy costs constituted approximately 6% of our overall cost of sales in
both 2006 and 2005. Excluding metal costs, energy represented approximately 22% of our conversion costs in both 2006 and 2005, respectively. Although we generally expect to meet our energy requirements from our long-term natural gas and electricity
contracts, we have been and could again be adversely affected by increases in the costs in natural gas and/or electricity, interruptions in energy supply due to equipment failure, hurricanes, or other causes, and by our inability to extend the
contracts upon expiration on economical terms. For example, we suffered interruptions in our supply of natural gas in 2005 because of hurricanes Katrina and Rita. We buy natural gas on a forward basis to minimize risk of rising prices, but we may
not always be able to do so successfully. Except to the extent we are able to protect ourselves against fluctuations in gas prices, every $1.00 change per mmBTU in the price of gas would affect our annual net income by approximately $4.2 million
based on our 2006 usage levels. In addition, an outbreak or escalation of hostilities between the United States and any foreign power and, in particular, a prolonged armed conflict in the Middle East, could result in a real or perceived shortage of
oil and/or natural gas, which could result in an increase in the cost of natural gas or energy generally. If energy costs were to rise, or if energy supplies or supply arrangements were disturbed, our profitability may decline.



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In addition, our operations generally require an uninterrupted supply of intense electrical energy, and
any interruption for more than a very short duration, whatever the cause, may have a major technical, commercial and financial impact on our business operations. In warm weather, TVA, our electrical energy source for the Listerhill facility, is
vulnerable to surges in demand for energy. These increases in demand may outstrip the available energy supply and lead to a curtailment. In 1999, we experienced this type of curtailment for approximately five days.

Outside of aluminum, our operations require substantial materials and supplies, many of which are subject to cost increases due to increasing commodity
costs used in the production of these supplies and materials. These materials account for approximately 9% of cost of sales. In addition, metal costs include costs for non-aluminum hardeners and alloying agents such as magnesium and manganese. These
materials comprise approximately 2% of metal costs and are subject to volatile commodity pricing and resulting cost increases. The price increases that we are able to achieve from our customers may not be sufficient to offset the effects of these
rising input costs.

A business interruption at our Listerhill facility could significantly harm our operations.

Our beverage can stock production is concentrated entirely at our Listerhill facility. We depend on the equipment and facilities at Listerhill for the
production of our beverage can stock and other aluminum sheet products. If our equipment or operations at Listerhill or portions thereof were disabled, our ability to manufacture beverage can stock products could be impaired or interrupted for an
indefinite period or could cease altogether and cause a material adverse effect on our financial condition. For example, in 2003 a fire at the facility curtailed our operations for four weeks and caused delivery problems for three months. Business
interruption insurance proceeds may not fully compensate us for damage to our equipment and facilities, lost profits and lost market share. We currently also have property casualty insurance for our Listerhill facility. However, the policy is
subject to limits and exclusions.

The beverage can stock industry is highly concentrated and our competitors have greater resources.

The market for beverage can stock products is highly concentrated. Competitors such as Novelis and Alcoa, each with an approximate one-third market share, have market
presence, operating capabilities and financial, personnel and other resources that are substantially greater than our own. Also, Alcoa is a fully integrated competitor who supplies its own prime aluminum for use in producing beverage can stock. They
may also affect prices for scrap aluminum by making purchases of scrap aluminum. These competitors can develop their technologies more quickly, take advantage of acquisition and other opportunities more readily, produce their own supply of aluminum
and devote greater resources to the marketing and sale of their products and services than we can. They may be able to purchase raw materials at a lower cost because of their size. Finally, the financial resources and excess capacity of our major
competitors may give them the ability to reduce their prices for an extended period of time. Any of these factors may reduce the prices we can charge for our products, lower our gross margins and cause us to lose market share. We cannot assure you
that we will be able to compete successfully in these circumstances.

We are subject to competition from non-aluminum sources of packaging.

Although aluminum maintains the largest overall share among packaging materials of the U.S. beverage container industry, it faces
increasing competition from other packaging materials such as plastics and glass. We face continued competition from plastic packaging producers (primarily high density polyethylene, or HDPE, and polyethylene terephthalate, or PET) in the soft drink
and juice segment of the beverage packaging industry. PET increased its market share of the U.S. beverage container market from an approximate 19% market share, as measured by number of containers, in 1997 to an approximate 26% market share in 2002
and is projected to have approximately 31% market share in 2007 based on information provided by the Freedonia Group as reported by the Can Manufacturers Institute (CMI). Some manufacturers and consumers prefer PET to aluminum because of its
clarity, availability in multiple sizes and ability to be resealed. In addition, glass accounted for approximately 13% of beverage container demand in 2002 with little expected increase in market share by 2007 as reported by CMI. If plastic and/or
glass and/or other new products increase their respective market shares, demand for our products may decrease significantly. For the years ended December 31, 2006 and 2005, 78% and 85%, respectively, of our sales volume was from beverage can
stock and we expect to derive a significant portion of our revenues from these sales in the future. If demand for these products decreased, our profits and cash flows could be reduced.



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Demand in the packaging market in which we participate can be inconsistent.

We primarily manufacture aluminum can stock that is used for beverage and, to a lesser extent, food packaging for which demand may be inconsistent. For
example, it is believed that the unseasonably cold and wet weather in the summer of 2003 decreased consumer demand in the U.S. and Canada for beverages packaged in the containers produced by our customers. As a result, our sales to Ball and Crown
declined in 2003. Our operating results could be adversely affected if the packaging market experiences weakness because of weather or general economic conditions or other factors.

We cannot guarantee that we will be successful in developing new products or entering new markets.

We have begun the development of higher value-added and intermediate products that complement our aluminum beverage can stock production. For example, we also process aluminum sheet for use in food containers, trailer roofing and air
conditioner and refrigerator components. Commercial product volume for the years ended December 31, 2006, 2005 and 2004 were 102.2 million, 61.1 million and 45.0 million pounds respectively. In 2001, we developed high-luster
heavier gauge embossed sheet and end plate for sale in the automotive after market. In addition, we have begun to supply intermediate aluminum products to other industry participants. Intermediate aluminum products are products that we sell to
customers before they have undergone final processing. We cannot assure you that we will be successful in further developing these products and in entering into new markets. We may experience design, manufacturing, marketing or other difficulties
that could delay or prevent the development, introduction or commercialization of any new products. Development of these products and entry into new markets may require greater capital resources than we currently anticipate. We cannot guarantee when
or whether these new products will be widely introduced or fully implemented, that they will be successful when they are introduced or that customers will purchase the products offered. If these products or services are not successful or the costs
associated with implementation and completion of the rollout of these products or services materially exceed those currently estimated by us, our results of operations may suffer.

Environmental requirements could adversely affect our financial condition and our ability to conduct our business.

Our operations are subject to numerous and increasingly stringent federal, state and local laws and regulations governing protection of the environment, including those relating to air emissions, wastewater and stormwater discharges, the
handling, disposal and remediation of hazardous substances and wastes, and public and employee health and safety. Our operations involve the management of hazardous materials and the use of aboveground and underground storage tanks containing
materials that are subject to requirements of the federal Resource Conservation and Recovery Act, or RCRA, and comparable state statutes. Under such statutes, investigation or remediation may be necessary in the event of leaks or other discharges
from current or former underground or aboveground storage tanks or other sources. Our operations involving air emissions and wastewater and stormwater discharges are subject to the Clean Air Act and Clean Water Act, respectively. Similar to many of
our competitors, we have incurred and will continue to incur capital and operating expenditures and other costs in complying with such laws and regulations. Our operations also involve the risk of the release of hazardous materials into the
environment. In addition, we send material to third party recycling, treatment, and/or disposal facilities. The Comprehensive Environmental Response, Compensation, and Liability Act of 1980 and comparable state statutes can impose strict, and under
some circumstances joint and several, liability upon entities that send materials to third party facilities for investigation and remediation of contamination, as well as upon the owners and operators of sites at which soil or groundwater
contamination is identified. We have not received any notice of such potential liability at any such facilities. Future environmental regulations, including those under the Clean Air Act and Clean Water Act, or more aggressive enforcement of
existing regulations, may result in stricter compliance requirements for us and for the aluminum industry in general.

In connection with
our acquisition of the Listerhill facility in 1999, a consultant performed a soil and groundwater investigation (Phase II Report) to identify any environmental issues at the various plants that comprise the Listerhill facility. That
Phase II Report identified certain on-site environmental areas of



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concern that may potentially require investigation or remediation and provided a then-present value estimate of
approximately $18 million to address them. Pursuant to the Listerhill facility purchase agreement, the prior owner of the Listerhill facility, Reynolds, now Alcoa, is required to perform the work necessary and to indemnify us against the
environmental matters required by applicable law to be addressed and identified in the Phase II Report and any other such environmental liabilities attributable to Reynolds that were identified on or before March 31, 2004, subject to certain
limitations. Alcoa disagrees with the cost estimates contained in the Phase II Report and has stated that it estimates that the environmental issues identified in the Phase II Report will cost less than $18 million to remediate. Although Alcoa has
conducted some on-site environmental investigations and sampling and has submitted reports to the Alabama Department of Environmental Management (ADEM) regarding most of the on-site areas of concern, it has not yet commenced cleanup activities with
respect to many of the areas of concern.

Wise has not discovered any new environmental concerns. As noted all significant environmental
issues have been identified and remain the responsibilities of Alcoa under the original Asset Purchase Agreement. Alcoa has acknowledged its obligation and discussions continue regarding the methodology to remediate these concerns.

However, there can be no assurance that Alcoa will be willing to perform its indemnification obligations regarding the Listerhill facility or that costs
to do so will not exceed $18 million. Any failure by Alcoa to address completely such issues could materially affect our financial condition and our ability to conduct our business. Furthermore, there can be no assurance that environmental
conditions requiring remediation will not be discovered in the future which are not addressed by Alcoa and could result in material costs to us. See Item 1, Business  Wise Metals Group  Environmental Matters.

In November 2006 the Company received notice from the Environmental Protection Agency (EPA) regarding certain violations of the Clean Air
Act. The Company disputes some of the alleged violations and has initiated actions to come into compliance with the relevant requirements. The EPA has indicated its intent to resolve the violations through a judicial consent-decree, including the
payment of civil penalties by the Company. Discussions with the EPA are ongoing. The ultimate outcome cannot be reasonably estimated at this time and thus no expense has been recorded in the Companys consolidated financial statements.

We have a unionized workforce, and union disputes and other employee relations issues could harm our financial results.

Mostly all of our hourly-paid employees are represented by labor unions under seven collective bargaining agreements. We may not be able to
satisfactorily renegotiate our labor agreements when they expire on November 1, 2007. In addition, although we consider our employee relations generally to be good, our existing labor agreements may not prevent a strike or work stoppage at our
facility in the future, and any such prolonged work stoppage could have a material adverse effect on our financial condition and results of operations. See Item 1, Business  Employees.

Our success will continue to depend on our ability to attract and retain executives and other key personnel.

Our continued success depends on our ability to attract, motivate and retain highly skilled and qualified management and technical personnel. Any
inability to do so could hurt our business. In addition, there can be no assurance that we will be able to hire qualified persons when needed or on favorable terms. In addition, the loss of any one or more of our executive officers could have an
adverse effect on our ability to manage and operate our business. We do not have employment agreements with any of our executive officers.

We are
controlled by a limited number of persons.

As of December 31, 2006, Silver Knot, LLC, owns approximately 79% of the membership
interests of Wise Group. David DAddario, CEO, Chairman and a Manager of Wise Group, controls Silver Knot and Greg Garvey, a Manager of Wise Group is also a member of Silver Knot. The board of Wise Group



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contains no independent managers. Mr. DAddario and Mr. Garvey have the ability to affect certain corporate transactions, including mergers,
consolidations and the sale of all or substantially all of Wise Groups assets.

We may expand our operations through acquisitions, which may
divert managements attention and expose us to unanticipated liabilities and costs. We may experience difficulties integrating any acquired operations, and we may incur costs relating to acquisitions that are never consummated.

Our business strategy contemplates continued expansion of our operations, including growth through future acquisitions. However, our ability to
consummate and integrate effectively any future acquisitions on terms that are favorable to us may be limited by the number of attractive acquisition targets, internal demands on our resources and our ability to obtain financing. Our success in
integrating newly acquired businesses will depend upon our ability to retain key personnel, avoid diversion of managements attention from operational matters, and integrate general and administrative services and key information processing
systems. In addition, future acquisitions could result in the incurrence of additional indebtedness, costs and contingent liabilities. We may also incur costs and divert management attention to acquisitions that are never consummated. Integration of
acquired operations may also take longer, or be more costly or disruptive to our business, than originally anticipated. It is also possible that expected synergies from future acquisitions may not materialize.

Although we will undertake a comprehensive due diligence investigation of each business that we might acquire, there may be liabilities of the acquired
companies that we fail or are unable to discover during the diligence investigation and for which we, as a successor owner, may be responsible. In connection with acquisitions, we generally seek to minimize the impact of these types of potential
liabilities through indemnities and warranties from the seller, which may in some instances be supported by deferring payment of a portion of the purchase price. However, these indemnities and warranties, if obtained, may not fully cover the
liabilities due to limitations in scope, amount or duration, financial limitations of the indemnitor or warrantor or other reasons.

Our leverage may
affect our business and may restrict our operating flexibility.

We have substantial debt and, as a result, significant debt service
obligations. As of December 31, 2006, we had approximately $344.8 million of debt outstanding, including $177.2 million under our senior secured facility, and outstanding letters of credit in the amount of $2.1 million. Our availability was
$3.6 million under our senior secured credit facility. Subject to certain restrictions set forth in our senior secured credit facility and the indenture, we may incur additional indebtedness in the future. Our substantial level of debt and debt
service obligations could:



| |  |  | limit cash flow available for general corporate purposes, such as acquisitions and capital expenditures, due to the ongoing cash flow requirements for debt service;
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | limit our ability to obtain, or obtain on favorable terms, additional debt financing in the future for working capital, capital expenditures, acquisitions or other
corporate requirements;
| | - |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | limit our flexibility in reacting to competitive and other changes in the aluminum industry and economic conditions generally;
| | - |  | ------------------------------------------------------------------------------------------------------------------------------



| |  |  | make it difficult to meet debt service requirements; and
| | - |  | --------------------------------------------------------



| |  |  | expose us to risks inherent in interest rate fluctuations in respect of any borrowings at variable rates of interest, which could result in higher interest expense
in the event of increases in interest rates.
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Our ability to make scheduled payments of principal of, to pay interest on,
or to refinance, our indebtedness and to satisfy our other debt obligations will depend upon our future operating performance,



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which may be affected by general economic, financial, competitive, legislative, regulatory, business and other factors beyond our control. We will not be
able to control many of these factors, such as the economic conditions in the markets in which we operate and initiatives taken by our competitors. In addition, there can be no assurance that future borrowings or equity financing will be available
for the payment or refinancing of our indebtedness. If we are unable to service our indebtedness, whether in the ordinary course of business or upon acceleration of such indebtedness, we may be forced to pursue one or more alternative strategies,
such as restructuring or refinancing our indebtedness, selling assets, reducing or delaying capital expenditures or seeking additional equity capital. There can be no assurance that any of these strategies could be affected on satisfactory terms, if
at all.

We may not be able to finance future needs or modify our business plan because of restrictions placed on us by our senior secured credit
facility, the indenture for senior secured notes and the instruments governing our other indebtedness.

Our senior secured credit
facility, as amended and restated, the indenture for our senior secured notes and other agreements governing our other indebtedness contain covenants that restrict us from taking various actions such as incurring additional debt under certain
circumstances, paying dividends, making investments, entering into transactions with affiliates, merging or consolidating with other entities and selling all or substantially all of our assets. We are also bound to comply with certain specified
tests under our senior secured credit facility. These restrictions could limit our ability to obtain future financings, make needed capital expenditures, withstand future downturns in our business or the economy in general or otherwise conduct
necessary corporate activities. We may also be prevented from taking advantage of business opportunities that arise because of limitations imposed on us by these restrictive covenants.

If we do not comply with these or other covenants and restrictions contained in our senior secured credit facility, the indenture and other agreements
governing our indebtedness, we could be in default under those agreements, and the debt under those instruments, together with accrued interest, could then be declared immediately due and payable. If we default under our senior secured credit
facility, the lenders could cause all of our outstanding debt obligations under our senior secured credit facility to become due and payable, require us to apply all of our cash to repay the indebtedness or prevent us from making debt service
payments on any other indebtedness we owe. In addition, any default under our senior secured credit facility or agreements governing our other indebtedness could lead to an acceleration of debt under other debt instruments that contain
cross-acceleration or cross-default provisions. If the indebtedness under our senior secured credit facility and indenture is accelerated, we may not have sufficient assets to repay amounts due under our senior secured credit facility, the exchange
notes or under other debt securities then outstanding. Our ability to comply with these provisions of our senior secured credit facility, the indenture and other agreements governing our other indebtedness may be affected by changes in the economic
or business conditions or other events beyond our control.



|Item 1B. | Unresolved Staff Comments.
|-------- | --------------------------

Not applicable.



|Item 2. | Property.
|------- | ---------

Our Listerhill manufacturing operations
are located in Muscle Shoals, Alabama and comprise approximately 1,500 acres, of which approximately 102 acres are leased. Our corporate headquarters are located in Linthicum, Maryland. Recycling currently operates shipping centers in the locations
contained in the listing below.



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The following table presents certain information regarding our owned and leased facilities as of
December 31, 2006:



|                             |  |                     |  |                                             |  |              |  |                     
|---------------------------- |  | ------------------- |  | ------------------------------------------- |  | ------------ |  | --------------------
|Location                     |  | EstimatedSquareFeet |  | Use                                         |  | Owned/Leased |  | LeaseExpiration Date
|Wise Metals Group Facilities |  |                     |  |                                             |  |              |  |                     
|Linthicum, MD                |  | 6,394               |  | Offices                                     |  | Leased       |  | March 2013          
|                             |  |                     |  |                                            
|Wise Alloys Facilities       |  |                     |  |                                             |  |              |  |                     
|Muscle Shoals, AL            |  | 4,000,000           |  | Alloys Plant                                |  | Owned        |  |                     
|                             |  | 215,000             |  | Alabama Reclamation Plant                   |  | Owned        |  |                     
|                             |  | 115,000             |  | Southern Reclamation Plant(1)(2)            |  | Owned        |  |                     
|                             |  | 300,000             |  | Sheffield Coating Plant(2)                  |  | Leased       |  | March 2098          
|                             |  | 30,928              |  | Sewage Treatment Plant(2)                   |  | Leased       |  | March 2098          
|                             |  | 48,840              |  | Drinking Water Plant(2)                     |  | Leased       |  | March 2098          
|                             |  | 33,105              |  | Locomotive Shed and Maintenance Building(2) |  | Leased       |  | March 2098          
|Wise Recycling Facilities    |  |                     |  |                                             |  |              |  |                     
|Albuquerque, NM              |  | 16,475              |  | Recycling Service Center                    |  | Owned        |  |                     
|Bristol, VA                  |  | 31,800              |  | Recycling Service Center                    |  | Owned        |  |                     
|Charlotte, NC                |  | 30,000              |  | Recycling Service Center                    |  | Leased       |  | Month-to-Month      
|Commerce, CA                 |  | 72,105              |  | Recycling Warehousing Operation             |  | Leased       |  | October 2013        
|Denver, CO                   |  | 18,260              |  | Recycling Service Center                    |  | Owned        |  |                     
|Lexington, KY                |  | 43,000              |  | Recycling Service Center                    |  | Leased       |  | February 2008       
|Pensacola, FL                |  | 10,900              |  | Recycling Service Center                    |  | Leased       |  | November 2015       
|Raleigh, NC                  |  | 25,000              |  | Recycling Service Center                    |  | Leased       |  | March 2010          



|(1) | The plant is owned; certain portions of the land are leased from Alcoa. The lease on the land expires March 2098.
|--- | -----------------------------------------------------------------------------------------------------------------

|(2) | The leases on these plants are subject to certain change of control and consent provisions. Under the terms of the lease related to the Southern Reclamation Plant, Alcoa has the
right to terminate the lease if we sell, transfer or assign the lease or the Southern Reclamation plant without Alcoas prior consent. Under the terms of the lease related to the sewage treatment plant, Alcoa has the right to terminate the
lease prior to its expiration date if we cease to operate the sewage treatment plant, cease to provide sewage treatment services to Alcoa or sell, transfer or assign the lease to the sewage treatment plant without Alcoas prior consent. Under
the terms of the lease related to the drinking water plant, Alcoa has the right to terminate the lease prior to its expiration date if we cease to provide drinking water services to Alcoa, cease to operate the drinking water plant or sell, transfer
or assign the lease of the drinking water plant without Alcoas prior consent. Under the terms of the lease related to locomotive shed and maintenance buildings and the related buildings and the related real property, Alcoa has the right to
terminate the lease prior to the expiration date if we cease to operate our Listerhill facility, the Alabama Reclamation Plant, the Southern Reclamation Plant or the Sheffield Coating Plant or we sell, transfer or assign the lease for our Listerhill
facility, the Alabama Reclamation Plant, the Southern Reclamation Plant or the Sheffield Coating Plant without Alcoas prior consent.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Item 3. | Legal Proceedings
|------- | -----------------

We are a defendant from time to
time in various legal actions arising in the normal course of business, the outcomes of which, in the opinion of management, neither individually nor in the aggregate are likely to result in a material adverse effect on our business, results of
operations or financial condition.

The Company is a defendant in an action brought by Merrill Lynch, Pierce, Fenner & Smith
Incorporated pending in the New York Supreme Court, County of New York. In this action, Merrill Lynch seeks $0.9 million for out-of-pocket costs and expenses allegedly incurred pursuant to a letter agreement between Wise Metals and Merrill Lynch
dated January 31, 2002, in which Merrill Lynch alleges that Wise Metals agreed to reimburse Merrill Lynch for such costs and expenses. The Company has hired counsel and is vigorously contesting this lawsuit and believes it has meritorious
defenses to the claims alleged therein. The Company has filed an answer to the complaint denying the material allegations and alleging several



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affirmative defenses and counterclaims which exceed in amount the sum sought by Merrill Lynch. Merrill Lynch moved to dismiss the Companys
counterclaims and by an order dated December 30, 2004, the Court granted this motion, dismissed the counterclaims and permitted the Company to replead two of the counterclaims. The Company appealed, which resulted in a reversal reinstating the
dismissed counterclaims. Merrill Lynch has replied to the counterclaims. The action is presently in the discovery stage. The Company believes that it is not currently possible to estimate the ultimate outcome of this litigation. As a result, no
expense for any potential adverse outcome of this matter has been recorded in the consolidated financial statements.

The Company is a
defendant in an action brought by a former executive seeking compensatory damages pending in Delaware State Court. The plaintiff alleged that a deal had been negotiated whereby in exchange for $2 million the plaintiff would surrender his equity
interest in the Company, forgo any claim for a $1 million severance that plaintiff alleges would otherwise come due on his 62nd birthday (payable in $50,000 quarterly installments) and provide the Company with a general release of any existing or
potential claims. The Company has accrued a $1 million reserve in connection with this litigation. The Company has hired counsel, is vigorously contesting this lawsuit and believes it has meritorious defenses. In addition, this plaintiff sought to
enforce an alleged settlement contract with the Company in Alabama State Court. The Company filed for summary judgment on all claims related to this alleged settlement and on February 12, 2007, the Court granted the motion in full and dismissed
all claims with prejudice. Appeal is permitted until April 23, 2007.

On August 11, 2006 the Company filed a lawsuit against
Crown Cork and Seal (USA), Inc. in state court in Alabama for breach of contract and seeking a declaratory judgment on our beverage can sheet and food sheet contracts. The lawsuit alleges damages because of breaches by Crown of the beverage can
sheet contract, and asks the court to interpret certain pricing provisions of the food contract.

On September 8, 2006, Crown entered
a counter claim asserting breaches to the food and beverage can contracts. The Company intends to vigorously contest this counterclaim and at this time is unable to determine the reasonable likely outcome of both the Companys and Crowns
claim. In the opinion of management, amounts accrued for exposures relating to the aforementioned contingencies, and other legal proceedings are adequate and, accordingly, the ultimate resolution of these matters is not expected to have a material
adverse effect on the Companys consolidated financial statements.

As of December 31, 2006, the Company had no known probable
but inestimable exposures relating to claims, environmental matters, or other legal proceedings that are expected to have a material adverse effect on the Company. There can be no assurance, however, that unanticipated events will not require the
Company to increase the amount it has accrued for any matter or accrue for a matter that has not been previously accrued because it was not considered probable. While it is possible that the increase or establishment of an accrual could have a
material adverse effect on the Companys financial results for any particular fiscal quarter or year, in the opinion of management there exists no known potential exposure that would have a material adverse effect on the financial condition or
on the financial results of the Company beyond such fiscal quarter or year.

In November 2006 the Company received notice from the
Environmental Protection Agency (EPA) regarding certain violations of the Clean Air Act. The Company disputes some of the alleged violations and has initiated actions to come into compliance with the relevant requirements. The EPA has
indicated its intent to resolve the violations through a judicial consent-decree, including the payment of civil penalties by the Company. Discussions with the EPA are ongoing. The ultimate outcome cannot be reasonably estimated at this time and
thus no expense has been recorded in the Companys consolidated financial statements.



|Item 4. | Submission of Matters to a Vote of Security Holders
|------- | ---------------------------------------------------

No matters were submitted to a vote of security holders in 2006.



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Part II



|Item 5. | Market for Registrants Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.
|------- | -------------------------------------------------------------------------------------------------------------

There is no publicly traded market for our common equity.



|Item 6. | Selected Financial Data (Restated) (Dollars in Thousands)
|------- | ---------------------------------------------------------

The following table sets forth our selected historical and other financial data for each of the five years in the period ended December 31. Until June 30, 2003, we accounted for our 50% membership interest in Wise Recycling using
the equity method. With the acquisition of the remaining 50% membership interest, Wise Recycling has been included in our statement of operations data from July 1, 2003. You should read the following selected historical financial and other
information in conjunction with Managements Discussion and Analysis of Financial Condition and Results of Operation and our consolidated financial statements and the notes thereto included elsewhere in this Form 10-K/A.



|                                                                         |  |            |           |   |          |   |         |          |  |   |          |   |  |          |         |   |  |   |         |  
|------------------------------------------------------------------------ |  | ---------- | --------- | - | -------- | - | ------- | -------- |  | - | -------- | - |  | -------- | ------- | - |  | - | ------- | -
|                                                                         |  | 2006 (1,2) |           |   | 2005 (2) |   |         | 2004 (2) |  |   | 2003 (2) |   |  | 2002 (2) |        
|                                                                         |  | Restated   |           |   | Restated |   |         | Restated |  |   | Restated |   |  | Restated |        
|Statement of Operations Data:                                            |  |            |           |   |          |   |         |          |  |   |          |   |  |          |         |   |  |   |         |  
|Sales                                                                    |  | $          | 1,038,641 |   |          | $ | 907,736 |          |  | $ | 792,357  |   |  | $        | 636,587 |   |  | $ | 645,235 |  
|Cost of sales                                                            |  |            | 1,054,135 |   |          |   | 905,182 |          |  |   | 796,007  |   |  |          | 619,204 |   |  |   | 609,970 |  
|                                                                         |  |            |           |   |          |   |         |          |  |   |          |   |  |          |         |   |  |   |         |  
|Gross margin (deficit)                                                   |  |            | (15,494   | ) |          |   | 2,554   |          |  |   | (3,650   | ) |  |          | 17,383  |   |  |   | 35,265  |  
|Selling, general and administrative                                      |  |            | 11,557    |   |          |   | 10,728  |          |  |   | 11,967   |   |  |          | 9,204   |   |  |   | 6,750   |  
|Severance charges (credit)                                               |  |            |          |   |          |   |        |          |  |   |         |   |  |          | (4,315  | ) |  |   | 6,196   |  
|                                                                         |  |            |           |   |          |   |         |          |  |   |          |   |  |          |         |   |  |   |         |  
|Operating income (loss)                                                  |  |            | (27,051   | ) |          |   | (8,174  | )        |  |   | (15,617  | ) |  |          | 12,494  |   |  |   | 22,319  |  
|Nonrecurring charges                                                     |  |            |          |   |          |   |        |          |  |   |         |   |  |          |        |   |  |   | (3,221  | )
|Guarantee of affiliate debt                                              |  |            |          |   |          |   |        |          |  |   |         |   |  |          | 300     |   |  |   | 1,471   |  
|Income (loss) from affiliate                                             |  |            |          |   |          |   |        |          |  |   |         |   |  |          | 973     |   |  |   |        |  
|Early extinguishment of debt                                             |  |            |          |   |          |   |        |          |  |   | (7,455   | ) |  |          |        |   |  |   | 12,967  |  
|Interest expense and fees, net                                           |  |            | (32,679   | ) |          |   | (25,110 | )        |  |   | (17,920  | ) |  |          | (14,400 | ) |  |   | (11,113 | )
|Adjustment for contracts under SFAS 133(3)                               |  |            | (24,126   | ) |          |   | 11,666  |          |  |   | (550     | ) |  |          | 8,196   |   |  |   | 12,704  |  
|                                                                         |  |            |           |   |          |   |         |          |  |   |          |   |  |          |         |   |  |   |         |  
|Income (loss) before cumulative effect of change in accounting principle |  |            | (83,856   | ) |          |   | (21,618 | )        |  |   | (41,542  | ) |  |          | 7,563   |   |  |   | 35,127  |  
|Cumulative effect of change in accounting principle                      |  |            |          |   |          |   |        |          |  |   |         |   |  |          |        |   |  |   |        |  
|                                                                         |  |            |           |   |          |   |         |          |  |   |          |   |  |          |         |   |  |   |         |  
|Net income (loss)                                                        |  | $          | (83,856   | ) |          | $ | (21,618 | )        |  | $ | (41,542  | ) |  | $        | 7,563   |   |  | $ | 35,127  |  
|                                                                         |  |            |           |   |          |   |         |          |  |   |          |   |  |          |         |   |  |   |         |  
|Other Data:                                                              |  |            |           |   |          |   |         |          |  |   |          |   |  |          |         |   |  |   |         |  
|Depreciation and amortization                                            |  | $          | 12,580    |   |          | $ | 13,355  |          |  | $ | 13,211   |   |  | $        | 12,300  |   |  | $ | 8,679   |  



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|                                                  |  |   |          |   |  |   |         |   |  |   |         |   |  |   |         |  |   |        
|------------------------------------------------- |  | - | -------- | - |  | - | ------- | - |  | - | ------- | - |  | - | ------- |  | - | -------
|Adjusted EBITDA(4)                                |  |   | 9,106    |   |  |   | 7,499   |   |  |   | 33,335  |   |  |   | 30,423  |  |   | 33,383 
|Capital expenditures                              |  |   | 10,612   |   |  |   | 14,537  |   |  |   | 12,329  |   |  |   | 10,143  |  |   | 14,248 
|Total pounds billed-rolled aluminum (in millions) |  |   | 636      |   |  |   | 661     |   |  |   | 653     |   |  |   | 570     |  |   | 599    
|Number of employees at end of periodTotal        |  |   | 1,091    |   |  |   | 1,151   |   |  |   | 1,134   |   |  |   | 1,147   |  |   | 1,085  
|Number of employees at end of periodAlloys       |  |   | 895      |   |  |   | 959     |   |  |   | 1,012   |   |  |   | 1,026   |  |   | 1,067  
|Total man hours worked (in thousands) Alloys     |  |   | 1,509    |   |  |   | 1,527   |   |  |   | 1,609   |   |  |   | 1,747   |  |   | 1,809  
|Balance Sheet Data (at period end):               |  |   |          |   |  |   |         |   |  |   |         |   |  |   |         |  |   |        
|Cash                                              |  | $ | 2,280    |   |  | $ | 6,456   |   |  | $ | 7,669   |   |  | $ | 903     |  | $ | 3,533  
|Broker deposits(5)                                |  |   | 7,889    |   |  |   | 250     |   |  |   | 250     |   |  |   | 250     |  |   | 6,916  
|Property and equipment, net                       |  |   | 84,589   |   |  |   | 86,557  |   |  |   | 85,375  |   |  |   | 86,257  |  |   | 81,979 
|Total assets                                      |  |   | 334,919  |   |  |   | 342,439 |   |  |   | 334,470 |   |  |   | 285,640 |  |   | 279,213
|Working capital                                   |  |   | (33,918  | ) |  |   | 34,798  |   |  |   | 55,867  |   |  |   | 18,016  |  |   | 13,455 
|Total debt                                        |  |   | 344,800  |   |  |   | 290,033 |   |  |   | 254,244 |   |  |   | 175,270 |  |   | 163,435
|Total members (deficit) equity                   |  |   | (121,436 | ) |  |   | (37,130 | ) |  |   | (12,765 | ) |  |   | 42,890  |  |   | 35,327 



|(1) | 2006 has been restated as it relates to the LIFO error described in note 2 to the consolidated financial statements.
|--- | --------------------------------------------------------------------------------------------------------------------

|(2) | All periods have been restated to correct the classification of shipping and handling costs as described in note 2 to the consolidated financial statements. This reclass had no
effect on net income.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(3) | We adopted SFAS No. 133, Accounting for Derivative Instruments and Hedging Activity, on January 1, 2001. We have elected not to designate any of our derivative instruments
as hedges under this statement. All of our derivatives are recorded at fair value in our balance sheets. Accordingly, any unrealized loss or gain is recorded in operations as of the end of each accounting period. (See Note 3 to our Consolidated
Financial Statements).
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(4) | Adjusted EBITDA represents EBITDA (defined as net income (loss) before income taxes, interest expense and fees, net, and depreciation and amortization), adjusted to exclude early
extinguishment of debt, income from affiliate, nonrecurring charges, severance charges and credits, LIFO adjustments, cumulative effect of change in accounting principle and mark-to-market adjustment for contracts under SFAS 133. Adjusted EBITDA
should be considered in addition to, and not as a substitute for, cash flows as a measure of liquidity. We include Adjusted EBITDA information because this measure is used to measure our compliance with debt covenants and used by investors and note
holders to evaluate our ability to service debt. Our measure of Adjusted EBITDA may not be comparable to similarly titled measures of other companies. The table below sets forth the computation of Adjusted EBITDA. See Item 7,
Managements Discussion and Analysis of Financial Condition and Results Of Operation  Liquidity and Capital Resources.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(5) | Broker deposits includes cash deposits with commodity brokers to cover open hedging positions.
|--- | ----------------------------------------------------------------------------------------------



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|                                                    |  |      |         |   |      |   |         |      |  |   |         |   |  |      |        |   |  |   |        |  
|--------------------------------------------------- |  | ---- | ------- | - | ---- | - | ------- | ---- |  | - | ------- | - |  | ---- | ------ | - |  | - | ------ | -
|                                                    |  | 2006 |         |   | 2005 |   |         | 2004 |  |   | 2003    |   |  | 2002 |       
|Net Cash (used in) provided by operating activities |  | $    | (47,175 | ) |      | $ | (21,559 | )    |  | $ | (33,823 | ) |  | $    | (2,340 | ) |  | $ | 22,866 |  
|Changes in working capital items and other          |  |      | 23,602  |   |      |   | 3,948   |      |  |   | 48,653  |   |  |      | 23,951 |   |  |   | 37,190 |  
|Interest expense and fees, net(a)                   |  |      | 32,679  |   |      |   | 25,110  |      |  |   | 18,505  |   |  |      | 14,400 |   |  |   | 11,113 |  
|Income from affiliate                               |  |      |        |   |      |   |        |      |  |   |        |   |  |      | (1,273 | ) |  |   | (1,471 | )
|Severance charges (credits)                         |  |      |        |   |      |   |        |      |  |   |        |   |  |      | (4,315 | ) |  |   | 6,196  |  
|Nonrecurring charges                                |  |      |        |   |      |   |        |      |  |   |        |   |  |      |       |   |  |   | 3,221  |  
|                                                    |  |      |         |   |      |   |         |      |  |   |         |   |  |      |        |   |  |   |        |  
|Adjusted EBITDA                                     |  | $    | 9,106   |   |      | $ | 7,499   |      |  | $ | 33,335  |   |  | $    | 30,423 |   |  | $ | 33,383 |  



|(a) | Interest expense and fees includes servicing fees paid in conjunction with receivables asset sales in the amount of $585 in 2004.
|--- | ---------------------------------------------------------------------------------------------------------------------------------



|Item 7. | Managements Discussion And Analysis Of Financial Condition And Results Of Operation (Restated)
|------- | -----------------------------------------------------------------------------------------------

Overview

We are the third largest producer of
aluminum beverage can stock in the world and one of the largest aluminum and other non-ferrous scrap recyclers in the United States. Beverage can stock is aluminum sheet specifically designed and engineered for the production of aluminum beverage
cans. We own one of only five beverage can stock facilities in North America, providing valuable capacity to meet volume demands in a consolidated industry. Our can stock customers include Ball, Crown and Rexam. These customers produce aluminum cans
for the largest brewers and carbonated soft drink bottlers in North America. In addition, we produce food container stock and semi-fabricated aluminum sheet for transportation and other common alloy commercial markets. Our recycling operation, Wise
Recycling, provides aluminum feedstock for our aluminum sheet production as well as collection of scrap for sale in the merchant market.

Unlike some of our principal competitors, we do not manufacture aluminum from bauxite. Instead, we process aluminum scrap and prime aluminum manufactured by third parties. As a result, we do not have the capital requirements and high fixed
costs associated with the production of prime aluminum. Aluminum purchases comprised approximately 75% of our cost of sales in 2006. Historically, prices of our aluminum can stock and other products have been directly correlated to the prices of our
metal material cost due to the standard industry practice of passing through the metal material costs to customers. This correlation, subject to the impact of metal ceiling or price caps has otherwise allowed us to maintain a relatively
consistent conversion revenue, defined as net revenue less material costs, on a per pound basis. The impact of metal prices rising above the ceiling in 2004, 2005 and 2006 has led to a reduction in conversion revenue and resulting conversion margin.
The Company expects to have no impact from metal ceilings in 2007.

Our can stock production takes place at our Listerhill facility in
Muscle Shoals, Alabama. We purchased this facility from Reynolds in January 1999. At our Listerhill facility, we convert used beverage cans, other forms of scrap aluminum and primary ingot into high quality aluminum sheet, or can stock, that is used
by our customers to produce beverage and food cans and other aluminum sheet products. There are five primary steps in the production process: (i) melting the raw material; (ii) casting an ingot; (iii) hot rolling the ingot and
reducing its gauge to a 0.10 inch thickness; (iv) further reducing the thickness to customer specified gauges on our cold mills and (v) finishing the can stock with a coating. Including commercial products and can sheet, we believe our
cast house and hot mill have annual capacity in excess of 1.8 and 1.4 billion pounds, respectively, while our cold mills and finishing capacity is limited to approximately 1.1 billion pounds.



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We generally warehouse finished can stock at twelve locations which are strategically situated in close
proximity to many of the primary customer plant locations that we serve. Our customer plant locations require daily shipments by either rail or truck to replenish warehouse inventory.

In 2006, approximately 55% and 16% of our total revenues were derived from sales to Ball and Crown, respectively. Our Listerhill facility has been a
supplier to selected Ball manufacturing facilities since 1965, and we are the largest supplier of beverage can stock to Ball. Ball has contracted to purchase aluminum beverage can stock from us through a multi-year supply agreement extending beyond
2006. We supplied beverage can stock to Crown under a supply agreement through September, 2006 and continue to make spot shipments. We currently supply Crown food can stock under a multi-year supply agreement which extends beyond 2007. We began to
ship can stock to Rexam in 2004 and continue with Rexam to make spot shipments. We also continue with trial shipments to a fourth major beverage can manufacturer.

Our historic beverage can stock shipments have been fairly consistent since our purchase of our Listerhill facility in 1999, as the beverage can market and competitive market share positions have been relatively
constant over that period.

We recognize revenue at the later of the date of shipment, or upon transfer of title. The majority of our
inventory is accounted for on a last-in, first-out basis. We have elected not to designate any of our derivative instruments as hedges under SFAS No. 133. All of our derivatives have been recorded at fair value on our balance sheets.

Metal, labor, natural gas, electricity and plant maintenance costs represent the primary components of our cost of sales. In 2006, scrap
aluminum represented approximately 69% of our metal input. In 2006, aluminum represented approximately 71% of our cost of sales. Purchases of scrap aluminum from Recycling and our customers made up 47% of total scrap used, with the balance coming
from purchases in the open market. The scrap purchase arrangements with our key customers through which we purchase scrap aluminum generated in their can production processes provided us with approximately 26% of our scrap aluminum requirements in
2006. In 2006, scrap aluminum purchases from Recycling represented 21% of our purchases of scrap aluminum. Recycling presently operates seven area centers with twenty service centers and eighteen convenience centers associated with the area centers.
Recycling continues to identify potential locations where there is a sufficient industrial base to provide scrap to the plant and operate profitably on an independent basis. Recycling also sells copper and other non-ferrous scrap to unaffiliated
third party buyers.

The primary aluminum alloys utilized in our business are readily available and are purchased from both foreign and
domestic sources.

We currently purchase natural gas on a bid basis from Atmos which is delivered through Northern Alabama Gas District
Pipeline and purchase electricity from the TVA, which provides for firm power at fixed prices and variable power at market prices.

Shipping and handling costs amounted to $25.6 million, $23.9 million, and $25.5 million for the years ended December 31, 2006, 2005 and 2004, respectively, and are recorded as cost of sales in the statements of operations. While
shipments increased from 736.1 million pounds in 2004 to 764.7 million pounds in 2005 , freight costs actually decreased from $25.5 million in 2004 to $23.9 million in 2005 due to more effective use of rail transportation which provides
for a less expensive mode of transportation versus shipments by truck. While shipments decreased from 764.71 million pounds in 2005 to 757.3 million pounds in 2006, freight costs actually increased from $23.9 million in 2005 to $25.6
million in 2006 due an increased use of truck transportation which provides for a more expensive mode of transportation versus shipments by rail.

Selling, general and administrative expenses consist primarily of employment and various administrative expenses. Employment costs comprised approximately 48% of selling, general and administrative expenses in 2006. Eleven unions represent
our hourly workers under seven collective bargaining agreements. The current labor agreements are in effect through November 1, 2007.



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Wise Metals Group LLC and its subsidiaries are taxed as partnerships under Subchapter K of the Internal
Revenue Code. Therefore, the results of the Companys operations are included in the taxable income of the individual shareholders. As a result, no provision for federal income taxes has been included in the consolidated financial statements.

At a minimum, the Company intends to make cash distributions to its shareholders in the amount necessary for its shareholders to pay their
individual taxes associated with the Companys taxable income.

Restatement

As discussed at Note 2 to the consolidated financial statements, the Company restated its financial statements for the years ended December 31, 2006
and 2005 and the quarters ended March 31, 2007 and 2006, and June 30, 2007 and 2006 to:



| | 1. | Correct the presentation of the LIFO reserve as of December 31, 2006;
| | -- | ---------------------------------------------------------------------



| | 2. | Properly present its pension benefit obligation amounts as of December 31, 2006 in accordance with SFAS 87;
| | -- | -----------------------------------------------------------------------------------------------------------



| | 3. | Correct the presentation of Members Equity to comply with SFAS 130; and
| | -- | -----------------------------------------------------------------------



| | 4. | Correct the classification of shipping and handling fees in accordance with EITF 00-10.
| | -- | ---------------------------------------------------------------------------------------

Operating Results

Year ended December 31, 2006 compared to year ended December 31, 2005

Sales. Consolidated sales increased from $907.7 million in 2005 to $1,038.6 million in 2006, an increase of $130.9 million, or 14%. Total
volumes decreased from 765 million pounds in 2005 to 757 million pounds in 2006, a decrease of 8 million pounds, or 1%.

Wise Alloys sales increased from $829.6 million in 2005 to $903.3 million in 2006, an increase of 9% while shipments decreased from 661.3 million pounds in 2005 to 636.3 million pounds in 2006, a decrease of 4%. Contributing to
sales increases were continued higher commodity prices for aluminum which resulted in price increases for products including can sheet.

Wise Recycling sales to third parties increased from $75.7 million in 2005 to $134.2 million in 2006, an increase of 77% while shipments to third parties increased from 103.4 million pounds in 2005 to 121.0 million pounds in 2006,
an increase of 17%. The increased shipments at Recycling resulted from continued internal growth and expansion efforts within existing facilities to handle increased non-aluminum scrap such as copper and brass. Also contributing to sales increases
were continued higher commodity prices for aluminum and other scrap products which resulted in price increases for recycled products.

Cost of Sales. Consolidated cost of sales increased from $905.2 million in 2005 to $1,054.1 million in 2006 an increase of $149.0 million or 16%.

Wise Alloys cost of sales increased from $831.2 million in 2005 to $933.4 million in 2006, an increase of 12%. Metal costs, accounted for on the last-in-first-out (LIFO) basis and representing 68.9% and 75.1% of cost
of sales in 2005 and 2006, respectively, increased from $572.7 million in 2005 to $700.9 million in 2006, an increase of $128.2 million or 22%. Gross margin decreased from a deficit of ($11.0) million in 2005 to a deficit of ($63.6) million in 2006.
Contributing to this change is the 2006 impact of higher metal costs accounted for on LIFO. Metal prices in 2006 averaged approximately 33% higher than in 2005, while metal prices in 2005 averaged approximately 8% higher than in 2004. The increase
in metal prices resulted in a $23.6 million loss from the LIFO liquidation during 2006. The decrease in margin resulted from an approximate $42.2 million impact from metal price caps on can sheet which reduced the effective selling price of can
sheet and prevented a full pass-through of increased aluminum prices. Also contributing to the margin decrease was the increased prices paid for energy including natural gas. The price paid per mmBTU in 2005 was $8.98 versus an average price paid in
2006 of $9.69, an increase of 8% or approximately $.71 per mmBTU. Based on annual usage of approximately 4.4 million mmBTUs, this price increase contributed approximately $3.1 million to the decrease in margin in 2006. Also contributing to the
decrease were the effects of other input costs increases including coatings.



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Wise Recycling cost of sales associated with third party sales increased from $71.6 million in 2005 to
$119.5 million in 2006, an increase of 67%. The increase can be attributed to the increased volumes at Recycling as well as the higher commodity prices for aluminum and other scrap products including copper and brass which resulted in cost increases
for recycled products.

Selling, General and Administrative. Selling, general and administrative expenses increased from $10.7
million in 2005 to $11.6 million in 2006, an increase of $0.9 million or 8% due to an increase in personnel costs.

Interest Expense and
Fees. Interest expense, including regular amortization of deferred financing costs, increased from $25.1 million in 2005 to $32.7 million in 2006, an increase of $7.6 million, primarily as a result of higher outstanding borrowings due to higher
metal prices and higher interest rates on the variable rate revolving line of credit. Non-cash amortization of deferred financing costs included in interest expense and fees was $1.2 million in 2005 and $1.7 million in 2006, an increase of $0.5
million or 42%.

Mark-to-Market for Contracts under SFAS No. 133. This loss represents the non-cash loss we recognized pursuant
to SFAS No. 133. In 2006, we recognized an unrealized loss of ($24.1) million versus a gain of $11.7 million in 2005. The unrealized losses were as a result of forward contracts entered into to hedge the cost of natural gas and aluminum. The
fair value at December 31, 2006 for natural gas and aluminum derivatives were ($3.6) million and ($2.8) million, respectively.

Year ended December 31, 2005 compared to year ended December 31, 2004

Sales. Consolidated sales increased
from $792.4 million in 2004 to $907.7 million in 2005, an increase of $115.4 million, or 15%. Total volumes increased from 736 million pounds in 2004 to 765 million pounds in 2005, an increase of 29 million pounds, or 4%.

Wise Alloys sales increased from $734.5 million in 2004 to $829.6 million in 2005, an increase of 13% while shipments increased from
652.7 million pounds in 2004 to 661.3 million pounds in 2005, an increase of 1%. Contributing to sales increases were continued higher commodity prices for aluminum which resulted in price increases for products including can sheet.

Wise Recycling sales to third parties increased from $57.5 million in 2004 to $75.7 million in 2005, an increase of 32% while shipments to
third parties increased from 83.4 million pounds in 2004 to 103.4 million pounds in 2005, an increase of 24%. The increased shipments at Recycling resulted from continued internal growth and expansion efforts within existing facilities to
handle increased non-aluminum scrap such as copper and brass. Also contributing to sales increases were continued higher commodity prices for aluminum and other scrap products which resulted in price increases for recycled products.

Cost of Sales. Consolidated cost of sales increased from $796.0 million in 2004 to $905.2 million in 2005, an increase of $109.2 million or 14%.

Wise Alloys cost of sales increased from $743.2 million in 2004 to $831.2 million in 2005, an increase of 12%. Metal costs, accounted for
on the last-in-first-out (LIFO) basis and representing 70.2% and 68.9% of cost of sales in 2004 and 2005, respectively, increased from $521.4 million in 2004 to $572.7 million in 2005, an increase of $51.4 million or 10%. Gross margin improved from
a deficit of ($21.1) million in 2004 to a deficit of ($11.0) million in 2005. Contributing to this improvement is the 2004 impact of higher metal costs accounted for on LIFO. Metal prices in 2005 averaged approximately 8% higher than in 2004, while
metal prices in 2004 averaged approximately 23% higher than in 2003. The smaller increase in metal prices combined with an overall reduction in the days of inventory on-hand subject to LIFO, resulted in an $8.5 million gain from the LIFO
liquidation. The price paid per mmBTU in 2004 was $6.18 versus an average price paid in 2005 of $8.98, an increase of 45% or approximately $2.80 per mmBTU. Based on annual usage of approximately 4.4 million mmBTUs, this price increase resulted
in an approximately $12.3 million decrease in margin in 2005. Also reducing margin was an approximate $8.1 million impact from metal price caps on can sheet which reduced the effective selling price of can sheet



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and prevented a full pass-through of increased aluminum prices. Also offsetting the increase were the effects of other input costs increases including
coatings, the disruptive effects of both Hurricanes Katrina and Rita on production, as well as the adverse effects of the temporary curtailment of shipments to a major can sheet customer. During 2005 we announced price increases and our intentions
to eliminate the metal ceiling on can sheet contracts. In response to this announcement, one of our major can sheet customers withdrew their volume for the third quarter and later restored their shipments in the fourth quarter.

Wise Recycling cost of sales associated with third party sales increased from $53.3 million in 2004 to $71.6 million in 2005, an increase of 34%. The
increase can be attributed to the increased volumes at Recycling as well as the higher commodity prices for aluminum and other scrap products including copper and brass which resulted in cost increases for recycled products.

Selling, General and Administrative. Selling, general and administrative expenses decreased from $12.0 million in 2004 to $10.7 million in 2005, a
decrease of $1.3 million or 11%. Contributing to this decrease was an approximate $0.7 million in bank charges in 2004 for an accounts receivable asset sale transaction for which no similar transactions were completed in 2005.

Early Extinguishment of Debt. Effective May 5, 2004, we issued $150 million of 10.25% senior secured notes due 2012. Use of these proceeds
included an early extinguishment of the subordinated 15% notes for which a prepayment penalty of $3.5 million was paid and is included as other expense in the Companys 2004 consolidated statement of operations. As part of the refinancing,
approximately $4.0 million of deferred financing costs were written off through accelerated amortization of deferred financing fees and is also included as other expense. Accordingly, total early extinguishment of debt in 2004 was $7.5 million.

Interest Expense and Fees. Interest expense, including regular amortization of deferred financing costs, increased from $17.9
million in 2004 to $25.1 million, an increase of $7.2 million, primarily as a result of higher outstanding borrowings due to higher metal prices, higher interest rates on the variable rate revolving line of credit and as a result of issuing the $150
million of 10.25% senior secured notes which occurred on May 5, 2004. Non-cash amortization of deferred financing costs for the year ended December 31, 2005 and included in interest expense and fees was $1.2 million.

Mark-to-Market for Contracts under SFAS No. 133. This gain represents the non-cash gain we recognized pursuant to SFAS No. 133. The
unrealized gains were as a result of forward contracts entered into to hedge the cost of natural gas and aluminum. The fair value at December 31, 2005 for natural gas and aluminum derivatives were ($0.6) million and $16.4 million, respectively.
In 2005, we recognized an unrealized gain of $11.7 million versus a loss of $0.6 million in 2004.

Liquidity and Capital Resources

Our principal source of cash to fund liquidity needs is net cash provided by operating activities and availability under the revolving portion of our
senior secured facility. We anticipate that our primary liquidity needs will be for debt service, working capital, capital expenditures and distributions for tax purposes. Our debt service costs increased as a result of the offering of the senior
secured notes. We believe that cash generated from operations and available borrowings under our senior secured credit facility, as amended and restated, will be sufficient to enable us to meet our liquidity requirements in the foreseeable future.

Our principal sources of cash to fund liquidity needs are net cash provided by operating activities and availability under our revolving
senior secured credit facility described in Note 5 to our Combined Consolidated Financial Statements below. We anticipate that our primary liquidity needs will be for debt service, working capital (including potential increased margin deposits
associated with derivatives) and capital expenditures. Our debt service costs and working capital requirements have increased as a result of increased aluminum prices. We believe that cash generated from operations, available borrowings under our
senior revolving secured credit facility, including anticipated increases in borrowing base availability that would likely result as our accounts receivable and inventory values increase, and other indebtedness, such as the Master Equipment Lease
dated November 13, 2006 by and among Alloys, Wilmington Trust Company, The Employees Retirement System of Alabama and the Teachers Retirement System of Alabama executed in connection with the sale and concurrent financing of certain
property by Alloys and agreements that we enter from time to time pursuant to which we sell certain accounts receivable, will be sufficient to enable us to meet our liquidity requirements in the foreseeable future.



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Our liquidity has been directly impacted by aluminum prices which have increased steadily and
dramatically since 2002. Average aluminum prices in 2002 were 65.4 cents per pound and have risen over 40% to average 91.7 cents per pound for 2005. In 2006, aluminum prices had risen to average $1.22 per pound for the year and the monthly average
for December, 2006 was $1.31. These price increases have and are continuing to impact our working capital requirements resulting in higher outstanding debt supported by higher levels of receivables and inventory. Our net liquidity is determined
based on a standard borrowing base formula which accounts for the collateral value of inventory and receivables on a basis approximating the lower of current cost (on a FIFO basis) or fair market value. This borrowing base is then compared to the
outstanding loan balance including outstanding letters of credit to determine a net amount available for additional borrowings. Our liquidity could also be hampered if we incurred significant unexpected increases in necessary capital expenditures.
Significant increases in volumes could also impact our liquidity. See Item 1A, Risk Factors for certain circumstances that could adversely affect our liquidity. In particular, a default under our senior secured credit facility or
decreased sales or lower margins from our sales to Ball or Crown could have a material adverse effect on our liquidity. While the metal ceiling have materially impacted sales in 2004, 2005 and 2006, the Company expects to have no impact from metal
price ceilings in 2007.

As of December 31, 2006, the outstanding balance on our revolving line-of-credit was $177.2 million. In
addition, we had approximately $2.1 million of outstanding letters of credit against our $207.5 million revolving credit line. The termination date on the facility is May 5, 2009. The terms of the credit facility permit us to enter into various
forms of additional financing with varying amounts. Furthermore, we frequently offer cash discounts for early payment against receivables from our major can sheet customers which can also decrease outstanding debt and increase our overall liquidity.

Our total available credit under our revolving credit facility is $207.5 million which represents our primary source of liquidity for our
working capital needs. Our ability to borrow the full available amount of our credit facility is limited by the available borrowing base under the revolving credit facility as determined based on a borrowing base formula which relates to the
collateral value of trade receivables and inventory on a basis approximating the lower of current cost (on a first-in first-out or FIFO basis) or fair market value. This borrowing base is then compared to the outstanding loan balance (including
outstanding letters of credit) to determine a net amount available for additional borrowings (Availability).

This credit
facility requires also that we comply with either a minimum Adjusted EBITDA or an Adjusted Excess Availability calculation as defined by this agreement. These covenants are measured on a monthly basis.

As described in note 5 to our consolidated financial statements below, Adjusted EBITDA is earnings before interest, taxes, depreciation and amortization
adjusted for the effects of LIFO and SFAS No. 133 mark to market charge. Adjusted Excess Availability is determined as availability adjusted to remove any contractual sub-limits such as those for inventory or any limitations on the maximum
amount of the revolving credit facility.

This credit facility was amended on August 4, 2006 which, among other things, modified our
compliance requirements for our debt covenants. We were not required to comply with either the Adjusted EBITDA or Adjusted Excess Availability calculation until month ends beginning after July 31, 2006.

Subsequent to July 31, 2006 we were required to meet the minimum Adjusted EBITDA levels as noted within our credit agreement or the Adjusted Excess
Availability must be equal to or greater than $20,000,000 for each of the ten (10) consecutive days immediately preceding the last day of the month.

Effective December 31, 2006, the Company completed an amendment to this revolving credit facility. The amendment was to reset certain covenant levels based on the companys most recent financial projections
and results and as noted within our credit agreement. As of and subsequent to December 31, 2006, the Company must either meet the minimum Adjusted EBITDA levels as noted within our credit



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agreement or the Adjusted Excess Availability must be equal to or greater than $20,000,000 for each of the ten (10) consecutive days immediately
preceding the last day of the month. As of the December 31, 2006 the Company was in compliance with the debt covenants under this agreement, as amended.

If we do not comply with these or other covenants and restrictions contained in our senior secured credit facility, the indenture and other agreements governing our indebtedness, we could be in default under those
agreements, and the debt under those instruments, together with accrued interest, could then be declared immediately due and payable. If we default under our senior secured credit facility, the lenders could cause all of our outstanding debt
obligations under our senior secured credit facility to become due and payable, require us to apply all of our cash to repay the indebtedness or prevent us from making debt service payments on any other indebtedness we owe. In addition, any default
under our senior secured credit facility or agreements governing our other indebtedness could lead to an acceleration of debt under other debt instruments that contain cross-acceleration or cross-default provisions. If the indebtedness under our
senior secured credit facility and indenture is accelerated, we may have to seek other sources of financing or otherwise may not have sufficient assets to repay amounts due under our senior secured credit facility, our senior secured notes or under
other debt securities then outstanding. Our ability to comply with these provisions of our senior secured credit facility, the indenture and other agreements governing our other indebtedness may be affected by changes in the economic or business
conditions or other events beyond our control.

In 2006 the Company executed a sale financing agreement on certain pieces of production
equipment with The Employees Retirement System of Alabama in the amount of $29.9 million. The agreement executed on November 13, 2006 provided the Company with an initial funding of $14.95 million to be followed by an additional $14.95
million which became available on December 1, 2006 and the Company drew down on January 3, 2007. The agreement qualifies as a capital lease and has a three-year term with a fixed interest rate of 10.7%.

Should aluminum prices continue to rise, we expect that the collateral value of our working capital would continue to rise sufficiently to warrant
further increases to the senior secured credit facility should required borrowings and conditions dictate. As such, we believe our available sources of credit will be sufficient to meet our liquidity needs.

Year ended December 31, 2006 compared to year ended December 31, 2005

Operating Activities. During the year ended December 31, 2006, net cash used in operating activities was $47.2 million as compared to $21.6
million in 2005. Cash used in or provided by operating activities are subject to fluctuations in working capital requirements especially for accounts receivable and inventories. Accounts receivable increased from $73.3 million at December 31,
2005 to $104.1 million at December 31, 2006, an increase of $30.8 million. This increase is a result of timing and the rising price of metal. The payments by our customers are made at periodic times during the week and month, not everyday, nor
exactly in 30 days, so the balance in receivables can fluctuate significantly at the end of a quarter depending on the timing of receiving payments. The increase in working capital requirements affecting both accounts receivable and inventory were
also result of higher aluminum prices which increased an average of approximately 33% for the year.

Investing Activities. In 2006,
our capital expenditures were $10.6 million as compared to $14.5 million in 2005. These expenditures, which exclude recurring maintenance expenditures, are comprised of capital improvements principally related to machinery and equipment. The Company
has completed the next step in a program to further diversify industry product offerings by adding increased width to its aluminum can-stock capabilities. The results of this phase will extend the width of Wise Alloys can stock from 60 inches to 72
inches by the end of 2008. This project will allow Wise Alloys can-sheet product to become also available to beverage-can producers that use 14 and 15 out extended-width cupping presses in their manufacturing process.

Financing Activities. Net cash provided by financing activities was $53.6 million in 2006 compared with $34.9 million in 2005. Net cash
provided by financing activities was from increased borrowings under the senior secured credit facility as well as funds received under the sale financing agreement.



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Effective March 3, 2006, we amended and restated our revolving credit facility to increase the
revolver limit from $150 million to $180 million, subject to a borrowing base calculation and certain working capital eligibility requirements and limits. Proceeds from the revolver are used primarily to finance increased working capital
requirements due to higher shipment levels and increased metal prices. On June 12, 2006, we further amended and restated our revolving credit facility to increase the revolver limit from $180 million to $200 million. On August 4, 2006, we
further amended and restated our revolving credit facility to increase the revolver limit from $200 million to $207.5 million.

Year
ended December 31, 2005 compared to year ended December 31, 2004

Operating Activities. During the year ended
December 31, 2005, net cash used in operating activities was $21.6 million as compared to $33.8 million in 2004. Cash used in or provided by operating activities are subject to fluctuations in working capital requirements especially for
accounts receivable and inventories. Accounts receivable increased from $46.3 million at December 31, 2004 to $73.3 million at December 31, 2005, an increase of $27 million. This increase is a result of timing and the rising price of
metal. The payments by our customers are made at periodic times during the week and month, not everyday, nor exactly in 30 days, so the balance in receivables can fluctuate significantly at the end of a quarter depending on the timing of receiving
payments. In addition, in late 2005, a significant can sheet customer who had curtailed orders during the third quarter, increased its order rate significantly at the end of the year leading to a temporary increase in accounts receivable to that
customer and a corresponding decrease in inventory levels. The increase in working capital requirements affecting both accounts receivable and inventory were also result of higher aluminum prices which increased an average of approximately 8% for
the year.

Investing Activities. In 2005, our capital expenditures were $14.5 million as compared to $12.3 million in 2004. These
expenditures, which exclude recurring maintenance expenditures, are comprised of capital improvements principally related to machinery and equipment. We do not anticipate the need to make any major capital expenditures in the immediate future.

Financing Activities. Net cash provided by financing activities was $34.9 million in 2005 compared with $52.9 million in 2004. Net
cash provided by financing activities was from increased borrowings under the senior secured credit facility.

Effective October 31,
2005, we amended and restated our revolving credit facility to increase the revolver limit from $125 million to $150 million, subject to a borrowing base calculation and certain working capital eligibility requirements and limits. Proceeds from the
revolver are used primarily to finance increased working capital requirements due to higher shipment levels and increased metal prices.

We
do not enter into derivative contracts for speculative purposes.

Backlog of Customer Business

We maintain long-term supply agreements with our key customers in the aluminum can sheet market and we believe the general terms of our customer contracts
are standard for the industry. These contracts are supply arrangements whereby specific quantities and product pricing are negotiated and agreed to on an annual basis under the terms of the multi-year master supply agreement.

Under the terms of our customer contracts, we use an industry standard for pricing the metal component of all aluminum can sheet sold. Accordingly, at
any given point in time, we may have seven months of delivery priced under the master contract, the exact specifications and delivery locations to be determined as described below.

We receive orders from our customers which provide detailed specifications as to metal characteristics and specific plant location. Although all orders
are placed pursuant to the contract, quantities and specifications will vary by plant and more specifically by production line within the plant. These orders are generally provided with a two to three month lead time. The majority of all orders,
specifically can sheet orders, that are processed by Alloys are made pursuant to a specific customer order. Due to seasonal considerations, Alloys highest sales volumes generally occur during the first and second quarters.



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We earlier announced conversion price increases effective January 1, 2006, as well as our intent to
begin moving away from providing ceiling coverage, or price caps, on the metal transfer price offered to can sheet customers. For the second and third and fourth quarters of 2006 the metal transfer price was above the ceiling. Confidential
discussions are continuing with customers with regard to implementing these and other changes. These discussions resulted in contractual price increases that were effective January 1, April 1, and October 1, 2006, with new price
increases effective January 1, 2007. Other can sheet suppliers have also announced similar intentions and discussions.

During the
second quarter of 2006, Crown Cork and Seal (USA), Inc. notified us that it had arranged to cover its beverage can sheet volume requirements for the fourth quarter of 2006 and for calendar year 2007. In 2005, sales to Crown totaled approximately 20%
of our net sales of which beverage can sheet was a substantial portion. In 2006, sales to Crown totaled approximately 17% of our net sales of which beverage can sheet was a substantial portion. Crown has requested and we have provided assurances
that we will continue to supply our can sheet volume for food products. In connection with Crowns beverage can business, we filed a lawsuit against Crown and in connection with Crowns food can business; we are seeking declaratory
judgment to interpret certain pricing provisions. See Item 3, Legal Proceedings above.

Financing Arrangements

Effective May 5, 2004, we issued $150 million of 10.25% senior secured notes due 2012. In conjunction with issuing the notes, we, on the same date,
amended and restated our secured credit facility reducing the revolving line of credit from $130 million to $75 million which on November 10, 2004 was amended and restated to increase the revolving line of credit to $125 million. The revolving
line of credit was again increased on October 31, 2005, on March 3, 2006, on June 12, 2006, and on August 4, 2006 to $150 million, $180 million, $200 million and $207.5 million, respectively, as a means to fund higher working
capital requirements resulting from higher aluminum prices. The proceeds of the notes were used to primarily repay the $30 million term loan of which $20 million had been outstanding, to repay our subordinated 15% notes of $36 million and to
repurchase members equity of $14 million. The remaining proceeds were used to initially reduce the revolving line of credit and for working capital purposes.

The repayment of the subordinated 15% notes represented an early extinguishment for which a prepayment penalty of $3.5 million was paid and is included as other expense in the Companys second quarter
consolidated statement of operations for the year ended December 31, 2004. As part of the refinancing, approximately $4.0 million of deferred financing costs were written off through accelerated amortization of deferred financing fees and is
also included as other expense for the year ended December 31, 2004. Accordingly, total early extinguishment of debt in 2004 was approximately $7.5 million.

In 2004, total financing costs of approximately $8.2 million were incurred and were deducted from the $150 million gross proceeds of the sale of the 10.25% senior subordinated notes and are included on the balance
sheet as other long term assets.

As a result of amending and restating the secured credit facility in 2004, the interest rate on the
revolving line of credit was reduced from a variable rate of prime plus a range of 0.75% to 1.50% or LIBOR plus a range of 2.75% to 3.50% to a variable rate of prime plus a range of 0% to 0.50% or LIBOR plus a range of 2.25% to 2.75%.

Effective March 31, 2006 the Company executed an asset sale agreement with a financial institution that allows the Company to sell certain accounts
receivable up to $17 million on a non-recourse basis. This agreement was due to expire on December 31, 2006. On December 31, 2006 the agreement was renewed and extended to June 29, 2007, and allowed the Company to sell certain
accounts receivable up to $10 million on a non-recourse basis. The agreement was further amended on April 9, 2007 to increase the facility to a total of $20 million. Under the terms of the agreement, the Company agreed to sell on an ongoing
basis and without recourse, a designated customers accounts receivable. On December 31, 2006 there had been no sales under this agreement. Subsequent to December 31, 2006, the Company sold approximately $10 million of receivables
under this agreement.



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Quarterly Information

Our quarterly revenues tend to fluctuate period to period based in large part on changes in aluminum prices. Absent the effect of ceilings on metal transfer prices, these changes generally do not affect our cash flow
because we seek to match our hedging positions to our contractually-obligated sales agreements. The pass through of aluminum cost increases to customers is done through an indexed pricing mechanism, subject to an industry-wide ceiling, and/or by
fixing the cost of metal through forward contracts on the LME. Our net income may also fluctuate period to period because we may have non-cash unrealized gains or losses related to our aluminum and natural gas futures contracts.

Critical Accounting Policies

We have prepared our
financial statements in conformity with accounting principles generally accepted in the United States, and these statements necessarily include some amounts that are based on informed judgments and estimates of management. Our critical accounting
policies are summarized in Note 2 of the notes to our consolidated financial statements. As discussed below, our financial position or results of operations may be materially affected when reported under different conditions or when using different
assumptions in the application of such policies. In the event estimates or assumptions prove to be different from actual amounts, adjustments are made in subsequent periods to reflect more current information. We believe the following critical
accounting policies affect our more significant judgments and estimates used in the preparation of our financial statements.

Inventory
Valuation

Inventories are valued at lower of cost or market using the last-in, first-out (LIFO) method. We use the LIFO method since it
better matches current costs with current sales prices in our results of operations. Certain items in inventory may be considered impaired, obsolete or excess, and as such, we may establish an allowance to reduce the carrying value of these items to
their net realizable value. Based on certain assumptions and judgments made from the information available at that time, we determine the amounts in these inventory allowances. If these estimates and related assumptions or the market changes, we may
be required to record additional reserves.

Derivative Accounting

We have entered into long-term agreements to supply beverage can stock to our largest customers. To reduce the risk of changing prices for purchases and
sales of metal, including firm commitments under these supply agreements, as well as to manage volatile natural gas prices, we use commodity futures and option contracts.

Under SFAS No. 133, Accounting for Derivative Instruments and Hedging Activity, we are required to recognize all derivative instruments as either assets or liabilities on the balance sheet at fair value.
Derivatives that are not hedges must be adjusted to fair value through the statement of operations.

In determining the fair value of our
aluminum futures and options contracts, interest rate caps, and our natural gas caps and swaps, we use market quotes for contracts of similar maturities or management estimates in the absence of available market quotes. We adjust the market quotes
for our aluminum derivative instruments for premiums or discounts for various product grades, locations and the closing times for various terminal markets. Differences in actual market prices from those estimated may cause us to make adjustments in
future periods to reflect these differences.

Allowance for Doubtful Accounts

Our ability to collect outstanding receivables from our customers is critical to our operating performance and cash flows. Typically, our customer
agreements require monthly payments, mitigating the risk of non-collection. We record an allowance for uncollectible accounts based on our ongoing monitoring of our customers credit and on the aging of the receivables. If the financial
condition of our two largest



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customers, which accounted for 87% of our accounts receivable at December 31, 2006, were to deteriorate, resulting in an impairment of their ability to
make payments, the recorded allowance for doubtful accounts may not be sufficient.

Contractual Obligations and Other Commitments

The following tables summarize our material contractual obligations as of December 31, 2006.

Payments due by periodDecember 31, 2006

(in thousands)



|                                                                     |  |       |         |                 |   |          |  |          |        |                  |   |        |  |   |        
|-------------------------------------------------------------------- |  | ----- | ------- | --------------- | - | -------- |  | -------- | ------ | ---------------- | - | ------ |  | - | -------
|                                                                     |  | Total |         | Lessthan 1 year |   | 1-3Years |  | 3-5Years |        | More than5 Years
|Long-term debt and capital lease obligations(1)                      |  | $     | 167,613 |                 | $ | 1,759    |  | $        | 15,051 |                  | $ | 803    |  | $ | 150,000
|Purchase obligations(2)                                              |  |       | 67,035  |                 |   | 67,035   |  |          |       |                  |   |       |  |   |       
|Interest on fixed-rate debt instruments                              |  |       | 84,828  |                 |   | 15,497   |  |          | 30,797 |                  |   | 30,795 |  |   | 7,739  
|Operating leases                                                     |  |       | 11,971  |                 |   | 1,701    |  |          | 3,238  |                  |   | 2,939  |  |   | 4,093  
|Other long-term liabilities reflected on balance sheet under GAAP(3) |  |       | 1,877   |                 |   | 379      |  |          | 879    |                  |   | 539    |  |   | 80     
|                                                                     |  |       |         |                 |   |          |  |          |        |                  |   |        |  |   |        
|Total contractual obligations                                        |  | $     | 333,761 |                 | $ | 86,555   |  | $        | 50,173 |                  | $ | 35,116 |  | $ | 161,917
|                                                                     |  |       |         |                 |   |          |  |          |        |                  |   |        |  |   |        



|(1) | Long-term obligations include capital lease obligations resulting from the sale financing agreement executed in 2006 as discussed in Note 5, Financing Arrangements, in the Notes to
Consolidated Financial Statements.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(2) | Purchase obligations include an estimate for metal purchases based on price commitments.
|--- | ----------------------------------------------------------------------------------------

|(3) | Other long-term obligations include certain future payments related to employment contracts for certain of our current executives. See Item 11, Executive Compensation
 Employment Agreements.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Item 7A. | Quantitative and Qualitative Disclosures About Market Risk
|-------- | ----------------------------------------------------------

The Company is exposed to changes in interest rates as a result of our outstanding debt. A hypothetical 100 basis point increase (or decrease) in interest rates from December 31, 2006 levels would impact our interest expense by
approximately $1.4 million. Certain materials used in the manufacture of our products, most significantly natural gas and aluminum, are subject to price volatility. While future movements in prices of natural gas and aluminum are uncertain, the
Company enters into certain derivative contracts to mitigate the exposure to natural gas and aluminum prices. The Company has not designated these instruments as hedges under SFAS 133 and, accordingly, the mark-to-market impact of these derivatives
is recorded each period in current earnings. A hypothetical increase in aluminum prices only impacts the Company to the extent such increase was to exceed the metal price caps in our agreements with our customers since we pass the metal price along
to our customers. In 2006 we used approximately 4.2 million mmBTUs of natural gas. A hypothetical $1 increase (or decrease) per mmBTU would have impacted our cost of sales by a corresponding $4.4 million.



35



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|Item 8. | Financial Statements and Supplementary Data. (Restated)
|------- | -------------------------------------------------------

The following consolidated financial statements of the Company and its subsidiaries are included herein as indicated below:



|                                                                                                    |  |   
|--------------------------------------------------------------------------------------------------- |  | --
|Consolidated Financial Statements                                                                   |  |   
|Report of Independent Registered Public Accounting Firm on Consolidated Financial Statements.       |  | 37
|                                                                                                    | 
|Consolidated Balance SheetsDecember 31, 2006 and 2005.                                             |  | 38
|                                                                                                    | 
|Consolidated Statements of Operationsyears ended December 31, 2006, 2005, and 2004.                |  | 39
|                                                                                                    | 
|Consolidated Statements of Members Equity (Deficit)years ended December 31, 2006, 2005, and 2004. |  | 40
|                                                                                                    | 
|Consolidated Statements of Cash Flowsyears ended December 31, 2006, 2005, and 2004.                |  | 41
|                                                                                                    | 
|Notes to Consolidated Financial Statements.                                                         |  | 42



36



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##### Table of Contents

REPORT OF INDEPENDENT REGISTERED

PUBLIC ACCOUNTING FIRM ON CONSOLIDATED FINANCIAL STATEMENTS

Members

Wise Metals Group LLC

We have audited the accompanying consolidated balance sheets of Wise Metals Group LLC (the Company) as of December 31, 2006 and 2005, and the related consolidated
statements of operations, members equity and cash flows for each of the three years in the period ended December 31, 2006. Our audit also included the financial statement schedule listed in the index at item 15(a). These financial
statements and schedule are the responsibility of the Companys management. Our responsibility is to express an opinion on these financial statements and schedule based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. We were not engaged to perform an audit of the Companys internal control over financial reporting. Our audit included
consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Companys internal
control over financial reporting. Accordingly we express no such opinion. An audit also 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 our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the consolidated financial position of Wise Metals Group LLC at December 31, 2006 and 2005, and the
consolidated results of its operations and its cash flows for each of the three years in the period ended December 31, 2006, in conformity with U.S. generally accepted accounting principles. Also, in our opinion, the related financial statement
schedule, when considered in relation to the basic financial statements taken as a whole, presents fairly in all material respects the information set forth therein.

As more fully discussed in Note 2, the accompanying consolidated financial statements have been restated to correct errors in previously issued financial statements.

/s/ Ernst & Young LLP

Baltimore,
Maryland

April 10, 2007,

except for Notes 2, 3 and 11,
as to which the date is

February 29, 2008



37



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##### Table of Contents

Wise Metals Group LLC

Consolidated Balance Sheets



|                                                                                              |  |                |         |          |   |        
|--------------------------------------------------------------------------------------------- |  | -------------- | ------- | -------- | - | -------
|                                                                                              |  | December 31   
|                                                                                              |  | 2006           |         | 2005    
|                                                                                              |  | Restated       |         | Restated
|                                                                                              |  | (In Thousands)
|Assets                                                                                        |  |                |         |          |   |        
|Current assets:                                                                               |  |                |         |          |   |        
|Cash                                                                                          |  | $              | 2,280   |          | $ | 6,456  
|Broker deposits                                                                               |  |                | 7,889   |          |   | 250    
|Accounts receivable, less allowance for doubtful accounts ($1,129 in 2006 and $1,060 in 2005) |  |                | 104,096 |          |   | 73,326 
|Inventories                                                                                   |  |                | 116,902 |          |   | 142,151
|Fair value of contracts under SFAS 133                                                        |  |                | 3,897   |          |   | 20,183 
|Other current assets                                                                          |  |                | 5,933   |          |   | 4,379  
|                                                                                              |  |                |         |          |   |        
|Total current assets                                                                          |  |                | 240,997 |          |   | 246,745
|Non-current assets:                                                                           |  |                |         |          |   |        
|Property and equipment, net                                                                   |  |                | 84,589  |          |   | 86,557 
|Other assets                                                                                  |  |                | 8,724   |          |   | 8,492  
|Intangible assets                                                                             |  |                | 326     |          |   | 362    
|Goodwill                                                                                      |  |                | 283     |          |   | 283    
|                                                                                              |  |                |         |          |   |        
|Total non-current assets                                                                      |  |                | 93,922  |          |   | 95,694 
|                                                                                              |  |                |         |          |   |        
|Total assets                                                                                  |  | $              | 334,919 |          | $ | 342,439
|                                                                                              |  |                |         |          |   |        
|                                                                                              | 
|                                                                                              |  | December 31   
|                                                                                              |  | 2006           |         | 2005    
|                                                                                              |  | Restated       |         | Restated
|                                                                                              |  | (In Thousands)
|Liabilities and members deficit                                                              |  |                |         |          |   |        
|Current liabilities:                                                                          |  |                |         |          |   |        
|Accounts payable                                                                              |  | $              | 71,131  |          | $ | 54,493 
|Current portion of long-term debt and capital lease obligations                               |  |                | 1,759   |          |   | 1,477  
|Borrowings under revolving credit facility                                                    |  |                | 177,187 |          |   | 137,730
|Fair value of contracts under SFAS 133                                                        |  |                | 10,312  |          |   | 1,542  



|                                                                |  |   |          |   |  |   |         |  
|--------------------------------------------------------------- |  | - | -------- | - |  | - | ------- | -
|Accrued expenses, payroll and other                             |  |   | 14,526   |   |  |   | 16,705  |  
|                                                                |  |   |          |   |  |   |         |  
|Total current liabilities                                       |  |   | 274,915  |   |  |   | 211,947 |  
|Non-current liabilities:                                        |  |   |          |   |  |   |         |  
|Term loan and capital lease obligations, less current portion   |  |   | 15,854   |   |  |   | 826     |  
|Senior secured notes                                            |  |   | 150,000  |   |  |   | 150,000 |  
|Fair value of contracts under SFAS 133                          |  |   |         |   |  |   | 2,864   |  
|Accrued pension obligation                                      |  |   | 3,101    |   |  |   | 6,403   |  
|Other liabilities                                               |  |   | 12,485   |   |  |   | 7,529   |  
|                                                                |  |   |          |   |  |   |         |  
|Total non-current liabilities                                   |  |   | 181,440  |   |  |   | 167,622 |  
|Commitments and contingencies                                   |  |   |         |   |  |   |        |  
|Members deficit excluding accumulated other comprehensive loss |  |   | (119,145 | ) |  |   | (35,289 | )
|Accumulated other comprehensive deficit                         |  |   | (2,291   | ) |  |   | (1,841  | )
|                                                                |  |   |          |   |  |   |         |  
|Total members deficit                                          |  |   | (121,436 | ) |  |   | (37,130 | )
|                                                                |  |   |          |   |  |   |         |  
|Total liabilities and members deficit                          |  | $ | 334,919  |   |  | $ | 342,439 |  
|                                                                |  |   |          |   |  |   |         |  

See accompanying notes.



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Wise Metals Group LLC

Consolidated Statements of Operations



|                                                       |  |                         |           |   |          |   |         |          |  |   |         |  
|------------------------------------------------------ |  | ----------------------- | --------- | - | -------- | - | ------- | -------- |  | - | ------- | -
|                                                       |  | Years ended December 31 |          
|                                                       |  | 2006                    |           |   | 2005     |   |         | 2004     | 
|                                                       |  | Restated                |           |   | Restated |   |         | Restated | 
|                                                       |  | (In Thousands)          |          
|Sales                                                  |  | $                       | 1,038,641 |   |          | $ | 907,736 |          |  | $ | 792,357 |  
|Cost of sales (See Note 2  Inventories/ LIFO)         |  |                         | 1,054,135 |   |          |   | 905,182 |          |  |   | 796,007 |  
|                                                       |  |                         |           |   |          |   |         |          |  |   |         |  
|Gross margin (deficit)                                 |  |                         | (15,494   | ) |          |   | 2,554   |          |  |   | (3,650  | )
|Operating expenses:                                    |  |                         |           |   |          |   |         |          |  |   |         |  
|Selling, general and administrative                    |  |                         | 11,557    |   |          |   | 10,728  |          |  |   | 11,967  |  
|                                                       |  |                         |           |   |          |   |         |          |  |   |         |  
|Operating loss                                         |  |                         | (27,051   | ) |          |   | (8,174  | )        |  |   | (15,617 | )
|Other income (expense):                                |  |                         |           |   |          |   |         |          |  |   |         |  
|Early extinguishment of debt                           |  |                         |          |   |          |   |        |          |  |   | (7,455  | )
|Interest expense and fees, net                         |  |                         | (32,679   | ) |          |   | (25,110 | )        |  |   | (17,920 | )
|Mark-to-market adjustment for contracts under SFAS 133 |  |                         | (24,126   | ) |          |   | 11,666  |          |  |   | (550    | )
|                                                       |  |                         |           |   |          |   |         |          |  |   |         |  
|                                                       |  |                         | (56,805   | ) |          |   | (13,444 | )        |  |   | (25,925 | )
|                                                       |  |                         |           |   |          |   |         |          |  |   |         |  
|Net loss                                               |  | $                       | (83,856   | ) |          | $ | (21,618 | )        |  | $ | (41,542 | )
|                                                       |  |                         |           |   |          |   |         |          |  |   |         |  

See accompanying notes.



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##### Table of Contents

Wise Metals Group LLC

Consolidated Statements of Members Equity (Deficit)



|                                                |  |                         |         |   |                               |   |          |                                      |  |   |        |   |  |   |          |  
|----------------------------------------------- |  | ----------------------- | ------- | - | ----------------------------- | - | -------- | ------------------------------------ |  | - | ------ | - |  | - | -------- | -
|                                                |  | PreferredMembersEquity |         |   | CommonMembersEquity(Deficit) |   |          | AccumulatedOtherComprehensiveDeficit |  |   | Total  |  
|                                                |  | (In Thousands)          |        
|Balance at December 31, 2003                    |  |                         | 22,500  |   |                               |   | 20,390   |                                      |  |   |       |   |  |   | 42,890   |  
|Repurchase of preferred members equity         |  |                         | (9,000  | ) |                               |   |         |                                      |  |   |       |   |  |   | (9,000   | )
|Cancellation of liquidation preference          |  |                         | (13,500 | ) |                               |   | 13,500   |                                      |  |   |       |   |  |   |         |  
|Repurchase of common members equity            |  |                         |        |   |                               |   | (5,113   | )                                    |  |   |       |   |  |   | (5,113   | )
|2004 net loss                                   |  |                         |        |   |                               |   | (41,542  | )                                    |  |   |       |   |  |   | (41,542  | )
|                                                |  |                         |         |   |                               |   |          |                                      |  |   |        |   |  |   |          |  
|Balance at December 31, 2004                    |  |                         |        |   |                               |   | (12,765  | )                                    |  |   |       |   |  |   | (12,765  | )
|Minimum pension liability adjustment (Restated) |  |                         |        |   |                               |   |         |                                      |  |   | (1,841 | ) |  |   | (1,841   | )
|2005 net loss                                   |  |                         |        |   |                               |   | (21,618  | )                                    |  |   |       |   |  |   | (21,618  | )
|                                                |  |                         |         |   |                               |   |          |                                      |  |   |        |   |  |   |          |  
|Comprehensive loss                              |  |                         |        |   |                               |   |         |                                      |  |   |       |   |  |   | (23,459  | )
|                                                |  |                         |         |   |                               |   |          |                                      |  |   |        |   |  |   |          |  
|Repurchase of common members equity            |  |                         |        |   |                               |   | (906     | )                                    |  |   |       |   |  |   | (906     | )
|                                                |  |                         |         |   |                               |   |          |                                      |  |   |        |   |  |   |          |  
|Balance at December 31, 2005 (Restated)         |  | $                       |        |   |                               | $ | (35,289  | )                                    |  |   | (1,841 | ) |  |   | (37,130  | )
|Minimum pension liability adjustment (Restated) |  |                         |        |   |                               |   |         |                                      |  |   | (450   | ) |  |   | (450     | )
|2006 net loss                                   |  |                         |        |   |                               |   | (83,856  | )                                    |  |   |       |   |  |   | (83,856  | )
|                                                |  |                         |         |   |                               |   |          |                                      |  |   |        |   |  |   |          |  
|Comprehensive loss                              |  |                         |        |   |                               |   |         |                                      |  |   |       |   |  |   | (84,306  | )
|                                                |  |                         |         |   |                               |   |          |                                      |  |   |        |   |  |   |          |  
|Balance at December 31, 2006 (Restated)         |  | $                       |        |   |                               | $ | (119,145 | )                                    |  | $ | (2,291 | ) |  | $ | (121,436 | )
|                                                |  |                         |         |   |                               |   |          |                                      |  |   |        |   |  |   |          |  

See accompanying notes.



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##### Table of Contents

Wise Metals Group LLC

Consolidated Statements of Cash Flows



|                                                                            |  |                         |         |   |      |   |         |      |  |   |         |  
|--------------------------------------------------------------------------- |  | ----------------------- | ------- | - | ---- | - | ------- | ---- |  | - | ------- | -
|                                                                            |  | Years ended December 31 |        
|                                                                            |  | 2006                    |         |   | 2005 |   |         | 2004 | 
|                                                                            |  | Restated                |         |   |      |   |         |      | 
|                                                                            |  | (In Thousands)          |        
|Cash flows from operating activities                                        |  |                         |         |   |      |   |         |      |  |   |         |  
|Net loss                                                                    |  | $                       | (83,856 | ) |      | $ | (21,618 | )    |  | $ | (41,542 | )
|Adjustments to reconcile net loss to net cash used in operating activities: |  |                         |         |   |      |   |         |      |  |   |         |  
|Depreciation and amortization                                               |  |                         | 12,580  |   |      |   | 13,355  |      |  |   | 13,211  |  
|Amortization of deferred financing fees                                     |  |                         | 1,698   |   |      |   | 1,208   |      |  |   | 4,859   |  
|LIFO provision                                                              |  |                         | 23,577  |   |      |   | 2,318   |      |  |   | 35,156  |  
|Loss on extinguishment of debt                                              |  |                         |        |   |      |   |        |      |  |   | 7,455   |  
|Unrealized (gain) loss on contracts under SFAS 133                          |  |                         | 24,126  |   |      |   | (11,666 | )    |  |   | 550     |  
|Changes in operating assets and liabilities:                                |  |                         |         |   |      |   |         |      |  |   |         |  
|Broker deposits                                                             |  |                         | (7,639  | ) |      |   |        |      |  |   |        |  
|Accounts receivable, net                                                    |  |                         | (30,770 | ) |      |   | (26,990 | )    |  |   | (25,930 | )
|Inventories                                                                 |  |                         | 1,672   |   |      |   | 31,340  |      |  |   | (47,715 | )
|Other current assets                                                        |  |                         | (1,554  | ) |      |   | (1,889  | )    |  |   | 541     |  
|Accounts payable                                                            |  |                         | 16,638  |   |      |   | (3,362  | )    |  |   | 18,192  |  
|Advances to/from related parties                                            |  |                         |        |   |      |   |        |      |  |   |        |  
|Accrued expenses, payroll and other                                         |  |                         | (3,647  | ) |      |   | (4,255  | )    |  |   | 1,400   |  
|                                                                            |  |                         |         |   |      |   |         |      |  |   |         |  
|Net cash used in operating activities                                       |  |                         | (47,175 | ) |      |   | (21,559 | )    |  |   | (33,823 | )
|                                                                            |  |                         |        
|Cash flows from investing activities                                        |  |                         |         |   |      |   |         |      |  |   |         |  
|Purchase of equipment                                                       |  |                         | (10,612 | ) |      |   | (14,537 | )    |  |   | (12,329 | )
|                                                                            |  |                         |         |   |      |   |         |      |  |   |         |  
|Net cash used in investing activities                                       |  |                         | (10,612 | ) |      |   | (14,537 | )    |  |   | (12,329 | )
|                                                                            |  |                         |        
|Cash flows from financing activities                                        |  |                         |         |   |      |   |         |      |  |   |         |  
|Net issuance (repayments) of short-term borrowings                          |  |                         | 39,739  |   |      |   | 36,003  |      |  |   | (12,635 | )
|Proceeds of senior secured notes offering, net of fees paid                 |  |                         |        |   |      |   |        |      |  |   | 141,816 |  
|Repayment of term debt                                                      |  |                         |        |   |      |   |        |      |  |   | (22,500 | )
|Repayment of subordinated debt                                              |  |                         |        |   |      |   |        |      |  |   | (35,687 | )
|Prepayment fee on subordinated debt                                         |  |                         |        |   |      |   |        |      |  |   | (3,500  | )
|Payments of deferred financing costs to lending institutions                |  |                         | (1,156  | ) |      |   |        |      |  |   |        |  
|Proceeds from sale-financing transaction                                    |  |                         | 14,950  |   |      |   |        |      |  |   |        |  
|Proceeds from (payments on) long-term obligations                           |  |                         | 78      |   |      |   | (214    | )    |  |   | (463    | )
|Purchase of members equity                                                 |  |                         |        |   |      |   | (906    | )    |  |   | (14,113 | )
|                                                                            |  |                         |         |   |      |   |         |      |  |   |         |  
|Net cash provided by financing activities                                   |  |                         | 53,611  |   |      |   | 34,883  |      |  |   | 52,918  |  
|                                                                            |  |                         |         |   |      |   |         |      |  |   |         |  
|Net increase (decrease) in cash and cash equivalents                        |  |                         | (4,176  | ) |      |   | (1,213  | )    |  |   | 6,766   |  
|Cash and cash equivalents at beginning of year                              |  |                         | 6,456   |   |      |   | 7,669   |      |  |   | 903     |  
|                                                                            |  |                         |         |   |      |   |         |      |  |   |         |  
|Cash and cash equivalents at end of year                                    |  | $                       | 2,280   |   |      | $ | 6,456   |      |  | $ | 7,669   |  
|                                                                            |  |                         |         |   |      |   |         |      |  |   |         |  

See accompanying notes.



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##### Table of Contents

Wise Metals Group LLC

Notes to Consolidated Financial Statements

December 31, 2006

(Dollars
in Thousands)

1. Organization and Basis of Presentation

Wise Metals Group LLC is a holding company formed for the purpose of managing the operations of Wise Alloys LLC, Wise Recycling LLC and Listerhill Total Maintenance Company LLC (collectively, the Company). Wise Alloys
LLC (Alloys) manufactures and sells aluminum can stock and related aluminum products primarily to aluminum can producers. Prior to June 30, 2003, the Company held a 50% membership interest in Wise Recycling LLC (Recycling) through a joint
venture with Tomra North America, Inc. (TNA). Effective July 1, 2003, TNA conveyed its membership interest to Recycling, leaving the Company as the sole remaining member of Recycling. As a result, Recycling is now a wholly owned subsidiary,
engaged in the recycling and sale of scrap aluminum and other non-ferrous metals. Listerhill Total Maintenance Company LLC (TMC) specializes in providing maintenance, repairs and fabrication to manufacturing and industrial plants all over the world
ranging from small onsite repairs to complete turn-key maintenance.

The consolidated financial statements include the accounts of Wise Metals Group LLC
and its subsidiaries. Intercompany transactions have been eliminated in consolidation.

2. Restatement

The Company has restated its consolidated financial statements for the fiscal years ended December 31, 2004, 2005, and 2006 to correct certain errors in accounting
and financial reporting. The restated consolidated financial statements reflect adjustments required as a result of the following errors:

(1)Inventories were overstated by $3.7 million at December 31, 2006. The error resulted from a calculation error in computing the LIFO reserve.

(2) Balance sheet classifications related to pension plan amounts at December 31, 2006 and 2005 did not comply with certain provisions of Statement of Financial Accounting Standards No. 87 (SFAS 87),
Employers Accounting for Pensions. The pension intangible asset, benefit obligation and component of other comprehensive income were aggregated and incorrectly classified as a net liability within non-current other liabilities as
of December 31, 2006 and 2005. The Company has restated the December 31, 2006 and 2005 consolidated balance sheets to correctly classify the gross amounts of its pension components as an accrued pension obligation of $3.1 million and $6.4
million, an intangible asset of $326 thousand and $362 thousand and a component of accumulated other comprehensive loss of $2.3 million and $1.8 million, respectively.

(3) As a result of the pension classification errors discussed in (2), the Company did not disclose comprehensive loss and other comprehensive loss in accordance with Statement of Financial Accounting Standards
No. 130 (SFAS 130), Reporting Comprehensive Income. The Company has restated the 2006 and 2005 consolidated statements of members equity to report other comprehensive loss and comprehensive loss. The correction had
no impact on previously reported net loss.

(4) The Company improperly classified shipping and handling costs as reductions to revenue in the
consolidated statements of operations for each of the three years ended December 31, 2006. In accordance with EITF 00-10, the consolidated statements of operations have been restated to properly classify these costs as cost of sales.

The following tables set forth the effects of the restatement on each affected line item in the consolidated balance sheets at December 31, 2006 and
2005 and consolidated statements of operations and cash flows for each of the three years in the period ended December 31, 2006 (amounts in thousands):



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##### Table of Contents

Consolidated Balance Sheets



|                                                                   |  |                       |           |   |            |   |              |             |  |   |           |   |  |             
|------------------------------------------------------------------ |  | --------------------- | --------- | - | ---------- | - | ------------ | ----------- |  | - | --------- | - |  | ------------
|                                                                   |  | As PreviouslyReported |           |   | Adjustment |   |              | As Restated |  |   | Reference
|December 31, 2006                                                  |  |                       |           |   |            |   |              |             |  |   |           |   |  |             
|Inventories                                                        |  | $                     | 120,565   |   |            | $ | (3,663       | )           |  | $ | 116,902   |   |  | (1)         
|Total current assets                                               |  |                       | 244,660   |   |            |   | (3,663       | )           |  |   | 240,997   |   |  |             
|Intangible assets                                                  |  |                       |          |   |            |   | 326          |             |  |   | 326       |   |  | (2)         
|Total non-current assets                                           |  |                       | 93,596    |   |            |   | 326          |             |  |   | 93,922    |   |  |             
|Total assets                                                       |  |                       | 338,256   |   |            |   | (3,337       | )           |  |   | 334,919   |   |  |             
|                                                                   |  |                       |           |  
|Accrued pension obligation                                         |  |                       |          |   |            |   | 3,101        |             |  |   | 3,101     |   |  | (2)         
|Other liabilities                                                  |  |                       | 12,969    |   |            |   | (484         | )           |  |   | 12,485    |   |  | (2)         
|Total non-current liabilities                                      |  |                       | 178,823   |   |            |   | 2,617        |             |  |   | 181,440   |   |  |             
|Members deficit excluding accumulated other comprehensive deficit |  |                       | (115,482  | ) |            |   | (3,663       | )           |  |   | (119,145  | ) |  | (1)         
|Accumulated other comprehensive deficit                            |  |                       |          |   |            |   | (2,291       | )           |  |   | (2,291    | ) |  | (2)(3)      
|Total members deficit                                             |  |                       | (115,482  | ) |            |   | (5,954       | )           |  |   | (121,436  | ) |  |             
|Total liabilities and members deficit                             |  |                       | 338,256   |   |            |   | (3,337       | )           |  |   | 334,919   |   |  |             
|                                                                   |  |                       |           |  
|                                                                   |  | As PreviouslyReported |           |   | Adjustment |   |              | As Restated |  |   | Reference
|December 31, 2005                                                  |  |                       |           |   |            |   |              |             |  |   |           |   |  |             
|Intangible assets                                                  |  | $                     |          |   |            | $ | 362          |             |  | $ | 362       |   |  | (2)         
|Total non-current assets                                           |  |                       | 95,332    |   |            |   | 362          |             |  |   | 95,694    |   |  |             
|Total assets                                                       |  |                       | 342,077   |   |            |   | 362          |             |  |   | 342,439   |   |  |             
|                                                                   |  |                       |           |  
|Accrued pension obligation                                         |  |                       |          |   |            |   | 6,403        |             |  |   | 6,403     |   |  | (2)         
|Other liabilities                                                  |  |                       | 11,729    |   |            |   | (4,200       | )           |  |   | 7,529     |   |  | (2)         
|Total non-current liabilities                                      |  |                       | 165,419   |   |            |   | 2,203        |             |  |   | 167,622   |   |  |             
|                                                                   |  |                       |           |  
|Accumulated other comprehensive deficit                            |  |                       |          |   |            |   | (1,841       | )           |  |   | (1,841    | ) |  | (2)(3)      
|Total members deficit                                              |  |                       | (35,289   | ) |            |   | (1,841       | )           |  |   | (37,130   | ) |  |             
|Total liabilities and members deficit                             |  |                       | 342,077   |   |            |   | 362          |             |  |   | 342,439   |   |  |             
|                                                                   |  |                       |           |  
|Consolidated Statements of Operations                              |  |                       |           |   |            |   |              |             |  |   |           |   |  |             
|                                                                   |  |                       |           |  
|                                                                   |  | As PreviouslyReported |           |   | Adjustment |   |              | As Restated |  |   | Reference
|Year ended December 31, 2006                                       |  |                       |           |   |            |   |              |             |  |   |           |   |  |             
|Sales                                                              |  | $                     | 1,013,033 |   |            | $ | 25,608       |             |  | $ | 1,038,641 |   |  | (4)         
|Cost of sales                                                      |  |                       | 1,024,864 |   |            |   | 3,663 25,608 |             |  |   | 1,054,135 |   |  | (1, 3 and 4)
|Gross deficit                                                      |  |                       | (11,831   | ) |            |   | (3,663       | )           |  |   | (15,494   | ) |  | (1)         
|Operating loss                                                     |  |                       | (23,388   | ) |            |   | (3,663       | )           |  |   | (27,051   | ) |  | (1)         
|Net loss                                                           |  |                       | (80,193   | ) |            |   | (3,663       | )           |  |   | (83,856   | ) |  | (1)         
|Year ended December 31, 2005                                       |  |                       |           |   |            |   |              |             |  |   |           |   |  |             



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|                                      |  |                       |         |   |            |   |        |             |  |   |           |   |  |    
|------------------------------------- |  | --------------------- | ------- | - | ---------- | - | ------ | ----------- |  | - | --------- | - |  | ---
|Sales                                 |  |                       | 883,844 |   |            |   | 23,892 |             |  |   | 907,736   |   |  | (4)
|Cost of sales                         |  |                       | 881,290 |   |            |   | 23,892 |             |  |   | 905,182   |   |  | (4)
|                                      |  |                       |         |  
|Year ended December 31, 2004          |  |                       |         |   |            |   |        |             |  |   |           |   |  |    
|Sales                                 |  |                       | 766,868 |   |            |   | 25,489 |             |  |   | 792,357   |   |  | (4)
|Cost of sales                         |  |                       | 770,518 |   |            |   | 25,489 |             |  |   | 796,007   |   |  | (4)
|                                      |  |                       |         |  
|Consolidated Statement of Cash Flows  |  |                       |         |   |            |   |        |             |  |   |           |   |  |    
|                                      |  |                       |         |  
|                                      |  | As PreviouslyReported |         |   | Adjustment |   |        | As Restated |  |   | Reference
|Year ended December 31, 2006          |  |                       |         |   |            |   |        |             |  |   |           |   |  |    
|Cash flows from operating activities: |  |                       |         |   |            |   |        |             |  |   |           |   |  |    
|Net loss                              |  | $                     | (80,193 | ) |            | $ | (3,663 | )           |  | $ | (83,856   | ) |  | (1)
|LIFO provision                        |  |                       | 19,914  |   |            |   | 3,663  |             |  |   | 23,577    |   |  | (1)

3. Summary of Significant Accounting Policies

Use of Estimates

The preparation of financial statements in accordance with accounting principles generally accepted
in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.

Cash and Cash Equivalents

Cash and cash equivalents include all
highly liquid investments with a maturity date of three months or less when purchased.

Broker Deposits

Broker deposits generally consist of cash on deposit with brokers to support lines of credit associated with the Companys derivative and hedging activity. At
December 31, 2006 and December 31, 2005 substantially all broker deposits were on deposit with brokers associated with derivative and hedging activity as more fully described below.

Derivatives and Hedging Activity

The Company has entered into
long-term contracts to supply can stock to its largest customers (see Note 9). To reduce the risk of changing prices for purchases and sales of metal, including firm commitments under these supply contracts, the Company uses commodity futures and
option contracts. In addition, the Company holds natural gas futures.

Under Financial Accounting Standards Board (FASB) Statement No. 133,
Accounting for Derivative Instruments and Hedging Activities(SFAS 133), companies are required to recognize all derivative instruments as either assets or liabilities on the balance sheet at fair value. Derivatives that are not hedges must
be adjusted to fair value through mark-to-market adjustments included in the statement of operations. No derivatives were designated as hedges. In determining fair value, the Company uses market quotes for contracts of similar maturity or management
estimates in the absence of available market quotes.



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##### Table of Contents

A summary of the Companys derivative instruments and related activity at December 31, 2006, 2005 and 2004, and
for the years then ended is as follows:



|                                     |  |           |        |   |                      |   |         |           |  |   |                      |   |  |           |        |   |                      |   |       |   |  |   |        |  
|------------------------------------ |  | --------- | ------ | - | -------------------- | - | ------- | --------- |  | - | -------------------- | - |  | --------- | ------ | - | -------------------- | - | ----- | - |  | - | ------ | -
|                                     |  | 2006      |        |   | 2005                 |   |         | 2004      | 
|Description of Derivative Instrument |  | FairValue |        |   | UnrealizedGain(Loss) |   |         | FairValue |  |   | UnrealizedGain(Loss) |   |  | FairValue |        |   | UnrealizedGain(Loss) |  
|Aluminum futures and options         |  | $         | (2,837 | ) |                      | $ | (20,888 | )         |  | $ | 16,394               |   |  | $         | 11,693 |   |                      | $ | 4,745 |   |  | $ | 1,361  |  
|Interest rate caps                   |  |           |       |   |                      |   |        |           |  |   |                     |   |  |           |       |   |                      |   |      |   |  |   | (21    | )
|Natural gas caps and swaps           |  |           | (3,578 | ) |                      |   | (3,238  | )         |  |   | (617                 | ) |  |           | (27    | ) |                      |   | (755  | ) |  |   | (1,890 | )
|                                     |  |           |        |   |                      |   |         |           |  |   |                      |   |  |           |        |   |                      |   |       |   |  |   |        |  
|                                     |  | $         | (6,415 | ) |                      | $ | (24,126 | )         |  | $ | 15,777               |   |  | $         | 11,666 |   |                      | $ | 3,990 |   |  | $ | (550   | )
|                                     |  |           |        |   |                      |   |         |           |  |   |                      |   |  |           |        |   |                      |   |       |   |  |   |        |  

In connection with the Companys futures activity, the Company maintains lines of credit with brokers to
cover unrealized losses on futures contracts and uses options to manage price exposure with respect to firm commitments to purchase or sell aluminum. There were no deposits with brokers at December 31, 2004 and 2005. As of December 31,
2006, the Company had $7.6 million on deposit with brokers included on the balance sheet as broker deposits.

Accounts Receivable

The Companys accounts receivable consist of amounts due from customers throughout the United States, Canada, and Mexico. Collateral is generally not required.

The Company provides an allowance for doubtful accounts receivable by a charge to operations in amounts equal to the estimated losses expected to be
incurred in collection of the accounts. The estimated losses are based on historical collection experience and a review of the current status of the existing receivables. Customer accounts are written off against the allowance for doubtful accounts
when an account is determined to be uncollectible.

Concentration of Risk

The Company transacts a significant portion of its business, consisting of both sales and purchases of aluminum, with large aluminum producers in the United States. Such large aluminum producers number less than 10.
Management believes that the loss of any one of these large aluminum producers, whether as a customer or a vendor, would not have a significant long-term impact upon the Companys operations, in that another producer would absorb the business
that the Company transacts with any lost producer.

During the three years in the period ended December 31, 2006, the Company earned revenues from two
customers that individually exceeded 10% of all revenues. These customers also comprised a significant amount of accounts receivable at December 31 as follows:



|           |  |          |         |                    |   |          |  |                    |         |          |   |                    |  |   |         |  |   |       
|---------- |  | -------- | ------- | ------------------ | - | -------- |  | ------------------ | ------- | -------- | - | ------------------ |  | - | ------- |  | - | ------
|           |  | 2006     |         | 2005               |   | 2004    
|           |  | Revenues |         | AccountsReceivable |   | Revenues |  | AccountsReceivable |         | Revenues |   | AccountsReceivable
|Customer A |  | $        | 555,280 |                    | $ | 88,423   |  | $                  | 517,568 |          | $ | 34,147             |  | $ | 481,739 |  | $ | 20,860
|Customer B |  |          | 160,683 |                    |   | 2,910    |  |                    | 176,558 |          |   | 23,191             |  |   | 202,026 |  |   | 19,048

During the years ended December 31, 2006, 2005 and 2004, the Company purchased approximately 26%, 31%, and
27%, respectively, of its raw materials from two major suppliers.

The Company is exposed to credit loss in the event of nonperformance of counterparties
to open positions, commodity futures, and option contracts. This exposure is limited to those instances where the Company is in a net unrealized gain position. This credit risk is managed by entering into arrangements with counterparties meeting the
credit standards and by monitoring position limits.



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##### Table of Contents

Certain employees of the Company are covered under collective bargaining agreements. Union contracts covering all union
employees representing approximately 76% of all employees extend through November 1, 2007.

Inventories

Inventories consisted of the following:



|                                |  |             |         |   |      |   |         |  
|------------------------------- |  | ----------- | ------- | - | ---- | - | ------- | -
|                                |  | December 31 |        
|                                |  | 2006        |         |   | 2005 |  
|                                |  | Restated    |         |   |      |  
|Manufacturing inventories:      |  |             |         |   |      |   |         |  
|Raw materials                   |  | $           | 66,743  |   |      | $ | 50,040  |  
|Work in progress                |  |             | 65,832  |   |      |   | 64,941  |  
|Finished goods                  |  |             | 39,384  |   |      |   | 58,921  |  
|LIFO reserve                    |  |             | (73,117 | ) |      |   | (49,540 | )
|                                |  |             |         |   |      |   |         |  
|Total manufacturing inventories |  |             | 98,842  |   |      |   | 124,362 |  
|Supplies inventory              |  |             | 18,060  |   |      |   | 17,789  |  
|                                |  |             |         |   |      |   |         |  
|Total inventories               |  | $           | 116,902 |   |      | $ | 142,151 |  
|                                |  |             |         |   |      |   |         |  

The Company uses the last-in, first-out (LIFO) method of accounting for the manufacturing inventories for both
book and tax purposes. If the first-in, first-out (FIFO) method had been used at December 31, 2006, inventories would have been approximately $73,117 higher. During 2006, reductions in LIFO inventories resulted in liquidations of LIFO inventory
layers carried at lower costs prevailing in prior years as compared with costs of current year purchases.

Supplies inventory is valued on an average cost
basis. Inventories maintained by Recycling, totaling $6,789 and $6,602 at December 31, 2006 and 2005, respectively, and comprised solely of raw materials, are valued on a first-in, first-out (FIFO) basis.

Property and Equipment

Property and equipment are stated at cost.
Depreciation is computed using the straight-line method over the estimated useful lives of the respective assets (buildings40 years, machinery and equipment5 to 30 years, and furniture and fixtures5 to 10 years). Maintenance and
repair costs are charged to operations as incurred, major renewals and betterments are capitalized.

Deferred Financing Costs

The Company has approximately $7,240 and $7,772 of unamortized deferred financing costs at December 31, 2006 and 2005, respectively. These costs are being amortized
over the life of the related secured credit facilities (see Note 5) and are included in other non-current assets in the consolidated balance sheets. Accumulated amortization is approximately $3,614 and $1,916 at December 31, 2006 and 2005,
respectively.



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##### Table of Contents

Revenue Recognition

Sales revenue is recognized when products are shipped to customers, or upon transfer of title, if that occurs later.

Shipping and Handling
Costs

Shipping and handling costs incurred by the Company amounted to $25,608, $23,892 and $25,489 for the years ended December 31, 2006, 2005,
and 2004, respectively, and are recorded as a component of cost of sales in the consolidated statements of operations.

Stock-Based Compensation

The Company uses the fair value recognition provisions of FASB Statement No. 123R, Accounting for Stock-Based Compensation (SFAS 123R) to
account for equity-based compensation.

Income Taxes

Wise Metals Group LLC and subsidiaries are taxed as partnerships under Subchapter K of the Internal Revenue Code. Therefore, the results of the Companys operations are included in the taxable income of the individual shareholders. As
a result, no provision for federal income taxes has been included in the consolidated financial statements.

At a minimum, the Company intends to make cash
distributions to its shareholders in the amount necessary for its shareholders to pay their individual taxes associated with the Companys taxable income.

New Accounting Pronouncements

Effective January 1, 2006 the Company adopted financial accounting standard (SFAS) No. 123R,
Share Based Payments which requires an enterprise to expense share based payments based on fair value. The Company previously adopted the provisions of SFAS 123, Accounting For Stock Based Compensation which previously
required expensing fair value of awards. As such, the adoption of 123R did not have a material impact on the Companys financial position or results of operations.

In November 2004, the FASB issued SFAS No. 151, Inventory Costs. The Company was required to adopt the provisions of SFAS No. 151 on a prospective basis, as of January 1, 2006. SFAS
No. 151 clarifies the accounting for abnormal amounts of idle facility expense, freight, handling costs, and wasted material. SFAS No. 151 requires that those items  if abnormal  be recognized as expenses in the period
incurred. In addition, SFAS No. 151 requires the allocation of fixed production overheads to the costs of conversions based upon the normal capacity of the production facilities. The adoption of FAS 151 did not have a material impact on the
Companys financial position or results of operations.

In September 2006, the FASB issued SFAS No. 158, Employers Accounting for
Defined Benefit and Other Postretirement Plans, an amendment of FASB Statements No. 87, 106, and 132R, (SFAS 158). SFAS 158 requires companies to recognize a net liability or asset and an offsetting adjustment to
accumulated other comprehensive income to report the funded status of defined benefit pension and other postretirement benefit plans. In addition, SFAS 158 requires companies to measure plan assets and obligations at their year-end balance sheet
date. SFAS 158 requires prospective application. The recognition and disclosure requirements of SFAS 158 are effective for the Companys fiscal year ending December 31, 2007 because the Company is not considered a public entity
as defined in SFAS 158. The requirement under SFAS 158 to measure plan assets and obligations at the year-end balance sheet date will be effective for the Companys fiscal year ending December 31, 2008. Management does not expect that the
adoption of SFAS 158 will have a material impact on the Companys financial position or results of operations.



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##### Table of Contents

4. Property and Equipment

Major classes of property and equipment are:



|                                 |  |             |         |   |      |   |         |  
|-------------------------------- |  | ----------- | ------- | - | ---- | - | ------- | -
|                                 |  | December 31 |        
|                                 |  | 2006        |         |   | 2005 |  
|Land, buildings and improvements |  | $           | 12,129  |   |      | $ | 11,614  |  
|Machinery and equipment          |  |             | 129,352 |   |      |   | 120,759 |  
|Furniture, fixtures and other    |  |             | 3,205   |   |      |   | 3,610   |  
|Construction in progress         |  |             | 12,372  |   |      |   | 11,344  |  
|                                 |  |             |         |   |      |   |         |  
|                                 |  |             | 157,058 |   |      |   | 147,327 |  
|Accumulated depreciation         |  |             | (72,469 | ) |      |   | (60,770 | )
|                                 |  |             |         |   |      |   |         |  
|                                 |  | $           | 84,589  |   |      | $ | 86,557  |  
|                                 |  |             |         |   |      |   |         |  

As a result of the sale-financing transaction discussed in Note 5 , as of December 31, 2006 the company has
approximately $14.8 million in assets subject to a capital lease. Depreciation expense for the years ended December 31, 2006, 2005 and 2004 was $12,580, $13,355 and $13,211, respectively.

5. Financing Arrangements

Debt consists of the following at
December 31:



|                                                  |  |      |          |   |      |   |          |  
|------------------------------------------------- |  | ---- | -------- | - | ---- | - | -------- | -
|                                                  |  | 2006 |          |   | 2005 |  
|Revolving and secured credit facility             |  | $    | 177,187  |   |      | $ | 137,730  |  
|Senior secured 10.25% notes due 2012              |  |      | 150,000  |   |      |   | 150,000  |  
|Other notes payable and capital lease obligations |  |      | 17,613   |   |      |   | 2,303    |  
|                                                  |  |      |          |   |      |   |          |  
|                                                  |  |      | 344,800  |   |      |   | 290,033  |  
|Less current portion                              |  |      | (178,946 | ) |      |   | (139,207 | )
|                                                  |  |      |          |   |      |   |          |  
|                                                  |  | $    | 165,854  |   |      | $ | 150,826  |  
|                                                  |  |      |          |   |      |   |          |  

Effective May 5, 2004, the Company issued $150 million of 10.25% senior secured notes due 2012. In
conjunction with issuing the notes, the Company, on the same date, amended and restated its secured credit facility reducing the revolving line of credit from $130 million to $75 million which on November 10, 2004 was amended and restated to
increase the revolving line of credit to $125 million. The proceeds of the notes were used primarily to repay the secured term loan of which $20 million had been outstanding, to repay the subordinates notes outstanding of $36 million and to
repurchase members equity of $14 million.

Further use of proceeds included an early extinguishment of subordinated 15% notes for which a prepayment
penalty of $3,500 was paid and is included as other expense in the Companys consolidated statement of operations for the year ended December 31, 2004. As part of the refinancing, approximately $3,955 of then deferred financing costs were
written off through accelerated amortization of deferred financing fees and is also included as other expense. Accordingly, total early extinguishment of debt in 2004 was $7,455.



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##### Table of Contents

Total financing costs associated with the issuance of the $150 million 10.25% senior secured notes were $8,184 and are
included on the balance sheet as other long term assets.

As a result of amending and restating the secured credit facility, the interest rate on the
revolving line of credit was reduced from a variable rate of prime plus a range of .75% to 1.50% or LIBOR plus a range of 2.75% to 3.50% to a variable rate of prime plus a range of 0% to 0.50% or LIBOR plus a range of 2.25% to 2.75%.

The revolving line of credit was again increased on October 31, 2005 to $150 million, again increased on March 3, 2006 to $180 million, again increased on
June 12, 2006 to $200 million and again increased on August 4, 2006 to $207.5 million and expires on May 5, 2008.

Effective
December 31, 2006, the Company completed an amendment to its revolving credit facility. The amendment was to reset certain covenant levels based on the companys most recent financial projections and results and as noted within our credit
agreement. As of and subsequent to December 31, 2006, the Company must either meet the minimum Adjusted EBITDA levels as noted within our credit agreement or the Adjusted Excess Availability must be equal to or greater than $20 million for each
of the ten (10) consecutive days immediately preceding the last day of the month. As of the December 31, 2006 the Company was in compliance with the debt covenants under this agreement, as amended.

Other notes payable includes a note to the Tennessee Valley Authority that is payable in monthly installments of principal and interest (at the rate of 4.5% per
annum) through November 2010. Amounts outstanding as of December 31, 2006 and 2005 were $835 and $1,032, respectively. Other notes payable also include secured mortgage notes payable in the amount of $1,948 and $1,270 as of December 31,
2006 and 2005, respectively. In January, 2006 these mortgage notes were refinanced. One note was extended through January 1, 2007 and requires monthly interest only payments on a monthly variable rate of LIBOR plus 7%. The other mortgage note
was extended to February 1, 2007 and now requires payments to be made in monthly installments of principal plus interest at the rate of 8% per annum.

In 2006 the Company executed a sale financing agreement on certain pieces of production equipment with The Employees Retirement System of Alabama in the amount of $29.9 million. The agreement executed on November 13, 2006
provided the Company with an initial funding of $14.95 million to be followed by an additional $14.95 million which became available on December 1, 2006 and the Company drew down on January 3, 2007. The agreement qualifies as a capital
lease and has a three-year term with a fixed interest rate of 10.7%.

Effective March 31, 2006 the Company executed an asset sale agreement with a
financial institution that allows the Company to sell certain accounts receivable up to $17 million on a non-recourse basis. This agreement was due to expire on December 31, 2006. On December 31, 2006 the agreement was renewed and extended
to June 29, 2007, and allowed the Company to sell certain accounts receivable up to $10 million on a non-recourse basis. The agreement was further amended on April 9, 2007 to increase the facility to a total of $20 million. Under the terms
of the agreement, the Company agreed to sell on an ongoing basis and without recourse, a designated customers accounts receivable. On December 31, 2006 there had been no sales under this agreement. Subsequent to December 31, 2006,
the Company sold approximately $10 million of receivables under this agreement.

At December 31, 2006, the Company also has $2.1 million of
outstanding letter of credits with a financial institution. Substantially all the assets of the company are pledged as collateral for our financing arrangements.



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##### Table of Contents

Principal payments due on long-term debt outstanding for the years ending December 31 are as follows:



|           |  |   |        
|---------- |  | - | -------
|2007       |  | $ | 1,759  
|2008       |  |   | 3,211  
|2009       |  |   | 11,840 
|2010       |  |   | 245    
|2011       |  |   | 558    
|Thereafter |  |   | 150,000
|           |  |   |        
|           |  | $ | 167,613
|           |  |   |        

Interest paid during the years ended December 31, 2006, 2005 and 2004, was $30,981, $23,903 and $15,051,
respectively.

Included in the table above are principle payments relating to the Companys sale-financing facility. Payments due on the facility are
as follows:



|                       |  |   |        |  
|---------------------- |  | - | ------ | -
|2007                   |  | $ | 3,044  |  
|2008                   |  |   | 3,044  |  
|2009                   |  |   | 12,658 |  
|                       |  |   |        |  
|Total Payments         |  |   | 18,746 |  
|Less interest payments |  |   | (3,916 | )
|                       |  |   |        |  
|Principle Payments     |  | $ | 14,830 |  
|                       |  |   |        |  

6. Financial Instruments

The carrying amount of the Companys financial instruments, including cash and cash equivalents, broker deposits, accounts receivable, accounts payable, and certain other financial instruments approximates their
fair value at December 31, 2006 and 2005, respectively. The fair value of the Companys debt was approximately $310,180 and $263,023 at December 31, 2006 and 2005, respectively, based on the book value of the secured credit facility,
and the Companys estimate of fair value of the senior secured notes and the secured subordinated notes. The Company estimated the fair value of the senior secured notes based on surveyed market quotes for the notes and estimated the fair value
of the secured subordinated notes using a discounted cash flow analysis, using interest rates that the Company believes would be obtainable at that point in time.

The Company, as of December 31, 2006 and 2005, has net commodity futures contracts outstanding to sell 7,850 metric tons and purchase 24,450 metric tons, respectively, of aluminum through 2007. At December 31, 2006 and 2005, these
commodity futures had a fair value of $(2,850) and $16,427, respectively. At December 31, 2006, the Company had 4,000 metric tons of aluminum options with a fair value of $2,838. At December 31, 2005, the Company had no commodity options
outstanding.

As discussed in Note 3, the Company also has natural gas swaps at December 31, 2006 and 2005. The natural gas instruments cover the
Companys estimated natural gas production requirements for the first quarter of 2007 as well as a portion of the estimated production requirements for the remainder of 2007. See Note 3 for their fair values.

7. Benefit Plans

Effective April 1, 1999, the Company
established a defined benefit pension plan that covers essentially all union employees. The plan provides certain levels of benefits based on years of service and wage levels, but does not provide benefits for any prior service. In addition, defined
contribution plans for both union and nonunion employees were established.



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In 2003 the Company established negotiated defined contributions for certain union employees to multi-employer union
pension plans. This was done in exchange for freezing service time and pension factor in the aforementioned defined benefit plan as of the first quarter of 2004 and eliminating post-retirement benefits for affected employees.

The Company also established post-retirement benefit plans for all hourly and salaried employees effective April 1, 1999. The union employees who become eligible to
retire under the defined benefit plan, and are not a part of the unions that have elected the multi-employer option, will retain health benefits and certain other benefits for life. Salaried employees who retire after age 60 with a combined 10 years
service with Wise Alloys LLC and the previous owner of the Wise Alloys facilities will be eligible for medical benefits until age 65.

The Companys
funding policy for these plans is to contribute negotiated amounts to the multi-employer funds and amounts necessary to meet minimum funding requirements of the Employee Retirement Income Security Act for the defined benefit plans but not to exceed
the maximum deductible amount allowed by the Internal Revenue Code. The Company contributed $1,644 to the multi-employer plans during 2006. Contributions to the defined benefit plan are expected to be $2,710 during 2007.

The Company uses October 31 as the measurement date for all defined benefit plans. The following summarizes the significant information relating to these defined
benefit plans as of and for the years ended December 31, 2006, 2005 and 2004.



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|                                                                             |  |                 |        |   |                              |   |         |                 |  |   |                              |   |  |                 |        |   |                              |   |        |   |  |   |        |  
|---------------------------------------------------------------------------- |  | --------------- | ------ | - | ---------------------------- | - | ------- | --------------- |  | - | ---------------------------- | - |  | --------------- | ------ | - | ---------------------------- | - | ------ | - |  | - | ------ | -
|                                                                             |  | 2006            |        |   | 2005                         |   |         | 2004            | 
|                                                                             |  | PensionBenefits |        |   | OtherPost-RetirementBenefits |   |         | PensionBenefits |  |   | OtherPost-RetirementBenefits |   |  | PensionBenefits |        |   | OtherPost-RetirementBenefits |  
|Accumulated benefit obligation                                               |  | $               | 18,141 |   |                              |   | N/A     |                 |  | $ | 15,270                       |   |  |                 | N/A    |   |                              | $ | 12,473 |   |  |   | N/A    |  
|                                                                             |  |                 |        |   |                              |   |         |                 |  |   |                              |   |  |                 |        |   |                              |   |        |   |  |   |        |  
|Change in benefit obligation:                                                |  |                 |        |   |                              |   |         |                 |  |   |                              |   |  |                 |        |   |                              |   |        |   |  |   |        |  
|Benefit obligation, beginning of year                                        |  | $               | 15,270 |   |                              | $ | 7,347   |                 |  | $ | 12,473                       |   |  | $               | 7,404  |   |                              | $ | 10,194 |   |  | $ | 6,121  |  
|Service cost                                                                 |  |                 | 1,300  |   |                              |   | 1,540   |                 |  |   | 1,111                        |   |  |                 | 1,392  |   |                              |   | 1,067  |   |  |   | 1,478  |  
|Interest cost                                                                |  |                 | 948    |   |                              |   | 458     |                 |  |   | 774                          |   |  |                 | 461    |   |                              |   | 657    |   |  |   | 398    |  
|Actuarial (gain)/loss                                                        |  |                 | 968    |   |                              |   | (233    | )               |  |   | 1,135                        |   |  |                 | (1,881 | ) |                              |   | 737    |   |  |   | (593   | )
|Effect of curtailments                                                       |  |                 |       |   |                              |   |        |                 |  |   |                             |   |  |                 |       |   |                              |   |       |   |  |   |       |  
|Significant event                                                            |  |                 |       |   |                              |   |        |                 |  |   |                             |   |  |                 |       |   |                              |   |       |   |  |   |       |  
|Benefits paid                                                                |  |                 | (345   | ) |                              |   | (26     | )               |  |   | (223                         | ) |  |                 | (29    | ) |                              |   | (182   | ) |  |   |       |  
|                                                                             |  |                 |        |   |                              |   |         |                 |  |   |                              |   |  |                 |        |   |                              |   |        |   |  |   |        |  
|Benefit obligation, end of year                                              |  | $               | 18,141 |   |                              | $ | 9,086   |                 |  | $ | 15,270                       |   |  | $               | 7,347  |   |                              | $ | 12,473 |   |  | $ | 7,404  |  
|                                                                             |  |                 |        |   |                              |   |         |                 |  |   |                              |   |  |                 |        |   |                              |   |        |   |  |   |        |  
|Change in plan assets:                                                       |  |                 |        |   |                              |   |         |                 |  |   |                              |   |  |                 |        |   |                              |   |        |   |  |   |        |  
|Fair value of plan assets, beginning of year                                 |  | $               | 8,867  |   |                              | $ |        |                 |  | $ | 7,493                        |   |  | $               |       |   |                              | $ | 5,763  |   |  | $ |       |  
|Employer contributions                                                       |  |                 | 5,328  |   |                              |   | 26      |                 |  |   | 1,218                        |   |  |                 | 29     |   |                              |   | 1,756  |   |  |   |       |  
|Benefits paid                                                                |  |                 | (345   | ) |                              |   | (26     | )               |  |   | (223                         | ) |  |                 | (29    | ) |                              |   | (182   | ) |  |   |       |  
|Actual return on assets                                                      |  |                 | 1,190  |   |                              |   |        |                 |  |   | 379                          |   |  |                 |       |   |                              |   | 156    |   |  |   |       |  
|                                                                             |  |                 |        |   |                              |   |         |                 |  |   |                              |   |  |                 |        |   |                              |   |        |   |  |   |        |  
|Fair value of plan assets, end of year                                       |  | $               | 15,040 |   |                              | $ |        |                 |  | $ | 8,867                        |   |  | $               |       |   |                              | $ | 7,493  |   |  | $ |       |  
|                                                                             |  |                 |        |   |                              |   |         |                 |  |   |                              |   |  |                 |        |   |                              |   |        |   |  |   |        |  
|Reconciliation of funded status:                                             |  |                 |        |   |                              |   |         |                 |  |   |                              |   |  |                 |        |   |                              |   |        |   |  |   |        |  
|Funded status                                                                |  | $               | (3,101 | ) |                              | $ | (9,086  | )               |  | $ | (6,403                       | ) |  | $               | (7,347 | ) |                              | $ | (4,980 | ) |  | $ | (7,404 | )
|Unrecognized net (gain) loss                                                 |  |                 | 2,291  |   |                              |   | (2,760  | )               |  |   | 1,841                        |   |  |                 | (2,648 | ) |                              |   | 549    |   |  |   | (794   | )
|Unrecognized prior service cost                                              |  |                 | 326    |   |                              |   |        |                 |  |   | 362                          |   |  |                 |       |   |                              |   | 399    |   |  |   |       |  
|                                                                             |  |                 |        |   |                              |   |         |                 |  |   |                              |   |  |                 |        |   |                              |   |        |   |  |   |        |  
|Accrued benefit cost                                                         |  | $               | (484   | ) |                              | $ | (11,846 | )               |  | $ | (4,200                       | ) |  | $               | (9,995 | ) |                              | $ | (4,032 | ) |  | $ | (8,198 | )
|Components of net periodic benefit cost:                                     |  |                 |        |   |                              |   |         |                 |  |   |                              |   |  |                 |        |   |                              |   |        |   |  |   |        |  
|Service cost                                                                 |  | $               | 1,300  |   |                              | $ | 1,540   |                 |  | $ | 1,111                        |   |  | $               | 1,392  |   |                              | $ | 1,067  |   |  | $ | 1,478  |  
|Interest cost                                                                |  |                 | 948    |   |                              |   | 458     |                 |  |   | 774                          |   |  |                 | 461    |   |                              |   | 657    |   |  |   | 398    |  
|Expected return on plan assets                                               |  |                 | (699   | ) |                              |   |        |                 |  |   | (536                         | ) |  |                 |       |   |                              |   | (413   | ) |  |   |       |  
|Amortization of prior service cost                                           |  |                 | 36     |   |                              |   |        |                 |  |   | 36                           |   |  |                 |       |   |                              |   | 36     |   |  |   |       |  
|Net gain recognition                                                         |  |                 | 27     |   |                              |   | (122    | )               |  |   |                             |   |  |                 | (22    | ) |                              |   |       |   |  |   | (9     | )
|Curtailments                                                                 |  |                 |       |   |                              |   |        |                 |  |   |                             |   |  |                 |       |   |                              |   |       |   |  |   |       |  
|Special termination benefits                                                 |  |                 |       |   |                              |   |        |                 |  |   |                             |   |  |                 |       |   |                              |   |       |   |  |   |       |  
|Total benefit cost                                                           |  | $               | 1,612  |   |                              | $ | 1,876   |                 |  | $ | 1,385                        |   |  | $               | 1,831  |   |                              | $ | 1,347  |   |  | $ | 1,867  |  
|Weighted average assumptions used to determine net periodic costs per year : |  |                 |        |   |                              |   |         |                 |  |   |                              |   |  |                 |        |   |                              |   |        |   |  |   |        |  
|Discount rate                                                                |  |                 | 6.25   | % |                              |   | 6.25    | %               |  |   | 6.25                         | % |  |                 | 6.25   | % |                              |   | 6.25   | % |  |   | 6.25   | %
|Expected long-term return on assets                                          |  |                 | 7.00   | % |                              |   | N/A     |                 |  |   | 7.00                         | % |  |                 | N/A    |   |                              |   | 7.00   | % |  |   | N/A    |  



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The allocation, by category, of assets of our defined benefit pension plan at December 31, 2006 was as follows:



|                                             |  |     |  
|-------------------------------------------- |  | --- | -
|Asset category:                              |  |     |  
|Equity                                       |  | 61  | %
|Fixed income                                 |  | 38  | %
|Alternative investments (money market funds) |  | 1   | %
|                                             |  |     |  
|                                             |  | 100 | %

At our plan measurement date of December 31, 2006, our targeted allocation by category, of assets of our
defined benefit pension plan, is equity securities of 61%, and fixed income securities of 38%. Cash from money market funds is available for planned purchases of equity and fixed income securities to achieve targeted allocations.

The Company establishes its estimated long-term return on plan assets considering various factors, which include the targeted asset allocation percentages, historic
returns, and expected future returns. Specifically, the factors are considered in the fourth quarter of the year preceding the year for which those assumptions are applied.

The accumulated benefit obligation related to our defined benefit pension plan and information related to the funded status of our plan at the end of each year is as follows:



|                               |  |      |         |   |      |   |         |  
|------------------------------ |  | ---- | ------- | - | ---- | - | ------- | -
|                               |  | 2006 |         |   | 2005 |  
|Projected benefit obligation   |  | $    | (18,141 | ) |      | $ | (15,270 | )
|Accumulated benefit obligation |  |      | (18,141 | ) |      |   | (15,270 | )
|Fair value of plan assets      |  |      | 15,040  |   |      |   | 8,867   |  

The following table sets forth benefit payments, which reflect expected future service, as appropriate, expected
to be paid in the periods indicated.



|                  |  |             |       |                      |   |      
|----------------- |  | ----------- | ----- | -------------------- | - | -----
|                  |  | PensionPlan |       | Other PostRetirement
|2007              |  | $           | 345   |                      | $ | 47   
|2008              |  |             | 405   |                      |   | 92   
|2009              |  |             | 757   |                      |   | 133  
|2010              |  |             | 1,028 |                      |   | 155  
|2011              |  |             | 1,192 |                      |   | 248  
|2012 through 2016 |  |             | 8,017 |                      |   | 2,932

The pre-Medicare health care cost trend rate used to determine the post retirement benefit obligation was 11% for
2006. This rate decreases gradually to an ultimate rate of 5% in 2018, and remains at that level thereafter. The trend rate is a significant factor in determining the amounts reported. A one-percentage point change in these assumed health care costs
trend rates would have the following effect:



|                                                    |  |          |     |            |   |      |  
|--------------------------------------------------- |  | -------- | --- | ---------- | - | ---- | -
|                                                    |  | Increase |     | (Decrease) |  
|Effect on total service and interest cost component |  | $        | 236 |            | $ | (233 | )
|Effect on post retirement benefit obligation        |  |          | 758 |            |   | (750 | )



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In 2007, the Company expects to make cash contributions of approximately $2,710 to its defined benefit pension plan. The
amounts principally represent contributions required by funding regulations and in addition the Company expects to fund benefits paid under its post retirement benefit plans during 2007. No contributions to the post retirement benefits plan were
made in 2006.

The Company also maintains a defined contribution plan. The Company matches at a 50% rate the employees elected deferral up to the
first 6% of the withholding. Additionally, the Company makes an annual contribution based on a defined formula. Expenses for the defined contribution plan are recorded in the income statement as cost of goods sold and were $1,889, $1,835 and $1,851
for 2006, 2005 and 2004, respectively.

8. Preferred Members Interest

During 2004, the preferred members interest which had been granted by the Company in 2001 to Tomra North America, Inc. was repurchased for $9,000. The preferred members equity position carried a $22,500
liquidation preference upon dissolution of the Company as well as the right to a guaranteed payment of 8% of the initial preferred members account. As a result of the repurchase of this preferred members equity, the Company is no longer
obligated to make the guaranteed payment.

9. Commitments and Contingencies

The Company has entered into long-term supply contracts to supply a significant amount of aluminum can stock with certain customers, which represents more than 50% of the production capacity of Alloys. The price under
these supply agreements is based on the prior six-month average of a quoted exchange, is reset every six months and is typically subject to a metal price ceiling.

At December 31, 2006, the Company has entered into fixed priced sales commitments of approximately 22 million pounds. Additionally, the Company entered into fixed price commitments to purchase raw material inventory of
approximately 136 million pounds. The Company uses inventory, commodity futures and option contracts to reduce the risk of changing prices for purchases and sale of metal.

The Company is a defendant in an action brought by Merrill Lynch, Pierce, Fenner & Smith Incorporated pending in the New York Supreme Court, County of New York. In this action, Merrill Lynch seeks $932 for
out-of-pocket costs and expenses allegedly incurred pursuant to a letter agreement between Wise Metals and Merrill Lynch dated January 31, 2002, in which Merrill Lynch alleges that Wise Metals agreed to reimburse Merrill Lynch for such costs
and expenses. Wise Metals has hired counsel and is vigorously contesting this lawsuit and believes it has meritorious defenses. Wise Metals has filed an answer to the complaint denying the material allegations and alleging several affirmative
defenses and counterclaims which exceed in amount the sum sought by Merrill Lynch. Merrill Lynch moved to dismiss the Wise Metals counterclaims and by an order dated December 30, 2004, the Court granted this motion, dismissed the
counterclaims and permitted Wise Metals to replead two of the counterclaims. Wise Metals appealed, which resulted in a reversal reinstating the dismissed counterclaims. Merrill Lynch has replied to the counterclaims. The action is proceeding and is
presently in the discovery stages. The Company believes that it is not currently possible to estimate the ultimate outcome of this litigation. As a result, no expense for any potential adverse outcome of this matter has been recorded in the
consolidated financial statements.

The Company is a defendant in an action brought by a former executive seeking compensatory damages pending in Delaware
State Court. The plaintiff alleged that a deal had been negotiated whereby in exchange



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for $2 million the plaintiff would surrender his equity interest in the Company, forgo any claim for a $1 million severance that plaintiff alleges would
otherwise come due on his 62nd birthday (payable in $50 thousand quarterly installments) and provide the Company with a general release of any existing or potential claims. The Company has accrued a $1 million reserve in connection with this
litigation. The Company has hired counsel, is vigorously contesting this lawsuit and believes it has meritorious defenses. In addition, this plaintiff sought to enforce an alleged settlement contract with the Company in Alabama State Court. The
Company filed for summary judgment on all claims related to this alleged settlement and on February 12, 2007, the Court granted the motion in full and dismissed all claims with prejudice. Appeal is permitted until April 23, 2007.

The Company is a party to certain claims and litigation associated with employment related matters for which management believes that the ultimate
resolution will not have a material adverse impact on the Companys financial position.

Our operating expenditures relating to environmental
requirements in 2006 were approximately $3.1 million and are expected to be similar in 2007 and 2008. Future environmental regulations, including those under the Clean Air Act and Clean Water Act, or more aggressive enforcement of existing
regulations, may result in stricter compliance requirements for us and for the aluminum industry in general.

In connection with our acquisition of the
Listerhill facility in 1999, a consultant performed a soil and groundwater investigation (Phase II Report) to identify any environmental issues at the various plants that comprise the Listerhill facility. That Phase II Report identified
certain on-site environmental areas of concern that may potentially require investigation or remediation and provided a then-present value estimate of approximately $18 million to address them. Pursuant to the Listerhill facility purchase agreement,
the prior owner of the Listerhill facility, Reynolds, now Alcoa, is required to perform the work necessary and to indemnify us against the environmental matters required by applicable law to be addressed that are identified in the Phase II Report
and any other such environmental liabilities attributable to Reynolds that were identified on or before March 31, 2004 subject to certain limitations. Alcoa disagrees with the cost estimates contained in the Phase II Report and has stated that
it estimates that the environmental issues identified in the Phase II Report will cost less than $18 million to remediate. Although Alcoa has conducted some on-site environmental investigations and sampling and has submitted reports to the Alabama
Department of Environmental Management (ADEM) regarding most of the on-site areas of concern, it has not yet commenced cleanup activities with respect to many of the areas of concern.

We are also party to an Environmental Cooperation Agreement, or ECA, with Alcoa, which is Reynolds successor. The ECA addresses, among other things, the use of a surface water ditch system by both us and Alcoa,
the use of process water retention ponds on Alcoas property and certain surface drainage easements across our property. The ECA expires in December 2009, with automatic two year renewal periods unless either party elects to terminate, in which
event the ECA will terminate one year following such election. Under the ECA, each party defends and indemnifies the other against claims arising from its own violations of any applicable environmental laws, its handling, use, or disposal of
hazardous materials at the Listerhill facility, a breach of any warranties, representations or covenants in the agreement, or damage or loss to property and injury to or death of any persons.

In November 2006 the Company received notice from the Environmental Protection Agency (EPA) regarding certain violations of the Clean Air
Act. The Company disputes some of the alleged violations and has initiated actions to come into compliance with the relevant requirements. The EPA has indicated its intent to resolve the violations through a judicial consent-decree, including the
payment of civil penalties by the Company. Discussions with the EPA are ongoing. The ultimate outcome cannot be reasonably estimated at this time and thus no expense has been recorded in the Companys consolidated financial statements.

10. Quarterly Information (Unaudited)

As discussed in Note 2 to the consolidated financial statements in Form 10-K/A for the year ended December 31, 2006, the Company restated its financial statements for the years ended December 31, 2006 and December 31, 2005
to:



| | 1. | Correct the presentation of the LIFO reserve as of December 31, 2006;
| | -- | ---------------------------------------------------------------------



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| | 2. | Properly present its pension benefit obligation amounts as of December 31, 2006 in accordance with SFAS 87;
| | -- | -----------------------------------------------------------------------------------------------------------



| | 3. | Correct the presentation of Members Equity to comply with SFAS 130; and
| | -- | -----------------------------------------------------------------------



| | 4. | Correct the classification of shipping and handling fees in accordance with EITF 00-10.
| | -- | ---------------------------------------------------------------------------------------



|                             |  |              |         |   |               |   |         |              |  |   |               |   |  |   |         |  
|---------------------------- |  | ------------ | ------- | - | ------------- | - | ------- | ------------ |  | - | ------------- | - |  | - | ------- | -
|                             |  | FirstQuarter |         |   | SecondQuarter |   |         | ThirdQuarter |  |   | FourthQuarter |  
|                             |  | Restated     |         |   | Restated      |   |         | Restated     |  |   | Restated      |  
|Year Ended December 31, 2006 |  |              |         |   |               |   |         |              |  |   |               |   |  |   |         |  
|                             |  |              |         |  
|Net sales                    |  | $            | 221,818 |   |               | $ | 290,035 |              |  | $ | 279,297       |   |  | $ | 247,491 |  
|                             |  |              |         |  
|Gross margin (deficit)       |  |              | 8,882   |   |               |   | (1,654  | )            |  |   | (21,319       | ) |  |   | (1,403  | )
|                             |  |              |         |  
|Net (loss) income            |  |              | 3,502   |   |               |   | (16,460 | )            |  |   | (53,929       | ) |  |   | (16,969 | )
|                             |  |              |         |  
|Year Ended December 31, 2005 |  |              |         |   |               |   |         |              |  |   |               |   |  |   |         |  
|                             |  |              |         |  
|Net sales                    |  | $            | 227,155 |   |               | $ | 237,210 |              |  | $ | 208,852       |   |  | $ | 234,519 |  
|                             |  |              |         |  
|Gross margin (deficit)       |  |              | 6,100   |   |               |   | 9,939   |              |  |   | (1,644        | ) |  |   | (11,841 | )
|                             |  |              |         |  
|Net (loss) income            |  |              | (6,234  | ) |               |   | 5,491   |              |  |   | (10,465       | ) |  |   | (10,410 | )
|                             |  |              |         |  
|Year Ended December 31, 2004 |  |              |         |   |               |   |         |              |  |   |               |   |  |   |         |  
|                             |  |              |         |  
|Net sales                    |  | $            | 202,625 |   |               | $ | 203,913 |              |  | $ | 199,606       |   |  | $ | 186,213 |  
|                             |  |              |         |  
|Gross margin (deficit)       |  |              | (1,989  | ) |               |   | 9,840   |              |  |   | 6,592         |   |  |   | (18,093 | )
|                             |  |              |         |  
|Net (loss) income            |  |              | (6,444  | ) |               |   | (10,653 | )            |  |   | 794           |   |  |   | (25,239 | )

11. Business Segment Information

A reportable segment is a component of an enterprise in which the operating results are regularly reviewed by the enterprises chief operating decision maker to make decisions about resources to be allocated to
the segment and assess its performance, and for which discrete financial information is available. We have two reportable segments under Statement of Financial Accounting Standards (SFAS) No. 131: Wise Alloys Alloys and Wise
Recycling Recycling.

Wise Alloys: Alloys principally manufactures and sells aluminum can sheet to aluminum can producers and also serves the
transportation, building, and construction markets. Beverage can stock is aluminum sheet specifically designed and engineered for use in the production of aluminum beverage cans and represents our primary product. Can stock customers include Ball
Corporation, Crown Holdings, Inc. and Rexam PLC, the three largest beverage can manufacturers in the world. In addition, Alloys produces food can stock and semi-fabricated aluminum sheet for building and construction, transportation and other
markets.

Wise Recycling: Recycling is engaged in the recycling and sale of scrap aluminum and other non-ferrous metals for use by Alloys as well as
for sale to third parties. Recycling provides the Company with an effective, profitable infrastructure to obtain a portion of Alloys scrap requirements. Recycling has



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developed a collection process that utilizes both direct acquisitions from scrap dealers and industrial accounts, as well as off-the-street
acquisitions from the actual consumer. Furthermore, Recycling collects other forms of non-ferrous scrap, primarily non-UBC aluminum, copper and brass, for sale in the merchant market. The Company is currently expanding the business of Recycling to
include warehousing operations in order to provide regional shipping centers for our scrap collection and to enhance our ability to provide a vendor managed inventory program for Alloys customers.

Substantially all of our revenues and assets are attributed to or are located in the United States. The Company evaluates segment performance based on profit or loss
from operations before corporate general and administrative expenses, LIFO adjustments, and mark-to-market adjustments for derivative contracts under SFAS 133. The accounting policies of the segments are the same as those described in the
significant accounting policies.

We have concluded that TMC is not a reportable segment because it is not significant to our consolidated operations and
represents less than 10% of our revenues in each of the past three years ended December 31, 2006, 2005 and 2004. Financial information about TMC is included in the Other caption in the tables below.

As described in Note 3, we earned revenues from two customers that individually exceeded 10% of consolidated revenues. The revenue generated from sales to these
customers is included in the Alloys section of the table below.

The following table sets forth information on the Companys reportable segments:



|              |  |                         |           |          |   |          |  |   |        
|------------- |  | ----------------------- | --------- | -------- | - | -------- |  | - | -------
|              |  | Year Ended December 31,
|              |  | 2006                    |           | 2005     |   | 2004    
|              |  | Restated                |           | Restated |   | Restated
|Net Sales     |  |                         |           |          |   |          |  |   |        
|              |  |                         |          
|Alloys        |  | $                       | 903,290   |          | $ | 829,592  |  | $ | 734,532
|              |  |                         |          
|Recycling (1) |  |                         | 134,241   |          |   | 75,692   |  |   | 57,481 
|              |  |                         |          
|Other         |  |                         | 1,110     |          |   | 2,452    |  |   | 344    
|              |  |                         |           |          |   |          |  |   |        
|              |  |                         |          
|Net sales     |  | $                       | 1,038,641 |          | $ | 907,736  |  | $ | 792,357
|              |  |                         |           |          |   |          |  |   |        



|                                                        |  |   |         |   |  |   |         |   |  |   |         |  
|------------------------------------------------------- |  | - | ------- | - |  | - | ------- | - |  | - | ------- | -
|Segment (loss) profit                                   |  |   |         |   |  |   |         |   |  |   |         |  
|                                                        |  |   |        
|Alloys                                                  |  | $ | (40,599 | ) |  | $ | (9,144  | ) |  | $ | 13,568  |  
|                                                        |  |   |        
|Recycling (1)                                           |  |   | 13,230  |   |  |   | 2,729   |   |  |   | 3,009   |  
|                                                        |  |   |         |   |  |   |         |   |  |   |         |  
|                                                        |  |   |        
|Segment (loss) profit                                   |  |   | (27,369 | ) |  |   | (6,415  | ) |  |   | 16,577  |  
|                                                        |  |   |        
|LIFO adjustment                                         |  |   | (23,577 | ) |  |   | (2,318  | ) |  |   | (35,156 | )
|                                                        |  |   |        
|Mark-to-market adjustments for contracts under SFAS 133 |  |   | (24,126 | ) |  |   | 11,666  |   |  |   | (550    | )
|                                                        |  |   |        
|Corporate and other undistributed expenses, net         |  |   | (8,784  | ) |  |   | (24,551 | ) |  |   | (22,413 | )
|                                                        |  |   |         |   |  |   |         |   |  |   |         |  
|                                                        |  |   |        
|Net loss                                                |  | $ | (83,856 | ) |  | $ | (21,618 | ) |  | $ | (41,542 | )
|                                                        |  |   |         |   |  |   |         |   |  |   |         |  



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|(1): | The Company has eliminated all intercompany sales and cost of sales associated with transfers of recycled aluminum from Recycling to Alloys. Recycling transfers aluminum to Alloys
at market value and recognizes profit only when the sale to the end consumer is completed. During each of the periods presented, Recycling transferred aluminum to Alloys in the amount of $82,288, $40,511 and $30,559 for each year ended
December 31, 2006, 2005 and 2004, respectively.
|---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|                                    |  |                    |         |          |   |          |  |   |        
|----------------------------------- |  | ------------------ | ------- | -------- | - | -------- |  | - | -------
|                                    |  | As of December 31,
|                                    |  | 2006               |         | 2005     |   | 2004    
|                                    |  | Restated           |         | Restated |   | Restated
|Total Assets                        |  |                    |         |          |   |          |  |   |        
|Alloys                              |  | $                  | 294,417 |          | $ | 307,611  |  | $ | 310,831
|Recycling                           |  |                    | 31,409  |          |   | 13,040   |  |   | 8,754  
|Corporate and other                 |  |                    | 9,093   |          |   | 21,788   |  |   | 14,885 
|                                    |  |                    |         |          |   |          |  |   |        
|Total assets                        |  | $                  | 334,919 |          | $ | 342,439  |  | $ | 334,470
|                                    |  |                    |         |          |   |          |  |   |        
|                                    | 
|                                    |  | As of December 31,
|                                    |  | 2006               |         | 2005     |   | 2004    
|Depreciation and Amortization       |  |                    |         |          |   |          |  |   |        
|Alloys                              |  | $                  | 11,814  |          | $ | 12,529   |  | $ | 12,395 
|Recycling                           |  |                    | 640     |          |   | 609      |  |   | 492    
|Corporate and other                 |  |                    | 126     |          |   | 217      |  |   | 324    
|                                    |  |                    |         |          |   |          |  |   |        
|Total depreciation and amortization |  | $                  | 12,580  |          | $ | 13,355   |  | $ | 13,211 
|                                    |  |                    |         |          |   |          |  |   |        
|                                    | 
|                                    |  | As of December 31,
|                                    |  | 2006               |         | 2005     |   | 2004    
|Capital Expenditures                |  |                    |         |          |   |          |  |   |        
|Alloys                              |  | $                  | 9,635   |          | $ | 13,985   |  | $ | 11,659 
|Recycling                           |  |                    | 977     |          |   | 552      |  |   | 670    
|                                    |  |                    |         |          |   |          |  |   |        
|Total capital expenditures          |  | $                  | 10,612  |          | $ | 14,537   |  | $ | 12,329 
|                                    |  |                    |         |          |   |          |  |   |        



|Item 9. | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.
|------- | -------------------------------------------------------------------------------------

None.



|Item 9A. | Disclosure Controls and Procedures (Restated)
|-------- | ---------------------------------------------

(a)
Disclosure Controls and Procedures



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As stated in Note 2 to the consolidated financial statements in Form 10-K/A for the year ended
December 31, 2006 , we have restated our financial statements for the years ended December 31, 2006, 2005 and 2004 and related disclosures.

As of December 31, 2006, our management, including our Chief Executive Officer (CEO) and Chief Financial Officer (CFO), has conducted an evaluation of the effectiveness of our disclosure controls and procedures
(as defined in Securities Exchange Act Rule 13a-15(e), as amended). Based on the evaluation, our CEO and CFO concluded that our disclosure controls and procedures as of December 31, 2006 were not effective because of a material weakness in
internal control over financial reporting described below. The CEO and CFOs original conclusions regarding the effectiveness of their disclosure controls and procedures as well as the identification of a material weakness in those controls and
procedures was not affected by this restatement.

(b) Managements Annual Report on Internal Control over Financial Reporting

Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined
in Rule 13a-15(f) under the Securities Exchange Act of 1934, as amended. Under the supervision of management and with the participation of our management, including our principal executive officer and principal financial officer, we conducted an
evaluation of the effectiveness of our internal control over financial reporting as of December 31, 2006. In making this evaluation, we used the criteria set forth by the Commission of Sponsoring Organizations of the Treadway Commission (COSO)
in Internal ControlIntegrated Framework. Based on our evaluation of internal control over financial reporting, management identified the following material weakness as of December 31, 2006:

The Company has not maintained sufficient staff with appropriate training in US GAAP and SEC financial rules and regulations. These deficiencies
result in the potential of material misstatements and/or inadequate disclosures in the Companys financial statements.

As a result of
the material weakness described above, management concluded that internal control over financial reporting was not effective as of December 31, 2006, based on the criteria identified above. Managements original conclusions regarding the
effectiveness of internal control over financial reporting as well as the identification of a material weakness in internal control over financial reporting was not affected by this restatement.

(c) Remediation Activities

The Company has
evaluated its resource requirements to ensure the timely and effective review and management of its reporting process. The Company has formed a Finance Committee consisting of various financial and accounting personnel to regularly review the
effectiveness of internal controls over financial reporting and is evaluating staffing requirements to ensure the preparation of financial statements in accordance with GAAP. It has also added and is continuing to add additional financial staff, and
has reviewed and updated scheduling and planning protocols in place to ensure continued timely compliance with SEC reporting deadlines. The formation of a Finance Committee, the addition of financial staff and the updating of protocols will ensure
that misstatements similar to those addressed by this restatement will not occur in the future.

(d) Changes in Internal Control Over
Financial Reporting

There was no change in the Companys internal control over financial reporting that occurred during the fourth
fiscal quarter ended December 31, 2006, nor as a result of this restatement, that has materially affected, or is reasonably likely to materially affect, the Companys internal control over financial reporting.



|Item 9B. | Other.
|-------- | ------

None.



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Part III



|Item 10. | Directors, Executive Officers and Corporate Governance.
|-------- | -------------------------------------------------------

The following table sets forth the managers, executive officers and key employees of Wise Group and Wise Alloys and their ages as of January 1, 2007:



|                   |  |     |  |                                                             
|------------------ |  | --- |  | ------------------------------------------------------------
|Name               |  | Age |  | Position(s)                                                 
|David F. DAddario |  | 44  |  | Chief Executive Officer, Chairman and Manager, Wise Group   
|John J. Cameron    |  | 70  |  | Vice Chairman, Manager                                      
|Danny Mendelson    |  | 54  |  | Executive Vice President, Chief Strategic Officer, Secretary
|Gerald M. David    |  | 68  |  | Manager, Wise Group                                         
|Gregory Garvey     |  | 51  |  | Manager, Wise Group                                         
|Don Farrington     |  | 58  |  | Senior Vice President, Sales                                
|Sam Glasscock      |  | 58  |  | Executive Vice President /Financial Operations              
|Phillip Tays       |  | 61  |  | Executive Vice President, Manufacturing                     
|Michael Patterson  |  | 56  |  | Senior Vice President, Strategic Planning                   
|Kenneth Stastny    |  | 38  |  | Chief Financial Officer                                     
|Richard Weaver     |  | 64  |  | Executive Vice President, Development and Risk Management   
|Robert David       |  | 64  |  | Vice President, National Accounts                           

David F. DAddariohas served as Wise Groups Chairman since October 2001 and its
Chief Executive Officer since February 2004 and has served as a Manager since January 1999. Mr. DAddario also served as President and Chief Executive Officer of DAddario Industries, a private company. From 1986 to 2001 served for
and was a founder of Neroc, Inc., the predecessor of Tomra of North America, Inc. Mr. DAddario holds a B.A. degree from Yale University.

John J. Cameron was named Vice Chairman in March 2004. He has served as a Manager since 1999. He served as Wise Groups Chief Executive Officer from October 2000 until March 2004 and was President of Wise Alloys from 2000 to
2004. Mr. Cameron served as the Chief Executive Officer of Wise Groups predecessor, Wise Metals Co., Inc., from 1991 to 1999. From 1984 to 1991, Mr. Cameron operated his own business, Arcadia, Inc., an aluminum engineering firm,
which he sold in 1991. From 1978 to 1984, Mr. Cameron held various management operating positions at Howmet Corp., serving as Senior Vice President of Operations from 1982 to 1984 and as a director from 1982 to 1983. Mr. Cameron holds a
B.S. degree from Fordham University.

Danny Mendelson was named Executive Vice President and Chief Strategic Officer in June 2006
after having served as Wise Groups Chief Financial Officer since April 1999. Prior to joining Wise Group, Mr. Mendelson was a partner in the Baltimore, Maryland office of Ernst & Young LLP from 1984 to 1999, serving as the
director of its tax practice from 1987 to 1997. Mr. Mendelson is a certified public accountant and an attorney. He holds a B.B.A. degree from the University of Michigan, a J.D. from Detroit College of Law and an L.L.M. from Georgetown
University.

Gerald M. Davidhas served as a Manager since January 1999. Mr. David served as Chairman from 1999 to September
2001. Mr. David served as President and CEO of Wise Metals Co. from 1987 to 1999. Gerald David is the brother of Robert David, Vice President, National Accounts. Mr. David has a bachelors degree in business from the University of
Maryland.



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Gregory Garvey has served as a Manager since January 1999. Prior to joining Wise Group,
Mr. Garvey worked for Tomra of North America, Inc. where he served as Vice Chairman and Executive Vice President, Business Development, from 1994 to 2002. Mr. Garvey holds a Financial Accounting degree from the University of New Haven.

Don Farringtonassumed the position of Senior Vice President, Sales, in February 2004. He hasserved as Vice President of
Sales and Marketing for Wise Alloys since February 2001 and as Sales Manager from May 1999 to February 2001. From August 1998 to May 1999, Mr. Farrington served as General Manager of Aluminum of Nittetsu Shoji America, Inc. From 1991 to 1998,
Mr. Farrington was Vice President of Sales and Marketing for Ravenswood Aluminum. From 1976 to 1990, Mr. Farrington held sales and marketing positions with Kaiser Aluminum. He holds a B.A. degree from the University of Kansas.

Sam Glasscockwas named Executive Vice President/Financial Operations in June 2006 after having served as Senior Vice President and Controller
since 1999. He has 31 years of aluminum industry experience in various positions in accounting, finance, manufacturing and transportation. He has a B.S. degree in industrial management and accounting from Auburn University and a MBA from the
University of North Alabama.

Phillip Tays serves as Executive Vice President, Manufacturing. He joined Wise Alloys when the
Listerhill Facility was purchased from Reynolds Metal Company in 1999. He has 33 years of manufacturing, casting and maintenance management experience in Reynolds Metals Company Reclamation plants in Alabama, Virginia and Brazil. Mr. Tays
earned a business administration degree from Athens State University.

Michael Pattersonwas named Senior Vice President, Strategic
Planning in February 2004. He began working at the Reynolds Metal Companys alloys plant in 1977. He has a bachelors of science degree in mechanical engineering from the University of Alabama. His career includes experience in
engineering, production and maintenance management. Prior to working for Reynolds, he worked for Exxon Mobil Corporation at their Baton Rouge refinery.

Kenneth Stastnywas named Chief Financial Officer in June 2006. He joined the Company in 1998 as Controller of Wise Recycling. He served as Assistant Treasurer of the Company from 1999 until February 2004 when
he assumed the position of Treasurer. Prior to joining the Company, he served as audit manager at Ernst & Young LLP. He has 15 years of experience in financial services and risk management. He holds a bachelors degree of business
administration in both accounting and finance from Loyola College of Baltimore, Maryland.

Richard Weaver serves as Executive Vice
President, Development and Risk Management. He joined the Company in 1982 and held various trading and executive management positions. He served as President of Wise Recycling from its inception to mid-2000. Prior to joining the Company,
Mr. Weaver was employed by Revere Copper and Brass in sales and marketing positions for both primary and semi-fabricated products. Mr. Weaver has a bachelors degree in Government from Hamilton College.

Robert David joined the Company in 1979 and currently serves as Vice President, National Accounts. He has been a director for the Institute of
Scrap Recycling Industries, previously holding the position of Chairman of the non-ferrous division. Previously, Mr. David worked as a stock and commodity broker for Bach & Co., Shearson Hayden Stone, and is a former member of the
Chicago Board of Trade.

Management Board

Pursuant to Wise Groups operating agreement, Silver Knot, LLC has the right to appoint five members to Wise Groups management board, one of whom is to be a designee of Wise Metals Co. Inc., reasonably acceptable to Silver Knot,
LLC. Gerald David currently serves as Wise Metals Co.s designee. David DAddario, our Chairman, controls Silver Knot, LLC and appoints its designees.

The day-to-day operations of Wise Group are carried out by its executive officers who serve at the discretion of its management board. Certain major decisions require the consent of the management board.



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The Wise Group operating agreement provides that no officer may, without the prior approval of the
management board, (i) enter into or modify any affiliated transactions or any transactions the length of which exceeds six months and the value of which exceeds $100,000, (ii) lend money, incur indebtedness, dispose of assets, or incur
expenditures, each in excess of $100,000 for any one transaction, (iii) make distributions or accept capital contributions, (iv) acquire or dispose of any securities, (v) amend the operating agreement, (vi) approve a merger or
consolidation with another person or a sale of substantially all of Wise Groups assets, (vii) remove or replace or adjust the compensation of any officers, (viii) reorganize Wise Group, (ix) invest surplus funds,
(x) materially change Wise Groups accounting principles, (xi) purchase or sell any real property, (xii) enter into any legal proceeding on behalf of Wise Group, or (xiii) take any action specifically reserved for the
management board under the operating agreement.

Except where the Wise Group operating agreement states otherwise, all decisions of the
Wise Group management board require a majority vote of the Wise Group management board.

Manager Compensation

Messrs. DAddario, Cameron, Garvey and David currently comprise the Wise Group management board. David DAddario is paid $162,500 annually for his service on
the Wise Group management board in addition to his salary of $1,062,000 and benefits he receives as an employee of Wise Group. John Cameron is not separately compensated for his service as a member of the Wise Group management board and is solely
compensated pursuant to his employment agreement described below. Gregory Garvey is paid $162,500 annually for his service on the Wise Group management board. Gerald David is not separately compensated for his service on the Wise Group management
board and is solely compensated pursuant to his employment agreement described below.

Committees

Gregory Garvey is Chairman and sole member of the Companys Audit Committee, reporting to the management board. Mr. Garvey is a financial expert
as such term is defined by the Securities and Exchange Commission and also serves on the management board.

Code of Ethics

We do not have a formal code of ethics for management, nor is there any requirement that we have one under the law or the requirements of any securities
exchange on which our debt securities are listed. Because we have no publicly traded equity securities (substantially all of which are held by the managers or senior executives) and because the management group is extremely small and works closely
with the board of managers, the board of managers has concluded that a formal policy would be less effective than the less formal regular interaction between senior management and the board of managers.



|Item 11. | Executive Compensation
|-------- | ----------------------

Compensation Discussion &
Analysis

An executive compensation committee comprised of the Companys chairman and executive vice president/chief strategic
officer administers our executive compensation program. This committee, reporting to the management board, oversees our compensation and benefit plans, reviews compensation levels and makes all compensation decisions relating to Wises
executive officers, including the grant of any incentive compensation. Compensation for Mr. DAddario who serves as the Companys Chief Executive Officer, is subject to limitations as prescribed in the Wise Groups operating
agreement. Compensation levels and goals and objectives are reviewed and approved annually. Significant goals and related achievements affecting executive compensation included progress made to realign customer contracts to more appropriately
reflect changing market conditions. Other achievements centered around managing company performance and obtaining adequate financing for the Company.

The Wise executive compensation committee and management board believe that compensation levels and benefit plans should be such that the Company is able to attract and retain highly qualified management employees and
motivate those employees by tying executive compensation to Company performance. Wise compensates its executives through a combination of salary, bonus, equity incentive and benefit plan compensation.



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Salary: Each executive officer is paid an annual cash salary that is consistent with the salary paid to
similarly positioned executive officers at comparable companies. The Company examines external market data provided by various salary surveys for companies of similar size and structure that operate in similar industries. Wise pays its executives a
salary to ensure that each executive officer receives some compensation that is not tied to the risk inherent in pay for performance compensation, which ensures we are able to attract and retain highly qualified executive officers.

Bonus: Wises executive compensation committee and management board has discretion to award cash bonuses to its executive officers. The
amounts of such awards are determined after reviewing each executive officers individual performance and contribution to the achievement of Company goals and objectives. Bonus compensation is designed to align the interests of the
Companys executive officers with the Companys goal of improved performance.

Equity Incentives: Wises executive
compensation committee and management board has discretion to award equity incentives to its executive officers. The amount of such award is determined after reviewing each executive officers role in achieving future goals of the company
in light of individual performance and contribution to the achievement of Company past goals and objectives. Equity incentive compensation is designed to align the interests of the Companys executive officers with the Companys strategic
initiatives.

Benefit Plans: Each executive officer is entitled to compensation in the form of various benefit plans that is consistent
with benefits offered to similarly positioned executive officers at comparable companies. The Company examines external market data provided by various benefit surveys for companies of similar size and structure that operate in similar industries.
Wise compensates its executives with benefits to ensure that each executive officer receives some compensation that is not tied to the risk inherent in pay for performance compensation, which ensures we are able to attract and retain highly
qualified executive officers.

Compensation is paid by Wise Group in respect of Wise Groups executive officers and allocated to Wise
Alloys based on each such persons duties on behalf of Wise Alloys. The following table sets forth the cash and non-cash compensation paid or incurred on Wise Groups behalf to its Chief Executive Officer, Chief Financial Officer and each
of the three other most highly compensated employee executive officers, as well as compensation paid to Gregory Garvey and Gerald David for whom disclosure would have been required to be provided if such persons were serving as executive officers of
the Company in 2006, each of whom made more than $100,000 in 2006:



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Summary Compensation Table



|                                                                |  |                                |  |                          |                 |         |                                         |   |                                   |                             |  |     |  |   |                 |        
|--------------------------------------------------------------- |  | ------------------------------ |  | ------------------------ | --------------- | ------- | --------------------------------------- | - | --------------------------------- | --------------------------- |  | --- |  | - | --------------- | -------
|                                                                |  | AnnualCompensation200620052004 |  | AnnualSalary200620052004 |                 |         | Long-TermCompensationAwards200620052004 |   | All otherCompensation200620052004 |                            
|Name and Principal Position                                     |  | TotalCompensation              |  | Salary                   |                 |         | Bonus                                   |   |                                   | SecuritiesUnderlyingOptions | 
|David DAddario                                                 |  | 1,224,500                      |  | $                        | 1,224,500       | (1)     |                                         | $ | 0                                 |                             |  |    |  | $ | 0               |        
|Chief Executive Officer, Chairman and Manager                   |  | 682,500 1,047,500              |  |                          | 682,500 682,500 | (1) (1) |                                         |   | 0 365,000                         |                             |  |   |  |   | 0 0             |        
|                                                                |  |                                |  |                          |                
|Kenneth Stastny                                                 |  | 130,000                        |  | $                        | 130,000         |         |                                         | $ | 0                                 |                             |  |    |  | $ | 0               |        
|Chief Financial Officer                                         |  | 125,000 110,000                |  |                          | 125,000 110,000 |         |                                         |   | 0 0                               |                             |  |   |  |   | 0 0             |        
|                                                                |  |                                |  |                          |                
|John J. Cameron                                                 |  | 378,000                        |  | $                        | 78,000          |         |                                         | $ | 0                                 |                             |  |    |  | $ | 300,000         | (2)    
|Vice Chairman and Manager                                       |  | 435,000 635,000                |  |                          | 135,000 335,000 |         |                                         |   | 0 0                               |                             |  |   |  |   | 300,000 300,000 | (2) (2)
|                                                                |  |                                |  |                          |                
|Danny Mendelson                                                 |  | 249,000                        |  | $                        | 249,000         |         |                                         | $ | 0                                 |                             |  |    |  | $ | 0               |        
|Executive Vice President, Chief Strategic Officer and Secretary |  | 240,000 490,000                |  |                          | 240,000 240,000 |         |                                         |   | 0 250,000                         |                             |  |   |  |   | 0 0             |        
|                                                                |  |                                |  |                          |                
|Richard Weaver                                                  |  | 245,000                        |  | $                        | 245,000         |         |                                         | $ | 0                                 |                             |  |    |  | $ | 0               |        
|Executive Vice President, Non-Core Businesses                   |  | 225,000 225,000                |  |                          | 225,000 225,000 |         |                                         |   | 0 0                               |                             |  |   |  |   | 0 0             |        
|                                                                |  |                                |  |                          |                
|Gregory Garvey                                                  |  | 162,500                        |  | $                        | 162,500         |         |                                         | $ | 0                                 |                             |  |    |  | $ | 0               |        
|Manager                                                         |  | 192,500 292,500                |  |                          | 162,500 162,500 |         |                                         |   | 30,000 130,000                    | (3)                         |  |   |  |   | 0 0             |        
|                                                                |  |                                |  |                          |                
|Gerald M. David                                                 |  | 242,000                        |  | $                        | 242,000         |         |                                         | $ | 0                                 |                             |  |    |  | $ | 0               |        
|Manager                                                         |  | 300,000 312,000                |  |                          | 300,000 300,000 |         |                                         |   | 0 12,000                          |                             |  |   |  |   | 0 0             |        



|(1) | Of the salary compensation Mr. DAddario received in 2006, 2005, and 2004 $162,500 was paid in respect of his service as a member of the Wise Group management board and
the remaining was paid in respect of his service as Chairman.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(2) | Mr. Cameron received $300,000 in additional cash compensation in 2006, 2005 and 2004 pursuant to his employment agreement. See Employment Agreements below.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------

|(3) | Delayed payment of 2004 bonus.
|--- | ------------------------------

Indemnification

Under the Wise Group operating agreement, Wise Group has agreed to indemnify and hold harmless each member and economic interest holder, including their
affiliates, each member of the management board and all officers of Wise Group to the fullest extent permitted by law from and against any loss, liability, damage or expense incurred or suffered by any of them by reason of any acts or omissions or
alleged acts or omissions arising out of their activities on behalf of Wise Group or in connection with the business operations of Wise Group, provided that the acts or omissions or the alleged acts or omissions upon which the action or threatened
action, proceeding or claim is based did not involve intentional misconduct by the indemnified party, did not permit the indemnified party to personally gain a financial profit or other advantage to which such party was not legally entitled and were
not performed or committed by the indemnified party in knowing violation of the law or otherwise in bad faith.

Employment Agreements

Gerald David Employment Agreement. Gerald David entered into an employment agreement with Wise Group effective on October 1, 2001. This employment agreement
extended through September 30, 2003 and is automatically extended thereafter unless either party gives 90 days prior notice of intent to terminate. Wise Group may terminate the employment agreement for cause and Mr. David may terminate the
employment agreement on 30 days notice in the event Wise Group breaches the employment agreement and fails to remedy any such breach. In addition, pursuant to the agreement for the purchase of Wise Metals Co.s interest in Wise Metals Group by
Silver Knot, LLC, Wise Group may not terminate Mr. Davids employment agreement until Wise Metals Co. has received a stated minimum purchase price for Wise Group. Under Mr. Davids employment agreement, Mr. David receives an
annual base salary of $300,000. He is eligible to participate in Wise Groups medical and all other employee benefit plans sponsored or maintained by Wise Group. Mr. Davids employment agreement also provides for a severance payment
in the event his employment is terminated in connection with a change of control of Wise Group in which Silver Knot, LLC, or its affiliates lose control of Wise Group. In such instance, if Mr. David does not receive an amount that equals at
least the minimum purchase price, Wise Group will pay Mr. David his base salary and any other sums due him through the date of his death plus a severance payment calculated as five times his base salary discounted by the number of months
remaining until the ten year anniversary



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of the employment agreement and divided by 120. The severance payment will be limited by the amount by which payments made to Mr. David under the
purchase agreement are less than the purchase price. Mr. Davids severance will be paid in a lump sum.

John Cameron
Employment Agreement. John Cameron entered into an employment agreement with Wise Group effective on April 1, 1999. This term of this employment agreement extended through March 31, 2005. Mr. Camerons employment agreement
provides that, as of July 15, 2002 and continuing until the date he receives a total of $2.5 million, he is entitled to receive, in addition to his salary, $25,000 per month in lieu of the severance that was to be paid to him as of
March 31, 2003.

Under his employment agreement, Mr. Cameron agreed to certain non-competition and non-solicitation provisions
which were effective during the employment term and which continue from two to three year periods thereafter. Under the non-competition provision, Mr. Cameron may not be employed in, or engaged in, or in any manner connected to or concerned
with, directly or indirectly, as a principal, agent, consultant, advisor or owner of any business in the aluminum recycling, reclamation or rolling business. Under the non-solicitation provisions, Mr. Cameron may not directly or indirectly
solicit any customer or supplier of Wise Group to cease its business with Wise Group or directly or indirectly solicit current or former employee of Wise Group to join a competitor in the aluminum recycling, reclaiming or rolling businesses.

Non-competition Agreements

Wise Group
is not a party to any non-competition or non-solicitation agreements with any current employees. See Employment Agreements above for a description of a non-competition arrangement with a former officer of Wise.

Potential Payments upon termination or change-in-control

Mr. David is entitled to a payment upon a change-in-control of Wise. See Employment Agreements above. No other named executive officer is entitled to any payments upon his termination or upon a change-in-control of Wise.

Manager Compensation

For a
description of current compensation paid to the members of our management board, see Item 10 Directors, Executive Officers and Corporate Governance above. Manager compensation levels are determined annually by our Chief Executive
Officer.

401(k) Plan

We maintain two
401(k) savings plans, one for nonunion employees and one for union employees. These plans are cash or deferred arrangements intended to be qualified under Section 401(k) of the Internal Revenue Code of 1986, as amended.

The nonunion 401(k) plan provides that an eligible employee may begin to make salary reduction contributions after the first full calendar month
following date of hire. Participants may authorize us to contribute a percentage of their compensation, up to 18%, to the nonunion 401(k) plan on their behalf. The nonunion plan provides for us to make an employer contribution to eligible employees
each year based on age and compensation.

The union 401(k) plan provides that an eligible employee may begin to make salary reduction
contributions when he satisfies the probationary period specified in the collective bargaining agreement. Participants may authorize us to contribute a percentage of their compensation, up to 18%, to the union 401(k) plan on their behalf. The union
plan provides for us to make an employer contribution to eligible employees each year in an amount equal to 54 cents for each hour worked.

For those employees in the Carpenters Union, effective January 1, 2004, the employer contributes an additional 48 cents for each hour paid.



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Participants in both the nonunion and union 401(k) plans direct the investment of their accounts,
including both employee and employer contributions, among a wide array of mutual fund investment options, and can make changes to such investments as they deem appropriate. Participants in the nonunion 401(k) plan who were employed on April 1,
1999 are 100% vested in their employer contributions. All other participants in the nonunion 401(k) plan become 100% vested in their employer contributions after five years of vesting service, or upon disability or death. Participants in the union
401(k) plan are 100% vested in their employer contributions at all times.

Participants in both the nonunion and union 401(k) plans are
eligible to receive company match money. We will contribute $0.50 per $1.00 of employee contribution up to a maximum employee contribution of 6% of gross earnings. This benefit was effective January 1, 2003 for the union 401(k) plan and
July 28, 2003 for the nonunion 401(k) plan.

Pension Plan

Effective April 1, 1999, we established a defined benefit pension plan that covers essentially all union employees. The plan provides certain levels of benefits based on years of service and wage levels, but does
not provide benefits for any prior service. In addition, defined contribution plans for both union and nonunion employees were established.

In 2003 we established negotiated defined contributions for certain union employees to multi-employer union pension plans. This was done in exchange for freezing service time and pension factor in the aforementioned defined benefit plan as
of the first quarter of 2004 and eliminating post retirement benefits for affected employees.

We also established post retirement benefit
plans for all hourly and salaried employees on April 1, 1999. The union employees who become eligible to retire under the defined benefit plan and are not a part of the unions that have elected the multi-employer option will retain health
benefits and certain other benefits for life. Salaried employees who retire after age 60 with a combined 10 years service with Wise Alloys LLC and the previous owner of the Wise Alloys facilities will be eligible for medical benefits until age 65.

Our funding policy for these plans is to contribute negotiated amounts to the multi-employer funds and amounts necessary to meet minimum
funding requirements of the Employee Retirement Income Security Act for the defined benefit plans but not to exceed the maximum deductible amount allowed by the Internal Revenue Code.

Compensation Committee Interlocks and Insider Participation

Executive compensation is determined by
the executive compensation committee, reporting to the management board, and oversees compensation and benefit plans, reviews compensation levels and makes all compensation decisions relating to Wises executive officers, including the grant of
any incentive compensation. The executive committee is comprised of David DAddario, chairman and chief executive officer, and Danny Mendelson, executive vice president and chief strategic officer. David DAddario is a member of Silver
Knot LLC, who along with fellow board manager Greg Garvey, also a member of Silver Knot LLC, serve on the management board of Wise Group. Otherwise, these members of the executive officer compensation have no relationship with any other members of
the management board or any other members of the executive compensation committee.

Management Board Report regarding Compensation

The management board of Wise has reviewed and discussed the Compensation Discussion and Analysis with management and based on such review and discussion
has included the Compensation Discussion and Analysis in this Form 10-K/A.

David F. DAddario

John J. Cameron

Gregory Garvey

Gerald M. David



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|Item 12. | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.
|-------- | -----------------------------------------------------------------------------------------------

The table below sets forth certain information as of March 30, 2007, concerning the beneficial ownership of equity interests in Wise Group, on a
fully diluted basis by: each person known by Wise Group to own beneficially more than five percent of the membership interests; its Chief Executive Officer, Chief Strategic Officer and its three other most highly compensated executive officers; each
of its managers; and all of its executive officers and managers as a group.

A person or group is deemed to have beneficial ownership of
any membership interests when the person or group has the right to acquire them within 60 days after the date above. For the purpose of computing the percentage of outstanding membership interests held by each person or group named in the table
below, any membership interests which the person or group has a right to acquire within 60 days after the date above are deemed to be outstanding.



|                                                                      |  |                        |  
|--------------------------------------------------------------------- |  | ---------------------- | -
|Name and Address of Beneficial Owners(1)                              |  | Percentage ofOwnership |  
|Silver Knot, LLC(2)(3) 10 Middle Street Bridgeport, Connecticut 06604 |  | 78.8                   | %
|David F. DAddario(4)                                                 |  | 78.8                   | %
|Gregory Garvey(5)                                                     |  | 78.8                   | %
|Danny Mendelson(6)                                                    |  | 8.2                    | %
|John J. Cameron(7)                                                    |  | 6.6                    | %
|Richard Weaver                                                        |  | 1.09                   | %
|Kenneth Stastny                                                       |  | *                      |  
|Gerald M. David                                                       |  | *                      |  
|All of Wise Groups executive officers and managers as a group        |  | 98.4                   | %
|Others                                                                |  | 1.6                    | %



|* | Less than 1.0%
|- | --------------

|(1) | Except as otherwise indicated, the address for each of the named security holders is 857 Elkridge Landing Road, Suite 600, Linthicum, Maryland 21090.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------

|(2) | David F. DAddario and certain of his family members and Gregory Garvey and certain of his family members collectively own 100% of Silver Knot, LLC. Mr. DAddario has
full management control of Silver Knot, LLC pursuant to its operating agreement.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(3) | In December, 2001, Silver Knot, LLC entered into an agreement with Wise Metals Co. to acquire its 51.29% equity interest in Wise Group. Silver Knot, LLC pledged 61.2% of its equity
interest in Wise Group to Wise Metals to secure its payment obligations under the agreement. According to the terms of the pledge, Silver Knot, LLC retains voting rights for its interest and the right to receive distributions, subject to customary
events of default.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(4) | David F. DAddario holds his beneficial membership interests in Wise Group through his interest in Silver Knot, LLC.
|--- | --------------------------------------------------------------------------------------------------------------------

|(5) | Gregory Garvey holds his beneficial membership interests in Wise Group through his interest in Silver Knot, LLC.
|--- | ----------------------------------------------------------------------------------------------------------------



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|(6) | Danny Mendelsons interest is comprised of a 5.3% membership interest and 1.3% economic interest.
|--- | -------------------------------------------------------------------------------------------------

|(7) | John J. Camerons interest is comprised of a 3.1% membership interest and a 3.5% economic interest. Part of this interest is held in trust with his family. His family disclaims
beneficial ownership of this interest.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Item 13. | Certain Relationships and Related Transactions and Director Independence.
|-------- | -------------------------------------------------------------------------

Set forth below is a summary of certain relationships and related party transactions. The pricing of these transactions is not based on independent appraisals and we do not intend to obtain appraisals for future
transactions.

Transactions with Management.

Robert David is the brother of Gerald David, a Manager of Wise Group. Robert David is employed by Wise Group as Vice President, National Accounts and was paid $235,000 in salary and bonus in 2006.



|Item 14. | Principal Accounting Fees and Services.
|-------- | ---------------------------------------

The
following is a summary of the fees billed to the Company by Ernst & Young LLP for professional services rendered for the fiscal years ended December 31, 2006 and December 31, 2005:



|                   |  |           |         |           |   |        
|------------------ |  | --------- | ------- | --------- | - | -------
|Fee Category       |  | 2006 Fees |         | 2005 Fees
|Audit Fees         |  | $         | 453,065 |           | $ | 431,352
|Audit-Related Fees |  |           |        |           |   |       
|Tax Fees           |  |           |        |           |   |       
|All Other Fees     |  |           |        |           |   |       
|                   |  |           |         |           |   |        
|Total Fees         |  | $         | 453,065 |           | $ | 431,352
|                   |  |           |         |           |   |        

Audit Fees. These consist of fees billed for professional services rendered for the audit
of the Companys consolidated financial statements, review of the interim consolidated financial statements included in the quarterly reports on Form 10-Q for the respective fiscal years, irrespective of the period in which the related services
are rendered or billed and services provided by the independent auditors in connection with regulatory filings, including accounting and financial work related to the proper application of financial accounting and/or reporting standards.

Audit-Related Fees. These consist of fees billed for assurance and related services that are reasonably related to the performance of the audit
or review of the Companys consolidated financial statements and are not reported under Audit Fees. These services include consultations related to internal control and compliance procedures, due diligence related to mergers and
acquisitions and consultations concerning financial accounting and reporting standards.

Tax Fees. These consist of fees billed for
professional services for tax compliance, tax advice and tax planning.

All Other Fees. These consist of fees for services not
captured in the other categories.



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Policy on Audit Committee Pre-Approval of Audit Services and Permissible Non-Audit Services of Independent Auditors

The Audit Committees policy is to pre-approve all audit and permissible audit related and non-audit services performed by the
independent auditors. Prior to engagement of the independent auditors for the next years audit, the independent auditor provides to the Audit Committee the scope of the proposed audit and proposed related fees for services expected to be
rendered during that year within each of four categories of services for approval. The fees are budgeted and the Audit Committee requires the independent auditor and management to report actual fees versus the budget periodically throughout the year
by category of service. The Audit Committee is also informed routinely as to the services actually provided by the independent auditor pursuant to this pre-approval process. The Audit Committees prior approval must be obtained before the scope
or cost of pre-approved services is increased and for additional permissible non-audit services for which a need arises during the course of the year.

In determining whether to pre-approve any given services, the Committee considers whether such services are consistent with the continued independence of the independent auditor under the SECs rules, whether the
independent auditor is best positioned to provide the most effective and efficient service, and whether the performance of the service by the auditor might enhance the Companys ability to manage or control risk or improve audit quality.



|Item 15. | Exhibits and Financial Statement Schedules.
|-------- | -------------------------------------------



|(a) | List of Financial Statements, Financial Statement Schedules, and Exhibits
|--- | -------------------------------------------------------------------------



| | (1) | List of Financial Statements
| | --- | ----------------------------

See Index to
Consolidated Financial Statements in Item 8, Financial Statements And Supplementary Data.



| | (2) | List of Financial Statement Schedules
| | --- | -------------------------------------

The
following financial statement schedules of the Company are included herein:

Schedule II  Valuation of Qualifying Accounts

All other schedules for which provision is made in the applicable accounting regulations of the Commission are not required under the
related instructions or are inapplicable and, therefore, have been omitted.



| | (3) | Exhibits
| | --- | --------

The following exhibits are
either included in this report or incorporated herein by reference as indicated below:



|     |  |                                                                                                                                                                                                                                           
|---- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|1.1  |  | Purchase Agreement, dated April 30, 2004, by and among the Issuers, the Guarantors and the Initial Purchasers (incorporated by reference to Exhibit 1.1 to the Companys Registration
Statement on Form S-4 filed on July 23, 2004)       
|     | 
|3.1  |  | Second Amended and Restated Limited Liability Company Agreement of Wise Metals Group LLC (incorporated by reference to Exhibit 3.1 to the Companys Registration Statement on Form S-4/A
filed on September 29, 2004)                     
|     | 
|3.2a |  | Certificate of Formation of Wise Metals Holdings LLC filed with the Delaware Secretary of State on February 1, 1999 (incorporated by reference to Exhibit 3.2a to the Companys Registration
Statement on Form S-4 filed on July 23, 2004)
|     | 
|3.2b |  | Certificate of Amendment of Wise Metals Holdings LLC (incorporated by reference to Exhibit 3.2b to the Companys Registration Statement on Form S-4 filed on July 23, 2004)                                                               
|     | 
|3.2c |  | Articles of Merger of Wise Metals Group LLC (incorporated by reference to Exhibit 3.2c to the Companys Registration Statement on Form S-4 filed on July 23, 2004)                                                                        



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|      |  |                                                                                                                                                                                                                                                           
|----- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|3.3   |  | Limited Liability Company Agreement of Listerhill Total Maintenance Center LLC (incorporated by reference to Exhibit 3.3 to the Companys Registration Statement on Form S-4 filed on
July 23, 2004)                                                      
|      | 
|3.4   |  | Certificate of Formation of Listerhill Total Maintenance Center LLC filed with the Delaware Secretary of State on September 30, 2003 (incorporated by reference to Exhibit 3.4 to the
Companys Registration Statement on Form S-4 filed on July 23, 2004)
|      | 
|3.5   |  | Limited Liability Company Agreement of Wise Warehousing, LLC (incorporated by reference to Exhibit 3.5 to the Companys Registration Statement on Form S-4 filed on July 23,
2004)                                                                        
|      | 
|3.6   |  | Certificate of Formation of Wise Warehousing, LLC filed with the Delaware Secretary of State on December 22, 2003 (incorporated by reference to Exhibit 3.6 to the Companys Registration
Statement on Form S-4 filed on July 23, 2004)                   
|      | 
|3.7   |  | Limited Liability Company Agreement of Wise Alloys LLC (together with amendment 3 thereto) (incorporated by reference to Exhibit 3.7 to the Companys Registration Statement on Form S-4
filed on July 23, 2004)                                          
|      | 
|3.8   |  | Certificate of Formation of Wise Alloys LLC filed with the Delaware Secretary of State on December 9, 1998 (incorporated by reference to Exhibit 3.8 to the Companys Registration Statement
on Form S-4 filed on July 23, 2004)                          
|      | 
|3.9   |  | Amended and Restated Limited Liability Company Agreement of Wise Recycling West, LLC (incorporated by reference to Exhibit 3.9 to the Companys Registration Statement on Form S-4 filed on
July 23, 2004)                                                
|      | 
|3.10a |  | Certificate of Formation of Wise Recycling West, LLC filed with the Delaware Secretary of State on December 27, 2001 (incorporated by reference to Exhibit 3.10a to the Companys
Registration Statement on Form S-4 filed on July 23, 2004)              
|      | 
|3.10b |  | Certificate of Amendment of Certificate of Formation of Wise Recycling West, LLC (incorporated by reference to Exhibit 3.10b to the Companys Registration Statement on Form S-4 filed on
July 23, 2004)                                                  
|      | 
|3.11  |  | Limited Liability Company Agreement of Wise Recycling Texas, LLC (incorporated by reference to Exhibit 3.11 to the Companys Registration Statement on Form S-4 filed on July 23,
2004)                                                                   
|      | 
|3.12  |  | Certificate of Formation of Wise Recycling Texas, LLC filed with the Delaware Secretary of State on June 4, 2002 (incorporated by reference to Exhibit 3.12 to the Companys Registration
Statement on Form S-4 filed on July 23, 2004)                   
|      | 
|3.13  |  | Second Amended and Restated Limited Liability Company Operating Agreement of Wise Recycling, LLC (incorporated by reference to Exhibit 3.13 to the Companys Registration Statement on Form
S-4 filed on July 23, 2004)                                   
|      | 
|3.14  |  | Articles of Organization of Wise Recycling, LLC filed with the Maryland Secretary of State on January 20, 1998 (incorporated by reference to Exhibit 3.14 to the Companys Registration
Statement on Form S-4 filed on July 23, 2004)                     
|      | 
|3.15  |  | Certificate of Incorporation of Wise Alloys Finance Corporation filed with the Delaware Secretary of State on April 18, 2002 (incorporated by reference to Exhibit 3.15 to the Companys
Registration Statement on Form S-4 filed on July 23, 2004)       
|      | 
|3.16  |  | Bylaws of Wise Alloys Finance Corporation (incorporated by reference to Exhibit 3.16 to the Companys Registration Statement on Form S-4 filed on July 23, 2004)                                                                                          



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|      |  |                                                                                                                                                                                                                                                                                                                                 
|----- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|4.1   |  | Indenture, dated May 5, 2004, by and among the Issuers, the Guarantors and the Trustee (incorporated by reference to Exhibit 4.1 to the Companys Registration Statement on Form S-4
filed on July 23, 2004)                                                                                                                    
|      | 
|4.2   |  | Registration Rights Agreement, dated as of May 5, 2004, by and among the Issuers, the Guarantors and the Initial Purchasers (incorporated by reference to Exhibit 4.2 to the Companys
Registration Statement on Form S-4 filed on July 23, 2004)                                                                               
|      | 
|10.1  |  | General Security Agreement, dated as of May 5, 2004, by the Issuers and the Guarantors in favor of the Trustee (incorporated by reference to Exhibit 10.1 to the Companys Registration
Statement on Form S-4 filed on July 23, 2004)                                                                                           
|      | 
|10.2  |  | Intercreditor Agreement, dated May 5, 2004, by and between the Trustee and Congress Financial Corporation (incorporated by reference to Exhibit 10.2 to the Companys Registration Statement
on Form S-4 filed on July 23, 2004)                                                                                                
|      | 
|10.3  |  | Collateral Assignment of Acquisition Agreement, dated May 5, 2004, by Wise Alloys LLC in favor of the Trustee (incorporated by reference to Exhibit 10.3 to the Companys Registration
Statement on Form S-4 filed on July 23, 2004)                                                                                            
|      | 
|10.4  |  | Investment Property Pledge and Security Agreement, dated May 5, 2004, by Wise Alloys LLC in favor of the Trustee (incorporated by reference to Exhibit 10.4 to the Companys Registration
Statement on Form S-4 filed on July 23, 2004)                                                                                         
|      | 
|10.5  |  | Fee and Leasehold Mortgage, Assignment of Leases and Rents, Security Agreement and Fixture Filing, dated May 5, 2004, by Wise Alloys LLC in favor of the Trustee (incorporated by reference to
Exhibit 10.5 to the Companys Registration Statement on Form S-4 filed on July 23, 2004)                                         
|      | 
|10.6  |  | Pledge and Security Agreement, dated May 5, 2004, by the Issuers and the Guarantors in favor of the Trustee (incorporated by reference to Exhibit 10.6 to the Companys Registration
Statement on Form S-4 filed on July 23, 2004)                                                                                              
|      | 
|10.7  |  | Trademark Collateral Assignment and Security Agreement, dated May 5, 2004, by and between Wise Alloys LLC and the Trustee (incorporated by reference to Exhibit 10.7 to the Companys
Registration Statement on Form S-4 filed on July 23, 2004)                                                                                
|      | 
|10.8  |  | Beverage Can Supply Letter Agreement, dated August 10, 1998 and as most recently amended April 1, 2003, by and between Ball Corporation and Wise Alloys LLC (incorporated by reference to Exhibit
10.8 to the Companys Registration Statement on Amendment No. 1 to the Form S-4 filed on September 29, 2004)                 
|      | 
|10.9  |  | Beverage Can Supply Letter Agreement, dated April 22, 2004, by and between Crown Cork & Seal Co. and Wise Alloys LLC (incorporated by reference to Exhibit 10.8 to the Companys
Registration Statement on Amendment No. 1 to the Form S-4 filed on September 29, 2004)                                                        
|      | 
|10.10 |  | Amended and Restated Loan Agreement, dated May 5, 2004, by and among the Issuers, the Guarantors, Congress Financial Corporation, Fleet Capital Corporation and the Financial Institutions named
therein (incorporated by reference to Exhibit 10.10 to the Companys Registration Statement on Form S-4 filed on July 23, 2004)
|      | 
|10.11 |  | Employment Agreement, dated December 31, 2001, by and between Gerald David and Wise Metals Group LLC (incorporated by reference to Exhibit 10.11 to the Companys Registration Statement on
Form S-4 filed on July 23, 2004)                                                                                                    
|      | 
|10.12 |  | Employment Agreement, dated April 1, 1999, by and between John Cameron and Wise Metals Group LLC (together with amendments thereto) (incorporated by reference to Exhibit 10.12 to the
Companys Registration Statement on Form S-4 filed on July 23, 2004)                                                                     



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|      |  |                                                                                                                                                                                                                                                                                                                                                                   
|----- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|10.13 |  | $720,000 Real Estate Mortgage Note, dated December 5, 2002, issued by Wise Recycling West, LLC on behalf of TOMRA of North America Finance Corporation (incorporated by reference to Exhibit
10.13 to the Companys Registration Statement on Form S-4 filed on July 23, 2004)                                                                                    
|      | 
|10.14 |  | Mortgage, dated December 5, 2002, by and between Wise Recycling West, LLC on behalf of TOMRA of North America Finance Corporation (incorporated by reference to Exhibit 10.7 to the Companys
Registration Statement on Form S-4 filed on July 23, 2004)                                                                                                          
|      | 
|10.15 |  | $720,000 Promissory Note, dated December 6, 2002, issued by Wise Recycling West, LLC on behalf of TOMRA of North America Finance Corporation (incorporated by reference to Exhibit 10.15 to the
Companys Registration Statement on Form S-4 filed on July 23, 2004)                                                                                              
|      | 
|10.16 |  | Deed of Trust, dated December 6, 2002, by and between Wise Recycling West, LLC on behalf of TOMRA of North America Finance Corporation (incorporated by reference to Exhibit 10.16 to the
Companys Registration Statement on Form S-4 filed on July 23, 2004)                                                                                                    
|      | 
|10.17 |  | Environmental Cooperation Agreement, dated March 31, 1999, by Reynolds Metals Company and Wise Alloys LLC (incorporated by reference to Exhibit 10.17 to the Companys Registration Statement
on Form S-4 filed on July 23, 2004)                                                                                                                                 
|      | 
|10.18 |  | Technology License Agreement, dated as of March 31, 1999, between Reynolds Metals Company, Southern Reclamation Company, Inc. and Wise Alloys LLC (incorporated by reference to Exhibit 10.18 to
the Companys Registration Statement on Form S-4 filed on July 23, 2004)                                                                                         
|      | 
|10.19 |  | Purchase Agreement dated as of October 31, 2003, and effective as of June 30, 2003, by and among David DAddario and John Cameron and Wise Recycling LLC (incorporated by reference to
Exhibit 10.19 to the Companys Registration Statement on Form S-4 filed on July 23, 2004)                                                                                  
|      | 
|10.20 |  | Ground Lease Agreement (Sewage Treatment Plant), dated March 31, 1999, by Reynolds Metals Company and Wise Alloys LLC (incorporated by reference to Exhibit 10.20 to the Companys
Registration Statement on Form S-4 filed on July 23, 2004)                                                                                                                     
|      | 
|10.21 |  | Ground Lease Agreement (Drinking Water Plant), dated March 31, 1999, by Reynolds Metals Company and Wise Alloys LLC (incorporated by reference to Exhibit 10.21 to the Companys Registration
Statement on Form S-4 filed on July 23, 2004)                                                                                                                       
|      | 
|10.22 |  | Ground Lease Agreement (Southern Reclamation Plant), dated March 31, 1999, by Reynolds Aluminum Partners and Wise Alloys LLC (incorporated by reference to Exhibit 10.22 to the Companys
Registration Statement on Form S-4 filed on July 23, 2004)                                                                                                              
|      | 
|10.23 |  | Lease Agreement, dated March 31, 1999, by Reynolds Metals Company and Wise Alloys LLC (incorporated by reference to Exhibit 10.23 to the Companys Registration Statement on Form S-4 filed
on July 23, 2004)                                                                                                                                                     
|      | 
|10.24 |  | Asset Purchase Agreement, dated as of December 30, 1998, among Reynolds Metals Company, Southern Reclamation Company, Inc. Reynolds Aluminum Partners and Wise Alloys LLC (incorporated by
reference to Exhibit 10.24 to the Companys Registration Statement on Form S-4 filed on July 23, 2004)                                                                 
|      | 
|10.25 |  | Amendment No. 1 to Amended and Restated Loan Agreement, dated as of June 30, 2004, by and among the Issuers, the Guarantors, Congress Financial Corporation, Fleet Capital Corporation and the
Financial Institutions named therein (incorporated by reference to Exhibit 10.25 to the Companys Registration Statement on Form S-4/A filed on September 29, 2004)



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|      |  |                                                                                                                                                                                                                                                                                                                                                                                                                                               
|----- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|10.26 |  | Accounts Purchase and Sale Agreement, dated as of June 30, 2004, by and among Wise Alloys LLC and Congress Financial Corporation (incorporated by reference to Exhibit 10.26 to the
Companys Registration Statement on Form S-4/A filed on September 29, 2004)                                                                                                                                                                               
|      | 
|10.27 |  | Employment Agreement, dated as of July 1, 2004, by and between Randall R. Powers and Wise Metals Group LLC (incorporated by reference to Exhibit 10.27 to the Companys Registration
Statement on Amendment No. 1 to the Form S-4 filed on September 29, 2004)                                                                                                                                                                                
|      | 
|10.28 |  | Amendment No. 2 to Amended and Restated Loan Agreement, dated November 10, 2004, by and among the Issuers, the Guarantors, Congress Financial Corporation and Fleet Capital Corporation
(incorporated by reference to Exhibit 10.1 to the Companys Quarterly Report on Form 10-Q for the quarter ended September 30, 2004)                                                                                                                   
|      | 
|10.29 |  | Amendment No. 4 to Amended and Restated Loan Agreement, dated October 31, 2005, by and among the Issuers, the Guarantors, Congress Financial Corporation and Fleet Capital Corporation
(incorporated by reference to Exhibit 10.1 to the Companys Quarterly Report on Form 10-Q for the quarter ended September 30, 2005)                                                                                                                    
|      | 
|10.30 |  | Amendment to Deed of Trust and Assignment of Deed of Trust, dated as January 10, 2005, by Wise Recycling West, LLC, to the Adams County Public Trustee for the benefit of TOMRA of North America
Finance Corporation and GAB Holding LLC (incorporated by reference to Exhibit 10.30 to the Companys Annual Report on form 10-K for the year ended December 31, 2005)                                                                        
|      | 
|10.31 |  | Extension and Assignment Agreement, entered into as of January 21, 2005, by and among TOMRA of North America Finance Corporation, Wise Recycling West, LLC and GAB Holding LLC (incorporated by
reference to Exhibit 10.31 to the Companys Annual Report on form 10-K for the year ended December 31, 2005)                                                                                                                                  
|      | 
|10.32 |  | Allonge to Real Estate Mortgage Note, attached to, and made a part of that certain Promissory Note dated December 5, 2002, in the principal amount of Seven Hundred Twenty Thousand and 00/100
Dollars ($720,000.00) made by Wise Recycling West, LLC to the order of TOMRA of North America Finance Corporation (incorporated by reference to Exhibit 10.32 to the Companys Annual Report on form 10-K for the year ended December 31,
2005)
|      | 
|10.33 |  | Amendment No. 3 to Amended and Restated Loan Agreement, dated March 21, 2005, by and among the Issuers, the Guarantors, and Wachovia Corporation (formerly Congress Financial) as Agent
Corporation*                                                                                                                                                                                                                                          
|      | 
|10.34 |  | Amendment No. 5 to Amended and Restated Loan Agreement, dated March 6, 2006, by and among the Issuers, the Guarantors, and Wachovia Corporation (formerly Congress Financial) as Agent Corporation
(incorporated by reference to Exhibit 10.33 to the Companys Annual Report on Form 10-K for the year ended December 31, 2005)                                                                                                              
|      | 
|10.35 |  | Amendment No. 6 to Amended and Restated Loan Agreement, dated March 31, 2006, by and among the Issuers, the Guarantors, and Wachovia Corporation (formerly Congress Financial) as Agent
Corporation*                                                                                                                                                                                                                                          
|      | 
|10.36 |  | Amendment No. 7 to Amended and Restated Loan Agreement, dated April 28, 2006, by and among the Issuers, the Guarantors, and Wachovia Corporation (formerly Congress Financial) as Agent
Corporation*                                                                                                                                                                                                                                          
|      | 
|10.37 |  | Amendment No. 8 to Amended and Restated Loan Agreement, dated June 12, 2006, by and among the Issuers, the Guarantors, and Wachovia Corporation (formerly Congress Financial) as Agent Corporation
(incorporated by reference to Exhibit 10.30 to the Companys Quarterly Report on Form 10-Q for the period ended June 30, 2006)                                                                                                             



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|      |  |                                                                                                                                                                                                                                                                                                                                   
|----- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|10.38 |  | Amendment No. 9 to Amended and Restated Loan Agreement, dated August 4, 2006, by and among the Issuers, the Guarantors, and Wachovia Corporation (formerly Congress Financial) as Agent
Corporation (incorporated by reference to Exhibit 10.31 to the Companys Quarterly Report on Form 10-Q for the period ended June 30, 2006)
|      | 
|10.39 |  | Amendment No. 10 to Amended and Restated Loan Agreement, dated December 31, 2006, by and among the Issuers, the Guarantors, and Wachovia Corporation (formerly Congress Financial) as Agent
Corporation*                                                                                                                          
|      | 
|10.40 |  | Separation Agreement and Release by and between Randall R. Powers and the Company (incorporated by reference to Exhibit 10.1 to the Companys Quarterly Report on Form 10-Q for the period
ended March 31, 2006)                                                                                                                  
|      | 
|10.41 |  | Master Lease Agreement dated November 13, 2006 by and among The Employees Retirement System of Alabama, The Teachers Retirement System of Alabama, Wilmington Trust Company and the
Company*                                                                                                                                    
|      | 
|10.42 |  | Accounts Purchase and Sale Agreement, dated as of March 31, 2006, by and among Wise Alloys LLC and Wachovia Corporation (formerly Congress Financial) as Agent Corporation*                                                                                                                                                       
|      | 
|10.43 |  | Amendment No. 1 to Accounts Purchase and Sale Agreement, dated as of December 31, 2006, by and among Wise Alloys LLC and Wachovia Corporation (formerly Congress Financial) as Agent Corporation*                                                                                                                                 
|      | 
|10.44 |  | Amendment No. 2 to Accounts Purchase and Sale Agreement, dated as of April 9, 2007, by and among Wise Alloys LLC and Wachovia Corporation (formerly Congress Financial) as Agent
Corporation*                                                                                                                                     
|      | 
|21    |  | List of Subsidiaries (incorporated by reference to Exhibit 21.1 to the Companys Annual Report on Form 10-K for the year ended December 31, 2005)                                                                                                                                                                                 
|      | 
|31.1  |  | Section302 CEO Certification**                                                                                                                                                                                                                                                                                                    
|      | 
|31.2  |  | Section302 CFO Certification**                                                                                                                                                                                                                                                                                                    
|      | 
|32.1  |  | Section906 CEO Certification**                                                                                                                                                                                                                                                                                                    
|      | 
|32.2  |  | Section906 CFO Certification**                                                                                                                                                                                                                                                                                                    



|* | Filed on April 17, 2007 with the Form 10K dated December 31, 2006.
|- | ------------------------------------------------------------------

|** | Filed herewith.
|-- | ---------------

| | Portions of this document have been omitted and filed separately with the SEC pursuant to a request for confidential treatment in accordance with Rule 406 of the Securities Act.
|- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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SIGNATURES

Pursuant to the requirements of section 13 or section 15(d) of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.



|                     |  |                                     
|-------------------- |  | ------------------------------------
|                     |  | WISE METALS GROUP LLC               
|                     | 
|Dated: March 4, 2008 |  | /s/ DAVID DADDARIO                 
|                     |  | David DAddario                     
|                     |  | Chairman and Chief Executive Officer



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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the date indicated.



|                     |  |                                                     
|-------------------- |  | ----------------------------------------------------
|Dated: March 4, 2008 |  | /s/ DAVID DADDARIO                                 
|                     |  | David DAddario Chairman and Chief Executive Officer
|                     | 
|                     |  | /s/ KENNETH STASTNY                                 
|                     |  | Kenneth Stastny Chief Financial Officer             
|                     | 
|                     |  | /s/ JOHN CAMERON                                    
|                     |  | John Cameron Vice Chairman and Manager              
|                     | 
|                     |  | /s/ GERALD DAVID                                    
|                     |  | Gerald David Manager                                
|                     | 
|                     |  | /s/ GREGORY GARVEY                                  
|                     |  | Gregory Garvey Manager                              

Supplemental Information to be Furnished with Reports Filed Pursuant to Section 15(d) of the Act by
Registrants Which Have Not Registered Securities Pursuant to Section 12 of the Act.

No annual report or proxy materials have been sent to
security holders.

15(a)

Schedule
II

Valuation and Qualifying Accounts

Allowance for Doubtful Accounts



|                  |  |                              |       |                           |     |                       |       |     |       |   |                           |      
|----------------- |  | ---------------------------- | ----- | ------------------------- | --- | --------------------- | ----- | --- | ----- | - | ------------------------- | -----
|Period Ending     |  | Balance atBeginningof Period |       | Chargeto Costs andExpense |     | DeductionsWrite Offs |       |     | Other |   | Balance atEnding ofPeriod
|December 31, 2004 |  | $                            | 1,901 |                           |    |                       | 1,701 | (1) |       |  |                           | 200  
|December 31, 2005 |  |                              | 200   |                           | 860 |                       |      |     |       |  |                           | 1,060
|December 31, 2006 |  |                              | 1,060 |                           | 50  |                       | 10    |     |       |  |                           | 1,100



|(1) | An allowance in 2002 was established concurrently with a billing due to the unlikely nature of collection. In 2004, the amount includes the write off this allowance and related
receivables recorded in 2002 thus having no impact on earnings.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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