<PAGE>
--------------------------------------------------------------------------------
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                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549
 
                            ------------------------
 
                                   FORM 10-Q
 
  /X/    QUARTERLY REPORT PURSUANT TO SECTION 13 OF THE SECURITIES
         EXCHANGE ACT OF 1934
         FOR THE QUARTERLY PERIOD ENDED JANUARY 31, 1999
 
  / /    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
         SECURITIES EXCHANGE ACT OF 1934
         FOR THE TRANSITION PERIOD FROM                  TO
 
                         COMMISSION FILE NUMBER 1-9078
 
                            ------------------------
 
                             THE ALPINE GROUP, INC.
 
             (Exact name of registrant as specified in its charter)
 
                  DELAWARE                             22-1620387
        (State or other jurisdiction                (I.R.S. Employer
     of incorporation or organization)             Identification No.)
 
               1790 BROADWAY                           10019-1412
             NEW YORK, NEW YORK                        (Zip code)
  (Address of principal executive offices)
 
        REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE 212-757-3333
 
                            ------------------------
 
    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 and (2) has been subject to such filing
requirements for the past 90 Days. Yes X  No / /
 
    INDICATE THE NUMBER OF SHARES OUTSTANDING OF EACH OF THE ISSUER'S CLASSES OF
COMMON STOCK, AS OF THE LATEST PRACTICABLE DATE.
 
<TABLE>
<CAPTION>
                         CLASS                                         OUTSTANDING AT MARCH 16, 1999
--------------------------------------------------------  --------------------------------------------------------
<S>                                                       <C>
              Common Stock, $.10 Par Value                                       15,552,339
</TABLE>
 
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<PAGE>
                        PART I.   FINANCIAL INFORMATION
 
ITEM 1. FINANCIAL STATEMENTS
 
    The accompanying unaudited condensed consolidated financial statements have
been prepared in accordance with the requirements of Form 10-Q and, therefore,
do not include all information and footnotes required by generally accepted
accounting principles. However, in the opinion of management, all adjustments
(which, except as disclosed elsewhere herein, consist only of normal recurring
accruals) necessary for a fair presentation of the results of operations for the
relevant periods have been made. Results for the interim periods are not
necessarily indicative of the results to be expected for the year. These
financial statements should be read in conjunction with the summary of
significant accounting policies and the notes to the consolidated financial
statements included in the Company's Annual Report on Form 10-K for the year
ended April 30, 1998.
 
                                       2
<PAGE>
                    THE ALPINE GROUP, INC. AND SUBSIDIARIES
 
                     CONDENSED CONSOLIDATED BALANCE SHEETS
 
                             (DOLLARS IN THOUSANDS)
 
<TABLE>
<CAPTION>
                                                                                          APRIL 30,   JANUARY 31,
                                                                                             1998         1999
                                                                                          ----------  ------------
<S>                                                                                       <C>         <C>
                                                                                                      (UNAUDITED)
                                                      ASSETS
Current assets:
  Cash and cash equivalents.............................................................  $   17,841  $     32,524
  Marketable securities.................................................................      15,672        14,594
  Accounts receivable (less allowance for doubtful accounts of: April 1998, $2,996;
    January 1999, $8,603)...............................................................     150,020       320,092
  Inventories...........................................................................     134,570       446,333
  Other current assets..................................................................      30,742        67,471
                                                                                          ----------  ------------
    Total current assets................................................................     348,845       881,014
Property, plant and equipment, net......................................................     195,513       626,218
Long-term investments and other assets..................................................      40,665        90,614
Goodwill (less accumulated amortization: April 1998, $12,774; January 1999, $20,180)....     201,837       850,074
                                                                                          ----------  ------------
    Total assets........................................................................  $  786,860  $  2,447,920
                                                                                          ----------  ------------
                                                                                          ----------  ------------
 
                                       LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
  Accounts payable......................................................................  $  107,820  $    180,596
  Accrued expenses......................................................................      92,511       172,553
  Short-term borrowings.................................................................          --       109,402
  Current portion of long-term debt.....................................................       8,442        71,632
                                                                                          ----------  ------------
    Total current liabilities...........................................................     208,773       534,183
Long-term debt, less current portion....................................................     380,868     1,552,649
Minority interest in subsidiaries.......................................................      49,805       119,438
Other long-term liabilities.............................................................      69,899       175,890
                                                                                          ----------  ------------
    Total liabilities...................................................................     709,345     2,382,160
                                                                                          ----------  ------------
Commitments and contingencies
Stockholders' equity:
  9% cumulative convertible preferred stock at liquidation value........................         427           427
  Common stock, $.10 par value; authorized 25,000,000 shares; 19,865,990 shares and
    20,050,045 shares issued at April 1998 and January 1999, respectively...............       1,986         2,005
  Capital in excess of par value........................................................     136,598       138,224
  Accumulated other comprehensive income (loss).........................................        (814)       (2,536)
  Accumulated deficit...................................................................     (32,834)      (20,522)
                                                                                          ----------  ------------
                                                                                             105,363       117,598
Shares of common stock in treasury, at cost: April 1998, 2,704,732 shares; January 1999,
  4,165,932 shares......................................................................     (26,890)      (50,830)
Receivable from stockholders............................................................        (958)       (1,008)
                                                                                          ----------  ------------
    Total stockholders' equity..........................................................      77,515        65,760
                                                                                          ----------  ------------
      Total liabilities and stockholders' equity........................................  $  786,860  $  2,447,920
                                                                                          ----------  ------------
                                                                                          ----------  ------------
</TABLE>
 
  The accompanying notes are an integral part of these condensed consolidated
                             financial statements.
 
                                       3
<PAGE>
                    THE ALPINE GROUP, INC. AND SUBSIDIARIES
 
                CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 
                                  (UNAUDITED)
<TABLE>
<CAPTION>
                                                                                              THREE MONTHS ENDED
                                                                                                 JANUARY 31,
                                                                                            ----------------------
<S>                                                                                         <C>         <C>
                                                                                               1998        1999
                                                                                            ----------  ----------
 
<CAPTION>
                                                                                            (IN THOUSANDS, EXCEPT
                                                                                               PER SHARE DATA)
<S>                                                                                         <C>         <C>
Net sales.................................................................................  $  206,504  $  440,753
Cost of goods sold........................................................................     169,077     353,019
                                                                                            ----------  ----------
  Gross profit............................................................................      37,427      87,734
Selling, general and administrative expenses..............................................      17,859      50,673
Nonrecurring and unusual charges..........................................................       3,626       3,167
Amortization of goodwill..................................................................       1,067       4,171
                                                                                            ----------  ----------
  Operating income........................................................................      14,875      29,723
Interest (expense)........................................................................      (6,959)    (30,912)
Other income, net.........................................................................       1,118         989
                                                                                            ----------  ----------
  Income (loss) before income tax expense and minority interest...........................       9,034        (200)
Provision for income taxes................................................................      (3,500)     (1,214)
                                                                                            ----------  ----------
  Income (loss) before minority interest..................................................       5,534      (1,414)
Minority interest in (earnings) losses of subsidiaries....................................      (4,212)      2,439
                                                                                            ----------  ----------
  Income before extraordinary (loss)......................................................       1,322       1,025
Extraordinary (loss) on early extinguishment of debt......................................          --        (634)
                                                                                            ----------  ----------
  Net income..............................................................................       1,322         391
Preferred stock dividends.................................................................          (9)         (9)
                                                                                            ----------  ----------
  Net income applicable to common stock...................................................  $    1,313  $      382
                                                                                            ----------  ----------
                                                                                            ----------  ----------
 
Net income per share of common stock:
  Basic:
    Income before extraordinary (loss)....................................................  $     0.08  $     0.06
    Extraordinary (loss) on early extinguishment of debt..................................          --       (0.04)
                                                                                            ----------  ----------
      Net income per basic share of common stock..........................................  $     0.08  $     0.02
                                                                                            ----------  ----------
                                                                                            ----------  ----------
  Diluted:
    Income before extraordinary (loss)....................................................  $     0.07  $     0.06
    Extraordinary (loss) on early extinguishment of debt..................................          --       (0.04)
                                                                                            ----------  ----------
      Net income per diluted share of common stock........................................  $     0.07  $     0.02
                                                                                            ----------  ----------
                                                                                            ----------  ----------
</TABLE>
 
  The accompanying notes are an integral part of these condensed consolidated
                             financial statements.
 
                                       4
<PAGE>
                    THE ALPINE GROUP, INC. AND SUBSIDIARIES
 
                CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 
                                  (UNAUDITED)
<TABLE>
<CAPTION>
                                                                                              NINE MONTHS ENDED
                                                                                                 JANUARY 31,
                                                                                            ----------------------
<S>                                                                                         <C>         <C>
                                                                                               1998        1999
                                                                                            ----------  ----------
 
<CAPTION>
                                                                                            (IN THOUSANDS, EXCEPT
                                                                                               PER SHARE DATA)
<S>                                                                                         <C>         <C>
Net sales.................................................................................  $  646,532  $  997,357
Cost of goods sold........................................................................     525,265     783,810
                                                                                            ----------  ----------
  Gross profit............................................................................     121,267     213,547
Selling, general and administrative expenses..............................................      52,215     109,173
Nonrecurring and unusual charges..........................................................       3,626       3,167
Amortization of goodwill..................................................................       3,160       7,487
                                                                                            ----------  ----------
  Operating income........................................................................      62,266      93,720
Interest (expense)........................................................................     (21,686)    (51,528)
Other income, net.........................................................................       2,722       1,348
                                                                                            ----------  ----------
  Income before income tax expense and minority interest..................................      43,302      43,540
Provision for income taxes................................................................     (17,220)    (18,733)
                                                                                            ----------  ----------
  Income before minority interest.........................................................      26,082      24,807
Minority interest in (earnings) of subsidiaries...........................................     (14,307)    (11,834)
                                                                                            ----------  ----------
  Income before extraordinary (loss)......................................................      11,775      12,973
Extraordinary (loss) on early extinguishment of debt......................................      (1,221)       (634)
                                                                                            ----------  ----------
  Net income..............................................................................      10,554      12,339
Preferred stock dividends.................................................................         (59)        (27)
                                                                                            ----------  ----------
  Net income applicable to common stock...................................................  $   10,495  $   12,312
                                                                                            ----------  ----------
                                                                                            ----------  ----------
 
Net income per share of common stock:
  Basic:
    Income before extraordinary (loss)....................................................  $     0.69  $     0.77
    Extraordinary (loss) on early extinguishment of debt..................................       (0.07)      (0.04)
                                                                                            ----------  ----------
Net income per basic share of common stock................................................  $     0.62  $     0.74
                                                                                            ----------  ----------
                                                                                            ----------  ----------
  Diluted:
    Income before extraordinary (loss)....................................................  $     0.62  $     0.69
    Extraordinary (loss) on early extinguishment of debt..................................       (0.06)      (0.03)
                                                                                            ----------  ----------
      Net income per diluted share of common stock........................................  $     0.55  $     0.65
                                                                                            ----------  ----------
                                                                                            ----------  ----------
</TABLE>
 
  The accompanying notes are an integral part of these condensed consolidated
                             financial statements.
 
                                       5
<PAGE>
                    THE ALPINE GROUP, INC. AND SUBSIDIARIES
 
            CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
 
                   FOR THE NINE MONTHS ENDED JANUARY 31, 1999
 
                                  (UNAUDITED)
<TABLE>
<CAPTION>
                                                                                 9% CUMULATIVE
                                                                                  CONVERTIBLE          ACCUMULATED
                                            COMMON STOCK         CAPITAL        PREFERRED STOCK           OTHER
                                       -----------------------  IN EXCESS   ------------------------  COMPREHENSIVE   ACCUMULATED
                                          SHARES      AMOUNT      OF PAR      SHARES       AMOUNT         INCOME        DEFICIT
                                       ------------  ---------  ----------  -----------  -----------  --------------  ------------
<S>                                    <C>           <C>        <C>         <C>          <C>          <C>             <C>
                                                                    (IN THOUSANDS, EXCEPT SHARE DATA)
Balance at April 30, 1998............    19,865,990  $   1,986  $  136,598         427    $     427     $     (814)    $  (32,834)
Effect of subsidiaries' equity
  transactions.......................                                  238
Exercise of stock options............        84,759          9         210
Employee stock purchase plan.........        34,928          4         452
Exercise of warrants.................        32,691          3          (3)
Purchase of treasury stock...........
Compensation expense related to stock
  options and grants.................        22,168          2         540
Dividends on preferred stock.........                                                                                         (27)
Total comprehensive income (Note
  3).................................                                                                       (1,722)        12,339
Other................................         9,509          1         189
                                       ------------  ---------  ----------         ---        -----        -------    ------------
Balance at January 31, 1999..........    20,050,045  $   2,005  $  138,224         427    $     427     $   (2,536)    $  (20,522)
                                       ------------  ---------  ----------         ---        -----        -------    ------------
                                       ------------  ---------  ----------         ---        -----        -------    ------------
 
<CAPTION>
 
                                           TREASURY STOCK        RECEIVABLE
                                       -----------------------      FROM
                                         SHARES       AMOUNT    STOCKHOLDERS    TOTAL
                                       -----------  ----------  ------------  ----------
<S>                                    <C>          <C>         <C>           <C>
 
Balance at April 30, 1998............   (2,704,732) $  (26,890)  $     (958)  $   77,515
Effect of subsidiaries' equity
  transactions.......................                                                238
Exercise of stock options............                                                219
Employee stock purchase plan.........                                                456
Exercise of warrants.................                                                 --
Purchase of treasury stock...........   (1,461,200)    (23,940)                  (23,940)
Compensation expense related to stock
  options and grants.................                                    38          580
Dividends on preferred stock.........                                                (27)
Total comprehensive income (Note
  3).................................                                             10,617
Other................................                                   (88)         102
                                       -----------  ----------  ------------  ----------
Balance at January 31, 1999..........   (4,165,932) $  (50,830)  $   (1,008)  $   65,760
                                       -----------  ----------  ------------  ----------
                                       -----------  ----------  ------------  ----------
</TABLE>
 
  The accompanying notes are an integral part of these condensed consolidated
                             financial statements.
 
                                       6
<PAGE>
                    THE ALPINE GROUP, INC. AND SUBSIDIARIES
 
                     CONSOLIDATED STATEMENTS OF CASH FLOWS
 
                                  (UNAUDITED)
<TABLE>
<CAPTION>
                                                                                            NINE MONTHS ENDED
                                                                                               JANUARY 31,
                                                                                         ------------------------
<S>                                                                                      <C>          <C>
                                                                                            1998         1999
                                                                                         -----------  -----------
 
<CAPTION>
                                                                                              (IN THOUSANDS)
<S>                                                                                      <C>          <C>
Cash flows from operating activities:
  Income before extraordinary (loss)...................................................  $    11,775  $    12,973
  Adjustments to reconcile income before extraordinary (loss) to net cash provided by
    operating activities:
      Depreciation and amortization....................................................       15,950       29,096
      Amortization of deferred debt issuance costs and accretion of debt discount......        1,651        2,940
      Compensation expense related to stock options and grants.........................        1,176          635
      Minority interest in earnings of subsidiaries....................................       14,307       11,834
      Provision for deferred taxes.....................................................            6        1,964
      Other, net.......................................................................           --         (616)
      Change in assets and liabilities, net of effects from companies acquired:
        Accounts receivable............................................................       (8,109)      29,690
        Inventories....................................................................        6,580      (27,530)
        Other current and non-current assets...........................................         (879)       1,619
        Accounts payable and accrued expenses..........................................        1,362      (22,158)
        Other long-term liabilities....................................................          (90)       2,746
                                                                                         -----------  -----------
Cash provided by operating activities..................................................       43,729       43,193
                                                                                         -----------  -----------
 
Cash flows from investing activities:
  Acquisitions, net of cash acquired...................................................     (101,424)  (1,109,679)
  Capital expenditures.................................................................      (15,379)     (40,021)
  Investment in marketable securities..................................................        1,430        1,078
  Advances to PolyVision Corporation...................................................         (140)      (6,501)
  Net proceeds from the sale of assets.................................................        5,726        2,087
                                                                                         -----------  -----------
Cash used for investing activities.....................................................     (109,787)  (1,153,036)
                                                                                         -----------  -----------
</TABLE>
 
  The accompanying notes are an integral part of these condensed consolidated
                             financial statements.
 
                                       7
<PAGE>
                    THE ALPINE GROUP, INC. AND SUBSIDIARIES
 
               CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)
 
                                  (UNAUDITED)
<TABLE>
<CAPTION>
                                                                                             NINE MONTHS ENDED
                                                                                                JANUARY 31,
                                                                                          ------------------------
<S>                                                                                       <C>         <C>
                                                                                             1998         1999
                                                                                          ----------  ------------
 
<CAPTION>
                                                                                               (IN THOUSANDS)
<S>                                                                                       <C>         <C>
Cash flows from financing activities:
  (Repayments) borrowings under revolving credit facilities, net........................  $  (28,083) $     45,219
  Repayment of short-term borrowings....................................................          --       (23,602)
  Long-term borrowings..................................................................     115,000     1,166,200
  Repayment of long-term borrowings.....................................................     (17,696)         (550)
  Proceeds from exercise of stock options...............................................       2,137         1,145
  Purchase of treasury shares...........................................................     (13,180)      (30,057)
  Dividends on subsidiary common stock..................................................      (1,011)       (1,776)
  Capitalized financing costs...........................................................      (3,335)      (31,306)
  Other.................................................................................         (59)         (747)
                                                                                          ----------  ------------
Cash provided by financing activities...................................................      53,773     1,124,526
                                                                                          ----------  ------------
Net (decrease) increase in cash and cash equivalents....................................     (12,285)       14,683
Cash and cash equivalents at beginning of period........................................      21,606        17,841
                                                                                          ----------  ------------
Cash and cash equivalents at end of period..............................................  $    9,321  $     32,524
                                                                                          ----------  ------------
                                                                                          ----------  ------------
 
Supplemental disclosures:
  Cash paid for interest................................................................  $   21,496  $     35,962
                                                                                          ----------  ------------
                                                                                          ----------  ------------
  Cash paid for income taxes............................................................  $   21,910  $     28,986
                                                                                          ----------  ------------
                                                                                          ----------  ------------
 
  Non cash financing activity:
    Exchange of preferred stock for common stock:
      Common stock issued...............................................................  $    1,500
                                                                                          ----------
                                                                                          ----------
      Preferred stock redeemed..........................................................  $    1,500
                                                                                          ----------
                                                                                          ----------
  Acquisition of business:
    Assets, net of cash acquired........................................................  $  186,920  $  1,599,305
    Liabilities assumed.................................................................     (50,704)     (423,097)
    Minority equity interest in net assets of subsidiary................................     (34,792)      (66,529)
                                                                                          ----------  ------------
    Net cash paid.......................................................................  $  101,424  $  1,109,679
                                                                                          ----------  ------------
                                                                                          ----------  ------------
</TABLE>
 
  The accompanying notes are an integral part of these condensed consolidated
                             financial statements.
 
                                       8
<PAGE>
                    THE ALPINE GROUP, INC. AND SUBSIDIARIES
 
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 
                                JANUARY 31, 1999
 
                                  (UNAUDITED)
 
1. BASIS OF PRESENTATION
 
    The accompanying unaudited condensed consolidated financial statements
include the accounts of The Alpine Group, Inc. and its majority-owned
subsidiaries ("Alpine" or the "Company"). Certain reclassifications have been
made to the prior period presentation to conform to the current period
presentation.
 
    Alpine's operations are carried out through its subsidiaries, Superior
TeleCom Inc. ("Superior TeleCom") and Premier Refractories International Inc.
("Premier"). Alpine operates in two primary industry segments: (i) wire and
cable products, including communication, electrical, and magnet wire and cable
and (ii) refractories, which include refractory products and services for the
iron and steel, glass, aluminum, cement and co-generation industries. The
results of operations of the wire and cable industry segment include the
operations of Superior TeleCom's subsidiaries: Superior Telecommunications, Inc.
("Superior"), and its 51% owned subsidiary Cables of Zion United Works Ltd.
("Cables of Zion"), an Israeli-based wire and cable manufacturer acquired on May
5, 1998 (see Note 4) and Essex International Inc. ("Essex"), a U.S.-based wire
and cable manufacturer, an 81% interest of which was acquired on November 27,
1998 (see Note 4). The results of operations of the refractory products segment
include the Company's 83.4% owned subsidiary Premier, which includes the
operations of American Premier Holdings, Inc. ("American Premier") which was
acquired on January 30, 1998 (see Note 6 to the Company's consolidated financial
statements in the Company's Annual Report on Form 10-K for the year ended April
30, 1998).
 
2. INVENTORIES
 
    At April 30, 1998 and January 31, 1999, the components of inventories were
as follows:
 
<TABLE>
<CAPTION>
                                                                       APRIL 30,   JANUARY 31,
                                                                          1998        1999
                                                                       ----------  -----------
<S>                                                                    <C>         <C>
                                                                           (IN THOUSANDS)
Raw materials........................................................  $   48,543   $  87,324
Work in process......................................................      19,214      56,227
Finished goods.......................................................      66,813     304,464
                                                                       ----------  -----------
                                                                          134,570     448,015
LIFO reserve.........................................................          --      (1,682)
                                                                       ----------  -----------
                                                                       $  134,570   $ 446,333
                                                                       ----------  -----------
                                                                       ----------  -----------
</TABLE>
 
    Inventories (with the exception of inventories at Essex) are stated at the
lower of cost or market, using the first-in, first-out ("FIFO") cost method.
 
    Inventories at Essex are stated at the lower of cost or market, using
principally the last-in, first-out ("LIFO") cost method. Inventories valued
using the LIFO method amounted to $221.3 million at January 31, 1999. An actual
valuation of inventory under the LIFO method can be made only at the end of each
year based on the inventory levels and costs at that time. Accordingly, interim
LIFO calculations must necessarily be based on management's estimates of
expected year-end inventory levels and costs. Because these are subject to many
forces beyond management's control, interim results are subject to the final
year-end LIFO inventory valuation.
 
                                       9
<PAGE>
                    THE ALPINE GROUP, INC. AND SUBSIDIARIES
 
        NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
 
                                JANUARY 31, 1999
 
                                  (UNAUDITED)
 
3. COMPREHENSIVE INCOME
 
    As of May 1, 1998, the Company adopted Statement of Financial Accounting
Standards ("SFAS") No. 130, "Reporting Comprehensive Income." The adoption of
this Statement had no impact on the Company's net income or stockholders'
equity. SFAS 130 establishes new rules for the reporting and display of
comprehensive income and its components. SFAS 130 requires that all changes in
equity during a period (except those resulting from investment by shareholders
and distribution to shareholders) be reported in the Company's financial
statements, and displayed with the same prominence as other financial statement
presentations. Financial statements for prior periods have been reclassified as
required.
 
    The components of comprehensive income for the nine months ended January 31,
1998 and 1999 were as follows:
 
<TABLE>
<CAPTION>
                                                                            1998       1999
                                                                          ---------  ---------
<S>                                                                       <C>        <C>
                                                                             (IN THOUSANDS)
Net income..............................................................  $  10,554  $  12,339
Foreign currency translation adjustment.................................      1,146     (1,722)
                                                                          ---------  ---------
Comprehensive income....................................................  $  11,700  $  10,617
                                                                          ---------  ---------
                                                                          ---------  ---------
</TABLE>
 
4. ACQUISITIONS
 
    ESSEX ACQUISITION
 
    On November 27, 1998, Superior TeleCom completed a cash tender offer for 81%
of the outstanding common shares of Essex International Inc. ("Essex"), at an
aggregate cash tender value of $770 million (the "Essex Acquisition"). Superior
TeleCom will acquire the remaining 19% of the Essex common stock through the
issuance of $167 million in Superior TeleCom 8 1/2% trust convertible
exchangeable preferred securities for the remaining outstanding Essex common
shares.
 
    In connection with the Essex Acquisition, Superior TeleCom entered into a
$1.15 billion amended and restated credit facility and a $200 million senior
subordinate credit facility (the "Superior TeleCom Credit Facilities"). Proceeds
from the Superior TeleCom Credit Facilities were used to (i) pay the cash
portion of the purchase price, (ii) repay certain Essex indebtness, (iii)
refinance Superior TeleCom's existing outstanding bank debt, and (iv) pay
related transaction expenses (See Note 6 for a further description of the
Superior TeleCom Credit Facilities).
 
    The acquisition was accounted for using the purchase method, and
accordingly, the results of operations of Essex have been included in the
consolidated financial statements on a prospective basis from the date of
acquisition. The purchase price has been allocated based upon preliminary
assessments of the fair values of assets and liabilities at the date of
acquisition and is subject to adjustment. The excess of the purchase price over
the net assets acquired will be amortized on a straight-line basis over 40
years. The acquisition of 81% of the Essex common shares resulted in
approximately $651 million of goodwill being recorded.
 
                                       10
<PAGE>
                    THE ALPINE GROUP, INC. AND SUBSIDIARIES
 
        NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
 
                                JANUARY 31, 1999
 
                                  (UNAUDITED)
 
4. ACQUISITIONS (CONTINUED)
    CABLES OF ZION AND CVALIM ACQUISITION
 
    On May 5, 1998, Superior TeleCom acquired 51% of the common stock of Cables
of Zion United Works Ltd. ("Cables of Zion"), an Israel-based cable and wire
manufacturer whose common stock is traded on the Tel Aviv Stock Exchange, for
approximately $25 million. Superior TeleCom has an option through May 5, 2000 to
purchase an additional 19% ownership interest in Cables of Zion at the same
purchase price per share paid for its initial 51% investment (as adjusted for
inflation). This acquisition (the "Cables of Zion Acquisition") was accounted
for using the purchase method, and accordingly, the results of operations of
Cables of Zion are included in the Company's consolidated financial statements
on a prospective basis from the date of acquisition. The purchase price was
allocated based upon the estimated fair values of assets and liabilities at the
date of acquisition and is subject to adjustment. The excess of the purchase
price over the net assets acquired was $2.2 million and is being amortized on a
straight-line basis over 30 years.
 
    On December 30, 1998, Superior TeleCom, through its 51% owned subsidiary
Cables of Zion, acquired the business and certain operating assets of Cvalim-The
Electric Wire and Cable Company of Israel Ltd. ("Cvalim") for an adjusted
purchase price of $41.2 million in cash. In connection with the acquisition,
Cables of Zion entered into an $83.0 million credit facility (the "Cables of
Zion Credit Facility") consisting of a $53.0 million term loan and $30.0 million
revolving line of credit. Proceeds from the Cables of Zion Credit Facility were
used to finance the acquisition, pay related fees and expenses and provide for
working capital requirements. The purchase price has been allocated based upon
estimates of the fair value of assets acquired and is subject to adjustment.
 
    PRO FORMA FINANCIAL DATA
 
    Unaudited condensed pro forma results of operations for the nine months
ended January 31, 1998 and 1999, which give effect to the Essex Acquisition,
Cables of Zion Acquisition and the American Premier Holdings, Inc. acquisition
(see Note 6 to the Company's Annual Report on Form 10-K for the year ended April
30, 1998) as if the transactions had occurred on May 1, 1997, are presented
below. The pro forma results of operations do not present the results of
operations of Cvalim, as they are not material to the Company's consolidated
results of operations. The pro forma amounts reflect acquisition-related
purchase accounting adjustments, including adjustments to depreciation and
amortization expense and interest expense on acquisition debt and certain other
adjustments, together with related income tax effects. The pro forma financial
information does not purport to be indicative
 
                                       11
<PAGE>
                    THE ALPINE GROUP, INC. AND SUBSIDIARIES
 
        NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
 
                                JANUARY 31, 1999
 
                                  (UNAUDITED)
 
4. ACQUISITIONS (CONTINUED)
of either the results of operations that would have occurred if the acquisition
had taken place at the beginning of the periods presented or of the future
results of operations.
 
<TABLE>
<CAPTION>
                                                                     NINE MONTHS ENDED
                                                                        JANUARY 31,
                                                                         PRO FORMA
                                                                 --------------------------
                                                                     1998          1999
                                                                 ------------  ------------
<S>                                                              <C>           <C>
                                                                       (IN THOUSANDS,
                                                                   EXCEPT PER SHARE DATA)
Net sales......................................................  $  2,141,310  $  1,862,345
Gross profit...................................................       424,044       378,673
Nonrecurring and unusual charges...............................         3,626        10,999
Income before income tax expense and minority interest.........        88,250        38,612
Income before extraordinary (loss).............................        17,847         6,899
Extraordinary (loss) on early extinguishment of debt...........        (1,221)         (634)
Net income applicable to common stock..........................        16,567         6,238
Net income (loss) per diluted share of common stock:
  Income before extraordinary (loss)...........................  $       0.93  $       0.36
  Extraordinary (loss) on early extinguishment of debt.........         (0.06)        (0.03)
                                                                 ------------  ------------
    Net income per diluted share of common stock...............  $       0.87  $       0.33
                                                                 ------------  ------------
                                                                 ------------  ------------
</TABLE>
 
5. NONRECURRING AND UNUSUAL CHARGES
 
    During the quarter ended January 31, 1999, the Company recorded nonrecurring
and unusual charges (net) of $3.2 million, consisting of (1) a $2.9 million
restructuring charge recorded by Cables of Zion relating to planned
manufacturing plant consolidations and overhead rationalization associated with
the acquisition of Cvalim, (2) $1.6 million in charges associated with the
review and evaluation of a planned implementation of a new enterprise resource
information system at Superior TeleCom and (3) $1.3 million in nonrecurring
income relating to the favorable resolution of certain statutory claims in the
Company's European refractories operations.
 
    In connection with the acquisition of American Premier Holdings, Inc., the
Company recorded a nonrecurring restructuring charge of $3.6 million during the
quarter ended January 31, 1998. The charge related to costs incurred at the
Company's existing refractory facilities in connection with the consolidation of
duplicative manufacturing capacity and administrative functions.
 
                                       12
<PAGE>
                    THE ALPINE GROUP, INC. AND SUBSIDIARIES
 
        NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
 
                                JANUARY 31, 1999
 
                                  (UNAUDITED)
 
6. DEBT
 
    At April 30, 1998 and January 31, 1999, long-term debt consisted of the
following:
 
<TABLE>
<CAPTION>
                                                                      APRIL 30,   JANUARY 31,
                                                                         1998         1999
                                                                      ----------  ------------
<S>                                                                   <C>         <C>
                                                                           (IN THOUSANDS)
Superior TeleCom revolving credit facility (a)......................  $   69,350  $     78,650
Superior TeleCom term loan A (a)....................................          --       500,000
Superior TeleCom term loan B (a)....................................          --       425,000
Superior TeleCom senior subordinated notes(a).......................          --       200,000
Cables of Zion term loan (b)........................................          --        40,000
Cables of Zion revolving credit facility (b)........................          --         1,200
Premier revolving credit facility (c)...............................      14,896        22,239
Premier term loan A (c).............................................      61,209        58,743
Premier term loan B (c).............................................      74,454        73,827
Premier term loan C (c).............................................      74,812        74,250
Premier floating rate note (d)......................................      60,000        60,000
Alpine revolving credit facility (e)................................          --        28,066
Alpine term loan (e)................................................      10,000        10,000
Other...............................................................      24,589        52,306
                                                                      ----------  ------------
  Total debt........................................................     389,310     1,624,281
Less current portion of long-term debt..............................       8,442        71,632
                                                                      ----------  ------------
                                                                      $  380,868  $  1,552,649
                                                                      ----------  ------------
                                                                      ----------  ------------
</TABLE>
 
    At January 31, 1999, the fair value of Alpine's debt, based on the quoted
market prices for the same or similar issues or on the current rates offered to
Alpine for debt of the same remaining maturities, approximated its recorded
value. The Company has entered into a number of interest rate swap and interest
rate cap agreements in order to limit the effect of changes in interest rates on
the Company's floating rate long-term obligations. Amounts currently due to or
from interest rate swap counterparties are recorded in interest expense in the
period in which they accrue. The Company does not enter into financial
instruments for trading or speculative purposes. The fair value of the interest
rate caps or swaps was not material at January 31, 1999.
 
                                       13
<PAGE>
                    THE ALPINE GROUP, INC. AND SUBSIDIARIES
 
        NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
 
                                JANUARY 31, 1999
 
                                  (UNAUDITED)
 
6. DEBT (CONTINUED)
    The aggregate maturities of long-term debt for the five years subsequent to
January 31, 1999 are as follows:
 
<TABLE>
<CAPTION>
FISCAL YEAR                                                                         AMOUNT
-------------------------------------------------------------------------------  -------------
<S>                                                                              <C>
                                                                                      (IN
                                                                                  THOUSANDS)
2000...........................................................................   $    71,632
2001...........................................................................        91,412
2002...........................................................................       144,534
2003...........................................................................       136,888
2004...........................................................................       242,063
Thereafter.....................................................................       937,752
                                                                                 -------------
                                                                                  $ 1,624,281
                                                                                 -------------
                                                                                 -------------
</TABLE>
 
------------------------
 
(a) In connection with the November 27, 1998 acquisition of Essex (see Note 4),
    Superior TeleCom amended and restated its existing credit facilities. The
    amended and restated Superior TeleCom credit facilities provide for total
    borrowing availability of up to $1.35 billion, consisting of a $225.0
    million revolving facility, a $500.0 million term loan A facility, a $425.0
    million term loan B facility and $200.0 million in senior subordinated
    notes.
 
    The revolving credit facility provides working capital financing for
    Superior TeleCom's principal subsidiaries. Borrowings under the facility are
    allowable up to $225 million in the aggregate. Interest on the outstanding
    balance is based upon LIBOR plus 3.0% or the base rate (prime) plus 2.0% and
    is payable quarterly. The facility terminates on May 27, 2004.
 
    The Superior TeleCom term loan A is repayable in varying installments over
    five and one-half years with interest payable quarterly based upon LIBOR
    plus 3.0% or the base rate (prime) plus 2.0%.
 
    The Superior TeleCom term loan B is repayable in varying installments over
    seven years with interest payable quarterly based upon LIBOR plus 3.75% or
    the base rate (prime) plus 2.75%.
 
    The Superior TeleCom senior subordinated notes are due in November 2006.
    Interest for the initial six months is LIBOR plus 4.25% or base rate (prime)
    plus 3.25%. On the six month anniversary of the borrowing date the interest
    rate will increase to LIBOR plus 4.5% or base rate (prime) plus 3.50%, and
    on the 12 month anniversary of the borrowing date the interest rate will
    increase to LIBOR plus 5.00% or base rate (prime) plus 4.00%. After the 12
    month anniversary of the borrowing date the interest rate will increase at
    the end of each three month period by 0.25% until reaching the maximum
    interest rate of LIBOR plus 5.5% or base rate (prime) plus 4.5%.
 
    All the borrowings under the above described credit arrangements are
    guaranteed by each of Superior TeleCom's domestic subsidiaries. The common
    stock of all domestic subsidiaries of Superior TeleCom and 65% of the common
    stock of its foreign subsidiaries have been pledged to secure the
    guarantees. The obligations under these credit arrangements are secured by
    substantially all of the assets of Superior TeleCom and its domestic
    subsidiaries.
 
                                       14
<PAGE>
                    THE ALPINE GROUP, INC. AND SUBSIDIARIES
 
        NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
 
                                JANUARY 31, 1999
 
                                  (UNAUDITED)
 
6. DEBT (CONTINUED)
(b) In connection with the December 30, 1998 acquisition of Cvalim, Cables of
    Zion entered into an $83.0 million credit facility consisting of a $53.0
    million term loan and a $30.0 million revolving credit facility. Proceeds
    from these facilities were used to finance the acquisitions of Cvalim, pay
    related transaction expenses and provide for ongoing working capital
    requirements. The term loan is repayable on December 31, 2008. Interest on
    the term loan is based upon LIBOR plus 1.0%; or the average of the gross
    yield to maturity of a series of State of Israel fixed rate bonds with a
    maturity of 18 - 30 months, plus 1.3%; or the lending bank's wholesale rate
    of interest for credits linked to the Israeli consumer price index plus
    0.7%.
 
    The revolving credit facility is available up to $30.0 million in the
    aggregate. Interest on the outstanding balance is based upon either LIBOR
    plus 0.4%; or the lending bank's prime rate minus 1.1%; or a rate to be
    agreed upon by the parties. The facility terminates on December 31, 2003.
 
(c) The Premier revolving credit facility represents borrowings by Premier's
    principal operating subsidiaries. Borrowings under the facility are
    allowable up to $50.0 million in the aggregate. Interest on the outstanding
    balance is based upon LIBOR plus 2.5% or the base rate (prime) plus 1.5% and
    is payable quarterly. The facility terminates on April 15, 2003.
 
    The Premier term loan A represents the dollar equivalent of pounds sterling
    borrowings and is repayable in varying installments over six years with
    interest payable quarterly based upon LIBOR plus 2.5% or the base rate
    (prime) plus 1.5%.
 
    The Premier term loan B is repayable in varying installments over eight
    years with interest payable quarterly based upon LIBOR plus 3.25% or the
    base rate (prime) plus 2.0%.
 
    The Premier term loan C is repayable in varying installments over eight
    years with interest payable quarterly based upon LIBOR plus 3.25% or the
    base rate (prime) plus 2.25%.
 
    All borrowings under the above described credit arrangements are guaranteed
    by Premier. All borrowings of Premier's European subsidiaries are guaranteed
    by Premier. The stock of all domestic subsidiaries of Premier and 65% of the
    stock of its foreign subsidiaries has been pledged to secure certain of
    these guarantees. The obligations under these credit arrangements are
    secured by substantially all of the assets of Premier and its European-based
    subsidiaries.
 
(d) The Premier floating rate note facility is due in 2006. Interest is based
    upon the base rate (prime) plus 3.0% or LIBOR plus 4.0%. Interest is payable
    quarterly in the case of base rate notes but may be payable over shorter
    periods in the case of LIBOR rate notes. The Premier floating rate notes are
    secured by a pledge of substantially all of the common stock of Premier's
    operating subsidiaries and are guaranteed by Alpine. The Alpine guaranty is
    secured by the pledge of the common stock of Premier owned by Alpine and a
    portion of the common stock of Superior TeleCom owned by Alpine with a
    market value of $60.0 million.
 
(e) On February 6, 1998, Alpine entered into a $25.0 million senior secured
    credit agreement (the "Alpine Credit Facility"). This agreement was amended
    and restated in October 1998 increasing the facility to $50.0 million,
    including a $10.0 million senior secured term loan and a $40.0 million
 
                                       15
<PAGE>
                    THE ALPINE GROUP, INC. AND SUBSIDIARIES
 
        NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
 
                                JANUARY 31, 1999
 
                                  (UNAUDITED)
 
6. DEBT (CONTINUED)
    revolving credit facility. Proceeds from these facilities are for ongoing
    general working capital and corporate needs of Alpine. Interest on the
    revolving credit facility is based upon LIBOR plus 1.5% or the base rate
    (prime) and interest on the term loan is based upon LIBOR plus 2.0% or the
    base rate (prime) plus 0.5%. Borrowings under the Alpine Credit Facility are
    secured by a pledge of certain shares of Superior TeleCom common stock owned
    by Alpine.
 
    In connection with the amendment and restatement of Superior TeleCom's
credit facilities, the Company recognized an extraordinary charge on the early
extinguishment of debt of $0.6 million, or $0.04 per diluted share (after the
impact of income taxes and minority interest).
 
    During the nine months ended January 1998, the Company retired $7.0 million
face amount ($6.4 million recorded amount) of its 12.25% Senior Secured Notes
and $5.0 million face amount ($4.7 million recorded amount) of Premier's 11%
Senior Notes. In connection with this early extinguishment of debt, the Company
recognized an after-tax extraordinary charge of $1.2 million or $0.06 per
diluted share.
 
    The above credit agreements contain certain restrictive covenants,
including, among other things, requirements to maintain certain financial
ratios, limitations on the amount of dividends the Company and its subsidiaries
are allowed to pay and restrictions on additional indebtedness.
 
7. SHORT-TERM BORROWINGS
 
    At January 31, 1999, short-term borrowings consist principally of $105.4
million in borrowings under the Essex accounts receivable securitization program
which provides for up to $150.0 million in short-term financing through the
issuance of secured commercial paper through a limited purpose subsidiary of
Essex (Essex Funding). Under the receivable securitization program, Essex has
granted a security interest in all its trade accounts receivable to secure
borrowings under the facility. The receivable securitization program expires on
November 30, 1999, although it may be extended for successive one-year periods
subject to agreement. Borrowings under this agreement bear interest at the
lenders commercial paper rate (which approximated 5.25% at January 31, 1999)
plus 0.35%.
 
                                       16
<PAGE>
                    THE ALPINE GROUP, INC. AND SUBSIDIARIES
 
        NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
 
                                JANUARY 31, 1999
 
                                  (UNAUDITED)
 
8. EARNINGS PER SHARE
 
    The computation of basic and diluted earnings per share for the three and
nine months ended January 31, 1998 and 1999 is as follows:
 
<TABLE>
<CAPTION>
                                                                                  THREE MONTHS ENDED JANUARY 31,
                                                               --------------------------------------------------------------------
                                                                             1998                               1999
                                                               ---------------------------------  ---------------------------------
                                                                  NET                 PER SHARE      NET                 PER SHARE
                                                                INCOME     SHARES      AMOUNT      INCOME     SHARES      AMOUNT
                                                               ---------  ---------  -----------  ---------  ---------  -----------
<S>                                                            <C>        <C>        <C>          <C>        <C>        <C>
                                                                             (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
Income attributable to common stock before extraordinary
  (loss).....................................................  $   1,322                          $   1,025
Less: preferred stock dividends..............................         (9)                                (9)
                                                               ---------                          ---------
Basic earnings per common share before extraordinary
  (loss).....................................................  $   1,313     16,990   $    0.08   $   1,016     16,095   $    0.06
                                                                                     -----------                             -----
                                                                                     -----------                             -----
Dilutive impact of stock options, warrants and grants........         --      2,118                      --      1,382
Dilution in subsidiary earnings from subsidiary stock
  options....................................................       (138)        --                      --         --
Assumed conversion of preferred stock........................          9         82                       9         50
                                                               ---------  ---------               ---------  ---------
Diluted earnings per common share before extraordinary
  (loss).....................................................  $   1,184     19,190   $    0.07   $   1,025     17,527   $    0.06
                                                               ---------  ---------  -----------  ---------  ---------       -----
                                                               ---------  ---------  -----------  ---------  ---------       -----
</TABLE>
 
<TABLE>
<CAPTION>
                                                                               NINE MONTHS ENDED JANUARY 31,
                                                            --------------------------------------------------------------------
                                                                          1998                               1999
                                                            ---------------------------------  ---------------------------------
                                                               NET                 PER SHARE      NET                 PER SHARE
                                                             INCOME     SHARES      AMOUNT      INCOME     SHARES      AMOUNT
                                                            ---------  ---------  -----------  ---------  ---------  -----------
<S>                                                         <C>        <C>        <C>          <C>        <C>        <C>
                                                                          (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
Income attributable to common stock before extraordinary
  (loss)..................................................  $  11,775                          $  12,973
Less: preferred stock dividends...........................        (59)                               (27)
                                                            ---------                          ---------
Basic earnings per common share before extraordinary
  (loss)..................................................  $  11,716     16,995   $    0.69   $  12,946     16,714   $    0.77
                                                                                  -----------                             -----
                                                                                  -----------                             -----
Dilutive impact of stock options, warrants and grants.....         --      1,888                      --      1,502
Dilution in subsidiary earnings from subsidiary stock
  options.................................................       (376)        --                    (339)        --
Assumed conversion of preferred stock.....................         59        148                      27         52
                                                            ---------  ---------               ---------  ---------
Diluted earnings per common share before extraordinary
  (loss)..................................................  $  11,399     19,031   $    0.62   $  12,634     18,268   $    0.69
                                                            ---------  ---------  -----------  ---------  ---------       -----
                                                            ---------  ---------  -----------  ---------  ---------       -----
</TABLE>
 
                                       17
<PAGE>
                    THE ALPINE GROUP, INC. AND SUBSIDIARIES
 
        NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
 
                                JANUARY 31, 1999
 
                                  (UNAUDITED)
 
9. STOCKHOLDER RIGHTS AGREEMENT
 
    On February 17, 1999, the Board of Directors declared a dividend
distribution of one preferred stock purchase right (a "Right") for each
outstanding share of the Company's Common Stock, (the "Common Shares"), payable
to the stockholders of record on March 1, 1999 (the "Record Date"). The Board of
Directors also authorized and directed the issuance of one Right with respect to
each Common Share issued thereafter until the Distribution Date (as defined
below) (or the earlier redemption or expiration of the Rights).
 
    Except as set forth below, each Right, when it becomes exercisable, entitles
the holder to purchase one one-hundredth of a share of Series A Junior
Participating Preferred Stock, $1.00 par value (the "Preferred Shares"), at a
price of $75.00, subject to adjustment (the "Purchase Price"). Initially, the
Rights will be attached to all certificates representing Common Shares then
outstanding, and no separate Right Certificates will be distributed. The Rights
will separate from the Common Shares upon the earliest to occur of (i) the tenth
day after a person or entity (a "Person") or group of affiliated or associated
Persons (a "Group") having acquired beneficial ownership of 15% or more of the
outstanding Common Shares (except pursuant to a Permitted Offer, as hereinafter
defined); or (ii) 10 business days (or such later date as the Board of Directors
may determine) following the commencement of, or announcement of an intention to
make, a tender offer or exchange offer the consummation of which would result in
a Person or Group becoming an Acquiring Person (as hereinafter defined) (the
earliest of such dates being called the "Distribution Date"). A Person or Group
whose acquisition of Common Shares causes a Distribution Date pursuant to clause
(i) above is an "Acquiring Person". The date that a Person or Group becomes an
Acquiring Person is the "Stock Acquisition Date".
 
    Notwithstanding the foregoing, stockholders who currently own in excess of
15% of the outstanding Common Shares and their affiliates, associates and
permitted transferees will not be deemed to be Acquiring Persons unless they
acquire additional Common Shares equal to more than 20% of the number of Common
Shares owned by them on the date of the Rights Agreement.
 
    In addition, a Person who acquires Common Shares pursuant to a tender or
exchange offer which is for all outstanding Common Shares at a price and on
terms which the Board of Directors determines to be adequate and in the best
interests of the Company and its stockholders (a "Permitted Offer") will not be
deemed to be an Acquiring Person.
 
    The Preferred Shares purchasable upon exercise of the Rights will have a
minimum preferential quarterly dividend of $1.00 per share, but will be entitled
to receive, in the aggregate, a dividend of 100 times the dividend declared on
the Common Shares. In the event of liquidation, the holders of the Preferred
Shares will be entitled to receive a minimum liquidation payment of $100 per
share, but will be entitled to receive an aggregate liquidation payment equal to
100 times the payment made per Common Share. Each Preferred Share will have 100
votes, voting together with the Common Shares. In the event of any merger,
consolidation or other transaction in which Common Shares are exchanged, each
Preferred Share will be entitled to receive 100 times the amount and type of
consideration received per Common Share. The rights of the Preferred Shares are
subject to certain customary anti-dilution provisions.
 
                                       18
<PAGE>
                    THE ALPINE GROUP, INC. AND SUBSIDIARIES
 
        NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
 
                                JANUARY 31, 1999
 
                                  (UNAUDITED)
 
9. STOCKHOLDER RIGHTS AGREEMENT (CONTINUED)
    The Rights will expire at the close of business February 17, 2009, unless
earlier redeemed by the Company as described below.
 
    In the event that any person becomes an Acquiring Person, each holder of
Rights will thereafter have the right (the "Flip-In Right") to receive, upon
exercise of such Rights, the number of Common Shares (or, in certain
circumstances, other securities of the Company) having a value (immediately
prior to such triggering event) equal to two times the aggregate exercise price
of such Rights.
 
    The Board, at its option, may at any time after any Person becomes an
Acquiring Person exchange all or part of the then issued and outstanding Rights
for Common Shares at an exchange ratio of one Common Share per Right in lieu of
the Flip-In Right, provided no Person is the beneficial owner of 50% or more of
the Common Shares at the time of such exchange.
 
10. NEW ACCOUNTING PRONOUNCEMENTS
 
    In June 1997, the Financial Accounting Standards Board ("FASB") issued SFAS
No. 131, "Disclosures about Segments of an Enterprise and Related Information."
This Statement, which will be effective for the Company as of April 30, 1999,
establishes standards for the way enterprises report information about operating
segments in annual financial statements and requires that enterprises report
selected information about operating segments in interim financial reports.
 
    In June 1998, FASB issued SFAS No. 133, "Accounting for Derivative
Instruments and Hedging Activities." This Statement, which will be effective for
the Company's fiscal year beginning May 1, 2000, establishes accounting and
reporting standards for derivative instruments and requires recognition of all
derivatives as either assets or liabilities in the statement of financial
position and measurement of those instruments at fair value. The Company does
not believe the effect of adoption will be material.
 
                                       19
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
 
GENERAL
 
    The Alpine Group, Inc. (the "Company" or "Alpine"), through its
subsidiaries, Superior TeleCom Inc. ("Superior TeleCom") and Premier
Refractories International Inc. ("Premier"), operates in two primary industry
segments: (i) wire and cable products including communication, electrical, and
magnet wire and cable and (ii) refractories which include refractory products
and services for the iron and steel, glass, aluminum, cement and co-generation
industries. The results of operations of the wire and cable segment include the
operations of Superior TeleCom's subsidiaries: Superior Telecommunications Inc.,
and its 51% owned subsidiary, Cables of Zion United Works Ltd. ("Cables of
Zion"), an Israeli-based cable and wire manufacturer, acquired on May 5, 1998
(see Note 4 to the accompanying unaudited Condensed Consolidated Financial
Statements) and Essex International Inc. ("Essex"), a U.S.-based wire and cable
manufacturer, an 81% interest in which was acquired on November 27, 1998 (see
Note 4 to the accompanying unaudited Condensed Consolidated Financial
Statements). The results of operations of the refractory products segment
include the Company's 83.4% owned subsidiary, Premier, which includes the
operations of American Premier Holdings, Inc. ("American Premier") which was
acquired on January 30, 1998 (see Note 6 to the Company's consolidated financial
statements in the Company's Annual Report on Form 10-K for the year ended April
30, 1998).
 
RESULTS OF OPERATIONS
 
    The following table compares operating statement data for Alpine on an
industry segment basis. Such industry segment operating data is presented on an
historical reporting basis for the three and nine months ended January 31, 1998
and 1999.
<TABLE>
<CAPTION>
                                                                     THREE MONTHS ENDED      NINE MONTHS ENDED
                                                                        JANUARY 31,             JANUARY 31,
                                                                   ----------------------  ----------------------
<S>                                                                <C>         <C>         <C>         <C>
                                                                      1998        1999        1998        1999
                                                                   ----------  ----------  ----------  ----------
 
<CAPTION>
                                                                               (DOLLARS IN THOUSANDS)
<S>                                                                <C>         <C>         <C>         <C>
Net sales:
  Wire and cable.................................................  $  113,661  $  326,714  $  384,106  $  629,685
  Refractories...................................................      92,843     114,039     262,426     367,672
                                                                   ----------  ----------  ----------  ----------
    Consolidated.................................................     206,504     440,753     646,532     997,357
 
Gross profit:
  Wire and cable.................................................  $   21,680  $   63,169  $   71,364  $  130,937
  Refractories...................................................      15,747      24,565      49,903      82,610
                                                                   ----------  ----------  ----------  ----------
    Consolidated.................................................      37,427      87,734     121,267     213,547
</TABLE>
 
                                       20
<PAGE>
<TABLE>
<CAPTION>
                                                                     THREE MONTHS ENDED      NINE MONTHS ENDED
                                                                        JANUARY 31,             JANUARY 31,
                                                                   ----------------------  ----------------------
                                                                      1998        1999        1998        1999
                                                                   ----------  ----------  ----------  ----------
                                                                               (DOLLARS IN THOUSANDS)
<S>                                                                <C>         <C>         <C>         <C>
Gross profit percentage:
  Wire and cable.................................................        19.1%       19.3%       18.6%       20.8%
  Refractories...................................................        17.0        21.5        19.0        22.5
    Consolidated.................................................        18.1        19.9        18.8        21.4
 
Selling, general and administrative expenses:
  Wire and cable.................................................  $    4,401  $   28,225  $   13,655  $   42,436
  Refractories...................................................      10,225      17,473      31,092      55,821
  Corporate and other expenses...................................       3,233       4,975       7,468      10,916
                                                                   ----------  ----------  ----------  ----------
    Consolidated.................................................      17,859      50,673      52,215     109,173
 
Amortization of goodwill:
  Wire and cable.................................................  $      428  $    2,969  $    1,288  $    3,853
  Refractories...................................................         639       1,202       1,872       3,634
                                                                   ----------  ----------  ----------  ----------
    Consolidated.................................................       1,067       4,171       3,160       7,487
 
Operating income (a):
  Wire and cable.................................................  $   16,851  $   31,975  $   56,421  $   84,648
  Refractories...................................................       4,883       5,890      16,939      23,155
  Corporate and other expenses...................................      (3,233)     (4,975)     (7,468)    (10,916)
                                                                   ----------  ----------  ----------  ----------
    Consolidated.................................................  $   18,501  $   32,890  $   65,892  $   96,887
                                                                   ----------  ----------  ----------  ----------
                                                                   ----------  ----------  ----------  ----------
</TABLE>
 
------------------------
 
(a) Operating income for the quarter and nine months ended January 1998 and 1999
    presented above excludes the impact of nonrecurring and unusual charges of
    $3.6 million and $3.2 million, respectively. (See Note 5 to the accompanying
    unaudited Condensed Consolidated Financial Statements.)
 
IMPACT OF COPPER PRICE FLUCTUATIONS ON OPERATING RESULTS
 
    Copper is one of the principal raw materials used in the wire and cable
segment. Fluctuations in the price of copper do affect per unit product pricing
and related revenues. However, the cost of copper has not had a material impact
on profitability due to the ability of the Company, in most cases, to adjust
product pricing in order to properly match the price of copper billed with the
copper cost component of its inventory shipped.
 
                                       21
<PAGE>
WIRE AND CABLE--RESULTS OF OPERATIONS
 
    Superior TeleCom's net sales for the quarter ended January 1999 were $326.7
million, representing an increase of $213.1 million, or 187.5%, as compared to
the same period in the prior fiscal year. For the nine months ended January
1999, net sales were $629.7 million, representing an increase of $245.6 million,
or 63.9%, as compared to the same period in the prior fiscal year. Adjusted to a
constant copper value, the comparative percentage increase in net sales for the
quarter and nine months ended January 1999 was 219.9% and 87.9%, respectively.
The increase in net sales for the quarter and nine months ended January 1999
included $250.7 million and $287.7 million, respectively, in net sales
contributed by the acquired operations of Essex and Cables of Zion. Superior
TeleCom's North American communications wire and cable operations (excluding the
impact of the Essex and Cables of Zion acquisitions) experienced a comparative
decrease in net sales on a constant copper value basis for the quarter ended
January 1999 of approximately 17% (or approximately $17.0 million) and a
comparative increase in net sales of 8% (or approximately $27.0 million) for the
nine months ended January 1999. The increase in the North American
communications wire and cable revenues for the nine months ended January 1999
reflected continued strong demand for copper communications wire and cable
products resulting from the growth in copper based telephone access lines and
increased maintenance requirements by Superior TeleCom's major telephone company
customers. The comparative decrease in the North American copper communications
wire and cable sales for the quarter ended January 1999 was due to the impact of
seasonal procurement patterns and year end budgeting constraints experienced by
several of the Company's customers which was further impacted by severe weather
conditions in many regions of the United States during January 1999.
 
    Gross profit increased by $41.5 million, or 191.4%, to $63.2 million for the
quarter ended January 1999 as compared to the same period in the prior fiscal
year. For the nine months ended January 1999, gross profit increased by $59.6
million, or 83.5%, to $130.9 million as compared to the same period in the prior
fiscal year. The comparative increase in gross profit for the quarter and nine
months ended January 1999 included incremental gross profit contribution by
Essex and Cables of Zion of $43.5 million and $49.8 million, respectively. The
North American communications wire and cable operations experienced a
comparative decrease in gross profits of $1.3 million in the quarter ended
January 1999 and a comparative increase in gross profit of $10.6 million for the
nine months ended January 1999. Gross margin, based on actual sales, was 19.3%
and 20.8% for the quarter and nine months ended January 1999, respectively, as
compared to 19.1% and 18.6%, respectively, for the quarter and nine months ended
January 1998. Adjusted to a constant copper sales value of $0.80 per pound, the
gross margin decreased to 18.8% and 19.8%, respectively, for the quarter and
nine months ended January 1999, as compared to 20.6% and 20.3%, respectively,
for the quarter and nine months ended January 1998. The decrease in copper
adjusted gross margin for the January 1999 three month and nine month periods
was attributable to the inclusion of the results of operations of Essex and
Cables of Zion, both of which operate in industries and markets with lower
margins than those historically generated by the Company's North American
communications wire and cable business. The North American wire and cable
business gross margin increased on a constant copper adjusted basis by 2.5% and
1.4%, respectively, for the quarter and nine months ended January 1999 as
compared to the quarter and nine months ended January 1998. This increase in
gross margin reflected continued reductions in manufacturing cost resulting from
production efficiencies, lower raw material prices and improved cost absorption
resulting from increased production volumes.
 
    SG&A expense for the quarter ended January 1999 was $28.2 million,
representing an increase of $23.8 million, as compared to the same period in the
prior fiscal year. For the nine months ended January 1999, SG&A expense was
$42.4 million, representing an increase of $28.8 million, as compared to the
same period in the prior fiscal year. The increase in SG&A expense for the
quarter and nine months ended January 1999 was due primarily to the inclusion of
$23.7 million and $27.0 million, respectively, in SG&A expense from Essex and
Cables of Zion and an increase of $0.2 million and
 
                                       22
<PAGE>
$1.8 million, respectively, in the North American communication wire and cable
operations SG&A expense. The Company anticipates that the consolidation of the
acquired Essex operations with Superior TeleCom as well as the consolidation of
the Cables of Zion and Cvalim will result in SG&A expense savings which will
reduce the level of SG&A expense as a percentage of sales during fiscal 2000.
 
    Operating income for the quarter ended January 1999 was $32.0 million,
representing an increase of $15.1 million, or 89.8%, as compared to the same
period in the prior fiscal year. For the nine months ended January 1999,
operating income was $84.6 million, representing an increase of $28.2 million,
or 50.0%, as compared to the same period in the prior fiscal year. The increase
in operating income for the quarter ended January 1999 resulted primarily from
the inclusion of the results of operations of Essex and Cables of Zion, offset
by lower net sales and lower operating income generated by the North American
communication wire and cable operations. The comparative increase in operating
income for the nine months ended January 1999 resulted from the inclusion of the
results of operations of Essex and Cables of Zion as well as an $8.7 million (or
16%) increase in operating income in the North American communications wire and
cable business.
 
REFRACTORIES--RESULTS OF OPERATIONS
 
    Premier's net sales for the quarter ended January 1999 were $114.0 million,
representing an increase of $21.2 million, or 22.8%, as compared to the same
period in the prior fiscal year. For the nine months ended January 1999, net
sales were $367.7 million, representing an increase of $105.2 million, or 40.1%,
as compared to the same period in the prior fiscal year. The increase in net
sales for the quarter and nine months ended January 1999 was attributable to the
inclusion of the acquired operations of American Premier, offset by a decline
during the current fiscal year in shipments to U.S. and European steel industry
customers, which represent approximately 50% of Premier's total sales. The
current fiscal year decline in steel-related refractory product shipments is
principally the result of a reduction in production by U.S. and European steel
producers due to a substantial increase in low cost steel imports from Asia,
South America and Russia resulting from the continuing economic crisis
experienced in these regions. The U.S. Commerce Department has threatened
recently to impose tariff protection in order to reduce the level of low priced
steel imports which have eroded domestic steel production. As a result of the
anticipated tariff protection, the Company expects domestic steel production to
increase and for shipments of refractory products to steel customers to improve
during the latter half of calendar 1999. In addition to the reduction in
refractory product shipments, the decline in steel production has also impacted
Premier's construction division due to delays by the steel producers in
incurring major maintenance and capital projects until future steel production
levels become more determinable.
 
    Gross profit for the quarter ended January 1999 was $24.6 million,
representing an increase of $8.8 million, or 56.0%, as compared to the same
period in the prior fiscal year. For the nine months ended January 1999, gross
profit was $82.6 million, representing an increase of $32.7 million, or 65.5%,
as compared to the same period in the prior fiscal year. The combined gross
margin for the quarter and nine months ended January 1999 was 21.5% and 22.5%,
respectively, as compared to 17.0% and 19.0%, respectively, for the same periods
in the prior fiscal year. The comparative increase in gross margin in the
quarter and nine months ended January 1999 resulted from: (i) the inclusion of
American Premier's higher margin product lines in fiscal 1999, (ii) higher
margins generated in the Company's construction division during the early
portion of fiscal 1999, and (iii) cost reductions resulting from the integration
of the American Premier acquisition. The increase in gross margin was offset
during recent months by a decline in selling prices resulting primarily from the
competitive environment in the steel industry and reduced absorption of overhead
due to the recent decline in production volumes.
 
                                       23
<PAGE>
    SG&A expense for the quarter ended January 1999 was $17.5 million,
representing an increase of $7.2 million, or 70.9%, as compared to the same
period in the prior fiscal year. For the nine months ended January 1999, SG&A
expense was $55.8 million, representing an increase of $24.7 million, or 79.5%,
as compared to the same period in the prior fiscal year. The increase in SG&A
expense during the fiscal 1999 three month and nine month periods was
attributable to the inclusion of American Premier, offset by a comparative
reduction in SG&A expense in Premier's European operations ("Premier Europe")
for the quarter and nine months ended January 1999. The reduction in SG&A
expense at Premier Europe resulted from continuing cost reduction initiatives
implemented subsequent to the acquisition of Premier Europe in April 1997. In
connection with the American Premier acquisition in January 1998, Premier's
North American operations effected a restructuring plan that included the
consolidation of certain administrative and sales functions. This plan has
resulted in an annual decline of approximately $2.3 million in SG&A expense as
compared to the fourth quarter of fiscal 1998.
 
    Operating income for the quarter ended January 1999 was $5.9 million,
representing an increase of $1.0 million, or 20.6%, as compared to the same
period in the prior fiscal year. For the nine months ended January 1999,
operating income was $23.2 million, representing an increase of $6.2 million, or
36.7%, as compared to the same period in the prior fiscal year. The increase in
operating income resulted primarily from the inclusion of American Premier for
the quarter and nine months ended January 1999, offset by the current fiscal
year impact of lower shipment volumes and selling prices to the Company's steel
industry customers.
 
CONSOLIDATED RESULTS OF OPERATIONS
 
    The impact of the acquisitions of Essex, American Premier and Cables of Zion
resulted in an increase in consolidated net sales of $234.2 million, or 113.4%,
for the quarter ended January 1999 and of $350.8 million, or 54.3%, for the nine
months ended January 1999, as compared to the same periods in the prior fiscal
year. The growth in net sales and an increase in consolidated gross margin, gave
rise to a consolidated comparative increase in gross profit of $50.3 million, or
134.4%, for the quarter ended January 1999 and of $92.3 million, or 76.1%, for
the nine months ended January 1999, as compared to the same periods in the prior
fiscal year.
 
    Consolidated SG&A expense for the quarter ended January 1999 was $50.7
million, representing an increase of $32.8 million, or 183.7%, as compared to
the same period in the prior fiscal year. For the nine months ended January
1999, consolidated SG&A expense was $109.2 million, representing an increase of
$57.0 million, or 109.1%, as compared to the same period in the prior fiscal
year. The increase in consolidated SG&A expense resulted primarily from the
inclusion of American Premier, Essex and Cables of Zion for the current fiscal
periods. The Company also incurred higher corporate SG&A expenses in the current
fiscal year, which was attributable to the level of the Company's acquisition
and transactional activities during the current year along with the increased
scale and breadth of the Company's operations.
 
    During the quarter ended January 1999, the Company recorded nonrecurring and
unusual charges (net) of $3.2 million ($0.3 million, or $0.01 per diluted share,
after tax and after the impact of minority interest). The charge consisted of
(1) a restructuring charge recorded by Cables of Zion for planned manufacturing
plant consolidations and overhead rationalizations associated with the
acquisition of Cvalim (see Note 4 to the accompanying Condensed Consolidated
Financial Statements), (2) $1.6 million in charges associated with the review
and evaluation of a planned implementation of a new enterprise resource
management information system at Superior TeleCom and (3) nonrecurring income
related to the favorable resolution of certain statutory claims in the Company's
European refractories operations. During the quarter ended January 1998, the
Company recorded a nonrecurring restructuring charge of $3.6 million ($2.2
million, or $0.11 per diluted share, after tax). This restructuring charge
related to costs incurred in the consolidation of manufacturing capacity and
 
                                       24
<PAGE>
administrative functions in connection with the integration of American
Premier's operations with Premier's existing North American operations.
 
    Consolidated operating income was $29.7 million for the quarter ended
January 1999, representing an increase of $14.8 million, or 99.8%, as compared
to the same period in the prior fiscal year. For the nine months ended January
1999, consolidated operating income was $93.7 million, representing an increase
of $31.5 million, or 50.5%, as compared to the same period in the prior fiscal
year. Excluding the impact of the aforementioned restructuring charge, operating
income for the quarter and nine month periods ended January 1999 was $32.9
million and $96.9 million, respectively, as compared to $18.5 million and $65.9
million for the quarter and nine months ended January 1998, respectively. The
increase in operating income for the quarter and nine months ended January 1999
was primarily the result of the inclusion of the acquired operations of American
Premier, Essex and Cables of Zion. In addition, operating income for the nine
months ended January 1999 was complimented by the growth in net sales and
operating profit in Superior's North American communications wire and cable
operations.
 
    Consolidated interest expense for the quarter ended January 1999 was $30.9
million, representing an increase of $24.0 million, as compared to the same
period in the prior fiscal year. For the nine months ended January 1999,
consolidated interest expense was $51.5 million, representing an increase of
$29.8 million, as compared to the same period in the prior fiscal year. The
increase in consolidated interest expense reflects the increase in consolidated
debt resulting from the acquisitions of American Premier, Essex, and Cables of
Zion (see Note 6 to the accompanying Condensed Consolidated Financial
Statements).
 
    Consolidated other income (net) for the quarter ended January 1999 was $1.0
million, representing a decrease of $0.1 million as compared to the same period
in the prior fiscal year. For the nine months ended January 1999, consolidated
other income (net) was $1.3 million, representing a decrease of $1.4 million as
compared to the same period in the prior fiscal year, with such decrease
primarily the result of lower investment income on marketable securities and
foreign currency translation losses related to Cables of Zion.
 
    Provision for income taxes for the quarter and nine months ended January
1999 was $1.2 million and $18.7 million, respectively, as compared to the
provision for income taxes of $3.5 million and $17.2 million, respectively, for
the same periods in the prior fiscal year. The impact of non-deductible goodwill
amortization resulted in the comparative increase in the Company's effective tax
rate for the quarter and nine months ended January 1999.
 
    A minority interest benefit of $2.4 million was recorded during the quarter
ended January 1999 and a minority interest charge of $4.2 million was recorded
for the quarter ended January 1998. For the nine months ended January 1999 and
1998 the minority charge was $11.8 million and $14.3 million, respectively.
Minority interest represents the interests of minority stockholders in the net
income or loss of Superior TeleCom (including its minority interest in Essex and
Cables of Zion) and Premier. The minority benefit recorded for the three months
ended January 31, 1999 was impacted by a $10.0 million investment advisory fee
paid by Superior TeleCom to Alpine in connection with the Essex Acquisition.
While the consolidated operating income was not impacted by this transaction (ie
the transaction was eliminated as an intercompany revenue and expense item),
Superior TeleCom's earnings were reduced by the after tax impact of this charge
for purposes of calculating minority interest in earnings of subsidiaries. After
netting expenses incurred by Alpine related to this transaction, the after tax
benefit of such fee paid to Alpine amounted to $1.2 million, or $0.07 per
diluted share, for the three month and nine month periods ended January 31,
1999.
 
    Net income attributable to common stock before extraordinary loss and
nonrecurring charges was $1.3 million, or $0.07 per diluted share, for the
quarter ended January 1999 as compared to net income attributable to common
stock before extraordinary loss and nonrecurring charges of $3.4 million, or
 
                                       25
<PAGE>
$0.18 per diluted share, for the same period in the prior fiscal year. For the
nine months ended January 1999, net income attributable to common stock before
extraordinary loss and nonrecurring charges was $13.3 million, or $0.70 per
diluted share, as compared to net income attributable to common stock before
extraordinary loss and nonrecurring charges of $13.9 million, or $0.73 per
diluted share, for the same period in the prior fiscal year.
 
LIQUIDITY AND CAPITAL RESOURCES
 
    For the nine months ended January 1999, the Company generated $43.2 million
in cash flow from operating activities consisting of $58.8 million in cash flow
generated from operations (net income plus non-cash charges) reduced by $15.6
million in cash flow used for net working capital changes. The major working
capital changes included a $27.5 million increase in inventories and a $22.2
million decrease in accounts payable and accrued expenses, offset by a $29.7
million decrease in accounts receivable. Cash used for investing activities
amounted to $1.2 billion consisting principally of $829.7 million in cash paid
for the acquisition of Essex, Cables of Zion and Cvalim, $280 million paid to
refinance Essex's existing credit lines and $40.0 million in capital
expenditures. Cash provided by financing activities amounted to $1.1 billion
consisting principally of $1.2 billion in borrowings under revolving credit
facilities and various term loans and $30.1 million used for the purchase of
Company and subsidiary common stock.
 
    At January 31, 1999, the Company's consolidated long-term debt was $1.6
billion, with the components of such debt, on an entity basis, consisting of the
following:
 
<TABLE>
<CAPTION>
                                                                                    IN MILLIONS
                                                                                    -----------
<S>                                                                                 <C>
Long-term debt obligations of:
  Superior TeleCom and subsidiaries...............................................   $ 1,279.2
  Premier and subsidiaries........................................................       294.8
  Alpine corporate................................................................        50.2
                                                                                    -----------
                                                                                     $ 1,624.2
                                                                                    -----------
                                                                                    -----------
</TABLE>
 
    The Company, on a consolidated basis, had $47.1 million in cash, cash
equivalents and marketable securities at January 31, 1999. Of such amount, $3.2
million was maintained by Premier and its subsidiaries, $19.6 million by
Superior TeleCom and its subsidiaries, and $24.3 million at the Alpine corporate
level.
 
    As discussed in Note 4 to the accompanying unaudited Condensed Consolidated
Financial Statements, Superior TeleCom completed the acquisition of 81% of Essex
on November 27, 1998. In connection with the acquisition Superior Telecom
entered into a $1.15 billion amended and restated credit agreement ("Credit
Agreement") and a $200 million senior subordinated credit agreement ("Sub
Notes"). Proceeds from the financing were used to (i) pay $770 million,
representing the cash portion of the Essex acquisition purchase price, (ii)
refinance approximately $84 million under Superior's existing credit facility,
(iii) refinance approximately $280 million of Essex's existing credit
facilities, and (iv) pay related transaction expenses. Obligations under the
Credit Agreement and the Sub Notes are secured by substantially all of the
assets of Superior TeleCom and its domestic subsidiaries and the Credit
Agreement is also secured by the stock of Superior TeleCom's domestic
subsidiaries and 65% of its principal foreign subsidiaries. The Credit Agreement
and Sub Notes contain customary performance and financial covenants. At January
31, 1999 Superior TeleCom had $145 million in excess availability under its
revolving credit facility.
 
    Superior TeleCom, through Essex, has financing availability through a
receivable securitization program providing for up to $150.0 million in short
term financing through the issuance of secured commercial paper. The receivable
securitization program expires on November 30, 1999 although it
 
                                       26
<PAGE>
may be extended for successive one-year periods subject to agreement. At January
31, 1999, $105.4 million was outstanding under this program at an interest rate
of 5.6%.
 
    As discussed in Note 4 to the accompanying unaudited Condensed Consolidated
Financial Statements, Superior TeleCom acquired 51% of Cables of Zion on May 5,
1998 and financed the $25.0 million purchase price through borrowings under its
existing revolving credit facility. On December 30, 1998, Cables of Zion
completed the acquisition of the business and certain operating assets of Cvalim
for $41.2 million. In connection with the acquisition, Cables of Zion entered
into a $83.0 million credit facility consisting of a term loan amounting to
$53.0 million and a $30.0 million revolving credit facility. Proceeds from the
financing were used to finance the acquisition, pay related expenses and provide
for working capital requirements of Cables of Zion. Obligations under the credit
facility are secured by all of the assets of Cables of Zion. The credit facility
contains customary performance and financial covenants. At January 31, 1999,
Cables of Zion had $30 million in excess availability under its revolving credit
facility.
 
    Superior TeleCom's principal debt service commitments for the next 12 months
amount to $63.0 million and capital expenditures are expected to approximate
$65.0-$75.0 million. Management anticipates that Superior TeleCom will generate
sufficient cash flows from its operating activities to meet its annual principal
debt service and capital expenditure commitments. However, should any shortfall
arise due to working capital fluctuations or other factors, funds available
under Superior TeleCom's revolving credit facility should be sufficient to cover
such shortfall.
 
    As of January 31, 1999, Premier had $26.1 million in availability under its
revolving credit facility and an additional $3.2 million in cash and cash
equivalents. Premier's principal debt service commitments for the next 12 months
amount to $8.7 million and capital expenditures are expected to approximate
$12.0 - $15.0 million. Management anticipates that Premier will generate
sufficient cash flows from its operating activities to meet its annual principal
debt service and capital expenditure commitments. However, should any shortfall
arise due to working capital fluctuations or other factors, funds available
under Premier's revolving credit facility should be sufficient to cover such
shortfall.
 
    Alpine holds, in addition to corporate cash, cash equivalents and marketable
securities, approximately 10.1 million common shares (representing 50.1% of the
outstanding common shares) of Superior TeleCom (NYSE:SUT) which, based on the
closing price on March 16, 1999, had a market value of approximately $216.8
million and a consolidated carrying value as recorded by Alpine (net of minority
interest) of approximately $46.1 million. Superior TeleCom common stock owned by
Alpine with a market value of approximately $81.0 million is pledged as
collateral to secure certain debt of Alpine and Premier.
 
    The Superior TeleCom, Cables of Zion and Premier credit arrangements include
restrictions and/or limitations on dividends or other payments by such
subsidiaries to Alpine. For the next 12 month period, Alpine expects to fund its
corporate activities (which includes approximately $12.0 - $13.0 million in
estimated cash corporate overhead and interest expense) from allowable
management fees payable by its subsidiaries to Alpine, cash dividends received
from Superior TeleCom and from interest income, with any shortfall funded from
Alpine's existing corporate cash, cash equivalents and marketable securities
reserves.
 
DERIVATIVE FINANCIAL INSTRUMENTS
 
    To a limited extent, the Company uses forward fixed price contracts and
derivative financial instruments to manage foreign currency exchange and
commodity price risks. To protect the Company's anticipated cash flows from the
risk of adverse foreign currency exchange fluctuations for firm sales and
purchase commitments, the Company enters into foreign currency forward exchange
contracts. Superior TeleCom's principal raw material, copper, experiences marked
fluctuations in market prices, thereby subjecting the Company to copper price
risk with respect to copper repurchases on fixed customer sales
 
                                       27
<PAGE>
contracts. Forward fixed price contracts and derivative financial instruments in
the form of copper futures contracts are utilized by the Company to reduce those
risks. The Company does not hold or issue financial instruments for financial or
trading purposes. The Company is exposed to credit risk in the event of
nonperformance by counterparties for foreign exchange forward contracts, metal
forward price contracts and metals futures contracts; however, the Company does
not anticipate nonperformance by any of these counterparties. The amount of such
exposure is generally the unrealized gains with respect to the underlying
contracts.
 
YEAR 2000
 
OVERVIEW
 
    The year 2000 ("Y2K") problem is the result of computer programs having been
written using two digits (rather than four) to define the applicable year, thus
not properly recognizing dates after December 31, 1999. The six-digit date
(YYMMDD) has become the standard for date representations and is embedded in a
multitude of computer programs and computer chips. Information Technology (IT)
hardware, "embedded" technology, such as microprocessors, or software that is
date-sensitive may recognize a date using "00" as the year 1900 rather than the
year 2000, which could result in miscalculations or system and mechanical
failures. The Company does not manufacture or sell products with embedded
technology.
 
    During fiscal 1998 and 1997, the Company established project teams
responsible for identifying and resolving Year 2000 issues. These efforts
include identification and review of internal operating systems and
applications, and customer projects and services, as well as discussions with
information providers and other key suppliers to the business. At this time,
based upon the efforts taken to date and those yet to be taken, the Company does
not expect any serious disruptions in its business operations and, therefore,
does not anticipate any material negative effect upon its revenues or earnings
as a result of the Year 2000 issue. Remediation costs for problems identified,
thus far, are not expected to be material to the Company's consolidated
financial position, liquidity or results of operations. The Company has
established a timetable for resolving Year 2000 issues so as not to interrupt
ongoing operations.
 
THE COMPANY'S STATE OF READINESS
 
    The Year 2000 project plan, including assessment, improvement, testing and
implementation, has been established. The assessment phase is 75% complete at
Superior TeleCom and 85% complete at Premier and should be completed in April
1999 upon receipt of all remaining vendor and supplier Year 2000 readiness
inquiries.
 
    Assessment of the Year 2000 compliance of third parties with whom the
Company has material relationships is in process. The Company's material third
party relationships include the following:
 
(1) Raw material vendors: The Company's raw material purchases are through third
    party raw material vendors. All mission critical raw material vendors have
    responded to the Company's Year 2000 readiness inquiry;
 
(2) Equipment vendors: The response to the Year 2000 readiness inquiries from
    equipment vendors, which includes all embedded chip equipment, is at 75% at
    Superior and 100% at Premier;
 
(3) Service providers: The response to the Year 2000 readiness inquiries from
    third party service providers, which includes utilities, phone service and
    all facility related services, is at 90% at Superior and 100% at Premier;
    and
 
                                       28
<PAGE>
(4) Software vendors: The Company has substantially completed its upgrade of all
    purchased software to Year 2000 compliant versions and is in the
    modification and testing phase.
 
    The responses received, thus far, from the Company's third party vendors and
suppliers indicate compliance on or before June 1999.
 
    The preliminary assessment of internal IT and non-IT systems has been
completed. Internal non-compliant items have been identified and prioritization
of internal non-compliant items is in process. A system for tracking remediation
has been established and non-compliant items identified are expected to be
completed during the first and second quarters of 1999. Based on the findings of
the planning and assessment phases completed to date, the Company does not
believe independent verification or validation processes will be necessary.
 
COSTS TO ADDRESS THE COMPANY'S YEAR 2000 ISSUES
 
SUPERIOR TELECOM
 
    The current estimate of the cost of remediation and equipment and software
replacement, of which approximately 50% has been incurred to date, ranges
between $7 million and $7.25 million and is summarized below. Approximately
one-half of the remaining $3.5 million is to be paid to external parties for
purchases of new systems and equipment.
 
<TABLE>
<S>                                                       <C>
                                                          $     5.95 - $6.16
Code modification and testing:..........................             million
                                                          $     1.05 - $1.09
Personal computer, software and other upgrades..........             million
</TABLE>
 
    Approximately 12% of the total IT budget for 1998 and 1999 has been
allocated for code modification. Such costs are funded through cash flows from
operations and are expensed as incurred. The personal computer and purchased
software upgrades are costs incurred in the ordinary course of business and are,
therefore, typically capitalized costs.
 
PREMIER
 
    The current estimate of the cost of remediation and equipment and software
replacement, of which approximately 50% has been incurred to date, is $1.68
million and is summarized below.
 
<TABLE>
<S>                                                             <C>
                                                                $1.40
Information technology........................................  million
                                                                $0.28
Non-information technology....................................  million
</TABLE>
 
    Such costs are funded through cash flows from operations and are expensed as
incurred. The personal computer and purchased software upgrades are costs
incurred in the ordinary course of business and are, therefore, typically
capitalized costs.
 
RISKS OF THE COMPANY'S YEAR 2000 ISSUES AND THE COMPANY'S CONTINGENCY PLANS
 
SUPERIOR TELECOM
 
    A most reasonably likely worst case Year 2000 scenario for Superior TeleCom
is not known at this time. This determination will be made after the receipt of
the remaining material third party questionnaires. However, the shipment of
Superior TeleCom's product to customers is expected to continue with minimal
interruption and no material loss of revenues is anticipated. The Year 2000
project has had minimal impact on Superior TeleCom's schedule of other major IT
projects.
 
    Superior TeleCom has not completed a contingency plan, however, it intends
to have such a plan completed by March 31, 1999. Each manufacturing facility
will incorporate Year 2000 into their existing
 
                                       29
<PAGE>
disaster contingency plan. The contingency plan will ensure that: (i) adequate
levels of inventory will be on hand to mitigate the impact of any potential
short-term disruptions in production; (ii) adequate supply of raw materials will
be available from alternate sources; and (iii) the necessary backup measures for
computer processing are identified and available.
 
PREMIER
 
    Premier's most reasonably likely worst case Year 2000 scenario in its North
American operations is that in areas where new Year 2000 compliant software has
been installed, the software users will be unable to properly operate the
system. As a contingency plan, Premier will provide the new software users with
on-site seasoned personnel from sites where such software has been previously
installed and operated.
 
    Premier's most reasonably likely worst case Year 2000 scenario in its
European operations is that any of its customized business systems will contain
new programming anomalies which render such systems ineffective. Premier's
contingency plans for this include significant project management review,
intensified testing by both the information technology staff and the users and
remediation prioritization.
 
    Contingency plans for Premier's most reasonably likely worst case Year 2000
scenario for its manufacturing, distribution and research and development
systems are currently being developed.
 
------------------------
 
    EXCEPT FOR THE HISTORICAL INFORMATION HEREIN, THE MATTERS DISCUSSED IN THIS
FORM 10-Q INCLUDE FORWARD-LOOKING STATEMENTS THAT MAY INVOLVE A NUMBER OF RISKS
AND UNCERTAINTIES. ACTUAL RESULTS MAY VARY SIGNIFICANTLY BASED ON A NUMBER OF
FACTORS, INCLUDING, BUT NOT LIMITED TO, RISKS IN PRODUCT AND TECHNOLOGY
DEVELOPMENT, MARKET ACCEPTANCE OF NEW PRODUCTS AND CONTINUING PRODUCT DEMAND,
THE IMPACT OF COMPETITIVE PRODUCTS AND PRICING, CHANGING ECONOMIC CONDITIONS,
INCLUDING CHANGES IN SHORT-TERMS INTEREST RATES AND FOREIGN EXCHANGE RATES AND
OTHER RISK FACTORS DETAILED IN THE COMPANY'S MOST RECENT FILINGS WITH THE
SECURITIES AND EXCHANGE COMMISSION.
 
                                       30
<PAGE>
                           PART II. OTHER INFORMATION
 
ITEM 4. EXHIBITS AND REPORTS ON FORM 8-K
 
(A) EXHIBITS
 
<TABLE>
<CAPTION>
EXHIBIT NUMBER                                           DESCRIPTION
-----------------  ---------------------------------------------------------------------------------------
<C>                <S>
 
        10.1*      The Alpine Group, Inc. Stock Compensation Plan for Non-Employee Directors.
          27*      Financial Data Schedule
</TABLE>
 
(B) REPORTS ON FORM 8-K
 
       A Form 8-K related to the Cvalim acquisition was filed on January 15,
       1999.
 
------------------------
 
*   Filed herewith
 
                                       31
<PAGE>
                                   SIGNATURES
 
    Pursuant to the requirements 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.
 
<TABLE>
<S>                                           <C>        <C>
                                              THE ALPINE GROUP, INC.
 
Date: March 17, 1999                          By:        /s/ DAVID S. ALDRIDGE
                                                         -----------------------------------------
                                                         David S. Aldridge
                                                         Chief Financial Officer
</TABLE>
 
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