##### Table of Contents









UNITED STATES SECURITIES AND EXCHANGE COMMISSION


Washington, D.C. 20549


Form 10-K


|   |  |                                                                                             
|-- |  | --------------------------------------------------------------------------------------------
|þ  |  | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934    
|  
|   |  | For the fiscal year ended December 31, 2005                                                 
|  
|or
|  
|o  |  | 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: 000-51043


International Wire Group, Inc.


(Exact name of registrant as specified in its charter)


|                                                                       |  |                                         
|---------------------------------------------------------------------- |  | ----------------------------------------
|Delaware                                                               |  | 43-1705942                              
|(State or other jurisdiction of
    incorporation or organization)     |  | (I.R.S. Employer
    Identification No.)
|12 Masonic Ave.
    Camden, NY(Address of principal executive offices) |  | 13316(Zip Code)                         

(315) 245-3800


(Registrants telephone number, including area code)


Securities registered pursuant to Section 12(b) of the
Act:


None


Securities registered pursuant to Section 12(g) of the
Act:


Common Stock, par value $0.01 per share


o þ


o þ


þ o


S-K 10-K 10-K. o


12b-2


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12b-2 o þ








þ o




|                                        |  |                             
|--------------------------------------- |  | ----------------------------
|Class                                   |  | Outstanding at March 1, 2006
|                                        |  |                             
|Common Stock, $0.01 par value per share |  | 10,000,002 shares           

DOCUMENTS INCORPORATED BY REFERENCE












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##### 










TABLE OF CONTENTS


|           |  |                                                                                                       |  |      |    |  |  | 
|---------- |  | ----------------------------------------------------------------------------------------------------- |  | ---- | -- |  |  | 
|           |  |                                                                                                       |  | Page
|           |  |                                                                                                       |  |     
|PART I    
|Item 1.    |  | Business                                                                                              |  |      | 2  | 
|Item 1A.   |  | Risk Factors                                                                                          |  |      | 10 | 
|Item 2.    |  | Properties                                                                                            |  |      | 16 | 
|Item 3.    |  | Legal Proceedings                                                                                     |  |      | 17 | 
|Item 4.    |  | Submission of Matters to a Vote of Security
    Holders                                               |  |      | 18 | 
|          
|PART II   
|Item 5.    |  | Market for Registrants Common Equity,
    Related Stockholder Matters and Issuer Purchases of Equity |  |      | 18 | 
|Item 6.    |  | Selected Financial Data                                                                               |  |      | 19 | 
|Item 7.    |  | Managements Discussion and Analysis
    of Financial Condition and Results of Operations             |  |      | 22 | 
|Item 7A.   |  | Quantitative and Qualitative Disclosures
    about Market Risk                                        |  |      | 40 | 
|Item 8.    |  | Financial Statements and Supplementary
    Data                                                       |  |      | 42 | 
|Item 9.    |  | Changes in and Disagreement with
    Accountants on Accounting and Financial Disclosure               |  |      | 79 | 
|Item 9A.   |  | Control and Procedures                                                                                |  |      | 79 | 
|Item 9B.   |  | Other Information                                                                                     |  |      | 80 | 
|          
|PART III  
|Item 10.   |  | Directors and Executive Officers of
    Registrant                                                    |  |      | 80 | 
|Item 11.   |  | Executive Compensation                                                                                |  |      | 80 | 
|Item 12.   |  | Security Ownership of Certain Beneficial
    Owners and Management and Related Stockholder Matters    |  |      | 80 | 
|Item 13.   |  | Certain Relationships and Related
    Transactions                                                    |  |      | 80 | 
|Item 14.   |  | Principal Accountant Fees and Services                                                                |  |      | 80 | 
|          
|PART IV   
|Item 15.   |  | Exhibits and Financial Statement
    Schedules                                                        |  |      | 80 | 
|Signatures |  |                                                                                                       |  |     



1



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##### Table of Contents



CAUTIONARY STATEMENTS CONCERNING FORWARD-LOOKING
STATEMENTS


10-K


10-K.





PART I







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

Overview






| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Bare Wire Products. Our bare and tin-plated copper wire
    products (or conductors) are used to transmit digital, video and
    audio signals or conduct electricity and are sold to a diverse
    customer base of over 1,000 insulated wire manufacturers and
    various industrial OEMs for use in computer and data
    communications products, general industrial, energy, appliances,
    automobiles and other applications. See Item 1.
    Business  Acquisition for more information
    about our announced acquisition.                                                                                                                                
|
| |  | Engineered Wire Products  Europe. Our bare
    copper wire products are engineered and used to conduct
    electricity either for power or for grounding purposes and are
    sold to a diverse customer base of various OEMs for use in
    electrical appliances, power supply, aircraft and railway and
    automotive.                                                                                                                                                                                                                                                                                                                                             
|
| |  | Insulated Wire Products. Our insulated wire products
    (copper conductors insulated with plastic or other polymeric
    compounds) are primarily manufactured for the automotive and
    appliance end-user markets. Our insulated wire products are used
    in the assembly of wire harnesses that are installed in both
    automobiles and appliances. A wire harness is comprised of an
    assembly of wires with connectors and terminals that transmit
    electricity between two or more end points. See
    Item 1. Business  U.S. Insulated Wire
    Business Sale for information about our recent sale and
    plans for the remainder of the segment.

2



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##### Table of Contents





U.S. Insulated Wire Business Sale






| |   |                                                                                                                                                                                                                                                                            
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | sold the inventory, equipment, spare parts and certain other
    assets located at our Avilla, Indiana facility and three
    facilities located in El Paso, Texas;                                                                                                        
|
| |  | sold our Avilla, Indiana facility, transferred leases for two of
    our El Paso, Texas facilities and leased a third
    El Paso, Texas facility to Copperfield (the third facility
    was subsequently sold to Copperfield on February 21, 2006
    for $2 million); and
|
| |  | transferred certain contracts related to these facilities.                                                                                                                                                                                                                 





Acquisition






3



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Bankruptcy and Other Changes












Products and Markets






| |                                                                                      
| | -------------------------------------------------------------------------------------
| | Bare Wire Segment (72% of 2005 Consolidated Net Sales from
    Continuing Operations)





| |   |                                                                                                                                                                                                                                                                                                                                
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | appliance (approximately 18% of total 2005 bare wire net sales);                                                                                                                                                                                                                                                               
|
| |  | automotive (approximately 21% of total 2005 bare wire net sales);                                                                                                                                                                                                                                                              
|
| |  | electronics and data communications (approximately 28% of total
    2005 bare wire net sales) including cable television, safety and
    security control, and local area network (LAN) and
    computer systems; and                                                                                                        
|
| |  | industrial/energy (approximately 33% of total 2005 bare wire net
    sales) including heating, ventilating and air conditioning
    (HVAC) systems, circuit protection, digital and
    cellular phone towers, elevator cables, mining and oil
    exploration, mass transit and utility power distribution
    applications.





| |   |                                                                                                                                                                                                                                                                                                                  
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Single End Wire. Single end wire is an individual wire
    drawn to the customers size requirements ranging from .16
    to .00157 inches in diameter (6 American Wire Gauge
    (awg) to 46 awg). Single end wire is capable of
    transmitting signals or electrical currents between two points
    and is

4



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| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |   | used to transmit digital, video and audio signals or low voltage
    current in a variety of wire products used in motor controls,
    local area networks, security systems, television or telephone
    connections and water sprinkler systems. Single end wire is
    generally the least expensive form of wire to produce due to its
    simple configuration.                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|
| |  | Stranded Wire. Stranded wire is comprised of a number of
    single end wires twisted together in a specific geometric
    pattern that preserves each individual wires relative
    position for the length of the wire. Stranded wire, like single
    end wire, transmits digital, video and audio signals or low
    voltage current. However, stranded wire is more flexible and
    capable of connecting multiple terminals allowing greater
    application. Stranded wire is generally used in products that
    connect peripherals to the personal computer (PC),
    connect the internal components of the PC, and control HVAC,
    security and other functions inside buildings. In addition,
    stranded wire is used in antilock braking systems, airbag
    systems, utility power distribution and circuit breakers.
|
| |  | Bunched Wire. Bunched wire is formed by twisting a number
    of single end wires in a random pattern. Bunched wire allows
    increased flexibility while maintaining conductivity. This type
    of wire is the primary wire used in appliance wire harnesses. In
    addition, bunched wire is commonly used for transmission of
    electrical current in lighting fixture cords, extension cords
    and power cords for portable, power hand tools.                                                                                                                                                                                                                                                                                                                                                                                   
|
| |  | Cabled Wire and Braided Wire. Cabled wire and braided
    wire are combinations of single, bunched or stranded wire
    twisted together in various patterns and thickness. These wires
    transmit electrical current and are typically used in mining,
    mass transportation, automotive, utility power distribution, and
    other industrial applications.                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|
| |  | Shielding Wire. Shielding wire is comprised of varying
    numbers of single end wires that are wound together in parallel
    construction around a bobbin. Shielding wire does not transmit
    signals or voltage but rather shields the signal traveling
    through the core conductor from outside interference. This type
    of wire is primarily used in data communication applications,
    telecommunications equipment, cable television equipment and
    security systems.                                                                                                                                                                                                                                                                                                                                                   



| |                                                                                                  
| | -------------------------------------------------------------------------------------------------
| | Engineered Wire-Europe Segment (7% of 2005 Consolidated
    Net Sales from Continuing Operations)





| |   |                                                                                                   
| | - | --------------------------------------------------------------------------------------------------
| |  | electrical appliances (approximately 34% of total 2005
    engineered wire  Europe net sales);   
|
| |  | power supply (approximately 30% of total 2005 engineered
    wire  Europe net sales);            
|
| |  | aircraft and railway (approximately 19% of total 2005 engineered
    wire  Europe net sales); and
|
| |  | automotive (approximately 17% of total 2005 engineered
    wire  Europe net sales).              





| |                                                                                           
| | ------------------------------------------------------------------------------------------
| | Insulated Wire Segment (21% of 2005 Consolidated Net Sales
    from Continuing Operations)



5



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##### Table of Contents







| |   |                                                                                                                                                                                                                                                                                                                       
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Tier 1 suppliers to Ford Motor Company and Chrysler
    Corporation. General Motors Corporation (GM)
    continues to purchase the majority of their wire and wire
    harness products from Delphi Corporation, formerly a division of
    GM that has in-house wire and wire harness manufacturing
    capability;
|
| |  | suppliers to the North American facilities of Japanese
    automakers, which utilize thin-wall insulated wire
    that complies with Japanese Industrial Standards
    (JIS); and                                                                                                                                 
|
| |  | suppliers to appliance OEMs.                                                                                                                                                                                                                                                                                          





| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | PVC Lead Wire and Cable. PVC lead wire and cable is
    copper wire that has been insulated with polyvinyl chloride
    (PVC). This product is used primarily in automotive
    wire harnesses located behind the instrument panel or in the
    vehicle body that control certain functions including turn
    signals and air bags.                                                                                                                                                                           
|
| |  | JIS Wire. JIS wire is copper wire insulated with PVC that
    is produced according to Japanese Industrial Standards. The
    primary difference between domestic PVC wire and JIS wire is
    that JIS wire is manufactured to metric dimensions and generally
    has thinner insulation than products manufactured according to
    U.S. Society of Automotive Engineers Standards. JIS wire is
    used primarily in automotive wire harnesses located behind the
    instrument panel or in the vehicle body.
|
| |  | XLPE Insulated Wire. Cross-linked polyethylene
    (XLPE) wire is copper wire insulated with
    polyethylene that is subjected to heat and steam pressure
    (cross-linking) to make the wire resistant to high
    temperatures. This products primary application includes
    use in high temperature environments such as the engine
    compartment of vehicles and in electric ranges.                                                                                                               



Marketing




Key Customers






6



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International Operations


See


See


Raw Materials


5/16-inch




just-in


Manufacturing and Distribution




7



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##### Table of Contents







| |                   
| | ------------------
| | Bare Wire Products





| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Wire Drawing Process. Wire drawing is a multi-step
    process in which raw copper material,
    primarily5/16-inch copper rod, is drawn through a series of dies of
    decreasing diameter.                                                                                                                                                                                                                                                                                                               
|
| |  | Plating Process. After being drawn, our wire products may
    be plated through an electroplating process. We have the
    capability to plate copper wire with tin. Approximately 28% of
    our bare wire products are plated with tin. The plating process
    prevents the bare copper from oxidizing and also allows the wire
    to be soldered, which is an important quality in many electrical
    applications.                                                                                   
|
| |  | Bunching and Stranding Process. Bunching and stranding is
    the process of twisting together single strand wires to form a
    construction ranging from seven to over 200 strands. If the
    wire is bunched, the individual strands of wire are twisted
    together in a random pattern. Stranded wire is composed of a
    number of single end wires twisted together in a specific
    geometric pattern where each strands relative position is
    maintained throughout the length of the wire.
|
| |  | Cabling Process. Cabling is the process of twisting
    bunched wire to form a construction ranging from 49 to
    47,000 strands.                                                                                                                                                                                                                                                                                                                                                                          



| |                                  
| | ---------------------------------
| | Engineered Wire Products  Europe





| |                        
| | -----------------------
| | Insulated Wire Products





Competition




8



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Backlog




Patents and Trademarks




Employees




Seasonality




Environmental Matters




on-site




9



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Executive Officers of the Registrant




|                       |  |     |    |  |             |                                                             
|---------------------- |  | --- | -- |  | ----------- | ------------------------------------------------------------
|Name                   |  | Age |    |  | Position(s)
|                       |  |     |    |  |            
|Rodney D. Kent         |  |     | 58 |  |             | Director; Chief Executive Officer                           
|Glenn J. Holler        |  |     | 58 |  |             | Senior Vice President, Chief Financial Officer and Secretary
|Donald F. DeKay        |  |     | 51 |  |             | Vice President  Finance                                    
|Chrysant E. Makarushka |  |     | 65 |  |             | Vice President  Purchasing and Logistics                   
|Daris W. Foster        |  |     | 48 |  |             | Vice President  Business Process Control                   
















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

Risks Related to Our Financial Position




| |                                                                                  
| | ---------------------------------------------------------------------------------
| | We have a history of losses, and we may not be able to
    achieve profitability.



10



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See




| |                                                                                                                             
| | ----------------------------------------------------------------------------------------------------------------------------
| | Our historical financial information is not comparable to
    our current financial condition and results of
    operations.

90-7, Financial Reporting by Entities in Reorganization under the
Bankruptcy Code.




| |                                                                                                                                                
| | -----------------------------------------------------------------------------------------------------------------------------------------------
| | Our substantial indebtedness may limit cash flow available
    to invest in the ongoing needs of our business to generate
    future cash flow.





| |   |                                                                                                                                                                                                                                                          
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | require us to dedicate a substantial portion of our cash flow
    from operations to payments on our indebtedness, reducing the
    availability of our cash flow to fund working capital, capital
    expenditures and other general corporate purposes;
|
| |  | increase the amount of interest expense that we have to pay,
    because certain of our borrowings are at variable rates of
    interest, which, if interest rates increase, could result in
    higher interest expense;                                
|
| |  | increase our vulnerability to adverse general economic or
    industry conditions;                                                                                                                                                                       
|
| |  | limit our flexibility in planning for, or reacting to, changes
    in our business or the industry in which we operate; or                                                                                                                               
|
| |  | place us at a competitive disadvantage compared to our
    competitors that have less debt.                                                                                                                                                              

See


Risks Related to Our Business




| |                                                                                                                                                                                                            
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | The price of copper, the principal raw material used in
    our products, is subject to price fluctuations and may
    negatively impact our liquidity or cause our customers to
    decrease their orders.

5/16-inch


11



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| |                                                                                                                      
| | ---------------------------------------------------------------------------------------------------------------------
| | Increases in the prices of compounds and copper premiums
    could increase the losses of our insulated wire segment.







| |                                                                                                                                                                                                                                                            
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | We generally do not obtain long-term volume purchase
    commitments from customers, and, therefore, cancellations,
    reductions in production quantities and delays in production by
    our customers could adversely affect our operating
    results.







| |                                                                                                      
| | -----------------------------------------------------------------------------------------------------
| | Demand for a portion of our products is highly dependent
    on the automobile and appliance markets.





| |                                                                                                                                                         
| | --------------------------------------------------------------------------------------------------------------------------------------------------------
| | The wire manufacturing industry is highly competitive and
    we face substantial domestic and foreign competition in each of
    our business segments.



12



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| |                                                                         
| | ------------------------------------------------------------------------
| | Our acquisition and expansion plans may fail to perform as
    expected.





| |   |                                                                                                                                                                                                                                                                              
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | We may not be able to integrate the new acquisition and
    expansion into our existing operations successfully.                                                                                                                                                             
|
| |  | Our estimate of the costs of improving, repositioning or
    redeveloping an acquired property or asset may prove to be too
    low, and, as a result, the property or asset may fail to meet
    our estimate of profitability, either temporarily or for a
    longer time.
|
| |  | Our managements time and focus will be diverted from
    operating our existing business.                                                                                                                                                                                   
|
| |  | We may experience cultural challenges associated within
    integrating employees from the acquired company into our
    organization.                                                                                                                                       
|
| |  | We may be unable to retain key employees from the acquired
    business.                                                                                                                                                                                                     



| |                                                                                                                                     
| | ------------------------------------------------------------------------------------------------------------------------------------
| | The loss of a significant customer could significantly
    reduce our sales and impact our long-lived intangible assets as
    well.





| |                                                                                                   
| | --------------------------------------------------------------------------------------------------
| | We depend heavily on our key employees, and the loss of
    key employees could harm our business.





| |                                                                                           
| | ------------------------------------------------------------------------------------------
| | If our relationship with our employees were to
    deteriorate, our business could suffer.



13



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| |                                                                            
| | ---------------------------------------------------------------------------
| | A significant portion of our business depends on sales
    outside the U.S.





| |   |                                                             
| | - | ------------------------------------------------------------
| |  | economic or political instability;                          
|
| |  | foreign exchange rate fluctuations;                         
|
| |  | difficulties in staffing and managing foreign personnel; and
|
| |  | cultural differences.                                       



| |                                                 
| | ------------------------------------------------
| | We are subject to foreign currency fluctuations.

time-to




| |                                                                                                                                                                                                                                                          
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | As a U.S. corporation with international operations,
    we are subject to the Foreign Corrupt Practices Act and a
    determination that we violated this act may subject us to
    significant fines and other penalties and damage our
    reputation.





| |                                                                        
| | -----------------------------------------------------------------------
| | We are subject to litigation claims that could adversely
    affect us.

See




| |                                                                                                          
| | ---------------------------------------------------------------------------------------------------------
| | We are subject to environmental laws and regulations that
    expose us to potential financial liability.



14



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| |                                                                                                                                                          
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------
| | General economic factors that are beyond our control may
    harm our business by causing demand for our products to decline
    or increasing our costs.





| |                                                                                                                                                                                                                                                                
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Anti-takeover provisions of our amended and restated
    certificate of incorporation, as well as Delaware law, may
    reduce the likelihood of any potential change of control or
    unsolicited acquisition proposal that you might consider
    favorable.



Risks Related to Our Common Stock




| |                                                                                                          
| | ---------------------------------------------------------------------------------------------------------
| | We expect to experience volatility in our stock price,
    which could negatively affect your investment.





| |                                                                                                                                                                                                            
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Our stock is traded on the Pink Sheets, which
    may make it make it difficult for you to sell your stock and the
    liquidity of our stock could decrease further if we deregister
    our securities.





15



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##### Table of Contents





| |                                                                                         
| | ----------------------------------------------------------------------------------------
| | Our principal stockholders could exercise their influence
    over us to your detriment.





| |                                                                                                                 
| | ----------------------------------------------------------------------------------------------------------------
| | We have not paid any dividends on our common stock and do
    not anticipate doing so in the foreseeable future.

See




| |                                                                                                                                                                        
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | All or substantially all of our assets are subject to
    security interests, and if we default under our obligations, our
    creditors could foreclose on our assets.








|        |            
|------- | -----------
|Item 2. | Properties.





|                       |  |             |         |        |        |           |                          |                                                             
|---------------------- |  | ----------- | ------- | ------ | ------ | --------- | ------------------------ | ------------------------------------------------------------
|                       |  |             |         | Owned/ |        |          
|Location               |  | Square Feet |         |        | Leased |           | Primary Products/End Use
|                       |  |             |         |        |        |           |                         
|BARE WIRE SEGMENT      |  |             |         |        |        |           |                          |                                                             
|Camden, New York       |  |             | 408,000 |        |        | Owned     |                          | Single end, bunched, stranded, cabled and electroplated wire
|Williamstown, New York |  |             | 183,000 |        |        | Owned     |                          | Single end, bunched, stranded and cabled wire               
|Bremen, Indiana        |  |             | 153,000 |        |        | Owned     |                          | Bunched wire                                                
|Camden, New York       |  |             | 159,000 |        |        | Leased(1) |                          | Single end, bunched, stranded and cabled wire               
|Jordan, New York       |  |             | 117,000 |        |        | Leased(1) |                          | Single end, bunched, stranded, shielding and cabled wire    
|Rome, New York         |  |             | 107,000 |        |        | Owned     |                          | Bunched, stranded, cabled and electroplated wire            
|Cazenovia, New York    |  |             | 54,000  |        |        | Owned     |                          | Braided wire                                                
|El Paso, Texas         |  |             | 100,000 |        |        | Owned     |                          | Bunched wire                                                
|El Paso, Texas         |  |             | 60,000  |        |        | Owned     |                          | Bunched wire                                                

16



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##### Table of Contents



|                                 |  |             |         |        |        |           |                          |                                          
|-------------------------------- |  | ----------- | ------- | ------ | ------ | --------- | ------------------------ | -----------------------------------------
|                                 |  |             |         | Owned/ |        |          
|Location                         |  | Square Feet |         |        | Leased |           | Primary Products/End Use
|                                 |  |             |         |        |        |           |                         
|La Mirada, California            |  |             | 19,000  |        |        | Leased(2) |                          | Distribution                             
|ENGINEERED WIRE  EUROPE SEGMENT |  |             |         |        |        |           |                          |                                          
|Saint-Chamond, France            |  |             | 60,000  |        |        | Owned     |                          | Specialty braids, rope and cable products
|Saint-Chamond, France            |  |             | 30,000  |        |        | Owned     |                          | Specialty braids, rope and cable products
|Vinovo, Italy                    |  |             | 25,000  |        |        | Owned     |                          | Braided wire                             
|INSULATED WIRE SEGMENT:          |  |             |         |        |        |           |                          |                                          
|Durango, Mexico                  |  |             | 155,000 |        |        | Owned     |                          | PVC, XPLE, bare wire                     
|Cebu, Philippines                |  |             | 135,000 |        |        | Owned     |                          | PVC, XPLE, bare wire                     
|El Paso, Texas                   |  |             | 101,000 |        |        | Owned(3)  |                          |                                          






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | The leases on our Camden, New York and Jordan, New York
    facilities have remaining terms of approximately 6 years.
    During 1997, we purchased the notes that were collateralized by
    the Camden and Jordan properties from an unrelated creditor. We
    negotiated a payment schedule with the lessor which allows the
    lessor to retain title to the property until the termination of
    the lease, at which time we will have the option to purchase the
    properties for a nominal purchase price.
|   
|(2) | The lease expires April 30, 2007.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|   
|(3) | As of December 31, 2005, this facility was no longer being
    used in our operations but instead was being leased to
    Copperfield, LLC. On February 21, 2006, ownership of this
    property was transferred to Copperfield, LLC pursuant to the
    Asset Purchase Agreement.                                                                                                                                                                                                                                    

state-of







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





17



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##### Table of Contents












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






PART II







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

over-the


|               |  |      |       |  |     |   |       | 
|-------------- |  | ---- | ----- |  | --- | - | ----- | 
|               |  | High |       |  | Low |  
|               |  |      |       |  |     |  
|2005           |  |      |       |  |     |   |       | 
|Fourth quarter |  | $    | 10.50 |  |     | $ | 6.15  | 
|Third quarter  |  |      | 10.50 |  |     |   | 5.00  | 
|Second quarter |  |      | 15.50 |  |     |   | 10.75 | 
|First quarter  |  |      | 17.03 |  |     |   | 15.50 | 
|2004           |  |      |       |  |     |   |       | 
|Fourth quarter |  | $    | 15.69 |  |     | $ | 15.17 | 





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|                                                              |  |                            |        |  |                      |                         |       |                           |  |  |   | 
|------------------------------------------------------------- |  | -------------------------- | ------ |  | -------------------- | ----------------------- | ----- | ------------------------- |  |  | - | 
|                                                              |  |                            |        |  |                      | Number of Securities    |      
|                                                              |  |                            |        |  |                      | Remaining Available for |      
|                                                              |  | Number of Securities to Be |        |  | Weight-average       |                         |       | Future Issuance Under     | 
|                                                              |  | Issued upon Exercise of    |        |  | Exercise Price of    |                         |       | Equity Compensation Plans | 
|                                                              |  | Outstanding Options,       |        |  | Outstanding Options, |                         |       | (Excluding Securities     | 
|                                                              |  | Warrants and Rights        |        |  | Warrants and Rights  |                         |       | Reflected in Column (a))  | 
|Plan Category                                                 |  | (a)                        |        |  | (b)                  |                         |       | (c)                       | 
|                                                              |  |                            |        |  |                      |                         |       |                           | 
|Equity compensation plans approved by security holders        |  |                            |       |  |                      |                         |      |                           |  |  |  | 
|Equity compensation plans not approved by security holders(1) |  |                            | 25,000 |  |                      | $                       | 11.00 |                           |  |  | 0 | 
|Total                                                         |  |                            | 25,000 |  |                      | $                       | 11.00 |                           |  |  | 0 | 






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | On August 1, 2005, William Lane Pennington, Vice-Chairman
    of the Board of Directors, was granted an option to
    purchase 25,000 shares at an exercise price of
    $11.00 per share. One-third of the shares underlying the
    option became exercisable on August 1, 2005, the
    second-third becomes exercisable on August 1, 2006, and the
    remaining third becomes exercisable on August 1, 2007. The
    option expires on August 1, 2015.

S-1 333-120736)







|        |                         
|------- | ------------------------
|Item 6. | Selected Financial Data.



Financial Reporting by Entities in
Reorganization under the Bankruptcy Code.


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|                                                          |                                                                                                               |                   |         |                |              |                     |        |                |             |  |   |                         |         |   |      |         |         |      |   |         |         |   |   |         |         |  
|--------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------- | ----------------- | ------- | -------------- | ------------ | ------------------- | ------ | -------------- | ----------- |  | - | ----------------------- | ------- | - | ---- | ------- | ------- | ---- | - | ------- | ------- | - | - | ------- | ------- | -
|                                                          |                                                                                                               | Successor Company |         |                |              | Predecessor Company |       
|                                                          |                                                                                                               |                   |         |                |              |                     |       
|                                                          |                                                                                                               |                   |         | For the Period |              |                     |        | For the Period |             |  |  
|                                                          |                                                                                                               |                   |         | October 20     |              |                     |        | January 1      |             |  |  
|                                                          |                                                                                                               | Year Ended        |         |                | through      |                     |        |                | through     |  |   | Year Ended December 31, |        
|                                                          |                                                                                                               | December 31,      |         |                | December 31, |                     |        |                | October 19, |  |   |                         |        
|                                                          |                                                                                                               | 2005              |         |                | 2004         |                     |        |                | 2004        |  |   | 2003                    |         |   | 2002 |         |         | 2001 |  
|                                                          |                                                                                                               |                   |         |                |              |                     |        |                |             |  |   |                         |         |   |      |         |         |      |  
|Consolidated Statements of Operations Data (in thousands) |                                                                                                               |                   |         |                |              |                     |        |                |             |  |   |                         |         |   |      |         |         |      |   |         |         |   |   |         |        
|Net sales                                                 |                                                                                                               | $                 | 539,285 |                |              | $                   | 85,103 |                |             |  | $ | 346,310                 |         |   | $    | 269,313 |         |      | $ | 252,304 |         |   | $ | 263,266 |        
|Operating expenses:                                       |                                                                                                               |                   |         |                |              |                     |        |                |             |  |   |                         |         |   |      |         |         |      |   |         |         |   |   |         |        
|                                                          | Costs of goods sold, exclusive of depreciation expense shown
    below                                        |                   |         | 472,581        |              |                     |        | 71,336         |             |  |   |                         | 288,901 |   |      |         | 204,974 |      |   |         | 180,967 |   |   |         | 190,349 |  
|                                                          | Selling, general and administrative expenses(1)                                                               |                   |         | 34,222         |              |                     |        | 6,006          |             |  |   |                         | 21,027  |   |      |         | 24,093  |      |   |         | 25,409  |   |   |         | 16,428  |  
|                                                          | Depreciation                                                                                                  |                   |         | 9,347          |              |                     |        | 2,934          |             |  |   |                         | 11,387  |   |      |         | 14,217  |      |   |         | 14,933  |   |   |         | 16,208  |  
|                                                          | Amortization                                                                                                  |                   |         | 3,709          |              |                     |        | 825            |             |  |   |                         | 1,751   |   |      |         | 2,498   |      |   |         | 2,370   |   |   |         | 5,732   |  
|                                                          | Impairment, unusual and plant closing charges(2)                                                              |                   |         | 3,529          |              |                     |        | 1,632          |             |  |   |                         | 262     |   |      |         | 1,188   |      |   |         |        |   |   |         | 7,938   |  
|                                                          | Reorganization expenses(3)                                                                                    |                   |         |               |              |                     |        |               |             |  |   |                         | 3,062   |   |      |         | 2,172   |      |   |         |        |   |   |         |        |  
|                                                          | Goodwill impairment                                                                                           |                   |         |               |              |                     |        |               |             |  |   |                         |        |   |      |         | 2,973   |      |   |         | 3,853   |   |   |         |        |  
|                                                          | Gain on sale of property, plant and equipment                                                                 |                   |         | (721           | )            |                     |        | (8             | )           |  |   |                         | (158    | ) |      |         |        |      |   |         | (8      | ) |   |         | (149    | )
|                                                          |                                                                                                               |                   |         |                |              |                     |        |                |             |  |   |                         |         |   |      |         |         |      |  
|Operating income                                          |                                                                                                               |                   | 16,618  |                |              |                     | 2,378  |                |             |  |   | 20,078                  |         |   |      | 17,198  |         |      |   | 24,780  |         |   |   | 26,760  |        
|Bankruptcy reorganization items:                          |                                                                                                               |                   |         |                |              |                     |        |                |             |  |   |                         |         |   |      |         |         |      |   |         |         |   |   |         |        
|                                                          | Bankruptcy reorganization expenses(3)                                                                         |                   |         |               |              |                     |        |               |             |  |   |                         | (12,710 | ) |      |         |        |      |   |         |        |   |   |         |        |  
|                                                          | Gain from debt forgiveness(4)                                                                                 |                   |         |               |              |                     |        |               |             |  |   |                         | 259,252 |   |      |         |        |      |   |         |        |   |   |         |        |  
|Other income/(expense):                                   |                                                                                                               |                   |         |                |              |                     |        |                |             |  |   |                         |         |   |      |         |         |      |   |         |         |   |   |         |        
|                                                          | Interest expense (excluding interest of $20,959 on liabilities
    subject to compromise at October 19, 2004) |                   |         | (13,350        | )            |                     |        | (2,586         | )           |  |   |                         | (14,625 | ) |      |         | (39,722 | )    |   |         | (34,259 | ) |   |         | (33,603 | )

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|                                                                                                                                               |                                          |                   |                                                |                |              |                     |         |                |             |       |   |                         |        |         |         |         |        |         |         |         |        |          |          |         |        |         |         |  
|---------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------- | ----------------- | ---------------------------------------------- | -------------- | ------------ | ------------------- | ------- | -------------- | ----------- | ----- | - | ----------------------- | ------ | ------- | ------- | ------- | ------ | ------- | ------- | ------- | ------ | -------- | -------- | ------- | ------ | ------- | ------- | -
|                                                                                                                                               |                                          | Successor Company |                                                |                |              | Predecessor Company |        
|                                                                                                                                               |                                          |                   |                                                |                |              |                     |        
|                                                                                                                                               |                                          |                   |                                                | For the Period |              |                     |         | For the Period |             |       |  
|                                                                                                                                               |                                          |                   |                                                | October 20     |              |                     |         | January 1      |             |       |  
|                                                                                                                                               |                                          | Year Ended        |                                                |                | through      |                     |         |                | through     |       |   | Year Ended December 31, |       
|                                                                                                                                               |                                          | December 31,      |                                                |                | December 31, |                     |         |                | October 19, |       |   |                         |       
|                                                                                                                                               |                                          | 2005              |                                                |                | 2004         |                     |         |                | 2004        |       |   | 2003                    |        |         | 2002    |         |        | 2001    |        
|                                                                                                                                               |                                          |                   |                                                |                |              |                     |         |                |             |       |   |                         |        |         |         |         |        |         |        
|                                                                                                                                               | Amortization of deferred financing costs |                   |                                                | (646           | )            |                     |         | (127           | )           |       |   |                         | (6,813 | )       |         |         | (4,873 | )       |         |         | (2,123 | )        |          |         | (1,346 | )      
|                                                                                                                                               | Other, net                               |                   |                                                | (137           | )            |                     |         | 39             |             |       |   |                         | (182   | )       |         |         | (49    | )       |         |         | (250   | )        |          |         | (318   | )      
|                                                                                                                                               |                                          |                   |                                                |                |              |                     |         |                |             |       |   |                         |        |         |         |         |        |         |        
|Income/(loss) from continuing operations before income tax
    provision/(benefit) and cumulative effect of change in
    accounting principle |                                          |                   | 2,485                                          |                |              |                     | (296    | )              |             |       |   | 245,000                 |        |         |         | (27,446 | )      |         |         | (11,852 | )      |          |          | (8,507  | )     
|Income tax provision/(benefit)                                                                                                                 |                                          |                   | 4,129                                          |                |              |                     | (34     | )              |             |       |   | 666                     |        |         |         | 291     |        |         |         | 33,955  |        |          |          | (18,710 | )     
|                                                                                                                                               |                                          |                   |                                                |                |              |                     |         |                |             |       |   |                         |        |         |         |         |        |         |        
|Income/(loss) from continuing operations before cumulative
    effect of change in accounting principle                                        |                                          |                   | (1,644                                         | )              |              |                     | (262    | )              |             |       |   | 244,334                 |        |         |         | (27,737 | )      |         |         | (45,807 | )      |          |          | 10,203  |       
|Income/(loss) from discontinued operations, net of income taxes
    of $(6,348), $0, $0, $0, $0 and ($2,150), respectively(5)                  |                                          |                   | (9,542                                         | )              |              |                     | (10,500 | )              |             |       |   | (7,026                  | )      |         |         | (19,001 | )      |         |         | (32,987 | )      |          |          | (27,707 | )     
|                                                                                                                                               |                                          |                   |                                                |                |              |                     |         |                |             |       |   |                         |        |         |         |         |        |         |        
|Income/(loss) before cumulative effect of change in accounting
    principle                                                                   |                                          |                   | (11,186                                        | )              |              |                     | (10,762 | )              |             |       |   | 237,308                 |        |         |         | (46,738 | )      |         |         | (78,794 | )      |          |          | (17,504 | )     
|Cumulative effect of change in accounting for goodwill net of
    tax benefit of $19,408                                                       |                                          |                   |                                               |                |              |                     |        |                |             |       |   |                        |        |         |         |        |        |         |         | (54,504 | )      |          |          |        |       
|                                                                                                                                               |                                          |                   |                                                |                |              |                     |         |                |             |       |   |                         |        |         |         |         |        |         |        
|                                                                                                                                               |                                          | Net income/(loss) |                                                | $              | (11,186      | )                   |         | $              | (10,762     | )     |   |                         | $      | 237,308 |         |         | $      | (46,738 | )       |         | $      | (133,298 | )        |         | $      | (17,504 | )      
|                                                                                                                                               |                                          |                   |                                                |                |              |                     |         |                |             |       |   |                         |        |         |         |         |        |         |        
|                                                                                                                                               |                                          |                   | Basic and diluted net income/(loss) per share: |                |              |                     |         |                |             |       |   |                         |        |         |         |         |        |         |         |         |        |          |          |         |        |         |         |  
|                                                                                                                                               |                                          |                   | Income (loss) from continuing operations       |                | $            | (0.17               | )       |                | $           | (0.03 | ) |                         |        | $       | 244,334 |         |        | $       | (27,737 | )       |        | $        | (45,807  | )       |        | $       | 10,203  |  
|                                                                                                                                               |                                          |                   | Loss from discontinued operations              |                |              | (0.95               | )       |                |             | (1.05 | ) |                         |        |         | (7,026  | )       |        |         | (19,001 | )       |        |          | (32,987  | )       |        |         | (27,707 | )
|                                                                                                                                               |                                          |                   | Cumulative effect of accounting change         |                |              | 0.00                |         |                |             | 0.00  |   |                         |        |         | 0       |         |        |         | 0       |         |        |          | (54,504  | )       |        |         | 0       |  
|                                                                                                                                               |                                          |                   |                                                |                |              |                     |         |                |             |       |   |                         |        |         |         |         |        |         |        
|                                                                                                                                               |                                          |                   | Net income/(loss)                              |                | $            | (1.12               | )       |                | $           | (1.08 | ) |                         |        | $       | 237,308 |         |        | $       | (46,738 | )       |        | $        | (133,298 | )       |        | $       | (17,504 | )
|                                                                                                                                               |                                          |                   |                                                |                |              |                     |         |                |             |       |   |                         |        |         |         |         |        |         |        

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|                                     |  |                   |         |  |              |                     |         |  |                    |  |   |          |   |  |      |         |   |  |   |         | 
|------------------------------------ |  | ----------------- | ------- |  | ------------ | ------------------- | ------- |  | ------------------ |  | - | -------- | - |  | ---- | ------- | - |  | - | ------- | 
|                                     |  | Successor Company |         |  |              | Predecessor Company |        
|                                     |  |                   |         |  |              |                     |        
|                                     |  | As of             |         |  | As of        |                     |         |  | As of December 31, | 
|                                     |  | December 31,      |         |  | December 31, |                     |         |  |                    | 
|                                     |  | 2005              |         |  | 2004         |                     |         |  | 2003               |  |   | 2002     |   |  | 2001 |        
|                                     |  |                   |         |  |              |                     |         |  |                    |  |   |          |   |  |      |        
|Consolidated Balance Data Sheet      |  |                   |         |  |              |                     |         |  |                    |  |   |          |   |  |      |         |   |  |   |         | 
|Cash and cash equivalents            |  | $                 | 5,422   |  |              | $                   | 15,192  |  |                    |  | $ | 25,981   |   |  | $    | 2,546   |   |  | $ | 8,017   | 
|Working capital                      |  |                   | 112,222 |  |              |                     | 122,503 |  |                    |  |   | (298,649 | ) |  |      | 66,299  |   |  |   | 84,540  | 
|Total assets                         |  |                   | 366,254 |  |              |                     | 394,207 |  |                    |  |   | 392,335  |   |  |      | 363,510 |   |  |   | 511,943 | 
|Total debt                           |  |                   | 135,416 |  |              |                     | 166,649 |  |                    |  |   | 397,135  |   |  |      | 325,521 |   |  |   | 331,792 | 
|Total shareholders equity/(deficit) |  |                   | 152,446 |  |              |                     | 166,381 |  |                    |  |   | (88,628  | ) |  |      | (52,353 | ) |  |   | 77,581  | 

|                         |                               |                   |   |                |              |                     |   |                |             |  |  |                         |        |  |      |   |        |      |  |   |        |  |  |   |        | 
|------------------------ | ----------------------------- | ----------------- | - | -------------- | ------------ | ------------------- | - | -------------- | ----------- |  |  | ----------------------- | ------ |  | ---- | - | ------ | ---- |  | - | ------ |  |  | - | ------ | 
|                         |                               | Successor Company |   |                |              | Predecessor Company |  
|                         |                               |                   |   |                |              |                     |  
|                         |                               |                   |   | For the Period |              |                     |   | For the Period |             |  | 
|                         |                               |                   |   | October 20     |              |                     |   | January 1      |             |  | 
|                         |                               | Year Ended        |   |                | through      |                     |   |                | through     |  |  | Year Ended December 31, |       
|                         |                               | December 31,      |   |                | December 31, |                     |   |                | October 19, |  |  |                         |       
|                         |                               | 2005              |   |                | 2004         |                     |   |                | 2004        |  |  | 2003                    |        |  | 2002 |   |        | 2001 | 
|                         |                               |                   |   |                |              |                     |   |                |             |  |  |                         |        |  |      |   |        |      | 
|Other Financial Data(a): |                               |                   |   |                |              |                     |   |                |             |  |  |                         |        |  |      |   |        |      |  |   |        |  |  |   |       
|                         | Depreciation and amortization |                   | $ | 15,144         |              |                     | $ | 3,594          |             |  |  | $                       | 18,786 |  |      | $ | 25,138 |      |  | $ | 27,645 |  |  | $ | 36,475 | 
|                         | Capital expenditures          |                   |   | 2,798          |              |                     |   | 2,088          |             |  |  |                         | 7,775  |  |      |   | 13,970 |      |  |   | 11,505 |  |  |   | 25,968 | 






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) | Information based on total cash flows.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|   
|(1) | Includes non-cash compensation expense income related to stock
    appreciation of Holding Class A Common Stock (as defined
    herein) in the amount of $(10,393) for the year ended
    December 31, 2001.                                                                                                                                                                                                                                                                                                                                                      
|   
|(2) | Consists of charges related to the closure and consolidation of
    certain facilities and administrative and corporate
    reorganizations and impairment of fixed assets related to the
    plant consolidations of $3,529 for the year ended
    December 31, 2005, $1,632 in the period from October 20
    through December 31, 2004, $262 in the period from January
    1 through October 19, 2004, $1,188 in 2003, and $7,938 in
    2001. (See Note 13 to our Consolidated Financial
    Statements included herein.)                                    
|   
|(3) | Reorganization expenses consist primarily of legal and
    consulting fees, and Bankruptcy reorganization expenses consist
    of legal and consulting fees, key employee retention expenses,
    deferred financing fees offset by the premium on the 11.75%
    Series B Senior Subordinated Notes.                                                                                                                                                                                                                                                             
|   
|(4) | In connection with the reorganization plan, we recorded a gain
    from debt forgiveness in respect of the exchange of our
    11.75% Senior Subordinated Notes of $150,000, 11.75%
    Series B Senior Subordinated Notes of $150,000 and
    14% Senior Subordinated Notes of $5,000 plus accrued
    interest at the time of filing bankruptcy (March 24, 2004)
    on these debt instruments of $29,359 for the 10% Secured Senior
    Subordinated Notes of $75,000.                                                                                         
|   
|(5) | Includes loss on discontinued operations from the
    U.S. Insulated Wire Business of $9,542, $10,500, $7,026,
    $12,072, $28,987 and $24,857 for the year ended
    December 31, 2005, the period October 20 through
    December 31, 2004, the period January 1 through
    October 19, 2004, the years ended December 31, 2003,
    2002 and 2001, respectively. Includes loss for the Wire Harness
    Product Liability (see Notes 9 and 17) claims of
    $6,929, $4,000 and $2,850 in the years ended December 31,
    2003, 2002 and 2001, respectively.






|        |                                                                                           
|------- | ------------------------------------------------------------------------------------------
|Item 7. | Managements Discussion and Analysis of Financial
    Condition and Results of Operations.

10-K.


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Overview






| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Bare Wire Products. Our bare and tin-plated copper wire
    products (or conductors) are used to transmit digital, video and
    audio signals or conduct electricity and are sold to a diverse
    customer base of over 1,000 insulated wire manufacturers and
    various industrial OEMs for use in computer and data
    communications products, general industrial, energy, appliances,
    automobiles and other applications. See Item 7.
    Managements Discussion and Analysis of Financial Condition
    and Results of Operations  Acquisition for more
    information about our plans to expand our domestic bare wire
    segment.
|
| |  | Engineered Wire Products  Europe. Our bare
    copper wire products are engineered and used to conduct
    electricity either for power or for grounding purposes and are
    sold to a diverse customer base of various OEMs for use in
    electrical appliances, power supply, aircraft and railway and
    automotive.                                                                                                                                                                                                                                                                                                                           
|
| |  | Insulated Wire Products. Our insulated wire products
    (copper conductors insulated with plastic or other polymeric
    compounds) are primarily manufactured for the automotive and
    appliance end-user markets. Our insulated wire products are used
    in the assembly of wire harnesses that are installed in both
    automobiles and appliances. A wire harness is comprised of an
    assembly of wires with connectors and terminals that transmit
    electricity between two or more end points. See
    U.S. Insulated Wire Business Sale for
    information about our recent sale and plans for the remainder of
    the segment. 





| |   |                                                                            
| | - | ---------------------------------------------------------------------------
| |  | demand for the end products in which our products are
    incorporated; and
|
| |  | our ability to compete with other suppliers in the industries we
    serve.





| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Electronics/data communications and
    industrial/energy  While the end user
    applications are very diverse, some of the contributing factors
    of demand in the markets include technology spending and major
    industrial and/or infrastructure projects, including build-out
    of computer networks, mining development, oil exploration and
    production projects, mass transit and general commercial and
    industrial real estate development.
|
| |  | Automobiles  North American industry
    production statistics, which are influenced by labor relations
    issues, regulatory requirements and trade agreements. For the
    year ended December 31, 2005, automotive industry
    production volumes were up 0.4% versus the same period for 2004.                                                                                                                                                              
|
| |  | Appliances  U.S. industry shipment
    statistics for items such as refrigerators, freezers, washers,
    dryers, ranges and dishwashers. These statistics are impacted by
    replacement rates for existing appliances, housing starts,
    existing home sales and mortgage refinancing rates. For the year
    ended December 31, 2005, industry shipments increased 2.4%
    over the same period for 2004.                                                  



23



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just-in










24



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U.S. Insulated Wire Business Sale






| |   |                                                                                                                                                                                                                                                                            
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | sold the inventory, equipment, spare parts and certain other
    assets located at our Avilla, Indiana facility and three
    facilities located in El Paso, Texas;                                                                                                        
|
| |  | sold our Avilla, Indiana facility, transferred leases for two of
    our El Paso, Texas facilities and leased a third
    El Paso, Texas facility to Copperfield (the third facility
    was subsequently sold to Copperfield on February 21, 2006
    for $2 million); and
|
| |  | transferred certain contracts related to these facilities.                                                                                                                                                                                                                 





Acquisition






Bankruptcy and Reorganization




25



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##### Table of Contents





Strategic Initiatives








Results of Operations


90-7, Financial Reporting by Entities in Reorganization under the
Bankruptcy Code 90-7).


90-7,




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|                                                                                                                                                          |  |              |       |   |                   |             |         |                |            |   |           |                  |                     |              |                   |    |  |   |      |   |  |  |       |    |  |  |   |       |   |  |  |       |    |  |   |       |   |  |  |       |   
|--------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ------------ | ----- | - | ----------------- | ----------- | ------- | -------------- | ---------- | - | --------- | ---------------- | ------------------- | ------------ | ----------------- | -- |  | - | ---- | - |  |  | ----- | -- |  |  | - | ----- | - |  |  | ----- | -- |  | - | ----- | - |  |  | ----- | --
|                                                                                                                                                          |  | Successor    |       |   |                   |             |         |                | Successor  |   |           |                  |                    
|                                                                                                                                                          |  | Company      |       |   |                   |             |         |                | Company    |   |           |                  | Predecessor Company |             
|                                                                                                                                                          |  |              |       |   |                   |             |         |                |            |   |           |                  |                     |             
|                                                                                                                                                          |  |              |       |   |                   |             |         | For the Period |            |   |           |                  |                     |             
|                                                                                                                                                          |  | For the Year |       |   |                   |             |         |                | October 20 |   |           |                  | For the Period      |              |                   |   
|                                                                                                                                                          |  | Ended        |       |   |                   |             | through |                |            |   | January 1 |                  |                     | For the Year |                  
|                                                                                                                                                          |  | December 31, |       |   | Pro Forma Year    |             |         | December 31,   |            |   |           | through          |                     |              | Ended             |   
|                                                                                                                                                          |  | 2005         |       |   | December 31, 2004 |             |         | 2004           |            |   |           | October 19, 2004 |                     |              | December 31, 2003 |   
|                                                                                                                                                          |  |              |       |   |                   |             |         |                |            |   |           |                  |                     |              |                   |   
|                                                                                                                                                          |  |              |       |   |                   | (Unaudited) |         |                |            |   |           |                  |                     |              |                   |    |  |   |      |  
|Net sales                                                                                                                                                 |  | $            | 539.3 |   |                   |             | 100     | %              |            | $ | 431.4     |                  |                     |              | 100.0             | %  |  | $ | 85.1 |   |  |  | 100.0 | %  |  |  | $ | 346.3 |   |  |  | 100.0 | %  |  | $ | 269.3 |   |  |  | 100.0 | % 
|Operating expenses:                                                                                                                                       |  |              |       |   |                   |             |         |                |            |   |           |                  |                     |              |                   |    |  |   |      |   |  |  |       |    |  |  |   |       |   |  |  |       |    |  |   |       |   |  |  |       |   
|Cost of goods sold, exclusive of depreciation expense shown below                                                                                         |  |              | 472.6 |   |                   |             | 87.6    | %              |            |   | 360.2     |                  |                     |              | 83.5              | %  |  |   | 71.3 |   |  |  | 83.8  | %  |  |  |   | 288.9 |   |  |  | 83.4  | %  |  |   | 205.0 |   |  |  | 76.1  | % 
|Selling, general and administrative expenses                                                                                                              |  |              | 34.2  |   |                   |             | 6.3     | %              |            |   | 27.5      |                  |                     |              | 6.4               | %  |  |   | 6.0  |   |  |  | 7.0   | %  |  |  |   | 21.0  |   |  |  | 6.1   | %  |  |   | 24.1  |   |  |  | 9.0   | % 
|Depreciation and amortization                                                                                                                             |  |              | 13.1  |   |                   |             | 2.4     | %              |            |   | 14.4      |                  |                     |              | 3.3               | %  |  |   | 3.8  |   |  |  | 4.5   | %  |  |  |   | 13.1  |   |  |  | 3.8   | %  |  |   | 16.7  |   |  |  | 6.2   | % 
|Impairment and plant closing charges                                                                                                                      |  |              | 3.5   |   |                   |             | 0.7     | %              |            |   | 1.9       |                  |                     |              | 0.4               | %  |  |   | 1.6  |   |  |  | 1.9   | %  |  |  |   | 0.2   |   |  |  | 0.0   | %  |  |   | 1.2   |   |  |  | 0.4   | % 
|Reorganization expenses                                                                                                                                   |  |              |      |   |                   |             |        | %              |            |   | 3.1       |                  |                     |              | 0.7               | %  |  |   |     |   |  |  |      | %  |  |  |   | 3.1   |   |  |  | 0.9   | %  |  |   | 2.1   |   |  |  | 0.8   | % 
|Goodwill impairment                                                                                                                                       |  |              |      |   |                   |             |        | %              |            |   |          |                  |                     |              |                  | %  |  |   |     |   |  |  |      | %  |  |  |   |      |   |  |  |      | %  |  |   | 3.0   |   |  |  | 1.1   | % 
|Gain on sale of property, plant and equipment                                                                                                             |  |              | (0.7  | ) |                   |             | (0.1    | )%             |            |   | (0.2      | )                |                     |              | (0.0              | )% |  |   |     |   |  |  |      | %  |  |  |   | (0.1  | ) |  |  |      | %  |  |   |      |   |  |  |      | % 
|                                                                                                                                                          |  |              |       |   |                   |             |         |                |            |   |           |                  |                     |              |                   |    |  |   |      |   |  |  |       |    |  |  |   |       |   |  | 
|Operating income                                                                                                                                          |  |              | 16.6  |   |                   |             | 3.1     | %              |            |   | 24.5      |                  |                     |              | 5.7               | %  |  |   | 2.4  |   |  |  | 2.8   | %  |  |  |   | 20.1  |   |  |  | 5.8   | %  |  |   | 17.2  |   |  |  | 6.4   | % 
|Bankruptcy reorganization items:                                                                                                                          |  |              |       |   |                   |             |         |                |            |   |           |                  |                     |              |                   |    |  |   |      |   |  |  |       |    |  |  |   |       |   |  |  |       |    |  |   |       |   |  |  |       |   
|Bankruptcy reorganization expenses                                                                                                                        |  |              |      |   |                   |             |        | %              |            |   |          |                  |                     |              |                  | %  |  |   |     |   |  |  |      | %  |  |  |   | (12.7 | ) |  |  | (3.7  | )% |  |   |      |   |  |  |      | % 
|Gain from debt forgiveness                                                                                                                                |  |              |      |   |                   |             |        | %              |            |   |          |                  |                     |              |                  | %  |  |   |     |   |  |  |      | %  |  |  |   | 259.3 |   |  |  | 74.9  | %  |  |   |      |   |  |  |      | % 
|Other income/(expense):                                                                                                                                   |  |              |       |   |                   |             |         |                |            |   |           |                  |                     |              |                   |    |  |   |      |   |  |  |       |    |  |  |   |       |   |  |  |       |    |  |   |       |   |  |  |       |   
|Interest expense (excluding interest of $21.0 and $0.8 on
    liabilities subject to compromise at October 19, 2004 and
    March 31, 2004, respectively) |  |              | (13.4 | ) |                   |             | (2.5    | )%             |            |   | (12.1     | )                |                     |              | (2.8              | )% |  |   | (2.6 | ) |  |  | (3.1  | )% |  |  |   | (14.6 | ) |  |  | (4.2  | )% |  |   | (39.7 | ) |  |  | (14.7 | )%
|Amortization of deferred financing costs                                                                                                                  |  |              | (0.6  | ) |                   |             | (0.1    | )%             |            |   | (0.5      | )                |                     |              | (0.1              | )% |  |   | (0.1 | ) |  |  | (0.1  | )% |  |  |   | (6.8  | ) |  |  | (2.0  | )% |  |   | (4.8  | ) |  |  | (1.8  | )%
|Other, net                                                                                                                                                |  |              | (0.1  | ) |                   |             |        | %              |            |   | (0.1      | )                |                     |              | (0.0              | )% |  |   |     |   |  |  |      | %  |  |  |   | (0.2  | ) |  |  | (0.0  | )% |  |   | (0.1  | ) |  |  |      | % 
|                                                                                                                                                          |  |              |       |   |                   |             |         |                |            |   |           |                  |                     |              |                   |    |  |   |      |   |  |  |       |    |  |  |   |       |   |  | 
|Income/(loss) from continuing operations before income tax
    provision (benefit)                                                                        |  |              | 2.5   |   |                   |             | 0.5     | %              |            |   | 11.8      |                  |                     |              | 2.7               | %  |  |   | (0.3 | ) |  |  | (0.4  | )% |  |  |   | 245.1 |   |  |  | 70.8  | %  |  |   | (27.4 | ) |  |  | (10.1 | )%
|Income tax provisions/(benefit)                                                                                                                           |  |              | 4.2   |   |                   |             | 0.8     | %              |            |   | 4.3       |                  |                     |              | 1.0               | %  |  |   |     |   |  |  |      | %  |  |  |   | 0.7   |   |  |  | 0.2   | %  |  |   | 0.3   |   |  |  | 0.1   | % 
|                                                                                                                                                          |  |              |       |   |                   |             |         |                |            |   |           |                  |                     |              |                   |    |  |   |      |   |  |  |       |    |  |  |   |       |   |  | 

27



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|                                                                                                      |  |              |       |   |                   |             |         |                |            |   |           |                  |                     |              |                   |    |  |   |       |   |  |  |       |    |  |  |   |       |   |  |  |      |    |  |   |       |   |  |  |       |   
|----------------------------------------------------------------------------------------------------- |  | ------------ | ----- | - | ----------------- | ----------- | ------- | -------------- | ---------- | - | --------- | ---------------- | ------------------- | ------------ | ----------------- | -- |  | - | ----- | - |  |  | ----- | -- |  |  | - | ----- | - |  |  | ---- | -- |  | - | ----- | - |  |  | ----- | --
|                                                                                                      |  | Successor    |       |   |                   |             |         |                | Successor  |   |           |                  |                    
|                                                                                                      |  | Company      |       |   |                   |             |         |                | Company    |   |           |                  | Predecessor Company |             
|                                                                                                      |  |              |       |   |                   |             |         |                |            |   |           |                  |                     |             
|                                                                                                      |  |              |       |   |                   |             |         | For the Period |            |   |           |                  |                     |             
|                                                                                                      |  | For the Year |       |   |                   |             |         |                | October 20 |   |           |                  | For the Period      |              |                   |   
|                                                                                                      |  | Ended        |       |   |                   |             | through |                |            |   | January 1 |                  |                     | For the Year |                  
|                                                                                                      |  | December 31, |       |   | Pro Forma Year    |             |         | December 31,   |            |   |           | through          |                     |              | Ended             |   
|                                                                                                      |  | 2005         |       |   | December 31, 2004 |             |         | 2004           |            |   |           | October 19, 2004 |                     |              | December 31, 2003 |   
|                                                                                                      |  |              |       |   |                   |             |         |                |            |   |           |                  |                     |              |                   |   
|                                                                                                      |  |              |       |   |                   | (Unaudited) |         |                |            |   |           |                  |                     |              |                   |    |  |   |       |  
|Income/(loss) from continuing operations                                                              |  |              | (1.7  | ) |                   |             | (0.3    | )%             |            |   | 7.5       |                  |                     |              | 1.7               | %  |  |   | (0.3  | ) |  |  | (0.4  | )% |  |  |   | 244.4 |   |  |  | 70.6 | %  |  |   | (27.7 | ) |  |  | (10.2 | )%
|Loss from discontinued operations, net of income taxes of
    ($6.3), $0, $0, $0 and $0, respectively |  |              | (9.5  | ) |                   |             | (1.8    | )%             |            |   | (9.8      | )                |                     |              | (2.3              | )% |  |   | (10.5 | ) |  |  | (12.3 | )% |  |  |   | (7.1  | ) |  |  | (2.1 | )% |  |   | (19.0 | ) |  |  | (7.1  | )%
|                                                                                                      |  |              |       |   |                   |             |         |                |            |   |           |                  |                     |              |                   |    |  |   |       |   |  |  |       |    |  |  |   |       |   |  | 
|Net income/(loss)                                                                                     |  | $            | (11.2 | ) |                   |             | (2.1    | )%             |            | $ | (2.3      | )                |                     |              | (0.6              | )% |  | $ | (10.8 | ) |  |  | (12.7 | )% |  |  | $ | 237.3 |   |  |  | 68.5 | %  |  | $ | (46.7 | ) |  |  | (17.3 | )%
|                                                                                                      |  |              |       |   |                   |             |         |                |            |   |           |                  |                     |              |                   |    |  |   |       |   |  |  |       |    |  |  |   |       |   |  | 



|                         |                           |              |   |       |                |             |            |                |           |   |                |                  |                     |              |              |    |     |   |   |      |      |  |  |     |     |   |  |   |       |       |  |  |    |     |   |   |       |       |  |  |    |     |  
|------------------------ | ------------------------- | ------------ | - | ----- | -------------- | ----------- | ---------- | -------------- | --------- | - | -------------- | ---------------- | ------------------- | ------------ | ------------ | -- | --- | - | - | ---- | ---- |  |  | --- | --- | - |  | - | ----- | ----- |  |  | -- | --- | - | - | ----- | ----- |  |  | -- | --- | -
|                         |                           | Successor    |   |       |                |             |            |                | Successor |   |                |                  |                    
|                         |                           | Company      |   |       |                |             |            |                | Company   |   |                |                  | Predecessor Company |             
|                         |                           |              |   |       |                |             |            |                |           |   |                |                  |                     |             
|                         |                           |              |   |       |                |             |            | For the Period |           |   |                |                  |                     |             
|                         |                           | For the Year |   |       |                |             | October 20 |                |           |   | For the Period |                  |                     | For the Year |             
|                         |                           | Ended        |   |       | Pro Forma Year |             |            | through        |           |   |                | January 1        |                     |              | Ended        |   
|                         |                           | December 31, |   |       | December 31,   |             |            | December 31,   |           |   |                | through          |                     |              | December 31, |   
|                         |                           | 2005         |   |       | 2004           |             |            | 2004           |           |   |                | October 19, 2004 |                     |              | 2003         |   
|                         |                           |              |   |       |                |             |            |                |           |   |                |                  |                     |              |              |   
|                         |                           |              |   |       |                | (Unaudited) |            |                |           |   |                |                  |                     |              |              |    |     |   |   |     
|Net sales:               |                           |              |   |       |                |             |            |                |           |   |                |                  |                     |              |              |    |     |   |   |      |      |  |  |     |     |   |  |   |       |       |  |  |    |     |   |   |       |       |  |  |   
|                         | Bare Wire                 |              | $ | 391.8 |                |             |            | 73             | %         |   | $              | 308.8            |                     |              |              | 72 | %   |   | $ | 62.6 |      |  |  | 74  | %   |   |  | $ | 246.2 |       |  |  | 71 | %   |   | $ | 190.8 |       |  |  | 71 | %  
|                         | Engineered Wire   Europe |              |   | 38.8  |                |             |            | 7              | %         |   |                | 37.6             |                     |              |              | 9  | %   |   |   | 7.0  |      |  |  | 8   | %   |   |  |   | 30.6  |       |  |  | 9  | %   |   |   | 30.9  |       |  |  | 11 | %  
|                         | Insulated Wire            |              |   | 114.6 |                |             |            | 21             | %         |   |                | 91.8             |                     |              |              | 21 | %   |   |   | 16.8 |      |  |  | 20  | %   |   |  |   | 75.0  |       |  |  | 22 | %   |   |   | 52.7  |       |  |  | 20 | %  
|                         | Elimination               |              |   | (5.9  | )              |             |            | (1             | )%        |   |                | (6.8             | )                   |              |              | (2 | )%  |   |   | (1.3 | )    |  |  | (2  | )%  |   |  |   | (5.5  | )     |  |  | (2 | )%  |   |   | (5.1  | )     |  |  | (2 | )% 
|                         |                           |              |   |       |                |             |            |                |           |   |                |                  |                     |              |              |    |     |   |   |      |      |  |  |     |     |   |  |   |       |       | 
|                         |                           | Total        |   | $     | 539.3          |             |            |                | 100       | % |                | $                | 431.4               |              |              |    | 100 | % |   | $    | 85.1 |  |  |     | 100 | % |  |   | $     | 346.3 |  |  |    | 100 | % |   | $     | 269.3 |  |  |    | 100 | %
|                         |                           |              |   |       |                |             |            |                |           |   |                |                  |                     |              |              |    |     |   |   |      |      |  |  |     |     |   |  |   |       |       | 
|Operating income/(loss): |                           |              |   |       |                |             |            |                |           |   |                |                  |                     |              |              |    |     |   |   |      |      |  |  |     |     |   |  |   |       |       |  |  |    |     |   |   |       |       |  |  |   
|                         | Bare Wire                 |              | $ | 20.1  |                |             |            | 92             | %         |   | $              | 15.7             |                     |              |              | 58 | %   |   | $ | 2.8  |      |  |  | 46  | %   |   |  | $ | 18.1  |       |  |  | 79 | %   |   | $ | 18.0  |       |  |  | 68 | %  
|                         | Engineered Wire   Europe |              |   | 1.4   |                |             |            | 6              | %         |   |                | 2.7              |                     |              |              | 10 | %   |   |   | (2.8 | )    |  |  | (46 | )%  |   |  |   | 1.8   |       |  |  | 8  | %   |   |   | 1.1   |       |  |  | 5  | %  
|                         | Insulated Wire            |              |   | 0.5   |                |             |            | 2              | %         |   |                | 8.8              |                     |              |              | 32 | %   |   |   | 2.4  |      |  |  | 100 | %   |   |  |   | 2.9   |       |  |  | 13 | %   |   |   | 7.2   |       |  |  | 27 | %  
|                         |                           |              |   |       |                |             |            |                |           |   |                |                  |                     |              |              |    |     |   |   |      |      |  |  |     |     |   |  |   |       |       | 
|                         |                           | Subtotal     |   |       | 22.0           |             |            |                | 100       | % |                |                  | 27.2                |              |              |    | 100 | % |   |      | 2.4  |  |  |     | 100 | % |  |   |       | 22.8  |  |  |    | 100 | % |   |       | 26.3  |  |  |    | 100 | %
|                         |                           |              |   |       |                |             |            |                |           |   |                |                  |                     |              |              |    |     |   |   |      |      |  |  |     |     |   |  |   |       |       | 
|                         | Corporate                 |              |   | (5.4  | )              |             |            |                |           |   |                | (2.7             | )                   |              |              |    |     |   |   |     |      |  |  |     |     |   |  |   | (2.7  | )     |  |  |    |     |   |   | (9.1  | )     |  |  |    |    
|                         |                           |              |   |       |                |             |            |                |           |   |                |                  |                     |              |              |    |     |   |   |      |      |  |  |     |     |   |  |   |       |       | 
|                         |                           | Total        |   | $     | 16.6           |             |            |                |           |   |                | $                | 24.5                |              |              |    |     |   |   | $    | 2.4  |  |  |     |     |   |  |   | $     | 20.1  |  |  |    |     |   |   | $     | 17.2  |  |  |    |     |  
|                         |                           |              |   |       |                |             |            |                |           |   |                |                  |                     |              |              |    |     |   |   |      |      |  |  |     |     |   |  |   |       |       | 



| |                                                                               
| | ------------------------------------------------------------------------------
| | Year Ended December 31, 2005 versus Pro Forma Year
    Ended December 31, 2004





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S-1


90-7


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S-1














| |                                                                                                                           
| | --------------------------------------------------------------------------------------------------------------------------
| | Successor Company for the Period from October 20 through
    December 31, 2004 versus the Year Ended December 31,
    2003



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year-over




| |                                                                                                                           
| | --------------------------------------------------------------------------------------------------------------------------
| | Predecessor Company for the Period from January 1
    through October 19, 2004 versus the Year Ended
    December 31, 2003









| |                                                                               
| | ------------------------------------------------------------------------------
| | Pro Forma Year Ended December 31, 2004 versus Year
    Ended December 31, 2003







31



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start-up




90-7






32



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step-up step-up












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INTERNATIONAL WIRE GROUP, INC.


UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS


For the Year Ended December 31, 2004


|                                                                                |                                                                                                               |                                                 |         |        |   |             |   |         |             |   |   |           |          |      |   |            |         |  
|------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------- | ----------------------------------------------- | ------- | ------ | - | ----------- | - | ------- | ----------- | - | - | --------- | -------- | ---- | - | ---------- | ------- | -
|                                                                                |                                                                                                               | Successor                                       |         |        |   | Predecessor |   |         |             |   |  
|                                                                                |                                                                                                               | Company for                                     |         |        |   | Company for |   |         |             |   |  
|                                                                                |                                                                                                               | the Period                                      |         |        |   | the Period  |   |         |             |   |  
|                                                                                |                                                                                                               | October 20                                      |         |        |   | January 1   |   |         |             |   |  
|                                                                                |                                                                                                               | through                                         |         |        |   | through     |   |         |             |   |  
|                                                                                |                                                                                                               | December 31,                                    |         |        |   | October 19, |   |         |             |   |  
|                                                                                |                                                                                                               | 2004                                            |         |        |   | 2004        |   |         | Adjustments |   |   | Pro Forma |         
|                                                                                |                                                                                                               |                                                 |         |        |   |             |   |         |             |   |   |           |         
|                                                                                |                                                                                                               | (In thousands, except share and per share data) |        
|Net sales                                                                       |                                                                                                               | $                                               | 85,103  |        |   |             | $ | 346,310 |             |   | $ |          |          |      | $ | 431,413    |        
|Operating expenses:                                                             |                                                                                                               |                                                 |         |        |   |             |   |         |             |   |   |           |          |      |   |            |        
|                                                                                | Cost of good sold, exclusive of depreciation expense shown below                                              |                                                 |         | 71,336 |   |             |   |         | 288,901     |   |   |           |         |      |   |            | 360,237 |  
|                                                                                | Selling, general and administrative expenses                                                                  |                                                 |         | 6,006  |   |             |   |         | 21,027      |   |   |           | 481      | (1)  |   |            | 27,514  |  
|                                                                                | Depreciation                                                                                                  |                                                 |         | 2,934  |   |             |   |         | 11,387      |   |   |           | (3,869   | )(2) |   |            | 10,452  |  
|                                                                                | Amortization                                                                                                  |                                                 |         | 825    |   |             |   |         | 1,751       |   |   |           | 1,285    | (3)  |   |            | 3,861   |  
|                                                                                | Reorganization expenses                                                                                       |                                                 |         |       |   |             |   |         | 3,062       |   |   |           |         |      |   |            | 3,062   |  
|                                                                                | Impairment and plant closing charges                                                                          |                                                 |         | 1,632  |   |             |   |         | 262         |   |   |           |         |      |   |            | 1,894   |  
|                                                                                | Gain on sale of property, plant and equipment                                                                 |                                                 |         | (8     | ) |             |   |         | (158        | ) |   |           |         |      |   |            | (166    | )
|                                                                                |                                                                                                               |                                                 |         |        |   |             |   |         |             |   |   |           |         
|Operating income/(loss)                                                         |                                                                                                               |                                                 | 2,378   |        |   |             |   | 20,078  |             |   |   | 2,103     |          |      |   | 24,559     |        
|Bankruptcy reorganization items:                                                |                                                                                                               |                                                 |         |        |   |             |   |         |             |   |   |           |          |      |   |            |        
|                                                                                | Bankruptcy reorganization expenses                                                                            |                                                 |         |       |   |             |   |         | (12,710     | ) |   |           | 12,710   | (4)  |   |            |        |  
|                                                                                | Gain from debt forgiveness                                                                                    |                                                 |         |       |   |             |   |         | 259,252     |   |   |           | (259,252 | )(5) |   |            |        |  
|Other income/(expense):                                                         |                                                                                                               |                                                 |         |        |   |             |   |         |             |   |   |           |          |      |   |            |        
|                                                                                | Interest expense (excluding interest of $20,959 on liabilities
    subject to compromise at October 19, 2004) |                                                 |         | (2,586 | ) |             |   |         | (14,625     | ) |   |           | 3,890    | (6)  |   |            | (13,321 | )
|                                                                                | Amortization of deferred financing fees                                                                       |                                                 |         | (127   | ) |             |   |         | (6,813      | ) |   |           | 6,429    | (7)  |   |            | (511    | )
|                                                                                | Other, net                                                                                                    |                                                 |         | 39     |   |             |   |         | (182        | ) |   |           |         |      |   |            | (143    | )
|                                                                                |                                                                                                               |                                                 |         |        |   |             |   |         |             |   |   |           |         
|Income/(loss) before income tax provision                                       |                                                                                                               |                                                 | (296    | )      |   |             |   | 245,000 |             |   |   | (234,120  | )        |      |   | 10,584     |        
|Income tax provision/(benefit)                                                  |                                                                                                               |                                                 | (34     | )      |   |             |   | 666     |             |   |   | 3,602     | (8)      |      |   | 4,234      |        
|                                                                                |                                                                                                               |                                                 |         |        |   |             |   |         |             |   |   |           |         
|Income/(loss) from continuing operations                                        |                                                                                                               |                                                 | (262    | )      |   |             |   | 244,334 |             |   |   | (237,722  | )        |      |   | 6,350      |        
|Income/(loss) from discontinued operations                                      |                                                                                                               |                                                 | (10,500 | )      |   |             |   | (7,026  | )           |   |   | 8,854     |          |      |   | (8,672     | )      
|                                                                                |                                                                                                               |                                                 |         |        |   |             |   |         |             |   |   |           |         
|Net income/(loss)                                                               |                                                                                                               | $                                               | (10,762 | )      |   |             | $ | 237,308 |             |   | $ | (228,868  | )        |      | $ | (2,322     | )      
|                                                                                |                                                                                                               |                                                 |         |        |   |             |   |         |             |   |   |           |         
|Pro forma basic and fully diluted net                                           |                                                                                                               |                                                 |         |        |   |             |   |         |             |   |   |           |          |      |   |            |        
|income/(loss) per share                                                         |                                                                                                               |                                                 |         |        |   |             |   |         |             |   |   |           |          |      | $ | (0.23      | )      
|                                                                                |                                                                                                               |                                                 |         |        |   |             |   |         |             |   |   |           |         
|Pro forma weighted average basic and diluted shares outstanding
    (unaudited) |                                                                                                               |                                                 |         |        |   |             |   |         |             |   |   |           |          |      |   | 10,000,002 |        






|    |                                                                                                                                         
|--- | ----------------------------------------------------------------------------------------------------------------------------------------
|(1) | Reflects the reversal of the net periodic postretirement benefit
    cost related to the Companys self-funded post retirement
    plan.

34



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|    |                                                                                                                                                                                                      
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(2) | Reflects the adjustment to depreciation relating to the
    adjustment to the fair market value and adjusted remaining
    useful lives of the existing property, plant and equipment as
    follows:

|                                                                                      |  |   |         |  
|------------------------------------------------------------------------------------- |  | - | ------- | -
|Elimination of historical depreciation expense                                        |  | $ | (14,321 | )
|Depreciation expense on fixed assets restated at fair value as
    of January 1, 2004 |  |   | 10,452  |  
|                                                                                      |  |   |        
|                                                                                      |  | $ | (3,869  | )
|                                                                                      |  |   |        



|    |                                                                                                                                                                                                                                                     
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(3) | Reflects the additional amortization of customer contracts,
    trade names and trademarks identified as part of the allocation
    of reorganization value.                                                                                        
|   
|(4) | Reflects elimination of bankruptcy reorganization expenses.                                                                                                                                                                                         
|   
|(5) | Reflects elimination of gain from debt forgiveness.                                                                                                                                                                                                 
|   
|(6) | Reflects adjustment of interest expense for the $230,000
    reduction of Senior Subordinated Notes pursuant to the Plan of
    Reorganization and interest under the revolving credit facility
    and term loan ended October 20, 2004 as follows:

|                                                                                          |  |              |        |  |               |  |       |                  |  |   |        |  
|----------------------------------------------------------------------------------------- |  | ------------ | ------ |  | ------------- |  | ----- | ---------------- |  | - | ------ | -
|                                                                                          |  | Debt Balance |        |  | Interest Rate |  |       | Interest Expense | 
|                                                                                          |  |              |        |  |               |  |       |                  | 
|Elimination of historical interest expense for the period prior
    to the Reorganization |  |              |        |  |               |  |       |                  |  | $ | 17,211 |  
|Add:                                                                                      |  |              |        |  |               |  |       |                  |  |   |        |  
|Interest on new credit facility                                                           |  | $            | 90,308 |  |               |  | 6.05  | %                |  |   | (5,464 | )
|Fees related to new credit facility                                                       |  |              |        |  |               |  |       |                  |  |   | (250   | )
|Interest on 10% Senior Secured Notes                                                      |  |              | 75,000 |  |               |  | 10.00 | %                |  |   | (7,500 | )
|Interest on other indebtedness                                                            |  |              | 1,341  |  |               |  | 8.00  | %                |  |   | (107   | )
|                                                                                          |  |              |        |  |               |  |       |                  | 
|                                                                                          |  |              |        |  |               |  |       |                  |  | $ | 3,890  |  
|                                                                                          |  |              |        |  |               |  |       |                  | 



|    |                                                                                                                                                                      
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(7) | Reflects the adjustment of the amortization of net deferred
    financing fees for the revolving credit facility and term loan
    ended October 20, 2004 as follows:

|                                                                                                                                      |  |   |       |  
|------------------------------------------------------------------------------------------------------------------------------------- |  | - | ----- | -
|Elimination of historical amortization of deferred financing fees                                                                     |  | $ | 6,940 |  
|Amortization on $3,202 of deferred financing fees incurred on
    new credit facility and 10% Senior Secured Notes over
    60 months |  |   | (511  | )
|                                                                                                                                      |  |   |      
|                                                                                                                                      |  | $ | 6,429 |  
|                                                                                                                                      |  |   |      



|    |                                                                                                                                                                                                                                                                                                                                                                                                                                
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(8) | Reflects income/(loss) before income taxes at a 40% effective
    rate. No consideration has been given to our deferred tax
    assets, including net operating loss carryforwards, which are
    fully offset by a valuation allowance as any reversal of the
    valuation allowance will offset goodwill first, then intangible
    assets and then increase additional paid-in capital in
    accordance with
    SOP 90-7.

Critical Accounting Policies






| |                    
| | -------------------
| | Revenue Recognition



35



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| |                    
| | -------------------
| | Accounts Receivable





| |            
| | -----------
| | Inventories





| |               
| | --------------
| | Deferred Taxes

90-7.






36



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| |                  
| | -----------------
| | Long Lived Assets





Recently Issued Accounting Standards




| |                                     
| | ------------------------------------
| | Recently Issued Accounting Standards

Inventory Costs  an
amendment of ARB No. 43, Chapter 4 Inventory Pricing,


Share-Based Payment.


Share-Based Payment.


Accounting for Conditional
Asset Retirement Obligations, Accounting for Asset Retirement
Obligations.


37



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Exchanges of Nonmonetary Assets, an amendment to APB Opinion
No. 29 Accounting for
Nonmonetary Transactions,


Liquidity and Capital Resources




| |                               
| | ------------------------------
| | Working Capital and Cash Flows











38



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| |                       
| | ----------------------
| | Financing Arrangements





| |          
| | ---------
| | Liquidity











39



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Off-Balance Sheet Arrangements




Contractual Obligations




|                                   |  |       |       |           |        |   |      |           |  |   |           |  |  |         |      |  |  |   |      | 
|---------------------------------- |  | ----- | ----- | --------- | ------ | - | ---- | --------- |  | - | --------- |  |  | ------- | ---- |  |  | - | ---- | 
|                                   |  |       |       | Less Than |        |   |      |           |  |   | More Than | 
|Contractual Obligations(3)         |  | Total |       |           | 1 Year |   |      | 1-3 Years |  |   | 3-5 Years |  |  | 5 Years |     
|                                   |  |       |       |           |        |   |      |           |  |   |           |  |  |         |     
|Debt(1)                            |  | $     | 135.4 |           |        | $ | 0.2  |           |  | $ | 0.0       |  |  | $       | 60.2 |  |  | $ | 75.0 | 
|Estimated interest on debt(2)      |  |       | 40.5  |           |        |   | 11.4 |           |  |   | 10.8      |  |  |         | 10.8 |  |  |   | 7.5  | 
|Open purchase orders               |  |       | 14.2  |           |        |   | 14.2 |           |  |   | 0.0       |  |  |         | 0.0  |  |  |   | 0.0  | 
|Operating leases                   |  |       | 3.1   |           |        |   | 1.5  |           |  |   | 1.5       |  |  |         | 0.1  |  |  |   | 0.0  | 
|                                   |  |       |       |           |        |   |      |           |  |   |           |  |  |         |     
|Total contractual cash obligations |  | $     | 193.2 |           |        | $ | 27.3 |           |  | $ | 12.3      |  |  | $       | 71.1 |  |  | $ | 82.5 | 
|                                   |  |       |       |           |        |   |      |           |  |   |           |  |  |         |     






|    |                                                                                                                                                                                 
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Debt obligations are exclusive of interest.                                                                                                                                     
|   
|(2) | Interest was estimated using the debt balance outstanding at
    December 31, 2005 and the interest rates in effect on
    December 31, 2005.                                   
|   
|(3) | Deferred compensation of $1.7 million was excluded from the
    contractual obligations table as the timing of the payments is
    dependent on the employees termination date.






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



Interest Rate Risk




Foreign Currency Risk


time-to


40



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Commodity Price Risk


5/16-inch




41



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|        |                                             
|------- | --------------------------------------------
|Item 8. | Financial Statements and Supplementary Data.

INTERNATIONAL WIRE GROUP, INC.


INDEX


|                                          |                                                                                                                                                                                                                                                                          |  |  |    | 
|----------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ |  |  | -- | 
|Audited Consolidated Financial Statements |                                                                                                                                                                                                                                                                          |  |  |   
|                                          | Reports of Independent Registered Public Accounting Firm                                                                                                                                                                                                                 |  |  | 43 | 
|                                          | Balance Sheets as of December 31, 2005 and
    December 31, 2004                                                                                                                                                                                                         |  |  | 45 | 
|                                          | Statements of Operations for the Year Ended December 31,
    2005, for the Periods from October 20 through December 31,
    2004 (Successor) and January 1 through October 19, 2004,
    and for the Year Ended December 31, 2003 (Predecessor)                          |  |  | 46 | 
|                                          | Statements of Changes in Stockholders Equity for the Year
    Ended December 31, 2005, for the Periods from October 20
    through December 31, 2004 (Successor) and January 1 through
    October 19, 2004, and for the Year Ended December 31,
    2003 (Predecessor) |  |  | 47 | 
|                                          | Statements of Cash Flows for the Year Ended December 31,
    2005, for the Periods from October 20 through December 31,
    2004 (Successor) and January 1 through October 19, 2004,
    and for the Year Ended December 31, 2003 (Predecessor)                          |  |  | 48 | 
|                                          | Notes to Consolidated Financial Statements                                                                                                                                                                                                                               |  |  | 49 | 

42



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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM










| |                               
| | ------------------------------
| | /s/ PricewaterhouseCoopers LLP







43



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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM










| |                               
| | ------------------------------
| | /s/ PricewaterhouseCoopers LLP







44



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INTERNATIONAL WIRE GROUP, INC.


CONSOLIDATED BALANCE SHEETS


|                                                                                                                            |                                                          |                                            |         |         |              |  |         |         |         | 
|--------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------- | ------------------------------------------ | ------- | ------- | ------------ |  | ------- | ------- | ------- | 
|                                                                                                                            |                                                          | December 31,                               |         |         | December 31, | 
|                                                                                                                            |                                                          | 2005                                       |         |         | 2004         | 
|                                                                                                                            |                                                          |                                            |         |         |              | 
|                                                                                                                            |                                                          | (In thousands, except for share            |        
|                                                                                                                            |                                                          | data)                                      |        
|ASSETS                                                                                                                     
|Current assets:                                                                                                             |                                                          |                                            |         |         |              |  |         |        
|                                                                                                                            | Cash and cash equivalents                                |                                            | $       | 5,422   |              |  | $       | 15,192  |        
|                                                                                                                            | Accounts receivable, less allowance of $3,036 and $4,060 |                                            |         | 98,296  |              |  |         | 70,609  |        
|                                                                                                                            | Inventories                                              |                                            |         | 56,874  |              |  |         | 83,319  |        
|                                                                                                                            | Prepaid expenses and other                               |                                            |         | 10,112  |              |  |         | 11,118  |        
|                                                                                                                            | Asset held for sale                                      |                                            |         | 1,975   |              |  |         |        |        
|                                                                                                                            | Deferred income taxes                                    |                                            |         | 8,900   |              |  |         |        |        
|                                                                                                                            |                                                          |                                            |         |         |              | 
|                                                                                                                            |                                                          | Total current assets                       |         |         | 181,579      |  |         |         | 180,238 | 
|Property, plant and equipment, net                                                                                          |                                                          |                                            | 85,440  |         |              |  | 104,132 |        
|Goodwill                                                                                                                    |                                                          |                                            | 71,193  |         |              |  | 71,359  |        
|Identifiable intangibles, net                                                                                               |                                                          |                                            | 21,358  |         |              |  | 27,898  |        
|Deferred financing costs, net                                                                                               |                                                          |                                            | 2,457   |         |              |  | 3,075   |        
|Restricted cash                                                                                                             |                                                          |                                            | 1,922   |         |              |  | 3,107   |        
|Other assets                                                                                                                |                                                          |                                            | 2,305   |         |              |  | 4,398   |        
|                                                                                                                            |                                                          |                                            |         |         |              | 
|                                                                                                                            |                                                          | Total assets                               |         | $       | 366,254      |  |         | $       | 394,207 | 
|                                                                                                                            |                                                          |                                            |         |         |              | 
|LIABILITIES AND STOCKHOLDERS EQUITY                                                                                       
|Current liabilities:                                                                                                        |                                                          |                                            |         |         |              |  |         |        
|                                                                                                                            | Current maturities of long-term debt                     |                                            | $       | 228     |              |  | $       | 1,341   |        
|                                                                                                                            | Accounts payable                                         |                                            |         | 33,865  |              |  |         | 12,751  |        
|                                                                                                                            | Accrued and other liabilities                            |                                            |         | 17,261  |              |  |         | 23,374  |        
|                                                                                                                            | Accrued payroll and payroll related items                |                                            |         | 4,737   |              |  |         | 6,190   |        
|                                                                                                                            | Customers deposits                                      |                                            |         | 11,428  |              |  |         | 12,376  |        
|                                                                                                                            | Accrued interest                                         |                                            |         | 1,838   |              |  |         | 1,703   |        
|                                                                                                                            |                                                          |                                            |         |         |              | 
|                                                                                                                            |                                                          | Total current liabilities                  |         |         | 69,357       |  |         |         | 57,735  | 
|Long-term debt, less current maturities                                                                                     |                                                          |                                            | 135,188 |         |              |  | 165,308 |        
|Other long-term liabilities                                                                                                 |                                                          |                                            | 3,558   |         |              |  | 4,783   |        
|Deferred income taxes                                                                                                       |                                                          |                                            | 5,705   |         |              |  |        |        
|                                                                                                                            |                                                          |                                            |         |         |              | 
|                                                                                                                            |                                                          | Total liabilities                          |         |         | 213,808      |  |         |         | 227,826 | 
|                                                                                                                            |                                                          |                                            |         |         |              | 
|Stockholders equity: Common stock, $.01 par value,
    20,000,000 shares authorized, 10,000,002 issued and
    outstanding |                                                          |                                            | 100     |         |              |  | 100     |        
|                                                                                                                            | Contributed capital                                      |                                            |         | 175,600 |              |  |         | 175,600 |        
|                                                                                                                            | Accumulated (deficit)                                    |                                            |         | (21,948 | )            |  |         | (10,762 | )      
|                                                                                                                            | Accumulated other comprehensive income/(loss)            |                                            |         | (1,306  | )            |  |         | 1,443   |        
|                                                                                                                            |                                                          |                                            |         |         |              | 
|                                                                                                                            |                                                          | Total stockholders equity                 |         |         | 152,446      |  |         |         | 166,381 | 
|                                                                                                                            |                                                          |                                            |         |         |              | 
|                                                                                                                            |                                                          | Total liabilities and stockholders equity |         | $       | 366,254      |  |         | $       | 394,207 | 
|                                                                                                                            |                                                          |                                            |         |         |              | 



45



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INTERNATIONAL WIRE GROUP, INC.


CONSOLIDATED STATEMENTS OF OPERATIONS


|                                                                                                  |                                                                                                               |                                         |            |                |              |   |            |                |             |  |   |              |         |   |   |         |         |  
|------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------- | --------------------------------------- | ---------- | -------------- | ------------ | - | ---------- | -------------- | ----------- |  | - | ------------ | ------- | - | - | ------- | ------- | -
|                                                                                                  |                                                                                                               | Successor                               |            |                | Successor    |   |            |                | Predecessor |  |   | Predecessor  |        
|                                                                                                  |                                                                                                               | Company                                 |            |                | Company      |   |            |                | Company     |  |   | Company      |        
|                                                                                                  |                                                                                                               |                                         |            |                |              |   |            |                |             |  |   |              |        
|                                                                                                  |                                                                                                               |                                         |            | For the Period |              |   |            | For the Period |             |  |  
|                                                                                                  |                                                                                                               | For the Year                            |            |                | October 20   |   |            |                | January 1   |  |   | For the Year |        
|                                                                                                  |                                                                                                               | Ended                                   |            |                | through      |   |            |                | through     |  |   | Ended        |        
|                                                                                                  |                                                                                                               | December 31,                            |            |                | December 31, |   |            |                | October 19, |  |   | December 31, |        
|                                                                                                  |                                                                                                               | 2005                                    |            |                | 2004         |   |            |                | 2004        |  |   | 2003         |        
|                                                                                                  |                                                                                                               |                                         |            |                |              |   |            |                |             |  |   |              |        
|                                                                                                  |                                                                                                               | (In thousands, except per share amount) |           
|Net sales                                                                                         |                                                                                                               | $                                       | 539,285    |                |              | $ | 85,103     |                |             |  | $ | 346,310      |         |   | $ | 269,313 |        
|Operating expenses:                                                                               |                                                                                                               |                                         |            |                |              |   |            |                |             |  |   |              |         |   |   |         |        
|Cost of goods sold, exclusive of depreciation expense shown below                                 |                                                                                                               |                                         | 472,581    |                |              |   | 71,336     |                |             |  |   | 288,901      |         |   |   | 204,974 |        
|Selling, general and administrative expenses                                                      |                                                                                                               |                                         | 34,222     |                |              |   | 6,006      |                |             |  |   | 21,027       |         |   |   | 24,093  |        
|Depreciation                                                                                      |                                                                                                               |                                         | 9,347      |                |              |   | 2,934      |                |             |  |   | 11,387       |         |   |   | 14,217  |        
|Amortization                                                                                      |                                                                                                               |                                         | 3,709      |                |              |   | 825        |                |             |  |   | 1,751        |         |   |   | 2,498   |        
|Impairment and plant closing charges                                                              |                                                                                                               |                                         | 3,529      |                |              |   | 1,632      |                |             |  |   | 262          |         |   |   | 1,188   |        
|Reorganization expenses                                                                           |                                                                                                               |                                         |           |                |              |   |           |                |             |  |   | 3,062        |         |   |   | 2,172   |        
|Goodwill impairment                                                                               |                                                                                                               |                                         |           |                |              |   |            |                |             |  |   |             |         |   |   | 2,973   |        
|Gain on sale of property plant and equipment                                                      |                                                                                                               |                                         | (721       | )              |              |   | (8         | )              |             |  |   | (158         | )       |   |   |        |        
|                                                                                                  |                                                                                                               |                                         |            |                |              |   |            |                |             |  |   |              |        
|Operating income                                                                                  |                                                                                                               |                                         | 16,618     |                |              |   | 2,378      |                |             |  |   | 20,078       |         |   |   | 17,198  |        
|Bankruptcy reorganization items:                                                                  |                                                                                                               |                                         |            |                |              |   |            |                |             |  |   |              |         |   |   |         |        
|                                                                                                  | Bankruptcy reorganization (expense)                                                                           |                                         |            |               |              |   |            |               |             |  |   |              | (12,710 | ) |   |         |        |  
|                                                                                                  | Gain from debt forgiveness                                                                                    |                                         |            |               |              |   |            |               |             |  |   |              | 259,252 |   |   |         |        |  
|Other income/(expense):                                                                           |                                                                                                               |                                         |            |                |              |   |            |                |             |  |   |              |         |   |   |         |        
|                                                                                                  | Interest expense (excluding interest of $20,959 on liabilities
    subject to compromise at October 19, 2004) |                                         |            | (13,350        | )            |   |            | (2,586         | )           |  |   |              | (14,625 | ) |   |         | (39,722 | )
|                                                                                                  | Amortization of deferred financing costs                                                                      |                                         |            | (646           | )            |   |            | (127           | )           |  |   |              | (6,813  | ) |   |         | (4,873  | )
|                                                                                                  | Other, net                                                                                                    |                                         |            | (137           | )            |   |            | 39             |             |  |   |              | (182    | ) |   |         | (49     | )
|                                                                                                  |                                                                                                               |                                         |            |                |              |   |            |                |             |  |   |              |        
|Income/(loss) before income tax provision                                                         |                                                                                                               |                                         | 2,485      |                |              |   | (296       | )              |             |  |   | 245,000      |         |   |   | (27,446 | )      
|Income tax provision/(benefit)                                                                    |                                                                                                               |                                         | 4,129      |                |              |   | (34        | )              |             |  |   | 666          |         |   |   | 291     |        
|                                                                                                  |                                                                                                               |                                         |            |                |              |   |            |                |             |  |   |              |        
|Income/(loss) from continuing operations                                                          |                                                                                                               |                                         | (1,644     | )              |              |   | (262       | )              |             |  |   | 244,334      |         |   |   | (27,737 | )      
|Loss from discontinued operations, net of income taxes of
    $6,348, $0, $0 and $0, respectively |                                                                                                               |                                         | (9,542     | )              |              |   | (10,500    | )              |             |  |   | (7,026       | )       |   |   | (19,001 | )      
|                                                                                                  |                                                                                                               |                                         |            |                |              |   |            |                |             |  |   |              |        
|Net income/(loss)                                                                                 |                                                                                                               | $                                       | (11,186    | )              |              | $ | (10,762    | )              |             |  | $ | 237,308      |         |   | $ | (46,738 | )      
|                                                                                                  |                                                                                                               |                                         |            |                |              |   |            |                |             |  |   |              |        
|Basic and diluted net income/(loss) per share:                                                    |                                                                                                               |                                         |            |                |              |   |            |                |             |  |   |              |         |   |   |         |        
|                                                                                                  | Income/(loss) from continuing operations                                                                      |                                         | $          | (0.17          | )            |   | $          | (0.03          | )           |  |   | $            | 244,334 |   |   | $       | (27,737 | )
|                                                                                                  | Loss from discontinued operations                                                                             |                                         |            | (0.95          | )            |   |            | (1.05          | )           |  |   |              | (7,026  | ) |   |         | (19,001 | )
|                                                                                                  |                                                                                                               |                                         |            |                |              |   |            |                |             |  |   |              |        
|                                                                                                  | Net income/(loss)                                                                                             |                                         | $          | (1.12          | )            |   | $          | (1.08          | )           |  |   | $            | 237,308 |   |   | $       | (46,738 | )
|                                                                                                  |                                                                                                               |                                         |            |                |              |   |            |                |             |  |   |              |        
|Weighted average basic and diluted shares outstanding                                             |                                                                                                               |                                         | 10,000,002 |                |              |   | 10,000,002 |                |             |  |   | 1,000        |         |   |   | 1,000   |        



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INTERNATIONAL WIRE GROUP, INC.


CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS
EQUITY


(In Thousands)


|                                      |            |                                                              |     |   |             |              |         |             |   |             |             |   |   |               |          |         |       |   |        |   |        |   |         |         |         |  
|------------------------------------- | ---------- | ------------------------------------------------------------ | --- | - | ----------- | ------------ | ------- | ----------- | - | ----------- | ----------- | - | - | ------------- | -------- | ------- | ----- | - | ------ | - | ------ | - | ------- | ------- | ------- | -
|                                      |            |                                                              |     |   |             |              |         |             |   | Accumulated |             |   |  
|                                      |            |                                                              |     |   |             | Carryover of |         |             |   |             | Other       |   |   |              
|                                      |            | Common                                                       |     |   | Contributed |              |         | Predecessor |   |             | Accumulated |   |   | Comprehensive |          |         |      
|                                      |            | Stock                                                        |     |   | Capital     |              |         | Basis       |   |             | Deficit     |   |   | Income/(loss) |          |         | Total |  
|                                      |            |                                                              |     |   |             |              |         |             |   |             |             |   |   |               |          |         |       |  
|Balance Predecessor December 31, 2002 |            | $                                                            |    |   |             | $            | 236,331 |             |   | $           | (67,762     | ) |   | $             | (220,791 | )       |       | $ | (131   | ) |        | $ | (52,353 | )      
|Capital contributed                   |            |                                                              |    |   |             |              | 7,000   |             |   |             |            |   |   |               |         |         |       |   |       |   |        |   | 7,000   |        
|Comprehensive income/(loss)           |            |                                                              |     |   |             |              |         |             |   |             |             |   |   |               |          |         |       |   |        |   |        |   |         |        
|                                      | Net loss   |                                                              |     |  |             |              |         |            |   |             |             |  |   |               |          | (46,738 | )     |   |        |  |        |   |         | (46,738 | )      
|                                      |            | Foreign currency translation adjustments, net of taxes of $0 |     |   |            |              |         |             |  |             |             |   |  |               |          |         |      |   |        |   | 3,463  |   |         |         | 3,463   |  
|                                      |            |                                                              |     |   |             |              |         |             |   |             |             |   |   |               |          |         |       |  
|                                      |            | Total comprehensive (loss)                                   |     |   |             |              |         |             |   |             |             |   |   |               |          |         |       |   |        |   |        |   |         |         | (43,275 | )
|                                      |            |                                                              |     |   |             |              |         |             |   |             |             |   |   |               |          |         |       |  
|Balance Predecessor December 31, 2003 |            |                                                              |    |   |             |              | 243,331 |             |   |             | (67,762     | ) |   |               | (267,529 | )       |       |   | 3,332  |   |        |   | (88,628 | )      
|Comprehensive income                  |            |                                                              |     |   |             |              |         |             |   |             |             |   |   |               |          |         |       |   |        |   |        |   |         |        
|                                      | Net income |                                                              |     |  |             |              |         |             |   |             |             |  |   |               |          | 237,308 |       |   |        |  |        |   |         | 237,308 |        
|                                      |            | Foreign currency translation adjustments, net of taxes of $0 |     |   |            |              |         |             |  |             |             |   |  |               |          |         |      |   |        |   | 283    |   |         |         | 283     |  
|                                      |            |                                                              |     |   |             |              |         |             |   |             |             |   |   |               |          |         |       |  
|                                      |            | Total comprehensive income                                   |     |   |             |              |         |             |   |             |             |   |   |               |          |         |       |   |        |   |        |   |         |         | 237,591 |  
|                                      |            |                                                              |     |   |             |              |         |             |   |             |             |   |   |               |          |         |       |  
|Balance Predecessor October 19, 2004  |            |                                                              |    |   |             |              | 243,331 |             |   |             | (67,762     | ) |   |               | (30,221  | )       |       |   | 3,615  |   |        |   | 148,963 |        
|Fresh-start adjustments (Note 3)      |            |                                                              | 100 |   |             |              | (67,731 | )           |   |             | 67,762      |   |   |               | 30,221   |         |       |   | (3,615 | ) |        |   | 26,737  |        
|                                      |            |                                                              |     |   |             |              |         |             |   |             |             |   |   |               |          |         |       |  
|Balance Successor October 20, 2004    |            |                                                              | 100 |   |             |              | 175,600 |             |   |             |            |   |   |               |         |         |       |   |       |   |        |   | 175,700 |        
|Comprehensive income/(loss)           |            |                                                              |     |   |             |              |         |             |   |             |             |   |   |               |          |         |       |   |        |   |        |   |         |        
|                                      | Net loss   |                                                              |     |  |             |              |         |            |   |             |             |  |   |               |          | (10,762 | )     |   |        |  |        |   |         | (10,762 | )      
|                                      |            | Foreign currency translation adjustments, net of taxes of $0 |     |   |            |              |         |             |  |             |             |   |  |               |          |         |      |   |        |   | 1,443  |   |         |         | 1,443   |  
|                                      |            |                                                              |     |   |             |              |         |             |   |             |             |   |   |               |          |         |       |  
|                                      |            | Total comprehensive (loss)                                   |     |   |             |              |         |             |   |             |             |   |   |               |          |         |       |   |        |   |        |   |         |         | (9,319  | )
|                                      |            |                                                              |     |   |             |              |         |             |   |             |             |   |   |               |          |         |       |  
|Balance Successor December 31, 2004   |            |                                                              | 100 |   |             |              | 175,600 |             |   |             |            |   |   |               | (10,762  | )       |       |   | 1,443  |   |        |   | 166,381 |        
|Comprehensive income/(loss)           |            |                                                              |     |   |             |              |         |             |   |             |             |   |   |               |          |         |       |   |        |   |        |   |         |        
|                                      | Net loss   |                                                              |     |  |             |              |         |            |   |             |             |  |   |               |          | (11,186 | )     |   |        |  |        |   |         | (11,186 | )      
|                                      |            | Foreign currency translation adjustments, net of taxes of $0 |     |   |            |              |         |             |  |             |             |   |  |               |          |         |      |   |        |   | (2,749 | ) |         |         | (2,749  | )
|                                      |            |                                                              |     |   |             |              |         |             |   |             |             |   |   |               |          |         |       |  
|                                      |            | Total comprehensive (loss)                                   |     |   |             |              |         |             |   |             |             |   |   |               |          |         |       |   |        |   |        |   |         |         | (13,935 | )
|                                      |            |                                                              |     |   |             |              |         |             |   |             |             |   |   |               |          |         |       |  
|Balance Successor December 31, 2005   |            | $                                                            | 100 |   |             | $            | 175,600 |             |   | $           |            |   |   | $             | (21,948  | )       |       | $ | (1,306 | ) |        | $ | 152,446 |        
|                                      |            |                                                              |     |   |             |              |         |             |   |             |             |   |   |               |          |         |       |  



47



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INTERNATIONAL WIRE GROUP, INC.


CONSOLIDATED STATEMENTS OF CASH FLOWS


|                                                              |                                                                                                        |                                                 |                                           |                                                                                          |                    |         |         |         |                   |        |        |                   |         |          |         |         |         |        |         |         |  
|------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------ | ----------------------------------------------- | ----------------------------------------- | ---------------------------------------------------------------------------------------- | ------------------ | ------- | ------- | ------- | ----------------- | ------ | ------ | ----------------- | ------- | -------- | ------- | ------- | ------- | ------ | ------- | ------- | -
|                                                              |                                                                                                        | Successor                                       |                                           |                                                                                          | Successor          |         |         |         | Predecessor       |        |        | Predecessor       |        
|                                                              |                                                                                                        |                                                 |                                           |                                                                                          |                    |         |         |         |                   |        |        |                   |        
|                                                              |                                                                                                        | For the Year                                    |                                           |                                                                                          | For the Period     |         |         |         | For the Period    |        |        | For the Year      |        
|                                                              |                                                                                                        | Ended                                           |                                           |                                                                                          | October 20 through |         |         |         | January 1 through |        |        | Ended             |        
|                                                              |                                                                                                        | December 31, 2005                               |                                           |                                                                                          | December 31, 2004  |         |         |         | October 19, 2004  |        |        | December 31, 2003 |        
|                                                              |                                                                                                        |                                                 |                                           |                                                                                          |                    |         |         |         |                   |        |        |                   |        
|                                                              |                                                                                                        |                                                 |                                           | (In thousands)                                                                           |                    |         |        
|Cash flows provided by/(used in) operating activities:        |                                                                                                        |                                                 |                                           |                                                                                          |                    |         |         |         |                   |        |        |                   |         |          |         |         |        
|                                                              | Net income/(loss)                                                                                      |                                                 | $                                         | (11,186                                                                                  | )                  |         | $       | (10,762 | )                 |        |        | $                 | 237,308 |          |         | $       | (46,738 | )     
|                                                              | Adjustments to reconcile net income/(loss) to net cash provided
    by/(used in) operating activities: |                                                 |                                           |                                                                                          |                    |         |         |         |                   |        |        |                   |         |          |         |         |         |       
|                                                              |                                                                                                        | Gain from debt forgiveness                      |                                           |                                                                                          |                   |         |         |         |                  |        |        |                   |         | (259,252 | )       |         |         |       |        
|                                                              |                                                                                                        | Depreciation                                    |                                           |                                                                                          | 10,531             |         |         |         | 2,467             |        |        |                   |         | 16,320   |         |         |         | 21,510 |        
|                                                              |                                                                                                        | Amortization                                    |                                           |                                                                                          | 4,613              |         |         |         | 1,127             |        |        |                   |         | 2,466    |         |         |         | 3,628  |        
|                                                              |                                                                                                        | Amortization of deferred financing costs        |                                           |                                                                                          | 646                |         |         |         | 127               |        |        |                   |         | 6,813    |         |         |         | 4,873  |        
|                                                              |                                                                                                        | Provision for doubtful accounts                 |                                           |                                                                                          | 417                |         |         |         | 83                |        |        |                   |         | 242      |         |         |         | 1,025  |        
|                                                              |                                                                                                        | (Gain) on sale of property, plant and equipment |                                           |                                                                                          | (721               | )       |         |         | (16               | )      |        |                   |         | (192     | )       |         |         | (8     | )      
|                                                              |                                                                                                        | Impairment of long-lived assets                 |                                           |                                                                                          | 11,846             |         |         |         | 4,671             |        |        |                   |         |         |         |         |         | 2,377  |        
|                                                              |                                                                                                        | Goodwill impairment                             |                                           |                                                                                          |                   |         |         |         |                  |        |        |                   |         |         |         |         |         | 2,973  |        
|                                                              |                                                                                                        | Deferred income taxes                           |                                           |                                                                                          | (3,029             | )       |         |         |                  |        |        |                   |         |         |         |         |         |       |        
|                                                              |                                                                                                        | Change in assets and liabilities:               |                                           |                                                                                          |                    |         |         |         |                   |        |        |                   |         |          |         |         |         |        |        
|                                                              |                                                                                                        |                                                 | Accounts receivable                       |                                                                                          |                    | (29,767 | )       |         |                   | 4,541  |        |                   |         |          | (8,483  | )       |         |        | (6,666  | )      
|                                                              |                                                                                                        |                                                 | Inventories                               |                                                                                          |                    | 25,561  |         |         |                   | 4,337  |        |                   |         |          | (20,072 | )       |         |        | 2,492   |        
|                                                              |                                                                                                        |                                                 | Prepaid expenses and other assets         |                                                                                          |                    | 568     |         |         |                   | (978   | )      |                   |         |          | (3,844  | )       |         |        | (1,567  | )      
|                                                              |                                                                                                        |                                                 | Accounts payable                          |                                                                                          |                    | 21,770  |         |         |                   | (4,658 | )      |                   |         |          | 2,976   |         |         |        | (10,356 | )      
|                                                              |                                                                                                        |                                                 | Accrued and other liabilities             |                                                                                          |                    | 688     |         |         |                   | 5,671  |        |                   |         |          | (4,098  | )       |         |        | 7,037   |        
|                                                              |                                                                                                        |                                                 | Accrued payroll and payroll related items |                                                                                          |                    | (1,453  | )       |         |                   | 558    |        |                   |         |          | 2,999   |         |         |        | (587    | )      
|                                                              |                                                                                                        |                                                 | Customers deposits                       |                                                                                          |                    | (948    | )       |         |                   | (1,982 | )      |                   |         |          | 1,915   |         |         |        | (1,973  | )      
|                                                              |                                                                                                        |                                                 | Accrued interest                          |                                                                                          |                    | 135     |         |         |                   | 1,667  |        |                   |         |          | 7,224   |         |         |        | 18,389  |        
|                                                              |                                                                                                        |                                                 | Other long-term liabilities               |                                                                                          |                    | (767    | )       |         |                   | 529    |        |                   |         |          | (139    | )       |         |        | (3,320  | )      
|                                                              |                                                                                                        |                                                 |                                           |                                                                                          |                    |         |         |         |                   |        |        |                   |        
|                                                              |                                                                                                        |                                                 |                                           | Net cash provided by/(used in) operating activities before
    reorganization activities |                    |         | 28,904  |         |                   |        | 7,382  |                   |         |          |         | (17,817 | )       |        |         | (6,911  | )
|Cash flows provided by (used in) reorganization activities    |                                                                                                        |                                                 | (6,439                                    | )                                                                                        |                    |         | (3,489  | )       |                   |        |        | 6,976             |         |          |         |        |        
|                                                              |                                                                                                        |                                                 |                                           |                                                                                          |                    |         |         |         |                   |        |        |                   |        
|                                                              |                                                                                                        |                                                 |                                           | Net cash provided by/(used in) operating activities                                      |                    |         | 22,465  |         |                   |        | 3,893  |                   |         |          |         | (10,841 | )       |        |         | (6,911  | )
|Cash flows used in investing activities:                      |                                                                                                        |                                                 |                                           |                                                                                          |                    |         |         |         |                   |        |        |                   |         |          |         |         |        
|Capital expenditures                                          |                                                                                                        |                                                 | (2,748                                    | )                                                                                        |                    |         | (2,088  | )       |                   |        |        | (7,775            | )       |          |         | (13,970 | )      
|Proceeds from sale of property, plant and equipment           |                                                                                                        |                                                 | 875                                       |                                                                                          |                    |         | 16      |         |                   |        |        | 192               |         |          |         | 8       |        
|Restricted cash                                               |                                                                                                        |                                                 | 1,186                                     |                                                                                          |                    |         |        |         |                   |        |        | (1,492            | )       |          |         | (15,094 | )      
|                                                              |                                                                                                        |                                                 |                                           |                                                                                          |                    |         |         |         |                   |        |        |                   |        
|                                                              |                                                                                                        |                                                 |                                           | Net cash used in investing activities                                                    |                    |         | (687    | )       |                   |        | (2,072 | )                 |         |          |         | (9,075  | )       |        |         | (29,056 | )
|Cash flows provided by/(used in) financing activities:        |                                                                                                        |                                                 |                                           |                                                                                          |                    |         |         |         |                   |        |        |                   |         |          |         |         |        
|                                                              |                                                                                                        |                                                 | Borrowings under long-term obligations    |                                                                                          |                    | 61,091  |         |         |                   | (6,317 | )      |                   |         |          | 91,593  |         |         |        | 79,477  |        
|                                                              |                                                                                                        |                                                 | Repayment under long term obligations     |                                                                                          |                    | (92,324 | )       |         |                   | 6,979  |        |                   |         |          | (82,000 | )       |         |        | (16,888 | )      
|                                                              |                                                                                                        |                                                 | Financing fees and other                  |                                                                                          |                    | (28     | )       |         |                   | (523   | )      |                   |         |          | (2,642  | )       |         |        | (4,008  | )      
|                                                              |                                                                                                        |                                                 |                                           |                                                                                          |                    |         |         |         |                   |        |        |                   |        
|                                                              |                                                                                                        |                                                 |                                           | Net cash provided by (used in) financing activities                                      |                    |         | (31,261 | )       |                   |        | 139    |                   |         |          |         | 6,951   |         |        |         | 58,581  |  
|Effects of exchange rate changes on cash and cash equivalents |                                                                                                        |                                                 | (287                                      | )                                                                                        |                    |         | (99     | )       |                   |        |        | 315               |         |          |         | 821     |        
|                                                              |                                                                                                        |                                                 |                                           |                                                                                          |                    |         |         |         |                   |        |        |                   |        
|                                                              |                                                                                                        |                                                 |                                           | Net change in cash and cash equivalents                                                  |                    |         | (9,770  | )       |                   |        | 1,861  |                   |         |          |         | (12,650 | )       |        |         | 23,435  |  
|Cash and cash equivalents at beginning of the period          |                                                                                                        |                                                 | 15,192                                    |                                                                                          |                    |         | 13,331  |         |                   |        |        | 25,981            |         |          |         | 2,546   |        
|                                                              |                                                                                                        |                                                 |                                           |                                                                                          |                    |         |         |         |                   |        |        |                   |        
|Cash and cash equivalents at end of the period                |                                                                                                        | $                                               | 5,422                                     |                                                                                          |                    | $       | 15,192  |         |                   |        | $      | 13,331            |         |          | $       | 25,981  |        
|                                                              |                                                                                                        |                                                 |                                           |                                                                                          |                    |         |         |         |                   |        |        |                   |        
|Supplemental disclosure of cash flow information:             |                                                                                                        |                                                 |                                           |                                                                                          |                    |         |         |         |                   |        |        |                   |         |          |         |         |        
|Interest paid                                                 |                                                                                                        | $                                               | 13,361                                    |                                                                                          |                    | $       | 915     |         |                   |        | $      | 8,218             |         |          | $       | 23,625  |        
|                                                              |                                                                                                        |                                                 |                                           |                                                                                          |                    |         |         |         |                   |        |        |                   |        
|Net taxes paid                                                |                                                                                                        | $                                               | 810                                       |                                                                                          |                    | $       | 48      |         |                   |        | $      | 761               |         |          | $       | 187     |        
|                                                              |                                                                                                        |                                                 |                                           |                                                                                          |                    |         |         |         |                   |        |        |                   |        



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INTERNATIONAL WIRE GROUP, INC.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


(In thousands, except share data)




|   |                                                
|-- | -----------------------------------------------
|1. | Business Organization and Basis of Presentation











| |                                  
| | ---------------------------------
| | Fresh-Start Basis of Presentation

Financial Reporting by
Entities in Reorganization Under the Bankruptcy Code,


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INTERNATIONAL WIRE GROUP, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |                                                       
|-- | ------------------------------------------------------
|2. | Voluntary Bankruptcy Filing and Plan of Reorganization

lock-up 04-11991 non-U.S. debtor-in debtor-in debtor-in




debtor-in


|                                                         |       |   |         |         | 
|-------------------------------------------------------- | ----- | - | ------- | ------- | 
|Accrued interest                                         |       | $ | 29,252  |        
|Senior Subordinated Notes, excluding unamortized premium |       |   | 305,000 |        
|                                                         |       |   |        
|                                                         | Total |   | $       | 334,252 | 
|                                                         |       |   |        

90-7,


90-7. 90-7.


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INTERNATIONAL WIRE GROUP, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|           |  |             |       |  |              |   |       | 
|---------- |  | ----------- | ----- |  | ------------ | - | ----- | 
|           |  | January 1   |       |  | Year         |  
|           |  | through     |       |  | Ended        |  
|           |  | October 19, |       |  | December 31, |  
|           |  | 2004        |       |  | 2003         |  
|           |  |             |       |  |              |  
|Consulting |  | $           | 1,439 |  |              | $ | 1,440 | 
|Legal      |  |             | 1,410 |  |              |   | 692   | 
|Other      |  |             | 213   |  |              |   | 40    | 
|           |  |             |       |  |              |  
|           |  | $           | 3,062 |  |              | $ | 2,172 | 
|           |  |             |       |  |              |  



|                                                                |  |   |        |  
|--------------------------------------------------------------- |  | - | ------ | -
|Consulting                                                      |  | $ | 4,067  |  
|Legal                                                           |  |   | 4,050  |  
|Key Employee Retention Plan                                     |  |   | 2,295  |  
|Management company severance                                    |  |   | 1,920  |  
|Deferred financing fees                                         |  |   | 1,548  |  
|Premium on 11.75 Percent Series B Senior Subordinated
    Notes |  |   | (2,673 | )
|Other                                                           |  |   | 1,503  |  
|                                                                |  |   |       
|                                                                |  | $ | 12,710 |  
|                                                                |  |   |       



|   |                      
|-- | ---------------------
|3. | Fresh-Start Reporting

90-7,


5-year


90-7


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INTERNATIONAL WIRE GROUP, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






90-7,




|                                     |                           |             |         |         |               |   |         |             |           |   |             |        |   |   |         |         | 
|------------------------------------ | ------------------------- | ----------- | ------- | ------- | ------------- | - | ------- | ----------- | --------- | - | ----------- | ------ | - | - | ------- | ------- | 
|                                     |                           | Predecessor |         |         |               |   |         |             | Successor |  
|                                     |                           |             |         |         |               |   |         |             |           |  
|                                     |                           | October 19, |         |         | Debt          |   |         | Fresh-Start |           |   | October 20, |       
|                                     |                           | 2004        |         |         | Restructuring |   |         | Adjustments |           |   | 2004        |       
|                                     |                           |             |         |         |               |   |         |             |           |   |             |       
|ASSETS                              
|Cash and cash equivalents            |                           | $           | 13,331  |         |               | $ |        |             |           | $ |            |        |   | $ | 13,331  |        
|Accounts receivable trade, net       |                           |             | 74,305  |         |               |   |        |             |           |   |            |        |   |   | 74,305  |        
|Inventories                          |                           |             | 79,626  |         |               |   |        |             |           |   | 7,415       | (a)    |   |   | 87,041  |        
|Prepaid expenses and other           |                           |             | 12,537  |         |               |   |        |             |           |   | (1,116      | )(e)   |   |   | 11,421  |        
|                                     |                           |             |         |         |               |   |         |             |           |   |             |       
|                                     | Total current assets      |             |         | 179,799 |               |   |         |            |           |   |             | 6,299  |   |   |         | 186,098 | 
|Property, plant and equipment        |                           |             | 109,107 |         |               |   |        |             |           |   | (5,315      | )(b)   |   |   | 103,792 |        
|Goodwill                             |                           |             | 86,417  |         |               |   |        |             |           |   | (15,058     | )(c)   |   |   | 71,359  |        
|Identifiable intangibles, net        |                           |             | 2,981   |         |               |   |        |             |           |   | 30,124      | (d)    |   |   | 33,105  |        
|Deferred financing fees, net         |                           |             |        |         |               |   |        |             |           |   | 2,678       | (e)    |   |   | 2,678   |        
|Other assets                         |                           |             | 13,685  |         |               |   |        |             |           |   |            |        |   |   | 13,685  |        
|                                     |                           |             |         |         |               |   |         |             |           |   |             |       
|                                     | Total assets              |             | $       | 391,989 |               |   | $       |            |           |   | $           | 18,728 |   |   | $       | 410,717 | 
|                                     |                           |             |         |         |               |   |         |             |           |   |             |       
|                                    
|LIABILITIES AND STOCKHOLDERS EQUITY
|Current maturities of long-term debt |                           | $           | 1,519   |         |               | $ |        |             |           | $ | (134        | )(h)   |   | $ | 1,385   |        
|Accounts payable                     |                           |             | 17,081  |         |               |   |        |             |           |   |            |        |   |   | 17,081  |        
|Accrued and other liabilities        |                           |             | 44,031  |         |               |   |        |             |           |   | (3,168      | )(j)   |   |   | 40,863  |        
|Accrued interest                     |                           |             | 29,626  |         |               |   | (29,252 | )(i)        |           |   | (338        | )(h)   |   |   | 36      |        
|                                     |                           |             |         |         |               |   |         |             |           |   |             |       
|                                     | Total current liabilities |             |         | 92,257  |               |   |         | (29,252     | )         |   |             | (3,640 | ) |   |         | 59,365  | 

52



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INTERNATIONAL WIRE GROUP, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


|                                        |                                            |             |         |          |               |  |          |             |           |  |             |        |     |  |         |         | 
|--------------------------------------- | ------------------------------------------ | ----------- | ------- | -------- | ------------- |  | -------- | ----------- | --------- |  | ----------- | ------ | --- |  | ------- | ------- | 
|                                        |                                            | Predecessor |         |          |               |  |          |             | Successor | 
|                                        |                                            |             |         |          |               |  |          |             |           | 
|                                        |                                            | October 19, |         |          | Debt          |  |          | Fresh-Start |           |  | October 20, |       
|                                        |                                            | 2004        |         |          | Restructuring |  |          | Adjustments |           |  | 2004        |       
|                                        |                                            |             |         |          |               |  |          |             |           |  |             |       
|Long-term debt, less current maturities |                                            |             | 397,785 |          |               |  | (230,000 | )(i)        |           |  | 3,796       | (h)    |     |  | 171,581 |        
|Other long-term liabilities             |                                            |             | 12,236  |          |               |  |         |             |           |  | (8,165      | )(f)   |     |  | 4,071   |        
|                                        |                                            |             |         |          |               |  |          |             |           |  |             |       
|                                        | Total liabilities                          |             |         | 502,278  |               |  |          | (259,252    | )         |  |             | (8,009 | )   |  |         | 235,017 | 
|                                        | Total stockholders equity                 |             |         | (110,289 | )             |  |          | 259,252     |           |  |             | 26,737 | (g) |  |         | 175,700 | 
|                                        |                                            |             |         |          |               |  |          |             |           |  |             |       
|                                        | Total liabilities and stockholders equity |             | $       | 391,989  |               |  | $        |            |           |  | $           | 18,728 |     |  | $       | 410,717 | 
|                                        |                                            |             |         |          |               |  |          |             |           |  |             |       






|    |                                                    
|--- | ---------------------------------------------------
|(a) | To adjust inventory to estimated fair market value.



|    |  |                                                                                                                                                                                                                                                                                                                                           
|--- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(b) |  | To adjust property and equipment to estimated fair market value.                                                                                                                                                                                                                                                                          
|   
|(c) |  | To write off Predecessor goodwill and record Successor
    reorganization value in excess of identifiable assets (Goodwill).                                                                                                                                                                                                              
|   
|(d) |  | To recognize identifiable intangible assets at estimated fair
    market value.                                                                                                                                                                                                                                                           
|   
|(e) |  | To recognize deferred financing fees incurred in connection with
    Successor debt. On October 19, 2004, the Company prepaid
    $1,116 of financing fees. On October 20, 2004 the Company
    reclassified those fees upon receipt of the proceeds. The
    Company paid an additional $1,563 in financing fees on
    October 20, 2004.
|   
|(f) |  | To adjust capital leases by $537 and post-retirement benefits by
    $7,628 to estimated fair market value.                                                                                                                                                                                                                               
|   
|(g) |  | To write off common stock and retained earnings of the
    Predecessor, and to record the issuance of 10 million
    shares of Successor common stock.                                                                                                                                                                                    
|   
|(h) |  | To write off
    debtor-in-possession
    financing and accrued interest and the addition of the new
    senior revolving credit facility and term loan and secured
    senior subordinated notes.                                                                                                                                        
|   
|(i) |  | To reflect the settlement of liabilities subject to compromise
    of $334,252, exchanged for $75,000 of Indentures.                                                                                                                                                                                                                      
|   
|(j) |  | To reflect reorganization-related payments made with loan
    proceeds.                                                                                                                                                                                                                                                                   



|   |                                
|-- | -------------------------------
|4. | Significant Accounting Policies



| |                            
| | ---------------------------
| | Principles of Consolidation





| |                    
| | -------------------
| | Revenue Recognition





53



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INTERNATIONAL WIRE GROUP, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






| |                                     
| | ------------------------------------
| | Shipping and Handling Fees and Costs





| |                          
| | -------------------------
| | Cash and Cash Equivalents





| |                
| | ---------------
| | Restricted Cash





| |                             
| | ----------------------------
| | Concentration of Credit Risk





| |            
| | -----------
| | Inventories

last-in,




| |                              
| | -----------------------------
| | Property, Plant and Equipment

90-7.


54



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INTERNATIONAL WIRE GROUP, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




| |         
| | --------
| | Goodwill





| |                              
| | -----------------------------
| | Identifiable Intangibles, Net





| |                                
| | -------------------------------
| | Impairment of Long-lived Assets

Accounting for the
Impairment or Disposal of Long-Lived Assets




| |                         
| | ------------------------
| | Deferred Financing Costs





| |                      
| | ---------------------
| | Deferred Income Taxes



55



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##### Table of Contents



INTERNATIONAL WIRE GROUP, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




| |                             
| | ----------------------------
| | Foreign Currency Translation









| |                        
| | -----------------------
| | Statement of Cash Flows





| |                                    
| | -----------------------------------
| | Fair Value of Financial Instruments





| |                          
| | -------------------------
| | Estimates and Assumptions





| |                   
| | ------------------
| | Stock Option Plans

Accounting for
Stock-Based Compensation, Accounting for Stock Issued to Employees,


56



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INTERNATIONAL WIRE GROUP, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                                                                                                                                   |  |              |         |   |               |   |         |              |              |   |              |   |  |   |         |  
|-------------------------------------------------------------------------------------------------------------------------------------------------- |  | ------------ | ------- | - | ------------- | - | ------- | ------------ | ------------ | - | ------------ | - |  | - | ------- | -
|                                                                                                                                                   |  | Successor    |         |   | Predecessor   |  
|                                                                                                                                                   |  |              |         |   |               |  
|                                                                                                                                                   |  | For the Year |         |   |               |   |         |              | For the Year |  
|                                                                                                                                                   |  | Ended        |         |   | October 20 to |   |         | January 1 to |              |   | Ended        |  
|                                                                                                                                                   |  | December 31, |         |   | December 31,  |   |         | October 19,  |              |   | December 31, |  
|                                                                                                                                                   |  | 2005         |         |   | 2004          |   |         | 2004         |              |   | 2003         |  
|                                                                                                                                                   |  |              |         |   |               |   |         |              |              |   |              |  
|Pro forma net income/(loss)                                                                                                                        |  |              |         |   |               |   |         |              |              |   |              |   |  |   |         |  
|Reported net income/(loss)                                                                                                                         |  | $            | (11,186 | ) |               | $ | (10,762 | )            |              | $ | 237,308      |   |  | $ | (46,738 | )
|Add: Stock-based employee compensation expense included in
    reported income, net of related tax effects                                         |  |              |        |   |               |   |        |              |              |   |             |   |  |   |        |  
|Less: Total stock-based employee compensation expense determined
    under fair value based methods for all awards, net of related
    tax effects |  |              |        |   |               |   |        |              |              |   | (179         | ) |  |   | (207    | )
|                                                                                                                                                   |  |              |         |   |               |   |         |              |              |   |              |  
|Pro forma net income/(loss)                                                                                                                        |  | $            | (11,186 | ) |               | $ | (10,762 | )            |              | $ | 237,129      |   |  | $ | (46,945 | )
|                                                                                                                                                   |  |              |         |   |               |   |         |              |              |   |              |  
|Basic and diluted net income/(loss) per share                                                                                                      |  | $            | (1.12   | ) |               | $ | (1.08   | )            |              | $ | 237,129      |   |  | $ | (46,945 | )
|                                                                                                                                                   |  |              |         |   |               |   |         |              |              |   |              |  



|                        |  |                    |          |                   |  |                  |   |                    |  |  |         |   |  |  |         |  
|----------------------- |  | ------------------ | -------- | ----------------- |  | ---------------- | - | ------------------ |  |  | ------- | - |  |  | ------- | -
|                        |  | Successor          |          | Predecessor      
|                        |  |                    |          |                  
|                        |  | For the Year Ended |          | October 20 to     |  | January 1 to     |   | For the Year Ended
|                        |  | December 31, 2005  |          | December 31, 2004 |  | October 19, 2004 |   | December 31, 2003 
|                        |  |                    |          |                   |  |                  |   |                   
|Risk-free interest rate |  |                    | 3.5%-4.6 | %                 |  |                  |  |                    |  |  | 3.5     | % |  |  | 3.0     | %
|Expected dividend yield |  |                    | 0        |                   |  |                  |  |                    |  |  | 0       |   |  |  | 0       |  
|Expected option term    |  |                    | 5 years  |                   |  |                  |  |                    |  |  | 5 years |   |  |  | 5 years |  
|Volatility              |  |                    | 52.6     | %                 |  |                  |  |                    |  |  | 65.0    | % |  |  | 0.0     | %







| |                                                                 
| | ----------------------------------------------------------------
| | Allocation of Interest to Expense to Discontinued
    Operations



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INTERNATIONAL WIRE GROUP, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




| |                                   
| | ----------------------------------
| | Net Income/(Loss) Per Common Share





| |                      
| | ---------------------
| | Significant Customers





| |         
| | --------
| | Segments





| |                                  
| | ---------------------------------
| | Other Comprehensive Income/(Loss)





| |                                     
| | ------------------------------------
| | Recently Issued Accounting Standards

Inventory Costs  an
amendment of ARB No. 43, Chapter 4 Inventory Pricing,


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INTERNATIONAL WIRE GROUP, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


Share-Based Payment.


Share-Based Payment.


Accounting for Conditional
Asset Retirement Obligations, Accounting for Asset Retirement
Obligations.


Exchanges of Nonmonetary Assets, an amendment to APB Opinion
No. 29 Accounting for
Nonmonetary Transactions,




|   |            
|-- | -----------
|5. | Inventories



|                |                   |              |        |        |              |   |        |        | 
|--------------- | ----------------- | ------------ | ------ | ------ | ------------ | - | ------ | ------ | 
|                |                   | December 31, |        |        | December 31, |  
|                |                   | 2005         |        |        | 2004         |  
|                |                   |              |        |        |              |  
|Raw materials   |                   | $            | 18,274 |        |              | $ | 21,922 |       
|Work-in process |                   |              | 14,400 |        |              |   | 22,234 |       
|Finished goods  |                   |              | 24,200 |        |              |   | 39,163 |       
|                |                   |              |        |        |              |  
|                | Total inventories |              | $      | 56,874 |              |   | $      | 83,319 | 
|                |                   |              |        |        |              |  

last-in, first-in,


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INTERNATIONAL WIRE GROUP, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






|   |                              
|-- | -----------------------------
|6. | Property, Plant and Equipment



|                               |  |              |         |   |              |   |         |  
|------------------------------ |  | ------------ | ------- | - | ------------ | - | ------- | -
|                               |  | December 31, |         |   | December 31, |  
|                               |  | 2005         |         |   | 2004         |  
|                               |  |              |         |   |              |  
|Land                           |  | $            | 5,954   |   |              | $ | 6,385   |  
|Building and improvements      |  |              | 25,609  |   |              |   | 29,526  |  
|Machinery and equipment        |  |              | 69,131  |   |              |   | 67,993  |  
|Construction in progress       |  |              | 1,217   |   |              |   | 2,695   |  
|                               |  |              |         |   |              |  
|                               |  |              | 101,911 |   |              |   | 106,599 |  
|Less: accumulated depreciation |  |              | (16,471 | ) |              |   | (2,467  | )
|                               |  |              |         |   |              |  
|                               |  | $            | 85,440  |   |              | $ | 104,132 |  
|                               |  |              |         |   |              |  





|   |                                    
|-- | -----------------------------------
|7. | Goodwill and Intangible Assets, Net



|                                                    |  |              |        |   |              |   |        | 
|--------------------------------------------------- |  | ------------ | ------ | - | ------------ | - | ------ | 
|                                                    |  | December 31, |        |   | December 31, |  
|                                                    |  | 2005         |        |   | 2004         |  
|                                                    |  |              |        |   |              |  
|Balance, beginning of period                        |  | $            | 71,359 |   |              | $ | 71,359 | 
|Reversal of deferred income tax valuation allowance |  |              | (166   | ) |              |   |       | 
|                                                    |  |              |        |   |              |  
|Balance, end of period                              |  | $            | 71,193 |   |              | $ | 71,359 | 
|                                                    |  |              |        |   |              |  





|                                     |                         |                   |        |             |                   |   |       |       |             |   |              |        |  |   |       |       | 
|------------------------------------ | ----------------------- | ----------------- | ------ | ----------- | ----------------- | - | ----- | ----- | ----------- | - | ------------ | ------ |  | - | ----- | ----- | 
|                                     |                         | December 31, 2005 |        |             | December 31, 2004 |  
|                                     |                         |                   |        |             |                   |  
|                                     |                         |                   |        | Accumulated |                   |   |       |       | Accumulated |  
|                                     |                         | Cost              |        |             | Amortization      |   |       | Cost  |             |   | Amortization |       
|                                     |                         |                   |        |             |                   |   |       |       |             |   |              |       
|Customer contracts and relationships |                         | $                 | 11,292 |             |                   | $ | 1,125 |       |             | $ | 16,234       |        |  | $ | 927   |      
|Trade names and trademarks           |                         |                   | 10,248 |             |                   |   | 660   |       |             |   | 14,200       |        |  |   | 4,102 |      
|Leases                               |                         |                   | 2,671  |             |                   |   | 1,068 |       |             |   | 2,671        |        |  |   | 178   |      
|                                     |                         |                   |        |             |                   |   |       |       |             |   |              |       
|                                     | Total intangible assets |                   | $      | 24,211      |                   |   | $     | 2,853 |             |   | $            | 33,105 |  |   | $     | 5,207 | 
|                                     |                         |                   |        |             |                   |   |       |       |             |   |              |       



60



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##### Table of Contents



INTERNATIONAL WIRE GROUP, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|           |  |        |        | 
|---------- |  | ------ | ------ | 
|           |  | Amount |       
|           |  |        |       
|2006       |  | $      | 2,137  | 
|2007       |  |        | 1,959  | 
|2008       |  |        | 1,247  | 
|2009       |  |        | 1,247  | 
|2010       |  |        | 1,247  | 
|Thereafter |  | $      | 13,521 | 



|   |                
|-- | ---------------
|8. | Financing Costs







|   |                        
|-- | -----------------------
|9. | Discontinued Operations



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INTERNATIONAL WIRE GROUP, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                      |  |              |        |                |              |             |         |                |             |  |   |              |   |  |   |         |  
|------------------------------------- |  | ------------ | ------ | -------------- | ------------ | ----------- | ------- | -------------- | ----------- |  | - | ------------ | - |  | - | ------- | -
|                                      |  | Successor    |        |                |              | Predecessor |        
|                                      |  |              |        |                |              |             |        
|                                      |  |              |        | For the Period |              |             |         | For the Period |             |  |  
|                                      |  | For the Year |        |                | October 20   |             |         |                | January 1   |  |   | For the Year |  
|                                      |  | Ended        |        |                | through      |             |         |                | through     |  |   | Ended        |  
|                                      |  | December 31, |        |                | December 31, |             |         |                | October 19, |  |   | December 31, |  
|                                      |  | 2005         |        |                | 2004         |             |         |                | 2004        |  |   | 2003         |  
|                                      |  |              |        |                |              |             |         |                |             |  |   |              |  
|U.S. Insulated Wire Business          |  | $            | (9,542 | )              |              | $           | (10,500 | )              |             |  | $ | (7,026       | ) |  | $ | (12,072 | )
|Wire Harness product liability claims |  |              |       |                |              |             |        |                |             |  |   |             |   |  |   | (6,929  | )
|                                      |  |              |        |                |              |             |         |                |             |  |   |              |  
|                                      |  | $            | (9,542 | )              |              | $           | (10,500 | )              |             |  | $ | (7,026       | ) |  | $ | (19,001 | )
|                                      |  |              |        |                |              |             |         |                |             |  |   |              |  











62



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##### Table of Contents



INTERNATIONAL WIRE GROUP, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                 |  |              |         |         |              |   |         |             |  |   |                   |   |  |   |         |  
|-------------------------------- |  | ------------ | ------- | ------- | ------------ | - | ------- | ----------- |  | - | ----------------- | - |  | - | ------- | -
|                                 |  | Successor    |         |         | Predecessor  |  
|                                 |  |              |         |         |              |  
|                                 |  |              |         | For the |              |   | For the |             |  |  
|                                 |  |              |         | Period  |              |   | Period  |             |  |  
|                                 |  | For the Year |         |         | October 20   |   |         | January 1   |  |   |                  
|                                 |  | Ended        |         |         | through      |   |         | through     |  |   | For the Year      |  
|                                 |  | December 31, |         |         | December 31, |   |         | October 19, |  |   | Ended             |  
|                                 |  | 2005         |         |         | 2004         |   |         | 2004        |  |   | December 31, 2003 |  
|                                 |  |              |         |         |              |   |         |             |  |   |                   |  
|Net sales                        |  | $            | 124,263 |         |              | $ | 21,041  |             |  | $ | 106,686           |   |  | $ | 120,021 |  
|Loss before income tax provision |  |              | (9,542  | )       |              |   | (10,500 | )           |  |   | (7,026            | ) |  |   | (12,072 | )



|                     |                                    |                           |   |        |              |  |   |        |        | 
|-------------------- | ---------------------------------- | ------------------------- | - | ------ | ------------ |  | - | ------ | ------ | 
|                     |                                    | December 31,              |   |        | December 31, | 
|                     |                                    | 2005                      |   |        | 2004         | 
|                     |                                    |                           |   |        |              | 
|Current assets:      |                                    |                           |   |        |              |  |   |       
|                     | Cash                               |                           | $ |       |              |  | $ | 118    |       
|                     | Accounts receivable                |                           |   | 17,486 |              |  |   | 24,294 |       
|                     | Inventory                          |                           |   |       |              |  |   | 36,181 |       
|                     | Assets held for sale               |                           |   | 1,975  |              |  |   |       |       
|                     | Other current assets               |                           |   | 460    |              |  |   | 4,331  |       
|                     |                                    |                           |   |        |              | 
|                     |                                    | Total current assets      |   | $      | 19,921       |  |   | $      | 64,924 | 
|                     |                                    |                           |   |        |              | 
|Non-current assets:  |                                    |                           |   |        |              |  |   |       
|                     | Property, plant and equipment, net |                           | $ |       |              |  | $ | 32,885 |       
|                     | Identifiable intangibles           |                           |   |       |              |  |   | 5,900  |       
|                     | Other non-current assets           |                           |   |       |              |  |   | 890    |       
|                     |                                    |                           |   |        |              | 
|                     |                                    | Total non-current assets  |   | $      |             |  |   | $      | 39,675 | 
|                     |                                    |                           |   |        |              | 
|Current liabilities: |                                    |                           |   |        |              |  |   |       
|                     | Accounts payable                   |                           | $ | 3,370  |              |  | $ | 2,933  |       
|                     | Accrual expenses                   |                           |   | 2,248  |              |  |   | 5,105  |       
|                     |                                    |                           |   |        |              | 
|                     |                                    | Total current liabilities |   | $      | 5,618        |  |   | $      | 8,038  | 
|                     |                                    |                           |   |        |              | 



|    |                           
|--- | --------------------------
|10. | Related Party Transactions





63



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INTERNATIONAL WIRE GROUP, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






|    |               
|--- | --------------
|11. | Long-Term Debt



|                                      |  |              |         |  |              |   |         | 
|------------------------------------- |  | ------------ | ------- |  | ------------ | - | ------- | 
|                                      |  | December 31, |         |  | December 31, |  
|                                      |  | 2005         |         |  | 2004         |  
|                                      |  |              |         |  |              |  
|Senior Revolving Credit Facility      |  | $            | 30,188  |  |              | $ | 60,308  | 
|Senior Term Loan                      |  |              | 30,000  |  |              |   | 30,000  | 
|10% Secured Senior Subordinated Notes |  |              | 75,000  |  |              |   | 75,000  | 
|Other                                 |  |              | 228     |  |              |   | 1,341   | 
|                                      |  |              |         |  |              |  
|Total long-term debt                  |  |              | 135,416 |  |              |   | 166,649 | 
|Less current maturities               |  |              | 228     |  |              |   | 1,341   | 
|                                      |  |              |         |  |              |  
|Long-term portion of long-term debt   |  | $            | 135,188 |  |              | $ | 165,308 | 
|                                      |  |              |         |  |              |  



| |                                               
| | ----------------------------------------------
| | Senior Revolving Credit Facility and Term Loan

debtor-in






64



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##### Table of Contents



INTERNATIONAL WIRE GROUP, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)
















| |   |                                                                                                                                                                                               
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | An amount equal to 100 percent of the net proceeds of any
    incurrence of indebtedness by the Company or any of its
    subsidiaries;                                                       
|
| |  | An amount equal to 100 percent of the net proceeds of any
    non-ordinary course sale or other disposition by us or any of
    its subsidiaries of any assets, except for certain exceptions.





| |                                  
| | ---------------------------------
| | Secured Senior Subordinated Notes







65



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INTERNATIONAL WIRE GROUP, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                    |  |            |        |  
|------------------- |  | ---------- | ------ | -
|                    |  | Redemption |       
|Period              |  | Price      |       
|                    |  |            |       
|2007                |  |            | 105.00 | %
|2008                |  |            | 102.50 | %
|2009                |  |            | 101.25 | %
|2010 and thereafter |  |            | 100.00 | %





| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | The Company may on any one or more occasions redeem up to
    35 percent of the aggregate principal amount of the Notes
    at a redemption price equal to 110 percent of the principal
    amount thereof, plus accrued and unpaid interest thereon, if
    any, to the redemption date with net cash proceeds at one or
    more underwritten public offerings of the Companys common
    stock; provided that at least 50% of the Notes remain
    outstanding and that the redemption occurs within 90 days
    of the closing of the public offering.                                                                   
|
| |  | If the Company or any of its restricted subsidiaries consummate
    an asset disposition pursuant to which the net available cash
    exceeds $25,000, the Company will have the option to redeem up
    to the maximum principal amount of the Notes that may be
    purchased out of such net available cash at any offer price in
    cash in an amount equal to 110 percent of the principal
    amount thereof plus accrued and unpaid interest thereon, if any,
    to the date fixed for redemption; provided that the redemption
    occurs within 90 days after the date of the closing of the
    asset disposition.











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INTERNATIONAL WIRE GROUP, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






|           |       |      |        |         | 
|---------- | ----- | ---- | ------ | ------- | 
|           |       | 2004 |       
|           |       |      |       
|2006       |       | $    | 228    |        
|2007       |       |      |       |        
|2008       |       |      |       |        
|2009       |       |      | 60,188 |        
|2010       |       |      |       |        
|Thereafter |       |      | 75,000 |        
|           |       |      |       
|           | Total |      | $      | 135,416 | 
|           |       |      |       



|    |             
|--- | ------------
|12. | Income Taxes



|                                                 |          |                                                          |        |   |              |   |     |             |     |   |              |   |     |   |     |   |     | 
|------------------------------------------------ | -------- | -------------------------------------------------------- | ------ | - | ------------ | - | --- | ----------- | --- | - | ------------ | - | --- | - | --- | - | --- | 
|                                                 |          | Successor                                                |        |   | Predecessor  |  
|                                                 |          |                                                          |        |   |              |  
|                                                 |          | For the Year                                             |        |   | October 20   |   |     | January 1   |     |   | For the Year |  
|                                                 |          | Ended                                                    |        |   | through      |   |     | through     |     |   | Ended        |  
|                                                 |          | December 31,                                             |        |   | December 31, |   |     | October 19, |     |   | December 31, |  
|                                                 |          | 2005                                                     |        |   | 2004         |   |     | 2004        |     |   | 2003         |  
|                                                 |          |                                                          |        |   |              |   |     |             |     |   |              |  
|                                                 | Current  |                                                          |        |   |              |   |     |             |     |   |              |   |     |   |     |   |    
|Federal                                          |          | $                                                        | 11,188 |   |              | $ |    |             |     | $ |             |   |     | $ |    |  
|State                                            |          |                                                          | 1,601  |   |              |   |    |             |     |   |             |   |     |   | 291 |  
|Foreign                                          |          |                                                          | 807    |   |              |   | (34 | )           |     |   | 666          |   |     |   |    |  
|                                                 |          |                                                          |        |   |              |   |     |             |     |   |              |  
|                                                 |          |                                                          | 13,596 |   |              |   | (34 | )           |     |   | 666          |   |     |   | 291 |  
|                                                 |          |                                                          |        |   |              |   |     |             |     |   |              |  
|                                                 | Deferred |                                                          |        |   |              |   |     |             |     |   |              |   |     |   |     |   |    
|Federal                                          |          |                                                          | (8,284 | ) |              |   |     |             |     |   |             |   |     |   |    |  
|State                                            |          |                                                          | (1,183 | ) |              |   |    |             |     |   |             |   |     |   |    |  
|Foreign                                          |          |                                                          |       |   |              |   |    |             |     |   |             |   |     |   |    |  
|                                                 |          |                                                          |        |   |              |   |     |             |     |   |              |  
|                                                 |          |                                                          | (9,467 | ) |              |   |    |             |     |   |             |   |     |   |    |  
|                                                 |          |                                                          |        |   |              |   |     |             |     |   |              |  
|                                                 |          | Income tax provision (benefit) for continuing operations |        |   | 4,129        |   |     |             | (34 | ) |              |   | 666 |   |     |   | 291 | 
|Tax expense (benefit) on discontinued operations |          |                                                          | (6,348 | ) |              |   |    |             |     |   |             |   |     |   |    |  
|                                                 |          |                                                          |        |   |              |   |     |             |     |   |              |  
|                                                 |          | Total provision (benefit)                                |        | $ | (2,219       | ) |     | $           | (34 | ) |              | $ | 666 |   |     | $ | 291 | 
|                                                 |          |                                                          |        |   |              |   |     |             |     |   |              |  

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INTERNATIONAL WIRE GROUP, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|         |                                                       |              |         |         |              |   |        |             |   |   |              |         |  |   |         |         |  
|-------- | ----------------------------------------------------- | ------------ | ------- | ------- | ------------ | - | ------ | ----------- | - | - | ------------ | ------- |  | - | ------- | ------- | -
|         |                                                       | Successor    |         |         | Predecessor  |  
|         |                                                       |              |         |         |              |  
|         |                                                       | For the Year |         |         | October 20   |   |        | January 1,  |   |   | For the Year |        
|         |                                                       | Ended        |         |         | through      |   |        | through     |   |   | Ended        |        
|         |                                                       | December 31, |         |         | December 31, |   |        | October 19, |   |   | December 31, |        
|         |                                                       | 2005         |         |         | 2004         |   |        | 2004        |   |   | 2003         |        
|         |                                                       |              |         |         |              |   |        |             |   |   |              |        
|Domestic |                                                       | $            | (18,674 | )       |              | $ | (9,697 | )           |   | $ | 232,471      |         |  | $ | (42,749 | )      
|Foreign  |                                                       |              | 5,269   |         |              |   | (1,099 | )           |   |   | 5,503        |         |  |   | 3,231   |        
|         |                                                       |              |         |         |              |   |        |             |   |   |              |        
|         | Income/(loss) before income taxes provision (benefit) |              | $       | (13,405 | )            |   | $      | (10,796     | ) |   | $            | 237,974 |  |   | $       | (39,518 | )
|         |                                                       |              |         |         |              |   |        |             |   |   |              |        



|                                                       |  |              |        |   |              |   |        |             |  |   |              |   |  |   |         |  
|------------------------------------------------------ |  | ------------ | ------ | - | ------------ | - | ------ | ----------- |  | - | ------------ | - |  | - | ------- | -
|                                                       |  | Successor    |        |   | Predecessor  |  
|                                                       |  |              |        |   |              |  
|                                                       |  | For the Year |        |   | October 20   |   |        | January 1,  |  |   | For the Year |  
|                                                       |  | Ended        |        |   | through      |   |        | through     |  |   | Ended        |  
|                                                       |  | December 31, |        |   | December 31, |   |        | October 19, |  |   | December 31, |  
|                                                       |  | 2005         |        |   | 2004         |   |        | 2004        |  |   | 2003         |  
|                                                       |  |              |        |   |              |   |        |             |  |   |              |  
|U.S. Federal statutory rate at 35%                     |  | $            | (4,692 | ) |              | $ | (3,779 | )           |  | $ | 83,291       |   |  | $ | (13,831 | )
|State taxes, net of federal effect                     |  |              | (244   | ) |              |   | (461   | )           |  |   | (415         | ) |  |   | (2,119  | )
|Foreign rate differential                              |  |              | 5,821  |   |              |   | (539   | )           |  |   | (1,378       | ) |  |   | (1,764  | )
|Nondeductible expenses                                 |  |              | 394    |   |              |   | 147    |             |  |   | 4,265        |   |  |   | 37      |  
|Nondeductible amortization of intangibles              |  |              |       |   |              |   |       |             |  |   | 286          |   |  |   |        |  
|Non-includable reorganization income                   |  |              |       |   |              |   |       |             |  |   | (88,813      | ) |  |   |        |  
|Change in federal valuation allowance                  |  |              | (3,498 | ) |              |   | 4,724  |             |  |   | (27,799      | ) |  |   | 18,504  |  
|Reduction in available net operation loss carryforward |  |              |       |   |              |   |       |             |  |   | 31,011       |   |  |   |        |  
|Other                                                  |  |              |       |   |              |   | (126   | )           |  |   | 218          |   |  |   | (536    | )
|                                                       |  |              |        |   |              |   |        |             |  |   |              |  
|                                                       |  | $            | (2,219 | ) |              | $ | (34    | )           |  | $ | 666          |   |  | $ | 291     |  
|                                                       |  |              |        |   |              |   |        |             |  |   |              |  



|                                       |                                        |              |        |        |              |   |        |        | 
|-------------------------------------- | -------------------------------------- | ------------ | ------ | ------ | ------------ | - | ------ | ------ | 
|                                       |                                        | Successor    |       
|                                       |                                        |              |       
|                                       |                                        | December 31, |        |        | December 31, |  
|                                       |                                        | 2005         |        |        | 2004         |  
|                                       |                                        |              |        |        |              |  
|Deferred tax assets:                   |                                        |              |        |        |              |   |        |       
|Accounts receivable reserves           |                                        | $            | 1,136  |        |              | $ | 1,522  |       
|Inventories                            |                                        |              | 5,556  |        |              |   | (1,170 | )     
|Accrued liabilities not yet deductible |                                        |              | 6,872  |        |              |   | 7,340  |       
|Net operating loss carryforward        |                                        |              | 15,770 |        |              |   | 13,146 |       
|Postretirement benefits                |                                        |              | 94     |        |              |   | 98     |       
|Other                                  |                                        |              | 125    |        |              |   | 181    |       
|                                       |                                        |              |        |        |              |  
|                                       |                                        |              | 29,553 |        |              |   | 21,117 |       
|Valuation allowance                    |                                        |              | (3,466 | )      |              |   | (6,773 | )     
|                                       |                                        |              |        |        |              |  
|                                       |                                        |              | 26,087 |        |              |   | 14,344 |       
|                                       |                                        |              |        |        |              |  
|Deferred tax liabilities               |                                        |              |        |        |              |   |        |       
|                                       | Depreciation and amortization          |              |        | 18,103 |              |   |        | 14,344 | 
|                                       | Unremitted earnings in the Philippines |              |        | 4,789  |              |   |        |       | 
|                                       |                                        |              |        |        |              |  
|                                       |                                        |              | 22,892 |        |              |   | 14,344 |       
|                                       |                                        |              |        |        |              |  

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INTERNATIONAL WIRE GROUP, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


|                                          |                               |              |        |       |              |   |   |   | 
|----------------------------------------- | ----------------------------- | ------------ | ------ | ----- | ------------ | - | - | - | 
|                                          |                               | Successor    |       
|                                          |                               |              |       
|                                          |                               | December 31, |        |       | December 31, |  
|                                          |                               | 2005         |        |       | 2004         |  
|                                          |                               |              |        |       |              |  
|Net deferred tax asset                    |                               | $            | 3,195  |       |              | $ | 0 |  
|                                          |                               |              |        |       |              |  
|Net current deferred tax assets           |                               | $            | 8,900  |       |              |   |  |  
|Net noncurrent deferred tax (liabilities) |                               |              | (5,705 | )     |              |   |  |  
|                                          |                               |              |        |       |              |  
|                                          | Total net deferred tax assets |              | $      | 3,195 |              |   |   |  | 
|                                          |                               |              |        |       |              |  



90-7, 90-7.






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INTERNATIONAL WIRE GROUP, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




Application of FASB Statement
No. 109, Accounting for Income Taxes, to the
Tax Deduction on Qualified Production Activities Provided by the
American Jobs Creation Act of 2004








|    |                                     
|--- | ------------------------------------
|13. | Impairment and Plant Closing Charges



|                                        |                        |              |       |                |              |   |                |             |  |   |              |     |  |   |       |     | 
|--------------------------------------- | ---------------------- | ------------ | ----- | -------------- | ------------ | - | -------------- | ----------- |  | - | ------------ | --- |  | - | ----- | --- | 
|                                        |                        | Successor    |       |                | Successor    |   |                | Predecessor |  |   | Predecessor  |    
|                                        |                        | Company      |       |                | Company      |   |                | Company     |  |   | Company      |    
|                                        |                        |              |       |                |              |   |                |             |  |   |              |    
|                                        |                        |              |       | For the Period |              |   | For the Period |             |  |  
|                                        |                        | For the Year |       |                | October 20   |   |                | January 1   |  |   | For the Year |    
|                                        |                        | Ended        |       |                | through      |   |                | through     |  |   | Ended        |    
|                                        |                        | December 31, |       |                | December 31, |   |                | October 19, |  |   | December 31, |    
|                                        |                        | 2005         |       |                | 2004         |   |                | 2004        |  |   | 2003         |    
|                                        |                        |              |       |                |              |   |                |             |  |   |              |    
|Bare wire and Engineered wire segments: |                        |              |       |                |              |   |                |             |  |   |              |     |  |   |       |    
|                                        | Plant closings         |              | $     |               |              |   | $              | 1,632       |  |   | $            | 262 |  |   | $     | 200 | 
|                                        | Fixed asset impairment |              |       |               |              |   |                |            |  |   |              |    |  |   |       | 988 | 
|                                        |                        |              |       |                |              |   |                |             |  |   |              |    
|                                        |                        |              |      |                |              |   | 1,632          |             |  |   | 262          |     |  |   | 1,188 |    
|                                        |                        |              |       |                |              |   |                |             |  |   |              |    
|Insulated wire segment:                 |                        |              |       |                |              |   |                |             |  |   |              |     |  |   |       |    
|                                        | Plant closings         |              |       | 192            |              |   |                |            |  |   |              |    |  |   |       |    | 
|                                        | Fixed asset impairment |              |       | 3,337          |              |   |                |            |  |   |              |    |  |   |       |    | 
|                                        |                        |              |       |                |              |   |                |             |  |   |              |    
|                                        |                        |              | 3,529 |                |              |   |               |             |  |   |             |     |  |   |      |    
|                                        |                        |              |       |                |              |   |                |             |  |   |              |    
|Total                                   |                        | $            | 3,529 |                |              | $ | 1,632          |             |  | $ | 262          |     |  | $ | 1,188 |    
|                                        |                        |              |       |                |              |   |                |             |  |   |              |    





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INTERNATIONAL WIRE GROUP, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)








|    |                                           
|--- | ------------------------------------------
|14. | Retirement Benefits and Stock Option Plans











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INTERNATIONAL WIRE GROUP, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                |                             |                |      |      |         |  |           |            |   |  |           |            |  
|------------------------------- | --------------------------- | -------------- | ---- | ---- | ------- |  | --------- | ---------- | - |  | --------- | ---------- | -
|                                |                             | Weighted       |      |      |         |  |          
|                                |                             | Average        |      |      |         |  |          
|                                |                             | Exercise Price |      |      | Options |  |           | Options    |  
|                                |                             | per Share      |      |      | Granted |  |           | Vested     |  
|                                |                             |                |      |      |         |  |           |            |  
|December 31, 2002 (Predecessor) |                             |                | 1.00 |      |         |  | 3,332,354 |            |   |  | 2,770,354 |           
|                                | Granted                     |                |      |     |         |  |           |           |   |  |           |           |  
|                                | Vested                      |                |      | 1.00 |         |  |           |           |   |  |           | 149,700    |  
|                                | Forfeitures                 |                |      | 1.00 |         |  |           | (75,000    | ) |  |           |           |  
|                                |                             |                |      |      |         |  |           |            |  
|December 31, 2003 (Predecessor) |                             |                | 1.00 |      |         |  | 3,257,354 |            |   |  | 2,920,054 |           
|                                |                             |                |      |      |         |  |           |            |  
|                                | Cancelled on reorganization |                |      |     |         |  |           | (3,257,354 | ) |  |           | (2,920,054 | )
|                                |                             |                |      |      |         |  |           |            |  
|October 20, 2004 (Successor)    |                             |                |     |      |         |  |          |            |   |  |          |           
|                                |                             |                |      |      |         |  |           |            |  



|                                |  |                |      |         |  |         |            |   |  |  |   | 
|------------------------------- |  | -------------- | ---- | ------- |  | ------- | ---------- | - |  |  | - | 
|                                |  | Weighted       |      |         |  |        
|                                |  | Average        |      |         |  |        
|                                |  | Exercise Price |      | Options |  | Options
|                                |  | per Share      |      | Granted |  | Vested 
|                                |  |                |      |         |  |        
|December 31, 2002 (Predecessor) |  |                | 1.79 |         |  |         | 4,202,744  |   |  |  |  | 
|Granted                         |  |                |     |         |  |         |           |   |  |  |  | 
|                                |  |                |      |         |  |         |            |   |  |  |   | 
|December 31, 2003 (Predecessor) |  |                | 1.94 |         |  |         | 4,202,744  |   |  |  |  | 
|Cancelled on reorganization     |  |                |     |         |  |         | (4,202,744 | ) |  |  |  | 
|                                |  |                |      |         |  |         |            |   |  |  |   | 
|October 20, 2004 (Successor)    |  |                |      |         |  |         |           |   |  |  |  | 
|                                |  |                |      |         |  |         |            |   |  |  |   | 



|    |                              
|--- | -----------------------------
|15. | Commitments and Contingencies



|           |  |   |       | 
|---------- |  | - | ----- | 
|2006       |  | $ | 1,546 | 
|2007       |  |   | 841   | 
|2008       |  |   | 642   | 
|2009       |  |   | 24    | 
|2010       |  |   |      | 
|Thereafter |  |   |      | 
|           |  |   |      
|           |  | $ | 3,053 | 
|           |  |   |      



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INTERNATIONAL WIRE GROUP, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                      |                                    |             |      |      |              |   |      |      |  
|------------------------------------- | ---------------------------------- | ----------- | ---- | ---- | ------------ | - | ---- | ---- | -
|                                      |                                    | Predecessor |     
|                                      |                                    |             |     
|                                      |                                    | January 1   |      |      |             
|                                      |                                    | through     |      |      | Year Ended   |  
|                                      |                                    | October 19, |      |      | December 31, |  
|                                      |                                    | 2004        |      |      | 2003         |  
|                                      |                                    |             |      |      |              |  
|Interest cost                         |                                    | $           | 7    |      |              | $ | 234  |     
|Amortization of prior service cost    |                                    |             | (525 | )    |              |   | (360 | )   
|Amortization of unrecognized net lost |                                    |             | 37   |      |              |   | 17   |     
|                                      |                                    |             |      |      |              |  
|                                      | Net periodic postretirement income |             | $    | (481 | )            |   | $    | (109 | )
|                                      |                                    |             |      |      |              |  



|                                     |  |              |      |   |  |              |   |        |  
|------------------------------------ |  | ------------ | ---- | - |  | ------------ | - | ------ | -
|                                     |  | Successor    |      |   |  | Predecessor  |  
|                                     |  | December 31, |      |   |  | December 31, |  
|                                     |  | 2004         |      |   |  | 2003         |  
|                                     |  |              |      |   |  |              |  
|Beginning benefit obligation balance |  | $            | 154  |   |  |              | $ | 6,938  |  
|Interest cost                        |  |              | 7    |   |  |              |   | 234    |  
|Plan participants contribution       |  |              | 254  |   |  |              |   | 160    |  
|Actuarial losses                     |  |              |     |   |  |              |   | 460    |  
|Benefits paid                        |  |              | (304 | ) |  |              |   | (348   | )
|Plan amendments                      |  |              |     |   |  |              |   | (7,290 | )
|Fresh-start reporting adjustment     |  |              | (111 | ) |  |              |   |       |  
|                                     |  |              |      |   |  |              |  
|Ending benefit obligation balance    |  | $            |     |   |  |              | $ | 154    |  
|                                     |  |              |      |   |  |              |  



|                                     |  |              |   |  |              |  |   |        |  
|------------------------------------ |  | ------------ | - |  | ------------ |  | - | ------ | -
|                                     |  | Successor    |   |  | Predecessor  | 
|                                     |  | December 31, |   |  | December 31, | 
|                                     |  | 2004         |   |  | 2003         | 
|                                     |  |              |   |  |              | 
|Beginning benefit obligation balance |  | $            |  |  |              |  | $ | (154   | )
|Beginning benefit obligation balance |  |              |  |  |              |  |   | (7,474 | )
|                                     |  |              |   |  |              |  |  
|Beginning benefit obligation balance |  | $            |  |  |              |  | $ | (7,628 | )
|                                     |  |              |   |  |              |  |  





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INTERNATIONAL WIRE GROUP, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|    |                             
|--- | ----------------------------
|16. | Business Segment Information











|                                                    |  |           |         |            |        |   |           |      |  |   |           |  |             |   |   |       |  |   |        |   |  |   |         | 
|--------------------------------------------------- |  | --------- | ------- | ---------- | ------ | - | --------- | ---- |  | - | --------- |  | ----------- | - | - | ----- |  | - | ------ | - |  | - | ------- | 
|                                                    |  |           |         | Engineered |        |   |           |      |  |   |           |  |            
|                                                    |  |           |         | Wire-      |        |   | Insulated |      |  |   |           |  |             |  
|                                                    |  | Bare Wire |         |            | Europe |   |           | Wire |  |   | Corporate |  | Elimination |   |   | Total | 
|                                                    |  |           |         |            |        |   |           |      |  |   |           |  |             |   |   |       | 
|Net sales                                           |  |           |         |            |        |   |           |      |  |   |           |  |             |   |   |       |  |   |        |   |  |   |         | 
|For the year ended December 31, 2005                |  | $         | 391,795 |            |        | $ | 38,845    |      |  | $ | 114,556   |  |             | $ |  |       |  | $ | (5,911 | ) |  | $ | 539,285 | 
|For the period October 20 through December 31, 2004 |  |           | 62,580  |            |        |   | 7,039     |      |  |   | 16,764    |  |             |   |  |       |  |   | (1,280 | ) |  |   | 85,103  | 
|For the period January 1 through October 19, 2004   |  |           | 246,201 |            |        |   | 30,584    |      |  |   | 75,010    |  |             |   |  |       |  |   | (5,485 | ) |  |   | 346,310 | 
|For the year ended December 31, 2003                |  |           | 190,758 |            |        |   | 30,935    |      |  |   | 52,765    |  |             |   |  |       |  |   | (5,145 | ) |  |   | 269,313 | 
|Operating income/(loss)                             |  |           |         |            |        |   |           |      |  |   |           |  |             |   |   |       |  |   |        |   |  |   |         | 

|                                                    |  |           |        |            |        |   |           |      |  |   |           |  |  |             |        |       |  |   |   |  |  |   |        | 
|--------------------------------------------------- |  | --------- | ------ | ---------- | ------ | - | --------- | ---- |  | - | --------- |  |  | ----------- | ------ | ----- |  | - | - |  |  | - | ------ | 
|                                                    |  |           |        | Engineered |        |   |           |      |  |   |           |  | 
|                                                    |  |           |        | Wire-      |        |   | Insulated |      |  |   |           |  |  |            
|                                                    |  | Bare Wire |        |            | Europe |   |           | Wire |  |   | Corporate |  |  | Elimination |        | Total | 
|                                                    |  |           |        |            |        |   |           |      |  |   |           |  |  |             |        |       | 
|For the year ended December 31, 2005                |  | $         | 20,158 |            |        | $ | 1,378     |      |  | $ | 500       |  |  | $           | (5,418 | )     |  | $ |  |  |  | $ | 16,618 | 
|For the period October 20 through December 31, 2004 |  |           | 2,761  |            |        |   | (2,812    | )    |  |   | 2,429     |  |  |             |        |       |  |   |  |  |  |   | 2,378  | 
|For the period January 1 through October 19, 2004   |  |           | 18,161 |            |        |   | 1,785     |      |  |   | 2,851     |  |  |             | (2,719 | )     |  |   |  |  |  |   | 20,078 | 
|For the year ended December 31, 2003                |  |           | 17,982 |            |        |   | 1,098     |      |  |   | 7,215     |  |  |             | (9,097 | )     |  |   |  |  |  |   | 17,198 | 

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INTERNATIONAL WIRE GROUP, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


|                        |  |           |         |            |        |  |           |      |  |  |           |  |  |             |        |  |       |  |        |   |  |  |         | 
|----------------------- |  | --------- | ------- | ---------- | ------ |  | --------- | ---- |  |  | --------- |  |  | ----------- | ------ |  | ----- |  | ------ | - |  |  | ------- | 
|                        |  |           |         | Engineered |        |  |           |      |  |  |           |  | 
|                        |  |           |         | Wire-      |        |  | Insulated |      |  |  |           |  |  |            
|                        |  | Bare Wire |         |            | Europe |  |           | Wire |  |  | Corporate |  |  | Elimination |        |  | Total | 
|                        |  |           |         |            |        |  |           |      |  |  |           |  |  |             |        |  |       | 
|Goodwill                |  |           |         |            |        |  |           |      |  |  |           |  |  |             |        |  |       |  |        |   |  |  |         | 
|As of December 31, 2005 |  |           | 71,193  |            |        |  |          |      |  |  |          |  |  |             |       |  |       |  |       |   |  |  | 71,193  | 
|As of December 31, 2004 |  |           | 71,359  |            |        |  |          |      |  |  |          |  |  |             |       |  |       |  |       |   |  |  | 71,359  | 
|Total assets            |  |           |         |            |        |  |           |      |  |  |           |  |  |             |        |  |       |  |        |   |  |  |         | 
|As of December 31, 2005 |  |           | 254,351 |            |        |  | 28,230    |      |  |  | 67,075    |  |  |             | 17,614 |  |       |  | (1,016 | ) |  |  | 366,254 | 
|As of December 31, 2004 |  |           | 237,066 |            |        |  | 31,559    |      |  |  | 105,939   |  |  |             | 20,936 |  |       |  | (1,293 | ) |  |  | 394,207 | 



|              |       |              |         |         |              |             |        |        |             |  |   |              |         |  |   |         |         | 
|------------- | ----- | ------------ | ------- | ------- | ------------ | ----------- | ------ | ------ | ----------- |  | - | ------------ | ------- |  | - | ------- | ------- | 
|              |       | Successor    |         |         |              | Predecessor |       
|              |       |              |         |         |              |             |       
|              |       | For the Year |         |         | October 20   |             |        |        | January 1   |  |   | For the Year |        
|              |       | Ended        |         |         | through      |             |        |        | through     |  |   | Ended        |        
|              |       | December 31, |         |         | December 31, |             |        |        | October 19, |  |   | December 31, |        
|              |       | 2005         |         |         | 2004         |             |        |        | 2004        |  |   | 2003         |        
|              |       |              |         |         |              |             |        |        |             |  |   |              |        
|United States |       | $            | 385,884 |         |              | $           | 61,299 |        |             |  | $ | 240,716      |         |  | $ | 185,613 |        
|Europe        |       |              | 38,845  |         |              |             | 7,039  |        |             |  |   | 30,584       |         |  |   | 30,935  |        
|Mexico        |       |              | 40,619  |         |              |             | 5,731  |        |             |  |   | 20,191       |         |  |   | 9,796   |        
|Philippines   |       |              | 73,937  |         |              |             | 11,034 |        |             |  |   | 54,819       |         |  |   | 42,969  |        
|              |       |              |         |         |              |             |        |        |             |  |   |              |        
|              | Total |              | $       | 539,285 |              |             | $      | 85,103 |             |  |   | $            | 346,310 |  |   | $       | 269,313 | 
|              |       |              |         |         |              |             |        |        |             |  |   |              |        



|              |       |              |        |        |              |   |        |         | 
|------------- | ----- | ------------ | ------ | ------ | ------------ | - | ------ | ------- | 
|              |       | December 31, |        |        | December 31, |  
|              |       | 2005         |        |        | 2004         |  
|              |       |              |        |        |              |  
|United States |       | $            | 64,693 |        |              | $ | 78,294 |        
|Europe        |       |              | 7,916  |        |              |   | 9,479  |        
|Mexico        |       |              | 5,118  |        |              |   | 8,831  |        
|Philippines   |       |              | 7,713  |        |              |   | 7,528  |        
|              |       |              |        |        |              |  
|              | Total |              | $      | 85,440 |              |   | $      | 104,132 | 
|              |       |              |        |        |              |  



|    |           
|--- | ----------
|17. | Litigation

International Wire
Group, Inc. v. National Union Fire Insurance Company of
Pittsburgh, Pennsylvania, AIG Technical Services, Inc., Aon
Corporation and Aon Risk Services of Missouri, Ltd. (The
AIG Litigation).


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INTERNATIONAL WIRE GROUP, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)








|                                                                          |                           |        |       |          |         |   |        |         |  
|------------------------------------------------------------------------- | ------------------------- | ------ | ----- | -------- | ------- | - | ------ | ------- | -
|                                                                          |                           |        |       | Value of |        
|                                                                          |                           | No. of |       |          | Alleged |  
|                                                                          |                           | Claims |       |          | Damages |  
|                                                                          |                           |        |       |          |         |  
|As of December 31, 2002 (Predecessor)                                     |                           |        | 465   |          |         | $ | 4,343  |        
|For the year ended December 31, 2003 (Predecessor)                        |                           |        |       |          |         |   |        |        
|                                                                          | New uninsured claims      |        |       | 2,832    |         |   |        | 27,172  |  
|                                                                          | Resolved uninsured claims |        |       | (1,604   | )       |   |        | (15,790 | )
|                                                                          |                           |        |       |          |         |  
|As of December 31, 2003 (Predecessor)                                     |                           |        | 1,693 |          |         |   | 15,725 |        
|For the period January 1, 2004 through October 19,
    2004 (Predecessor) |                           |        |       |          |         |   |        |        
|                                                                          | New uninsured claims      |        |       | 523      |         |   |        | 5,896   |  
|                                                                          | Resolved uninsured claims |        |       | (1,870   | )       |   |        | (18,181 | )
|                                                                          |                           |        |       |          |         |  
|As of October 19, 2004 (Predecessor)                                      |                           |        | 346   |          |         |   | 3,440  |        
|For the period October 20, 2004 through December 31,
    2004 (Successor) |                           |        |       |          |         |   |        |        
|                                                                          | New uninsured claims      |        |       | 42       |         |   |        | 516     |  
|                                                                          | Resolved uninsured claims |        |       | (       | )       |   |        | (      | )
|                                                                          |                           |        |       |          |         |  
|As of December 31, 2004 (Successor)                                       |                           |        | 388   |          |         |   | 3,956  |        
|For the year ended December 31, 2005 (Successor)                          |                           |        |       |          |         |   |        |        
|                                                                          | New uninsured claims      |        |       | 1,526    |         |   |        | 15,158  |  
|                                                                          | Resolved uninsured claims |        |       | (1,604   | )       |   |        | (15,503 | )
|                                                                          |                           |        |       |          |         |  
|As of December 31, 2005                                                   |                           |        | 310   |          |         | $ | 3,611  |        
|                                                                          |                           |        |       |          |         |  



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INTERNATIONAL WIRE GROUP, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






|                                     |  |              |     |  |              |             |   |  |                 |  |   |              |  |  |   |       | 
|------------------------------------ |  | ------------ | --- |  | ------------ | ----------- | - |  | --------------- |  | - | ------------ |  |  | - | ----- | 
|                                     |  | Successor    |     |  |              | Predecessor |  
|                                     |  |              |     |  |              |             |  
|                                     |  | For the Year |     |  | October 20,  |             |   |  | January 1, 2004 |  |   | For the Year | 
|                                     |  | Ended        |     |  | 2004 through |             |   |  | through         |  |   | Ended        | 
|                                     |  | December 31, |     |  | December 31, |             |   |  | October 19,     |  |   | December 31, | 
|                                     |  | 2005         |     |  | 2004         |             |   |  | 2004            |  |   | 2003         | 
|                                     |  |              |     |  |              |             |   |  |                 |  |   |              | 
|Aggregate settlement costs           |  | $            | 340 |  |              | $           |  |  |                 |  | $ | 3,294        |  |  | $ | 1,387 | 
|Cost of administering and litigating |  | $            | 360 |  |              | $           | 5 |  |                 |  | $ | 392          |  |  | $ | 3,493 | 
|Average cost per resolved claim      |  | $            |    |  |              | $           |  |  |                 |  | $ | 1            |  |  | $ | 1     | 







|    |                  
|--- | -----------------
|18. | Subsequent Events







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INTERNATIONAL WIRE GROUP, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|    |                                            
|--- | -------------------------------------------
|19. | Quarterly Financial Information (unaudited)



|                                         |                   |                                           |         |       |          |   |         |          |   |   |          |       |   |   |         |       |  
|---------------------------------------- | ----------------- | ----------------------------------------- | ------- | ----- | -------- | - | ------- | -------- | - | - | -------- | ----- | - | - | ------- | ----- | -
|                                         |                   | 2005                                      |        
|                                         |                   |                                           |        
|                                         |                   | 4th Qtr.                                  |         |       | 3rd Qtr. |   |         | 2nd Qtr. |   |   | 1st Qtr. |      
|                                         |                   |                                           |         |       |          |   |         |          |   |   |          |      
|                                         |                   | ($ in thousands except per share amounts) |        
|Net sales                                |                   | $                                         | 152,590 |       |          | $ | 138,958 |          |   | $ | 126,825  |       |   | $ | 120,912 |      
|Operating income                         |                   |                                           | 1,041   |       |          |   | 7,538   |          |   |   | 2,807    |       |   |   | 5,232   |      
|Income/(loss) from continuing operations |                   |                                           | (1,498  | )     |          |   | 2,694   |          |   |   | (1,902   | )     |   |   | (938    | )    
|Income/loss from discontinued operations |                   |                                           | 108     |       |          |   | (6,341  | )        |   |   | (3,786   | )     |   |   | 477     |      
|Net income/(loss)                        |                   |                                           | (1,390  | )     |          |   | (3,647  | )        |   |   | (5,688   | )     |   |   | (461    | )    
|Earnings/(loss) per share                |                   |                                           |         |       |          |   |         |          |   |   |          |       |   |   |         |      
|                                         | Basic and diluted |                                           | $       | (0.14 | )        |   | $       | (0.36    | ) |   | $        | (0.57 | ) |   | $       | (0.05 | )

|                                         |                   |                                           |         |       |                     |            |   |         |          |  |   |          |       |  |          |         |        |   |   |         |         |  
|---------------------------------------- | ----------------- | ----------------------------------------- | ------- | ----- | ------------------- | ---------- | - | ------- | -------- |  | - | -------- | ----- |  | -------- | ------- | ------ | - | - | ------- | ------- | -
|                                         |                   |                                           |         |       | Predecessor Company |           
|                                         |                   |                                           |         |       |                     |           
|                                         |                   | 2004                                      |         |       |                     | 2004       |  
|                                         |                   |                                           |         |       |                     |            |  
|                                         |                   | October 20                                |         |       |                     | October 1  |   |         |         
|                                         |                   | through                                   |         |       |                     | through    |   |         |         
|                                         |                   | December 31                               |         |       |                     | October 19 |   |         | 3rd Qtr. |  |   | 2nd Qtr. |       |  | 1st Qtr. |        
|                                         |                   |                                           |         |       |                     |            |   |         |          |  |   |          |       |  |          |        
|                                         |                   | ($ in thousands except per share amounts) |        
|Net sales                                |                   | $                                         | 85,103  |       |                     |            | $ | 32,975  |          |  | $ | 102,378  |       |  | $        | 109,636 |        |   | $ | 101,321 |        
|Operating income                         |                   |                                           | 2,378   |       |                     |            |   | 9,052   |          |  |   | 6,043    |       |  |          | 2,312   |        |   |   | 2,671   |        
|Income/(loss) from continuing operations |                   |                                           | (262    | )     |                     |            |   | 253,934 |          |  |   | 1,629    |       |  |          | (3,422  | )      |   |   | (7,807  | )      
|Loss from discontinued operations        |                   |                                           | (10,500 | )     |                     |            |   | (792    | )        |  |   | 145      |       |  |          | (266    | )      |   |   | (6,113  | )      
|Net income/(loss)                        |                   |                                           | (10,762 | )     |                     |            |   | 253,142 |          |  |   | 1,774    |       |  |          | (3,688  | )      |   |   | (13,920 | )      
|Earnings/(loss) per share                |                   |                                           |         |       |                     |            |   |         |          |  |   |          |       |  |          |         |        |   |   |         |        
|                                         | Basic and diluted |                                           | $       | (1.08 | )                   |            |   | $       | 253,142  |  |   | $        | 1,774 |  |          | $       | (3,688 | ) |   | $       | (13,920 | )

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








|         |                        
|-------- | -----------------------
|Item 9A. | Controls and Procedures

Evaluation of Disclosure Controls and Procedures


13a-15(b) 15d-15(b) 8-K 10-K






Remediation Plan






8-K 8-K.


Changes In Internal Control Over Financial Reporting




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Item 9B. Other Information.







PART III







|         |                                                
|-------- | -----------------------------------------------
|Item 10. | Directors and Executive Officers of Registrant.





8-K.







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








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








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








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






PART IV







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





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REPORT
OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM


ON


FINANCIAL STATEMENT SCHEDULE




10-K 10-K.




| |                                   
| | ----------------------------------
| | /s/ PRICEWATERHOUSECOOPERS
    LLP





FINANCIAL STATEMENT SCHEDULE


INTERNATIONAL WIRE GROUP, INC. (Successor)


SCHEDULE II  VALUATION AND QUALIFYING
ACCOUNTS


|                                               |  |                |       |  |           |   |     |            |                    |   |              |   |               |   |   |  |  |   |       | 
|---------------------------------------------- |  | -------------- | ----- |  | --------- | - | --- | ---------- | ------------------ | - | ------------ | - | ------------- | - | - |  |  | - | ----- | 
|                                               |  | Balance at     |       |  |           |   |     |            | Collection Of      |   |             
|Allowance For Doubtful Accounts  Deducted     |  | Beginning      |       |  |           |   |     |            | Previously Written |   | Balance at   |  
|from Accounts Receivables in the Balance Sheet |  | of Period      |       |  | Provision |   |     | Write-Offs |                    |   | off Accounts |   | End of Period |  
|                                               |  |                |       |  |           |   |     |            |                    |   |              |   |               |  
|                                               |  | (In thousands) |      
|Year ended December 31, 2005                   |  | $              | 4,060 |  |           | $ | 417 |            |                    | $ | (1,441       | ) |               | $ |  |  |  | $ | 3,036 | 
|Period October 20 through December 31, 2004    |  | $              | 4,169 |  |           | $ | 83  |            |                    | $ | (192         | ) |               | $ |  |  |  | $ | 4,060 | 

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM


ON


FINANCIAL STATEMENT SCHEDULE




10-K 10-K.




| |                                   
| | ----------------------------------
| | /s/ PRICEWATERHOUSECOOPERS
    LLP





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FINANCIAL STATEMENT SCHEDULE


INTERNATIONAL WIRE GROUP, INC. (Predecessor)


SCHEDULE II  VALUATION AND QUALIFYING
ACCOUNTS


|                                               |  |                |       |  |           |   |       |               |             |   |          |            |  |               |     |   |  |   |       | 
|---------------------------------------------- |  | -------------- | ----- |  | --------- | - | ----- | ------------- | ----------- | - | -------- | ---------- |  | ------------- | --- | - |  | - | ----- | 
|                                               |  |                |       |  |           |   |       | Collection Of |             |   |         
|                                               |  | Balance at     |       |  |           |   |       |               | Previously  |   |          |           
|Allowance For Doubtful Accounts  Deducted     |  | Beginning      |       |  |           |   |       |               | Written off |   |          | Balance at | 
|from Accounts Receivables in the Balance Sheet |  | of Period      |       |  | Provision |   |       | Write-Offs    |             |   | Accounts |            |  | End of Period |    
|                                               |  |                |       |  |           |   |       |               |             |   |          |            |  |               |    
|                                               |  | (In thousands) |      
|Year ended December 31, 2003                   |  | $              | 7,080 |  |           | $ | 1,832 |               |             | $ | (3,997   | )          |  | $             | (16 | ) |  | $ | 4,899 | 
|Period January 1 through October 19, 2004      |  | $              | 4,899 |  |           | $ | 242   |               |             | $ | (972     | )          |  | $             |    |   |  | $ | 4,169 | 

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3. Exhibits:


|        |       |                     |  |                                                                                                                                                                                                                                                                                                                                                                                       
|------- | ----- | ------------------- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |       |                    
|No.     |       | Exhibit Description
|        |       |                    
|        | 2.1   |                     |  | Second Amended and Restated Joint Plan of Reorganization of
    International Wire Group, Inc., et. al., under
    Chapter 11 of the Bankruptcy Code, dated June 24,
    2004.(7)                                                                                                                                                                                                     
|        | 2.2   |                     |  | Stock Purchase Agreement, dated March 4, 2006, between
    Phelps Dodge Corporation, a New York corporation, and
    International Wire Group, Inc., a Delaware corporation.(13)                                                                                                                                                                                                      
|        | 2.3   |                     |  | Amendment No. 1 to Stock Purchase Agreement, dated
    March 31, 2006, between Phelps Dodge Corporation, a New
    York corporation, and International Wire Group, Inc., a
    Delaware corporation.(14)                                                                                                                                                                              
|        | 3.1   |                     |  | Amended and Restated Certificate of Incorporation of
    International Wire Group, Inc.(2)                                                                                                                                                                                                                                                                                            
|        | 3.2   |                     |  | Amended and Restated Bylaws of International Wire Group, Inc.(2)                                                                                                                                                                                                                                                                                                                      
|        | 4.1   |                     |  | Indenture, dated as of October 20, 2004, among
    International Wire Group, Inc., the guarantors party thereto,
    and BNY Midwest Trust Company, as Trustee.(2)                                                                                                                                                                                                                    
|        | 4.2   |                     |  | Form of 10% Secured Senior Subordinated Note due 2011 (included
    as Exhibit A to the Indenture filed as Exhibit 4.1
    hereto).(2)                                                                                                                                                                                                                                                
|        | 10.1  |                     |  | Loan and Security Agreement, dated as of October 20, 2004,
    among the borrowers and guarantors specified therein, the
    several lenders from time to time parties thereto and Congress
    Financial Corporation (Central), as agent.(2)                                                                                                                                         
|        | 10.2  |                     |  | Loan and Security Agreement, dated as of October 20, 2004,
    among the borrowers and guarantors specified therein, the
    several lenders from time to time parties thereto and Silver
    Point Finance, LLC, as agent.(2)                                                                                                                                                        
|        | 10.3  |                     |  | Collateral Agreement, dated as of October 20, 2004, among
    International Wire Group, Inc., the subsidiaries of
    International Wire Group, Inc. identified therein, and BNY
    Midwest Trust Company, as collateral agent.(2)                                                                                                                                                   
|        | 10.4  |                     |  | Intercreditor Agreement, dated as of October 20, 2004,
    among Congress Financial Corporation (Central), as working
    capital loan and security agreement agent, Silver Point Finance,
    LLC, as term loan agreement agent, and BNY Midwest Trust
    Company, as trustee.(2)                                                                                                   
|        | 10.5  |                     |  | Intercreditor Agreement, dated October 20, 2004, by and
    between Congress Financial Corporation (CENTRAL), in its
    capacity as agent pursuant to the working capital loan and
    security agreement for the lenders who are party from time to
    time thereto, and Silver Point Finance, LLC, in its capacity as
    collateral agent pursuant to the term loan agreement.(2)
|        | 10.6  |                     |  | International Wire Group, Inc. 2004 Stock Option Plan.(2)*                                                                                                                                                                                                                                                                                                                            
|        | 10.7  |                     |  | Amended and Restated Registration Rights Agreement, dated as of
    November 23, 2004, among International Wire Group, Inc. and
    the holders specified therein.(2)                                                                                                                                                                                                                 
|        | 10.8  |                     |  | Amended and Restated Employment Agreement, dated
    September 15, 2003, by and among International Wire Holding
    Company, International Wire Group, Inc., the other subsidiary
    parties thereto, and Joseph M. Fiamingo.(4)*                                                                                                                                                   
|        | 10.9  |                     |  | Second Amended and Restated Employment Agreement, dated
    June 30, 2005, between International Wire Group, Inc., the
    other subsidiary parties thereto, and Glenn J. Holler.(9)*                                                                                                                                                                                                 
|        | 10.10 |                     |  | Amended and Restated Employment Agreement, dated March 14,
    1995, between Omega Wire, Inc. and Rodney D. Kent.(6)*                                                                                                                                                                                                                                                                 
|        | 10.11 |                     |  | Supply Contract, dated January 1, 2003, between Viasystems,
    Inc. and International Wire Group, Inc.(4)                                                                                                                                                                                                                                                                            
|        | 10.12 |                     |  | First Amendment to Supply Contract, dated February 1, 2004,
    between Viasystems, Inc. and International Wire Group, Inc.(1)+                                                                                                                                                                                                                                                       
|        | 10.13 |                     |  | Letter Agreement regarding supply agreement, dated June 9,
    2004, between Viasystems, Inc. and International Wire Group,
    Inc.(1)+                                                                                                                                                                                                                                              
|        | 10.14 |                     |  | International Wire Group, Inc. Key Employee Retention Plan.(2)*                                                                                                                                                                                                                                                                                                                       
|        | 10.15 |                     |  | International Wire Group, Inc. Insulated Wire Division Retention
    Plan(1)*                                                                                                                                                                                                                                                                                                         

83



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##### Table of Contents



|        |       |                     |  |                                                                                                                                                                                                                                                                                                                                                                                                                   
|------- | ----- | ------------------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |       |                    
|No.     |       | Exhibit Description
|        |       |                    
|        | 10.16 |                     |  | Monitoring and Oversight Agreement, dated June 12, 1995,
    among International Wire Holding Company, International Wire
    Group, Inc. and Hicks, Muse & Co. Partners, L.P.(6)                                                                                                                                                                                                                                 
|        | 10.17 |                     |  | Consulting Agreement, dated November 15, 2004, between
    International Wire Group, Inc. and Whiterock Affiliates LLC(1)*                                                                                                                                                                                                                                                                                        
|        | 10.18 |                     |  | Compensation for William Lane Pennington(1)*                                                                                                                                                                                                                                                                                                                                                                      
|        | 10.19 |                     |  | Nonqualified Stock Option Agreement, dated August 1, 2005,
    between International Wire Group, Inc. and William Lane
    Pennington. (10)*                                                                                                                                                                                                                                                                      
|        | 10.20 |                     |  | Form of Indemnification Agreement (11)                                                                                                                                                                                                                                                                                                                                                                            
|        | 10.21 |                     |  | Asset Purchase Agreement, dated November 30, 2005, among
    International Wire Group, Inc., a Delaware corporation, Wire
    Technologies, Inc., an Indiana corporation, and Copperfield,
    LLC., a Minnesota limited liability company. (12)                                                                                                                                                                  
|        | 10.22 |                     |  | Amendment No. 1 to Loan and Security Agreement, dated as of
    March 31, 2006, among the borrowers and guarantors
    specified therein, the several lenders from time to time parties
    thereto and Wachovia Capital Finance Corporation (Central),
    formerly known as Congress Financial Corporation (Central).(14)                                                                                       
|        | 10.23 |                     |  | Amendment No. 1 to Loan and Security Agreement, dated as of
    March 31, 2006, among the borrowers and guarantors
    specified therein, the several lenders from time to time parties
    thereto and Silver Point Finance, LLC.(14)                                                                                                                                                                            
|        | 10.24 |                     |  | Amendment No. 1 to Intercreditor Agreement, dated as of
    March 31, 2006, by and between Wachovia Financial
    Corporation (CENTRAL), in its capacity as agent pursuant to the
    working capital loan and security agreement for the lenders who
    are party from time to time thereto, and Silver Point Finance,
    LLC, in its capacity as collateral agent pursuant to the term
    loan agreement.(14)
|        | 10.25 |                     |  | Supplement No. 1 to the Indenture, dated as of
    March 31, 2006, among International Wire Group, Inc.,
    the guarantors party thereto, and BNY Midwest Trust Company, as
    Trustee.(14)                                                                                                                                                                                                                     
|        | 10.26 |                     |  | Supplement No. 1 to the Collateral Agreement, dated as of
    March 31, 2006, among International Wire Group, Inc.,
    the subsidiaries of International Wire Group, Inc.
    identified therein, and BNY Midwest Trust Company, as collateral
    agent.(14)                                                                                                                                                    
|        | 10.27 |                     |  | Letter agreement, dated April 4, 2006, between
    International Wire Group, Inc. and William Lane
    Pennington.(14)                                                                                                                                                                                                                                                                                            
|        | 21.1  |                     |  | Subsidiaries of International Wire Group, Inc.                                                                                                                                                                                                                                                                                                                                                                    
|        | 31.1  |                     |  | Certification of Principal Executive Officer Required by
    Rule 13a-14(a) of the Securities Exchange Act of 1934, as
    amended.                                                                                                                                                                                                                                                                               
|        | 31.2  |                     |  | Certification of Principal Financial Officer Required by
    Rule 13a-14(a) of the Securities Exchange Act of 1934, as
    amended.                                                                                                                                                                                                                                                                               
|        | 32.1  |                     |  | Certification of Principal Executive Officer Required by
    Rule 13a-14(b) of the Securities Exchange Act of 1934, as
    amended, and 18 U.S.C. Section 1350, as adopted
    pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                         
|        | 32.2  |                     |  | Certification of Principal Financial Officer Required by
    Rule 13a-14(b) of the Securities Exchange Act of 1934, as
    amended, and 18 U.S.C. Section 1350, as adopted
    pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                         






| |     |                                                                                                                                                         
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------
| | (1) | Incorporated by reference to the Registration Statement on
    Amendment No. 1 to
    Form S-1 of
    International Wire Group, Inc. filed May 10, 2005.
|
| | (2) | Incorporated by reference to the Registration Statement on
    Form S-1 of
    International Wire Group, Inc., filed November 23, 2004.                 

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##### Table of Contents





| |     |                                                                                                                                                                                                                        
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (3) | Incorporated by reference to the Annual Report on
    Form 10-K of
    International Wire Group, Inc., filed on March 31, 2003.                                                                                        
|
| | (4) | Incorporated by reference to the Quarterly Report on
    Form 10-Q of
    International Wire Group, Inc., filed on November 14, 2003.                                                                                  
|
| | (5) | Incorporated by reference to the Annual Report on
    Form 10-K405 of
    International Wire Group, Inc., filed on March 21, 2000.                                                                                     
|
| | (6) | Incorporated by reference to the Registration Statement on
    Form S-1
    (33-93970) of
    International Wire Group, Inc. as declared effective by the
    Securities and Exchange Commission on September 29, 1995.
|
| | (7) | Incorporated by reference to the
    Form T-3 of
    International Wire Group, Inc. filed on July 29, 2004.                                                                                                            
|
| | (8) | Incorporated by reference to the Registration Statement on
    Amendment No. 2 to
    Form S-1 of
    International Wire Group, Inc. filed June 24, 2005.                                                              
|
| | (9) | Incorporated by reference to the Registration Statement on
    Amendment No. 3 to
    Form S-1 of
    International Wire Group, Inc. filed July 21, 2005.                                                              



|     |                                                                                                                                                           
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------
|(10) | Incorporated by reference to the Registration Statement on
    Amendment No. 4 to
    Form S-1 of
    International Wire Group, Inc. filed August 2, 2005.
|    
|(11) | Incorporated by reference to the Quarterly Report on
    Form 10-Q of
    International Wire Group, Inc., filed on September 14, 2005.                    
|    
|(12) | Incorporated by reference to the
    Form 8-K of
    International Wire Group, Inc., filed on December 5, 2005.                                           
|    
|(13) | Incorporated by reference to the
    Form 8-K of
    International Wire Group, Inc., filed on March 7, 2006.                                              
|    
|(14) | Incorporated by reference to the
    Form 8-K of
    International Wire Group, Inc. filed on April 4, 2006.                                               



| |   |                                                                         
| | - | ------------------------------------------------------------------------
| | * | Indicates a management contract or compensatory plan or
    arrangement.



| |   |                                                                                                                           
| | - | --------------------------------------------------------------------------------------------------------------------------
| | + | Portions of this exhibit have been omitted pursuant to the
    Commissions grant of a request for confidential treatment.

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##### Table of Contents






SIGNATURES






| |                               
| | ------------------------------
| | International Wire Group, Inc.



| |     |                   
| | --- | ------------------
| | By: | /s/ Rodney D. Kent

| |                        
| | -----------------------
| |                        
| | Rodney D. Kent         
| | Chief Executive Officer



|                                                   |  |                                                                                                 |  | 
|-------------------------------------------------- |  | ----------------------------------------------------------------------------------------------- |  | 
|Signature                                          |  | Capacity                                                                                       
|                                                   |  |                                                                                                
|                                                  
|/s/ Rodney D. KentRodney D. Kent                   |  | Chief Executive Officer and Director                                                           
|                                                  
|/s/ Glenn J. HollerGlenn J. Holler                 |  | Senior Vice President, Chief Financial Officer (Principal
    Accounting Officer) and Secretary
|                                                  
|/s/ Mark HoldsworthMark Holdsworth                 |  | Chairman of the Board                                                                          
|                                                  
|/s/ William Lane PenningtonWilliam Lane Pennington |  | Vice Chairman of the Board                                                                     
|                                                  
|/s/ Peter BlumPeter Blum                           |  | Director                                                                                       
|                                                  
|/s/ David M. Gilchrist, Jr.David M. Gilchrist, Jr. |  | Director                                                                                       
|                                                  
|/s/ Robert A. HamweeRobert A. Hamwee               |  | Director                                                                                       
|                                                  
|/s/ Lowell W. RobinsonLowell W. Robinson           |  | Director                                                                                       
|                                                  
|/s/ John T. WalshJohn T. Walsh                     |  | Director                                                                                       

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##### Table of Contents



EXHIBIT INDEX




|        |    |                     |  |                                                                                                                                                                                                                                                                                                                                                                                       
|------- | -- | ------------------- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |    |                    
|No.     |    | Exhibit Description
|        |    |                    
|        | 2  | .1                  |  | Second Amended and Restated Joint Plan of Reorganization of
    International Wire Group, Inc., et. al., under
    Chapter 11 of the Bankruptcy Code, dated June 24,
    2004.(7)                                                                                                                                                                                                     
|        | 2  | .2                  |  | Stock Purchase Agreement, dated March 4, 2006, between
    Phelps Dodge Corporation, a New York corporation, and
    International Wire Group, Inc., a Delaware corporation.(13)                                                                                                                                                                                                      
|        | 2  | .3                  |  | Amendment No. 1 to Stock Purchase Agreement, dated
    March 31, 2006, between Phelps Dodge Corporation, a New
    York corporation, and International Wire Group, Inc., a
    Delaware corporation.(14)                                                                                                                                                                              
|        | 3  | .1                  |  | Amended and Restated Certificate of Incorporation of
    International Wire Group, Inc.(2)                                                                                                                                                                                                                                                                                            
|        | 3  | .2                  |  | Amended and Restated Bylaws of International Wire Group, Inc.(2)                                                                                                                                                                                                                                                                                                                      
|        | 4  | .1                  |  | Indenture, dated as of October 20, 2004, among
    International Wire Group, Inc., the guarantors party thereto,
    and BNY Midwest Trust Company, as Trustee.(2)                                                                                                                                                                                                                    
|        | 4  | .2                  |  | Form of 10% Secured Senior Subordinated Note due 2011 (included
    as Exhibit A to the Indenture filed as Exhibit 4.1
    hereto).(2)                                                                                                                                                                                                                                                
|        | 10 | .1                  |  | Loan and Security Agreement, dated as of October 20, 2004,
    among the borrowers and guarantors specified therein, the
    several lenders from time to time parties thereto and Congress
    Financial Corporation (Central), as agent.(2)                                                                                                                                         
|        | 10 | .2                  |  | Loan and Security Agreement, dated as of October 20, 2004,
    among the borrowers and guarantors specified therein, the
    several lenders from time to time parties thereto and Silver
    Point Finance, LLC, as agent.(2)                                                                                                                                                        
|        | 10 | .3                  |  | Collateral Agreement, dated as of October 20, 2004, among
    International Wire Group, Inc., the subsidiaries of
    International Wire Group, Inc. identified therein, and BNY
    Midwest Trust Company, as collateral agent.(2)                                                                                                                                                   
|        | 10 | .4                  |  | Intercreditor Agreement, dated as of October 20, 2004,
    among Congress Financial Corporation (Central), as working
    capital loan and security agreement agent, Silver Point Finance,
    LLC, as term loan agreement agent, and BNY Midwest Trust
    Company, as trustee.(2)                                                                                                   
|        | 10 | .5                  |  | Intercreditor Agreement, dated October 20, 2004, by and
    between Congress Financial Corporation (CENTRAL), in its
    capacity as agent pursuant to the working capital loan and
    security agreement for the lenders who are party from time to
    time thereto, and Silver Point Finance, LLC, in its capacity as
    collateral agent pursuant to the term loan agreement.(2)
|        | 10 | .6                  |  | International Wire Group, Inc. 2004 Stock Option Plan.(2)*                                                                                                                                                                                                                                                                                                                            
|        | 10 | .7                  |  | Amended and Restated Registration Rights Agreement, dated as of
    November 23, 2004, among International Wire Group, Inc. and
    the holders specified therein.(2)                                                                                                                                                                                                                 
|        | 10 | .8                  |  | Amended and Restated Employment Agreement, dated
    September 15, 2003, by and among International Wire Holding
    Company, International Wire Group, Inc., the other subsidiary
    parties thereto, and Joseph M. Fiamingo.(4)*                                                                                                                                                   
|        | 10 | .9                  |  | Second Amended and Restated Employment Agreement, dated
    June 30, 2005, between International Wire Group, Inc., the
    other subsidiary parties thereto, and Glenn J. Holler.(9)*                                                                                                                                                                                                 
|        | 10 | .10                 |  | Amended and Restated Employment Agreement, dated March 14,
    1995, between Omega Wire, Inc. and Rodney D. Kent.(6)*                                                                                                                                                                                                                                                                 
|        | 10 | .11                 |  | Supply Contract, dated January 1, 2003, between Viasystems,
    Inc. and International Wire Group, Inc.(4)                                                                                                                                                                                                                                                                            
|        | 10 | .12                 |  | First Amendment to Supply Contract, dated February 1, 2004,
    between Viasystems, Inc. and International Wire Group, Inc.(1)+                                                                                                                                                                                                                                                       
|        | 10 | .13                 |  | Letter Agreement regarding supply agreement, dated June 9,
    2004, between Viasystems, Inc. and International Wire Group,
    Inc.(1)+                                                                                                                                                                                                                                              
|        | 10 | .14                 |  | International Wire Group, Inc. Key Employee Retention Plan.(2)*                                                                                                                                                                                                                                                                                                                       

87



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##### Table of Contents



|        |    |                     |  |                                                                                                                                                                                                                                                                                                                                                                                                                   
|------- | -- | ------------------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |    |                    
|No.     |    | Exhibit Description
|        |    |                    
|        | 10 | .15                 |  | International Wire Group, Inc. Insulated Wire Division Retention
    Plan(1)*                                                                                                                                                                                                                                                                                                                                     
|        | 10 | .16                 |  | Monitoring and Oversight Agreement, dated June 12, 1995,
    among International Wire Holding Company, International Wire
    Group, Inc. and Hicks, Muse & Co. Partners, L.P.(6)                                                                                                                                                                                                                                 
|        | 10 | .17                 |  | Consulting Agreement, dated November 15, 2004, between
    International Wire Group, Inc. and Whiterock Affiliates LLC(1)*                                                                                                                                                                                                                                                                                        
|        | 10 | .18                 |  | Compensation for William Lane Pennington(1)*                                                                                                                                                                                                                                                                                                                                                                      
|        | 10 | .19                 |  | Nonqualified Stock Option Agreement, dated August 1, 2005,
    between International Wire Group, Inc. and William Lane
    Pennington.(10)*                                                                                                                                                                                                                                                                       
|        | 10 | .20                 |  | Form of Indemnification Agreement(11)                                                                                                                                                                                                                                                                                                                                                                             
|        | 10 | .21                 |  | Asset Purchase Agreement, dated November 30, 2005, among
    International Wire Group, Inc., a Delaware corporation, Wire
    Technologies, Inc., an Indiana corporation, and Copperfield,
    LLC., a Minnesota limited liability company. (12)                                                                                                                                                                  
|        | 10 | .22                 |  | Amendment No. 1 to Loan and Security Agreement, dated as of
    March 31, 2006, among the borrowers and guarantors
    specified therein, the several lenders from time to time parties
    thereto and Wachovia Capital Finance Corporation (Central),
    formerly known as Congress Financial Corporation (Central).(14)                                                                                       
|        | 10 | .23                 |  | Amendment No. 1 to Loan and Security Agreement, dated as of
    March 31, 2006, among the borrowers and guarantors
    specified therein, the several lenders from time to time parties
    thereto and Silver Point Finance, LLC.(14)                                                                                                                                                                            
|        | 10 | .24                 |  | Amendment No. 1 to Intercreditor Agreement, dated as of
    March 31, 2006, by and between Wachovia Financial
    Corporation (CENTRAL), in its capacity as agent pursuant to the
    working capital loan and security agreement for the lenders who
    are party from time to time thereto, and Silver Point Finance,
    LLC, in its capacity as collateral agent pursuant to the term
    loan agreement.(14)
|        | 10 | .25                 |  | Supplement No. 1 to the Indenture, dated as of
    March 31, 2006, among International Wire Group, Inc.,
    the guarantors party thereto, and BNY Midwest Trust Company, as
    Trustee.(14)                                                                                                                                                                                                                     
|        | 10 | .26                 |  | Supplement No. 1 to the Collateral Agreement, dated as of
    March 31, 2006, among International Wire Group, Inc.,
    the subsidiaries of International Wire Group, Inc.
    identified therein, and BNY Midwest Trust Company, as collateral
    agent.(14)                                                                                                                                                    
|        | 10 | .27                 |  | Letter agreement, dated April 4, 2006, between
    International Wire Group, Inc. and William Lane
    Pennington.(14)                                                                                                                                                                                                                                                                                            
|        | 21 | .1                  |  | Subsidiaries of International Wire Group, Inc.                                                                                                                                                                                                                                                                                                                                                                    
|        | 31 | .1                  |  | Certification of Principal Executive Officer Required by
    Rule 13a-14(a) of the Securities Exchange Act of 1934, as
    amended.                                                                                                                                                                                                                                                                               
|        | 31 | .2                  |  | Certification of Principal Financial Officer Required by
    Rule 13a-14(a) of the Securities Exchange Act of 1934, as
    amended.                                                                                                                                                                                                                                                                               
|        | 32 | .1                  |  | Certification of Principal Executive Officer Required by
    Rule 13a-14(b) of the Securities Exchange Act of 1934, as
    amended, and 18 U.S.C. Section 1350, as adopted
    pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                         
|        | 32 | .2                  |  | Certification of Principal Financial Officer Required by
    Rule 13a-14(b) of the Securities Exchange Act of 1934, as
    amended, and 18 U.S.C. Section 1350, as adopted
    pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                         






| |     |                                                                                                                                                         
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------
| | (1) | Incorporated by reference to the Registration Statement on
    Amendment No. 1 to
    Form S-1 of
    International Wire Group, Inc. filed May 10, 2005.
|
| | (2) | Incorporated by reference to the Registration Statement on
    Form S-1 of
    International Wire Group, Inc., filed November 23, 2004.                 

88