Table of Contents

Index to Financial Statements

| x | Annual      report pursuant to Section 13 or 15(d) of the Securities Exchange Act      of 1934for the fiscal year ended December 31,      2008, |
|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

|  ̈ | Transition      report pursuant to Section 13 or 15(d) of the Securities Exchange Act      of 1934for the transition period from                   to                   . |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                                                   |   |                                   |
|------------------------------------------------------------------------|--------|----------------------------------------|
| Delaware                                                               |   | 63-0970812                             |
| (State      of Incorporation)                                          |   | (IRS      Employer Identification No.) |
|                                                                   |   |
| 200      Clinton Avenue West, 10 th      FloorHuntsville,      Alabama |   | 35801                                  |
| (Address      of principal executive offices)                          |   | (Zip      Code)                        |

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|                                             |   |                                         |
|--------------------------------------------------|--------|----------------------------------------------|
| Large      accelerated filer    ̈  |   | Accelerated      filer    ̈    |
| Non-accelerated      filer    ̈    |   | Smaller      reporting company   x |
| (Do      not check if smaller reporting company) |   |                                         |

|                               |   |                                 |
|------------------------------------|--------|--------------------------------------|
| Class                              |   | Outstanding      as of June 10, 2009 |
| Common      Stock, $0.01 par value |   | 40,623,736      Shares               |

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| Item 8. | Financial      Statements |
|--------------|---------------------------|

|                                                                                                                    |         |   |
|-------------------------------------------------------------------------------------------------------------------------|--------------|--------|
|                                                                                                                    |    | Page   |
| Consolidated Statements of Operations—For      the years ended December 31, 2008 and 2007                    |    | 48     |
| Consolidated Balance Sheets—December 31, 2008 and      2007                                                       |    | 49     |
| Consolidated Statements of Stockholders’      Equity—For the years ended December 31, 2008 and    2007 |    | 50     |
| Consolidated Statements of Cash Flows—For the years      ended December 31, 2008 and 2007                    |    | 51     |
| Notes to Consolidated Financial    Statements                                                                           |    | 52     |
| Report of Independent Registered Public      Accounting Firm                                                            |    | 99     |

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Table of Contents

Index to Financial Statements

Wolverine Tube,Inc. and Subsidiaries 

Consolidated Statements of Operations

|                                                                                                                     |              |                                   |         |        |        |        |                     |        |
|---------------------------------------------------------------------------------------------------------------------|--------------|-----------------------------------|---------|--------|--------|--------|---------------------|--------|
|                                                                                                                |    | Year ended      December 31, |    |
| (In thousands except per share      amounts)                                                                        |    | 2008                              |    |   | 2007   |   |
| Net sales                                                                                                      |    | $                                 | 815,801 |   |   | $      | 1,011,019           |   |
| Cost of goodssold                                                                                              |    |                              | 788,930 |   |   |   | 960,817             |   |
|                                                                                                                     |    |                              |    |   |   |   |                |   |
| Gross profit                                                                                                   |    |                              | 26,871  |   |   |   | 50,202              |   |
| Selling, general and      administrative expenses                                                              |    |                              | 26,716  |   |   |   | 30,428              |   |
| Net (gain) on      divestitures                                                                                |    |                              | (26,348 | )      |   |   | —   |   |
| Advisory fees and      expenses                                                                                |    |                              | 984     |   |   |   | 6,014               |   |
| Goodwill      impairment                                                                                       |    |                              | 46,560  |   |   |   | —   |   |
| Restructuring and impairment      charges                                                                      |    |                              | 5,820   |   |   |   | 75,097              |   |
|                                                                                                                     |    |                              |    |   |   |   |                |   |
| Operating loss                                                                                                 |    |                              | (26,861 | )      |   |   | (61,337             | )      |
| Other (income)      expense:                                                                                   |    |                                   |         |        |   |        |                     |        |
| Interest expense,      net                                                                                     |    |                              | 17,356  |   |   |   | 21,325              |   |
| Amortization      expense                                                                                      |    |                              | 3,054   |   |   |   | 2,491               |   |
| Loss on sale of      receivables                                                                               |    |                              | 484     |   |   |   | 2,531               |   |
| Embedded derivatives mark to      fair value                                                                   |    |                              | (3      | )      |   |   | (15,755             | )      |
| Other, net                                                                                                     |    |                              | 604     |   |   |   | 1,239               |   |
|                                                                                                                     |    |                              |    |   |   |   |                |   |
| Loss from continuing      operations before minority interest and income taxes                                 |    |                              | (48,356 | )      |   |   | (73,168             | )      |
| Minority interest                                                                                              |    |                              | 541     |   |   |   | —   |   |
| Equity in earnings of      unconsolidated subsidiary                                                           |    |                              | (332    | )      |   |   | —   |   |
| Income taxexpense                                                                                              |    |                              | 677     |   |   |   | 3,476               |   |
|                                                                                                                     |    |                              |    |   |   |   |                |   |
| Net loss from continuing      operations                                                                       |    |                              | (49,242 | )      |   |   | (76,644             | )      |
| Income (loss) from      discontinued operations, net of taxes                                                  |    |                              | 769     |   |   |   | (21,583             | )      |
|                                                                                                                     |    |                              |    |   |   |   |                |   |
| Net loss                                                                                                       |    |                              | (48,473 | )      |   |   | (98,227             | )      |
| Less: Accretion of convertible      preferred stock and beneficial conversion feature conversion      feature  |    |                              | 5,021   |   |   |   | 4,618               |   |
| Preferred stock      dividends                                                                                 |    |                              | 6,810   |   |   |   | 13,284              |   |
|                                                                                                                     |    |                              |    |   |   |   |                |   |
| Net loss applicable to common      shares                                                                      |    | $                                 | (60,304 | )      |   | $      | (116,129            | )      |
|                                                                                                                     |    |                              |    |   |   |   |                |   |
|                                                                                                                     |              |                                   |
| Income(Loss) per common      share—Basic                                                                 |    |                                   |         |        |   |        |                     |        |
| Continuing      operations                                                                                     |    | $                                 | (1.50   | )      |   | $      | (4.97               | )      |
| Discontinued      operations                                                                                   |    |                              | 0.01    |   |   |   | (1.13               | )      |
|                                                                                                                     |    |                              |    |   |   |   |                |   |
| Net loss per common      share                                                                                 |    | $                                 | (1.49   | )      |   | $      | (6.10               | )      |
|                                                                                                                     |    |                              |    |   |   |   |                |   |
|                                                                                                                     |              |                                   |
| Income(Loss) per common      share—Diluted                                                               |    |                                   |         |        |   |        |                     |        |
| Continuing      operations                                                                                     |    | $                                 | (1.50   | )      |   | $      | (4.97               | )      |
| Discontinued      operations                                                                                   |    |                              | 0.01    |   |   |   | (1.13               | )      |
|                                                                                                                     |    |                              |    |   |   |   |                |   |
| Net loss per common      share                                                                                 |    | $                                 | (1.49   | )      |   | $      | (6.10               | )      |
|                                                                                                                     |    |                              |    |   |   |   |                |   |
|                                                                                                                     |              |                                   |
| Shares used in computing      income (loss) per share:                                                         |    |                                   |         |        |   |        |                     |        |
| Basic                                                                                                          |    |                              | 40,624  |   |   |   | 19,038              |   |
| Diluted                                                                                                        |    |                              | 40,624  |   |   |   | 19,038              |   |

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Table of Contents

Index to Financial Statements

Wolverine Tube,Inc. and Subsidiaries 

ConsolidatedBalance Sheets 

|                                                                                                                                                                                                                      |              |                   |                     |        |        |        |                     |        |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------|-------------------|---------------------|--------|--------|--------|---------------------|--------|
|                                                                                                                                                                                                                 |    | December 31, |                |
| (In thousands except share and      per share amounts)                                                                                                                                                               |    | 2008              |                |   | 2007   |   |
| Assets                                                                                                                                                                                                          |    |                   |                     |        |   |        |                     |        |
| Current assets                                                                                                                                                                                                  |    |                   |                     |        |   |        |                     |        |
| Cash and cash      equivalents                                                                                                                                                                                  |    | $                 | 33,537              |   |   | $      | 63,303              |   |
| Restricted cash                                                                                                                                                                                                 |    |              | 37,738              |   |   |   | 2,126               |   |
| Accounts receivable, net of      allowance for doubtful accounts of $392 thousand in 2008 and $613 thousand      in 2007                                                                                        |    |              | 38,626              |   |   |   | 108,398             |   |
| Inventories                                                                                                                                                                                                     |    |              | 53,284              |   |   |   | 104,742             |   |
| Assets held for      sale                                                                                                                                                                                       |    |              | 3,680               |   |   |   | 43,001              |   |
| Derivative assets                                                                                                                                                                                               |    |              | 291                 |   |   |   | 975                 |   |
| Prepaid expenses and other      assets                                                                                                                                                                          |    |              | 5,380               |   |   |   | 11,561              |   |
|                                                                                                                                                                                                                      |    |              |                |   |   |   |                |   |
| Total current      assets                                                                                                                                                                                       |    |              | 172,536             |   |   |   | 334,106             |   |
| Property, plant and equipment,      net                                                                                                                                                                         |    |              | 52,004              |   |   |   | 69,078              |   |
| Goodwill                                                                                                                                                                                                        |    |              | —   |   |   |   | 46,703              |   |
| Intangible assets and deferred      charges, net                                                                                                                                                                |    |              | 2,634               |   |   |   | 4,284               |   |
| Notes receivable                                                                                                                                                                                                |    |              | 585                 |   |   |   | 815                 |   |
| Investment in unconsolidated      subsidiary                                                                                                                                                                    |    |              | 9,373               |   |   |   | —   |   |
|                                                                                                                                                                                                                      |    |              |                |   |   |   |                |   |
| Total assets                                                                                                                                                                                                    |    | $                 | 237,132             |   |   | $      | 454,986             |   |
|                                                                                                                                                                                                                      |    |              |                |   |   |   |                |   |
| Liabilities and Stockholders’      Equity (Deficit)                                                                                                                                                       |    |                   |                     |        |   |        |                     |        |
| Current      liabilities                                                                                                                                                                                        |    |                   |                     |        |   |        |                     |        |
| Accounts payable                                                                                                                                                                                                |    | $                 | 34,713              |   |   | $      | 55,861              |   |
| Accrued      liabilities                                                                                                                                                                                        |    |              | 19,035              |   |   |   | 26,072              |   |
| Derivative      liabilities                                                                                                                                                                                     |    |              | 5,415               |   |   |   | 925                 |   |
| Deferred income      taxes                                                                                                                                                                                      |    |              | 1,601               |   |   |   | 677                 |   |
| Short-term      borrowings                                                                                                                                                                                      |    |              | 19,759              |   |   |   | 90,939              |   |
|                                                                                                                                                                                                                      |              |                   |
| Liabilities of discontinued      operations                                                                                                                                                                     |    |              | —   |   |   |   | 1,853               |   |
|                                                                                                                                                                                                                      |    |              |                |   |   |   |                |   |
| Total current      liabilities                                                                                                                                                                                  |    |              | 80,523              |   |   |   | 176,327             |   |
| Long-term debt                                                                                                                                                                                                  |    |              | 117,911             |   |   |   | 146,021             |   |
| Pension      liabilities                                                                                                                                                                                        |    |              | 45,552              |   |   |   | 17,616              |   |
| Postretirement benefits      obligation                                                                                                                                                                         |    |              | 4,662               |   |   |   | 18,776              |   |
| Accrued environmental      remediation                                                                                                                                                                          |    |              | 9,628               |   |   |   | 21,458              |   |
| Deferred income taxes,      non-current                                                                                                                                                                         |    |              | —   |   |   |   | 3,064               |   |
| Other liabilities                                                                                                                                                                                               |    |              | 2,981               |   |   |   | 112                 |   |
|                                                                                                                                                                                                                      |    |              |                |   |   |   |                |   |
| Total liabilities                                                                                                                                                                                               |    |              | 261,257             |   |   |   | 383,374             |   |
| Series A Convertible Preferred      Stock, par value $1,000 per share, 90,000 shares authorized; 54,494 and      50,000 shares issued and outstanding as of December 31, 2008 and      2007, respectively  |    |              | 13,908              |   |   |   | 4,393               |   |
| Series B Convertible Preferred      Stock, par value $1,000 per share, 25,000 shares authorized; 10,000 and no      shares issued and outstanding as of December 31, 2008 and 2007,      respectively      |    |              | 9,700               |   |   |   | —   |   |
| Stockholders’ equity      (deficit)                                                                                                                                                                       |    |                   |                     |        |   |        |                     |        |
| Common stock, par value $0.01      per share; 180,000,000 shares authorized; 40,623,736 shares issued and      outstanding as of December 31, 2008 and 2007                                      |    |              | 406                 |   |   |   | 406                 |   |
| Additional paid-in      capital                                                                                                                                                                                 |    |              | 142,588             |   |   |   | 146,815             |   |
| Accumulated      deficit                                                                                                                                                                                        |    |              | (151,281            | )      |   |   | (95,998             | )      |
| Accumulated other      comprehensive income (loss), net                                                                                                                                                         |    |              | (39,446             | )      |   |   | 15,996              |   |
|                                                                                                                                                                                                                      |    |              |                |   |   |   |                |   |
| Total stockholders’ equity      (deficit)                                                                                                                                                                 |    |              | (47,733             | )      |   |   | 67,219              |   |
|                                                                                                                                                                                                                      |    |              |                |   |   |   |                |   |
| Total liabilities, convertible      preferred stock and stockholders’ equity (deficit)                                                                                                                    |    | $                 | 237,132             |   |   | $      | 454,986             |   |
|                                                                                                                                                                                                                      |    |              |                |   |   |   |                |   |

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Table of Contents

Index to Financial Statements

Wolverine Tube,Inc. and Subsidiaries 

Consolidated Statements of Stockholders’ Equity

|                                                                           |              |                               |              |                          |                     |              |                                      |                     |        |                                                       |        |                     |                                |        |        |                     |        |        |        |          |        |
|---------------------------------------------------------------------------|--------------|-------------------------------|--------------|--------------------------|---------------------|--------------|--------------------------------------|---------------------|--------|-------------------------------------------------------|--------|---------------------|--------------------------------|--------|--------|---------------------|--------|--------|--------|----------|--------|
|                                                                      |    |   CommonStock  |    | AdditionalPaid-InCapital |                |         | RetainedEarnings(Accumulateddeficit) |                |   | Accumulated OtherComprehensive Income(Loss) |   |                | TotalStockholders’Equity |   |
| (In thousands except number of      shares)                               |    | Shares                        |    | Amount                   |           |         |                                 |                |
| Balance at December 31,      2006                               |    | 15,090,843                    |    | $                        | 151                 |    | $                                    | 91,904              |   |                                                  | $      | 5,896               |                           |   | $      | (9,389              | )      |   | $      | 88,562   |   |
|                                                                           |    |                          |    |                     |                |    |                                 |                |   |                                                  |   |                |                           |   |   |                |   |   |   |     |   |
| Net loss from      operations                                        |    | —             |    |                     | —   |    |                                 | —   |   |                                                  |   | (98,227             | )                              |   |   | —   |   |   |   | (98,227  | )      |
| Translation      adjustments                                         |    | —             |    |                     | —   |    |                                 | —   |   |                                                  |   | (1                  | )                              |   |   | 11,432              |   |   |   | 11,431   |   |
| Change in fair value of      derivatives                             |    | —             |    |                     | —   |    |                                 | —   |   |                                                  |   | —   |                           |   |   | 2,906               |   |   |   | 2,906    |   |
| Net pension actuarial      gain                                      |    | —             |    |                     | —   |    |                                 | —   |   |                                                  |   | —   |                           |   |   | 8,276               |   |   |   | 8,276    |   |
| Amortization of net pension      actuarial income                    |    | —             |    |                     | —   |    |                                 | —   |   |                                                  |   | —   |                           |   |   | 727                 |   |   |   | 727      |   |
| Pension curtailment      gain                                        |    | —             |    |                     | —   |    |                                 | —   |   |                                                  |   | —   |                           |   |   | 378                 |   |   |   | 378      |   |
| Termination of Montreal      pension and post retirement benefits    |    | —             |    |                     | —   |    |                                 | —   |   |                                                  |   | —   |                           |   |   | 1,542               |   |   |   | 1,542    |   |
|                                                                           |    |                               |    |                          |                     |    |                                      |                     |        |                                                  |        |                     |                                |   |        |                     |        |   |   |     |   |
| Total comprehensive      loss                                        |    | —             |    |                     | —   |    |                                 | —   |   |                                                  |   | —   |                           |   |   | —   |   |   |   | (72,967  | )      |
| Accrued dividends on preferred      stock                            |    | —             |    |                     | —   |    |                                 | —   |   |                                                  |   | (3,666              | )                              |   |   | —   |   |   |   | (3,666   | )      |
| Stockcompensation                                                    |    | —             |    |                     | —   |    |                                 | 2,347               |   |                                                  |   | —   |                           |   |   | —   |   |   |   | 2,347    |   |
| Amortization and vesting of      restricted stock                    |    | 88,301                        |    |                     | —   |    |                                 | 282                 |   |                                                  |   | —   |                           |   |   | —   |   |   |   | 282      |   |
| Rights offering,      net                                            |    | 25,444,592                    |    |                     | 255                 |    |                                 | 27,255              |   |                                                  |   | —   |                           |   |   | —   |   |   |   | 27,510   |   |
| Preferred stock offering,      net                                   |    | —             |    |                     | —   |    |                                 | 26,426              |   |                                                  |   | —   |                           |   |   | —   |   |   |   | 26,426   |   |
| Accretion of preferred stock      and beneficial conversion feature  |    | —             |    |                     | —   |    |                                 | (4,618              | )      |                                                  |   | —   |                           |   |   | —   |   |   |   | (4,618   | )      |
| Beneficial conversion feature,      net                              |    | —             |    |                     | —   |    |                                 | 12,837              |   |                                                  |   | —   |                           |   |   | —   |   |   |   | 12,837   |   |
| Foreign currency      adjustment                                     |    | —             |    |                     | —   |    |                                 | —   |   |                                                  |   | —   |                           |   |   | 124                 |   |   |   | 124      |   |
| Deemed dividend                                                      |    | —             |    |                     | —   |    |                                 | (9,618              | )      |                                                  |   | —   |                           |   |   | —   |   |   |   | (9,618   | )      |
|                                                                           |    |                          |    |                     |                |    |                                 |                |   |                                                  |   |                |                           |   |   |                |   |   |   |     |   |
| Balance at December 31,      2007                               |    | 40,623,736                    |    | $                        | 406                 |    | $                                    | 146,815             |   |                                                  | $      | (95,998             | )                              |   | $      | 15,996              |   |   | $      | 67,219   |   |
|                                                                           |    |                          |    |                     |                |    |                                 |                |   |                                                  |   |                |                           |   |   |                |   |   |   |     |   |
| Net loss from      operations                                        |    | —             |    |                     | —   |    |                                 | —   |   |                                                  |   | (48,473             | )                              |   |   | —   |   |   |   | (48,473  | )      |
| Translation      adjustments                                         |    | —             |    |                     | —   |    |                                 | —   |   |                                                  |   | —   |                           |   |   | (15,523             | )      |   |   | (15,523  | )      |
| Change in fair value of      derivatives                             |    | —             |    |                     | —   |    |                                 | —   |   |                                                  |   | —   |                           |   |   | (4,627              | )      |   |   | (4,627   | )      |
| Net pension actuarial      loss                                      |    | —             |    |                     | —   |    |                                 | —   |   |                                                  |   | —   |                           |   |   | (35,292             | )      |   |   | (35,292  | )      |
|                                                                           |    |                               |    |                          |                     |    |                                      |                     |        |                                                  |        |                     |                                |   |        |                     |        |   |   |     |   |
| Total comprehensive      loss                                        |    | —             |    |                     | —   |    |                                 | —   |   |                                                  |   | —   |                           |   |   | —   |   |   |   | (103,915 | )      |
| Accrued dividends on preferred      stock                            |    | —             |    |                     | —   |    |                                 | —   |   |                                                  |   | (6,810              | )                              |   |   | —   |   |   |   | (6,810   | )      |
| Stockcompensation                                                    |    | —             |    |                     | —   |    |                                 | 792                 |   |                                                  |   | —   |                           |   |   | —   |   |   |   | 792      |   |
| Amortization and vesting of      restricted stock                    |    | —             |    |                     | —   |    |                                 | 2                   |   |                                                  |   | —   |                           |   |   | —   |   |   |   | 2        |   |
| Accretion of preferred      stock                                    |    | —             |    |                     | —   |    |                                 | (5,021              | )      |                                                  |   | —   |                           |   |   | —   |   |   |   | (5,021   | )      |
|                                                                           |    |                          |    |                     |                |    |                                 |                |   |                                                  |   |                |                           |   |   |                |   |   |   |     |   |
| Balance at December 31,      2008                               |    | 40,623,736                    |    | $                        | 406                 |    | $                                    | 142,588             |   |                                                  | $      | (151,281            | )                              |   | $      | (39,446             | )      |   | $      | (47,733  | )      |
|                                                                           |    |                          |    |                     |                |    |                                 |                |   |                                                  |   |                |                           |   |   |                |   |   |   |     |   |

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Table of Contents

Index to Financial Statements

Wolverine Tube,Inc. and Subsidiaries 

ConsolidatedStatements of Cash Flows 

|                                                                                              |              |                                        |                     |        |        |        |                     |        |
|----------------------------------------------------------------------------------------------|--------------|----------------------------------------|---------------------|--------|--------|--------|---------------------|--------|
|                                                                                         |    | Year ended December 31, |                |
| (In      thousands)                                                                          |    | 2008                                   |                |   | 2007   |   |
| Operating      Activities                                                               |    |                                        |                     |        |   |        |                     |        |
| Loss from continuing      operations                                                    |    | $                                      | (49,242             | )      |   | $      | (76,644             | )      |
| Income (loss) from      discontinued operations                                         |    |                                   | 769                 |   |   |   | (21,583             | )      |
|                                                                                              |    |                                   |                |   |   |   |                |   |
| Net loss                                                                                |    |                                   | (48,473             | )      |   |   | (98,227             | )      |
| Adjustments to reconcile net      income to net cash used in operating activities:      |    |                                        |                     |        |   |        |                     |        |
| Depreciation                                                                            |    |                                   | 7,055               |   |   |   | 9,528               |   |
| Amortization                                                                            |    |                                   | 3,179               |   |   |   | 2,586               |   |
| Deferred income      taxes                                                              |    |                                   | (1,949              | )      |   |   | 2,767               |   |
| Gain on early extinguishment      of debt                                               |    |                                   | (858                | )      |   |   | —   |   |
| Minority interest in Chinese      subsidiary                                            |    |                                   | 541                 |   |   |   | —   |   |
| Equity in earnings of      unconsolidated subsidiary                                    |    |                                   | (332                | )      |   |   | —   |   |
| Impairment of assets held for      sale and goodwill                                    |    |                                   | 46,950              |   |   |   | 48,983              |   |
| Loss on disposal of fixed      assets                                                   |    |                                   | —   |   |   |   | 46                  |   |
| Non-cash environmental,      restructuring and other charges                            |    |                                   | (559                | )      |   |   | 10,577              |   |
| Change in fair value of      embedded derivative                                        |    |                                   | —   |   |   |   | (15,755             | )      |
| Stock compensation      expense                                                         |    |                                   | 847                 |   |   |   | 2,629               |   |
| Net gain on      divestitures                                                           |    |                                   | (26,348             | )      |   |   | —   |   |
| Changes in operating assets      and liabilities:                                       |    |                                        |                     |        |   |        |                     |        |
| Accounts receivable,      net                                                           |    |                                   | 25,769              |   |   |   | (1,575              | )      |
| Purchase of accounts      receivable                                                    |    |                                   | —   |   |   |   | (43,882             | )      |
| Inventories                                                                             |    |                                   | 33,712              |   |   |   | 1,399               |   |
| Income taxes                                                                            |    |                                   | (286                | )      |   |   | (1,303              | )      |
| Prepaid expenses and      other                                                         |    |                                   | 7,899               |   |   |   | (2,579              | )      |
| Accounts payable                                                                        |    |                                   | (7,761              | )      |   |   | 17,094              |   |
| Accrued liabilities, including      pension, postretirement benefit, and environmental  |    |                                   | (20,873             | )      |   |   | 11,327              |   |
|                                                                                              |    |                                   |                |   |   |   |                |   |
| Net cash provided by (used in)      continuing operating activities                     |    |                                   | 17,744              |   |   |   | (34,802             | )      |
| Net cash provided by (used in)      discontinued operating activities                   |    |                                   | (9,754              | )      |   |   | 11,588              |   |
|                                                                                              |    |                                   |                |   |   |   |                |   |
| Net cash provided by (used in)      operating activities                                |    |                                   | 7,990               |   |   |   | (23,214             | )      |
| Investing      Activities                                                               |    |                                        |                     |        |   |        |                     |        |
| Additions to property, plant,      and equipment                                        |    |                                   | (3,821              | )      |   |   | (2,708              | )      |
| Proceeds from sale of      assets                                                       |    |                                   | 6,440               |   |   |   | 375                 |   |
| Purchase of      patents                                                                |    |                                   | (368                | )      |   |   | (176                | )      |
| Investment      purchases                                                               |    |                                   | —   |   |   |   | (1,618              | )      |
| Proceeds from sale of interest      in Chinese subsidiary                               |    |                                   | 19,419              |   |   |   | —   |   |
| Change in restricted      cash                                                          |    |                                   | (35,612             | )      |   |   | 3,503               |   |
|                                                                                              |    |                                   |                |   |   |   |                |   |
| Net cash used in continuing      investing activities                                   |    |                                   | (13,942             | )      |   |   | (624                | )      |
| Net cash provided by (used in)      discontinued investing activities                   |    |                                   | 64,796              |   |   |   | (1,309              | )      |
|                                                                                              |    |                                   |                |   |   |   |                |   |
| Net cash provided by (used in)      investing activities                                |    |                                   | 50,854              |   |   |   | (1,933              | )      |
| Financing      Activities                                                               |    |                                        |                     |        |   |        |                     |        |
| Financing fees and expenses      paid                                                   |    |                                   | (1,895              | )      |   |   | (110                | )      |
| Payments under revolving      credit facilities and other debt                          |    |                                   | (968                | )      |   |   | (3,663              | )      |
| Borrowings from revolving      credit facilities and other debt                         |    |                                   | —   |   |   |   | 230                 |   |
| Issuance of preferred      stock                                                        |    |                                   | 14,194              |   |   |   | 45,179              |   |
| Proceeds from common stock      rights offering, net of costs                           |    |                                   | —   |   |   |   | 27,510              |   |
| Purchase or repayment of      senior notes                                              |    |                                   | (97,661             | )      |   |   | —   |   |
| Other financing      activities                                                         |    |                                   | —   |   |   |   | 77                  |   |
| Payment of      dividends                                                               |    |                                   | (2,042              | )      |   |   | (2,958              | )      |
|                                                                                              |    |                                   |                |   |   |   |                |   |
| Net cash provided by (used in)      continuing financing activities                     |    |                                   | (88,372             | )      |   |   | 66,265              |   |
| Net cash provided by (used in)      discontinued financing activities                   |    |                                   | 1                   |   |   |   | (24                 | )      |
|                                                                                              |    |                                   |                |   |   |   |                |   |
| Net cash provided by (used in)      financing activities                                |    |                                   | (88,371             | )      |   |   | 66,241              |   |
| Effect of exchange rate on      cash and equivalents                                    |    |                                   | (239                | )      |   |   | 4,855               |   |
|                                                                                              |    |                                   |                |   |   |   |                |   |
| Net increase (decrease) in      cash and equivalents                                    |    |                                   | (29,766             | )      |   |   | 45,949              |   |
| Cash and equivalents at      beginning of year                                          |    |                                   | 63,303              |   |   |   | 17,354              |   |
|                                                                                              |    |                                   |                |   |   |   |                |   |
| Cash and equivalents at end of      year                                                |    | $                                      | 33,537              |   |   | $      | 63,303              |   |
|                                                                                              |    |                                   |                |   |   |   |                |   |
|                                                                                              |              |                                        |
| Supplemental disclosure of      cash flow:                                              |    |                                        |                     |        |   |        |                     |        |
| Interest paid                                                                           |    | $                                      | 20,836              |   |   | $      | 21,874              |   |
| Income taxes paid,      net                                                             |    | $                                      | 2,230               |   |   | $      | 2,736               |   |

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Index to Financial Statements

Wolverine Tube,Inc. and Subsidiaries 

Notes to ConsolidatedFinancial Statements 

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Index to Financial Statements

|                         |              |        |              |              |        |         |
|-------------------------|--------------|--------|--------------|--------------|--------|---------|
| (In      thousands)     |    | 2008   |    | 2007         |
| Finished products  |    | $      | 27,990       |    | $      | 47,620  |
| Work-in-process    |    |   | 10,646       |    |   | 28,726  |
| Raw materials      |    |   | 9,262        |    |   | 16,768  |
| Supplies           |    |   | 5,386        |    |   | 11,628  |
|                         |    |   |         |    |   |    |
| Totals             |    | $      | 53,284       |    | $      | 104,742 |
|                         |    |   |         |    |   |    |

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Index to Financial Statements

|   | • |   | Level 1      – Observable inputs – quoted prices in active markets for identical assets      and liabilities. For the Company, level 1 financial assets and liabilities      consist of commodity derivative contracts;   |
|--------|---------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • |   | Level 2      – Observable inputs other than the quoted prices in active markets for      identical assets and liabilities – includes quoted prices for similar      instruments, quoted prices for identical or similar instruments in      inactive markets, and amounts derived from valuation models where all      significant inputs are observable in active markets; and   |
|--------|---------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • |   | Level 3      – Unobservable inputs – includes amounts derived from valuation models      where one or more significant inputs are unobservable and require us to      develop relevant assumptions.   |
|--------|---------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                             |              |              |        |        |              |                     |              |                     |              |        |      |        |
|-------------------------------------------------------------|--------------|--------------|--------|--------|--------------|---------------------|--------------|---------------------|--------------|--------|------|--------|
| (In      millions)                                          |    | Level 1 |   |   | Level 2 |           | Level 3 |           | Total        |   |
| Assets:                                                |    |              |        |        |         |                     |    |                     |    |        |      |        |
|                                                             |              |              |        |        |
| Derivatives (recorded in      derivative assets)       |    | $            | 0.3    |   |         | —   |    | —   |    | $      | 0.3  |   |
| Liabilities:                                           |    |              |        |        |         |                     |    |                     |    |        |      |        |
|                                                             |              |              |        |        |
| Derivatives (recorded in      derivative liabilities)  |    | $            | (5.4   | )      |         | —   |    | —   |    | $      | (5.4 | )      |

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Index to Financial Statements

|                                                                |              |                     |                     |                 |              |                     |              |                 |         |              |   |         |
|----------------------------------------------------------------|--------------|---------------------|---------------------|-----------------|--------------|---------------------|--------------|-----------------|---------|--------------|---|---------|
|                                                           |    | 2008                |           | 2007            |
| (In      thousands)                                            |    | Carrying value |           | Fair Value |    | Carrying value |    | Fair value |
| Cash and cash      equivalents                            |    | $                   | 33,537              |       | $            | 33,537              |    | $               | 63,303  |    | $ | 63,303  |
|                                                                |              |                     |                     |                 |
| Restricted cash                                           |    | $                   | 37,738              |       | $            | 37,738              |    | $               | 2,126   |    | $ | 2,126   |
|                                                                |              |                     |                     |                 |
| Accounts      receivable                                  |    | $                   | 38,626              |       | $            | 38,626              |    | $               | 108,398 |    | $ | 108,398 |
|                                                                |              |                     |                     |                 |
| Accounts payable                                          |    | $                   | 34,713              |       | $            | 34,713              |    | $               | 55,861  |    | $ | 55,861  |
|                                                                |              |                     |                     |                 |
| Investments held in rabbi      trust (trading portfolio)  |    | $                   | —   |       | $            | —   |    | $               | 1,618   |    | $ | 1,618   |
|                                                                |              |                     |                     |                 |
| Senior Notes                                              |    | $                   | 137,656             |       | $            | 115,629             |    | $               | 235,919 |    | $ | 224,889 |
|                                                                |              |                     |                     |                 |
| Other debt                                                |    | $                   | 14                  |       | $            | 14                  |    | $               | 1,041   |    | $ | 1,041   |
|                                                                |              |                     |                     |                 |
| Foreign currency exchange      contracts                  |    | $                   | —   |       | $            | —   |    | $               | 4       |    | $ | 4       |
|                                                                |              |                     |                     |                 |
| Derivative assets                                         |    | $                   | 291                 |       | $            | 291                 |    | $               | 975     |    | $ | 975     |
|                                                                |              |                     |                     |                 |
| Derivative      liabilities                               |    | $                   | 5,415               |       | $            | 5,415               |    | $               | 925     |    | $ | 925     |

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| 3. | Correction of      Prior Period Errors |
|----|----------------------------------------|

|                         |              |                  |              |            |        |        |                        |        |        |                 |
|-------------------------|--------------|------------------|--------------|------------|--------|--------|------------------------|--------|--------|-----------------|
| (In      thousands)     |    | As reported |    | Adjustment |   |   | DiscontinuedOperations |   |   | As revised |
| Cost of goodssold  |    | 1,165,083        |    | 2,096      |   |   | (206,362               | )      |   | 960,817         |
|                         |              |                  |              |            |
| Other, net         |    | 2,605            |    | (899       | )      |   | (467                   | )      |   | 1,239           |
|                         |              |                  |              |            |
| Net loss           |    | 97,030           |    | 1,197      |   |   | —      |   |   | 98,227          |

|                                                                                                                                                              |                                                              |                  |         |        |            |        |         |        |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------|------------------|---------|--------|------------|--------|---------|--------|
| (In      thousands)                                                                                                                                          |                                                    | As reported |    |   | As revised |   |
| Accounts receivable,      net                                                                                                                           |                                                    | $                | 107,375 |   |       | $      | 108,398 |   |
| Inventory*                                                                                                                                              |                                                    |             | 110,768 |   |       |   | 104,742 |   |
| Accumulated      deficit                                                                                                                                |                                                    | $                | (94,187 | )      |       | $      | (95,998 | )      |
| Accumulated other      comprehensive income, net of tax                                                                                                 |                                                    |             | 15,872  |   |       |   | 15,996  |   |
|  *       Includes      reclassification of $3.3 million of critical spares from inventory to      fixed assets  |            |

|                                                         |              |                                                                                   |         |        |            |        |        |                        |        |        |                                                                                  |        |        |        |         |        |
|---------------------------------------------------------|--------------|-----------------------------------------------------------------------------------|---------|--------|------------|--------|--------|------------------------|--------|--------|----------------------------------------------------------------------------------|--------|--------|--------|---------|--------|
| (In      thousands)                                     |    | For the twelvemonths      endedDecember 31, 2007(as reported) |    |   | Adjustment |   |   | Discontinuedoperations |   |   | For the twelvemonths      endedDecember 31, 2007(as revised) |   |
| Income (loss) from continuing      operations      |    | $                                                                                 | (71,673 | )      |       | $      | (1,197 | )                      |   | $      | (3,774                                                                           | )      |   | $      | (76,644 | )      |
| Net loss                                           |    |                                                                              | (97,030 | )      |       |   | (1,197 | )                      |   |   | —                                                                |   |   |   | (98,227 | )      |
|                                                         |              |                                                                                   |         |        |
| Changes in operating assets      and liabilities:  |    |                                                                                   |         |        |       |        |        |                        |   |        |                                                                                  |        |   |        |         |        |
| Accounts receivable,      net                      |    |                                                                              | (8,504  | )      |       |   | (1,023 | )                      |   |   | 7,952                                                                            |   |   |   | (1,575  | )      |
| Inventories                                        |    |                                                                              | (1,309  | )      |       |   | 1,168  |                   |   |   | 1,540                                                                            |   |   |   | 1,399   |   |

| 4. | Recapitalization      Plan |
|----|----------------------------|

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| 5. | Restricted      Cash |
|----|----------------------|

| 6. | Investment in      Unconsolidated Chinese Subsidiary |
|----|------------------------------------------------------|

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| 7. | Discontinued      Operations |
|----|------------------------------|

|                                                               |              |                                           |              |              |        |         |        |
|---------------------------------------------------------------|--------------|-------------------------------------------|--------------|--------------|--------|---------|--------|
|                                                          |    | Twelve months      endedDecember 31, |         |
| (In      thousands)                                           |    | 2008                                      |    | 2007         |   |
| Net sales                                                |    | $                                         | 138,691      |    | $      | 304,705 |   |
| Income (loss) before income      taxes                   |    |                                      | 859          |    |   | (16,543 | )      |
| Income taxes                                             |    |                                      | 90           |    |   | 5,040   |   |
|                                                               |    |                                      |         |    |   |    |   |
| Net income (loss)                                        |    | $                                         | 769          |    | $      | (21,583 | )      |
|                                                               |    |                                      |         |    |   |    |   |
|                                                               |              |                                           |
| Net income (loss) per common      share – Basic    |    | $                                         | 0.01         |    | $      | (1.13   | )      |
| Net income (loss) per common      share – Diluted  |    | $                                         | 0.01         |    | $      | (1.13   | )      |

| 8. | Prepaid Expenses      and Other |
|----|---------------------------------|

|                                  |              |        |                     |              |        |        |
|----------------------------------|--------------|--------|---------------------|--------------|--------|--------|
| (In      thousands)              |    | 2008   |           | 2007         |
| Prepaid expenses            |    | $      | 5,380               |    | $      | 9,491  |
| Prepaid raw      materials  |    |   | —   |    |   | 2,070  |
|                                  |    |   |                |    |   |   |
| Total                       |    | $      | 5,380               |    | $      | 11,561 |
|                                  |    |   |                |    |   |   |

| 9. | Derivatives |
|----|-------------|

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|                                                                                         |              |                                                          |        |        |        |        |      |        |
|-----------------------------------------------------------------------------------------|--------------|----------------------------------------------------------|--------|--------|--------|--------|------|--------|
|                                                                                    |    | For the Year Ended December 31, |   |
| (In      millions)                                                                      |    | 2008                                                     |   |   | 2007   |   |
| Gains (losses) arising from      ineffectiveness included in operations            |    | $                                                        | 0.3    |   |   | $      | (0.3 | )      |
| Gains (losses) reclassed from      other comprehensive income (OCI) to operations  |    | $                                                        | (0.4   | )      |   | $      | 1.1  |   |

|                                                                                                                              |              |                   |                    |        |        |        |                     |        |
|------------------------------------------------------------------------------------------------------------------------------|--------------|-------------------|--------------------|--------|--------|--------|---------------------|--------|
|                                                                                                                         |    | December 31, |               |
| (In      millions)                                                                                                           |    | 2008              |               |   | 2007   |   |
| Aggregate notional value of      derivatives outstanding                                                                |    | $                 | 11.9               |   |   | $      | 20.1                |   |
| Period through which      derivative positions currently exist                                                          |    |              | December 2009 |   |   |   | September 2008 |   |
| Losses in fair value of      derivatives                                                                                |    | $                 | (4.9               | )      |   | $      | (0.5                | )      |
| The change in fair value due      to the effect of a 10% adverse change in commodity prices to current fair      value  |    | $                 | (0.7               | )      |   | $      | (2.0                | )      |
| Deferred losses included in      OCI                                                                                    |    | $                 | (5.1               | )      |   | $      | (0.5                | )      |
| Losses included in OCI to be      recognized in the next 12 months                                                      |    | $                 | (5.1               | )      |   | $      | (0.5                | )      |
| Number of months over which      gain in OCI is to be recognized                                                        |    |              | 12                 |   |   |   | 9                   |   |

|                                                                       |              |                                                          |                     |        |        |        |      |        |
|-----------------------------------------------------------------------|--------------|----------------------------------------------------------|---------------------|--------|--------|--------|------|--------|
|                                                                  |    | For the Year Ended December 31, |                |
| (In      millions)                                                    |    | 2008                                                     |                |   | 2007   |   |
| Losses arising from      ineffectiveness included in operations  |    | $                                                        | —   |   |   | $      | (0.3 | )      |
| Gains (losses) reclassed from      OCI to operations             |    | $                                                        | (0.9                | )      |   | $      | 0.8  |   |

|                                                                                                                              |              |                   |                     |              |        |                 |        |
|------------------------------------------------------------------------------------------------------------------------------|--------------|-------------------|---------------------|--------------|--------|-----------------|--------|
|                                                                                                                         |    | December 31, |                |
| (In      millions)                                                                                                           |    | 2008              |           | 2007         |   |
| Aggregate notional value of      derivatives outstanding                                                                |    | $                 | —   |    | $      | 3.5             |   |
| Period through which      derivative positions currently exist                                                          |    |              | n/a                 |    |   | March 2008 |   |
| Losses, in fair value of      derivatives                                                                               |    | $                 | —   |    | $      | (0.1            | )      |
| The change in fair value due      to the effect of a 10% adverse change in commodity prices to current fair      value  |    | $                 | —   |    | $      | (0.3            | )      |
| Deferred gains included in      OCI                                                                                     |    | $                 | —   |    | $      | 0.1             |   |
| Gains included in OCI to be      recognized in the next 12 months                                                       |    | $                 | —   |    | $      | 0.1             |   |
| Number of months over which      gain in OCI is to be recognized                                                        |    |              | n/a                 |    |   | 3               |   |

|                                                                      |              |                                                          |              |              |   |     |
|----------------------------------------------------------------------|--------------|----------------------------------------------------------|--------------|--------------|---|-----|
|                                                                 |    | For the Year Ended December 31, |
| (In      millions)                                                   |    | 2008                                                     |    | 2007         |
| Gains arising from      ineffectiveness included in operations  |    | $                                                        | 0.4          |    | $ | 0.0 |

|                                                                                                                              |              |                   |                 |        |        |        |                 |        |
|------------------------------------------------------------------------------------------------------------------------------|--------------|-------------------|-----------------|--------|--------|--------|-----------------|--------|
|                                                                                                                         |    | December 31, |            |
| (In      millions)                                                                                                           |    | 2008              |            |   | 2007   |   |
| Aggregate notional value of      derivatives outstanding                                                                |    | $                 | 0.4             |   |   | $      | 10.3            |   |
| Period through which      derivative positions currently exist                                                          |    |              | March 2009 |   |   |   | March 2008 |   |
| Gains in fair value of      derivatives                                                                                 |    | $                 | 0.1             |   |   | $      | 0.3             |   |
| The change in fair value due      to the effect of a 10% adverse change in commodity prices to current fair      value  |    | $                 | (0.6            | )      |   | $      | (1.0            | )      |

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|                                                                      |              |                                                          |              |              |   |     |
|----------------------------------------------------------------------|--------------|----------------------------------------------------------|--------------|--------------|---|-----|
|                                                                 |    | For the Year Ended December 31, |
| (In      millions)                                                   |    | 2008                                                     |    | 2007         |
| Gains arising from      ineffectiveness included in operations  |    | $                                                        | 0.3          |    | $ | 0.5 |

|                                                                                                                              |              |                   |                     |              |        |                     |        |
|------------------------------------------------------------------------------------------------------------------------------|--------------|-------------------|---------------------|--------------|--------|---------------------|--------|
|                                                                                                                         |    | December 31, |                |
| (In      millions)                                                                                                           |    | 2008              |           | 2007         |   |
| Aggregate notional value of      derivatives outstanding                                                                |    | $                 | —   |    | $      | 2.0                 |   |
| Period through which      derivative positions currently exist                                                          |    |              | n/a                 |    |   | December 2008  |   |
| Loss in fair value of      derivatives                                                                                  |    | $                 | —   |    | $      | —   |   |
| The change in fair value due      to the effect of a 10% adverse change in commodity prices to current fair      value  |    | $                 | —   |    | $      | (0.2                | )      |

|                                                                       |              |                                                          |                     |              |        |                     |        |
|-----------------------------------------------------------------------|--------------|----------------------------------------------------------|---------------------|--------------|--------|---------------------|--------|
|                                                                  |    | For the Year Ended December 31, |                |
| (In      millions)                                                    |    | 2008                                                     |           | 2007         |   |
| Losses arising from      ineffectiveness included in operations  |    | $                                                        | —   |    | $      | (1.9                | )      |
| Losses reclassed from OCI to      operations                     |    | $                                                        | —   |    | $      | —   |   |

|                                                                                                                              |              |                   |                     |              |        |                     |
|------------------------------------------------------------------------------------------------------------------------------|--------------|-------------------|---------------------|--------------|--------|---------------------|
|                                                                                                                         |    | December 31, |
| (In      millions)                                                                                                           |    | 2008              |           | 2007         |
| Aggregate notional value of      derivatives outstanding                                                                |    | $                 | —   |    | $      | —   |
| Period through which      derivative positions currently exist                                                          |    |              | n/a                 |    |   | n/a                 |
| Gains in fair value of      derivatives                                                                                 |    | $                 | —   |    | $      | —   |
| The change in fair value due      to the effect of a 10% adverse change in commodity prices to current fair      value  |    | $                 | —   |    | $      | —   |
| Deferred losses included in      OCI                                                                                    |    | $                 | —   |    | $      | —   |
| Gains included in OCI to be      recognized in the next 12 months                                                       |    | $                 | —   |    | $      | —   |
| Number of months over which      gain in OCI is to be recognized                                                        |    |              | n/a                 |    |   | n/a                 |

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| 10. | Property, Plant,      and Equipment |
|-----|-------------------------------------|

|                                          |              |        |         |        |        |        |         |        |
|------------------------------------------|--------------|--------|---------|--------|--------|--------|---------|--------|
| (In      thousands)                      |    | 2008   |    |   | 2007   |   |
| Land and      improvements          |    | $      | 4,018   |   |   | $      | 6,143   |   |
| Building and      improvements      |    |   | 22,542  |   |   |   | 26,216  |   |
| Machinery and      equipment        |    |   | 104,547 |   |   |   | 131,000 |   |
| Critical spare      parts           |    |   | 3,677   |   |   |   | 3,316   |   |
| Construction-in-progress            |    |   | 2,402   |   |   |   | 2,071   |   |
|                                          |    |   |    |   |   |   |    |   |
|                                          |    |   | 137,186 |   |   |   | 168,746 |   |
| Less accumulated      depreciation  |    |   | (85,182 | )      |   |   | (99,668 | )      |
|                                          |    |   |    |   |   |   |    |   |
| Totals                              |    | $      | 52,004  |   |   | $      | 69,078  |   |
|                                          |    |   |    |   |   |   |    |   |

| 11. | Assets Held for      Sale |
|-----|---------------------------|

|                                       |              |                 |        |
|---------------------------------------|--------------|-----------------|--------|
| (In      thousands)                   |    | Decatur,Alabama |
| Land                             |    | $               | 3,680  |
|                                       |    |            |   |
| Total assets held for      sale  |    | $               | 3,680  |
|                                       |    |            |   |

|                                            |              |          |        |        |                 |              |                        |              |                      |                     |              |                 |                     |        |        |        |                     |
|--------------------------------------------|--------------|----------|--------|--------|-----------------|--------------|------------------------|--------------|----------------------|---------------------|--------------|-----------------|---------------------|--------|--------|--------|---------------------|
| (In      thousands)                        |    | Combined |   |   | Decatur,Alabama |    | Booneville,Mississippi |    | Altoona,Pennsylvania |                |         | Montreal,Quebec |
| Receivables                           |    | $        | 6,569  |   |            | $            | —      |    | $                    | —   |    | $               | 6,569               |   |   | $      | —   |
|                                            |              |          |        |        |                 |
| Inventory                             |    |     | 9,837  |   |            |         | —      |    |                 | —   |    |            | 9,837               |   |   |   | —   |
|                                            |              |          |        |        |                 |
| Other assets                          |    |     | 1,276  |   |            |         | —      |    |                 | —   |    |            | 1,276               |   |   |   | —   |
|                                            |              |          |        |        |                 |
| Land                                  |    |     | 7,657  |   |            |         | 3,680                  |    |                 | 158                 |    |            | —   |   |   |   | 3,819               |
|                                            |              |          |        |        |                 |
| Building                              |    |     | 7,452  |   |            |         | —      |    |                 | 1,595               |    |            | 4,768               |   |   |   | 1,089               |
|                                            |              |          |        |        |                 |
| Equipment                             |    |     | 10,210 |   |            |         | 3,629                  |    |                 | 1,560               |    |            | 2,998               |   |   |   | 2,023               |
|                                            |    |     |   |   |            |         |                   |    |                 |                |    |            |                |   |   |   |                |
|                                            |              |          |        |        |                 |
| Total assets held for      sale       |    | $        | 43,001 |   |            | $            | 7,309                  |    | $                    | 3,313               |    | $               | 25,448              |   |   | $      | 6,931               |
|                                            |    |     |   |   |            |         |                   |    |                 |                |    |            |                |   |   |   |                |
|                                            |              |          |        |        |                 |
| Total liabilities held for      sale  |    | $        | (1,853 | )      |            | $            | —      |    | $                    | —   |    | $               | (1,853              | )      |   | $      | —   |
|                                            |    |     |   |   |            |         |                   |    |                 |                |    |            |                |   |   |   |                |

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|                     |              |          |              |                 |        |        |                        |        |        |        |
|---------------------|--------------|----------|--------------|-----------------|--------|--------|------------------------|--------|--------|--------|
| (In      thousands) |    | Combined |    | Decatur,Alabama |   |   | Booneville,Mississippi |
| Equipment      |    | $        | 350          |       | $      | (741   | )                      |   | $      | 391    |
|                     |    |     |         |       |   |   |                   |   |   |   |
| Total          |    | $        | 350          |       | $      | (741   | )                      |   | $      | 391    |
|                     |    |     |         |       |   |   |                   |   |   |   |

|                     |              |          |              |                 |              |                        |              |                   |        |              |        |                     |
|---------------------|--------------|----------|--------------|-----------------|--------------|------------------------|--------------|-------------------|--------|--------------|--------|---------------------|
| (In      thousands) |    | Combined |    | Decatur,Alabama |    | Booneville,Mississippi |    | Jackson,Tennessee |
| Building       |    | $        | 4,603        |       | $            | 4,262                  |    | $                 | 341    |    | $      | —   |
|                     |              |          |              |                 |
| Equipment      |    |     | 44,380       |       |         | 35,872                 |    |              | 2,317  |    |   | 6,191               |
|                     |    |     |         |       |         |                   |    |              |   |    |   |                |
|                     |              |          |              |                 |
| Total          |    | $        | 48,983       |       | $            | 40,134                 |    | $                 | 2,658  |    | $      | 6,191               |
|                     |    |     |         |       |         |                   |    |              |   |    |   |                |

| 12. | Intangible Assets      and Deferred Charges |
|-----|---------------------------------------------|

|                                    |              |                             |              |                         |                             |                     |                      |              |                         |        |              |        |         |        |
|------------------------------------|--------------|-----------------------------|--------------|-------------------------|-----------------------------|---------------------|----------------------|--------------|-------------------------|--------|--------------|--------|---------|--------|
|                               |    | December 31,      2008 |         |                    | December 31,      2007 |                |
|                               |    | GrossCarryingAmounts        |    | AccumulatedAmortization |                        |                | GrossCarryingAmounts |    | AccumulatedAmortization |   |
| Patents and      trademarks   |    |                        | 1,478        |               |                        | (206                | )                    |         |                    | 1,110  |    |   | (196    | )      |
| Deferred financing      fees  |    |                        | 16,194       |               |                        | (15,453             | )                    |         |                    | 14,298 |    |   | (11,825 | )      |
| Other deferred      charges   |    |                        | 621          |               |                        | —   |                 |         |                    | 1,151  |    |   | (254    | )      |
|                                    |    |                        |         |               |                        |                |                 |         |                    |   |    |   |    |   |
|                                    |    | $                           | 18,293       |               | $                           | (15,659             | )                    |         | $                       | 16,559 |    | $      | (12,275 | )      |
|                                    |    |                        |         |               |                        |                |                 |         |                    |   |    |   |    |   |

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|                                           |              |        |        |
|-------------------------------------------|--------------|--------|--------|
| Years ending      December 31:  |    |   |
| 2009                                 |    | $      | 786    |
| 2010                                 |    |   | 45     |
| 2011                                 |    |   | 46     |
| 2012                                 |    |   | 45     |
| 2013                                 |    |   | 46     |
| Thereafter                           |    |   | 1,666  |
|                                           |    |   |   |
| Total                                |    | $      | 2,634  |
|                                           |    |   |   |

| 13. | Accrued      Liabilities |
|-----|--------------------------|

|                                                                           |              |        |                     |              |        |        |
|---------------------------------------------------------------------------|--------------|--------|---------------------|--------------|--------|--------|
| (In      thousands)                                                       |    | 2008   |           | 2007         |
| Interest                                                             |    | $      | 3,673               |    | $      | 6,934  |
| Income taxes                                                         |    |   | 247                 |    |   | 393    |
| Reserve for      restructuring                                       |    |   | —   |    |   | 4,468  |
| Fair value of derivatives and      unsettled derivative liabilities  |    |   | 5,415               |    |   | 925    |
| Worker’s      compensation                                     |    |   | 1,679               |    |   | 1,715  |
| State and local      taxes                                           |    |   | 375                 |    |   | 3,809  |
| Dividends                                                            |    |   | 5,785               |    |   | 708    |
| Other accrued operating      expenses                                |    |   | 7,276               |    |   | 8,045  |
|                                                                           |    |   |                |    |   |   |
| Total                                                                |    | $      | 24,450              |    | $      | 26,997 |
|                                                                           |    |   |                |    |   |   |

| 14. | Financing      Arrangements and Debt |
|-----|--------------------------------------|

|                                                         |              |        |                     |        |        |        |                     |        |
|---------------------------------------------------------|--------------|--------|---------------------|--------|--------|--------|---------------------|--------|
| (In      thousands)                                     |    | 2008   |                |   | 2007   |   |
| Senior Notes, 7.375%, due      August 2008         |    | $      | —   |   |   | $      | 136,750             |   |
| Discount on 7.375% Senior      Notes               |    |   | —   |   |   |   | (17                 | )      |
| Senior Notes, 10.5%, due April      2009           |    |   | 94,400              |   |   |   | 99,400              |   |
| Discount on 10.5% Senior      Notes                |    |   | (44                 | )      |   |   | (214                | )      |
| Senior Exchange Notes, 15.0%,      due March 2012  |    |   | 38,300              |   |   |   | —   |   |
| Other foreign      subsidiaries                    |    |   | —   |   |   |   | 1,017               |   |
| Capitalizedleases                                  |    |   | 14                  |   |   |   | 24                  |   |
|                                                         |    |   |                |   |   |   |                |   |
| Total debt                                         |    |   | 137,670             |   |   |   | 236,960             |   |
| Less short-term      borrowings                    |    |   | (19,759             | )      |   |   | (90,939             | )      |
|                                                         |    |   |                |   |   |   |                |   |
| Total long-term      debt                          |    | $      | 117,911             |   |   | $      | 146,021             |   |
|                                                         |    |   |                |   |   |   |                |   |

|                     |              |        |         |
|---------------------|--------------|--------|---------|
| (In      thousands) |    |   |
| 2012           |    | $      | 117,911 |
|                     |    |   |    |
| Total          |    | $      | 117,911 |
|                     |    |   |    |

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| 15. | Interest      Expense |
|-----|-----------------------|

|                                                     |              |                                        |                     |        |        |        |        |        |
|-----------------------------------------------------|--------------|----------------------------------------|---------------------|--------|--------|--------|--------|--------|
|                                                |    | Year Ended December 31, |                |
| (In      thousands)                                 |    | 2008                                   |                |   | 2007   |   |
| Interest expense – bonds and      other  |    | $                                      | 18,637              |   |   | $      | 21,811 |   |
| Interest expense –      revolver         |    |                                   | —   |   |   |   | 54     |   |
| Interest income                                |    |                                   | (1,197              | )      |   |   | (482   | )      |
| Capitalized      interest                      |    |                                   | (84                 | )      |   |   | (58    | )      |
|                                                     |    |                                   |                |   |   |   |   |   |
| Interest expense,      net                     |    | $                                      | 17,356              |   |   | $      | 21,325 |   |
|                                                     |    |                                   |                |   |   |   |   |   |

| 16. | Retirement and      Pension Plans |
|-----|-----------------------------------|

|                                    |              |        |                     |              |        |        |
|------------------------------------|--------------|--------|---------------------|--------------|--------|--------|
| (In      thousands)                |    | 2008   |           | 2007         |
| 401(k) employer      match    |    | $      | 310                 |    | $      | 496    |
| 3% defined      contribution  |    |   | 1,075               |    |   | 1,627  |
| Success share                 |    |   | —   |    |   | 776    |
| Transition credit             |    |   | 468                 |    |   | 767    |
|                                    |    |   |                |    |   |   |
| Total                         |    | $      | 1,853               |    | $      | 3,666  |
|                                    |    |   |                |    |   |   |

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|                                 |              |        |        |        |        |        |
|---------------------------------|--------------|--------|--------|--------|--------|--------|
|                            |    | 2008   |   |   | 2007   |   |
| Equity securities          |    | 52     | %      |   | 59     | %      |
| Debt securities            |    | 47     |   |   | 39     |   |
| Cash and      equivalents  |    | 1      |   |   | 2      |   |
|                                 |    |   |   |   |   |   |
| Total                      |    | 100    | %      |   | 100    | %      |
|                                 |    |   |   |   |   |   |

|                                                          |              |      |         |        |        |        |         |   |
|----------------------------------------------------------|--------------|------|---------|--------|--------|--------|---------|---|
| (In      thousands)                                      |    | 2008 |    |   | 2007   |   |
| Accrued benefit liability —      non-current  |    | $    | (44,561 | )      |   | $      | (16,602 | ) |

|                                             |              |      |        |        |      |        |
|---------------------------------------------|--------------|------|--------|--------|------|--------|
|                                        |    | 2008 |   |   | 2007 |   |
| Discount rate                          |    | 6.90 | %      |   | 6.55 | %      |
| Rate of increase in      compensation  |    | N/A  |   |   | N/A  |   |

|                                               |              |        |                     |        |        |        |         |        |
|-----------------------------------------------|--------------|--------|---------------------|--------|--------|--------|---------|--------|
| (In      thousands)                           |    | 2008   |                |   | 2007   |   |
| Interest cost                            |    |   | 9,401               |   |   |   | 9,481   |   |
| Expected return on plan      assets      |    |   | (11,172             | )      |   |   | (10,750 | )      |
| Amortization of net actuarial      loss  |    |   | —   |   |   |   | 1,046   |   |
|                                               |    |   |                |   |   |   |    |   |
| Net periodic pension      income         |    | $      | (1,771              | )      |   | $      | (223    | )      |
|                                               |    |   |                |   |   |   |    |   |

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|                                                                              |              |        |                     |              |        |        |        |
|------------------------------------------------------------------------------|--------------|--------|---------------------|--------------|--------|--------|--------|
| (In      thousands)                                                          |    | 2008   |           | 2007         |   |
| Net pension actuarial (gain)      loss                                  |    | $      | 38,982              |    | $      | (8,158 | )      |
| Amortization of net pension      actuarial loss                         |    |   | —   |    |   | (1,046 | )      |
| Pension curtailment      gain                                           |    |   | —   |    |   | (547   | )      |
|                                                                              |    |   |                |    |   |   |   |
| Total recognized in      accumulated other comprehensive income (loss)  |    | $      | 38,982              |    | $      | (9,751 | )      |
|                                                                              |    |   |                |    |   |   |   |

|                                                             |              |      |        |        |      |        |
|-------------------------------------------------------------|--------------|------|--------|--------|------|--------|
|                                                        |    | 2008 |   |   | 2007 |   |
| Discount rate                                          |    | 6.55 | %      |   | 5.92 | %      |
| Rate of increase in      compensation                  |    | N/A  |   |   | N/A  |   |
| Expected long-term rate of      return on plan assets  |    | 8.25 | %      |   | 8.25 | %      |

|                                                            |              |        |                     |        |        |        |         |        |
|------------------------------------------------------------|--------------|--------|---------------------|--------|--------|--------|---------|--------|
| (In      thousands)                                        |    | 2008   |                |   | 2007   |   |
| Benefit obligation at the      beginning of the year  |    | $      | 153,103             |   |   | $      | 161,673 |   |
| Interest costs                                        |    |   | 9,401               |   |   |   | 9,481   |   |
| Actuarial gain                                        |    |   | (7,369              | )      |   |   | (8,955  | )      |
| Benefits paid                                         |    |   | (10,274             | )      |   |   | (8,549  | )      |
| Curtailment                                           |    |   | —   |   |   |   | (547    | )      |
|                                                            |    |   |                |   |   |   |    |   |
| Benefit obligation at the end      of the year        |    | $      | 144,861             |   |   | $      | 153,103 |   |
|                                                            |    |   |                |   |   |   |    |   |

|                                                                   |              |        |         |        |        |        |         |        |
|-------------------------------------------------------------------|--------------|--------|---------|--------|--------|--------|---------|--------|
| (In      thousands)                                               |    | 2008   |    |   | 2007   |   |
| Fair value of plan assets at      the beginning of the year  |    | $      | 136,501 |   |   | $      | 134,262 |   |
| Company      contributions                                   |    |   | 9,253   |   |   |   | 835     |   |
| Actual return on plan      assets                            |    |   | (35,180 | )      |   |   | 9,953   |   |
| Benefits paid                                                |    |   | (10,274 | )      |   |   | (8,549  | )      |
|                                                                   |    |   |    |   |   |   |    |   |
| Fair value of plan assets at      the end of the year        |    | $      | 100,300 |   |   | $      | 136,501 |   |
|                                                                   |    |   |    |   |   |   |    |   |

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|                                                                                 |              |        |         |        |        |        |         |        |
|---------------------------------------------------------------------------------|--------------|--------|---------|--------|--------|--------|---------|--------|
| (In      thousands)                                                             |    | 2008   |    |   | 2007   |   |
| Funded status                                                              |    | $      | (44,561 | )      |   | $      | (16,602 | )      |
| Unrecognized amount in      accumulated other comprehensive income (loss)  |    |   | 53,864  |   |   |   | 14,882  |   |
|                                                                                 |    |   |    |   |   |   |    |   |
| Recognized amount                                                          |    | $      | 9,303   |   |   | $      | (1,720  | )      |
|                                                                                 |    |   |    |   |   |   |    |   |

|                     |              |        |        |
|---------------------|--------------|--------|--------|
| (In      thousands) |    |   |
| 2009           |    | $      | 10,263 |
| 2010           |    |   | 10,390 |
| 2011           |    |   | 10,521 |
| 2012           |    |   | 10,675 |
| 2013           |    |   | 10,972 |
| 2014-2018      |    |   | 58,279 |

|                                                 |              |        |        |        |        |        |        |        |
|-------------------------------------------------|--------------|--------|--------|--------|--------|--------|--------|--------|
| (In      thousands)                             |    | 2008   |   |   | 2007   |   |
| Accrued benefit      liability-current     |    | $      | (80    | )      |   | $      | (126   | )      |
| Accrued benefit      liability-noncurrent  |    |   | (991   | )      |   |   | (1,014 | )      |
|                                                 |    |   |   |   |   |   |   |   |
| Total amount      recognized               |    | $      | (1,071 | )      |   | $      | (1,140 | )      |
|                                                 |    |   |   |   |   |   |   |   |

|                                             |              |      |        |        |      |        |
|---------------------------------------------|--------------|------|--------|--------|------|--------|
|                                        |    | 2008 |   |   | 2007 |   |
| Discount rate                          |    | 6.90 | %      |   | 6.34 | %      |
| Rate of increase in      compensation  |    | N/A  |   |   | N/A  |   |

|                                               |              |        |                     |              |        |        |
|-----------------------------------------------|--------------|--------|---------------------|--------------|--------|--------|
| (In      thousands)                           |    | 2008   |           | 2007         |
| Interest cost                            |    | $      | 67                  |    | $      | 68     |
| Amortization of net actuarial      loss  |    |   | —   |    |   | 6      |
|                                               |    |   |                |    |   |   |
| Net periodic pension      cost           |    | $      | 67                  |    | $      | 74     |
|                                               |    |   |                |    |   |   |

|                                                                              |              |        |                     |        |        |        |        |        |
|------------------------------------------------------------------------------|--------------|--------|---------------------|--------|--------|--------|--------|--------|
| (In      thousands)                                                          |    | 2008   |                |   | 2007   |   |
| Net actuarialloss                                                       |    | $      | (56                 | )      |   | $      | (21    | )      |
| Amortization of net actuarial      loss                                 |    |   | —   |   |   |   | (5     | )      |
|                                                                              |    |   |                |   |   |   |   |   |
| Total recognized in      accumulated other comprehensive income (loss)  |    | $      | (56                 | )      |   | $      | (26    | )      |
|                                                                              |    |   |                |   |   |   |   |   |

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Index to Financial Statements

|                                             |              |      |        |        |      |        |
|---------------------------------------------|--------------|------|--------|--------|------|--------|
|                                        |    | 2008 |   |   | 2007 |   |
| Discount rate                          |    | 6.3  | %      |   | 5.83 | %      |
| Rate of increase in      compensation  |    | N/A  |   |   | N/A  |   |

|                                                            |              |        |        |        |        |        |        |        |
|------------------------------------------------------------|--------------|--------|--------|--------|--------|--------|--------|--------|
| (In      thousands)                                        |    | 2008   |   |   | 2007   |   |
| Benefit obligation at the      beginning of the year  |    | $      | 1,140  |   |   | $      | 1,173  |   |
| Interest costs                                        |    |   | 67     |   |   |   | 68     |   |
| Actuarial gain                                        |    |   | (56    | )      |   |   | (21    | )      |
| Benefits paid                                         |    |   | (80    | )      |   |   | (80    | )      |
|                                                            |    |   |   |   |   |   |   |   |
| Benefit obligation at the end      of the year        |    | $      | 1,071  |   |   | $      | 1,140  |   |
|                                                            |    |   |   |   |   |   |   |   |

|                                                                   |              |        |         |        |        |        |         |        |
|-------------------------------------------------------------------|--------------|--------|---------|--------|--------|--------|---------|--------|
| (In      thousands)                                               |    | 2008   |    |   | 2007   |   |
| Fair value of plan assets at      the beginning of the year  |    | $      | — |   |   | $      | — |   |
| Company      contributions                                   |    |   | 80      |   |   |   | 80      |   |
| Benefits paid                                                |    |   | (80     | )      |   |   | (80     | )      |
|                                                                   |    |   |    |   |   |   |    |   |
| Fair value of plan assets at      the end of the year        |    | $      | — |   |   | $      | — |   |
|                                                                   |    |   |    |   |   |   |    |   |

|                                                                                 |              |        |        |        |        |        |        |        |
|---------------------------------------------------------------------------------|--------------|--------|--------|--------|--------|--------|--------|--------|
| (In      thousands)                                                             |    | 2008   |   |   | 2007   |   |
| Funded status                                                              |    | $      | (1,071 | )      |   | $      | (1,140 | )      |
| Unrecognized amount in      accumulated other comprehensive income (loss)  |    |   | 50     |   |   |   | 106    |   |
|                                                                                 |    |   |   |   |   |   |   |   |
| Recognized amount                                                          |    | $      | (1,021 | )      |   | $      | (1,034 | )      |
|                                                                                 |    |   |   |   |   |   |   |   |

|                     |              |        |     |
|---------------------|--------------|--------|-----|
| (In      thousands) |    |   |
| 2009           |    | $      | 80  |
| 2010           |    |   | 80  |
| 2011           |    |   | 81  |
| 2012           |    |   | 81  |
| 2013           |    |   | 80  |
| 2014-2018      |    |   | 486 |

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|                                           |              |              |                     |        |                 |        |                     |        |
|-------------------------------------------|--------------|--------------|---------------------|--------|-----------------|--------|---------------------|--------|
| (In      thousands)                       |    | SalariedPlan |                |   | OperationalPlan |   |
| Interest cost                        |    | $            | 313                 |   |            | $      | 547                 |   |
| Expected return on plan      assets  |    |         | (96                 | )      |            |   | (325                | )      |
| Effect of      settlement            |    |         | 1,940               |   |            |   | —   |   |
| Effect of      curtailment           |    |         | —   |   |            |   | (1,178              | )      |
|                                           |    |         |                |   |            |   |                |   |
| Net periodic pension      cost       |    | $            | 2,157               |   |            | $      | (956                | )      |
|                                           |    |         |                |   |            |   |                |   |

|                                                            |              |              |                     |        |                 |        |                     |        |
|------------------------------------------------------------|--------------|--------------|---------------------|--------|-----------------|--------|---------------------|--------|
| (In      thousands)                                        |    | SalariedPlan |                |   | OperationalPlan |   |
| Benefit obligation at the      beginning of the year  |    | $            | 11,871              |   |            | $      | 20,099              |   |
| Interest costs                                        |    |         | 314                 |   |            |   | 547                 |   |
| Benefits paid                                         |    |         | (12,953             | )      |            |   | (21,640             | )      |
| Effect of      curtailment                            |    |         | —   |   |            |   | (803                | )      |
| Effect of      settlement                             |    |         | (292                | )      |            |   | —   |   |
| Foreign currency exchange rate      changes           |    |         | 1,060               |   |            |   | 1,797               |   |
|                                                            |    |         |                |   |            |   |                |   |
| Benefit obligation at the end      of the year        |    | $            | —   |   |            | $      | —   |   |
|                                                            |    |         |                |   |            |   |                |   |

|                                                                   |              |              |                     |        |                 |        |                     |        |
|-------------------------------------------------------------------|--------------|--------------|---------------------|--------|-----------------|--------|---------------------|--------|
| (In      thousands)                                               |    | SalariedPlan |                |   | OperationalPlan |   |
| Fair value of plan assets at      the beginning of the year  |    | $            | 10,695              |   |            | $      | 18,500              |   |
| Actual return on plan      assets                            |    |         | 96                  |   |            |   | 325                 |   |
| Company      contribution                                    |    |         | 1,207               |   |            |   | 1,161               |   |
| Benefits paid                                                |    |         | (12,953             | )      |            |   | (21,640             | )      |
| Foreign currency exchange rate      changes                  |    |         | 955                 |   |            |   | 1,654               |   |
|                                                                   |    |         |                |   |            |   |                |   |
| Fair value of plan assets at      the end of the year        |    | $            | —   |   |            | $      | —   |   |
|                                                                   |    |         |                |   |            |   |                |   |

| 17. | Postretirement      Benefit Obligation |
|-----|----------------------------------------|

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Table of Contents

Index to Financial Statements

|                                                          |              |        |        |        |        |        |         |        |
|----------------------------------------------------------|--------------|--------|--------|--------|--------|--------|---------|--------|
| (In      thousands)                                      |    | 2008   |   |   | 2007   |   |
| Accrued benefit liability –      current      |    | $      | (755   | )      |   | $      | (955    | )      |
| Accrued benefit liability –      non current  |    |   | (4,662 | )      |   |   | (18,776 | )      |
|                                                          |    |   |   |   |   |   |    |   |
| Total amount      recognized                        |    | $      | (5,417 | )      |   | $      | (19,731 | )      |
|                                                          |    |   |   |   |   |   |    |   |

|                                                            |              |        |        |        |        |        |        |        |
|------------------------------------------------------------|--------------|--------|--------|--------|--------|--------|--------|--------|
| (In      thousands)                                        |    | 2008   |   |   | 2007   |   |
| Service cost                                          |    | $      | 74     |   |   | $      | 322    |   |
| Interest cost                                         |    |   | 379    |   |   |   | 995    |   |
| Amortization of prior service      cost               |    |   | (31    | )      |   |   | (49    | )      |
| Amortization of net actuarial      gain               |    |   | (1,089 | )      |   |   | (679   | )      |
| Effect of      curtailment                            |    |   | (370   | )      |   |   | (207   | )      |
|                                                            |    |   |   |   |   |   |   |   |
| Net periodic postretirement      benefit cost (gain)  |    | $      | (1,037 | )      |   | $      | 382    |   |
|                                                            |    |   |   |   |   |   |   |   |

|                                                                    |              |        |         |        |        |        |                     |        |
|--------------------------------------------------------------------|--------------|--------|---------|--------|--------|--------|---------------------|--------|
| (In      thousands)                                                |    | 2008   |    |   | 2007   |   |
| Benefit obligation at the      beginning of the year          |    | $      | 19,731  |   |   | $      | 18,532              |   |
| Sale of London      facility                                  |    |   | (10,653 | )      |   |   | —   |   |
| Service cost                                                  |    |   | 74      |   |   |   | 322                 |   |
| Interest cost                                                 |    |   | 379     |   |   |   | 995                 |   |
| Participants’      contributions                        |    |   | 464     |   |   |   | 543                 |   |
| Actuarial (gain)                                              |    |   | (1,304  | )      |   |   | (959                | )      |
| Benefits paid                                                 |    |   | (1,534  | )      |   |   | (1,487              | )      |
| Reduction in benefit      obligation due to curtailment gain  |    |   | (545    | )      |   |   | (264                | )      |
| Foreign currency exchange rate      changes                   |    |   | (1,195  | )      |   |   | 2,049               |   |
|                                                                    |    |   |    |   |   |   |                |   |
| Benefit obligation at the end      of the year                |    | $      | 5,417   |   |   | $      | 19,731              |   |
|                                                                    |    |   |    |   |   |   |                |   |

|                                                   |              |        |                     |        |        |        |                     |        |
|---------------------------------------------------|--------------|--------|---------------------|--------|--------|--------|---------------------|--------|
| (In      thousands)                               |    | 2008   |                |   | 2007   |   |
| Fair value at beginning of      year         |    | $      | —   |   |   | $      | —   |   |
| Company      contributions                   |    |   | 797                 |   |   |   | 338                 |   |
| Plan participant’s      contributions  |    |   | 464                 |   |   |   | 1,201               |   |
| Benefits paid                                |    |   | (1,261              | )      |   |   | (1,539              | )      |
|                                                   |    |   |                |   |   |   |                |   |
| Fair value at end of      year               |    | $      | —   |   |   | $      | —   |   |
|                                                   |    |   |                |   |   |   |                |   |

----

Table of Contents

Index to Financial Statements

|                                                                                 |              |        |        |        |        |        |        |        |
|---------------------------------------------------------------------------------|--------------|--------|--------|--------|--------|--------|--------|--------|
| (In      thousands)                                                             |    | 2008   |   |   | 2007   |   |
| Funded status                                                              |    | $      | 5,417  |   |   | $      | 19,731 |   |
| Unrecognized amount in      accumulated other comprehensive income (loss)  |    |   | (3,181 | )      |   |   | (6,439 | )      |
|                                                                                 |    |   |   |   |   |   |   |   |
| Recognized amount                                                          |    | $      | 2,236  |   |   | $      | 13,292 |   |
|                                                                                 |    |   |   |   |   |   |   |   |

|                     |              |          |       |
|---------------------|--------------|----------|-------|
| (In      thousands) |    | Payments |
| 2009           |    | $        | 814   |
| 2010           |    |     | 844   |
| 2011           |    |     | 875   |
| 2012           |    |     | 870   |
| 2013           |    |     | 847   |
| 2014-2018      |    |     | 3,702 |

|                                                          |              |        |        |        |
|----------------------------------------------------------|--------------|--------|--------|--------|
| (In      thousands)                                      |    | 2008   |   |
| Prior servicecost                                   |    | $      | (5     | )      |
| Net gain                                            |    |   | (3,176 | )      |
|                                                          |    |   |   |   |
| Total accumulated      comprehensive income (loss)  |    | $      | (3,181 | )      |
|                                                          |    |   |   |   |

|                                                         |              |        |        |        |
|---------------------------------------------------------|--------------|--------|--------|--------|
| (In      thousands)                                     |    | 2009   |   |
| Amortization of prior service      costs           |    | $      | (32    | )      |
| Amortization of net      gain                      |    |   | (846   | )      |
|                                                         |    |   |   |   |
| Total expected fiscal year      2009 contribution  |    | $      | (878   | )      |
|                                                         |    |   |   |   |

|                                                           |              |        |        |        |
|-----------------------------------------------------------|--------------|--------|--------|--------|
| (In      thousands)                                       |    | 2008   |   |
| Net actuarial      (gain)/loss                       |    | $      | (1,358 | )      |
| Amortization of net actuarial      (gain)/loss       |    |   | 1,092  |   |
| Prior servicecost                                    |    |   | (43    | )      |
| Amortization of prior service      cost              |    |   | 32     |   |
| (Gain)/loss due to      curtailment                  |    |   | (545   | )      |
| Amortization of (gain)/loss      due to curtailment  |    |   | 369    |   |
|                                                           |    |   |   |   |
| Total recognized in other      comprehensive loss    |    | $      | (453   | )      |
|                                                           |    |   |   |   |

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Index to Financial Statements

|                                                                    |              |                  |              |                  |        |     |   |
|--------------------------------------------------------------------|--------------|------------------|--------------|------------------|--------|-----|---|
| (In      thousands)                                                |    | 1% Increase |    | 1% Decrease |   |
| U.S. Plan:                                                    |    |                  |              |        |        |     |   |
| Effect on total of service and      interest cost components  |    | $                | 5            |        | $      | (5  | ) |
| Effect on postretirement      benefit obligation              |    | $                | 79           |        | $      | (72 | ) |
| Canadian Plan:                                                |    |                  |              |        |        |     |   |
| Effect on total of service and      interest cost components  |    | $                | 3            |        | $      | (3  | ) |
| Effect on postretirement      benefit obligation              |    | $                | 36           |        | $      | (38 | ) |

| 18. | Environmental      Matters |
|-----|----------------------------|

| 19. | Litigation |
|-----|------------|

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Index to Financial Statements

| 20. | Income      Taxes |
|-----|-------------------|

|                     |              |        |         |        |        |        |         |        |
|---------------------|--------------|--------|---------|--------|--------|--------|---------|--------|
| (In      thousands) |    | 2008   |    |   | 2007   |   |
| U.S.           |    | $      | (62,963 | )      |   | $      | (77,092 | )      |
| Foreign        |    |   | 14,607  |   |   |   | 3,924   |   |
|                     |    |   |    |   |   |   |    |   |
| Total          |    | $      | (48,356 | )      |   | $      | (73,168 | )      |
|                     |    |   |    |   |   |   |    |   |

|                                                                   |              |        |                     |        |        |        |                     |
|-------------------------------------------------------------------|--------------|--------|---------------------|--------|--------|--------|---------------------|
| (In      thousands)                                               |    | 2008   |                |   | 2007   |
| Current expense      (benefit):                              |    |        |                     |        |   |        |                     |
| U.S. federal                                                 |    | $      | —   |   |   | $      | —   |
| Foreign                                                      |    |   | (20,013             | )      |   |   | 1,617               |
| State                                                        |    |   | 156                 |   |   |   | 30                  |
|                                                                   |    |   |                |   |   |   |                |
| Total current                                                |    |   | (19,857             | )      |   |   | 1,647               |
|                                                                   |    |   |                |   |   |   |                |
|                                                                   |              |        |
| Deferred expense      (benefit):                             |    |        |                     |        |   |        |                     |
| U.S. federal and      state                                  |    |   | (1,283              | )      |   |   | 1,808               |
| Foreign                                                      |    |   | 21,817              |   |   |   | 21                  |
|                                                                   |    |   |                |   |   |   |                |
| Total deferred                                               |    |   | 20,534              |   |   |   | 1,829               |
|                                                                   |    |   |                |   |   |   |                |
|                                                                   |              |        |
| Total income tax expense –      continuing operations  |    |   | 677                 |   |   |   | 3,476               |
| Income tax benefit –      discontinued operations      |    |   | 90                  |   |   |   | 5,040               |
|                                                                   |    |   |                |   |   |   |                |
| Total income tax      expense                                |    | $      | 767                 |   |   | $      | 8,516               |
|                                                                   |    |   |                |   |   |   |                |

|                                                                 |              |        |         |        |        |        |         |        |
|-----------------------------------------------------------------|--------------|--------|---------|--------|--------|--------|---------|--------|
| (In      thousands)                                             |    | 2008   |    |   | 2007   |   |
| Deferred tax      liabilities:                             |    |        |         |        |   |        |         |        |
| Property, plant and      equipment                         |    | $      | (30,245 | )      |   | $      | (29,815 | )      |
| Intangibles                                                |    |   | 4,870   |   |   |   | (4,559  | )      |
| Inventory                                                  |    |   | (6,804  | )      |   |   | (6,146  | )      |
| Other                                                      |    |   | (9,075  | )      |   |   | (11,242 | )      |
|                                                                 |    |   |    |   |   |   |    |   |
| Total deferred tax      liabilities                        |    |   | (41,254 | )      |   |   | (51,762 | )      |
|                                                                 |    |   |    |   |   |   |    |   |
|                                                                 |              |        |
| Deferred tax      assets:                                  |    |        |         |        |   |        |         |        |
| Environmental remediation      reserves                    |    |   | 3,611   |   |   |   | 7,126   |   |
| Net operating loss      carryforward                       |    |   | 23,307  |   |   |   | 24,945  |   |
| Restructuring      reserves                                |    |   | 26,791  |   |   |   | 31,236  |   |
| Pensionobligation                                          |    |   | 8,699   |   |   |   | 17,688  |   |
| Other                                                      |    |   | 6,743   |   |   |   | 11,707  |   |
|                                                                 |    |   |    |   |   |   |    |   |
| Total deferred tax      assets                             |    |   | 69,151  |   |   |   | 92,702  |   |
| Valuation      allowance                                   |    |   | (29,498 | )      |   |   | (44,681 | )      |
|                                                                 |    |   |    |   |   |   |    |   |
| Total deferred tax assets net      of valuation allowance  |    |   | 39,653  |   |   |   | 48,021  |   |
|                                                                 |    |   |    |   |   |   |    |   |
| Net deferred tax      liability                            |    | $      | (1,601  | )      |   | $      | (3,741  | )      |
|                                                                 |    |   |    |   |   |   |    |   |

|                                                                |              |        |                     |        |        |        |                     |        |
|----------------------------------------------------------------|--------------|--------|---------------------|--------|--------|--------|---------------------|--------|
| (In      thousands)                                            |    | 2008   |                |   | 2007   |   |
| Income tax benefit at federal      statutory rate         |    | $      | (16,925             | )      |   | $      | (25,609             | )      |
| Increase (decrease) in taxes      resulting from:         |    |        |                     |        |   |        |                     |        |
| State and local      taxes                                |    |   | (853                | )      |   |   | (2,604              | )      |
| Effect of difference between      U.S. and foreign rates  |    |   | 18,696              |   |   |   | 331                 |   |
| Embedded      derivative                                  |    |   | —   |   |   |   | (5,514              | )      |
| Items related to Canada      sale                         |    |   | 5,334               |   |   |   | —   |   |
| Goodwill                                                  |    |   | 5,884               |   |   |   | —   |   |
| Other permanent      differences                          |    |   | 421                 |   |   |   | 49                  |   |
| Foreign dividend      repatriation                        |    |   | —   |   |   |   | 3,121               |   |
| Increase (decrease) in      valuation allowance           |    |   | (10,859             | )      |   |   | 35,006              |   |
| Other                                                     |    |   | (1,021              | )      |   |   | (1,304              | )      |
|                                                                |    |   |                |   |   |   |                |   |
| Income tax expense –      continuing operations     |    | $      | 677                 |   |   | $      | 3,476               |   |
| Income tax benefit –      discontinued operations   |    |   | 90                  |   |   |   | 5,040               |   |
|                                                                |    |   |                |   |   |   |                |   |
| Total income tax      expense                             |    | $      | 767                 |   |   | $      | 8,516               |   |
|                                                                |    |   |                |   |   |   |                |   |

----

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----

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Index to Financial Statements

|                                                                                                                                           |              |        |                     |        |
|-------------------------------------------------------------------------------------------------------------------------------------------|--------------|--------|---------------------|--------|
| (In      thousands)                                                                                                                       |    |   |                |
| Balance at beginning of      year                                                                                                    |    | $      | 4,518               |   |
| Deletions based on tax      positions related to the current year including the effects of the sale of      our Canadian operations  |    |   | (3,583              | )      |
| Additions for tax positions of      prior years                                                                                      |    |   | —   |   |
| Settlements                                                                                                                          |    |   | —   |   |
|                                                                                                                                           |    |   |                |   |
| Balance at end of      year                                                                                                          |    | $      | 935                 |   |
|                                                                                                                                           |    |   |                |   |

| 21. | Accumulated Other      Comprehensive Income (Loss) |
|-----|----------------------------------------------------|

|                                                                            |              |                                      |                     |        |                                                              |        |        |                            |        |        |                                                 |        |        |        |         |        |
|----------------------------------------------------------------------------|--------------|--------------------------------------|---------------------|--------|--------------------------------------------------------------|--------|--------|----------------------------|--------|--------|-------------------------------------------------|--------|--------|--------|---------|--------|
| (In      thousands)                                                        |    | ForeignCurrencyTranslationAdjustment |                |   | Unrealized Gain(Loss) on Cash FlowHedges |   |   | PensionLiabilityAdjustment |   |   | Accumulated OtherComprehensiveIncome(Loss) |   |
| Balance at December 31,      2006                                |    | $                                    | 12,049              |   |                                                         | $      | (3,424 | )                          |   | $      | (18,014                                         | )      |   | $      | (9,389  | )      |
| Activity in 2007                                                      |    |                                 | 11,556              |   |                                                         |   | (518   | )                          |   |   | 10,923                                          |   |   |   | 21,961  |   |
| Reclassification adjustment      for realized cash flow hedge losses  |    |                                 | —   |   |                                                         |   | 3,424  |                       |   |   | —                               |   |   |   | 3,424   |   |
|                                                                            |    |                                 |                |   |                                                         |   |   |                       |   |   |                                            |   |   |   |    |   |
| Balance at December 31,      2007                                |    |                                 | 23,605              |   |                                                         |   | (518   | )                          |   |   | (7,091                                          | )      |   |   | 15,996  |   |
| Activity in 2008                                                      |    |                                 | (15,523             | )      |                                                         |   | (5,145 | )                          |   |   | (35,292                                         | )      |   |   | (55,960 | )      |
| Reclassification adjustment      for realized cash flow hedge losses  |    |                                 | —   |   |                                                         |   | 518    |                       |   |   | —                               |   |   |   | 518     |   |
|                                                                            |    |                                 |                |   |                                                         |   |   |                       |   |   |                                            |   |   |   |    |   |
| Balance at December 31,      2008                                |    | $                                    | 8,082               |   |                                                         | $      | (5,145 | )                          |   | $      | (42,383                                         | )      |   | $      | (39,446 | )      |
|                                                                            |    |                                 |                |   |                                                         |   |   |                       |   |   |                                            |   |   |   |    |   |

| 22. | Common      Stock |
|-----|-------------------|

| 23. | Stock-Based      Compensation Plans |
|-----|-------------------------------------|

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Index to Financial Statements

|                                 |              |                     |              |              |              |                             |              |           |              |   |        |
|---------------------------------|--------------|---------------------|--------------|--------------|--------------|-----------------------------|--------------|-----------|--------------|---|--------|
|                            |    | Exercise Price |    | Shares       |    | 12/31/2008Option Costs |    | Valuation |
| 40% of stock      options  |    | $                   | 0.740        |    | 216,118      |                   | $            | 0.083     |    | $ | 17,938 |
| 30% of stock      options  |    | $                   | 0.950        |    | 162,088      |                   | $            | 0.078     |    | $ | 12,643 |
| 30% of stock      options  |    | $                   | 1.490        |    | 162,088      |                   | $            | 0.070     |    | $ | 11,346 |

----

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Index to Financial Statements

|                                 |              |                     |              |              |              |                   |              |                             |              |   |         |
|---------------------------------|--------------|---------------------|--------------|--------------|--------------|-------------------|--------------|-----------------------------|--------------|---|---------|
|                            |    | Exercise Price |    | Shares       |    | Option Costs |    | Valuation                   |
| 40% of stock      options  |    | $                   | 0.74         |    | 432,185      |         | $            | 0.39 – 0.62 |    | $ | 213,019 |
| 30% of stock      options  |    | $                   | 0.95         |    | 344,139      |         | $            | 0.36 – 0.58 |    | $ | 157,258 |
| 30% of stock      options  |    | $                   | 1.49         |    | 344,139      |         | $            | 0.32 – 0.52 |    | $ | 137,421 |

|                                                    |              |                     |        |        |                      |        |        |                          |        |        |                          |        |        |                      |        |        |              |                         |                               |        |                     |
|----------------------------------------------------|--------------|---------------------|--------|--------|----------------------|--------|--------|--------------------------|--------|--------|--------------------------|--------|--------|----------------------|--------|--------|--------------|-------------------------|-------------------------------|--------|---------------------|
|                                               |    | 2007Plan            |   |   | 2003 EquityPlan |   |   | 2001Directors’Plan |   |   | 1993Directors’Plan |   |   | 1993 EquityPlan |   |   | Option Price |               | Weighted-AverageExercisePrice |
| Outstanding at      December 31, 2007    |    | 8,753,059           |   |   | 459,143              |   |   | 122,122                  |   |   | 72,611                   |   |   | 898,060              |   |   | $            | 1.10 - $22.25 |                     | $      | 2.68                |
| Anti-dilutive effect of Rights      Offering  |    | 4,707,474           |   |   | —    |   |   | —        |   |   | —        |   |   | —    |   |   |         | —       |                     |   | —   |
| Granted                                       |    | 1,698,257           |   |   | 40,000               |   |   | 7,000                    |   |   | —        |   |   | —    |   |   | $            | 0.74 - $1.49  |                     | $      | 1.00                |
| Exercised                                     |    | —   |   |   | —    |   |   | —        |   |   | —        |   |   | —    |   |   |         | —       |                     |   | —   |
| Forfeited                                     |    | (1,841,275          | )      |   | (117,403             | )      |   | (82,202                  | )      |   | (44,420                  | )      |   | (271,609             | )      |   | $            | 0.74 - $22.25 |                     | $      | 2.79                |
|                                                    |    |                |   |   |                 |   |   |                     |   |   |                     |   |   |                 |   |   |         |                    |                     |   |                |
|                                                    |              |                     |        |        |                      |        |        |
| Outstanding at      December 31, 2008    |    | 13,317,515          |   |   | 381,740              |   |   | 46,920                   |   |   | 28,191                   |   |   | 626,451              |   |   | $            | 0.74 - $22.25 |                     | $      | 1.64                |
|                                                    |    |                |   |   |                 |   |   |                     |   |   |                     |   |   |                 |   |   |         |                    |                     |   |                |
|                                                    |              |                     |        |        |                      |        |        |
| Exercisable at:                               |    |                     |        |   |                      |        |   |                          |        |   |                          |        |   |                      |        |   |              |                         |                     |        |                     |
| December 31,      2007                   |    | —   |   |   | 459,143              |   |   | 120,122                  |   |   | 72,611                   |   |   | 898,060              |   |   | $            | 2.76 - $22.25 |                     | $      | 9.29                |
| December 31,      2008                   |    | 2,323,859           |   |   | 341,740              |   |   | 41,920                   |   |   | 28,191                   |   |   | 626,451              |   |   | $            | 0.74 - $22.25 |                     | $      | 3.64                |

|                                            |              |                                            |
|--------------------------------------------|--------------|--------------------------------------------|
| Range of Assumptions      used             |    | Year      endedDecember 31, 2008 |
| Expected stock price      volatility  |    | 68.67%-103.6%                              |
| Expected life (in      years)         |    | 6.9                                        |
| Risk-free interest      rate          |    | 1.87%-3.61%                                |
| Expected dividend      yield          |    | 0%                                         |

----

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Index to Financial Statements

|                                                   |              |        |              |              |        |        |
|---------------------------------------------------|--------------|--------|--------------|--------------|--------|--------|
| (In      thousands)                               |    | 2008   |    | 2007         |
| Stock-based compensation      expense        |    |        |              |    |        |        |
| Non-qualified stock      options             |    | $      | 845          |    | $      | 2,347  |
| Restricted stock                             |    |   | 2            |    |   | 282    |
|                                                   |    |   |         |    |   |   |
| Total stock-based compensation      expense  |    | $      | 847          |    | $      | 2,629  |
|                                                   |    |   |         |    |   |   |

|                                        |              |                        |              |                                                       |        |
|----------------------------------------|--------------|------------------------|--------------|-------------------------------------------------------|--------|
| (In      thousands)                    |    | Non-vestedCompensation |    | Average RemainingRecognition      Period(Months) |
| Non-qualified stock      options  |    | $                      | 525          |                                             | 46     |
| Restricted stock      awards      |    |                   | 27           |                                             | 54     |
|                                        |    |                   |         |                                             |   |
| Total                             |    | $                      | 552          |                                             | 54     |
|                                        |    |                   |         |                                             |   |

|                                      |              |                                  |              |                                  |              |                                           |
|--------------------------------------|--------------|----------------------------------|--------------|----------------------------------|--------------|-------------------------------------------|
| Weighted Average Exercise      Price |    | Number      ofExercisableOptions |    | Number      ofOutstandingOptions |    | WeightedAverageRemainingLife (Years) |
| $0.74 - $4.11                   |    | 2,536,347                        |    | 13,575,003                       |    | 8.4                                       |
| $4.12 - $8.23                   |    | 34,420                           |    | 34,420                           |    | 4.3                                       |
| $8.24 - $12.34                  |    | 611,278                          |    | 611,278                          |    | 3.7                                       |
| $12.35 - $16.45                 |    | 166,616                          |    | 166,616                          |    | 1.1                                       |
| $16.46 - $20.57                 |    | 9,500                            |    | 9,500                            |    | 1.2                                       |
| $20.58 - $24.68                 |    | 4,000                            |    | 4,000                            |    | 0.1                                       |
|                                      |    |                             |    |                             |    |                                      |
| Totals                          |    | 3,362,161                        |    | 14,400,817                       |    | 8.5                                       |
|                                      |    |                             |    |                             |    |                                      |

|                                                                            |              |                     |              |                                                          |                     |
|----------------------------------------------------------------------------|--------------|---------------------|--------------|----------------------------------------------------------|---------------------|
|                                                                       |    | Shares              |    | Weighted AverageGrant-Date      FairValue per Award |
| Unvested restricted stock      awards – January 1, 2008    |    | —   |    | $                                                        | —   |
| Granted                                                               |    | 40,000              |    | $                                                        | 0.74                |
| Vested                                                                |    | —   |    |                                                     | —   |
| Cancelled or      expired                                             |    | —   |    |                                                     | —   |
|                                                                            |    |                |    |                                                     |                |
| Unvested restricted stock      awards – December 31, 2008  |    | 40,000              |    | $                                                        | 0.74                |
|                                                                            |    |                |    |                                                     |                |

| 24. | Commitments and      Contingencies |
|-----|------------------------------------|

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Index to Financial Statements

| 25. | Goodwill |
|-----|----------|

|                                                 |              |        |                     |        |
|-------------------------------------------------|--------------|--------|---------------------|--------|
| Balance as of January 1,      2007    |    | $      | 46,486              |   |
| Exchange rate      differences             |    |   | 217                 |   |
|                                                 |    |   |                |   |
| Balance as of      December 31, 2007  |    |   | 46,703              |   |
| Impairment loss                            |    |   | (46,560             | )      |
| Exchange rate      differences             |    |   | (143                | )      |
|                                                 |    |   |                |   |
| Balance as of      December 31, 2008  |    | $      | —   |   |
|                                                 |    |   |                |   |

| 26. | Industry Segments      and Foreign Operations |
|-----|-----------------------------------------------|

|                                               |              |        |              |              |              |                              |              |              |         |              |        |           |
|-----------------------------------------------|--------------|--------|--------------|--------------|--------------|------------------------------|--------------|--------------|---------|--------------|--------|-----------|
| (In      thousands)                           |    | U.S.   |    | Canada       |    | Other ForeignOperations |    | Consolidated |
| Year ended December 31,      2008:  |    |        |              |    |              |                              |    |              |         |    |        |           |
| Sales                                    |    | $      | 693,620      |    | $            | 2,818                        |    | $            | 119,363 |    | $      | 815,801   |
| Long-lived assets                        |    |   | 39,448       |    |         | —            |    |         | 15,189  |    |   | 54,637    |
|                                               |              |        |              |              |
| Year ended December 31,      2007:  |    |        |              |    |              |                              |    |              |         |    |        |           |
| Sales                                    |    | $      | 890,052      |    | $            | 3,691                        |    | $            | 117,276 |    | $      | 1,011,019 |
| Long-lived assets                        |    |   | 85,062       |    |         | —            |    |         | 20,788  |    |   | 105,850   |

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Index to Financial Statements

| 27. | Restructuring and      Other Charges |
|-----|--------------------------------------|

|                                                                      |              |        |                     |        |        |        |        |
|----------------------------------------------------------------------|--------------|--------|---------------------|--------|--------|--------|--------|
| (In      thousands)                                                  |    | 2008   |                |   | 2007   |
| Montreal, Quebec                                                |    | $      | 1,446               |   |   | $      | 2,503  |
| Jackson,Tennessee                                               |    |   | (3                  | )      |   |   | 7,138  |
| U.S. wholesale distribution      relocation                     |    |   | —   |   |   |   | 41     |
| Decatur, Alabama                                                |    |   | 2,321               |   |   |   | 60,951 |
| Commodity Depot                                                 |    |   | (201                | )      |   |   | 533    |
| Booneville,      Mississippi                                    |    |   | 1,979               |   |   |   | 3,736  |
| Corporate and      General & Administrative reduction  |    |   | 278                 |   |   |   | 195    |
|                                                                      |    |   |                |   |   |   |   |
| Total                                                           |    | $      | 5,820               |   |   | $      | 75,097 |
|                                                                      |    |   |                |   |   |   |   |

|                                                      |              |                  |              |                                                      |              |                                                           |              |        |                     |        |
|------------------------------------------------------|--------------|------------------|--------------|------------------------------------------------------|--------------|-----------------------------------------------------------|--------------|--------|---------------------|--------|
| (In      thousands) Major Type      Costs  |    | EstimatedCharges |    | CumulativeincurredthroughDecember 31, 2008 |    | Incurred      forthe      YearDecember 31, 2008 |         |
| Impair and liquidate current      assets        |    | $                | 9,322        |                                            | $            | 4,053                                                     |    | $      | 81                  |   |
| Employee-related      costs                     |    |             | 9,932        |                                            |         | 10,785                                                    |    |   | 199                 |   |
| Environmental      remediation                  |    |             | 11,538       |                                            |         | 11,577                                                    |    |   | 39                  |   |
| Post closingcosts                               |    |             | 4,629        |                                            |         | 3,239                                                     |    |   | 1,144               |   |
| Other costs      currency                       |    |             | 438          |                                            |         | 244                                                       |    |   | (17                 | )      |
| Fixed asset      impairment                     |    |             | 14,796       |                                            |         | 14,796                                                    |    |   | —   |   |
|                                                      |    |             |         |                                            |         |                                                      |    |   |                |   |
| Total                                           |    | $                | 50,655       |                                            | $            | 44,694                                                    |    | $      | 1,446               |   |
|                                                      |    |             |         |                                            |         |                                                      |    |   |                |   |

----

Table of Contents

Index to Financial Statements

|                                                      |              |                  |              |                                                      |              |                                                           |              |        |                     |        |
|------------------------------------------------------|--------------|------------------|--------------|------------------------------------------------------|--------------|-----------------------------------------------------------|--------------|--------|---------------------|--------|
| (In      thousands) Major Type      Costs  |    | EstimatedCharges |    | CumulativeincurredthroughDecember 31, 2008 |    | Incurred      forthe      YearDecember 31, 2008 |         |
| Impair and liquidate current      assets        |    | $                | 762          |                                            | $            | 746                                                       |    | $      | —   |   |
| Employee-related      costs                     |    |             | 388          |                                            |         | 302                                                       |    |   | —   |   |
| Environmental      remediation                  |    |             | 75           |                                            |         | 86                                                        |    |   | —   |   |
| Post closingcosts                               |    |             | 339          |                                            |         | 869                                                       |    |   | (3                  | )      |
| Other costs                                     |    |             | 695          |                                            |         | 657                                                       |    |   | —   |   |
| Fixed asset      impairment                     |    |             | 14,760       |                                            |         | 20,950                                                    |    |   | —   |   |
|                                                      |    |             |         |                                            |         |                                                      |    |   |                |   |
| Total                                           |    | $                | 17,019       |                                            | $            | 23,610                                                    |    | $      | (3                  | )      |
|                                                      |    |             |         |                                            |         |                                                      |    |   |                |   |

|                                                      |              |                  |              |                                                      |              |                                                           |              |        |                     |
|------------------------------------------------------|--------------|------------------|--------------|------------------------------------------------------|--------------|-----------------------------------------------------------|--------------|--------|---------------------|
| (In      thousands) Major Type      Costs  |    | EstimatedCharges |    | CumulativeincurredthroughDecember 31, 2008 |    | Incurred      forthe      YearDecember 31, 2008 |
| Cost to move      inventory                     |    | $                | 40           |                                            | $            | —                                         |    | $      | —   |
| Building lease      termination                 |    |             | 328          |                                            |         | 392                                                       |    |   | —   |
| Other costs                                     |    |             | 5            |                                            |         | 7                                                         |    |   | —   |
| Fixed asset      impairment                     |    |             | 71           |                                            |         | 71                                                        |    |   | —   |
|                                                      |    |             |         |                                            |         |                                                      |    |   |                |
| Total                                           |    | $                | 444          |                                            | $            | 470                                                       |    | $      | —   |
|                                                      |    |             |         |                                            |         |                                                      |    |   |                |

|                                                      |              |                  |                     |                                                      |              |                                                           |              |        |        |        |
|------------------------------------------------------|--------------|------------------|---------------------|------------------------------------------------------|--------------|-----------------------------------------------------------|--------------|--------|--------|--------|
| (In      thousands) Major Type      Costs  |    | EstimatedCharges |           | CumulativeincurredthroughDecember 31, 2008 |    | Incurred      forthe      YearDecember 31, 2008 |         |
| Impair and liquidate current      assets        |    | $                | 495                 |                                            | $            | 250                                                       |    | $      | (245   | )      |
| Other costs                                     |    |             | —   |                                            |         | 2                                                         |    |   | 2      |   |
| Employee-related      costs                     |    |             | 38                  |                                            |         | 80                                                        |    |   | 42     |   |
|                                                      |    |             |                |                                            |         |                                                      |    |   |   |   |
| Total                                           |    | $                | 533                 |                                            | $            | 332                                                       |    | $      | (201   | )      |
|                                                      |    |             |                |                                            |         |                                                      |    |   |   |   |

|                                                      |              |                  |              |                                                      |              |                                                           |              |        |                     |
|------------------------------------------------------|--------------|------------------|--------------|------------------------------------------------------|--------------|-----------------------------------------------------------|--------------|--------|---------------------|
| (In      thousands) Major Type      Costs  |    | EstimatedCharges |    | CumulativeincurredthroughDecember 31, 2008 |    | Incurred      forthe      YearDecember 31, 2008 |
| Impair and liquidate current      assets        |    | $                | 915          |                                            | $            | 915                                                       |    | $      | —   |
| Employee-related      costs                     |    |             | 149          |                                            |         | 156                                                       |    |   | 5                   |
| Post closingcosts                               |    |             | 1,230        |                                            |         | 1,595                                                     |    |   | 1,583               |
| Fixed asset      impairment                     |    |             | 2,658        |                                            |         | 3,049                                                     |    |   | 391                 |
|                                                      |    |             |         |                                            |         |                                                      |    |   |                |
| Total                                           |    | $                | 4,952        |                                            | $            | 5,715                                                     |    | $      | 1,979               |
|                                                      |    |             |         |                                            |         |                                                      |    |   |                |

|                                                      |              |                  |        |        |                                                      |        |        |                                                           |        |        |                     |
|------------------------------------------------------|--------------|------------------|--------|--------|------------------------------------------------------|--------|--------|-----------------------------------------------------------|--------|--------|---------------------|
| (In      thousands) Major Type      Costs  |    | EstimatedCharges |   |   | CumulativeincurredthroughDecember 31, 2008 |   |   | Incurred      forthe      YearDecember 31, 2008 |
| Employee-related      costs                     |    | $                | 336    |   |                                                 | $      | 532    |                                                      |   | $      | 189                 |
| Postretirement benefit      gain                |    |             | (213   | )      |                                                 |   | (208   | )                                                         |   |   | —   |
| Other                                           |    |             | 400    |   |                                                 |   | 149    |                                                      |   |   | 89                  |
|                                                      |    |             |   |   |                                                 |   |   |                                                      |   |   |                |
| Total                                           |    | $                | 523    |   |                                                 | $      | 473    |                                                      |   | $      | 278                 |
|                                                      |    |             |   |   |                                                 |   |   |                                                      |   |   |                |

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Table of Contents

Index to Financial Statements

|                                                      |              |                  |              |                                                      |              |                                                           |              |        |                     |        |
|------------------------------------------------------|--------------|------------------|--------------|------------------------------------------------------|--------------|-----------------------------------------------------------|--------------|--------|---------------------|--------|
| (In      thousands) Major Type      Costs  |    | EstimatedCharges |    | CumulativeincurredthroughDecember 31, 2008 |    | Incurred      forthe      YearDecember 31, 2008 |         |
| Impair and liquidate current      assets        |    | $                | 6,517        |                                            | $            | 6,517                                                     |    | $      | —   |   |
| Employee-related      costs                     |    |             | 2,980        |                                            |         | 3,031                                                     |    |   | (105                | )      |
| Environmental      remediation                  |    |             | 8,601        |                                            |         | 8,608                                                     |    |   | 7                   |   |
| Post closingcosts                               |    |             | 1,931        |                                            |         | 4,223                                                     |    |   | 1,880               |   |
| Other costs                                     |    |             | 966          |                                            |         | 759                                                       |    |   | 539                 |   |
| Fixed asset      impairment                     |    |             | 40,134       |                                            |         | 40,134                                                    |    |   | —   |   |
|                                                      |    |             |         |                                            |         |                                                      |    |   |                |   |
| Total                                           |    | $                | 61,129       |                                            | $            | 63,272                                                    |    | $      | 2,321               |   |
|                                                      |    |             |         |                                            |         |                                                      |    |   |                |   |
|                                                      |              |                  |              |
| Grand Total                                     |    | $                | 135,255      |                                            | $            | 138,566                                                   |    | $      | 5,820               |   |
|                                                      |    |             |         |                                            |         |                                                      |    |   |                |   |

| 28. | Earnings (Loss)      Per Share |
|-----|--------------------------------|

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Index to Financial Statements

|                                                                                                                         |              |        |         |        |        |        |          |        |
|-------------------------------------------------------------------------------------------------------------------------|--------------|--------|---------|--------|--------|--------|----------|--------|
| (In thousands, except per      share data)                                                                              |    | 2008   |    |   | 2007   |   |
| Basic Earnings Per      Share                                                                                      |    |        |         |        |   |        |          |        |
| Net loss                                                                                                           |    | $      | (48,473 | )      |   | $      | (98,227  | )      |
| Less: accretion of convertible      preferred stock and beneficial conversion feature                              |    |   | 5,021   |   |   |   | 4,618    |   |
| Less: preferred stock      dividends                                                                               |    |   | 6,810   |   |   |   | 13,284   |   |
|                                                                                                                         |    |   |    |   |   |   |     |   |
| Net loss applicable to common      stockholders                                                                    |    | $      | (60,304 | )      |   | $      | (116,129 | )      |
| Income (loss) from      discontinued operations                                                                    |    |   | 769     |   |   |   | (21,583  | )      |
|                                                                                                                         |    |   |    |   |   |   |     |   |
| Net loss from continuing      operations                                                                           |    |   | (61,073 | )      |   |   | (94,546  | )      |
|                                                                                                                         |    |   |    |   |   |   |     |   |
| Amount allocable to common      stockholders from continuing operations (1)                                        |    |   | 100     | %      |   |   | 100      | %      |
| Amount allocable to common      stockholders from discontinued operations (1)                                      |    |   | 41      | %      |   |   | 100      | %      |
| Net loss from continuing      operations allocated to common stockholders                                          |    |   | (61,073 | )      |   |   | (94,546  | )      |
| Net income (loss) from      discontinued operations allocable to common stockholders                               |    | $      | 315     |   |   | $      | (21,583  | )      |
|                                                                                                                         |    |   |    |   |   |   |     |   |
|                                                                                                                         |              |        |
| Basic weighted average number      of common shares (2)                                                            |    |   | 40,624  |   |   |   | 19,038   |   |
|                                                                                                                         |    |   |    |   |   |   |     |   |
|                                                                                                                         |              |        |
| Basic income (loss) per share      – Two-class Method                                                        |    |        |         |        |   |        |          |        |
| Continuing      operations                                                                                         |    |   | (1.50   | )      |   |   | (4.97    | )      |
| Discontinued operations      (1)                                                                                   |    | $      | 0.01    |   |   | $      | (1.13    | )      |
|                                                                                                                         |    |   |    |   |   |   |     |   |
| Net loss per common      share                                                                                     |    |   | (1.49   | )      |   |   | (6.10    | )      |
|                                                                                                                         |    |   |    |   |   |   |     |   |
|                                                                                                                         |              |        |
| Diluted Earnings Per      Share                                                                                    |    |        |         |        |   |        |          |        |
| Net loss available to common      stockholders                                                                     |    | $      | (60,304 | )      |   | $      | (116,129 | )      |
| Plus: accretion of convertible      preferred stock and beneficial conversion feature                              |    |   | 5,021   |   |   |   | 4,618    |   |
| Plus: preferred stock      dividends                                                                               |    |   | 6,810   |   |   |   | 13,284   |   |
|                                                                                                                         |    |   |    |   |   |   |     |   |
| Loss available to common      stockholders in addition to assumed conversions                                      |    |   | (48,473 | )      |   |   | (98,227  | )      |
| Income (loss) from      discontinued operations                                                                    |    |   | 769     |   |   |   | (21,583  | )      |
|                                                                                                                         |    |   |    |   |   |   |     |   |
| Net loss from continuing      operations available to common stockholders in addition to assumed      conversions  |    | $      | (49,242 | )      |   | $      | (76,644  | )      |
|                                                                                                                         |    |   |    |   |   |   |     |   |
| Amount allocable to common      stockholders (1)                                                                   |    |   | 100     | %      |   |   | 100      | %      |
| Net loss from continuing      operations allocable to common stockholders                                          |    | $      | (61,073 | )      |   | $      | (94,546  | )      |
| Net income (loss) from      discontinued operations allocable to common stockholders                               |    | $      | 315     |   |   | $      | (21,583  | )      |
|                                                                                                                         |              |        |
| Diluted weighted average      number of common shares (2)                                                          |    |   | 40,624  |   |   |   | 19,038   |   |
|                                                                                                                         |              |        |
| Diluted income (loss) per      share – Two-class Method                                                      |    |        |         |        |   |        |          |        |
| Continuing      operations                                                                                         |    | $      | (1.50   | )      |   | $      | (4.97    | )      |
| Discontinued      operations                                                                                       |    |   | 0.01    |   |   |   | (1.13    | )      |
|                                                                                                                         |    |   |    |   |   |   |     |   |
| Net loss per common      share                                                                                     |    | $      | (1.49   | )      |   | $      | (6.10    | )      |
|                                                                                                                         |    |   |    |   |   |   |     |   |

| 1) | Amount allocable to common stockholders is calculated as the      weighted average number of common shares outstanding divided by the sum of      common and preferred shares outstanding for the year ended      December 31, 2008 and 2007, respectively. In computing basic EPS      using the Two-Class Method, we have not allocated the loss available to      common stockholders for the year ended December 31, 2008 between      common and preferred stockholders as the preferred stockholders do not      have a contractual obligation to share in the net losses. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2) | We had stock options of 14.4 million and 10.3 million      shares for the year ended December 31, 2008 and 2007, respectively.      The assumed conversion of our Series A Convertible Preferred Stock is      49.6 million and our Series B Convertible Preferred Stock is      9.1 million shares. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Table of Contents

Index to Financial Statements

| 29. | Quarterly Results      of Operations (Unaudited) |
|-----|--------------------------------------------------|

|                                                                                                                                  |              |               |         |        |              |        |         |                   |        |        |                  |        |        |        |          |        |
|----------------------------------------------------------------------------------------------------------------------------------|--------------|---------------|---------|--------|--------------|--------|---------|-------------------|--------|--------|------------------|--------|--------|--------|----------|--------|
| (In thousands, except per      share data)                                                                                       |    | March 30 |    |   | June 29 |   |    | September 28 |   |   | December 31 |   |
| 2008 Two-Class      Method                                                                                                  |    |               |         |        |         |        |         |                   |   |        |                  |        |   |        |          |        |
| Net income (loss)                                                                                                           |    | $             | 4,192   |   |         | $      | (11,859 | )                 |   | $      | (23,908          | )      |   | $      | (16,898  | )      |
| Less: accretion of convertible      preferred stock and beneficial conversion feature                                       |    |          | 1,255   |   |         |   | 1,255   |              |   |   | 1,255            |   |   |   | 1,256    |   |
| Less: preferred stock      dividends                                                                                        |    |          | 1,191   |   |         |   | 1,625   |              |   |   | 1,951            |   |   |   | 2,043    |   |
|                                                                                                                                  |    |          |    |   |         |   |    |              |   |   |             |   |   |   |     |   |
| Net income (loss) applicable      to common stockholders                                                                    |    | $             | 1,746   |   |         | $      | (14,739 | )                 |   | $      | (27,114          | )      |   | $      | (20,197  | )      |
| Income (loss) from      discontinued operations                                                                             |    |          | 6,146   |   |         |   | (5,769  | )                 |   |   | 403              |   |   |   | (11      | )      |
|                                                                                                                                  |    |          |    |   |         |   |    |              |   |   |             |   |   |   |     |   |
| Net loss from continuing      operations                                                                                    |    |          | (4,400  | )      |         |   | (8,970  | )                 |   |   | (27,517          | )      |   |   | (20,186  | )      |
|                                                                                                                                  |    |          |    |   |         |   |    |              |   |   |             |   |   |   |     |   |
| Amount allocable to common      stockholders from continuing operations                                                     |    |          | 100     | %      |         |   | 100     | %                 |   |   | 100              | %      |   |   | 100      | %      |
| Amount allocable to common      stockholders from discontinued operations                                                   |    |          | 41      | %      |         |   | 100     | %                 |   |   | 41               | %      |   |   | 100      | %      |
| Net loss from continuing      operations allocated to common stockholders                                                   |    |          | (4,400  | )      |         |   | (8,970  | )                 |   |   | (27,517          | )      |   |   | (20,186  | )      |
| Net income (loss) from      discontinued operations allocable to common stockholders                                        |    | $             | 2,515   |   |         | $      | (5,769  | )                 |   | $      | 165              |   |   | $      | (11      | )      |
|                                                                                                                                  |              |               |         |        |
| Basic weighted average number      of common shares                                                                         |    |          | 40,624  |   |         |   | 40,624  |              |   |   | 40,624           |   |   |   | 40,624   |   |
| Diluted weighted average      number of common shares                                                                       |    |          | 40,812  |   |         |   | 40,624  |              |   |   | 40,664           |   |   |   | 40,664   |   |
|                                                                                                                                  |              |               |         |        |
| Basic income (loss) per share      – Two-Class Method                                                                 |    |               |         |        |         |        |         |                   |   |        |                  |        |   |        |          |        |
| Continuing      operations                                                                                                  |    | $             | (0.11   | )      |         | $      | (0.22   | )                 |   | $      | (0.68            | )      |   | $      | (0.50    | )      |
| Discontinued      operations                                                                                                |    |          | 0.06    |   |         |   | (0.14   | )                 |   |   | 0.00             |   |   |   | 0.00     |   |
|                                                                                                                                  |    |          |    |   |         |   |    |              |   |   |             |   |   |   |     |   |
| Net loss per common      share                                                                                              |    | $             | (0.05   | )      |         | $      | (0.36   | )                 |   | $      | (0.68            | )      |   | $      | (0.50    | )      |
|                                                                                                                                  |    |          |    |   |         |   |    |              |   |   |             |   |   |   |     |   |
|                                                                                                                                  |              |               |         |        |
| Diluted income (loss) per      share – Two-Class Method                                                               |    |               |         |        |         |        |         |                   |   |        |                  |        |   |        |          |        |
| Continuing      operations                                                                                                  |    | $             | (0.11   | )      |         | $      | (0.22   | )                 |   | $      | (0.68            | )      |   | $      | (0.50    | )      |
| Discontinued      operations                                                                                                |    |          | 0.06    |   |         |   | (0.14   | )                 |   |   | 0.00             |   |   |   | 0.00     |   |
|                                                                                                                                  |    |          |    |   |         |   |    |              |   |   |             |   |   |   |     |   |
| Net loss per common      share                                                                                              |    | $             | (0.05   | )      |         | $      | (0.36   | )                 |   | $      | (0.68            | )      |   | $      | (0.50    | )      |
|                                                                                                                                  |    |          |    |   |         |   |    |              |   |   |             |   |   |   |     |   |
|                                                                                                                                  |              |               |         |        |
| 2007 Two Class      Method                                                                                                  |    |               |         |        |         |        |         |                   |   |        |                  |        |   |        |          |        |
|                                                                                                                                  |              |               |         |        |
| Net income (loss) available to      common stockholders                                                                     |    | $             | (3,002  | )      |         | $      | 13,299  |              |   | $      | (3,477           | )      |   | $      | (105,047 | )      |
| Plus: accretion of convertible      preferred stock and beneficial conversion feature                                       |    |          | 852     |   |         |   | 1,255   |              |   |   | 1,255            |   |   |   | 1,256    |   |
| Plus: preferred stock      dividends                                                                                        |    |          | 10,118  |   |         |   | 1,000   |              |   |   | 1,104            |   |   |   | 1,062    |   |
|                                                                                                                                  |    |          |    |   |         |   |    |              |   |   |             |   |   |   |     |   |
| Income (loss) available to      common stockholders in addition to assumed conversions                                      |    | $             | (13,972 | )      |         | $      | 11,044  |              |   | $      | (5,836           | )      |   | $      | (107,365 | )      |
|                                                                                                                                  |              |               |         |        |
| Income (loss) from      discontinued operations                                                                             |    |          | 3,034   |   |         |   | 2,388   |              |   |   | 765              |   |   |   | (27,770  | )      |
|                                                                                                                                  |    |          |    |   |         |   |    |              |   |   |             |   |   |   |     |   |
| Net income (loss) from      continuing operations available to common stockholders in addition to      assumed conversions  |    |          | (17,006 | )      |         |   | 8,656   |              |   |   | (6,601           | )      |   |   | (79,595  | )      |
|                                                                                                                                  |    |          |    |   |         |   |    |              |   |   |             |   |   |   |     |   |
| Amount allocable to common      stockholders from continued operations                                                      |    |          | 100     | %      |         |   | 25      | %                 |   |   | 100              | %      |   |   | 100      | %      |
| Amount allocable to common      stockholders from discontinued operations                                                   |    |          | 100     | %      |         |   | 25      | %                 |   |   | 25               | %      |   |   | 100      | %      |
| Net income (loss) from      continuing operations allocable to common stockholders                                          |    | $             | (17,006 | )      |         | $      | 2,164   |              |   | $      | (6,601           | )      |   | $      | (79,595  | )      |
| Net income (loss) from      discontinued operations allocable to common stockholders                                        |    | $             | 3,034   |   |         | $      | 597     |              |   | $      | 191              |   |   | $      | (27,770  | )      |
|                                                                                                                                  |              |               |         |        |
| Basic weighted average number      of common shares                                                                         |    |          | 15,132  |   |         |   | 15,176  |              |   |   | 15,178           |   |   |   | 30,667   |   |
| Diluted weighted average      number of common shares                                                                       |    |          | 15,132  |   |         |   | 15,176  |              |   |   | 15,178           |   |   |   | 30,667   |   |
|                                                                                                                                  |              |               |         |        |
| Basic income (loss) per share      – Two-Class Method                                                                 |    |               |         |        |         |        |         |                   |   |        |                  |        |   |        |          |        |
| Continuing      operations                                                                                                  |    | $             | (1.12   | )      |         | $      | 0.14    |              |   | $      | (0.43            | )      |   | $      | (2.60    | )      |
| Discontinued      operations                                                                                                |    |          | 0.20    |   |         |   | 0.04    |              |   |   | 0.01             |   |   |   | (0.91    | )      |
|                                                                                                                                  |    |          |    |   |         |   |    |              |   |   |             |   |   |   |     |   |
| Net income (loss) per common      share                                                                                     |    | $             | (0.92   | )      |         | $      | 0.18    |              |   | $      | (0.42            | )      |   | $      | (3.51    | )      |
|                                                                                                                                  |    |          |    |   |         |   |    |              |   |   |             |   |   |   |     |   |
|                                                                                                                                  |              |               |         |        |
| Diluted income (loss) per      share – Two-Class Method                                                               |    |               |         |        |         |        |         |                   |   |        |                  |        |   |        |          |        |
| Continuing      operations                                                                                                  |    | $             | (1.12   | )      |         | $      | 0.14    |              |   | $      | (0.43            | )      |   | $      | (2.60    | )      |
| Discontinued      operations                                                                                                |    |          | 0.20    |   |         |   | 0.04    |              |   |   | 0.01             |   |   |   | (0.91    | )      |
|                                                                                                                                  |    |          |    |   |         |   |    |              |   |   |             |   |   |   |     |   |
| Net income (loss) per common      share                                                                                     |    | $             | (0.92   | )      |         | $      | 0.18    |              |   | $      | (0.42            | )      |   | $      | (3.51    | )      |
|                                                                                                                                  |    |          |    |   |         |   |    |              |   |   |             |   |   |   |     |   |

----

Table of Contents

Index to Financial Statements

| 30. | Condensed      Consolidating Financial Information |
|-----|----------------------------------------------------|

----

Table of Contents

Index to Financial Statements

|                                                                                             |              |        |                     |        |                      |        |                     |                           |        |        |                     |        |        |              |                     |        |        |        |                     |        |
|---------------------------------------------------------------------------------------------|--------------|--------|---------------------|--------|----------------------|--------|---------------------|---------------------------|--------|--------|---------------------|--------|--------|--------------|---------------------|--------|--------|--------|---------------------|--------|
| (In      thousands)                                                                         |    | Parent |                |   | SubsidiaryGuarantors |   |                | Non-GuarantorSubsidiaries |   |   | Eliminations        |   |   | Consolidated |                |
| Net sales                                                                              |    | $      | 574,490             |   |                 | $      | 135,014             |                      |   | $      | 120,685             |   |   | $            | (14,388             | )      |   | $      | 815,801             |   |
| Cost of goods      sold                                                                |    |   | 561,537             |   |                 |   | 132,162             |                      |   |   | 109,619             |   |   |         | (14,388             | )      |   |   | 788,930             |   |
|                                                                                             |    |   |                |   |                 |   |                |                      |   |   |                |   |   |         |                |   |   |   |                |   |
| Grossprofit                                                                            |    |   | 12,953              |   |                 |   | 2,852               |                      |   |   | 11,066              |   |   |         | —   |   |   |   | 26,871              |   |
| Selling, general and      administrative expenses                                      |    |   | 22,369              |   |                 |   | 2,345               |                      |   |   | 2,002               |   |   |         | —   |   |   |   | 26,716              |   |
| Net gain on      divestitures                                                          |    |   | (23,588             | )      |                 |   | —   |                      |   |   | (2,760              | )      |   |         | —   |   |   |   | (26,348             | )      |
| Advisory fees and      expenses                                                        |    |   | 984                 |   |                 |   | —   |                      |   |   | —   |   |   |         | —   |   |   |   | 984                 |   |
| Goodwill      impairment                                                               |    |   | —   |   |                 |   | 44,747              |                      |   |   | 1,813               |   |   |         | —   |   |   |   | 46,560              |   |
| Restructuring and impairment      charges                                              |    |   | 4,374               |   |                 |   | —   |                      |   |   | 1,446               |   |   |         | —   |   |   |   | 5,820               |   |
|                                                                                             |    |   |                |   |                 |   |                |                      |   |   |                |   |   |         |                |   |   |   |                |   |
| Operating income      (loss)                                                           |    |   | 8,814               |   |                 |   | (44,240             | )                         |   |   | 8,565               |   |   |         | —   |   |   |   | (26,861             | )      |
| Other expenses      (income):                                                          |    |        |                     |        |                 |        |                     |                           |   |        |                     |        |   |              |                     |        |   |        |                     |        |
| Interest expense,      net                                                             |    |   | 17,815              |   |                 |   | (427                | )                         |   |   | (32                 | )      |   |         | —   |   |   |   | 17,356              |   |
| Amortization      expense                                                              |    |   | 2,698               |   |                 |   | —   |                      |   |   | 356                 |   |   |         | —   |   |   |   | 3,054               |   |
| Loss on sale of      receivables                                                       |    |   | —   |   |                 |   | —   |                      |   |   | 484                 |   |   |         | —   |   |   |   | 484                 |   |
| Embedded derivative mark to      fair value                                            |    |   | —   |   |                 |   | —   |                      |   |   | (3                  | )      |   |         | —   |   |   |   | (3                  | )      |
| Other (income) expense,      net                                                       |    |   | 425                 |   |                 |   | 484                 |                      |   |   | (305                | )      |   |         | —   |   |   |   | 604                 |   |
| Equity in earnings (loss) of      subsidiaries                                         |    |   | (38,944             | )      |                 |   | —   |                      |   |   | —   |   |   |         | 38,944              |   |   |   | —   |   |
|                                                                                             |    |   |                |   |                 |   |                |                      |   |   |                |   |   |         |                |   |   |   |                |   |
| Income (loss) from continuing      operations before minority interest                 |    |   | (51,068             | )      |                 |   | (44,297             | )                         |   |   | 8,065               |   |   |         | 38,944              |   |   |   | (48,356             | )      |
| Minority      interest                                                                 |    |   | 541                 |   |                 |   | —   |                      |   |   | —   |   |   |         | —   |   |   |   | 541                 |   |
| Equity income from      unconsolidated subsidiary                                      |    |   | (332                | )      |                 |   | —   |                      |   |   | —   |   |   |         | —   |   |   |   | (332                | )      |
| Income tax expense      (benefit)                                                      |    |   | (2,035              | )      |                 |   | 469                 |                      |   |   | 2,243               |   |   |         | —   |   |   |   | 677                 |   |
|                                                                                             |    |   |                |   |                 |   |                |                      |   |   |                |   |   |         |                |   |   |   |                |   |
| Income (loss) from continuing      operations                                          |    |   | (49,242             | )      |                 |   | (44,766             | )                         |   |   | 5,822               |   |   |         | 38,944              |   |   |   | (49,242             | )      |
| Income from discontinued      operations                                               |    |   | 769                 |   |                 |   | —   |                      |   |   | —   |   |   |         | —   |   |   |   | 769                 |   |
|                                                                                             |    |   |                |   |                 |   |                |                      |   |   |                |   |   |         |                |   |   |   |                |   |
| Net income      (loss)                                                                 |    |   | (48,473             | )      |                 |   | (44,766             | )                         |   |   | 5,822               |   |   |         | 38,944              |   |   |   | (48,473             | )      |
|                                                                                             |    |   |                |   |                 |   |                |                      |   |   |                |   |   |         |                |   |   |   |                |   |
| Less: Accretion of convertible      preferred stock and beneficial conversion feature  |    |   | 5,021               |   |                 |   | —   |                      |   |   | —   |   |   |         | —   |   |   |   | 5,021               |   |
| Preferred stock      dividends                                                         |    |   | 6,810               |   |                 |   | —   |                      |   |   | —   |   |   |         | —   |   |   |   | 6,810               |   |
|                                                                                             |    |   |                |   |                 |   |                |                      |   |   |                |   |   |         |                |   |   |   |                |   |
| Net income (loss) applicable to      common shares                                     |    | $      | (60,304             | )      |                 | $      | (44,766             | )                         |   | $      | 5,822               |   |   | $            | 38,944              |   |   | $      | (60,304             | )      |
|                                                                                             |    |   |                |   |                 |   |                |                      |   |   |                |   |   |         |                |   |   |   |                |   |

----

Table of Contents

Index to Financial Statements

|                                                                                             |              |        |                     |        |                      |        |                     |                           |        |        |                     |        |        |              |                     |        |        |        |                     |        |
|---------------------------------------------------------------------------------------------|--------------|--------|---------------------|--------|----------------------|--------|---------------------|---------------------------|--------|--------|---------------------|--------|--------|--------------|---------------------|--------|--------|--------|---------------------|--------|
| (In      thousands)                                                                         |    | Parent |                |   | SubsidiaryGuarantors |   |                | Non-GuarantorSubsidiaries |   |   | Eliminations        |   |   | Consolidated |                |
| Net sales                                                                              |    | $      | 876,229             |   |                 | $      | 135,829             |                      |   | $      | 120,895             |   |   | $            | (121,934            | )      |   | $      | 1,011,019           |   |
| Cost of goodssold                                                                      |    |   | 849,732             |   |                 |   | 122,841             |                      |   |   | 110,178             |   |   |         | (121,934            | )      |   |   | 960,817             |   |
|                                                                                             |    |   |                |   |                 |   |                |                      |   |   |                |   |   |         |                |   |   |   |                |   |
|                                                                                             |              |        |                     |        |                      |
| Gross profit                                                                           |    |   | 26,497              |   |                 |   | 12,988              |                      |   |   | 10,717              |   |   |         | —   |   |   |   | 50,202              |   |
| Selling, general and      administrative expenses                                      |    |   | 26,027              |   |                 |   | 2,774               |                      |   |   | 1,627               |   |   |         | —   |   |   |   | 30,428              |   |
| Advisory fees and      expenses                                                        |    |   | 6,014               |   |                 |   | —   |                      |   |   | —   |   |   |         | —   |   |   |   | 6,014               |   |
| Restructuring and other      charges                                                   |    |   | 72,594              |   |                 |   | —   |                      |   |   | 2,503               |   |   |         | —   |   |   |   | 75,097              |   |
|                                                                                             |    |   |                |   |                 |   |                |                      |   |   |                |   |   |         |                |   |   |   |                |   |
|                                                                                             |              |        |                     |        |                      |
| Operating income      (loss)                                                           |    |   | (78,138             | )      |                 |   | 10,214              |                      |   |   | 6,587               |   |   |         | —   |   |   |   | (61,337             | )      |
| Other expenses      (income):                                                          |    |        |                     |        |                 |        |                     |                           |   |        |                     |        |   |              |                     |        |   |        |                     |        |
| Interest expense,      net                                                             |    |   | 13,149              |   |                 |   | (2,994              | )                         |   |   | 11,170              |   |   |         | —   |   |   |   | 21,325              |   |
| Amortization      expense                                                              |    |   | 1,588               |   |                 |   | —   |                      |   |   | 903                 |   |   |         | —   |   |   |   | 2,491               |   |
| Loss on sale of      receivables                                                       |    |   | —   |   |                 |   | —   |                      |   |   | 2,531               |   |   |         | —   |   |   |   | 2,531               |   |
| Embedded derivative mark to      fair value                                            |    |   | (15,755             | )      |                 |   | —   |                      |   |   | —   |   |   |         | —   |   |   |   | (15,755             | )      |
| Other (income) expense,      net                                                       |    |   | 2,381               |   |                 |   | 761                 |                      |   |   | (1,903              | )      |   |         | —   |   |   |   | 1,239               |   |
| Equity in earnings (loss) of      subsidiaries                                         |    |   | (774                | )      |                 |   | —   |                      |   |   | —   |   |   |         | 774                 |   |   |   | —   |   |
|                                                                                             |    |   |                |   |                 |   |                |                      |   |   |                |   |   |         |                |   |   |   |                |   |
|                                                                                             |              |        |                     |        |                      |
| Income (loss) from continuing      operations before income taxes                      |    |   | (80,275             | )      |                 |   | 12,447              |                      |   |   | (6,114              | )      |   |         | 774                 |   |   |   | (73,168             | )      |
| Income tax expense      (benefit)                                                      |    |   | (3,631              | )      |                 |   | 5,586               |                      |   |   | 1,521               |   |   |         | —   |   |   |   | 3,476               |   |
|                                                                                             |    |   |                |   |                 |   |                |                      |   |   |                |   |   |         |                |   |   |   |                |   |
|                                                                                             |              |        |                     |        |                      |
| Net income (loss) from      continuing operations                                      |    |   | (76,644             | )      |                 |   | 6,861               |                      |   |   | (7,635              | )      |   |         | 774                 |   |   |   | (76,644             | )      |
| Loss from discontinued      operations                                                 |    |   | (21,583             | )      |                 |   | —   |                      |   |   | —   |   |   |         | —   |   |   |   | (21,583             | )      |
|                                                                                             |    |   |                |   |                 |   |                |                      |   |   |                |   |   |         |                |   |   |   |                |   |
|                                                                                             |              |        |                     |        |                      |
| Net income (loss)                                                                      |    |   | (98,227             | )      |                 |   | 6,861               |                      |   |   | (7,635              | )      |   |         | 774                 |   |   |   | (98,227             | )      |
|                                                                                             |    |   |                |   |                 |   |                |                      |   |   |                |   |   |         |                |   |   |   |                |   |
|                                                                                             |              |        |                     |        |                      |
| Less: Accretion of convertible      preferred stock and beneficial conversion feature  |    |   | 4,618               |   |                 |   | —   |                      |   |   | —   |   |   |         | —   |   |   |   | 4,618               |   |
| Preferred stock      dividends                                                         |    |   | 13,284              |   |                 |   | —   |                      |   |   | —   |   |   |         | —   |   |   |   | 13,284              |   |
|                                                                                             |    |   |                |   |                 |   |                |                      |   |   |                |   |   |         |                |   |   |   |                |   |
| Net income (loss) applicable      to common shares                                     |    | $      | (116,129            | )      |                 | $      | 6,861               |                      |   | $      | (7,635              | )      |   | $            | 774                 |   |   | $      | (116,129            | )      |
|                                                                                             |    |   |                |   |                 |   |                |                      |   |   |                |   |   |         |                |   |   |   |                |   |

----

Table of Contents

Index to Financial Statements

|                                                                                          |              |        |                     |        |                      |        |                     |                           |        |        |                     |        |        |              |                     |        |        |        |                     |        |
|------------------------------------------------------------------------------------------|--------------|--------|---------------------|--------|----------------------|--------|---------------------|---------------------------|--------|--------|---------------------|--------|--------|--------------|---------------------|--------|--------|--------|---------------------|--------|
| (In      thousands)                                                                      |    | Parent |                |   | SubsidiaryGuarantors |   |                | Non-GuarantorSubsidiaries |   |   | Eliminations        |   |   | Consolidated |                |
| Assets                                                                              |    |        |                     |        |                 |        |                     |                           |   |        |                     |        |   |              |                     |        |   |        |                     |        |
| Current assets                                                                      |    |        |                     |        |                 |        |                     |                           |   |        |                     |        |   |              |                     |        |   |        |                     |        |
| Cash and cash      equivalents                                                      |    | $      | 18,778              |   |                 | $      | —   |                      |   | $      | 14,759              |   |   | $            | —   |   |   | $      | 33,537              |   |
| Restricted cash                                                                     |    |   | 37,173              |   |                 |   | 1                   |                      |   |   | 564                 |   |   |         | —   |   |   |   | 37,738              |   |
| Accounts receivable,      net                                                       |    |   | 4,362               |   |                 |   | 8,338               |                      |   |   | 25,926              |   |   |         | —   |   |   |   | 38,626              |   |
| Inventories                                                                         |    |   | 18,605              |   |                 |   | 23,366              |                      |   |   | 11,313              |   |   |         | —   |   |   |   | 53,284              |   |
| Assets held for      sale                                                           |    |   | 3,680               |   |                 |   | —   |                      |   |   | —   |   |   |         | —   |   |   |   | 3,680               |   |
| Derivative assets                                                                   |    |   | 291                 |   |                 |   | —   |                      |   |   | —   |   |   |         | —   |   |   |   | 291                 |   |
| Prepaid expenses and other      assets                                              |    |   | 1,514               |   |                 |   | 3,575               |                      |   |   | 291                 |   |   |         | —   |   |   |   | 5,380               |   |
|                                                                                          |    |   |                |   |                 |   |                |                      |   |   |                |   |   |         |                |   |   |   |                |   |
| Total current      assets                                                           |    |   | 84,403              |   |                 |   | 35,280              |                      |   |   | 52,853              |   |   |         | —   |   |   |   | 172,536             |   |
| Property, plant and equipment,      net                                             |    |   | 23,033              |   |                 |   | 14,644              |                      |   |   | 14,327              |   |   |         | —   |   |   |   | 52,004              |   |
| Intangible assets and deferred      charges, net                                    |    |   | 2,588               |   |                 |   | 5                   |                      |   |   | 41                  |   |   |         | —   |   |   |   | 2,634               |   |
| Notes receivable                                                                    |    |   | —   |   |                 |   | —   |                      |   |   | 585                 |   |   |         | —   |   |   |   | 585                 |   |
| Investment in unconsolidated      subsidiary                                        |    |   | 9,373               |   |                 |   | —   |                      |   |   | —   |   |   |         | —   |   |   |   | 9,373               |   |
| Investments in      subsidiaries                                                    |    |   | 357,759             |   |                 |   | 325                 |                      |   |   | —   |   |   |         | (358,084            | )      |   |   | —   |   |
|                                                                                          |    |   |                |   |                 |   |                |                      |   |   |                |   |   |         |                |   |   |   |                |   |
| Total assets                                                                        |    | $      | 477,156             |   |                 | $      | 50,254              |                      |   | $      | 67,806              |   |   | $            | (358,084            | )      |   | $      | 237,132             |   |
|                                                                                          |    |   |                |   |                 |   |                |                      |   |   |                |   |   |         |                |   |   |   |                |   |
|                                                                                          |              |        |                     |        |                      |
| Liabilities and Stockholders’      Equity (Deficit)                           |    |        |                     |        |                 |        |                     |                           |   |        |                     |        |   |              |                     |        |   |        |                     |        |
| Current      liabilities                                                            |    |        |                     |        |                 |        |                     |                           |   |        |                     |        |   |              |                     |        |   |        |                     |        |
| Accounts payable                                                                    |    | $      | 16,190              |   |                 | $      | 12,315              |                      |   | $      | 6,208               |   |   | $            | —   |   |   | $      | 34,713              |   |
| Accrued      liabilities                                                            |    |   | 14,352              |   |                 |   | 2,684               |                      |   |   | 1,999               |   |   |         | —   |   |   |   | 19,035              |   |
| Derivative      liabilities                                                         |    |   | 5,415               |   |                 |   | —   |                      |   |   | —   |   |   |         | —   |   |   |   | 5,415               |   |
| Short-term      borrowings                                                          |    |   | 19,745              |   |                 |   | —   |                      |   |   | 14                  |   |   |         | —   |   |   |   | 19,759              |   |
| Deferred income      taxes                                                          |    |   | 1,561               |   |                 |   | (211                | )                         |   |   | 251                 |   |   |         | —   |   |   |   | 1,601               |   |
| Intercompany balances,      net                                                     |    |   | 261,022             |   |                 |   | (239,316            | )                         |   |   | (21,706             | )      |   |         | —   |   |   |   | —   |   |
|                                                                                          |    |   |                |   |                 |   |                |                      |   |   |                |   |   |         |                |   |   |   |                |   |
|                                                                                          |              |        |                     |        |                      |
| Total current      liabilities                                                      |    |   | 318,285             |   |                 |   | (224,528            | )                         |   |   | (13,234             | )      |   |         | —   |   |   |   | 80,523              |   |
| Deferred income taxes,      non-current                                             |    |   | 3,549               |   |                 |   | (3,549              | )                         |   |   | —   |   |   |         | —   |   |   |   | —   |   |
| Long-term debt                                                                      |    |   | 117,911             |   |                 |   | —   |                      |   |   | —   |   |   |         | —   |   |   |   | 117,911             |   |
| Pension      liabilities                                                            |    |   | 45,552              |   |                 |   | —   |                      |   |   | —   |   |   |         | —   |   |   |   | 45,552              |   |
| Postretirement benefit      obligation                                              |    |   | 3,375               |   |                 |   | —   |                      |   |   | 1,287               |   |   |         | —   |   |   |   | 4,662               |   |
| Accrued environmental      remediation                                              |    |   | 9,628               |   |                 |   | —   |                      |   |   | —   |   |   |         | —   |   |   |   | 9,628               |   |
| Other liabilities                                                                   |    |   | 2,981               |   |                 |   | —   |                      |   |   | —   |   |   |         | —   |   |   |   | 2,981               |   |
|                                                                                          |    |   |                |   |                 |   |                |                      |   |   |                |   |   |         |                |   |   |   |                |   |
|                                                                                          |              |        |                     |        |                      |
| Total liabilities                                                                   |    |   | 501,281             |   |                 |   | (228,077            | )                         |   |   | (11,947             | )      |   |         | —   |   |   |   | 261,257             |   |
|                                                                                          |              |        |                     |        |                      |
| Preferred stock                                                                     |    |   | 23,608              |   |                 |   | —   |                      |   |   | —   |   |   |         | —   |   |   |   | 23,608              |   |
| Stockholders’ equity      (deficit)                                           |    |   | (47,733             | )      |                 |   | 278,331             |                      |   |   | 79,753              |   |   |         | (358,084            | )      |   |   | (47,733             | )      |
|                                                                                          |    |   |                |   |                 |   |                |                      |   |   |                |   |   |         |                |   |   |   |                |   |
| Total liabilities, convertible      preferred stock and stockholders’ equity  |    | $      | 477,156             |   |                 | $      | 50,254              |                      |   | $      | 67,806              |   |   | $            | (358,084            | )      |   | $      | 237,132             |   |
|                                                                                          |    |   |                |   |                 |   |                |                      |   |   |                |   |   |         |                |   |   |   |                |   |

----

Table of Contents

Index to Financial Statements

|                                                                                                    |              |        |                     |                      |        |                     |                           |        |        |                     |        |        |              |                     |        |        |        |                     |
|----------------------------------------------------------------------------------------------------|--------------|--------|---------------------|----------------------|--------|---------------------|---------------------------|--------|--------|---------------------|--------|--------|--------------|---------------------|--------|--------|--------|---------------------|
| (In      thousands)                                                                                |    | Parent |           | SubsidiaryGuarantors |   |                | Non-GuarantorSubsidiaries |   |   | Eliminations        |   |   | Consolidated |
| Assets                                                                                        |    |        |                     |            |        |                     |                           |   |        |                     |        |   |              |                     |        |   |        |                     |
| Current assets                                                                                |    |        |                     |            |        |                     |                           |   |        |                     |        |   |              |                     |        |   |        |                     |
| Cash and cash      equivalents                                                                |    | $      | 37,981              |            | $      | —   |                      |   | $      | 25,322              |   |   | $            | —   |   |   | $      | 63,303              |
| Restricted cash                                                                               |    |   | 1,446               |            |   | 1                   |                      |   |   | 679                 |   |   |         | —   |   |   |   | 2,126               |
| Accounts receivable,      net                                                                 |    |   | 56,380              |            |   | 17,860              |                      |   |   | 34,158              |   |   |         | —   |   |   |   | 108,398             |
| Inventories                                                                                   |    |   | 38,278              |            |   | 39,511              |                      |   |   | 26,953              |   |   |         | —   |   |   |   | 104,742             |
| Assets held for      sale                                                                     |    |   | 10,622              |            |   | 25,447              |                      |   |   | 6,932               |   |   |         | —   |   |   |   | 43,001              |
| Derivative assets                                                                             |    |   | 975                 |            |   | —   |                      |   |   | —   |   |   |         | —   |   |   |   | 975                 |
| Prepaid expenses and other      assets                                                        |    |   | 6,092               |            |   | 3,990               |                      |   |   | 1,479               |   |   |         | —   |   |   |   | 11,561              |
|                                                                                                    |    |   |                |            |   |                |                      |   |   |                |   |   |         |                |   |   |   |                |
|                                                                                                    |              |        |                     |                      |        |
| Total current      assets                                                                     |    |   | 151,774             |            |   | 86,809              |                      |   |   | 95,523              |   |   |         | —   |   |   |   | 334,106             |
| Property, plant and equipment,      net                                                       |    |   | 25,641              |            |   | 15,001              |                      |   |   | 28,436              |   |   |         | —   |   |   |   | 69,078              |
| Goodwill                                                                                      |    |   | —   |            |   | 44,747              |                      |   |   | 1,956               |   |   |         | —   |   |   |   | 46,703              |
| Intangible assets and deferred      charges, net                                              |    |   | 3,774               |            |   | 5                   |                      |   |   | 505                 |   |   |         | —   |   |   |   | 4,284               |
| Deferred income taxes,      non-current                                                       |    |   | 6,493               |            |   | (6,493              | )                         |   |   | —   |   |   |         | —   |   |   |   | —   |
| Notes receivable                                                                              |    |   | —   |            |   | —   |                      |   |   | 815                 |   |   |         | —   |   |   |   | 815                 |
| Investments in      subsidiaries                                                              |    |   | 445,001             |            |   | 325                 |                      |   |   | —   |   |   |         | (445,326            | )      |   |   | —   |
|                                                                                                    |    |   |                |            |   |                |                      |   |   |                |   |   |         |                |   |   |   |                |
|                                                                                                    |              |        |                     |                      |        |
| Total assets                                                                                  |    | $      | 632,683             |            | $      | 140,394             |                      |   | $      | 127,235             |   |   | $            | (445,326            | )      |   | $      | 454,986             |
|                                                                                                    |    |   |                |            |   |                |                      |   |   |                |   |   |         |                |   |   |   |                |
|                                                                                                    |              |        |                     |                      |        |
| Liabilities and Stockholders’      Equity (Deficit)                                     |    |        |                     |            |        |                     |                           |   |        |                     |        |   |              |                     |        |   |        |                     |
| Current      liabilities                                                                      |    |        |                     |            |        |                     |                           |   |        |                     |        |   |              |                     |        |   |        |                     |
| Accounts payable                                                                              |    | $      | 19,575              |            | $      | 19,042              |                      |   | $      | 17,244              |   |   | $            | —   |   |   | $      | 55,861              |
| Accrued      liabilities                                                                      |    |   | 17,485              |            |   | 2,411               |                      |   |   | 6,176               |   |   |         | —   |   |   |   | 26,072              |
| Derivative      liabilities                                                                   |    |   | 925                 |            |   | —   |                      |   |   | —   |   |   |         | —   |   |   |   | 925                 |
| Liabilities of discontinued      operations                                                   |    |   | —   |            |   | 1,853               |                      |   |   | —   |   |   |         | —   |   |   |   | 1,853               |
| Short-term      borrowings                                                                    |    |   | 89,898              |            |   | —   |                      |   |   | 1,041               |   |   |         | —   |   |   |   | 90,939              |
| Deferred income      taxes                                                                    |    |   | 1,000               |            |   | (525                | )                         |   |   | 202                 |   |   |         | —   |   |   |   | 677                 |
| Intercompany balances,      net                                                               |    |   | 251,703             |            |   | (202,677            | )                         |   |   | (49,026             | )      |   |         | —   |   |   |   | —   |
|                                                                                                    |    |   |                |            |   |                |                      |   |   |                |   |   |         |                |   |   |   |                |
|                                                                                                    |              |        |                     |                      |        |
| Total current      liabilities                                                                |    |   | 380,586             |            |   | (179,896            | )                         |   |   | (24,363             | )      |   |         | —   |   |   |   | 176,327             |
| Deferred income taxes,      non-current                                                       |    |   | 2,375               |            |   | —   |                      |   |   | 689                 |   |   |         | —   |   |   |   | 3,064               |
| Long-term debt                                                                                |    |   | 146,021             |            |   | —   |                      |   |   | —   |   |   |         | —   |   |   |   | 146,021             |
| Pension      liabilities                                                                      |    |   | 17,616              |            |   | —   |                      |   |   | —   |   |   |         | —   |   |   |   | 17,616              |
| Postretirement benefits      obligation                                                       |    |   | 5,176               |            |   | —   |                      |   |   | 13,600              |   |   |         | —   |   |   |   | 18,776              |
| Accrued environmental      remediation                                                        |    |   | 9,185               |            |   | —   |                      |   |   | 12,273              |   |   |         | —   |   |   |   | 21,458              |
| Other liabilities                                                                             |    |   | 112                 |            |   | —   |                      |   |   | —   |   |   |         | —   |   |   |   | 112                 |
|                                                                                                    |    |   |                |            |   |                |                      |   |   |                |   |   |         |                |   |   |   |                |
|                                                                                                    |              |        |                     |                      |        |
| Total liabilities                                                                             |    |   | 561,071             |            |   | (179,896            | )                         |   |   | 2,199               |   |   |         | —   |   |   |   | 383,374             |
| Preferred stock                                                                               |    |   | 4,393               |            |   | —   |                      |   |   | —   |   |   |         | —   |   |   |   | 4,393               |
| Stockholders’ equity      (deficit)                                                     |    |   | 67,219              |            |   | 320,290             |                      |   |   | 125,036             |   |   |         | (445,326            | )      |   |   | 67,219              |
|                                                                                                    |    |   |                |            |   |                |                      |   |   |                |   |   |         |                |   |   |   |                |
|                                                                                                    |              |        |                     |                      |        |
| Total liabilities, convertible      preferred stock and stockholders’ equity (deficit)  |    | $      | 632,683             |            | $      | 140,394             |                      |   | $      | 127,235             |   |   | $            | (445,326            | )      |   | $      | 454,986             |
|                                                                                                    |    |   |                |            |   |                |                      |   |   |                |   |   |         |                |   |   |   |                |

----

Table of Contents

Index to Financial Statements

|                                                                           |              |        |                     |        |                      |        |                     |                           |        |        |                     |        |        |              |                     |        |        |        |                     |        |
|---------------------------------------------------------------------------|--------------|--------|---------------------|--------|----------------------|--------|---------------------|---------------------------|--------|--------|---------------------|--------|--------|--------------|---------------------|--------|--------|--------|---------------------|--------|
| (In      thousands)                                                       |    | Parent |                |   | SubsidiaryGuarantors |   |                | Non-GuarantorSubsidiaries |   |   | Eliminations        |   |   | Consolidated |                |
| Operating      Activities:                                           |    |        |                     |        |                 |        |                     |                           |   |        |                     |        |   |              |                     |        |   |        |                     |        |
| Net income (loss) from      continuing operations                    |    | $      | (49,242             | )      |                 | $      | (44,766             | )                         |   | $      | 5,822               |   |   | $            | 38,944              |   |   | $      | (49,242             | )      |
| Net income (loss) from      discontinued operations                  |    |   | 769                 |   |                 |   | —   |                      |   |   | —   |   |   |         | —   |   |   |   | 769                 |   |
|                                                                           |    |   |                |   |                 |   |                |                      |   |   |                |   |   |         |                |   |   |   |                |   |
|                                                                           |              |        |                     |        |                      |
| Net income (loss)                                                    |    | $      | (48,473             | )      |                 | $      | (44,766             | )                         |   | $      | 5,822               |   |   | $            | 38,944              |   |   | $      | (48,473             | )      |
| Depreciation                                                         |    |   | 3,602               |   |                 |   | 1,995               |                      |   |   | 1,458               |   |   |         | —   |   |   |   | 7,055               |   |
| Amortization                                                         |    |   | 2,708               |   |                 |   | —   |                      |   |   | 471                 |   |   |         | —   |   |   |   | 3,179               |   |
| Deferred income      taxes                                           |    |   | 8,737               |   |                 |   | (10,127             | )                         |   |   | (559                | )      |   |         | —   |   |   |   | (1,949              | )      |
| Stock compensation      expense                                      |    |   | 847                 |   |                 |   | —   |                      |   |   | —   |   |   |         | —   |   |   |   | 847                 |   |
| Impairment of assets held for      sale and Goodwill                 |    |   | 390                 |   |                 |   | 44,747              |                      |   |   | 1,813               |   |   |         | —   |   |   |   | 46,950              |   |
| Net gain on      divestitures                                        |    |   | (33,409             | )      |                 |   | —   |                      |   |   | 7,061               |   |   |         | —   |   |   |   | (26,348             | )      |
| Non-cash environmental and      other restructuring charges          |    |   | 1,985               |   |                 |   | —   |                      |   |   | (2,544              | )      |   |         | —   |   |   |   | (559                | )      |
| Gain on early extinguishment      of debt                            |    |   | (858                | )      |                 |   | —   |                      |   |   | —   |   |   |         | —   |   |   |   | (858                | )      |
| Minority interest                                                    |    |   | 541                 |   |                 |   | —   |                      |   |   | —   |   |   |         | —   |   |   |   | 541                 |   |
| Equity in earnings of      unconsolidated subsidiary                 |    |   | (332                | )      |                 |   | —   |                      |   |   | —   |   |   |         | —   |   |   |   | (332                | )      |
| Equity in earnings of      subsidiaries                              |    |   | 38,944              |   |                 |   | —   |                      |   |   | —   |   |   |         | (38,944             | )      |   |   | —   |   |
| Changes in operating assets      and liabilities                     |    |   | 73,357              |   |                 |   | 1,550               |                      |   |   | (36,447             | )      |   |         | —   |   |   |   | 38,460              |   |
|                                                                           |    |   |                |   |                 |   |                |                      |   |   |                |   |   |         |                |   |   |   |                |   |
| Net cash provided by (used in)      continuing operating activities  |    |   | 47,270              |   |                 |   | (6,601              | )                         |   |   | (22,925             | )      |   |         | —   |   |   |   | 17,744              |   |
| Net cash used in discontinued      operating activities              |    |   | (9,754              | )      |                 |   | —   |                      |   |   | —   |   |   |         | —   |   |   |   | (9,754              | )      |
|                                                                           |    |   |                |   |                 |   |                |                      |   |   |                |   |   |         |                |   |   |   |                |   |
| Net cash provided by (used in)      operating activities             |    |   | 37,516              |   |                 |   | (6,601              | )                         |   |   | (22,925             | )      |   |         | —   |   |   |   | 7,990               |   |
|                                                                           |              |        |                     |        |                      |
| Investing      Activities:                                           |    |        |                     |        |                 |        |                     |                           |   |        |                     |        |   |              |                     |        |   |        |                     |        |
| Additions to property, plant,      and equipment                     |    |   | (1,516              | )      |                 |   | (1,599              | )                         |   |   | (706                | )      |   |         | —   |   |   |   | (3,821              | )      |
| Proceeds from sale of      assets                                    |    |   | 7,012               |   |                 |   | —   |                      |   |   | (572                | )      |   |         | —   |   |   |   | 6,440               |   |
| Purchase of      patents                                             |    |   | (368                | )      |                 |   | —   |                      |   |   | —   |   |   |         | —   |   |   |   | (368                | )      |
| Proceeds from sale of interest      in Chinese subsidiary            |    |   | 19,419              |   |                 |   | —   |                      |   |   | —   |   |   |         | —   |   |   |   | 19,419              |   |
| Change in restricted      cash                                       |    |   | (35,727             | )      |                 |   | —   |                      |   |   | 115                 |   |   |         | —   |   |   |   | (35,612             | )      |
|                                                                           |    |   |                |   |                 |   |                |                      |   |   |                |   |   |         |                |   |   |   |                |   |
| Net cash used in continuing      investing activities                |    |   | (11,180             | )      |                 |   | (1,599              | )                         |   |   | (1,163              | )      |   |         | —   |   |   |   | (13,942             | )      |
| Net cash provided by      discontinued investing activities          |    |   | 64,796              |   |                 |   | —   |                      |   |   | —   |   |   |         | —   |   |   |   | 64,796              |   |
|                                                                           |    |   |                |   |                 |   |                |                      |   |   |                |   |   |         |                |   |   |   |                |   |
| Net cash provided by (used in)      investing activities             |    |   | 53,616              |   |                 |   | (1,599              | )                         |   |   | (1,163              | )      |   |         | —   |   |   |   | 50,854              |   |
|                                                                           |              |        |                     |        |                      |
| Financing      Activities:                                           |    |        |                     |        |                 |        |                     |                           |   |        |                     |        |   |              |                     |        |   |        |                     |        |
| Issuance of preferred      stock                                     |    |   | 14,194              |   |                 |   | —   |                      |   |   | —   |   |   |         | —   |   |   |   | 14,194              |   |
| Financing fees and expenses      paid                                |    |   | (1,734              | )      |                 |   | —   |                      |   |   | (161                | )      |   |         | —   |   |   |   | (1,895              | )      |
| Payment of      dividends                                            |    |   | (2,042              | )      |                 |   | —   |                      |   |   | —   |   |   |         | —   |   |   |   | (2,042              | )      |
| Payments under revolving      credit facilities and other debt       |    |   | —   |   |                 |   | —   |                      |   |   | (968                | )      |   |         | —   |   |   |   | (968                | )      |
| Purchase of senior      notes                                        |    |   | (97,661             | )      |                 |   | —   |                      |   |   | —   |   |   |         | —   |   |   |   | (97,661             | )      |
| Intercompany borrowings      (payments)                              |    |   | 974                 |   |                 |   | 8,200               |                      |   |   | (9,174              | )      |   |         | —   |   |   |   | —   |   |
|                                                                           |    |   |                |   |                 |   |                |                      |   |   |                |   |   |         |                |   |   |   |                |   |
| Net cash provided by (used in)      continuing financing activities  |    |   | (86,269             | )      |                 |   | 8,200               |                      |   |   | (10,303             | )      |   |         | —   |   |   |   | (88,372             | )      |
| Net cash provided by      discontinued financing activities          |    |   | 1                   |   |                 |   | —   |                      |   |   | —   |   |   |         | —   |   |   |   | 1                   |   |
|                                                                           |    |   |                |   |                 |   |                |                      |   |   |                |   |   |         |                |   |   |   |                |   |
| Net cash provided by (used in)      financing activities             |    |   | (86,268             | )      |                 |   | 8,200               |                      |   |   | (10,303             | )      |   |         | —   |   |   |   | (88,371             | )      |
| Effect of exchange rate on      cash and cash equivalents            |    |   | (24,067             | )      |                 |   | —   |                      |   |   | 23,828              |   |   |         | —   |   |   |   | (239                | )      |
|                                                                           |    |   |                |   |                 |   |                |                      |   |   |                |   |   |         |                |   |   |   |                |   |
| Net decrease in cash and cash      equivalents                       |    |   | (19,203             | )      |                 |   | —   |                      |   |   | (10,563             | )      |   |         | —   |   |   |   | (29,766             | )      |
| Cash and cash equivalents at      beginning of period                |    |   | 37,981              |   |                 |   | —   |                      |   |   | 25,322              |   |   |         | —   |   |   |   | 63,303              |   |
|                                                                           |    |   |                |   |                 |   |                |                      |   |   |                |   |   |         |                |   |   |   |                |   |
| Cash and cash equivalents at      end of period                      |    | $      | 18,778              |   |                 | $      | —   |                      |   | $      | 14,759              |   |   | $            | —   |   |   | $      | 33,537              |   |
|                                                                           |    |   |                |   |                 |   |                |                      |   |   |                |   |   |         |                |   |   |   |                |   |

----

Table of Contents

Index to Financial Statements

|                                                                           |              |        |                     |        |                      |        |                     |                           |        |        |                     |        |        |              |                     |        |        |        |                     |        |
|---------------------------------------------------------------------------|--------------|--------|---------------------|--------|----------------------|--------|---------------------|---------------------------|--------|--------|---------------------|--------|--------|--------------|---------------------|--------|--------|--------|---------------------|--------|
| (In      thousands)                                                       |    | Parent |                |   | SubsidiaryGuarantors |   |                | Non-GuarantorSubsidiaries |   |   | Eliminations        |   |   | Consolidated |                |
| Operating      Activities                                            |    |        |                     |        |                 |        |                     |                           |   |        |                     |        |   |              |                     |        |   |        |                     |        |
| Income (loss) from continuing      operations                        |    | $      | (76,644             | )      |                 | $      | 6,861               |                      |   | $      | (7,635              | )      |   | $            | 774                 |   |   | $      | (76,644             | )      |
| Loss from discontinued      operations                               |    |   | (21,583             | )      |                 |   | —   |                      |   |   | —   |   |   |         | —   |   |   |   | (21,583             | )      |
|                                                                           |    |   |                |   |                 |   |                |                      |   |   |                |   |   |         |                |   |   |   |                |   |
| Net income (loss)                                                    |    | $      | (98,227             | )      |                 | $      | 6,861               |                      |   | $      | (7,635              | )      |   | $            | 774                 |   |   | $      | (98,227             | )      |
| Depreciation                                                         |    |   | 6,172               |   |                 |   | 2,148               |                      |   |   | 1,208               |   |   |         | —   |   |   |   | 9,528               |   |
| Amortization                                                         |    |   | 1,665               |   |                 |   | —   |                      |   |   | 921                 |   |   |         | —   |   |   |   | 2,586               |   |
| Deferred income      taxes                                           |    |   | 5,953               |   |                 |   | (3,113              | )                         |   |   | (73                 | )      |   |         | —   |   |   |   | 2,767               |   |
| Impairment of assets held for      sale                              |    |   | 48,983              |   |                 |   | —   |                      |   |   | —   |   |   |         | —   |   |   |   | 48,983              |   |
| Loss on disposal of fixed      assets                                |    |   | (1                  | )      |                 |   | 40                  |                      |   |   | 7                   |   |   |         | —   |   |   |   | 46                  |   |
| Non-cash environmental,      restructuring and other charges         |    |   | 8,482               |   |                 |   | —   |                      |   |   | 2,095               |   |   |         | —   |   |   |   | 10,577              |   |
| Change in fair value of      embedded derivative                     |    |   | (15,755             | )      |                 |   | —   |                      |   |   | —   |   |   |         | —   |   |   |   | (15,755             | )      |
| Stock compensation      expense                                      |    |   | 2,629               |   |                 |   | —   |                      |   |   | —   |   |   |         | —   |   |   |   | 2,629               |   |
| Purchase of accounts      receivable                                 |    |   | —   |   |                 |   | —   |                      |   |   | (43,882             | )      |   |         | —   |   |   |   | (43,882             | )      |
| Equity in earnings of      subsidiaries                              |    |   | 774                 |   |                 |   | —   |                      |   |   | —   |   |   |         | (774                | )      |   |   | —   |   |
| Changes in operating assets      and liabilities                     |    |   | (42,589             | )      |                 |   | (5,214              | )                         |   |   | 72,166              |   |   |         | —   |   |   |   | 24,363              |   |
|                                                                           |    |   |                |   |                 |   |                |                      |   |   |                |   |   |         |                |   |   |   |                |   |
|                                                                           |              |        |                     |        |                      |
| Net cash provided by (used in)      continuing operating activities  |    |   | (60,331             | )      |                 |   | 722                 |                      |   |   | 24,807              |   |   |         | —   |   |   |   | (34,802             | )      |
| Net cash provided by      discontinued operating activities          |    |   | 11,588              |   |                 |   | —   |                      |   |   | —   |   |   |         | —   |   |   |   | 11,588              |   |
|                                                                           |    |   |                |   |                 |   |                |                      |   |   |                |   |   |         |                |   |   |   |                |   |
|                                                                           |              |        |                     |        |                      |
| Net cash provided by (used in)      operating activities             |    |   | (48,743             | )      |                 |   | 722                 |                      |   |   | 24,807              |   |   |         | —   |   |   |   | (23,214             | )      |
|                                                                           |              |        |                     |        |                      |
| Investing      Activities                                            |    |        |                     |        |                 |        |                     |                           |   |        |                     |        |   |              |                     |        |   |        |                     |        |
| Additions to property, plant      and equipment                      |    |   | (323                | )      |                 |   | (641                | )                         |   |   | (1,744              | )      |   |         | —   |   |   |   | (2,708              | )      |
| Proceeds from sale of      assets                                    |    |   | 375                 |   |                 |   | —   |                      |   |   | —   |   |   |         | —   |   |   |   | 375                 |   |
| Purchase of      patents                                             |    |   | (176                | )      |                 |   | —   |                      |   |   | —   |   |   |         | —   |   |   |   | (176                | )      |
| Change in restricted      cash                                       |    |   | 2,514               |   |                 |   | —   |                      |   |   | 989                 |   |   |         | —   |   |   |   | 3,503               |   |
| Investment      purchases                                            |    |   | (1,618              | )      |                 |   | —   |                      |   |   | —   |   |   |         | —   |   |   |   | (1,618              | )      |
|                                                                           |    |   |                |   |                 |   |                |                      |   |   |                |   |   |         |                |   |   |   |                |   |
|                                                                           |              |        |                     |        |                      |
| Net cash used in continuing      investing activities                |    |   | 772                 |   |                 |   | (641                | )                         |   |   | (755                | )      |   |         | —   |   |   |   | (624                | )      |
| Net cash used in discontinued      investing activities              |    |   | (1,309              | )      |                 |   | —   |                      |   |   | —   |   |   |         | —   |   |   |   | (1,309              | )      |
|                                                                           |    |   |                |   |                 |   |                |                      |   |   |                |   |   |         |                |   |   |   |                |   |
|                                                                           |              |        |                     |        |                      |
| Net cash used in investing      activities                           |    |   | (537                | )      |                 |   | (641                | )                         |   |   | (755                | )      |   |         | —   |   |   |   | (1,933              | )      |
|                                                                           |              |        |                     |        |                      |
| Financing      Activities                                            |    |        |                     |        |                 |        |                     |                           |   |        |                     |        |   |              |                     |        |   |        |                     |        |
| Issuance of preferred      stock                                     |    |   | 45,179              |   |                 |   | —   |                      |   |   | —   |   |   |         | —   |   |   |   | 45,179              |   |
| Proceeds from common stock      rights offering                      |    |   | 27,510              |   |                 |   | —   |                      |   |   | —   |   |   |         | —   |   |   |   | 27,510              |   |
| Financing fees and expenses      paid                                |    |   | (213                | )      |                 |   | —   |                      |   |   | 103                 |   |   |         | —   |   |   |   | (110                | )      |
| Payment of      dividends                                            |    |   | (2,958              | )      |                 |   | —   |                      |   |   | —   |   |   |         | —   |   |   |   | (2,958              | )      |
| Payments under revolving      credit facilities and other debt       |    |   | (1,971              | )      |                 |   | (86                 | )                         |   |   | (1,606              | )      |   |         | —   |   |   |   | (3,663              | )      |
| Borrowings from revolving      credit facilities and other debt      |    |   | —   |   |                 |   | —   |                      |   |   | 230                 |   |   |         | —   |   |   |   | 230                 |   |
| Other financing      activities                                      |    |   | 77                  |   |                 |   | —   |                      |   |   | —   |   |   |         | —   |   |   |   | 77                  |   |
| Intercompany borrowings      (payments)                              |    |   | 21,213              |   |                 |   | 5                   |                      |   |   | (21,218             | )      |   |         | —   |   |   |   | —   |   |
|                                                                           |    |   |                |   |                 |   |                |                      |   |   |                |   |   |         |                |   |   |   |                |   |
| Net cash provided by (used in)      continuing financing activities  |    |   | 88,837              |   |                 |   | (81                 | )                         |   |   | (22,491             | )      |   |         | —   |   |   |   | 66,265              |   |
| Net cash used in discontinued      financing activities              |    |   | (24                 | )      |                 |   | —   |                      |   |   | —   |   |   |         | —   |   |   |   | (24                 | )      |
|                                                                           |    |   |                |   |                 |   |                |                      |   |   |                |   |   |         |                |   |   |   |                |   |
|                                                                           |              |        |                     |        |                      |
| Net cash provided by (used in)      financing activities             |    |   | 88,813              |   |                 |   | (81                 | )                         |   |   | (22,491             | )      |   |         | —   |   |   |   | 66,241              |   |
| Effect of exchange rate on      cash and equivalents                 |    |   | (4,311              | )      |                 |   | —   |                      |   |   | 9,166               |   |   |         | —   |   |   |   | 4,855               |   |
|                                                                           |    |   |                |   |                 |   |                |                      |   |   |                |   |   |         |                |   |   |   |                |   |
|                                                                           |              |        |                     |        |                      |
| Net increase in cash and      equivalents                            |    |   | 35,222              |   |                 |   | —   |                      |   |   | 10,727              |   |   |         | —   |   |   |   | 45,949              |   |
| Cash and cash equivalents at      beginning of period                |    |   | 2,759               |   |                 |   | —   |                      |   |   | 14,595              |   |   |         | —   |   |   |   | 17,354              |   |
|                                                                           |    |   |                |   |                 |   |                |                      |   |   |                |   |   |         |                |   |   |   |                |   |
|                                                                           |              |        |                     |        |                      |
| Cash and equivalents at end of      period                           |    | $      | 37,981              |   |                 | $      | —   |                      |   | $      | 25,322              |   |   | $            | —   |   |   | $      | 63,303              |   |
|                                                                           |    |   |                |   |                 |   |                |                      |   |   |                |   |   |         |                |   |   |   |                |   |

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Table of Contents

Index to Financial Statements

| 31. | Preferred Stock      and Embedded Derivatives |
|-----|-----------------------------------------------|

| 32. | Related-Party      Transactions |
|-----|---------------------------------|

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Table of Contents

Index to Financial Statements

| 33. | Subsequent      Events |
|-----|------------------------|

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Table of Contents

Index to Financial Statements

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Table of Contents

Index to Financial Statements

Reportof Independent Registered Public Accounting Firm 

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Table of Contents

Index to Financial Statements

|                                                        |              |                                |              |                                      |        |         |                              |        |        |                     |        |        |                          |                     |        |        |   |        |
|--------------------------------------------------------|--------------|--------------------------------|--------------|--------------------------------------|--------|---------|------------------------------|--------|--------|---------------------|--------|--------|--------------------------|---------------------|--------|--------|---|--------|
| Description                                            |    | BalanceBeginningof      Period |    | Charged toCost      andExpenses |   |    | Charged toOtherAccounts |   |   | Deductions          |   |   | BalanceEnd      ofPeriod |
| (In      thousands)                                    |    |                           |    |                                 |   |    |                         |   |   |                |   |   |                     |
| YEAR ENDED DECEMBER 31,      2008:                |    |                                |              |                            |        |         |                              |   |        |                     |        |   |                          |                     |        |   |   |        |
|                                                        |              |                                |              |                                      |        |
| Reserve for sales returns and      allowances     |    | $                              | 386          |                            | $      | (252    | )                            |   | $      | —   |   |   | $                        | (11                 | )      |   | $ | 123    |
|                                                        |              |                                |              |                                      |        |
| Allowances for doubtful      accounts             |    | $                              | 613          |                            | $      | (172    | )                            |   | $      | —   |   |   | $                        | 1                   |   |   | $ | 442    |
|                                                        |              |                                |              |                                      |        |
| Deferred tax valuation      allowance             |    | $                              | 44,681       |                            | $      | (12,158 | )                            |   | $      | (3,025              | )      |   | $                        | —   |   |   | $ | 29,498 |
| Maintenance, Repair and      Operations reserve   |    | $                              | 8,436        |                            | $      | 1,220   |                         |   | $      | (2,128              | )      |   | $                        | —   |   |   | $ | 7,528  |
|                                                        |              |                                |              |                                      |        |
| YEAR ENDED DECEMBER 31,      2007:                |    |                                |              |                            |        |         |                              |   |        |                     |        |   |                          |                     |        |   |   |        |
|                                                        |              |                                |              |                                      |        |
| Reserve for sales returns and      allowances     |    | $                              | 205          |                            | $      | 173     |                         |   | $      | —   |   |   | $                        | 8                   |   |   | $ | 386    |
|                                                        |              |                                |              |                                      |        |
| Allowances for doubtful      accounts             |    | $                              | 460          |                            | $      | 91      |                         |   | $      | —   |   |   | $                        | 62                  |   |   | $ | 613    |
|                                                        |              |                                |              |                                      |        |
| Deferred tax valuation      allowance             |    | $                              | 56,339       |                            | $      | 32,342  |                         |   | $      | (44,000             | )      |   | $                        | —   |   |   | $ | 44,681 |
| Maintenance, Repair, and      Operations reserve  |    | $                              | 5,753        |                            | $      | 7,236   |                         |   | $      | (4,553              | )      |   | $                        | —   |   |   | $ | 8,436  |

| (1)  | Reduction of reserve, net of      translation adjustments, for actual sales returns and allowances.        |
|-----------|-----------------------------------------------------------------------------------------------------------------|

| (2)  | Uncollectible accounts written      off from both continuing and discontinued operations, net of translation      adjustments and recoveries.   |
|-----------|------------------------------------------------------------------------------------------------------------------------------------------------------|

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|              | WOLVERINE TUBE, INC. |
|-------------------|----------------------|
|              |                 |   |   |
|              |                      |  |  |
| December 29, 2009 | By:                  |   | /s/ David A.    Owen |
|              |                 |   | David A. Owen |
|              |                 |   | Senior Vice      President, Chief Financial OfficerandSecretary |

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Table of Contents

Index to Financial Statements

|                     |        |                                                                                                                                                                     |
|---------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ExhibitNumber  |   | Description                                                                                                                                                    |
|                     |        |
| 23.1                |   | Consent of KPMG LLP, Independent Registered Public Accounting      Firm                                                                                             |
|                     |        |
| 31.1                |   | Certification of the Principal Executive Officer pursuant to      Section 302 of the Sarbanes-Oxley Act of 2002                                                     |
|                     |        |
| 31.2                |   | Certification of the Principal Financial Officer pursuant to      Section 302 of the Sarbanes-Oxley Act of 2002                                                     |
|                     |        |
| 32.1                |   | Certification of the Principal Executive Officer pursuant to 18      U.S.C. Section 1350, as adopted pursuant to Section 906 of the      Sarbanes-Oxley Act of 2002 |
|                     |        |
| 32.2                |   | Certification of the Principal Financial Officer pursuant to 18      U.S.C. Section 1350, as adopted pursuant to Section 906 of the      Sarbanes-Oxley Act of 2002 |

| * | Management contract or compensatory plan or arrangement |
|---|---------------------------------------------------------|

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