CAMDEN, NY -- International Wire Group (IWG), a wire manufacturer for suppliers and OEMs, has acquired Phelps Dodge High Performance Conductors of SC & GA, Inc. from Phelps Dodge Corp. (PD). In connection with the acquisition, Phelps Dodge High Performance Conductors of SC & GA, Inc. changed its name to IWG High Performance Conductors, Inc. (HPC).

Under the terms of the acquisition, IWG acquired all of the outstanding common stock of HPC for $42 million plus a working capital adjustment estimated at closing to be $2 million. Additionally, IWG purchased the copper inventory held on consignment by HPC from PD for approximately $5 million. IWG has also agreed to a contingency payment of up to $3 million based on HPC's 2006 Earnings Before Interest, Taxes, Depreciation and Amortization.

HPC is a manufacturer of specialty high-performance conductors for aerospace, medical, automotive, computer, telecommunications, mass transportation, geophysical and electronics markets. The company has manufacturing operations in Inman, SC, and Trenton, GA. For the fiscal year ending Dec. 31, 2005, HPC's unaudited sales were $85.5 million.

IWG funded the acquisition with borrowings under its revolving credit facility. In addition, on March 31, IWG increased its senior revolving credit facility by $20 million, and the revolving credit facility now provides for up to $130 million subject to borrowing base availability. After funding the acquisition on March 31, the outstanding balance on IWG senior revolving credit facility was approximately $44 million excluding the copper payment of approximately $5 million due in two installments in May and June 2006.

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