947429--4/30/2007--INTERNATIONAL_WIRE_GROUP

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{operation, international, foreign}

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Risks Related to Our Business The price of copper, the principal raw material used in our products, is subject to price fluctuations and may negatively impact our liquidity or cause our customers to decrease their orders. Increases in revenue may not reflect improvements in our business, because the increases in revenue may be caused by increases in the price of copper or acquisitions. Disruptions in the supply of copper and other raw materials used in our products could cause us to be unable to meet customer demand, which could result in the loss of customers and net sales. We generally do not obtain long-term volume purchase commitments from customers, and, therefore, cancellations, reductions in production quantities and delays in production by our customers could reduce our operating income and cash flows. Demand for a portion of our products is highly dependent on the aerospace, automobile, appliance, electronics and data communication, general industrial/energy and medical device markets. The wire manufacturing industry is highly competitive and we face substantial domestic and foreign competition in each of our business segments. Our acquisition and expansion plans may fail to perform as expected. The loss of a significant customer could significantly reduce our sales and impact our long-lived intangible assets as well. We depend heavily on our key employees, and the loss of key employees could harm our business. If our relationship with our employees were to deteriorate, our business could suffer. A significant portion of our business depends on sales outside the U.S. We are subject to foreign currency fluctuations. As a U.S. corporation with international operations, we are subject to the Foreign Corrupt Practices Act and a determination that we violated this act may subject us to significant fines and other penalties and damage our reputation. We are subject to litigation claims that could reduce our operating income. We are subject to environmental laws and regulations that expose us to potential financial liability. General economic factors that are beyond our control may harm our business by causing demand for our products to decline or increasing our costs. Risks Related to Our Common Stock We expect to experience volatility in our stock price, which could negatively affect your investment. Our stock is traded on the Pink Sheets, which may make it make it difficult for you to sell your stock and the liquidity of our stock could decrease further if we deregister our securities.

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947429--4/30/2007--INTERNATIONAL_WIRE_GROUP_INC