PW Eagle Reports 2006 First Quarter Results; Conference Call and Webcast Scheduled for May 3, 2006 at 8:00 a.m. Pacific Time

Business Wire, May 2, 2006

EUGENE, Ore. -- PW Eagle, Inc. (Nasdaq:PWEI) today reported net income of $21.0 million or $1.73 per fully diluted share for the three months ended March 31, 2006, compared to net income of $2.7 million or $0.27 per fully diluted share, for the three months ended March 31, 2005. The current period includes after-tax charges of $0.3 million (non-cash) for costs associated with expensing employee stock options as required by FAS 123R and $0.8 million related to the previously disclosed termination of the Company's management fee arrangement. On a per share basis, these charges amounted to $0.02 and $0.07, respectively.

A summary of the results for the first quarter ending March 31, 2006 and 2005 is set forth in the following table:

Consolidated Income Statement Information
(In thousands, except for per share amounts, unaudited)


                                              Three months ended
                                                  March 31,
                                          --------------------------
                                               2006         2005
                                          --------------------------
Net sales                                      $181,936    $142,640
Gross profit                                     53,964      23,139
Net income                                       21,046       2,696

Basic net income per share                        $1.85       $0.35
Diluted net income per share                      $1.73       $0.27

Adjustments to reconcile net income to EBITDA:
    Net income                                  $21,046      $2,696
    Minority Interest                                --         (94)
    Interest                                      1,140       3,769
    Taxes                                        13,343       1,615
    Depreciation and amortization                 3,047       3,267
                                          --------------------------
EBITDA                                          $38,576     $11,253
                                          ==========================

EBITDA is not intended to be an alternative to the financial results under generally accepted accounting principles in the United States of America. We believe EBITDA is a commonly used measure of financial performance by our lenders and the investment community and allows for a more complete analysis of our results of operations.

The Company also reported separate financial information for its two operating segments: the PW Eagle PVC business and the USPoly PE business.

Segment Income Statement Information
(In thousands, unaudited)


                                              Three months ended
                                                March 31, 2005
                                        ------------------------------
                                               2006           2005
                                        ------------------------------
PW Eagle PVC Business
   Net sales                                 $160,291        $123,685
   Gross profit                                49,551          20,478
   Operating Income                            34,023           7,988

   Adjustments to reconcile to EBITDA:
      Depreciation and amortization             2,398           2,601
                                        ------------------------------
EBITDA                                        $36,421         $10,589

USPoly PE Business
   Net sales                                  $21,644         $18,955
   Gross profit                                 4,413           2,661
   Operating income (loss)                      1,506              (2)
   Adjustments to reconcile to EBITDA:
      Depreciation and amortization               649             666
                                        ------------------------------
EBITDA                                         $2,155            $664
                                        ==============================

The combined total of the above amounts may differ from the consolidated amounts due to the impact of consolidation and elimination entries. Results for the PE business include a non-cash pre-tax charge of $0.6 million related to the previously announced relocation of USPoly's injection molding operations from Shawnee, Oklahoma to its Tulsa, Oklahoma facility.

Jerry Dukes, President and CEO, commented, "We are very pleased with the continued excellent performance of our business and the financial results that we achieved in the first quarter. It is important to understand our results in the context of both the Company's and industry's history. The plastic pipe industry is subject to economic cycles. In the long term, the industry's financial performance tends to correlate with GDP growth. The industry is also subject to seasonality. Historically the second and third quarters tend to see an increase in the ability to install pipe and hence have stronger demand. The Gulf Coast hurricanes in the fall of 2005 caused significant disruption in the plastic pipe industry both because of outages at the chemical facilities and difficulties with rail transportation. These disruptions caused the price of PVC resin to increase dramatically and the supplies to be very tight in the fourth quarter of 2005. These conditions led to similar circumstances for PVC pipe and resulted in the highest margins we have ever experienced and our record results for that quarter.