Wise Metals Group LLC Announces Fourth Quarter and Year End Results

Business Wire, March 31, 2008

* 2007 highlighted with several major accomplishments

* Improved financial performance seen beginning first quarter of 2008

BALTIMORE -- Company officials commented today on the number of significant accomplishments that have been made in 2007 that point the company towards continued success and improving financial performance. Some of these major developments included:

* Partnership with the Retirement Systems of Alabama (RSA) was extended in January of 2007 through a $30 million equipment financing. The relationship with the RSA was then further extended in October of 2007 with the RSA purchase of a $75 million convertible preferred membership interest in Wise.

* The company announced a program to further expand its product offerings by announcing a project to extend the width of Wise Alloys can stock from 60 inches to 72 inches. Construction on this project has begun and has a targeted completion date by the end of 2008.

* Contractual commitments with all of the company's can sheet customers were extended and amended to include significant improved pricing including the elimination of metal price caps which significantly affected the company's past financial performance.

* Continued focus on our recycling operations have boosted Wise Recycling's volumes by 35 percent.

* Relocation efforts at several Recycling locations including Raleigh and Charlotte, North Carolina and Albuquerque, New Mexico were completed paving the way for further growth as well as the addition of new capabilities to now recycle both ferrous and non-ferrous metals.

* New labor agreements were reached at Wise Alloys which extend through 2012 and a working alliance was formed with ABB, a large multinational corporation with specialized expertise to provide maintenance services to Alloys. Relationships with union organizations were strengthened evidenced by now having one union organization representing each of the three major facilities at Wise Alloys versus the thirteen separate organizations that previously represented the workforce.

* Despite extremely difficult economic conditions affecting the building and construction markets including housing and transportation, Wise Alloys was able to continue its diversification strategy into commercial products resulting in a 10 percent increase in commercial product shipments.

* A long-standing dispute with the Company's second largest customer (Crown Holdings) was settled on February 1, 2008 and included a dismissal of all lawsuits between the two companies as well as the signing of significant long-term contracts to supply can stock to Crown both domestically and overseas.

* Additional long-term can sheet contracts with other major can making companies were also signed both in Europe and the Middle East to secure Wise's position as a major can sheet supplier on a global basis. Overseas sales of can stock are expected to be as much as 20 percent of sales at Wise Alloys in 2008.

* Increased contractual commitments in 2008 for can stock combined with expected volumes in commercial products have brought capacity utilization to very near full levels at Wise Alloys.

Company officials further announced today that for the year ended December 31, 2007, shipments of scrap at Wise Recycling increased 35 percent from 121.0 million pounds to 163.2 million pounds compared to December 31, 2006 while shipments at Wise Alloys decreased 15 percent from 636.3 million pounds to 543.6 million pounds, including a 19-percent decrease of can sheet shipments offset by a 10-percent increase in shipments of commercial products. Overall shipments in 2007 totaled 706.8 million pounds compared to 757.3 million for the same period in 2006.

The decrease in can sheet shipment volumes was due mostly to can sheet customers reducing inventory quantities from year-end levels combined with the effects of slightly lower contractual volumes from existing can sheet customers which resulted from negotiations to improve pricing.

In the fourth quarter, shipments of scrap at Wise Recycling increased 30 percent versus the fourth quarter of 2006 while shipments at Wise Alloys decreased 17 percent, including a 12-percent decrease of can sheet shipments and a 38-percent decrease in shipments of commercial products. Overall shipments in the fourth quarter of 2007 totaled 161.7 million pounds compared to 176.2 million for the same period in 2006.

Sales decreased by 5 percent to $986.7 million for the year ended December 31, 2007, compared to $1,038.6 for the same period in 2006 and approximately 17 percent to $205.3 million for the three months ended December 31, 2007.

Net loss for the year ended December 31, 2007 was $55.4 million, which includes an $8.4 million favorable impact for FAS 133 (Accounting for Derivative Instruments and Hedging Activities) and a $13.0 million favorable impact for metal costs accounted for on LIFO. This compares to a net loss of $83.9 million for the year ended December 31, 2006, which includes a $24.1 million unfavorable impact for FAS 133 and a $23.6 million unfavorable impact for metal costs accounted for on LIFO.