Aug. 2, 2006 — Maverick Tube Corp. reported net income of $53.7 million on net revenues of $484.0 million for the quarter ended June 30, 2006.

Second Quarter Results—The $53.7 million net income ($1.30 per diluted share) compares to net income of $38.7 million ($0.89 per diluted share) for the same quarter last year and net income of $70.9 million ($1.80 per diluted share) for the first quarter 2006. Net revenues of $484.0 million reflect an increase over net revenues of $400.6 million for the second quarter of 2005. Net revenues were down from $543.1 million for the first quarter 2006 due primarily to the typical seasonal slowdown in Canada.

Earnings were positively impacted by an adjustment to income tax reserves. Earnings were negatively impacted by a purchase-price accounting adjustment related to the TuboCaribe acquisition and by expenses related to the proposed merger with Tenaris. These items resulted in a net benefit to earnings in the quarter of approximately $0.04 per diluted share. Earnings for the second quarter of 2005 included a $0.26 per diluted share gain on the sale of Maverick's hollow structural sections (HSS) business partially offset by a $0.03 per diluted share loss from discontinued operations.

Energy products net revenues increased 28.4% to $410.4 million from $319.6 million in the second quarter 2005, but declined 11.9% from $465.6 million in the first quarter 2006. Drilling activity in the U.S., measured by the average Baker Hughes Incorporated active rig count, increased by 7.4% compared to the first quarter 2006. Drilling activity in Canada declined by 57.6% due to typical Spring thaw and the resulting impediments to moving drilling rigs to new locations. Drilling activity increased sequentially in the rest of the world by 1.9%. The 11.9% decrease in net revenues of energy products over last quarter is attributable to a 10.2% decline in tons shipped, again due to the seasonal slowdown in Canada. Average energy products selling prices declined by 1.8% primarily due to lower levels of Canadian sales and the timing of previously announced price increases.

Electrical products net revenues were $73.5 million compared to $81.1 million in the second quarter 2005 and $77.4 million in the first quarter of 2006. The 5.0% decrease in net revenues from the first quarter 2006 is attributable to a 10.9% decrease in volume, to about 55,960 tons, partially offset by higher selling prices.

Maverick's second-quarter operating margin was 16.1%, which compares to 11.2% in the second quarter of 2005 and 20.6% in the first quarter of 2006. The decline from first quarter 2006 is attributable to a higher percentage of resale products and higher steel costs, lower sales of Canadian products and additional expenses related to the proposed merger with Tenaris and the purchase price accounting adjustment related to the May 2005 TuboCaribe acquisition.

Maverick's net debt to total capitalization improved to 37.7% at June 30, 2006 compared to 39.0% at March 31, 2006. Earnings before interest, taxes, depreciation and amortization (EBITDA) were $89.0 million compared to $52.8 million in the second quarter 2005 and $121.2 million in the first quarter 2006.

Management Comments—C. Robert Bunch, the company's Chairman, President and CEO, said, "Our second quarter results reflect continuing strength in the energy markets, with the annual Spring breakup affecting our Canadian business. While all of our businesses performed well, Maverick Tubular Products, our U.S. OCTG and line pipe business, reported record shipments and net revenues this quarter. Pricing has begun to improve in our electrical products segment and, except for some costs related to our proposed merger and other items, S,G&A expenses remain within our target range."

Mr. Bunch continued, "We are working towards closing our proposed merger with Tenaris. We continue to believe that a closing late in the third quarter or early in the fourth quarter is realistic, but depends principally on the timing of regulatory approvals."

Maverick Tube Corp. is a St. Louis, Mo., based manufacturer of tubular products in the energy industry for exploration, production, and transmission, as well as industrial tubing products (steel electrical conduit, standard pipe, pipe piling, and mechanical tubing) used in various applications.