Maverick Tube Corp. reported net income of $68.5 million on net sales of $400.7 million, and net income of $155.3 million on net sales of $1,060.1 million for the third quarter and nine months ended September 30, 2004, respectively.

Third Quarter Results—Net income of $68.5 million ($1.60 per diluted share) compares to net income in the same quarter last year of $8.7 million ($0.21 per diluted share). Net sales of $400.7 million compare with net sales of $226.8 million for the prior year.

Total tons of U.S. energy related products shipped by the Company during the third quarter increased to 146,535 tons, up 7% compared to the third quarter of 2003. Drilling levels in the U.S. increased by 13% during the quarter compared to the third quarter of 2003, with a 14% increase in gas related drilling and a 9% increase in oil related drilling. The Company's energy shipments in Canada decreased 17%, down to 60,080 tons, during the third quarter over the comparable quarter last year, with drilling levels decreasing 15% from the third quarter of last year. Third quarter shipments of the Company's industrial products decreased to 93,211 tons, or 11%, compared to the third quarter of 2003, primarily attributable to industry conditions.

Nine Month Results—Net income of $155.3 million ($3.64 per diluted share) compared to net income last year of $10.0 million ($0.24 per diluted share). Net sales of $1,060.1 million for compare with net sales of $641.1 million for the prior year.

Comments—Mr. Eisenberg, the company's Chairman, said, "With respect to our U.S. OCTG product line, shipments of domestic products increased 11% as compared to the prior quarter and 2% from the same quarter last year. Consumption increased 9% in comparison to the prior quarter and 17% from the same quarter last year. Imports into the U.S. decreased 5% from last quarter, as international rig count continues to climb. Months supply fell 3% to 4.7 months as inventory increased approximately 36,000 tons during the quarter while consumption continued to rise. Our market share was impacted as Maverick continued to push pricing up as our replacement cost of steel climbed."

Eisenberg continued, "With respect to our Canadian OCTG product line, shipments of domestic products increased 65% as compared to the prior quarter and decreased 20% from the same quarter last year. Consumption increased 49% in comparison to the prior quarter and decreased 14% from the same quarter last year. In addition to growing our market share, we were successful in increasing our selling prices in Canada despite drilling activity not being as strong as previously anticipated."

Eisenberg went on to say, "Maverick generated record sales and profits for both the quarter and the nine months ended September 30, 2004. The quarter benefited from our strategic focus on line pipe sales as volumes grew by 17% compared to the previous year's third quarter. Our industrial business continued to be very strong, contributing approximately 45% of our gross margins for the quarter. Although we experienced increases in our raw material cost in the latter portion of the quarter, Maverick still benefited from the remaining lower cost inventory. This, coupled with higher selling prices attributable to the increase in the replacement cost of our steel, yielded higher than normal margins. Overall, all segments of Maverick's business performed well during the quarter."

Eisenberg to Retire—Maverick Tube also announced the retirement of its President and CEO, Gregg Eisenberg, effective October 15, 2004. Mr. Eisenberg has agreed to remain as Chairman of the Board in a non-executive capacity until December 31, 2004, and provide consulting services to the company for the one-year period following his resignation as Chairman of the Board.

C. Robert Bunch has been named Acting President and CEO. Mr. Bunch, 50, has been a director of the Company since 1991. Mr. Bunch has been active in the oil service industry since 1981, when he joined Hughes Tool Co. as a financial officer. Since that time, he has served as President of Tescorp, Inc., a manufacturer and distributor of oilfield production and exploration equipment; Executive Vice President and Chief Operating Officer of Oyo Geospace, Inc., an oilfield seismic equipment manufacturer; and most recently with Input/Output, Inc., finishing his tenure there as President and Chief Operating Officer. Since leaving Input/Output in 2003, he has been an investor in and a consultant to the oil services industry. He also serves as a director of Pioneer Drilling Co.

Mr. Bunch commented, "Over his many years of dedicated service to Maverick, Gregg contributed greatly to the company's growth and profitability. His leadership and vision have been instrumental in the Company's growth from a Company valued at approximately $40.0 million at its initial public offering in 1991 to a current market value in excess of $1.3 billion."

Bunch continued, "One of Gregg's lasting contributions to Maverick is the talented management team he helped recruit. Over the next several months, the Board will continue to build on that team to lead the company through its next growth phase."

St. Louis, Miss., based Maverick Tube Corp. manufactures tubular products used in the energy industry for drilling, production, well servicing and line pipe applications, as well as industrial tubing products (HSS, electrical conduit and standard pipe) used in various applications.