NS Group, Inc. announced net income of $24.3 million on net sales of $151.2 million for the fourth quarter and record net income of $74.6 million on net sales of $467.3 million for the year ended December 31, 2004.

Fourth Quarter Results—Net income of $24.3 million ($1.10 per diluted share) is down from $24.7 million ($1.14 per diluted share) in the third quarter of 2004. Net sales of $151.2 million represent a 24% increase over the third quarter of 2004. Operating income of $26.4 million compares to $25.5 million in the third quarter of 2004. Comparative results were impacted by a higher effective income tax rate in the fourth quarter versus the third quarter. Comparative per share results were also impacted by an increase in the number of outstanding shares.

Full Year Results— Record net income of $74.6 million ($3.45 per diluted share) compares to a net loss of $17.3 million ($0.83 loss per diluted share) in 2003. Net sales of $467.3 million represent an 80% increase over the $259.0 million for the year ended December 31, 2003. Operating income for 2004 was a record $79.0 million, compared to an operating loss of $18.2 million for the prior year period.

Comments—President and CEO, Rene J. Robichaud stated, "We are pleased to report that our 2004 financial results are the best in our company's history. Strong demand for our energy products coupled with relatively low levels of tubular product inventory in the marketplace resulted in an increase in shipments and higher average selling prices for both our seamless and welded energy products. In addition, our employees achieved numerous record performances in safety, productivity, product yield, quality and customer service. I congratulate them on their performance. At December 31, 2004 we had nearly $31.0 million in cash and no borrowings against our $50.0 million credit facility."

Robichaud went on to say, "The outlook for 2005 continues to be good. Oil and natural gas prices are at relatively high levels. Drilling for oil and natural gas remains strong both domestically and internationally. Total inventories of oil country tubular goods (OCTG) are still at relatively low levels. Imports captured approximately 30 percent of the total U.S. OCTG market in 2004. We expect imports will continue to be a significant factor going forward. The cost of steel coil and scrap should continue at relatively high levels this year. All things considered, demand for our energy tubular products is expected to be strong in 2005."

NS Group, Inc. is a leading producer of seamless and welded tubular products serving the energy industry. These products are used in the drilling, exploration and transmission of oil and natural gas. The company's tubular products are marketed primarily in the United States and certain foreign markets.