NS Group, Inc. announced record net income of $24.7 million on record net sales of $122.1 million for the quarter ended September 30, 2004.

Third Quarter Results—Record net income of $24.7 million ($1.14 per diluted share) compares to net income of $20.6 million ($0.96 per diluted share) in the second quarter of 2004. Net sales, a record $122.1 million, represent a 12% increase over the second quarter of 2004. Record operating income of $25.5 million compares to operating income of $21.6 million in the second quarter of 2004.

Nine Month Results—Net income of $50.4 million ($2.35 per diluted share) compares to a net loss of $20.8 million ($1.00 loss per diluted share) in the prior year period. Net sales of $316.1 million represent a 66% increase over the $190.0 million for the nine months ended September 30, 2003. Operating income was $52.6 million, compared to an operating loss of $17.8 million for the comparable prior year period.

Comments—President and CEO, Rene J. Robichaud stated, "We are pleased to report back-to-back record quarterly results and our seventh consecutive improvement in quarterly financial performance. Strong demand for our energy products coupled with relatively low levels of tubular product inventory in the marketplace resulted in higher average selling prices for both our seamless and welded products. In addition, our employees continue to successfully reduce costs by improving productivity, product yields, quality and service. I congratulate them on this record performance. At September 30, 2004 we had nearly $17.0 million in cash and no borrowings against our $50.0 million credit facility."

Robichaud went on to say, "The outlook continues to be good. Oil and natural gas prices are near record levels. Drilling for oil and natural gas remain strong both domestically and internationally. Total inventories of oil country tubular goods are still at relatively low levels. Accordingly, demand and pricing for our energy tubular products is strong. Although we anticipate higher steel costs in the fourth quarter, we expect our OCTG prices will enable us to remain solidly profitable."

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.