July 12, 2006 — NS Group’s board of directors has approved capital projects totaling $98.0 million to expand its seamless tube-making and heat-treating capacity. The projects will also broaden the company's product size range to include 5-1/2 inch outside diameter seamless tubular products.

With the expansion, NS Group's total seamless tubular capacity will increase from the current level of approximately 266,000 tons per year to approximately 319,000 tons per year. In addition, the project will include new quench and temper equipment at its facility in Baytown, Texas, which will increase the company's total heat-treat capacity by 29%, from 280,000 to 360,000 tons per year.

President and CEO, Rene J. Robichaud, stated, "We are very excited about these projects. Our tube mill has been running at capacity since January 2004. These projects, while designed to increase our seamless tubular capacity by 20%, will also allow us to better serve our customers with an additional popular size that is frequently used in today's more challenging drilling environments. Further, these projects are anticipated to provide significant cost reduction benefits across all of our seamless production tons. Upon completion, these projects are expected to have a combined payback of approximately two years, assuming current market conditions.”

The projects are expected to be completed in approximately 18 months with anticipated production outages directly related to the projects of about two weeks.

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 as well as certain foreign markets.