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Oct. 31, 2006 — NS Group, Inc. reported net income of $22.4 million on net sales of $184.1 million for the third quarter, and net income of $89.0 million on net sales of $566.9 million for the nine months ended September 30, 2006.

Third Quarter Results—The $22.4 million net income ($0.99 per diluted share) compares to net income of $32.0 million ($1.41 per diluted share) in the second quarter of 2006. Net sales of $184.1 million compare to net sales of $192.3 million in the second quarter of 2006.

Operating income was $35.0 million, which compares to operating income of $49.6 million in the second quarter of 2006.

Earnings for the quarter were negatively impacted by several items including reduced margins as a result of the write-up to fair value of the finished goods inventory acquired in the Ultra acquisition, as well as expenses related to the Ultra acquisition and the proposed merger with Ipsco, Inc. These items reduced net income by $2.9 million ($0.13 per diluted share).

Financial results were also negatively impacted by the elimination of gross margin on inter-company tubular product shipments to Ultra during the third quarter of 2006 that remained in Ultra’s inventory at the end of the quarter.

Nine Month Results—The $89.0 million net income ($3.94 per diluted share) compares to net income of $87.3 million ($3.86 per diluted share) in the prior year period. Net sales of $566.9 million compare to net sales of $446.7 million for the nine months ended September 30, 2005.

Operating income was $138.5 million, which compares to operating income of $97.9 million for the comparable prior year period.

Other News—The pending merger with Ipsco is expected to be completed in the fourth quarter of 2006 and remains subject to customary closing conditions, including approval of the merger by NS Group’s shareholders.

NS Group, Inc. is a leading producer of tubular products serving the energy industry and certain industrial markets. The company manufactures and markets seamless and welded tubular steel products used in the drilling, exploration and transmission of oil and natural gas and operates a steel manufacturing facility that produces billets as feedstock for its seamless products. NS Group also manufactures premium connections for oil and natural gas drilling and production under its Ultra product brand name.

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