Wise Metals Group LLC Announces Fourth Quarter and Year End Results

-- 2007 highlighted with several major accomplishments

-- Improved financial performance seen beginning first quarter of
2008
BALTIMORE--(Business Wire)--
Company officials commented today on the number of significant
accomplishments that have been made in 2007 that point the company
towards continued success and improving financial performance. Some of
these major developments included:

-- Partnership with the Retirement Systems of Alabama (RSA) was
extended in January of 2007 through a $30 million equipment
financing. The relationship with the RSA was then further
extended in October of 2007 with the RSA purchase of a $75
million convertible preferred membership interest in Wise.

-- The company announced a program to further expand its product
offerings by announcing a project to extend the width of Wise
Alloys can stock from 60 inches to 72 inches. Construction on
this project has begun and has a targeted completion date by
the end of 2008.

-- Contractual commitments with all of the company's can sheet
customers were extended and amended to include significant
improved pricing including the elimination of metal price caps
which significantly affected the company's past financial
performance.

-- Continued focus on our recycling operations have boosted Wise
Recycling's volumes by 35 percent.

-- Relocation efforts at several Recycling locations including
Raleigh and Charlotte, North Carolina and Albuquerque, New
Mexico were completed paving the way for further growth as
well as the addition of new capabilities to now recycle both
ferrous and non-ferrous metals.

-- New labor agreements were reached at Wise Alloys which extend
through 2012 and a working alliance was formed with ABB, a
large multinational corporation with specialized expertise to
provide maintenance services to Alloys. Relationships with
union organizations were strengthened evidenced by now having
one union organization representing each of the three major
facilities at Wise Alloys versus the thirteen separate
organizations that previously represented the workforce.

-- Despite extremely difficult economic conditions affecting the
building and construction markets including housing and
transportation, Wise Alloys was able to continue its
diversification strategy into commercial products resulting in
a 10 percent increase in commercial product shipments.

-- A long-standing dispute with the Company's second largest
customer (Crown Holdings) was settled on February 1, 2008 and
included a dismissal of all lawsuits between the two companies
as well as the signing of significant long-term contracts to
supply can stock to Crown both domestically and overseas.

-- Additional long-term can sheet contracts with other major can
making companies were also signed both in Europe and the
Middle East to secure Wise's position as a major can sheet
supplier on a global basis. Overseas sales of can stock are
expected to be as much as 20 percent of sales at Wise Alloys
in 2008.

-- Increased contractual commitments in 2008 for can stock
combined with expected volumes in commercial products have
brought capacity utilization to very near full levels at Wise
Alloys.

Company officials further announced today that for the year ended
December 31, 2007, shipments of scrap at Wise Recycling increased 35
percent from 121.0 million pounds to 163.2 million pounds compared to
December 31, 2006 while shipments at Wise Alloys decreased 15 percent
from 636.3 million pounds to 543.6 million pounds, including a
19-percent decrease of can sheet shipments offset by a 10-percent
increase in shipments of commercial products. Overall shipments in
2007 totaled 706.8 million pounds compared to 757.3 million for the
same period in 2006.

The decrease in can sheet shipment volumes was due mostly to can
sheet customers reducing inventory quantities from year-end levels
combined with the effects of slightly lower contractual volumes from
existing can sheet customers which resulted from negotiations to
improve pricing.

In the fourth quarter, shipments of scrap at Wise Recycling
increased 30 percent versus the fourth quarter of 2006 while shipments
at Wise Alloys decreased 17 percent, including a 12-percent decrease
of can sheet shipments and a 38-percent decrease in shipments of
commercial products. Overall shipments in the fourth quarter of 2007
totaled 161.7 million pounds compared to 176.2 million for the same
period in 2006.

Sales decreased by 5 percent to $986.7 million for the year ended
December 31, 2007, compared to $1,038.6 for the same period in 2006
and approximately 17 percent to $205.3 million for the three months
ended December 31, 2007.

Net loss for the year ended December 31, 2007 was $55.4 million,
which includes an $8.4 million favorable impact for FAS 133
(Accounting for Derivative Instruments and Hedging Activities) and a
$13.0 million favorable impact for metal costs accounted for on LIFO.
This compares to a net loss of $83.9 million for the year ended
December 31, 2006, which includes a $24.1 million unfavorable impact
for FAS 133 and a $23.6 million unfavorable impact for metal costs
accounted for on LIFO.

After adjusting for FAS 133 and LIFO, net loss for the year ended
December 31, 2007 was $76.7 million, compared to a loss of
$36.2 million in the same period in 2006. Significant items impacting
2007 include higher input costs and an approximate $28.4 million
impact of the lag effect of metal and weaker scrap markets and an
approximate $29.1 million impact of reduced sales and production
levels. 2006 results were impacted by an approximate $40.7 million
impact from metal price caps on certain can sheet contracts for which
those metal caps were eliminated January 1, 2007.

Interest costs for the year of $37.6 million reflect an increase
of $4.9 million resulting from increased borrowings and higher
interest rates.

Net loss for the fourth quarter of 2007 was $28.3 million, which
includes a $3.3 million favorable impact for FAS 133 (Accounting for
Derivative Instruments and Hedging Activities) and a $13.0 million
favorable impact for metal costs accounted for on LIFO. This compares
to a net loss of $16.9 million in the fourth quarter of 2006, which
includes a $3.4 million unfavorable impact for FAS 133 and a
$1.4 million favorable impact for metal costs accounted for on LIFO.

After adjusting for FAS 133 and LIFO, net loss for the fourth
quarter of 2007 was $44.6 million, compared to a loss of $14.9 million
in the fourth quarter of 2006. Significant items impacting the fourth
quarter of 2007 include higher input costs and an approximate $11.1
million impact of the lag effect of metal and weaker scrap markets and
an approximate $7.3 million impact of reduced sales and production
levels. Additional costs resulting from the fourth quarter strike were
$7.0 million and the legal settlement also resulted in a fourth
quarter charge of approximately $7.1 million. Fourth quarter results
from 2006 were impacted by an approximate $7.0 million impact from
metal price caps on certain can sheet contracts for which those metal
caps were eliminated January 1, 2007.

Interest costs for the fourth quarter of 2007 of $9.7 million
reflect an increase of $1.2 million over the fourth quarter of 2006
resulting from increased borrowings and higher interest rates.

"Our focus is clearly on ensuring a successful start to 2008 which
I am pleased to report that we are accomplishing," commented David
D'Addario, Chairman and Chief Executive Officer. "The financial
challenges of 2007 have been successfully addressed and the many
outlined achievements that we have made ensure our success and
position as a global leader in 2008 and beyond."

Cautionary Note Regarding Forward-Looking Statements

Certain statements made in this news release constitute
forward-looking statements, within the meaning of the Private
Securities Litigation Reform Act, regarding the company's future
plans, objectives, and expected performance. Statements that are not
historical facts, including statements accompanied by words such as
"believe," "expect," "estimate," "intend," or "plan" are intended to
identify forward-looking statements and convey the uncertainty of
future events or outcomes. The company cautions that any such
forward-looking statements are based on assumptions that the company
believes are reasonable, but are subject to a wide range of risks, and
actual results may differ materially. Certain risks and uncertainties
are summarized in the company's filings with the Securities and
Exchange Commission. The company takes no obligation to publicly
update or revise any future looking statements to reflect the
occurrence of future events or circumstances.

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Wise Metals Group LLC
Consolidated Statements of Operations

Three months ended Twelve months ended
December 31 December 31
Amounts in thousands 2007 2006 2007 2006
--------- --------- -------- ----------
Net sales $ 205,303 $ 247,491 $986,659 $1,038,641
Cost of sales 220,374 248,893 997,558 1,054,135
--------- --------- -------- ----------

Gross loss (15,071) (1,402) (10,899) (15,494)
Operating expenses:
Selling, general, and
administrative 6,827 3,680 15,303 11,557
--------- --------- -------- ----------

Operating loss (21,898) (5,082) (26,202) (27,051)
Other income (expense):
Interest expense and
fees (9,711) (8,480) (37,562) (32,679)
Unrealized gain (loss)
on derivative instruments 3,282 (3,407) 8,352 (24,126)
--------- --------- -------- ----------

Net loss $(28,327) $(16,969) $(55,412) $ (83,856)
========= ========= ======== ==========
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Wise Metals Group LLC
Consolidated Balance Sheets

December 31
--------------------
2007 2006
--------- ---------
(In Thousands)
Assets
Current assets:
Cash $ 1,447 $ 2,280
Broker deposits 902 7,889
Accounts receivable, less allowance for
doubtful accounts 77,526 104,096
Inventories, net 165,791 116,902
Fair value of contracts under SFAS 133 4,153 3,897
Other current assets 3,765 5,933
--------- ---------

Total current assets 253,584 240,997
Non-current assets:
Property and equipment, net 90,629 84,589
Other assets 9,970 8,724
Intangible assets -- 326
Goodwill 283 283
--------- ---------

Total non-current assets 100,882 93,922
--------- ---------

Total assets $ 354,466 $ 334,919
========= =========

December 31
--------------------
2007 2006
--------- ---------
(In Thousands)
Liabilities and members' deficit
Current liabilities:
Accounts payable $ 103,236 $ 71,131
Current portion of long-term debt and
capital lease obligations 4,276 1,759
Borrowings under revolving credit facility 147,778 177,187
Fair value of contracts under SFAS 133 353 10,312
Accrued expenses, payroll and other 17,432 14,526
--------- ---------

Total current liabilities 273,075 274,915
Non-current liabilities:
Term loan and capital lease obligations,
less current portion 24,463 15,854
Senior secured notes 150,000 150,000
Accrued pension obligation 3,284 3,101
Other liabilities 1,616 12,485
--------- ---------

Total non-current liabilities 179,363 181,440
Commitments and contingencies -- --
Members' deficit
Members' deficit (101,557) (119,145)
Accumulated other comprehensive income
(loss) 3,585 (2,291)
---------- ----------
Total members' deficit (97,972) (121,436)
--------- ---------

Total liabilities and members' deficit $ 354,466 $ 334,919
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Wise Metals Group LLC
Consolidated Statements of Cash Flows
(Unaudited)

Years ended
December 31,
Amounts in thousands 2007 2006
--------- ---------
Cash flows from operating activities
Net loss $(55,412) $(83,856)
Adjustments to reconcile net loss to net cash used
in operating activities:
Depreciation and amortization 13,721 12,580
Gain on sale of assets (371) --
Amortization of deferred financing fees 2,065 1,698
LIFO provision (12,962) 23,577
Bad debt expense 262 --
Unrealized (gains) losses on contracts under
SFAS 133 (8,352) 24,126
Changes in operating assets and liabilities:
Broker deposits 6,987 (7,639)
Accounts receivable 26,308 (30,770)
Inventories (35,927) 1,672
Other current assets 2,168 (1,554)
Accounts payable 32,105 16,638
Accrued expenses, payroll and other (6,752) (3,647)
--------- ---------

Net cash used in operating activities (36,160) (47,175)

Cash flows from investing activities
Purchase of equipment (20,692) (10,612)
Proceeds from sale of assets 1,302 --
--------- ---------

Net cash used in investing activities (19,390) (10,612)

Cash flows from financing activities
Net issuance (repayments) issuance of short-term
borrowings (29,409) 39,739
Payments of deferred financing costs to lending
institutions -- (1,156)
Proceeds from sale-financing transaction 14,950 14,950
(Payments on) proceeds from long-term obligations (3,824) 78
Proceeds from equity investment 75,000 --
Purchase of member's equity (2,000) --
--------- ---------

Net cash provided by financing activities 54,717 53,611

Net decrease in cash and cash equivalents (833) (4,176)
Cash and cash equivalents at beginning of year 2,280 6,456
--------- ---------

Cash and cash equivalents at end of year $ 1,447 $ 2,280
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Non-GAAP Financial Measures

The company uses certain non-GAAP financial measures in evaluating
its performance. These include Adjusted EBITDA. Adjusted EBITDA is not
intended to represent cash flows from operations as defined using GAAP
and should be considered in addition to, and not as a substitute for,
cash flows as a measure of liquidity or net earnings as a measure of
operating performance. A reconciliation of Adjusted EBITDA to net
income (loss) is set forth in the financial tables below. The company
includes Adjusted EBITDA information because this measure is used by
management to measure our compliance with debt covenants and by
investors and note holders to evaluate our ability to service debt.
Our measure of Adjusted EBITDA may not be comparable to similarly
titled measures of other companies.

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Reconciliation of Net Loss to Adjusted EBITDA

Three months Twelve months
ended December 31, ended December 31,
2007 2006 2007 2006
--------- --------- --------- ---------
Net loss $(28,327) $(16,969) $(55,412) $(83,856)
Interest expense and fees 9,711 8,480 37,562 32,679
Depreciation and amortization 3,911 3,205 13,721 12,580
LIFO adjustment (12,962) (1,423) (12,962) 23,577
Unrealized (gain) loss on
derivative instruments (3,282) 3,407 (8,352) 24,126
--------- --------- --------- ---------

Adjusted EBITDA $(30,949) $ (3,300) $(25,443) $ 9,106
========= ========= ========= =========
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About Wise Metals Group

Wise Metals Group LLC is the parent company of Wise Alloys, Wise
Recycling and Listerhill Total Maintenance Center. Based in Muscle
Shoals, Ala., Wise Alloys is the world's third-leading producer of
aluminum can stock for the beverage and food industries. Wise Alloys
is a "high-purpose" company that relies heavily on recycled aluminum
in the production of its can stock. Wise Recycling is one of the
largest, direct-from-the-public collectors of aluminum beverage
containers in the United States, operating shipping and processing
locations east of the Mississippi River that support a network of
neighborhood collection centers. Listerhill Total Maintenance Center
specializes in providing maintenance, repairs and fabrication to
manufacturing and industrial plants worldwide ranging from small
on-site repairs to complete turn-key maintenance.

Wayne E. Travers Jr.
203-378-1152 ext. 111

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