International Coal Group Reports Second Quarter 2008 Results

SCOTT DEPOT, W.Va., July 23 /PRNewswire-FirstCall/ -- International Coal
Group, Inc. (NYSE: ICO) today reported its results for the second quarter of
2008.
-- Revenue was up 34% at $277.9 million for the second quarter of 2008,
compared to $208.1 million during the same period a year ago.
-- Adjusted EBITDA, or earnings before deducting interest expense, income
taxes, depreciation, depletion, amortization and minority interest, was
$53.4 million for the second quarter of 2008, compared to $11.3 million for
the second quarter of 2007.
-- The Company reported net income of $12.6 million, or $0.07 per share on
a diluted basis, in the second quarter of 2008, compared to a net loss of
$10.2 million, or a loss of $0.07 per share on a diluted basis, for the same
period in 2007.
-- These financial results include a $22.9 million pre-tax gain realized
on an exchange of Eastern Kentucky coal reserves completed in June. The
Company's total coal reserve holdings increased by approximately one million
tons as a result of this exchange.
"Both our operating and financial performance improved significantly in
the second quarter," said Ben Hatfield, president and CEO of ICG. "In fact,
June results were the best in our company's brief history. This quarter was
the first reporting period to begin reflecting the positive effects of our new
mine development projects, which have arrived on-line just in time to benefit
from the current strength in the global coal market. Going forward, we expect
that our strategic decision to develop these new mining complexes will yield
substantial benefits.
"Likewise, we will continue to explore cost-effective means of expanding
our production base to take advantage of the current market strength," said
Hatfield. "The acquisition of the Powell Mountain operation in May, and the
planned fourth quarter purchase of a large surface-mining shovel spread to
boost ICG Hazard output, are good examples of this growth strategy. The
Powell Mountain operation is projected to add approximately 250,000 tons of
production in 2008, and is expected to increase thereafter to approximately
one million annual tons at full output. The Hazard shovel spread is expected
to increase production by approximately 500,000 tons annually beginning in
2009."
Hatfield continued, "We are also pleased with the results of our
disciplined marketing strategy. During the second quarter, we reached
agreements on 10 new term contracts with eight different customers,
representing approximately 5.1 million tons of predominantly steam coal at
average prices exceeding $105 per ton. The Company still retains sizeable open
positions that allow for further forward sales in the currently strong pricing
environment.
"We are mindful that the pricing benefits of this heated coal market will
only translate to profit margin growth if we can manage the upward cost
pressures, such as increased competition for scarce labor, higher fuel prices
and increased trucking costs," Hatfield noted. "However, ICG is proactively
addressing those challenges. For example, our cornerstone
operations -- Sentinel, Beckley and the planned Tygart No. 1 complex -- have
direct mine-to-rail access, eliminating the need for expensive trucking. On
the labor front, we have implemented several initiatives to attract and retain
skilled workers, and are seeing positive results from those efforts. Going
forward, cost containment will remain a key focus even as we enjoy an improved
market environment."
Six-Month Results
Revenues for the first six months of 2008 totaled $529.8 million compared
to $436.4 million for the same period in 2007. The Company reported EBITDA of
$68.0 million in the first six months of 2008 compared to $24.2 million in the
first six months of 2007. Net income for the first half was $1.1 million, or
$0.01 per share on a diluted basis, versus a loss of $18.3 million, or a loss
of $0.12 per share on a diluted basis, for the same period in 2007.
Sales, Production and Reserves
ICG sold 4.9 million tons of coal during the second quarter of 2008
compared to 4.4 million tons of coal during the second quarter of 2007.
Production totaled 4.6 million tons of coal in the second quarter of 2008
versus 4.2 million tons produced in the same period in 2007.
As of June 30, 2008, ICG controlled approximately 1.0 billion tons of coal
reserves located primarily in Illinois, Kentucky, West Virginia, Maryland and
Virginia. Additionally, the Company controls 527 million tons of non-reserve
coal deposits, which may be classified as reserves in the future as additional
drilling and geological analysis is completed.
Market Outlook and Committed Sales
Coal markets remained vibrant during the second quarter, and the forward
outlook has improved since the first quarter of 2008. According to the Energy
Information Administration (EIA), Eastern U.S. coal production is up only 0.7%
through June 30, 2008 compared to the same period last year despite record
price levels. Conversely, electricity generation is up nearly 1% year-to-date
over last year. U.S. coal exports are up 57% through June 30, 2008, while
coal imports are down 2% compared to the prior year. The EIA now projects
U.S. exports to total 85 million tons for 2008, an increase of 27 million tons
from 2007 levels. The Company expects that continued strong international
demand, relatively high natural gas prices and continued robust steel prices
will result in sustained pricing support through at least 2011.
-- For 2008, committed and priced sales are approximately 19.7 million
tons or about 96% of planned shipments. Priced volume for 2008 averages
$51.18 per ton, excluding freight and handling expenses, with approximately
35% of the unpriced tonnage being metallurgical coal.
-- For 2009, committed and priced sales are approximately 17.9 million
tons or about 80% of projected shipments. Priced volume for 2009 averages
$58.85 per ton, excluding freight and handling expenses, with approximately
35% of the unpriced tonnage being metallurgical coal.
-- For 2010, committed and priced sales are approximately 9.1 million tons
or about 39% of projected shipments. Priced volume for 2010 averages $56.31
per ton, excluding freight and handling expenses, with approximately 21% of
the unpriced tonnage being metallurgical coal.
Operational Update
-- The mine development pace at the new Beckley complex in Raleigh County,
West Virginia, improved significantly in the second quarter. However, as
noted in the Company's first quarter 2008 earnings release, progress has been
slowed by the regional shortage of skilled underground miners, and also by
mine plan revisions designed to maintain the long-term integrity of the
Beckley mine's main entries. The Company now expects the Beckley operation to
reach its targeted annual production rate of 1.4 million tons during the
fourth quarter of 2008.
-- Production at the Sentinel complex in Barbour County, West Virginia
increased 23% in the second quarter, compared to the first quarter of 2008.
The complex is nearing its projected annual production rate of 1.5 million
tons. Like Beckley, the Sentinel Mine production ramp-up has been slowed by
the shortage of experienced labor.
-- On May 30, 2008, the Company expanded its geographical market and
production base by acquiring the former Powell Mountain mining operations
located in Lee County, Virginia, and Harlan County, Kentucky. The acquired
assets include 29.0 million tons of leased coal reserves, a preparation plant
and unit-train rail loadout, and an idle deep mine complex. At full
production, this new operation is expected to produce and ship more than 1.0
million tons of coal annually for the compliance utility market and the
high-volatile metallurgical market.
-- The Company's ICG Hazard complex has entered into purchase arrangements
to acquire a 44-cubic-yard O&K hydraulic shovel, five 240-ton Terex rock
trucks, and other support equipment to significantly increase production at
the existing East Mac & Nellie Surface Mine. Net production growth is
expected to be 500,000 annual tons of steam coal. Initial equipment
deliveries are expected to begin in fourth quarter 2008, and full production
output is projected for first quarter 2009. Capital expenditures for this
project are expected to total $35 million during late 2008 and early 2009.
Other Recent Developments
-- In June, 2008, the Company's ICG Hazard and ICG Natural Resources
subsidiaries concluded an exchange of coal reserves in Breathitt, Knott and
Perry Counties, Kentucky, with a privately-held coal producer. ICG divested
approximately 4.8 million tons of steam-quality coal reserves and 6.8 million
tons of coal resources in exchange for approximately 5.8 million tons of steam
coal reserves, 3.0 million tons of coal resources, and $3.0 million in cash.
The Company recognized a $22.9 million pre-tax gain on this transaction. The
Company expects to mine the properties it acquired within the next five years,
while the properties conveyed were not projected for near-term mining.
-- ICG Eastern, LLC has been recognized as the recipient of the National
Award for Excellence in Surface Coal Mining by the U.S. Department of
Interior's Office of Surface Mining. The award recognizes ICG Eastern's Birch
River mining complex, located near Cowen, West Virginia, for its innovative
and environmentally progressive mine reclamation practices, which exceed both
state and federal requirements for environmental stewardship. The National
Award for Excellence is the latest of several awards recognizing ICG Eastern
for its excellent safety and environmental performance. Within the last year,
ICG Eastern received the Greenlands Award (the West Virginia Department of
Environmental Protection's most prestigious reclamation award), and the Kenes
C. Bowling National Mine Reclamation Award from the Interstate Mining Compact
Commission, which covers all the coal producing regions of the United States.
ICG Eastern has earned these state and national awards while operating as one
of the Company's strongest and most consistent operational and financial
performers.
Liquidity and Debt
As of June 30, 2008, the Company had $68.1 million in cash, up
$13.9 million from March 31, 2008. Total debt as of June 30, 2008 was
$416.0 million, consisting primarily of $175.0 million of 10.25% Senior Notes
and $225.0 million of 9% Convertible Senior Notes. As of June 30, 2008, the
Company had $28.4 million in available borrowing capacity under its credit
agreement. Second quarter cash requirements included $55.0 million in capital
expenditures.
On June 30, 2008, the Company announced that its $225.0 million of 9%
Convertible Senior Notes became convertible at the option of the holders
beginning July 1, 2008. The Company does not believe that a significant
number of conversions are likely at this time, and to date has received no
notices of exercise of conversion rights. The triggering of the conversion
right is not expected to have a material effect on the Company's financial
position.
ICG's capital requirements for the balance of 2008 relate largely to
completion of the Beckley project, initial development of the Tygart No. 1
complex, and purchase of equipment for the Hazard shovel expansion.
Outlook
The Company is providing the following updated guidance:
-- For 2008, the Company expects to sell just over 20.0 million tons of
coal. The average selling price is now projected to be $54.00 to $55.00 per
ton, compared to the Company's previous guidance of $51.00 to $52.50 per ton.
The projected average cost per ton sold is now expected to be $45.00 to
$47.00, excluding selling, general and administrative expenses. The Company
expects coal production to be approximately 19.0 million tons, of which
approximately 1.7 million tons are expected to be sold as metallurgical coal.
-- For 2009, the Company expects to sell 21.5 million to 22.5 million tons
of coal. The Company is revising its price outlook for 2009, projecting that
prices will average between $72.00 and $78.00 per ton, based on recent price
indications and contracting activity, compared to the Company's previous
guidance of $58.00 to $63.00 per ton. Coal production is expected to total
20.5 million to 21.5 million tons, of which approximately 2.6 million tons are
projected to be sold as metallurgical coal.
-- For 2010, the Company expects to sell 23.0 million to 24.0 million tons
of coal. The Company anticipates that prices will average between $92.00 and
$102.00 per ton. Coal production is expected to total 22.0 million to 23.0
million tons, of which 3.2 million tons are projected to be sold as
metallurgical coal.
-- The Company's updated outlook for its expected average coal pricing by
region for 2008, 2009 and 2010 is as follows:

Region 2008 Forecast 2009 Forecast 2010 Forecast
CAPP $57.50 - $58.50 $80.00 - $85.00 $98.00 - $108.00
NAPP $58.00 - $59.00 $70.00 - $75.00 $95.00 - $105.00
ILB $30.50 - $31.00 $32.00 - $33.00 $35.00 - $37.00
Average $54.00 - $55.00 $72.00 - $78.00 $92.00 - $102.00

-- Coal exports in 2008 are now projected to total approximately 3.1
million tons, consisting of approximately 1.4 million tons of metallurgical
coal and approximately 1.7 million tons of thermal coal.
-- Capital expenditure guidance has been increased to reflect the Hazard
shovel project expansion. The Company now expects capital expenditures to
total approximately $179 million in 2008 and $205 million in 2009.
General Information
ICG is a leading producer of coal in Northern and Central Appalachia and
the Illinois Basin. The Company has 13 active mining complexes, of which 12
are located in Northern and Central Appalachia and one in Central Illinois.
ICG's mining operations and reserves are strategically located to serve
utility, metallurgical and industrial customers domestically and
internationally.
Forward-Looking Statements
This press release contains certain statements that are forward-looking
statements within the "safe harbor" provision of the Private Securities
Litigation Reform Act of 1995. Because these forward-looking statements are
subject to various risks and uncertainties, actual results may differ
materially from those implied in the forward-looking statements. The following
factors are among those that may cause actual results to differ materially
from the forward-looking statements: market demand for coal, electricity and
steel; availability of qualified workers; future economic or capital market
conditions; weather conditions or catastrophic weather-related damage; ICG's
production capabilities; the consummation of financing, acquisition or
disposition transactions and the effect thereof on ICG's business; ICG's plans
and objectives for future operations and expansion or consolidation; ICG's
relationships with, and other conditions affecting, ICG's customers; the
availability and cost of key supplies or commodities, such as diesel fuel,
steel, explosives or tires; prices of fuels which compete with or impact coal
usage, such as oil and natural gas; timing of reductions or increases in
customer coal inventories; long-term coal supply arrangements; risks in or
related to coal mining operations, including risks related to third-party
suppliers, contractors and carriers operating at our mines or complexes;
unexpected maintenance and equipment failure; environmental, safety and other
laws and regulations, including those directly affecting ICG's coal mining and
production, and those affecting ICG's customers' coal usage; the ability to
obtain and maintain all necessary governmental permits and authorizations;
competition; railroad, barge, trucking and other transportation availability,
performance and costs; employee benefits costs and labor relations issues;
replacement of ICG's reserves; ICG's assumptions concerning economically
recoverable coal reserve estimates; availability and costs of credit, surety
bonds and letters of credit; title defects or loss of leasehold interests in
ICG's properties which could result in unanticipated costs or inability to
mine these properties; future legislation and changes in regulations or
governmental policies or changes in interpretations thereof, including with
respect to safety enhancements and environmental initiatives relating to
global warming; the impairment of the value of goodwill and long-lived assets;
the ongoing effect of the Sago mine accident; ICG's liquidity, results of
operations and financial condition; the adequacy and sufficiency of ICG's
internal controls; and legal and administrative proceedings, settlements,
investigations and claims. Forward-looking statements made by ICG in this
press release or elsewhere speak only as of the date on which the statements
were made. See also the "Risk Factors" of our 2007 Annual Report on Form 10-K
and in our subsequent filings on Form 10-Q, all of which are currently
available on our website at www.intlcoal.com. New risks and uncertainties
arise from time-to-time, and it is impossible for ICG to predict these events
or how they may affect ICG or its anticipated results. ICG has no duty to, and
does not intend to, update or revise the forward-looking statements in this
news release after the date of issue, except as may be required by law.

INTERNATIONAL COAL GROUP, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2008 AND 2007
(in thousands, except share and per share amounts)

Three Months Ended Six Months Ended
June 30, June 30,
2008 2007 2008 2007

Revenues:
Coal sales revenues $253,109 $188,033 $479,713 $400,993
Freight and handling
revenues 11,870 4,571 23,153 9,601
Other revenues 12,906 15,446 26,944 25,770
Total revenues 277,885 208,050 529,810 436,364

Costs and expenses:
Cost of coal sales 217,656 175,282 426,460 369,431
Freight and handling
costs 11,870 4,571 23,153 9,601
Cost of other revenues 9,222 11,351 18,157 19,539
Depreciation, depletion
and amortization 24,694 21,794 46,651 42,970
Selling, general and
administrative 10,108 8,214 18,634 16,842
Gain on sale of assets,
net (24,391) (2,312) (24,602) (2,354)
Total costs and
expenses 249,159 218,900 508,453 456,029

Income (loss) from
operations 28,726 (10,850) 21,357 (19,665)

Interest and other income
(expense):
Interest expense, net (8,201) (5,870) (20,182) (12,201)
Other, net - 310 - 872
Total interest and other
expense, net (8,201) (5,560) (20,182) (11,329)
Income (loss) before
income taxes and
minority interest 20,525 (16,410) 1,175 (30,994)
Income tax (expense)
benefit (7,899) 6,162 (88) 12,317
Minority interest 2 14 (5) 375
Net income (loss) $12,628 $(10,234) $1,082 $(18,302)

Other Data:
Adjusted EBITDA (a) $53,420 $11,254 $68,008 $24,177
Earnings per share:
Basic $0.08 $(0.07) $0.01 $(0.12)
Diluted (b) $0.07 $(0.07) $0.01 $(0.12)
Weighted-average
shares - basic 152,550,960 152,239,527 152,499,812 152,186,028
Weighted-average
shares - diluted (b) 168,529,748 152,239,527 168,168,663 152,186,028

(a) This press release includes a non-GAAP financial measure within the
meaning of applicable SEC rules and regulations. Adjusted EBITDA is a non-GAAP
financial measure used by management to gauge operating performance. We define
Adjusted EBITDA as net income or loss before deducting net interest expense,
income taxes, depreciation, depletion, amortization and minority interest.
Adjusted EBITDA is not, and should not, be used as a substitute for operating
income, net income and cash flow as determined in accordance with GAAP. We
present Adjusted EBITDA because we consider it an important supplemental
measure of our performance and believe it is frequently used by securities
analysts, investors and other interested parties in the evaluation of
companies in our industry, substantially all of which present EBITDA or
Adjusted EBITDA when reporting their results. We also use Adjusted EBITDA for
the following purposes: our executive compensation plan bases incentive
compensation payments on our Adjusted EBITDA performance measured against
budgets and a peer group. Our credit facility uses Adjusted EBITDA (with
additional adjustments) to measure our compliance with covenants, such as
interest coverage and leverage. EBITDA or Adjusted EBITDA is also widely used
by us and others in our industry to evaluate and price potential acquisition
candidates. Adjusted EBITDA has limitations as an analytical tool, and you
should not consider it in isolation or as a substitute for analysis of our
results as reported under GAAP. Some of these limitations are that Adjusted
EBITDA does not reflect our cash expenditures, or future requirements, for
capital expenditures or contractual commitments; changes in, or cash
requirements for, our working capital needs; interest expense, or the cash
requirements necessary to service interest or principal payments, on our
debts. Although depreciation and amortization are non-cash charges, the assets
being depreciated and amortized will often have to be replaced in the future.
Adjusted EBITDA does not reflect any cash requirements for such replacements.
Other companies in our industry may calculate EBITDA or Adjusted EBITDA
differently than we do, limiting its usefulness as a comparative measure. A
reconciliation of Adjusted EBITDA to GAAP net income or loss appears at the
end of this press release.
(b) The diluted weighted-average shares for the three and six month
periods ended June 30, 2008 include the estimated dilutive impact of our 9%
Convertible Senior Notes due 2012. This estimate is based upon share data
through July 22, 2008. The actual dilutive impact will be finalized with share
data through July 29, 2008 in our filing on Form 10-Q for the quarter ended
June 30, 2008.

INTERNATIONAL COAL GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
AS OF JUNE 30, 2008 AND DECEMBER 31, 2007
(in thousands)

June 30, December 31,
2008 2007
Assets (Unaudited)
Current assets:
Cash and cash equivalents $68,086 $107,150
Accounts receivable 113,951 83,765
Inventories, net 43,956 40,679
Deferred income taxes 7,573 5,000
Prepaid expenses and other 27,575 28,610
Total current assets 261,141 265,204

Property, plant, equipment and
mine development, net 1,023,967 974,334
Debt issuance costs, net 12,235 13,466
Advanced royalties, net 13,677 14,661
Goodwill 30,237 30,237
Other non-current assets 5,582 5,661
Total assets $1,346,839 $1,303,563

Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $72,705 $70,042
Current portion of long-term debt 5,402 4,234
Current portion of reclamation and
mine closure costs 7,333 7,333
Current portion of employee benefits 2,925 2,925
Accrued expenses and other 80,696 62,723
Total current liabilities 169,061 147,257

Long-term debt 410,620 408,096
Reclamation and mine closure costs 80,955 78,587
Employee benefits 59,864 55,132
Deferred income taxes 54,433 52,355
Below-market coal supply agreements 48,023 39,668
Other non-current liabilities 5,321 8,062
Total liabilities 828,277 789,157

Minority interest 40 35

Stockholders' equity:
Common stock 1,532 1,530
Additional paid-in capital 642,095 639,160
Accumulated other comprehensive income (5,771) (5,903)
Retained deficit (119,334) (120,416)
Total stockholders' equity 518,522 514,371
Total liabilities and stockholders'
equity $1,346,839 $1,303,563

INTERNATIONAL COAL GROUP, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2008 AND 2007
(in thousands)

Six Months Ended
June 30,
2008 2007
Cash flows from operating activities:
Net income (loss) $1,082 $(18,302)
Adjustments to reconcile net income (loss)
to net cash from operating activities:
Depreciation, depletion and amortization 46,651 42,970
Compensation expense on restricted
stock and options 2,377 2,697
Minority interest 5 (375)
Amortization of deferred finance costs 1,414 1,278
Gain on sale of assets, net (24,602) (2,354)
Deferred income taxes (17) (16,570)
Provision for bad debt (522) 522
Amortization of accumulated post-retirement
benefit obligation 214 88
Changes in assets and liabilities:
Accounts receivable (29,304) 3,828
Inventories (3,277) (12,953)
Prepaid expenses and other 1,156 8,933
Other non-current assets 823 (1,060)
Accounts payable 258 4,070
Accrued expenses and other 17,841 7,336
Reclamation and mine closure costs (1,125) 3,744
Other liabilities 1,990 2,908
Net cash from operating activities 14,964 26,760

Cash flows from investing activities:
Proceeds from the sale of assets 3,819 4,663
Additions to property, plant, equipment
and mine development (54,973) (74,943)
Cash paid related to acquisitions, net (558) (6,939)
Withdrawals of restricted cash 14 499
Net cash from investing activities (51,698) (76,720)

Cash flows from financing activities:
Borrowings on short-term debt - 553
Repayments on short-term debt - (15,492)
Borrowings on long-term debt - 65,000
Repayments on long-term debt (2,147) (1,330)
Debt issuance costs (183) (1,047)
Net cash from financing activities (2,330) 47,684

Net change in cash and cash equivalents (39,064) (2,276)
Cash and cash equivalents, beginning of period 107,150 18,742
Cash and cash equivalents, end of period $68,086 $16,466

INTERNATIONAL COAL GROUP, INC. AND SUBSIDIARIES
RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2008 AND 2007 (Unaudited)
(in thousands)

Three Months Ended Six Months Ended
June 30, June 30,
2008 2007 2008 2007
Net income (loss) $12,628 $(10,234) $1,082 $(18,302)
Depreciation,
depletion &
amortization 24,694 21,794 46,651 42,970

Interest expense, net 8,201 5,870 20,182 12,201

Income tax expense
(benefit) 7,899 (6,162) 88 (12,317)
Minority interest (2) (14) 5 (375)

Adjusted EBITDA $53,420 $11,254 $68,008 $24,177

INTERNATIONAL COAL GROUP, INC. AND SUBSIDIARIES
OPERATING STATISTICS
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2008 and 2007 (Unaudited)
(in thousands, except per ton amounts)

Central Northern Illinois Purchased
Appalachia Appalachia Basin Coal Total

For the three months ended June 30, 2008:
Tons sold 3,004 1,075 543 236 4,858
Coal sales
revenues $166,933 $59,776 $16,195 $10,205 $253,109
Cost of coal
sales $146,060 $51,919 $12,675 $7,002 $217,656
Coal sales
revenue
per ton (a) $55.57 $55.61 $29.83 $43.24 $52.10
Cost of
coal sales
per ton (a) $48.62 $48.30 $23.34 $29.67 $44.80

For the three months ended June 30, 2007:
Tons sold 2,788 764 505 388 4,445
Coal sales
revenues $128,196 $27,666 $15,059 $17,112 $188,033
Cost of
coal sales $113,251 $34,135 $11,717 $16,179 $175,282
Coal sales
revenue
per ton (a) $45.98 $36.21 $29.82 $44.10 $42.30
Cost of
coal sales
per ton (a) $40.62 $44.68 $23.20 $41.70 $39.43

For the six months ended June 30, 2008:
Tons sold 5,886 2,051 1,143 628 9,708
Coal sales
revenues $313,725 $104,997 $34,089 $26,902 $479,713
Cost of
coal sales $279,240 $97,079 $28,626 $21,515 $426,460
Coal sales
revenue
per ton (a) $53.30 $51.19 $29.82 $42.84 $49.41
Cost of
coal sales
per ton (a) $47.44 $47.33 $25.04 $34.26 $43.93

For the six months ended June 30, 2007:
Tons sold 5,640 1,626 1,038 1,122 9,426
Coal sales
revenues $259,906 $58,000 $30,985 $52,102 $400,993
Cost of
coal sales $228,253 $73,976 $24,395 $42,807 $369,431
Coal sales
revenue
per ton (a) $46.08 $35.67 $29.85 $46.44 $42.54
Cost of
coal sales
per ton (a) $40.47 $45.50 $23.50 $38.15 $39.19

(a) "Coal sales revenue per ton" and "Cost of coal sales per ton" are
calculated as Coal sales revenues or Cost of coal sales, respectively, divided
by Tons sold. Although Coal sales revenue per ton and Cost of coal sales per
ton are not measures of performance calculated in accordance with GAAP,
management believes that they are useful to an investor in evaluating
performance because they are widely used in the coal industry as a measure to
evaluate a company's sales performance or control over its costs. Coal sales
revenue per ton and Cost of coal sales per ton should not be considered in
isolation or as substitutes for measures of performance in accordance with
GAAP. In addition, because Coal sales revenue and Cost of coal sales per ton
are not calculated identically by all companies, ICG's presentation may not be
comparable to other similarly titled measures of other companies.
SOURCE International Coal Group, Inc.

Ira Gamm, Vice President - Public and Investor Relations, International Coal
Group, Inc., +1-304-760-2619