Insteel repurchases 400'000 shares

Insteel repurchases 400'000 shares

Insteel Industries announced today that the company has repurchased approximately 400'000 shares of its common stock from company chairman Howard Woltz and his wife. The stocks, purchased as part of a previously reported stock repurchase program, were repurchased from the Woltzes for a discounted price $21.32 per share, based on a predetermined formula. This price represents a 15 percent discount from the closing price on January 27, 2006. Insteel's repurchasing program provides for the company to buy back up to $15.0 million of its outstanding common stock over a period of up to twelve months ending January 12, 2007. The sale from the Woltzes was undertaken to diversify Insteel's investment portfolio in connection with Mr. Woltz Jr.'s retirement and for estate planning purposes. Mr. Woltz retired as an employee and an executive officer in April 2005. "The repurchase of the shares is consistent with the objectives of our stock repurchase program and the board's view that the future prospects for Insteel are positive," said current CFO and Treasurer Michael C. Gazmarian. "We are pleased to be able to repurchase a significant block of stock at what we believe to be an attractive price without reducing the public float in the company's shares." After taking into account the repurchase, Mr. Woltz, Jr. will beneficially own 368'346 shares of common stock (approximately 4 percent of the Company's outstanding common stock) which includes 72'919 shares held by a trust for the benefit of Mr. Woltz, Jr., and 106'309 shares owned by the wife of Mr. Woltz, Jr., the beneficial ownership of which Mr. Woltz, Jr. disclaims.