MINNEAPOLIS — March 15, 2001 — PW Eagle, Inc. (Nasdaq-NMS: “PWEI,” formerly “EPII”) today reported that it entered into a settlement agreement with The Lamson & Sessions, Co., settling the lawsuit filed by Lamson in July 1999 to recover alleged damages it incurred in connection with PW Eagle’s termination of the Asset Purchase Agreement entered into between the parties in December 1998. PW Eagle paid approximately $2.0 million to Lamson in consideration for Lamson’s release and satisfaction of all claims for damages.

Since the settlement removed a contingency that existed at December 31, 2000 before the Company filed its Form 10-K for 2000, PW Eagle is required to adjust its financial results for the three months and year ended December 31, 2000 to give effect to an additional non-recurring expense accrual of $1,965,000. This additional accrual reduces the Company’s net income for 2000 by $1,214,000 or $.16 per share basic and $.11 per share diluted. A summary of the adjusted unaudited results for the fourth quarter and for the year ending December 31, 2000 and 1999 is set forth in the following table:

Income Statement Information

(In thousands, except for per share amounts)

PW Eagle, Inc. is a leading extruder of PVC pipe and polyethylene tubing products. The Company operates ten manufacturing facilities in the midwestern and western United States. PW Eagle’s common stock is traded on the Nasdaq National Market under the symbol “PWEI.”

PW EAGLE, INC.

CONDENSED STATEMENTS OF OPERATIONS

(In thousands, except per share amounts)

		Three months ended Dec. 31,		Year ended Dec. 31,
		2000	1999	2000	1999
NET SALES		$59,009	$73,754	$343,974	$153,950
COST OF GOODS SOLD		58,800	50,886	256,616	110,485
Gross profit		209	22,868	87,358	43,465
OPERATING EXPENSES:
Selling expenses		5,905	7,529	28,168	16,855
General and administrative expenses		2,960	3,395	13,290	5,979
Nonrecurring items		(30)	800	(195)	1,963
		8,835	11,724	41,263	24,797
OPERATING INCOME (LOSS)		(8,626)	11,144	46,095	18,668
OTHER EXPENSES (INCOME):
Interest expense		3,022	3,293	13,655	5,125
Other income, net		(2)	(19)	(249)	(226)
Nonrecurring items		2,145	-	2,845	1,825
		5,165	3,274	16,251	6,724
INCOME (LOSS) BEFORE INCOME TAXES		(13,791)	7,870	29,844	11,944
INCOME TAX EXPENSE (BENEFIT)		(5,085)	1,566	11,626	(2,618)
NET INCOME (LOSS)		(8,706)	6,304	18,218	14,562
PREFERRED STOCK DIVIDEND AND LOSS ON REDEMPTION		-	-	-	1,401
NET INCOME (LOSS) APPLICABLE TO COMMON STOCK		$(8,706)	$6,304	$18,218	$13,161
NET INCOME (LOSS) PER COMMON SHARE:
Basic		$(1.10)	$.87	$2.34	$1.88
Diluted		$(1.10)	$.63	$1.72	$1.48
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
Basic		7,883	7,280	7,778	6,998
Diluted		N/A	10,001	10,592	9,812

PW EAGLE, INC.

CONDENSED BALANCE SHEETS

(In thousands, except for shares and per share amounts)

ASSETS	Dec. 31, 2000	Dec. 31, 1999
CURRENT ASSETS:
Cash and cash equivalents	$ 816	$ 2,669
Accounts receivable, net	18,246	26,159
Inventories	44,391	45,777
Deferred income taxes	3,491	2,487
Income tax receivable	3,376	-
Other	291	233
Total current assets	70,611	77,325
Property and equipment, net	76,589	74,895
OTHER ASSETS:
Deferred financing costs, net	3,940	5,300
Land held for sale	655	1,346
Goodwill, less accumulated amortization of $705 and $593, respectively	3,763	3,874
Deferred income taxes	-	4,901
Other	2,821	146
	11,179	15,567
TOTAL ASSETS	$ 158,379	$ 167,787
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Borrowings under revolving credit facility	$ 16,458	$ 30,558
Current maturities of long-term debt	10,408	10,441
Accounts payable	7,839	22,347
Accrued liabilities	16,447	12,244
Total current liabilities	51,152	75,590
OTHER LONG-TERM LIABILITIES	2,713	-
DEFERRED INCOME TAXES	1,080	-
LONG-TERM DEBT, less current maturities	27,500	37,500
SENIOR SUBORDINATED DEBT	28,068	26,752
COMMITMENTS AND CONTINGENCIES
STOCK WARRANTS	5,887	5,887
STOCKHOLDERS’ EQUITY:
Series A preferred stock, 7% cumulative dividend; convertible; $2 per share liquidation preference; no par value; 2,000,000 shares authorized; issued and outstanding none and 18,750 shares, respectively	-	38
Undesignated stock, $.01 par value; 14,490,000 shares authorized; none issued and outstanding	-	-
Common stock, $.01 par value; 30,000,000 shares authorized; issued and outstanding 8,069,675 and 7,721,214 shares, respectively	81	77
Class B Common stock, $.01 par value; 3,500,000 shares authorized; none issued and outstanding	-	-
Additional paid-in capital	40,521	39,013
Unearned compensation	(473)	(587)
Notes receivable from officers and employees on common stock purchases	(1,181)	(1,296)
Retained earnings/(accumulated deficit)	3,031	(15,187)
Total stockholders’ equity	41,979	22,058
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$ 158,379	$ 167,787