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<SEC-DOCUMENT>0000950123-10-111983.txt : 20101208
<SEC-HEADER>0000950123-10-111983.hdr.sgml : 20101208
<ACCEPTANCE-DATETIME>20101208155257
ACCESSION NUMBER:		0000950123-10-111983
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		3
CONFORMED PERIOD OF REPORT:	20101208
ITEM INFORMATION:		Cost Associated with Exit or Disposal Activities
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20101208
DATE AS OF CHANGE:		20101208

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			INSTEEL INDUSTRIES INC
		CENTRAL INDEX KEY:			0000764401
		STANDARD INDUSTRIAL CLASSIFICATION:	STEEL WORKS, BLAST FURNACES & ROLLING & FINISHING MILLS [3310]
		IRS NUMBER:				560674867
		STATE OF INCORPORATION:			NC
		FISCAL YEAR END:			0930

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-09929
		FILM NUMBER:		101239894

	BUSINESS ADDRESS:	
		STREET 1:		1373 BOGGS DR
		CITY:			MOUNT AIRY
		STATE:			NC
		ZIP:			27030
		BUSINESS PHONE:		9107862141

	MAIL ADDRESS:	
		STREET 1:		1373 BOGGS DRIVE
		CITY:			MOUNT AIRY
		STATE:			NC
		ZIP:			27030

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	EXPOSAIC INDUSTRIES INC
		DATE OF NAME CHANGE:	19880511
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>g25465e8vk.htm
<DESCRIPTION>FORM 8-K
<TEXT>
<HTML>
<HEAD>
<TITLE>e8vk</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 1pt solid black; font-size: 1pt">&nbsp;</DIV>




<DIV align="center" style="font-size: 14pt; margin-top: 12pt"><B>UNITED STATES SECURITIES AND EXCHANGE COMMISSION</B>
</DIV>

<DIV align="center" style="font-size: 12pt"><B>Washington, D.C. 20549</B>
</DIV>

<DIV align="center" style="font-size: 18pt; margin-top: 12pt"><B>FORM 8-K</B>
</DIV>


<DIV align="center" style="font-size: 12pt; margin-top: 12pt"><B>CURRENT REPORT</B>
</DIV>


<DIV align="center" style="font-size: 12pt; margin-top: 0pt"><B>PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>Date of Report (Date of earliest event reported): December&nbsp;8, 2010</B></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>Commission File Number 1-9929</B></DIV>

<DIV align="center" style="font-size: 24pt; margin-top: 12pt"><B>Insteel Industries, Inc.</B>
</DIV>

<DIV align="center" style="font-size: 10pt"><DIV style="width: 40%; border-bottom: 1px solid #000000; FONT-size: 1px">&nbsp;</DIV>(Exact name of registrant as specified in its charter)</DIV>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="47%">&nbsp;</TD>
</TR>
<TR></TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top"><B>North Carolina</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>56-0674867</B></TD>
</TR>
<TR style="font-size: 1px">
    <TD align="center" valign="top" style="border-top: 1px solid #000000">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">(State or other jurisdiction of
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(I.R.S. Employer</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">incorporation or organization)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Identification No.)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><B>1373 Boggs Drive, Mount Airy, North Carolina</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>27030</B></TD>
</TR>
<TR style="font-size: 1px">
    <TD align="center" valign="top" style="border-top: 1px solid #000000">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">(Address of principal executive offices)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(Zip Code)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt">Registrant&#146;s telephone number, including area code: (<B>336) 786-2141</B></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the
filing obligation of the registrant under any of the following provisions:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><FONT style="font-family: Wingdings">&#111;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Written communications pursuant to Rule&nbsp;425 under the Securities Act (17 CFR 230.425)
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><FONT style="font-family: Wingdings">&#111;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Soliciting material pursuant to Rule&nbsp;14a-12 under the Exchange Act (17 CFR 240.14a-12)
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><FONT style="font-family: Wingdings">&#111;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pre-commencement communications pursuant to Rule&nbsp;14d-2(b) under the Exchange Act (17
CFR 240.14d-2(b))
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><FONT style="font-family: Wingdings">&#111;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pre-commencement communications pursuant to Rule&nbsp;13e-4(c) under the Exchange Act (17
CFR 240.13e-4(c))
</DIV>


<DIV style="width: 100%; border-bottom: 1pt solid black; margin-top: 10pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>







<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">














<!-- link2 "Item&nbsp;2.05. Costs Associated with Exit or Disposal Activities" -->
<DIV align="left"><A NAME="000"></A></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;2.05. Costs Associated with Exit or Disposal Activities</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On December&nbsp;8, 2010, Insteel Industries, Inc. (the &#147;Company&#148;) issued a press release
announcing that it was closing its leased facility in Houston, Texas and moving the manufacturing
to its Dayton, Texas plant. The production equipment at the Houston facility was acquired in
connection with the Company&#146;s recent purchase of certain of the assets of Ivy Steel &#038; Wire, Inc.
(&#147;Ivy&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The consolidation of the plants is expected to result in the elimination of 67 positions at
the Houston facility and the addition of 19 positions at the Dayton plant, which will be offered to
the Houston employees, for a net reduction of 48 positions. It is anticipated that operations at
the Houston facility will cease by the end of February&nbsp;2011 and the equipment will be redeployed to
other Company locations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Additional details regarding (i)&nbsp;the estimated amount or range of amounts with respect to each
major type of cost associated with the closing of the Houston facility; (ii)&nbsp;an estimate of the
total amount or range of amounts expected to be incurred in connection with the closing of the
Houston facility; and (iii)&nbsp;an estimate of the amount or range of amounts that will result in
future cash expenditures, will be filed on an amended Current Report on Form 8-K within four
business days after the Company makes a determination of such an estimate or range of estimates.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U><I>Cautionary Note Regarding Forward-Looking Statements</I></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This report contains forward-looking statements within the meaning of the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995. When used in this report, the
words &#147;believes,&#148; &#147;anticipates,&#148; &#147;expects,&#148; &#147;estimates,&#148; &#147;plans,&#148; &#147;intends,&#148; &#147;may,&#148; &#147;should&#148; and
similar expressions are intended to identify forward-looking statements. Although the Company
believes that its plans, intentions and expectations reflected in or suggested by such
forward-looking statements are reasonable, such forward-looking statements are subject to a number
of risks and uncertainties, and the Company can provide no assurances that such plans, intentions or
expectations will be achieved. Many of these risks and uncertainties are discussed in detail in the
Company&#146;s periodic and other reports and statements that it files with the U.S. Securities and
Exchange Commission (the &#147;SEC&#148;), in particular in its Annual Report on Form 10-K for the year ended
October&nbsp;2, 2010. You should carefully review these risks and uncertainties.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All forward-looking statements attributable to the Company or persons acting on its behalf are
expressly qualified in their entirety by these cautionary statements. All forward-looking
statements speak only to the respective dates on which such statements are made and the Company
does not undertake and specifically declines any obligation to publicly release the results of any
revisions to these forward-looking statements that may be made to reflect any future events or
circumstances after the date of such statements or to reflect the occurrence of anticipated or
unanticipated events, except as may be required by law.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;It is not possible to anticipate and list all risks and uncertainties that may affect the
Company&#146;s future operations or financial performance; however, they include, but are not limited
to, the following: potential difficulties that may be encountered in integrating the acquisition of
certain assets of Ivy into the Company&#146;s existing business; potential difficulties in realizing
synergies, including reduced operating costs, with respect to the Company&#146;s acquisition of certain
assets of Ivy and the cessation of operations at the Houston, Texas facility; competitive and
customer responses to the Company&#146;s expanded business; general economic and competitive conditions
in the markets in which the Company operates; credit market conditions and the relative
availability of financing to the Company, its customers and the construction industry as a whole;
the continuation of reduced spending for nonresidential construction, particularly commercial
construction, and the impact on demand for the Company&#146;s products; the timing of the resolution of
a new multi-year federal transportation funding authorization and the magnitude of the
infrastructure-related funding provided for that requires the use of the Company&#146;s products; the
severity and duration of the downturn in residential construction and the impact on those portions
of the Company&#146;s business that are correlated with the housing sector; the cyclical nature of the
steel and building material industries; fluctuations in the cost and availability of the Company&#146;s
primary raw material, hot-rolled steel wire rod, from domestic and foreign suppliers; competitive
pricing pressures and the Company&#146;s ability to raise selling prices in order to recover increases
in wire rod costs; changes in U.S. or foreign trade policy affecting imports or exports of steel
wire rod or the Company&#146;s products; unanticipated changes in customer demand, order patterns and
inventory levels; the impact of weak demand and reduced capacity utilization levels on the
Company&#146;s unit manufacturing costs; the Company&#146;s ability to further develop the market for
engineered structural mesh (&#147;ESM&#148;) and expand its shipments of ESM; legal, environmental, economic
or regulatory developments that significantly impact the Company&#146;s operating costs; unanticipated
plant outages, equipment failures or labor difficulties; continued escalation in certain of the
Company&#146;s operating costs; and the other risks and uncertainties
discussed in the Company&#146;s Annual Report on Form 10-K for the year ended October&nbsp;2, 2010 and
in other filings made by the Company with the SEC.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<!-- link2 "Item&nbsp;9.01. Financial Statements and Exhibits" -->

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;9.01. Financial Statements and Exhibits</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>(d)&nbsp;Exhibits</B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">Exhibit&nbsp;99.1 &nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD>Press release dated December&nbsp;8, 2010 announcing consolidation of Texas facilities.</TD>
</TR>







</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>
<!-- link1 "<U>SIGNATURES</U>" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>SIGNATURES</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly
caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left"><U>INSTEEL INDUSTRIES, INC.</U><BR>
Registrant<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">Date: December 8, 2010&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ Michael C. Gazmarian
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">Michael C. Gazmarian&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">Vice President, Chief Financial Officer
and Treasurer&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>

</TABLE>
<!-- link1 "EXHIBIT INDEX" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>EXHIBIT INDEX</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="5%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="93%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Exhibit</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Number</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Description</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">99.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Press release dated December&nbsp;8, 2010 announcing consolidation of Texas facilities.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>



</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>g25465exv99w1.htm
<DESCRIPTION>EX-99.1
<TEXT>
<HTML>
<HEAD>
<TITLE>exv99w1</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Exhibit&nbsp;99.1</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><IMG src="g25465g2546501.gif" alt="(INSTEEL INDUSTRIES, INC. LOGO)">
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><FONT style="FONT-variant: SMALL-CAPS"><B>Insteel Industries, Inc.</B></FONT>
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><U><B>NEWS RELEASE</B></U>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="32%">&nbsp;</TD>
    <TD width="25%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
</TR>
<TR></TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">FOR IMMEDIATE RELEASE
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" nowrap>Contact:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Michael C. Gazmarian</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" nowrap>Vice President, Chief Financial Officer</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"> and Treasurer</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Insteel Industries, Inc.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">336-786-2141, Ext. 3020</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>INSTEEL INDUSTRIES ANNOUNCES CONSOLIDATION OF TEXAS FACILITIES</B></U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">MOUNT AIRY, N.C., December&nbsp;8, 2010 &#151; Insteel Industries, Inc. (NasdaqGS: IIIN) today announced
that it was closing its leased facility in Houston, Texas and moving the manufacturing to its
Dayton, Texas plant. The production equipment at the Houston facility was acquired in connection
with Insteel&#146;s recent purchase of certain of the assets of Ivy Steel &#038; Wire, Inc. (&#147;Ivy&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The consolidation of the plants is expected to result in the elimination of 67 positions at the
Houston facility and the addition of 19 positions at the Dayton plant, which will be offered to the
Houston employees, for a net reduction of 48 positions. It is anticipated that operations at the
Houston facility will cease by the end of February&nbsp;2011 and the equipment will be redeployed to
other Insteel locations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;Considering the ongoing weakness in our markets and reduced utilization levels at both Texas
facilities, we believe these actions are essential to reducing our operating costs and
strengthening our competitive position,&#148; said H.O. Woltz III, Insteel&#146;s president and chief
executive officer. &#147;We do not take the decision to close a facility lightly and are committed to
making the transition as smooth as possible for the employees who are impacted.&#148;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U><B>About Insteel</B></U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Insteel is one of the nation&#146;s largest manufacturers of steel wire reinforcing products for
concrete construction applications. Insteel manufactures and markets PC strand and welded wire
reinforcement, including concrete pipe reinforcement, engineered structural mesh (&#147;ESM&#148;) and
standard welded wire reinforcement. Insteel&#146;s products are sold primarily to manufacturers of
concrete products that are used in nonresidential construction. Headquartered in Mount Airy, North
Carolina, Insteel operates eleven manufacturing facilities located in the United States.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U><B>Cautionary Note Regarding Forward-Looking Statements</B></U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">This news release contains forward-looking statements within the meaning of the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995. When used in this news release,
the words &#147;believes,&#148; &#147;anticipates,&#148; &#147;expects,&#148; &#147;estimates,&#148; &#147;plans,&#148; &#147;intends,&#148; &#147;may,&#148; &#147;should&#148;
and similar expressions are intended to identify forward-looking statements. Although Insteel
believes that its plans, intentions and expectations reflected in or suggested by such
forward-looking statements are reasonable, such forward-looking statements are subject to a number
of risks and uncertainties, and Insteel can provide no assurances that such plans, intentions or
expectations will be achieved. Many of these risks and uncertainties are discussed in detail in
Insteel&#146;s periodic and other reports and statements that it files with the U.S. Securities and
Exchange Commission (the &#147;SEC&#148;), in particular in its Annual Report on
Form 10-K for the year ended October&nbsp;2, 2010. You should carefully review these risks and
uncertainties.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">(MORE)
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>1373 BOGGS DRIVE / MOUNT AIRY, NORTH CAROLINA 27030 / 336-786-2141/ FAX 336-786-2144</B>
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

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<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Page 2 of 2
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">All forward-looking statements attributable to Insteel or persons acting on its behalf are
expressly qualified in their entirety by these cautionary statements. All forward-looking
statements speak only to the respective dates on which such statements are made and Insteel does
not undertake and specifically declines any obligation to publicly release the results of any
revisions to these forward-looking statements that may be made to reflect any future events or
circumstances after the date of such statements or to reflect the occurrence of anticipated or
unanticipated events, except as may be required by law.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">It is not possible to anticipate and list all risks and uncertainties that may affect Insteel&#146;s
future operations or financial performance; however, they include, but are not limited to, the
following: potential difficulties that may be encountered in integrating the acquisition of certain
assets of Ivy into Insteel&#146;s existing business; potential difficulties in realizing synergies,
including reduced operating costs, with respect to Insteel&#146;s acquisition of certain assets of Ivy
and the cessation of operations at the Houston, Texas facility; competitive and customer responses
to Insteel&#146;s expanded business; general economic and competitive conditions in the markets in which
Insteel operates; credit market conditions and the relative availability of financing to Insteel,
its customers and the construction industry as a whole; the continuation of reduced spending for
nonresidential construction, particularly commercial construction, and the impact on demand for
Insteel&#146;s products; the timing of the resolution of a new multi-year federal transportation funding
authorization and the magnitude of the infrastructure-related funding provided for that requires
the use of Insteel&#146;s products; the severity and duration of the downturn in residential
construction and the impact on those portions of Insteel&#146;s business that are correlated with the
housing sector; the cyclical nature of the steel and building material industries; fluctuations in
the cost and availability of Insteel&#146;s primary raw material, hot-rolled steel wire rod, from
domestic and foreign suppliers; competitive pricing pressures and Insteel&#146;s ability to raise
selling prices in order to recover increases in wire rod costs; changes in U.S. or foreign trade
policy affecting imports or exports of steel wire rod or Insteel&#146;s products; unanticipated changes
in customer demand, order patterns and inventory levels; the impact of weak demand and reduced
capacity utilization levels on Insteel&#146;s unit manufacturing costs; Insteel&#146;s ability to further
develop the market for engineered structural mesh (&#147;ESM&#148;) and expand its shipments of ESM; legal,
environmental, economic or regulatory developments that significantly impact Insteel&#146;s operating
costs; unanticipated plant outages, equipment failures or labor difficulties; continued escalation
in certain of Insteel&#146;s operating costs; and the other risks and uncertainties discussed in
Insteel&#146;s Annual Report on Form 10-K for the year ended October&nbsp;2, 2010 and in other filings made
by Insteel with the SEC.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">###
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><FONT style="FONT-variant: SMALL-CAPS"><B>Insteel Industries, Inc.</B></FONT>
</DIV>


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</DIV>



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