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<SEC-DOCUMENT>0000950124-07-000924.txt : 20070216
<SEC-HEADER>0000950124-07-000924.hdr.sgml : 20070216
<ACCEPTANCE-DATETIME>20070216170805
ACCESSION NUMBER:		0000950124-07-000924
CONFORMED SUBMISSION TYPE:	S-4/A
PUBLIC DOCUMENT COUNT:		5
FILED AS OF DATE:		20070216
DATE AS OF CHANGE:		20070216

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			TITAN INTERNATIONAL INC
		CENTRAL INDEX KEY:			0000899751
		STANDARD INDUSTRIAL CLASSIFICATION:	STEEL WORKS, BLAST FURNACES  ROLLING MILLS (COKE OVENS) [3312]
		IRS NUMBER:				363228472
		STATE OF INCORPORATION:			IL
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		S-4/A
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-140121
		FILM NUMBER:		07632211

	BUSINESS ADDRESS:	
		STREET 1:		2701 SPRUCE ST
		CITY:			QUINCY
		STATE:			IL
		ZIP:			62301
		BUSINESS PHONE:		2172286011

	MAIL ADDRESS:	
		STREET 1:		2701 SPRUCE ST
		CITY:			QUINCY
		STATE:			IL
		ZIP:			62301

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	TITAN WHEEL INTERNATIONAL INC
		DATE OF NAME CHANGE:	19930403
</SEC-HEADER>
<DOCUMENT>
<TYPE>S-4/A
<SEQUENCE>1
<FILENAME>k11509asv4za.htm
<DESCRIPTION>AMENDMENT NO.1 TO FORM S-4
<TEXT>
<HTML>
<HEAD>
<TITLE>sv4za</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 94%; margin-left: 3%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B> As filed with the Securities and Exchange Commission on
    February 16, 2007</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="right" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B> Registration
    <FONT style="white-space: nowrap">No.&#160;333-140121</FONT></B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>
    <CENTER style="font-size: 1pt; width: 100%; border-bottom: 2pt solid #000000"></CENTER><!-- callerid=128 iwidth=540 length=0 --></B>
</DIV>

<CENTER style="font-size: 1pt; width: 100%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=540 length=0 -->

<DIV style="margin-top: 2pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 14pt">UNITED STATES SECURITIES AND
    EXCHANGE COMMISSION</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 12pt">Washington,&#160;D.C.
    20549</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 1pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 15%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=540 length=84 -->

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 12pt">AMENDMENT NO. 1</FONT></B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 12pt"> TO</FONT></B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 16pt">
    <FONT style="white-space: nowrap">Form&#160;S-4</FONT></FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 12pt">REGISTRATION
    STATEMENT</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 12pt">UNDER</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 12pt">THE SECURITIES ACT OF
    1933</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 1pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 15%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=540 length=84 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 22pt">Titan International,
    Inc.</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><FONT style="font-size: 7pt">(Exact name of registrant as
    specified in its charter)</FONT></I>
</DIV>

<DIV style="margin-top: 1pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="34%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="32%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="32%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
</TR>
<TR valign="bottom">
<TD nowrap align="center" valign="top">
    <B><FONT style="font-size: 9pt">Illinois</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <B><FONT style="font-size: 9pt">3312</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <B><FONT style="font-size: 9pt">36-3228472</FONT></B>
</TD>
</TR>
<TR valign="bottom">
<TD align="center" valign="top">
    <I><FONT style="font-size: 7pt">(State or other jurisdiction
    of<BR>
    incorporation or organization)</FONT></I>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    <I><FONT style="font-size: 7pt">(Primary Standard Industrial<BR>
    Classification Code Number)</FONT></I>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    <I><FONT style="font-size: 7pt">(I.R.S. Employer<BR>
    Identification Number)</FONT></I><FONT style="font-size: 7pt">
    </FONT>
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 15%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=540 length=84 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 9pt">Titan International,
    Inc.</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 9pt">2701 Spruce Street</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 9pt">Quincy, IL 62301</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 9pt">(217)&#160;228-6011</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><FONT style="font-size: 7pt">(Address, including zip code,
    and telephone number, including area code, of registrant&#146;s
    principal executive offices)</FONT></I>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 15%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=540 length=84 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 9pt">Cheri T. Holley</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 9pt">Vice President, Secretary and
    General Counsel</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 9pt">Titan International,
    Inc.</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 9pt">2701 Spruce Street</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 9pt">Quincy, IL 62301</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 9pt">(217)&#160;228-6011</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><FONT style="font-size: 7pt">(Name, address, including zip
    code, and telephone number, including area code, of agent for
    service)</FONT></I>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 15%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=540 length=84 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I><FONT style="font-size: 9pt">Copies to:</FONT></I></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="50%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="49%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<TR valign="bottom">
<TD align="center" valign="top">
    <B><FONT style="font-size: 9pt">Barbara A. Bowman<BR>
    Bodman LLP<BR>
    6<SUP style="font-size: 85%; vertical-align: text-top">th</SUP>&#160;Floor
    at Ford Field<BR>
    1901 St. Antoine Street<BR>
    Detroit, MI 48226<BR>
    (313)&#160;259-7777</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    <B><FONT style="font-size: 9pt">Lisa L. Jacobs<BR>
    Shearman&#160;&#38; Sterling LLP<BR>
    599 Lexington Avenue<BR>
    New York, New York 10022<BR>
    (212) 848-4000 </FONT></B>
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 15%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=540 length=84 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Approximate date of commencement of proposed sale of the
    securities to the public:</B>&#160;&#160;As soon as practicable
    after this Registration Statement becomes effective.
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If the securities being registered on this Form are being
    offered in connection with the formation of a holding company
    and there is compliance with General Instruction G, check the
    following box.&#160;&#160;<FONT face="wingdings">o
    </FONT>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If this Form is filed to register additional securities for an
    offering pursuant to Rule&#160;462(b) under the Securities Act
    of 1933, as amended (the &#147;Securities Act&#148;), check the
    following box and list the Securities Act registration statement
    number of the earlier effective registration statement for the
    same offering.&#160;&#160;<FONT face="wingdings">o
    </FONT>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If this Form is a post-effective amendment filed pursuant to
    Rule&#160;462(d) under the Securities Act, check the following
    box and list the Securities Act registration statement number of
    the earlier effective registration statement for the same
    offering.&#160;&#160;<FONT face="wingdings">o
    </FONT>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>The Registrant hereby amends this Registration Statement on
    such date or dates as may be necessary to delay its effective
    date until the Registrant shall file a further amendment which
    specifically states that this Registration Statement shall
    thereafter become effective in accordance with Section&#160;8(a)
    of the Securities Act of 1933, as amended, or until the
    Registration Statement shall become effective on such date as
    the Commission, acting pursuant to said Section&#160;8(a), may
    determine.</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 100%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=540 length=0 -->

<CENTER style="font-size: 1pt; width: 100%; border-bottom: 2pt solid #000000"></CENTER><!-- callerid=999 iwidth=540 length=0 -->

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 94%; margin-left: 3%"><!-- BEGIN LOGICAL PAGE -->

<TABLE style="color: #FF0000" width="100%" border="1" cellpadding="5"><TR><TD style=text-align:justify>
<FONT style="font-size: 10pt; font-family: Arial, Helvetica; color: #E8112D">The
information in this conversion offer prospectus is not complete
and may be changed. You may not receive securities in the
conversion offer until the registration statement filed with the
Securities and Exchange Commission is effective. This conversion
offer prospectus is not an offer to convert or exchange these
securities and is not soliciting an offer to convert or exchange
these securities in any state where the offer, conversion or
exchange is not permitted.<BR>
</FONT>
</TD></TR></TABLE>

<DIV style="margin-top: 1pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 8pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><U><FONT style="font-family: 'Times New Roman', Times">CONVERSION
    OFFER PROSPECTUS</FONT></U></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <IMG src="k11509ak1150900.gif" alt="(TITAN INTERNATIONAL, INC. logo)" >
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 24pt">Titan International,
    Inc.</FONT></B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 14pt"> Offer to Increase Conversion
    Rate<BR>
    Upon the Conversion of<BR>
    Titan International Inc.&#146;s<BR>
    5.25%&#160;Senior Convertible Notes due 2009<BR>
    (CUSIP Nos.&#160;88830MAB8 and 88830MAA0)<BR>
    into Titan International, Inc. Common Stock</FONT></B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 7%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We are offering to increase the conversion rate to holders of
    our 5.25% Senior Convertible Notes (the &#147;Convertible
    Notes&#148;) who elect to convert their Convertible Notes into
    shares of our common stock, no par value per share, in
    accordance with the terms and subject to the conditions
    described in this conversion offer prospectus and the
    accompanying letter of transmittal. As of February&#160;15,
    2007, $81,200,000 principal amount of Convertible Notes was
    outstanding.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 7%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Convertible Notes are currently convertible at a conversion
    rate of 74.0741&#160;shares of common stock per $1,000 principal
    amount of notes, subject to adjustment, which is equivalent to a
    conversion price of approximately $13.50 per share. Holders who
    surrender their Convertible Notes for conversion on or before
    5:00&#160;p.m., New York City time, on March&#160;&#160;&#160;,
    2007 will receive a conversion rate of 81.0&#160;shares per
    $1,000 principal amount of notes, subject to adjustment, which
    is equivalent to a conversion price of approximately $12.35 per
    share. This represents an increase in the conversion rate of
    6.9259&#160;shares per $1,000 principal amount of notes, subject
    to adjustment, which is equivalent to a decrease in the
    conversion price of approximately $1.15&#160;per share.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 7%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This offer will expire at 5:00&#160;p.m., New York City time,
    on&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    March&#160;&#160;&#160;, 2007, unless extended or earlier
    terminated.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 7%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We are not required to issue fractional shares of common stock
    upon conversion of the Convertible Notes. Instead, we will pay a
    cash adjustment for such fractional shares based upon the
    closing price of the common stock on the business day preceding
    the settlement date. If all Convertible Notes are converted in
    the conversion offer, we would be required to issue a total of
    6,577,200&#160;shares of common stock.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 7%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Convertible Notes are not listed on any national securities
    exchange and there is no established trading market for these
    Convertible Notes. However, the Convertible Notes are traded on
    the
    PORTAL<SUP style="font-size: 85%; vertical-align: text-top"><FONT style="font-variant: SMALL-CAPS">sm</FONT></SUP>
    system of The NASDAQ Stock Market, Inc. Our common stock is
    traded on the New York Stock Exchange under the symbol
    &#147;TWI.&#148; As of February&#160;14, 2007, the closing price
    of the common stock on the New York Stock Exchange was
    $23.96&#160;per share. The shares of common stock to be issued
    in this conversion offer have been approved for listing on the
    New York Stock Exchange.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 7%; font-size: 12pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Conversion of the Convertible Notes and an investment in the
    common stock involves risks. See &#147;Risk Factors&#148;
    beginning on page&#160;10 for a discussion of issues that you
    should consider with respect to this conversion offer.</B>
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 7%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    You must make your own decision whether to convert any
    Convertible Notes in this conversion offer, and, if so, the
    amount of Convertible Notes to convert. Neither Titan
    International, Inc., the conversion agent, the information
    agent, the dealer manager, the trustee nor any other person is
    making any recommendation as to whether you should convert your
    Notes in the conversion offer.
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 6%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Neither the Securities and Exchange Commission nor any state
    securities commission has approved or disapproved of these
    securities or determined if this conversion offer prospectus is
    truthful or complete. Any representation to the contrary is a
    criminal offense.</B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 2pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 19%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=456 length=90 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 2pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The dealer manager for the conversion offer is:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-size: 18pt">Merrill Lynch&#160;&#38; Co.
    </FONT>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The date of this conversion offer prospectus is
    February&#160;&#160;&#160;, 2007
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 2pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 19%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=456 length=90 -->

<DIV style="margin-top: 2pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->
<DIV align="left">
<!-- TOC -->
</DIV>

<DIV align="left">
<A name="tocpage"></A>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">TABLE OF
    CONTENTS</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="97%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=quadleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=quadright -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Page</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#101'><FONT style="font-size: 10pt">SPECIAL
    NOTE&#160;REGARDING FORWARD-LOOKING STATEMENTS</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">ii
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#102'><FONT style="font-size: 10pt">SUMMARY</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">1
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#103'><FONT style="font-size: 10pt">RISK
    FACTORS</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">10
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#104'><FONT style="font-size: 10pt">QUESTIONS AND
    ANSWERS ABOUT THE CONVERSION OFFER</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">18
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#105'><FONT style="font-size: 10pt">THE CONVERSION
    OFFER</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">23
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#106'><FONT style="font-size: 10pt">MARKET FOR OUR
    COMMON STOCK AND CONVERTIBLE NOTES</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">30
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#107'><FONT style="font-size: 10pt">USE OF
    PROCEEDS</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">30
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#121'><FONT style="font-size: 10pt">RATIO OF EARNINGS
    TO FIXED CHARGES</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">30
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#108'><FONT style="font-size: 10pt">DESCRIPTION OF OUR
    CONVERTIBLE NOTES</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">31
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#109'><FONT style="font-size: 10pt">DESCRIPTION OF
    CAPITAL STOCK</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">43
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#110'><FONT style="font-size: 10pt">MATERIAL
    U.S.&#160;FEDERAL INCOME TAX CONSIDERATIONS</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">44
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#111'><FONT style="font-size: 10pt">INCORPORATION OF
    CERTAIN DOCUMENTS BY REFERENCE</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">49
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#112'><FONT style="font-size: 10pt">INTERESTS OF
    DIRECTORS AND OFFICERS</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">49
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#113'><FONT style="font-size: 10pt">DEALER
    MANAGER</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">50
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#114'><FONT style="font-size: 10pt">INFORMATION
    AGENT</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">50
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#115'><FONT style="font-size: 10pt">CONVERSION
    AGENT</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">50
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#116'><FONT style="font-size: 10pt">FEES AND
    EXPENSES</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">51
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#117'><FONT style="font-size: 10pt">LEGAL
    MATTERS</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">51
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#118'><FONT style="font-size: 10pt">EXPERTS</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">51
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#119'><FONT style="font-size: 10pt">MISCELLANEOUS</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">51
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#120'><FONT style="font-size: 10pt">WHERE YOU CAN FIND
    MORE INFORMATION</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">51
    </FONT>
</TD>
<TD>
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left">
<!-- /TOC -->
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 18%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=455 length=84 -->

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As used in this conversion offer prospectus, except where the
    context otherwise requires or as otherwise indicated,
    &#147;Titan International, Inc.&#148;, &#147;Titan,&#148; the
    &#147;company,&#148; &#147;we,&#148; &#147;our,&#148; and
    &#147;us&#148; refer to Titan International, Inc. and its
    subsidiaries. We refer to our 5.25%&#160;Senior Convertible
    Notes due 2009 as the &#147;Convertible Notes.&#148;
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This conversion offer prospectus incorporates important business
    and financial information about us that is not included in or
    delivered with this conversion offer prospectus. <B>Information
    incorporated by reference is available without charge to holders
    of our Convertible Notes upon written or oral request to us at
    Titan International, Inc., 2701 Spruce Street, Quincy, Illinois
    62301, Attention: Cheri T. Holley, Vice President, Secretary and
    General Counsel, or by telephone at
    <FONT style="white-space: nowrap">(217)&#160;228-6011.</FONT>
    To obtain timely delivery, holders of Convertible Notes must
    request the information no later than five business days before
    the date they must make their investment decision, or
    March&#160;&#160;&#160;, 2007, the present expiration date of
    the conversion offer, and deliver proper instructions prior to
    the expiration date of the conversion offer.</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    You should rely only on the information contained or
    incorporated by reference in this conversion offer prospectus.
    We have not, and each of the dealer manager, the information
    agent and the conversion agent has not, authorized any other
    person to provide you with different or additional information.
    If anyone provides you with different or additional information,
    you should not rely on it. We are not making an offer to convert
    these securities in any jurisdiction where the offer or
    conversion is not permitted. To the best of our knowledge, the
    information in this conversion offer prospectus is materially
    accurate on the date appearing on the front cover of this
    conversion offer prospectus. You should assume that the
    information in this conversion offer prospectus is materially
    accurate as of the date appearing on the front cover of this
    conversion offer prospectus only. Our business, financial
    condition, results of operations and prospects may have changed
    since that date.
</DIV>

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->
<A name='101'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">SPECIAL
    NOTE&#160;REGARDING FORWARD-LOOKING STATEMENTS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This conversion offer prospectus and the documents incorporated
    by reference herein include forward-looking statements.
    Forward-looking statements are those that predict or describe
    future events or trends and that do not relate solely to
    historical matters. You can generally identify forward-looking
    statements as statements containing the words
    &#147;believe,&#148; &#147;expect,&#148; &#147;will,&#148;
    &#147;anticipate,&#148; &#147;intend,&#148;
    &#147;estimate,&#148; &#147;project,&#148; &#147;plan,&#148;
    &#147;assume,&#148; &#147;seek to&#148; or other similar
    expressions, although not all forward-looking statements contain
    these identifying words. We commonly use forward-looking
    statements throughout this conversion offer prospectus and the
    documents incorporated by reference herein regarding the
    following subjects:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    this conversion offer;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    our business strategy, plans and objectives;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    our understanding of our competition;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    market trends;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    projected sources and uses of available cash flow;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    projected capital expenditures;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    our future financial results and performance;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    potential liability with respect to legal proceedings;&#160;and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    potential effects of proposed legislation and regulatory action.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    You should not place undue reliance on our forward-looking
    statements because the matters they describe are subject to
    risks, uncertainties and other unpredictable factors, many of
    which are beyond our control. Our forward-looking statements are
    based on the information currently available to us and are
    applicable only as of the date on the cover of this conversion
    offer prospectus or, in the case of forward-looking statements
    incorporated by reference, as of the date of the filing that
    includes the statement. New risks and uncertainties arise from
    time to time, and it is impossible for us to predict these
    matters or how they may affect us. Over time, our actual
    results, performance or achievements will likely differ from the
    anticipated results, performance or achievements that are
    expressed or implied by our forward-looking statements, and such
    difference might be significant and materially adverse to our
    stockholders. Such factors include, without limitation, the
    following:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    those identified under &#147;Risk Factors&#148; including,
    without limitation:
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="2%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the cyclical nature of the industries in which we operate
    including the factors that have led to recent corn prices;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    our concentrated customer base;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    substantial competition from international and domestic
    companies;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    unanticipated losses related to acquisitions or investments;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    failure to maintain satisfactory labor relations;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    price fluctuations of key commodities;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    our reliance on a limited number of suppliers;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    unfavorable outcomes of legal proceedings;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    costs related to compliance with corporate governance
    requirements;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    limitations on our financial and operating flexibility as a
    result of our significant interest expense compared to our cash
    flows;&#160;and
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    ii
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="2%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    restrictions on our ability to pursue our business strategies or
    repay our indebtedness as a result of restrictive covenants in
    our credit facility and the indenture governing our senior
    unsecured convertible notes;
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    those identified from time to time in our public filings with
    the Securities and Exchange Commission;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the negative impact of economic slowdowns or recessions;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the effect of changes in interest rates;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the condition of the markets for our products;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    our access to funding sources and our ability to renew, replace
    or add to our existing credit facilities on terms comparable to
    the current terms;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the impact of new state or federal legislation or court
    decisions on our operations;&#160;and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the impact of new state or federal legislation or court
    decisions restricting the activities of lenders or suppliers of
    credit in our market.
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    iii
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->
<A name='102'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">SUMMARY</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>The following summary is qualified in its entirety by, and
    should be read in conjunction with, the more detailed
    information included elsewhere or incorporated by reference in
    this conversion offer prospectus as well as the information
    contained in the letter of transmittal and any amendments or
    supplements thereto. Because this is a summary, it may not
    contain all the information you should consider before deciding
    whether to accept our offer to convert your Convertible Notes in
    the conversion offer. You should read this entire prospectus
    carefully, including the section entitled &#147;Risk
    Factors,&#148; before making your investment decision.</I>
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Titan
    International, Inc.</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We are a leading manufacturer of steel wheels and tires for
    off-highway vehicles used in the agricultural,
    earthmoving/construction, military and consumer products
    (including recreational trailers, all terrain vehicles
    (&#147;ATVs&#148;) and grounds care vehicles) markets. We
    generally manufacture the wheels and tires for these vehicles
    and provide the value-added service of selling a complete wheel
    and tire assembly. We offer thousands of products that are
    manufactured in relatively short production runs and must meet
    Original Equipment Manufacturers&#146; (&#147;OEM&#148;)
    specifications. Our net sales for 2005 and our net sales for the
    nine months ended September&#160;30, 2006 were approximately
    $470&#160;million and $514&#160;million, respectively. We have
    three operating segments: Agricultural, Earthmoving/Construction
    and Consumer.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our Agricultural segment accounted for 64% of revenue for the
    nine months ended September&#160;30, 2006. Our agricultural
    rims, wheels and tires are manufactured for use on various
    agricultural and forestry equipment, including tractors,
    combines, skidders, plows, planters and irrigation equipment,
    and are sold directly to OEMs and to the aftermarket through
    independent distributors, equipment dealers and our own
    distribution centers. The wheels and rims range in diameter from
    9&#148; to 54&#148; with the 54&#148; diameter being the largest
    agricultural wheel manufactured in North America. Basic
    configurations are combined with distinct variations (such as
    different centers and a wide range of material thickness)
    allowing us to offer a broad line of product models to meet
    customer specifications. Our agricultural tires range from
    8&#148; to 85&#148; in diameter and from 4.8&#148; to 44&#148;
    in width. We also offer the added value of delivering a complete
    wheel and tire assembly to customers in the agricultural market.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our Earthmoving/Construction segment accounted for 23% of
    revenue for the nine months ended September&#160;30, 2006. We
    manufacture rims, wheels and tires for various types of
    earthmoving, mining, military and construction equipment,
    including skid steers, aerial lifts, cranes, graders and
    levelers, scrapers, self-propelled shovel loaders, load
    transporters, haul trucks and backhoe loaders. We provide
    customers with a broad range of earthmoving/construction wheels
    ranging in diameter from 20&#148; to 63&#148;, in width from
    8&#148; to 60&#148; and in weight from 125 pounds to 7,000
    pounds. The 63&#148; diameter wheel is the largest manufactured
    in North America for the earthmoving/construction market. We
    sell our wheels and tires to both the OEM and Aftermarket
    segments. We also offer the added value of a complete wheel and
    tire assembly in the earthmoving/construction market.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our Consumer segment accounted for 13% of revenue for the nine
    months ended September&#160;30, 2006. We build a variety of
    products for all-terrain vehicles (ATV), turf, golf and trailer
    applications. Consumer wheels and rims range from 8&#148; to
    16&#148; in diameter. Recently, ATV tires using the new
    stripwinding manufacturing process have been introduced to the
    marketplace. For the domestic boat, recreational and utility
    trailers markets, we provide wheels and tires and assemble
    brakes, actuators and components. We also offer the value-added
    service of a complete wheel and tire assembly in the consumer
    market.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our major OEM customers include Deere&#160;&#38; Company
    (&#147;Deere&#148;), CNH Global N.V. (&#147;CNH&#148;), AGCO
    Corporation, Kubota Corporation and Caterpillar Inc.
    (&#147;CAT&#148;). In addition, we continue to expand our sales
    of wheels and tires to the aftermarket, where product demand
    tends to be less cyclical than in the OEM market. We distribute
    our tire products in the aftermarket primarily through a network
    of independent distributors and also through our own
    distribution centers. This distribution network enables us to
    service markets not otherwise accessible through our traditional
    OEM marketing channels.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We are an Illinois corporation. Our principal corporate offices
    are located at 2701 Spruce Street, Quincy, Illinois 62301, and
    the telephone number is
    <FONT style="white-space: nowrap">(217)&#160;228-6011.</FONT>
</DIV>
</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    1
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Purpose
    of the Conversion Offer</FONT></B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We are offering to increase the conversion rate for the
    Convertible Notes surrendered for conversion upon the terms and
    subject to the conditions set forth in this conversion offer
    prospectus and the related letter of transmittal. The
    Convertible Notes are currently convertible at a conversion rate
    of 74.0741&#160;shares of common stock per $1,000 principal
    amount of notes, subject to adjustment, which is equivalent to a
    conversion price of approximately $13.50&#160;per share. The
    conversion offer allows current holders of Convertible Notes who
    surrender their Convertible Notes for conversion on or before
    5:00&#160;p.m., New York City time, on March&#160;&#160;&#160;,
    2007 to receive a conversion rate of 81.0&#160;shares per $1,000
    principal amount of notes, subject to adjustment, which is
    equivalent to a conversion price of approximately $12.35 per
    share. This represents an increase in the conversion rate of
    6.9259&#160;shares per $1,000 principal amount of notes, subject
    to adjustment, which is equivalent to a decrease in the
    conversion price of approximately $1.15&#160;per share. The
    purposes of the conversion offer are to induce the conversion
    into common stock of any and all of the outstanding Convertible
    Notes to reduce our ongoing fixed interest obligations, and to
    improve the trading liquidity of our common stock by increasing
    the number of outstanding shares of common stock available for
    trading.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Recent
    Developments</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Closing of Senior Unsecured Notes.</I>&#160;&#160;On
    December&#160;28, 2006, we issued $200&#160;million principal
    amount of five-year senior unsecured notes due 2012. The notes
    are senior unsecured obligations of the company. The
    $200&#160;million of five-year senior unsecured notes were sold
    at par and will bear interest at a rate of 8&#160;percent per
    annum. We used the net proceeds from that offering to repay the
    balance of our revolving credit facility and we will use the
    remaining cash for general corporate purposes. The Company
    lowered its revolving loan availability on its credit facility
    to $125&#160;million and had no cash borrowings on this facility
    at year-end 2006.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Continental Acquisition.</I>&#160;&#160;On July&#160;31,
    2006, we acquired the
    <FONT style="white-space: nowrap">off-the-road</FONT>
    (OTR) tire assets of Continental Tire North America, Inc.
    (Continental) in Bryan, Ohio. We purchased the assets of
    Continental&#146;s OTR tire facility for approximately
    $53&#160;million in cash proceeds. The assets purchased included
    Continental&#146;s OTR plant, property and equipment located in
    Bryan, Ohio, and inventory and other current assets. The
    productivity obtained since startup after the July&#160;31
    acquisition date associated with the Bryan facility is meeting
    current expectations. The Bryan facility achieved a
    manufacturing output of approximately $16&#160;million since
    startup after the July&#160;31 acquisition date through
    September&#160;30, 2006.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Goodyear Acquisition.</I>&#160;&#160;On December&#160;28,
    2005, we acquired The Goodyear Tire&#160;&#38; Rubber
    Company&#146;s North American farm tire assets. We purchased the
    assets of Goodyear&#146;s North American farm tire business for
    approximately $100&#160;million in cash proceeds. The assets
    purchased include Goodyear&#146;s North American plant, property
    and equipment located in Freeport, Illinois, and Goodyear&#146;s
    North American farm tire inventory. The December 2005 Goodyear
    North American farm tire asset acquisition included a long-term
    license agreement with The Goodyear Tire&#160;&#38; Rubber
    Company to manufacture and sell certain off-highway tires in
    North America, which includes the right to use the Goodyear
    trademark. The productivity obtained during the first nine
    months of 2006 associated with the Freeport facility is meeting
    our current expectations. The Freeport facility achieved a
    manufacturing output of approximately $38&#160;million and
    $150&#160;million of manufacturing output during the three and
    nine months ended September&#160;30, 2006, respectively.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Termination of Cash Merger Discussions.</I>&#160;&#160;On
    October&#160;11, 2005, we received an offer from One Equity
    Partners LLC (One Equity), a private equity affiliate of
    JPMorgan Chase&#160;&#38; Co., indicating One Equity&#146;s
    interest in acquiring us in a cash merger for $18.00&#160;per
    share of our common stock. On April&#160;12, 2006, we and One
    Equity announced the termination of discussions regarding the
    proposed cash merger. On April&#160;17, 2006, our Board of
    Directors met and thanked the Special Committee, which had been
    formed to pursue discussions regarding One Equity&#146;s
    proposed cash merger, for all their efforts expended and agreed
    that their Special Committee responsibilities have been
    completed.
</DIV>
</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    2
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Selected
    Historical Consolidated Financial Data</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The selected financial data presented below as of and for the
    years ended December&#160;31, 2001, 2002, 2003, 2004 and 2005
    has been derived from our consolidated financial statements, as
    audited by PricewaterhouseCoopers LLP, our independent
    registered public accounting firm. The selected financial data
    presented below as of and for the nine months ended
    September&#160;30, 2005 and 2006, has been derived from our
    unaudited interim consolidated financial statements. In the
    opinion of management, the unaudited interim consolidated
    financial statements have been prepared on a basis consistent
    with the audited financial statements and include all
    adjustments, which are normal recurring adjustments, necessary
    for a fair presentation of the results of operations for the
    periods presented. Results of operations for the interim periods
    are not indicative of the results that might be expected for any
    other interim period or for an entire year. You should read this
    table in conjunction with &#147;Management&#146;s Discussion and
    Analysis of Financial Condition and Results of Operations&#148;
    and our consolidated financial statements and related notes
    thereto included in our Annual Report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    for the year ended December&#160;31, 2005, and our Quarterly
    Report on
    <FONT style="white-space: nowrap">Form&#160;10-Q</FONT>
    for the quarter ended September&#160;30, 2006, incorporated by
    reference in this conversion offer prospectus.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="36%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
    <TD width="5%">&nbsp;</TD>	<!-- colindex=07 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=07 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=07 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=07 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=08 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=08 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=08 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=08 type=hang1 -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="18" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom">
    <B>Nine Months Ended<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="18" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Year Ended December&#160;31,</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>September&#160;30,</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2001</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2002</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2003</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2004</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2005</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2005</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2006</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom">
    <B>(Unaudited)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="26" nowrap align="center" valign="bottom">
    <B>(Amounts in thousands)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <B><FONT style="font-size: 10pt">Statement of Operations
    Data:</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <FONT style="font-size: 10pt">Net sales
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    457,475
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    462,820
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    491,672
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    510,571
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    470,133
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    373,550
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    513,891
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <FONT style="font-size: 10pt">Gross profit
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18,664
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    29,741
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    29,703
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    79,500
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    64,210
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    57,556
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    70,636
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <FONT style="font-size: 10pt">(Loss) income from operations
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (33,465
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (14,086
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (16,220
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    33,322
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11,999
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    29,308
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    33,650
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <FONT style="font-size: 10pt">(Loss) income before income taxes
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (46,386
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (44,293
</TD>
<TD nowrap align="left" valign="bottom">
    )(a)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (33,668
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15,215
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,885
</TD>
<TD nowrap align="left" valign="bottom">
    )(b)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16,583
</TD>
<TD nowrap align="left" valign="bottom">
    (b)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    24,473
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <FONT style="font-size: 10pt">Net (loss) income
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (34,789
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (35,877
</TD>
<TD nowrap align="left" valign="bottom">
    )(a)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (36,657
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11,107
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11,042
</TD>
<TD nowrap align="left" valign="bottom">
    (b)(c)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16,583
</TD>
<TD nowrap align="left" valign="bottom">
    (b)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14,684
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <B><FONT style="font-size: 10pt">Other Financial Data:</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <FONT style="font-size: 10pt">Depreciation and amortization
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    37,263
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    33,622
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    32,277
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    24,907
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    20,746
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    15,854
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    19,460
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <FONT style="font-size: 10pt">Capital expenditures
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11,865
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,759
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14,564
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,328
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,752
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,083
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,844
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <FONT style="font-size: 10pt">Interest expense
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20,919
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20,565
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20,231
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16,159
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,617
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,723
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11,997
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <FONT style="font-size: 10pt">Cash flows from operating
    activities
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    25,763
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16,908
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,382
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18,149
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    22,899
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    35,619
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (13,362
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <FONT style="font-size: 10pt">Cash flows from investing
    activities
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (16,486
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (9,141
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (33,754
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    62,392
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (76,743
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,695
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (48,808
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <FONT style="font-size: 10pt">Cash flows from financing
    activities
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (5,610
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,407
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,219
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (85,751
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    53,306
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (33,460
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    61,859
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <B><FONT style="font-size: 10pt">Balance Sheet Data (end of
    period):</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <FONT style="font-size: 10pt">Cash and cash equivalents
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    9,214
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    22,049
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    6,556
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,130
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    592
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    594
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    281
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <FONT style="font-size: 10pt">Working capital
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    180,684
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    170,263
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    183,971
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    114,898
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    157,984
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    120,133
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    212,386
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <FONT style="font-size: 10pt">Current assets
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    262,723
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    254,569
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    286,946
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    154,668
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    206,167
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    156,706
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    301,613
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <FONT style="font-size: 10pt">Total assets
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    568,954
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    531,999
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    523,084
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    354,166
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    440,756
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    336,924
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    566,731
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <FONT style="font-size: 10pt">Long-term debt
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    256,622
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    249,119
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    248,397
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    169,688
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    190,464
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    101,887
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    258,590
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <FONT style="font-size: 10pt">Stockholders&#146; equity
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    185,907
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    144,027
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    111,956
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    106,881
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    167,813
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    162,980
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    186,695
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=60 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="4%"></TD>
    <TD width="1%"></TD>
    <TD width="95%"></TD>
</TR>

<TR>
    <TD valign="top">
    (a) </TD>
    <TD></TD>
    <TD valign="bottom">
    Includes loss on investments of $12.4&#160;million
    ($10.0&#160;million after taxes).</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    (b) </TD>
    <TD></TD>
    <TD valign="bottom">
    Includes noncash convertible debt conversion charge of
    $7.2&#160;million.</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    (c) </TD>
    <TD></TD>
    <TD valign="bottom">
    Includes tax benefit of $13.9&#160;million for tax valuation
    allowance.</TD>
</TR>

</TABLE>
</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    3
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">UNAUDITED
    PRO FORMA CONSOLIDATED CONDENSED FINANCIAL INFORMATION</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following unaudited pro forma consolidated condensed
    statements of operations for the year ended December&#160;31,
    2005, and the nine months ended September&#160;30, 2006, give
    effect to the acquisition of the Continental Tire North America
    (Continental)
    <FONT style="white-space: nowrap">off-the-road</FONT>
    (OTR) tire assets. The December&#160;31, 2005 pro forma
    consolidated condensed statement of operations also gives effect
    to the Goodyear North American Farm Tire Acquisition. The pro
    forma statements also give effect to this convertible note
    conversion offer and assume that all outstanding notes are
    converted. The pro forma consolidated condensed statements of
    operations are presented as if all of the transactions had
    occurred on January&#160;1, 2005.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The pro forma statements of operations were derived by adjusting
    our historical financial statements. The adjustments are based
    on currently available information and, therefore, the actual
    adjustments may differ from the pro forma adjustments.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The pro forma statements of operations have also been derived
    from Continental
    <FONT style="white-space: nowrap">off-the-road</FONT>
    tire assets historical accounting records and are presented on a
    carve-out basis to include the historical operations applicable
    to the assets we acquired in Bryan, Ohio. The historical
    statements of revenue and certain expenses vary from an income
    statement in that they do not show certain expenses that were
    incurred in connection with the seller&#146;s ownership of the
    acquired assets, including interest, corporate expenses, and
    income taxes. The seller did not segregate such operating cost
    information related to the
    <FONT style="white-space: nowrap">off-the-road</FONT>
    tire assets for financial reporting purposes and, therefore, any
    pro forma allocation would not be a reliable estimate of what
    these costs would actually have been had the Continental
    <FONT style="white-space: nowrap">off-the-road</FONT>
    tire assets been operated as a stand alone entity.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The pro forma statements of operations have also been derived
    from The Goodyear Tire&#160;&#38; Rubber Company&#146;s North
    American farm tire asset historical accounting records and are
    presented on a carve-out basis to include the historical
    operations applicable to the Freeport, Illinois, facility. The
    historical combined statements of revenue, cost of goods sold,
    and direct operating expenses vary from an income statement in
    that they do not show certain expenses that were incurred in
    connection with the seller&#146;s ownership of the acquired
    assets, including interest, corporate expenses, and income
    taxes. The seller had never segregated such operating cost
    information related to the North American farm tire assets for
    financial reporting purposes and, therefore, any pro forma
    allocation would not be a reliable estimate of what these costs
    would actually have been had the Goodyear North American farm
    tire assets been operated as a stand alone entity. The Goodyear
    North American farm tire assets were acquired on
    December&#160;28, 2005.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The pro forma consolidated condensed financial statements should
    be read in conjunction with the historical consolidated
    financial statements and the related notes thereto included in
    the Titan International, Inc. 2005 Annual Report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    and the September, 2006, Quarterly Report on
    <FONT style="white-space: nowrap">Form&#160;10-Q.</FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The pro forma information is presented for illustrative purposes
    only and may not be indicative of the results that would have
    been obtained had the acquisition of assets actually occurred on
    the dates assumed nor is it necessarily indicative of Titan
    International, Inc.&#146;s future consolidated results of
    operations or financial position.
</DIV>
</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    4
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">PRO FORMA
    CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (UNAUDITED)<BR>
    YEAR ENDED DECEMBER 31, 2005</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="41%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="10%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Goodyear<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Historical<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>North American<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Pro Forma<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Pro Forma<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Titan</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Farm Assets(a)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Continental</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Adjustments</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Titan</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="18" align="center" valign="bottom">
    <B>(Amounts in thousands, except per share date)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Net sales
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    470,133
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    244,160
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    113,890
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    828,183
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Cost of sales
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    405,923
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    223,740
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    90,637
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    726
</TD>
<TD nowrap align="left" valign="bottom">
    (b)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    721,026
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-size: 10pt">Gross profit
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    64,210
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20,420
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    23,253
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (726
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    107,157
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Selling, general&#160;&#38;
    administrative expenses
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    32,270
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,513
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,880
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,206
</TD>
<TD nowrap align="left" valign="bottom">
    (c)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    55,869
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Dyneer legal charge
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15,205
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15,205
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Idled assets marketed for sale
    depreciation
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,736
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,736
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-size: 10pt">Income (loss) from operations
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11,999
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12,907
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15,373
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (8,932
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    31,347
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Interest expense
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (8,617
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (9,093
</TD>
<TD nowrap align="left" valign="bottom">
    )(d)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,700
</TD>
<TD nowrap align="left" valign="bottom">
    (e)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (12,010
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Noncash convertible debt
    conversion charge
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (7,225
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (7,225
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Other income
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    958
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,013
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,971
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-size: 10pt">(Loss) income before income taxes
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,885
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12,907
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16,386
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (12,325
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14,083
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">(Benefit) provision for income
    taxes
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (13,927
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,787
</TD>
<TD nowrap align="left" valign="bottom">
    (f)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (7,140
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Net income (loss)
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    11,042
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    12,907
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    16,386
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (19,112
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    21,223
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Income per common share(g)
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-size: 10pt">Basic
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    .61
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    .86
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-size: 10pt">Diluted
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    .60
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    .85
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Average common shares and
    equivalent outstanding
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-size: 10pt">Basic
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18,053
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,577
</TD>
<TD nowrap align="left" valign="bottom">
    (e)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    24,630
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-size: 10pt">Diluted
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18,284
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,577
</TD>
<TD nowrap align="left" valign="bottom">
    (e)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    24,861
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=60 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="4%"></TD>
    <TD width="1%"></TD>
    <TD width="95%"></TD>
</TR>

<TR>
    <TD valign="top">
    (a) </TD>
    <TD></TD>
    <TD valign="bottom">
    The Goodyear North American Farm Assets column includes the
    following pro forma numbers for the period of October&#160;1,
    2005, to December&#160;28, 2005 (amounts in thousands):
    Sales&#160;&#151; $53,078; Cost of sales&#160;&#151; $48,639;
    and Selling, general&#160;&#38; administrative&#160;&#151;
    $1,634.</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    (b) </TD>
    <TD></TD>
    <TD valign="bottom">
    To record the difference in depreciation between the actual
    depreciation recorded on the Goodyear North American farm tire
    assets and the Continental
    <FONT style="white-space: nowrap">off-the-road</FONT>
    tire assets and the calculated amount if the Company had
    acquired these assets on January&#160;1, 2005. The difference is
    the result of differing asset values and lives. The Company uses
    straight-line depreciation with the following lives:
    Buildings&#160;&#151; 25&#160;years; Machinery&#160;&#38;
    Equipment&#160;&#151; 10&#160;years; Tools, Dies and
    Molds&#160;&#151; 5&#160;years.</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    (c) </TD>
    <TD></TD>
    <TD valign="bottom">
    To record 2% trademark and technology royalty on certain tire
    sales pursuant to the Goodyear asset purchase agreement.</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    (d) </TD>
    <TD></TD>
    <TD valign="bottom">
    To record the additional interest of $5,764 for the Goodyear
    acquisition for the year ended December&#160;31, 2005. Interest
    is calculated using a rate of 6.03% derived from the terms of
    the Company&#146;s revolving credit facility, which was LIBOR
    plus 3% during the period. The pro forma adjustment for interest
    would have been one hundred twenty thousand dollars ($120,000)
    higher or lower if the interest rate had been 1/8% higher or
    lower. Also, to record the additional interest of $3,329 for the
    Continental
    <FONT style="white-space: nowrap">off-the-road</FONT>
    tire acquisition for the year ended December&#160;31, 2005.
    Interest is calculated using a rate of 6.29% derived from the
    terms of the Company&#146;s revolving credit facility, which was
    LIBOR plus 3% during the period. The pro forma adjustment for
    interest </TD>
</TR>

</TABLE>
</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    5
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="4%"></TD>
    <TD width="1%"></TD>
    <TD width="95%"></TD>
</TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    would have been sixty-six thousand dollars ($66,000) higher or
    lower if the interest rate had been 1/8% higher or lower.</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    (e) </TD>
    <TD></TD>
    <TD valign="bottom">
    To record the decrease in interest paid on the convertible
    notes, assuming that all outstanding notes were converted on
    January&#160;1, 2005. If all notes were converted per the terms
    of the conversion offer in this prospectus, there would be an
    additional 6,577,200&#160;shares of our stock outstanding. For
    each 10% of the notes not converted, the additional shares would
    be decreased by 657,720&#160;shares and interest expense would
    increase by approximately $570,000.</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    (f) </TD>
    <TD></TD>
    <TD valign="bottom">
    To record income tax provision at a 40% rate. The historical tax
    benefit of $13.9&#160;million results from the reversal of our
    valuation allowance. Pro forma tax expense is recorded at the
    historical provision rate before the valuation allowance
    reversal.</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    (g) </TD>
    <TD></TD>
    <TD valign="bottom">
    The Goodyear North American farm tire assets and Continental
    <FONT style="white-space: nowrap">off-the-road</FONT>
    assets along with the corresponding pro forma entries increase
    pro forma basic earnings per share by $.38 and pro forma diluted
    earnings per share by $.32. The pro forma note conversion
    entries, assuming all notes are converted, decrease pro forma
    basic earnings per share by $.13 and pro forma diluted earnings
    per share by $.07. For each 10% of the notes not converted, the
    average shares outstanding would be decreased by
    657,720&#160;shares and pro forma earnings per share, basic,
    would decrease by approximately $.01 (one cent).</TD>
</TR>

</TABLE>
</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    6
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">PRO FORMA
    CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (UNAUDITED)<BR>
    NINE MONTHS ENDED SEPTEMBER 30, 2006</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="54%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Historical<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Pro Forma<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Pro Forma<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Titan</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Continental(a)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Adjustments</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Titan</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="14" align="center" valign="bottom">
    <B>(Amounts in thousands, except per share date)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Net sales
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    513,891
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    82,342
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    596.233
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Cost of sales
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    443,255
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    62,201
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,028
</TD>
<TD nowrap align="left" valign="bottom">
    (b)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    506,484
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-size: 10pt">Gross profit
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    70,636
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20,141
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,028
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    89,749
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Selling, general&#160;&#38;
    administrative expenses
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    30,312
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,152
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    34,464
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Royalty expense
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,952
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,952
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Idled assets marketed for sale
    depreciation
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,722
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,722
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-size: 10pt">Income (loss) from operations
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    33,650
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15,989
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,028
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    48,611
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Interest expense
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (11,997
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,360
</TD>
<TD nowrap align="left" valign="bottom">
    )(c)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,593
</TD>
<TD nowrap align="left" valign="bottom">
    (d)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (10,764
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Other income
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,820
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    611
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,431
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-size: 10pt">Income before income taxes
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    24,473
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16,600
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    205
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    41,278
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Provision for income taxes
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,789
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,722
</TD>
<TD nowrap align="left" valign="bottom">
    (e)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16,511
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Net income (loss)
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    14,684
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    16,600
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (6,517
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    24,767
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Income per common share(f)
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-size: 10pt">Basic
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    .75
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    .94
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-size: 10pt">Diluted
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    .65
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    .93
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Average common shares and
    equivalent outstanding Basic
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19,671
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,577
</TD>
<TD nowrap align="left" valign="bottom">
    (d)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    26,248
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-size: 10pt">Diluted
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    26,027
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    26,590
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=60 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="4%"></TD>
    <TD width="1%"></TD>
    <TD width="95%"></TD>
</TR>

<TR>
    <TD valign="top">
    (a) </TD>
    <TD></TD>
    <TD valign="bottom">
    The Continental column includes the following pro forma numbers
    for the period of July&#160;1, 2006, to July&#160;31, 2006
    (amounts in thousands): Sales&#160;&#151; $11,763; Cost of
    sales&#160;&#151; $8,886; Selling, general&#160;&#38;
    administrative&#160;&#151; $593; and Other income&#160;&#151;
    $87.</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    (b) </TD>
    <TD></TD>
    <TD valign="bottom">
    To record the difference in depreciation between the actual
    depreciation recorded on the Continental
    <FONT style="white-space: nowrap">off-the-road</FONT>
    tire assets and the calculated amount if the Company had
    acquired these assets on January&#160;1, 2006. The difference is
    the result of differing asset values and lives. The Company uses
    straight-line depreciation with the following lives:
    Buildings&#160;&#151; 25&#160;years; Machinery&#160;&#38;
    Equipment&#160;&#151; 10&#160;years; Tools, Dies and
    Molds&#160;&#151; 5&#160;years.</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    (c) </TD>
    <TD></TD>
    <TD valign="bottom">
    To record the additional interest for the Continental
    <FONT style="white-space: nowrap">off-the-road</FONT>
    tire acquisition for the nine months ended September&#160;30,
    2006. Interest is calculated using a rate of 7.76% derived from
    the terms of the Company&#146;s revolving credit facility, which
    was LIBOR plus 3% during the period. The pro forma adjustment
    for interest would have been thirty-eight thousand dollars
    ($38,000) higher or lower if the interest rate had been 1/8%
    higher or lower.</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    (d) </TD>
    <TD></TD>
    <TD valign="bottom">
    To record the decrease in interest paid on the convertible
    notes, assuming that all outstanding notes were converted on
    January&#160;1, 2005. If all notes were converted per the terms
    of the conversion offer in this prospectus, there would be an
    additional 6,577,200&#160;shares of our stock outstanding. For
    each 10% of the notes not converted, the additional shares would
    be decreased by 657,720&#160;shares and interest expense would
    increase by approximately $359,000.</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    (e) </TD>
    <TD></TD>
    <TD valign="bottom">
    To record income tax provision at a 40% rate, the historical
    provision rate.</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    (f) </TD>
    <TD></TD>
    <TD valign="bottom">
    The Continental
    <FONT style="white-space: nowrap">off-the-road</FONT>
    assets along with the corresponding pro forma entries increase
    pro forma basic earnings per share by $.40 and pro forma diluted
    earnings per share by $.30. The pro forma note conversion
    entries, assuming all notes are converted, decrease pro forma
    basic earnings per share by $.21 and pro forma diluted earnings
    per share by $.02. For each 10% of the notes not converted, the
    average shares outstanding would be decreased by
    657,720&#160;shares and pro forma earnings per share, basic,
    would decrease by approximately $.02 (two cents).</TD>
</TR>

</TABLE>
</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    7
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">The
    Conversion Offer</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="36%"></TD>
    <TD width="1%"></TD>
    <TD width="63%"></TD>
</TR>

<TR>
    <TD valign="top">
    The company </TD>
    <TD></TD>
    <TD valign="bottom">
    Titan International, Inc.</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    The Convertible Notes </TD>
    <TD></TD>
    <TD valign="bottom">
    5.25%&#160;Senior Convertible Notes due 2009. The Convertible
    Notes are governed by an Indenture, dated as of July&#160;26,
    2004 (the &#147;Indenture&#148;), among the Company and
    U.S.&#160;Bank National Association as trustee.</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    The conversion offer </TD>
    <TD></TD>
    <TD valign="bottom">
    Upon the conversion to common stock of each Convertible Note in
    the conversion offer, we are offering to increase the current
    conversion rate, as more fully discussed below, on terms and
    subject to the conditions set forth herein.</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    Purposes of the conversion offer </TD>
    <TD></TD>
    <TD valign="bottom">
    The purposes of the conversion offer are to induce the
    conversion to common stock of any and all of the outstanding
    Convertible Notes to reduce our ongoing fixed interest
    obligations, and to improve the trading liquidity of our common
    stock by increasing the number of outstanding shares of common
    stock available for trading.</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    Conversion </TD>
    <TD></TD>
    <TD valign="bottom">
    The Convertible Notes will be convertible at a conversion rate
    of 81.0&#160;shares of common stock per $1,000 principal amount
    of notes, less any fractional shares, subject to adjustment in
    accordance with the terms of the Convertible Notes. We are not
    required to issue fractional shares of common stock upon
    conversion of the Convertible Notes. Instead, we will pay a cash
    adjustment for such fractional shares based upon the closing
    price of the common stock on the business day preceding the
    settlement date.</TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="36%"></TD>
    <TD width="1%"></TD>
    <TD width="63%"></TD>
</TR>

<TR>
    <TD valign="top">
    Expiration date </TD>
    <TD></TD>
    <TD valign="bottom">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    March&#160;&#160;&#160;, 2007, unless extended or earlier
    terminated by us. For example, we may extend the expiration date
    of this conversion offer so that the expiration date occurs upon
    or shortly after the satisfaction of the conditions to the
    conversion offer.</TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="36%"></TD>
    <TD width="1%"></TD>
    <TD width="63%"></TD>
</TR>

<TR>
    <TD valign="top">
    Settlement date </TD>
    <TD></TD>
    <TD valign="bottom">
    The settlement date in respect of any Convertible Notes validly
    surrendered for conversion prior to 5:00&#160;p.m., New York
    City time, on the expiration date is expected to occur promptly
    following the expiration date.</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    How to surrender Convertible Notes </TD>
    <TD></TD>
    <TD valign="bottom">
    See &#147;The Conversion Offer&#160;&#151; Procedures for
    Surrendering Convertible Notes in the Conversion Offer&#148; and
    the attached letter of transmittal. For further information, you
    may call the conversion agent at the telephone number set forth
    on the back cover of this conversion offer prospectus, or
    consult your broker, dealer, commercial bank, trust company or
    other nominee for assistance.</TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="36%"></TD>
    <TD width="1%"></TD>
    <TD width="63%"></TD>
</TR>

<TR>
    <TD valign="top">
    Withdrawal and revocation rights </TD>
    <TD></TD>
    <TD valign="bottom">
    Convertible Notes surrendered for conversion may be validly
    withdrawn at any time up until 5:00&#160;p.m., New York City
    time, on the expiration date. In addition, surrendered
    Convertible Notes may be validly withdrawn after the expiration
    date if the Convertible Notes have not been accepted for
    conversion after the expiration of 40 business days from
    February&#160;&#160;&#160;, 2007. If the conversion offer is
    terminated, the Convertible Notes surrendered in the conversion
    offer will be promptly returned to the surrendering holders.</TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="36%"></TD>
    <TD width="1%"></TD>
    <TD width="63%"></TD>
</TR>

<TR>
    <TD valign="top">
    Conditions precedent to the conversion offer </TD>
    <TD></TD>
    <TD valign="bottom">
    Our obligation to increase the conversion rate in respect of
    Convertible Notes validly surrendered for conversion pursuant to
    the conversion offer is contingent upon the satisfaction of
    certain conditions. See &#147;The Conversion Offer&#160;&#151;
    Conditions to the Conversion Offer.&#148;</TD>
</TR>

</TABLE>
</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    8
</DIV><!-- END LOGICAL PAGE -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="36%"></TD>
    <TD width="1%"></TD>
    <TD width="63%"></TD>
</TR>

<TR>
    <TD valign="top">
    Material U.S.&#160;federal income tax considerations </TD>
    <TD></TD>
    <TD valign="bottom">
    For a discussion of the material U.S.&#160;federal income tax
    considerations of this conversion offer, see &#147;Material
    U.S.&#160;Federal Income Tax Considerations.&#148;</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    Use of proceeds </TD>
    <TD></TD>
    <TD valign="bottom">
    We will not receive any cash proceeds from the surrender of
    Convertible Notes in the conversion offer.</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    Brokerage commissions </TD>
    <TD></TD>
    <TD valign="bottom">
    No brokerage commissions are payable by the holders of
    Convertible Notes to the dealer manager, the information agent,
    the conversion agent, the trustee or us.</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    Dealer manager </TD>
    <TD></TD>
    <TD valign="bottom">
    Merrill Lynch, Pierce, Fenner&#160;&#38; Smith Incorporated is
    the dealer manager for the conversion offer. Merrill
    Lynch&#146;s address and telephone number are included on the
    back cover of this conversion offer prospectus.</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    Information agent </TD>
    <TD></TD>
    <TD valign="bottom">
    Global Bondholder Services Corporation is the information agent
    for the conversion offer. Its address and telephone number are
    included on the back cover of this conversion offer prospectus.</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    Conversion agent </TD>
    <TD></TD>
    <TD valign="bottom">
    Global Bondholder Services Corporation is the conversion agent
    for the conversion offer. Its address and telephone number are
    included on the back cover of this conversion offer prospectus.</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    Regulatory approvals </TD>
    <TD></TD>
    <TD valign="bottom">
    We are not aware of any other material regulatory approvals
    necessary to complete the conversion offer, other than the
    obligation to have the registration statement of which this
    conversion offer prospectus forms a part declared effective by
    the SEC, to file a Schedule&#160;TO with the SEC and to
    otherwise comply with applicable securities laws.</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    No appraisal rights </TD>
    <TD></TD>
    <TD valign="bottom">
    Holders of Convertible Notes have no appraisal rights in
    connection with the conversion offer.</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    Further information </TD>
    <TD></TD>
    <TD valign="bottom">
    If you have questions regarding the conversion offer, please
    contact the dealer manager, Merrill Lynch&#160;&#38; Co. You may
    call Merrill Lynch toll-free at
    <FONT style="white-space: nowrap">(888)&#160;654-8637</FONT>
    or collect at
    <FONT style="white-space: nowrap">(212)&#160;449-4914.</FONT>
    If you have questions regarding the procedures for converting
    your Convertible Notes in the conversion offer, please contact
    Global Bondholder Services Corporation, the conversion agent,
    toll-free at
    <FONT style="white-space: nowrap">(866)&#160;470-4200.</FONT>
    If you require additional conversion offer materials, please
    contact Global Bondholder Services Corporation, the information
    agent, at
    <FONT style="white-space: nowrap">(866)&#160;470-4200.</FONT>
    You may also write to any of these entities at one of their
    respective addresses set forth on the back cover of this
    conversion offer prospectus.</TD>
</TR>

</TABLE>
</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    9
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->
<A name='103'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">RISK
    FACTORS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>You should consider carefully each of the following risks and
    all of the other information set forth in this conversion offer
    prospectus before deciding whether to surrender Convertible
    Notes for conversion in the conversion offer. The risks and
    uncertainties described below are not the only ones facing our
    company. Additional risks and uncertainties not presently known
    to us or that we currently believe to be immaterial may also
    adversely affect our business. If any of the following risks and
    uncertainties develop into actual events, those events could
    have a material adverse effect on our business, financial
    condition or results of operations.</I>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Risks
    Related to the Conversion Offer</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Upon
    consummation of the conversion offer, holders who surrender
    their Convertible Notes for common stock will lose their rights
    under the Convertible Notes, including, without limitation,
    their rights to future interest and principal payments and their
    rights as a creditor of the Company.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If you surrender your Convertible Notes for conversion into our
    common stock pursuant to the conversion offer, you will be
    giving up all of your rights as a holder of Convertible Notes,
    including, without limitation, your right to future interest and
    principal payments with respect to the Convertible Notes. You
    will also cease to be a creditor of the Company. Any shares of
    common stock that are issued upon conversion of the Convertible
    Notes will be, by definition, junior to claims of the
    Company&#146;s creditors which, in turn, are effectively
    subordinate to the claims of the creditors of the Company&#146;s
    subsidiaries. In addition, the Company may not be able to pay
    dividends on the common stock until after it has satisfied its
    debt obligations.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Our
    ability to pay dividends on our common stock is
    limited.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Payment of dividends on our common stock will depend on the
    earnings and cash flows of our business and that of
    subsidiaries, and on our subsidiaries&#146; ability to pay
    dividends or to advance or repay funds to us. Before declaring
    any dividend, our board of directors will consider factors that
    ordinarily affect dividend policy, such as earnings, cash flow,
    estimates of future earnings and cash flow, business conditions,
    regulatory factors, our financial condition and other matters
    within its discretion, as well as contractual restrictions on
    our ability to pay dividends. We may not be able to pay
    dividends in the future or, if paid, we cannot assure you that
    the dividends will be in the same amount or with the same
    frequency as in the past.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Any payment of cash dividends will depend upon our financial
    condition, capital requirements, earnings and other factors
    deemed relevant by our board of directors. Further, our
    revolving credit facility and the indenture governing our senior
    unsecured notes may restrict our ability to pay cash dividends.
    Agreements governing future indebtedness will likely contain
    restrictions on our ability to pay cash dividends.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Our
    board of directors has not made a recommendation as to whether
    you should convert your Convertible Notes into common stock in
    the conversion offer, and we have not obtained a third-party
    determination that the conversion offer is fair to holders of
    our Convertible Notes.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our board of directors has not made, and will not make, any
    recommendation as to whether holders of Convertible Notes should
    convert their Convertible Notes into common stock pursuant to
    the conversion offer. We have not retained and do not intend to
    retain any unaffiliated representative to act solely on behalf
    of the holders of the Convertible Notes for purposes of
    negotiating the terms of this conversion offer, or preparing a
    report or making any recommendation concerning the fairness of
    this conversion offer.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">The
    market price and value of our common stock may fluctuate, and
    reductions in the price of our common stock could make the
    Convertible Notes a less attractive investment.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The market price of our common stock may fluctuate widely in the
    future. If the market price of our common stock declines, the
    value of the shares of common stock you would receive upon
    conversion of your Convertible Notes will decline. The trading
    value of our common stock could fluctuate depending upon any
    number of specific or general factors, many of which are beyond
    our control. See &#147;&#151;&#160;Risks Related to Our
    Business&#148; and &#147;&#151;&#160;Risks Related to Our
    Capital Stock&#148; below.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    10
</DIV><!-- END LOGICAL PAGE -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Future
    sales of shares of our common stock may depress its market
    price.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Sales of substantial numbers of additional shares of common
    stock, including up to 6,577,200&#160;shares of common stock
    underlying the Convertible Notes being registered as part of the
    conversion offer and sales of shares that may be issued in
    connection with future acquisitions, or the perception that such
    sales could occur, may have a harmful effect on prevailing
    market prices for our common stock and our ability to raise
    additional capital in the financial markets at a time and price
    favorable to us. Our amended and restated certificate of
    incorporation provides that we have authority to issue
    60,000,000&#160;shares of common stock. As of December&#160;31,
    2006, there were approximately 19,898,902&#160;shares of common
    stock outstanding, approximately 1,150,060&#160;shares of common
    stock issuable upon exercise of currently outstanding stock
    options and approximately 6,014,815&#160;shares of common stock
    issuable upon conversion of our Convertible Notes (without
    taking into account the conversion offer). The Convertible Notes
    are currently convertible at a conversion rate of
    74.0741&#160;shares of common stock per $1,000 principal amount
    of notes, subject to adjustment. The number of shares of our
    common stock to be issued in the conversion offer is based on
    the increased conversion rate of 81.0&#160;shares of common
    stock per $1,000 principal amount of notes, subject to
    adjustment. All of the shares of our common stock to be issued
    in the conversion offer to holders who are not our affiliates
    will be freely tradable.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Our
    stock price may fluctuate significantly.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The market price of our common stock has been subject to
    volatility and, in the future, may fluctuate substantially due
    to a variety of factors, including, among others:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    quarterly fluctuations in our operating results and earnings per
    share;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    changes in our business, operations or prospects;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    market and economic conditions;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    future acquisitions;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    developments in our relationships with our customers;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    outcome of our legal proceedings;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the dilutive effect of the issuance of additional common stock
    in this conversion offer;&#160;and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    sales of common stock by us or our shareholders, or the
    perception that such sales may occur.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition, the stock markets have, in recent years,
    experienced significant price fluctuations. Many companies
    experienced material fluctuations in their stock price that were
    not proportionate to their operating performance. Broad market
    fluctuations, general economic conditions and specific
    conditions in the industries in which we operate may adversely
    affect the market price of our common stock.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">We may
    withhold 30% of the fair market value of the shares of common
    stock payable to
    <FONT style="white-space: nowrap">Non-U.S.&#160;Holders</FONT>
    that is attributable to the adjustment in the conversion rate
    pursuant to the conversion offer.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We may withhold taxes equal to 30% of the fair market value of
    the shares of common stock payable to each
    <FONT style="white-space: nowrap">Non-U.S.&#160;Holder,</FONT>
    as defined below, that is attributable to the adjustment in the
    conversion rate pursuant to the conversion offer, and submit the
    withheld amount to the Internal Revenue Service unless such
    <FONT style="white-space: nowrap">Non-U.S.&#160;Holder</FONT>
    provides us or our paying agent with the applicable forms to
    demonstrate an exemption from or entitlement to a reduced
    withholding tax rate. See &#147;Material U.S.&#160;Federal
    Income Tax Considerations&#160;&#151;
    <FONT style="white-space: nowrap">Non-U.S.&#160;Holders&#160;&#151;</FONT>
    <I>Consequences of the Conversion</I>.&#148;
    <FONT style="white-space: nowrap">Non-U.S.&#160;Holders</FONT>
    should consult their own tax advisors regarding the application
    of the withholding tax rules to their particular circumstances,
    including the possibility of filing a claim for a refund of any
    tax withheld.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    11
</DIV><!-- END LOGICAL PAGE -->
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Risks
    Related to Holding Convertible Notes after the Conversion
    Offer</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">You
    may have difficulty selling the Convertible Notes that you do
    not convert.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Convertible Notes are not listed on any national securities
    exchange and there is no established trading market for these
    notes. A substantial majority of the Convertible Notes are
    traded on the
    PORTAL<SUP style="font-size: 85%; vertical-align: text-top"><FONT style="font-variant: SMALL-CAPS">sm</FONT></SUP>
    system of The NASDAQ Stock Market, Inc. However, we cannot
    assure you that an efficient or liquid trading market exists or
    will be able to be maintained in order for you to be able to
    sell your Convertible Notes at any time or from time to time.
    Also, if a large number of Convertible Notes are converted into
    common stock in the conversion offer, then it may be more
    difficult for you to sell your unconverted Convertible Notes.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Future trading prices of the Convertible Notes may depend on
    many factors, including, among other things, the price of our
    common stock, prevailing dividend rates, our operating results
    and the market for similar securities. We also cannot assure you
    that you will be able to sell your Convertible Notes at a
    particular time or that the prices that you receive if and when
    you sell will be favorable.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We are no longer obligated to maintain an effective registration
    statement that would permit you under the Securities Act to
    resell your Convertible Notes. Thus, it may now be harder for
    you to sell your Convertible Notes under the Securities Act and
    each resale will need to qualify for a valid exemption from
    registration.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">The
    Convertible Notes will be effectively subordinated to our
    secured debt and will be structurally subordinated to the
    indebtedness and other liabilities of our
    subsidiaries.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Convertible Notes rank equal in right of payment to all of
    our other unsecured senior indebtedness and are effectively
    subordinated to all of our existing and future secured debt as
    to the assets securing such debt. As of September&#160;30, 2006,
    after giving pro forma effect to the offering of our 8% Senior
    Unsecured Convertible Notes due 2012 and the use of proceeds
    therefrom, on a consolidated basis, we would have had an
    aggregate of approximately $282&#160;million of debt
    outstanding, with no amount of secured debt, and approximately
    $125&#160;million of additional borrowing capacity under the
    revolving credit facility, subject to certain conditions. Any
    debt incurred under our revolving credit facility will be
    secured by substantially all of our assets.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Convertible Notes will also be structurally subordinated to
    all indebtedness and other liabilities, including trade payables
    and lease obligations, of our subsidiaries. As of
    September&#160;30, 2006, our subsidiaries had an aggregate of
    approximately $132&#160;million of outstanding indebtedness and
    other liabilities. The indenture governing the Convertible Notes
    does not limit the amount of additional indebtedness our
    subsidiaries are permitted to incur in the future.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">We may
    not have the ability to raise the funds necessary to purchase
    the Convertible Notes for cash upon the occurrence of a change
    in control.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Upon specified change in control events relating to Titan
    International, each holder of the Convertible Notes may require
    us to purchase for cash all or a portion of such holder&#146;s
    Convertible Notes at a price equal to 100% of the principal
    amount, plus accrued and unpaid interest, if any, on such
    Convertible Notes to but excluding the date of purchase, plus in
    certain circumstances, a make-whole premium. We cannot assure
    you that we would have sufficient financial resources to
    purchase the Convertible Notes for cash or satisfy our other
    debt obligations if we are required to purchase the Convertible
    Notes at the option of the holders of such Convertible Notes or
    upon the occurrence of a change in control. In addition, events
    involving a change in control may result in an event of default
    under our revolving credit facility or other debt we may incur
    in the future. There can be no assurance what effect a change in
    control would have on our ability to pay interest, principal and
    premium, if any, on the Convertible Notes when due.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">There
    are no restrictive covenants in the indenture for the
    Convertible Notes relating to our ability to incur future
    indebtedness or complete other transactions.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The indenture governing the Convertible Notes does not contain
    any financial covenants or restrictions on the payment of
    dividends. The indenture does not restrict the issuance or
    repurchase of securities by us or our subsidiaries. The
    indenture contains no covenants or other provisions to afford
    you protection in the event of a
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    12
</DIV><!-- END LOGICAL PAGE -->
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    highly leveraged transaction, such as a leveraged
    recapitalization, that would increase the level of our
    indebtedness, or a change in control except as described under
    &#147;Description of Convertible Notes&#160;&#151; Purchase at
    Option of Holders upon a Change of Control.&#148; Neither we nor
    our subsidiaries are restricted from incurring additional debt,
    including senior indebtedness, under the indenture. If we or our
    subsidiaries were to incur additional debt or liabilities, our
    ability to pay our obligations on the Convertible Notes could be
    adversely affected.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Risks
    Related to Our Business</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">We
    operate in cyclical industries and, accordingly, our business is
    subject to the numerous and continuing changes in the
    economy.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our sales are substantially dependent on three major industries,
    the agricultural equipment industry, the
    earthmoving/construction equipment industry (including military)
    and the consumer products industry (including trailers and
    ATVs). The business activity levels in these industries are
    subject to specific industry and general economic cycles.
    Accordingly, any downturn in these industries or general economy
    could materially adversely affect our business.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The agricultural equipment industry is affected by crop prices,
    farm income and farmland values, weather, export markets and
    government policies. Recently, demand for corn has caused
    significantly increased corn prices, which is generally good for
    our business. However, corn prices are subject to a number of
    risks and could decrease, which could have a material adverse
    effect on us. Corn prices are heavily dependent on federal
    legislation and new legislation is expected in 2007 or 2008,
    with a new majority in both the House of Representatives and the
    Senate. Any significant changes, or the expectation of
    significant changes, to federal agricultural policy, could have
    a material adverse effect on us. Another factor which has had
    significant positive impact on corn prices recently is demand
    for ethanol. This has been driven by high oil prices and federal
    legislation that encourages ethanol production and imposes
    limits on imported corn and ethanol. Reductions in oil prices or
    changes in federal ethanol policy, or the expectation of
    changes, could have a material adverse effect on our business.
    In addition, the agricultural equipment industry is subject to
    weather risks, including drought, flood and climate risks, any
    of which could have a material adverse effect on us.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The earthmoving/construction industry is affected by commodity
    prices, the levels of government and private construction
    spending and replacement demand. The consumer products industry
    is affected by consumer disposable income, weather, competitive
    pricing, energy prices and consumer attitudes. In addition, the
    performance of these industries is sensitive to interest rate
    changes and varies with the overall level of economic activity.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Due to capacity constraints at our Bryan, Ohio,
    <FONT style="white-space: nowrap">off-the-road</FONT>
    (OTR) tire facility, we are adding OTR tire capacity at our
    Freeport, Illinois, and Des Moines, Iowa, tire facilities. We
    are aligning production, which includes retooling, retraining
    personnel, and movement of equipment at the Bryan, Freeport and
    Des Moines facilities. This may cause our gross margin to be
    negative for the fourth quarter of 2006 as labor costs that are
    normally dedicated to making products were instead used for
    retooling, retraining and movement of equipment.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Our
    customer base is relatively concentrated.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our ten largest customers, which are primarily original
    equipment manufacturers (&#147;OEMs&#148;), accounted for
    approximately 55% and 57% of our net sales for 2005 and 2004,
    respectively. Net sales to Deere represented 20% and 22% of our
    total net sales for 2005 and 2004, respectively. Net sales to
    CNH represented 11% of our total net sales for each of 2005 and
    2004. No other customer accounted for more than 10% of our net
    sales in 2005 or 2004. As a result, our business could be
    adversely affected if one of our larger customers reduces its
    purchases from us due to work stoppages or slow-downs, financial
    difficulties, as a result of termination provisions, competitive
    pricing or other reasons. There is also continuing pressure from
    the OEMs to reduce costs, including the cost of products and
    services purchased from outside suppliers such as us. Although
    we have had long-term relationships with our major customers and
    expect that we will be able to continue these relationships,
    there can be no assurance that we will be able to maintain such
    relationships on terms favorable to us or at all. Any failure to
    maintain our relationship with a leading customer could have an
    adverse effect on our results of operations.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    13
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">We
    face substantial competition from international and domestic
    companies.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We compete with several international and domestic competitors,
    some of which are larger and have greater financial and
    marketing resources than us. We compete primarily on the basis
    of price, quality, customer service, design capability and
    delivery time. Our ability to compete with international
    competitors may be adversely affected by currency fluctuations.
    In addition, foreign competitors in low-wage markets have a
    natural cost advantage over us that may enable them to offer
    lower prices. Certain of our OEM customers could, under certain
    circumstances, elect to manufacture certain of our products to
    meet their own requirements or to otherwise compete with us.
    There can be no assurance that our businesses will not be
    adversely affected by increased competition in the markets in
    which we operate or that our competitors will not develop
    products that are more effective or less expensive than our
    products or which could render certain of our products less
    competitive. From time to time certain of our competitors have
    reduced their prices in particular product categories, which has
    caused us to reduce our prices. There can be no assurance that
    in the future our competitors will not further reduce prices or
    that any such reductions would not have a material adverse
    effect on our business.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Acquisitions
    and joint ventures may require significant resources
    <FONT style="white-space: nowrap">and/or</FONT>
    result in significant unanticipated losses, costs or
    liabilities.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In the last 14&#160;months we closed two significant
    acquisitions. In the future we may seek to grow by making
    acquisitions. Some of the businesses that we would consider
    acquiring, if they become available, are quite large and could
    become available at any time. Any future acquisitions will
    depend on our ability to identify suitable acquisition
    candidates, to negotiate acceptable terms for their acquisition
    and to finance those acquisitions. We will also face competition
    for suitable acquisition candidates that may cause us to pay too
    much. In addition, acquisitions (including our two recent
    acquisitions) require significant managerial attention, which
    may be diverted from our other operations. Furthermore,
    acquisitions of businesses or facilities entail a number of
    additional risks, including:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    problems with integration of operations;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the inability to maintain key pre-acquisition customer, supplier
    and employee relationships and labor agreements;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    increased operating costs;&#160;and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    exposure to unanticipated liabilities.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Subject to the terms of our indebtedness, we may finance future
    acquisitions with cash from operations, additional indebtedness
    <FONT style="white-space: nowrap">and/or</FONT> by
    issuing additional equity securities. In addition, we could face
    financial risks associated with incurring additional
    indebtedness such as reducing our liquidity and access to
    financing markets and increasing the amount of cash flow
    required to service such indebtedness.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Our
    business could be negatively impacted if we fail to maintain
    satisfactory labor relations.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Approximately 48% of our employees in the United States are
    covered by three collective bargaining agreements. Upon the
    expiration of any of our collective bargaining agreements,
    however, we may be unable to negotiate new collective bargaining
    agreements on terms favorable to us, and our business operations
    may be affected as a result of labor disputes or difficulties
    and delays in the process of renegotiating our collective
    bargaining agreements. In 1998, the employees in our Des Moines,
    Iowa and Natchez, Mississippi facilities went on strike for 40
    and 39&#160;months, respectively. Our three labor agreements
    each expire on the same date in November&#160;2010. The fact
    that these agreements all expire on the same date could increase
    the adverse consequences to us if we have difficulty when we
    negotiate new agreements in 2010. We cannot assure you that
    there will not be any other labor disruptions or strikes at our
    facilities that adversely affect our business.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    14
</DIV><!-- END LOGICAL PAGE -->
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">We
    have incurred, and may incur in the future, net
    losses.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Although we generated net income in 2004, 2005 and the nine
    months ended September&#160;30, 2006, we have incurred
    significant net losses previously. Reported net losses were
    $36.7&#160;million, $35.9&#160;million, and $34.8&#160;million
    for the years ended December&#160;31, 2003, 2002 and 2001,
    respectively.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">We are
    exposed to price fluctuations of key commodities.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We do not generally enter into long-term commodity contracts and
    do not use derivative commodity instruments to hedge our
    exposures to commodity market price fluctuations. Therefore, we
    are exposed to price fluctuations of our key commodities, which
    consist primarily of steel and rubber which we primarily buy on
    the spot market. Although we attempt to pass on certain material
    price increases to our customers, there is no assurance that we
    will be able to do so in the future. Any increase in the price
    of steel and rubber that is not passed on to our customers could
    have an adverse material effect on our results of operations.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">We
    rely on a limited number of suppliers.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We currently rely on a limited number of suppliers for certain
    key commodities, which consist primarily of steel and rubber, in
    the manufacturing of our products. The loss of our key suppliers
    or their inability to meet our price, quality, quantity and
    delivery requirements could have a significant adverse impact on
    our results of operations.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">We may
    be subject to claims for damages for defective products, which
    could adversely affect our results of operations.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We warrant our products to be free of certain defects and
    accordingly may be subject in the ordinary course of business to
    product liability or product warranty claims. Losses may result
    or be alleged to result from defects in our products, which
    could subject us to claims for damages, including consequential
    damages. We do not carry significant product liability insurance
    and we cannot assure you that any insurance we maintain will be
    adequate for liabilities actually incurred. Any claims relating
    to defective products that result in liability exceeding our
    insurance coverage could have a material adverse effect on our
    financial condition and results of operations. Further, claims
    of defects could result in negative publicity against us, which
    could adversely affect our business
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">We are
    subject to risks associated with environmental laws and
    regulations.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our operations are subject to federal, state, local and foreign
    laws and regulations governing, among other things, emissions to
    air, discharge to waters and the generation, handling, storage,
    transportation, treatment and disposal of waste and other
    materials. Our operations entail risks in these areas, and there
    can be no assurance that we will not incur material costs or
    liabilities. In addition, potentially significant expenditures
    could be required in order to comply with evolving environmental
    and health and safety laws, regulations or requirements that may
    be adopted or imposed in the future or to investigate or
    remediate contamination at currently or formerly owned or
    operated sites.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Our
    revenues are seasonal due to our dependence on agricultural,
    earthmoving, construction and recreational industries, which are
    seasonal.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The agricultural, earthmoving, construction and recreational
    industries are seasonal, with typically lower sales during our
    second half of the year. This seasonality in demand has resulted
    in fluctuations in our revenues and operating results. Because
    much of our overhead expenses are fixed, seasonal trends can
    cause reductions in our quarterly profit margins and financial
    condition, especially during our slower periods. During certain
    periods of the year, OEMs may shut down production for
    maintenance, inventory reduction or due to labor contracts,
    which can affect our results.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    15
</DIV><!-- END LOGICAL PAGE -->
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV style="margin-top: 16pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">We may
    be adversely affected by changes in government regulations and
    policies.</FONT></I></B>
</DIV>

<DIV style="margin-top: 8pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Domestic and foreign political developments and government
    regulations and policies directly affect the agricultural,
    earthmoving/construction and consumer products industries in the
    United States and abroad. Regulations and policies relating to
    the agricultural industry include those encouraging farm acreage
    reduction in the United States and restricting deforestation
    techniques. In addition, U.S.&#160;government subsidies for
    ethanol have significantly enhanced demand for corn in recent
    periods. U.S.&#160;tariffs on imported ethanol have also reduced
    the supply of ethanol. Both of these factors have increased
    U.S.&#160;corn prices, which has been good for our agricultural
    equipment business. Regulations and policies relating to the
    earthmoving/construction industry include those regarding the
    construction of roads, bridges and other items of
    infrastructure. The modification of existing laws, regulations
    or policies or the adoption of new laws, regulations or policies
    could have an adverse effect on any one or more of these
    industries and therefore on our business.
</DIV>

<DIV style="margin-top: 16pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Our
    success depends on attracting and retaining key personnel and
    qualified employees.</FONT></I></B>
</DIV>

<DIV style="margin-top: 8pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our continued success and viability are dependent, to a certain
    extent, upon our ability to attract and retain qualified
    personnel in all areas of our businesses, especially management
    positions. In the event we are unable to attract and retain
    qualified personnel, our businesses may be adversely affected.
    Mr.&#160;Taylor, our Chairman and Chief Executive Officer, has
    been instrumental in the development and implementation of our
    business strategy. We do not maintain key-person life insurance
    policies on any of our executive officers. We have outstanding
    agreements with certain of our executive employees selected by
    the board of directors, which provide that the individuals will
    not receive any benefits if they voluntarily leave the company.
    In the event of a termination of the individual&#146;s
    employment after a change of control (defined generally as an
    acquisition of 20% or more of our outstanding voting shares),
    the executive is entitled to receive salary, bonus and other
    fringe benefits. In addition, all unvested options and certain
    benefits become vested. Messrs.&#160;Taylor, Rodia and Hackamack
    and Ms.&#160;Holley are each a party to such an agreement. The
    loss or interruption of the continued full-time services of any
    of our executive officers, including Mr.&#160;Taylor, could have
    a material adverse effect on our business.
</DIV>

<DIV style="margin-top: 16pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Unfavorable
    outcomes of legal proceedings could adversely affect our
    financial condition and results of operations.</FONT></I></B>
</DIV>

<DIV style="margin-top: 8pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We are a party to routine legal proceedings arising out of the
    normal course of business. Although it is not possible to
    predict with certainty the outcome of these unresolved legal
    actions or the range of possible loss, we believe at this time
    that none of these actions, individually or in the aggregate,
    will have a material adverse effect on our financial condition
    or results of operations. However, due to the uncertainties
    involved in litigation, we cannot anticipate or predict material
    adverse effects on our financial condition, cash flows or
    results of operations as a result of efforts to comply with, or
    our liabilities pertaining to, legal judgments.
</DIV>

<DIV style="margin-top: 16pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">We are
    subject to corporate governance requirements, and costs related
    to compliance with, or failure to comply with, existing and
    future requirements could adversely affect our
    business.</FONT></I></B>
</DIV>

<DIV style="margin-top: 8pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We face corporate governance requirements under the
    Sarbanes-Oxley Act of 2002, as well as new rules and regulations
    subsequently adopted by the SEC, the Public Company Accounting
    Oversight Board and the NYSE. These laws, rules and regulations
    continue to evolve and may become increasingly stringent in the
    future. Our failure to comply with these laws, rules and
    regulations may materially adversely affect our reputation,
    financial condition and the value of our securities, including
    the Convertible Notes.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    16
</DIV><!-- END LOGICAL PAGE -->
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV style="margin-top: 16pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Risks
    Related to Our Capital Stock</FONT></B>
</DIV>

<DIV style="margin-top: 8pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition to the risks discussed above in
    &#147;&#151;&#160;Risks Related to the Conversion Offer&#148;
    and &#147;&#151;&#160;Risks Related to Our Business,&#148; the
    following risks, among others, are important to an investment in
    our capital stock:
</DIV>

<DIV style="margin-top: 16pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Issuances
    of one or more series of preferred stock could adversely affect
    holders of our common stock.</FONT></I></B>
</DIV>

<DIV style="margin-top: 8pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our board of directors is authorized to issue one or more series
    of preferred stock without any action on the part of our
    stockholders. Our board of directors also has the power, without
    stockholder approval, to set the terms of any such series of
    preferred stock that may be issued, including voting rights,
    conversion rights, dividend rights, preferences over our common
    stock with respect to dividends or if we liquidate, dissolve or
    wind up our business and other terms. If we issue preferred
    stock in the future that has preference over our common stock
    with respect to the payment of dividends or upon our
    liquidation, dissolution or
    <FONT style="white-space: nowrap">winding-up,</FONT>
    or if we issue preferred stock with voting rights that dilute
    the voting power of our common stock, the rights of holders of
    our common stock or the market price of our common stock could
    be adversely affected.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    17
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->
<A name='104'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">QUESTIONS
    AND ANSWERS ABOUT THE CONVERSION OFFER</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>These answers to questions that you may have as a holder of
    our Convertible Notes are highlights of selected information
    included elsewhere or incorporated by reference in this
    conversion offer prospectus. To fully understand the conversion
    offer and the other considerations that may be important to your
    decision about whether to participate in it, you should
    carefully read this conversion offer prospectus in its entirety,
    including the section entitled &#147;Risk Factors,&#148; as well
    as the information incorporated by reference in this conversion
    offer prospectus. See &#147;Incorporation of Certain Documents
    by Reference.&#148; For further information about us, see the
    section of this conversion offer prospectus entitled &#147;Where
    You Can Find More Information.&#148;</I>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Why are
    you making the conversion offer?</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We are making the conversion offer to reduce our ongoing fixed
    interest obligations and to improve the trading liquidity of our
    common stock. The conversion offer allows current holders of
    Convertible Notes to receive a greater number of shares of our
    common stock than they would otherwise have previously received
    upon conversion of the Convertible Notes.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">What
    aggregate principal amount of Convertible Notes is being sought
    in the conversion offer?</FONT></B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We are offering to convert all outstanding Convertible Notes
    into our common stock. As of February&#160;15, 2007,
    $81.2&#160;million principal amount of Convertible Notes was
    outstanding.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">What will
    I receive in the conversion offer if I surrender my Convertible
    Notes for conversion and they are accepted?</FONT></B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For the Convertible Notes you validly surrender as part of the
    conversion offer and we accept for conversion, you will receive
    81.0&#160;shares per $1,000 principal amount of Convertible
    Notes, subject to adjustment. The Convertible Notes are
    currently convertible at a conversion rate of
    74.0741&#160;shares of common stock per $1,000 principal amount
    of notes, subject to adjustment, which is equivalent to a
    conversion price of approximately $13.50&#160;per share. The
    conversion offer allows current holders of Convertible Notes who
    surrender their Convertible Notes for conversion on or before
    5:00&#160;p.m., New York City time, on March&#160;&#160;&#160;,
    2007 to receive a conversion rate of 81.0&#160;shares per $1,000
    principal amount of notes, subject to adjustment, which is
    equivalent to a conversion price of approximately
    $12.35&#160;per share. This represents an increase in the
    conversion rate of 6.9259&#160;shares per $1,000 principal
    amount of notes, subject to adjustment, which is equivalent to a
    decrease in the conversion price of approximately $1.15&#160;per
    share.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We are not required to issue fractional shares of common stock
    upon conversion of the Convertible Notes in the conversion
    offer. Instead, we will pay a cash adjustment for all fractional
    shares based upon the closing price of the common stock on the
    business day preceding the settlement date.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Your right to receive the above consideration in the conversion
    offer is subject to all of the conditions set forth in this
    conversion offer prospectus and the related letter of
    transmittal.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">When will
    I receive the consideration for surrendering my Convertible
    Notes pursuant to the conversion offer?</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Assuming that we have not previously elected to terminate the
    conversion offer, Convertible Notes validly surrendered for
    conversion in accordance with the procedures described in this
    conversion offer prospectus and the letter of transmittal before
    5:00&#160;p.m., New York City time, on the expiration date will,
    upon the terms and subject to the conditions of the conversion
    offer, including all conditions thereto, be accepted for
    conversion and will be converted into shares of common stock at
    the increased conversion rate on the settlement date. The
    settlement date will occur promptly after the expiration date,
    and we expect that the settlement date will occur within three
    business days after the expiration date. If the conversion offer
    is not completed, no such conversion will occur, the conversion
    rate of the notes will not be increased and we will return your
    Convertible Notes. We must waive or satisfy all conditions to
    the conversion offer on or prior to the expiration date to
    accept any Convertible Notes for conversion in the conversion
    offer.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    18
</DIV><!-- END LOGICAL PAGE -->
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">How does
    the consideration I will receive if I convert my Convertible
    Notes in the conversion offer compare to the payments I would
    receive on the Convertible Notes if I do not convert
    now?</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If you do not surrender Convertible Notes pursuant to the
    conversion offer, you will continue to receive interest payments
    at an annual rate of 5.25%. Interest payments are made on
    June&#160;30 and December&#160;31 of each year through
    July&#160;26, 2009 or until such earlier time as they are
    converted into common stock or redeemed by us. See
    &#147;Description of Our Convertible Notes&#160;&#151;
    General.&#148; You will also continue to have the right to
    convert your Convertible Notes into common stock in accordance
    with their original terms. If you do not surrender your
    Convertible Notes in the conversion offer, you will not be
    entitled to receive any conversion consideration as part of the
    conversion offer.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If, however, you participate in the conversion offer, you will
    receive the consideration described above in
    &#147;&#151;&#160;What will I receive in the conversion offer if
    I surrender my Convertible Notes for conversion and they are
    accepted?&#148;
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">What
    other rights will I lose if I convert my Convertible Notes in
    the conversion offer?</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If you validly surrender your Convertible Notes and we accept
    them for conversion, you would lose the rights of a holder of
    Convertible Notes. For example, you would lose the right to
    receive semi-annual interest payments and principal payments.
    You would also lose your rights as a creditor of the Company.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">May I
    convert only a portion of the Convertible Notes that I
    hold?</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Yes. You do not have to convert all of your Convertible Notes to
    participate in the conversion offer. However, you may only
    surrender Convertible Notes for conversion in integral multiples
    of $1,000 principal amount of the Convertible Notes.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">If the
    conversion offer is consummated and I do not participate in the
    conversion offer or I do not convert all of my Convertible Notes
    in the conversion offer, how will my rights and obligations
    under my remaining outstanding Convertible Notes be
    affected?</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The terms of your Convertible Notes, if any, that remain
    outstanding after the consummation of the conversion offer will
    not change as a result of the conversion offer.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">What do
    you intend to do with the Convertible Notes that are converted
    in the conversion offer?</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Convertible Notes accepted for conversion by us in the
    conversion offer will be cancelled.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Are you
    making a recommendation regarding whether I should participate
    in the conversion offer?</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We are not making any recommendation regarding whether you
    should convert or refrain from converting your Convertible Notes
    in the conversion offer. Accordingly, you must make your own
    determination as to whether to convert your Convertible Notes in
    the conversion offer and, if so, the amount of Convertible Notes
    to convert. Before making your decision, we urge you to
    carefully read this conversion offer prospectus in its entirety,
    including the information set forth in the section of this
    conversion offer prospectus entitled &#147;Risk Factors,&#148;
    and the other documents incorporated by reference in this
    conversion offer prospectus.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Will the
    common stock to be issued in the conversion offer be freely
    tradable?</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Yes. The shares of our common stock to be issued in the
    conversion offer have been approved for listing on the New York
    Stock Exchange under the symbol &#147;TWI.&#148; Generally, the
    common stock you receive in the conversion offer will be freely
    tradable, unless you are considered an &#147;affiliate&#148; of
    ours, as that term is defined in the Securities Act. For more
    information regarding the market for our common stock, see the
    section of this conversion offer prospectus entitled
    &#147;Market for Our Common Stock and Convertible Notes.&#148;
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    19
</DIV><!-- END LOGICAL PAGE -->
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">What are
    the conditions to the conversion offer?</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The conversion offer is conditioned upon:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the effectiveness of the registration statement of which this
    conversion offer prospectus forms a part;&#160;and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the other closing conditions described in &#147;The Conversion
    Offer&#160;&#151; Conditions to the Conversion Offer.&#148;
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The conversion offer is not conditioned upon any minimum amount
    of Convertible Notes being surrendered for conversion. We may
    waive certain conditions of this conversion offer. If any of the
    conditions are not satisfied or waived, we will not complete the
    conversion offer. For more information regarding the conditions
    to the conversion offer, see the section of this conversion
    offer prospectus entitled &#147;The Conversion Offer&#160;&#151;
    Conditions to the Conversion Offer.&#148;
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">How will
    fluctuations in the trading price of our common stock affect the
    consideration offered to holders of Convertible Notes?</FONT></B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our common stock is traded on the New York Stock Exchange under
    the symbol &#147;TWI.&#148; The last reported sale price of our
    common stock on February&#160;14, 2007 was $23.96&#160;per
    share. At present, the Convertible Notes are convertible at a
    conversion rate of 74.0741&#160;shares per $1,0000 principal
    amount of notes, subject to adjustment, which is equivalent to a
    conversion price of approximately $13.50&#160;per share.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We are offering to convert the Convertible Notes at a conversion
    rate of 81.0&#160;shares per $1,000 principal amount of notes,
    subject to adjustment and less fractional shares, which is
    equivalent to a conversion price of approximately
    $12.35&#160;per share. If the market price of our common stock
    declines, the then market value of the fixed portion of the
    shares of common stock you will receive in the conversion of
    your Convertible Notes will also decline. However, the number of
    shares of common stock you would receive in the conversion offer
    will not vary based on the trading price of our common stock.
    The trading price of our common stock could fluctuate depending
    upon any number of factors, including those specific to us and
    those that influence the trading prices of equity securities
    generally. See &#147;Risk Factors&#160;&#151; Risks Related to
    the Conversion Offer&#160;&#151; The market price and value of
    our common stock may fluctuate, and reductions in the price of
    our common stock could make the Convertible Notes a less
    attractive investment.&#148;
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">When does
    the conversion offer expire?</FONT></B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The conversion offer will expire at 5:00&#160;p.m., New York
    City time,
    on&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    March&#160;&#160;&#160;, 2007, unless extended or earlier
    terminated by us.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Under
    what circumstances can the conversion offer be extended, amended
    or terminated?</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We reserve the right to extend the conversion offer for any
    reason at all. We also expressly reserve the right, at any time
    or from time to time, to amend the terms of the conversion offer
    in any respect prior to the expiration date of the conversion
    offer. Further, we may be required by law to extend the
    conversion offer if we make a material change in the terms of
    the conversion offer or in the information contained in this
    conversion offer prospectus or waive a material condition to the
    conversion offer. During any extension of the conversion offer,
    Convertible Notes that were previously surrendered for
    conversion and not validly withdrawn will remain subject to the
    conversion offer. We reserve the right, in our sole and absolute
    discretion, to terminate the conversion offer, at any time prior
    to the expiration date of the conversion offer if any condition
    to the conversion offer is not met and the requirement that the
    registration statement of which this conversion offer prospectus
    forms a part is declared effective by the SEC. If the conversion
    offer is terminated, no Convertible Notes will be accepted for
    conversion and any Convertible Notes that have been surrendered
    for conversion will be returned to the holder promptly after the
    termination. For more information regarding our right to extend,
    amend or terminate the conversion offer, see the section of this
    conversion offer prospectus entitled &#147;The Conversion
    Offer&#160;&#151; Expiration Date and Amendments.&#148;
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    20
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">How will
    I be notified if the conversion offer is extended, amended or
    terminated?</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If the conversion offer is extended, amended or terminated, we
    will promptly make a public announcement by issuing a press
    release, with the announcement in the case of an extension to be
    issued no later than 9:00&#160;a.m., New&#160;York City time, on
    the first business day after the previously scheduled expiration
    date of the conversion offer. For more information regarding
    notification of extensions, amendments or the termination of the
    conversion offer, see the section of this conversion offer
    prospectus entitled &#147;The Conversion Offer&#160;&#151;
    Expiration Date and Amendments.&#148;
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">What
    risks should I consider in deciding whether or not to convert my
    Convertible Notes?</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In deciding whether to participate in the conversion offer, you
    should carefully consider the discussion of risks and
    uncertainties affecting our business, the Convertible Notes and
    our common stock that are described in the section of this
    conversion offer prospectus entitled &#147;Risk Factors,&#148;
    and the documents incorporated by reference in this conversion
    offer prospectus.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">What are
    the material U.S.&#160;federal income tax considerations of my
    participating in the conversion offer?</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Bodman LLP, our legal counsel, has provided a legal opinion
    concerning the tax treatment of the conversion offer for
    U.S.&#160;federal income tax purposes. For more details, please
    see the section of this conversion offer prospectus entitled
    &#147;Material U.S.&#160;Federal Income Tax
    Considerations.&#148; You should consult your own tax advisor
    for a full understanding of the tax considerations of
    participating in the conversion offer.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">How will
    the conversion offer affect the trading market for the
    Convertible Notes that are not exchanged?</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Convertible Notes are not listed on any national securities
    exchange and there is no established trading market for these
    notes. The notes are traded on the
    PORTAL<SUP style="font-size: 85%; vertical-align: text-top"><FONT style="font-variant: SMALL-CAPS">sm</FONT></SUP>
    system of The NASDAQ Stock Market, Inc. If a sufficiently large
    number of Convertible Notes do not remain outstanding after the
    conversion offer, the trading market for the remaining
    outstanding Convertible Notes may become even less liquid and
    more sporadic, and market prices may fluctuate significantly
    depending on the volume of trading in Convertible Notes. In such
    an event, your ability to sell your Convertible Notes not
    surrendered in the conversion offer may be impaired. See
    &#147;Risk Factors&#160;&#151; Risks Related to the Conversion
    Offer&#160;&#151; You may have difficulty selling the
    Convertible Notes that you do not convert.&#148;
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Are your
    financial condition and results of operations relevant to my
    decision to convert my shares as part of the conversion
    offer?</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Yes. The price of our common stock and the Convertible Notes are
    closely linked to our financial condition and results of
    operations. For information about the accounting treatment of
    the conversion offer, see the section of this conversion offer
    prospectus entitled &#147;The Conversion Offer&#160;&#151;
    Accounting Treatment.&#148;
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Will you
    receive any cash proceeds from the conversion offer?</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    No. We will not receive any cash proceeds from the conversion
    offer.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">How do I
    convert my Convertible Notes in the conversion offer?</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If you beneficially own Convertible Notes that are held in the
    name of a broker or other nominee and wish to convert such
    notes, you should promptly instruct your broker or other nominee
    to convert on your behalf. To convert Convertible Notes, Global
    Bondholder Services Corporation, the conversion agent, must
    receive, prior to the expiration date of the conversion offer:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    either
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    21
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="2%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the certificates representing such Convertible Notes and a duly
    executed and completed letter of transmittal,&#160;or
</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    in the case of book-entry transfer, a timely confirmation of
    book-entry transfer of such Convertible Notes,&#160;and
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    either
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="2%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    a properly completed and executed letter of transmittal,&#160;or
</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    a properly transmitted agent&#146;s message through the
    automated tender offer program, or ATOP, of The Depository Trust
    Company, which we refer to in this conversion offer prospectus
    as the &#147;depositary&#148; or &#147;DTC,&#148; according to
    the procedure for book-entry transfer described in this
    conversion offer prospectus.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For more information regarding the procedures for converting
    your Convertible Notes, see the section of this conversion offer
    prospectus entitled &#147;The Conversion Offer&#160;&#151;
    Procedures for Converting Convertible Notes in the Conversion
    Offer.&#148;
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">What
    happens if some or all of my Convertible Notes are not accepted
    for conversion?</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If we decide for any reason not to accept some or all of your
    Convertible Notes, the Convertible Notes not accepted by us will
    be returned to you, at our expense, promptly after the
    expiration or termination of the conversion offer by book entry
    transfer into the conversion agent&#146;s account at DTC. DTC
    will credit any validly withdrawn or unaccepted Convertible
    Notes to your account at DTC. For more information, see the
    section of this conversion offer prospectus entitled &#147;The
    Conversion Offer&#160;&#151; Withdrawal Rights.&#148;
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Until
    when may I withdraw Convertible Notes previously surrendered for
    conversion?</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If not previously returned, you may withdraw Convertible Notes
    that were previously surrendered for conversion at any time
    until the conversion offer has expired. In addition, you may
    withdraw any Convertible Notes that you surrender that are not
    accepted for conversion by us after the expiration of 40
    business days from January&#160;&#160;&#160;, 2007, if such
    shares have not been previously returned to you. For more
    information, see the section of this conversion offer prospectus
    entitled &#147;The Conversion Offer&#160;&#151; Withdrawal
    Rights.&#148;
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">How do I
    withdraw Convertible Notes previously surrendered for
    conversion?</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    To withdraw Convertible Notes previously surrendered for
    conversion, you must either give written notice of withdrawal
    which must be received by the conversion agent on or before the
    expiration date, or, in the case of book-entry transfer, you
    must comply with the appropriate procedures of DTC&#146;s
    automated tender offer program. For more information regarding
    the procedures for withdrawing these notes, see the section of
    this conversion offer prospectus entitled &#147;The Conversion
    Offer&#160;&#151; Withdrawal Rights.&#148;
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Will I
    have to pay any fees or commissions if I convert my Convertible
    Notes in this conversion offer?</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If your Convertible Notes are held through a broker or other
    nominee who surrenders the Convertible Notes on your behalf
    (other than those surrendered through the dealer manager), your
    broker may charge you a commission for doing so. You should
    consult with your broker or nominee to determine whether any
    charges will apply. Otherwise, you will not be required to pay
    any fees or commissions to us, the dealer manager, the
    conversion agent or the information agent in connection with the
    conversion offer.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">With whom
    may I talk if I have questions about the conversion
    offer?</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If you have questions regarding the conversion offer, please
    contact the dealer manager, Merrill Lynch&#160;&#38; Co. You may
    call Merrill Lynch toll-free at
    <FONT style="white-space: nowrap">(888)&#160;654-8637</FONT>
    or collect at
    <FONT style="white-space: nowrap">(212)&#160;449-4914.</FONT>
    If you have questions regarding the procedures for converting
    your Convertible Notes in the conversion offer, please contact
    Global Bondholder Services Corporation, the conversion agent,
    toll-free at
    <FONT style="white-space: nowrap">(866)&#160;470-4200.</FONT>
    If you require additional conversion offer materials, please
    contact Global Bondholder Services Corporation, the information
    agent, at
    <FONT style="white-space: nowrap">(866)&#160;470-4200.</FONT>
    You may also write to any of these entities at one of their
    respective addresses set forth on the back cover of this
    conversion offer prospectus.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    22
</DIV><!-- END LOGICAL PAGE -->
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->
<A name='105'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">THE
    CONVERSION OFFER</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Purpose
    and Effect</FONT></B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The purposes of the conversion offer are to induce the
    conversion to common stock of any and all of the outstanding
    Convertible Notes to reduce our ongoing fixed interest
    obligations and to improve the trading liquidity of our common
    stock by increasing the number of outstanding shares of common
    stock available for trading. We are offering to increase the
    conversion rate for the Convertible Notes surrendered for
    conversion upon the terms and subject to the conditions set
    forth in this conversion offer prospectus and the related letter
    of transmittal. The Convertible Notes are currently convertible
    at a conversion rate of 74.0741&#160;shares of common stock per
    $1,000 principal amount of notes, subject to adjustment, which
    is equivalent to a conversion price of approximately
    $13.50&#160;per share. The conversion offer allows current
    holders of Convertible Notes who surrender their Convertible
    Notes for conversion on or before 5:00&#160;p.m., New York City
    time, on March&#160;&#160;&#160;, 2007 to receive a conversion
    rate of 81.0&#160;shares per $1,000 principal amount of notes,
    subject to adjustment, which is equivalent to a conversion price
    of approximately $12.35 per share. This represents an increase
    in the conversion rate of 6.9259&#160;shares per $1,000
    principal amount of notes, subject to adjustment, which is
    equivalent to a decrease in the conversion price of
    approximately $1.15&#160;per share. Any Convertible Notes that
    are converted in the conversion offer will be cancelled and
    retired.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Terms of
    the Conversion Offer</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Pursuant to the terms of the conversion offer, including the
    terms or conditions of any extension or amendment of the
    conversion offer, we will accept for conversion, and promptly
    convert pursuant to the terms of the Convertible Notes, at the
    increased conversion rate, all Convertible Notes validly
    surrendered for conversion pursuant to the conversion offer and
    not validly withdrawn (or, if withdrawn, validly re-surrendered
    after such withdrawal). The conversion agent will act as agent
    for converting holders for the purpose of receiving shares of
    common stock from us and transmitting such shares to the
    converting holders.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For $1,000 aggregate principal amount of Convertible Notes you
    validly surrender as part of the conversion offer and we accept
    for conversion, you will receive a conversion rate of
    81.0&#160;shares per $1,000 principal amount of notes, subject
    to adjustment, which is equivalent to a conversion price of
    approximately $12.35&#160;per share.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We are not required to issue fractional shares of common stock
    upon conversion of the Convertible Notes in the conversion
    offer. Instead, we will pay a cash adjustment for all fractional
    shares based upon the closing price of the common stock on the
    business day preceding the settlement date.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Subject to
    <FONT style="white-space: nowrap">Rule&#160;14e-1(c)</FONT>
    of the Securities Exchange Act of 1934, as amended, we reserve
    the right in our sole discretion and at any time to delay
    acceptance for conversion of, or payment of conversion
    consideration in respect of, Convertible Notes for such time as
    may be needed to obtain any required governmental regulatory
    approvals. See &#147;&#151;&#160;Conditions to the Conversion
    Offer.&#148; In all cases, the conversion agent will make
    payment to holders of Convertible Notes or beneficial owners of
    the conversion consideration for such notes surrendered for
    conversion pursuant to the conversion offer only after the
    conversion agent has received, prior to the expiration date:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    either of the following:
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 6%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (1)&#160;certificates representing the Convertible Notes to be
    converted in the conversion offer;&#160;or
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 6%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (2)&#160;timely confirmation of a book-entry transfer of the
    Convertible Notes into the conversion&#146;s agent account at
    DTC pursuant to the procedures set forth in this
    section;&#160;and
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    either of the following:
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 6%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (1)&#160;a properly completed and duly executed letter of
    transmittal, together with any other forms, signatures,
    guarantees, documents or information that may be required
    thereby;&#160;or
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 6%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (2)&#160;a properly transmitted agent&#146;s message through
    ATOP.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    23
</DIV><!-- END LOGICAL PAGE -->
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For purposes of this conversion offer, Convertible Notes
    surrendered for conversion will only be deemed to have been
    accepted for conversion and payment of conversion consideration
    if, as and when we give proper notice of such acceptance to the
    conversion agent.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Converting holders will not be obligated to pay brokerage fees
    or commissions to the dealer manager, the information agent, the
    conversion agent, the trustee or us. Converting holders will not
    be required to pay transfer taxes on the payment of the
    conversion consideration, except as provided in the letter of
    transmittal.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Expiration
    Date and Amendments</FONT></B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The conversion offer will expire at 5:00&#160;p.m., New York
    City time,
    on&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    March&#160;&#160;&#160;, 2007, unless we, in our sole
    discretion, extend the conversion offer, in which case the term
    &#147;expiration date&#148; means the latest date and time to
    which we extend the conversion offer. In any event, the
    conversion offer will be open for at least 20 full business days.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We also may extend the conversion offer or amend or terminate
    the conversion offer if any of the conditions described below
    under &#147;&#151;&#160;Conditions to the Conversion Offer&#148;
    have not been satisfied or waived prior to the expiration date
    by giving proper notice to the conversion agent of the delay,
    extension, amendment or termination. Further, we reserve the
    right, in our sole discretion and at any time, to amend the
    terms of the conversion offer in any manner permitted or not
    prohibited by applicable law. We will notify you as promptly as
    practicable of any extension, amendment or termination in
    accordance with applicable law. We will also file an amendment
    to the registration statement of which this conversion offer
    prospectus is a part with respect to any fundamental change in
    the conversion offer.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If we determine to extend the conversion offer, then we will
    notify the conversion agent of any extension by oral or written
    notice and give each registered holder notice of the extension
    by means of a press release or other public announcement before
    9:00&#160;a.m., New York City time, on the next business day
    after the previously scheduled expiration date. During any
    extension, all Convertible Notes previously surrendered for
    conversion will remain subject to the conversion offer and may
    be accepted for conversion by us, except that surrendered notes
    may be validly withdrawn after the expiration date if the
    Convertible Notes have not been accepted for conversion after
    the expiration of 40 business days from
    February&#160;&#160;&#160;, 2007. Any Convertible Notes not
    accepted for conversion for any reason will be returned without
    expense to the surrendering holder promptly after the expiration
    or termination of the conversion offer.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Procedures
    for Surrendering Convertible Notes for Conversion</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Submission
    of Convertible Notes</FONT></I></B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The submission of Convertible Notes for conversion as described
    below and our acceptance of such notes will constitute a binding
    agreement between the converting holder and us upon the terms
    and conditions described in this conversion offer prospectus and
    in the accompanying letter of transmittal. Except as described
    below, a converting holder who wishes to submit Convertible
    Notes for conversion in response to the conversion offer must
    deliver the notes, together with a properly completed and duly
    executed letter of transmittal, including all other documents
    required by the letter of transmittal, to the conversion agent
    at the address listed on the back cover page of this conversion
    offer prospectus prior to 5:00&#160;p.m., New York City time,
    on&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    March&#160;&#160;&#160;, 2007. All notes not converted in
    response to the conversion offer will be returned to the
    submitting holder at our expense as promptly as practicable
    following the expiration date.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    THE METHOD OF DELIVERY OF NOTES, LETTERS OF TRANSMITTAL AND ALL
    OTHER REQUIRED DOCUMENTS IS AT THE ELECTION AND RISK OF THE
    HOLDER. IF DELIVERY IS BY MAIL, IT IS RECOMMENDED THAT
    REGISTERED MAIL, PROPERLY INSURED, WITH RETURN RECEIPT
    REQUESTED, BE USED. INSTEAD OF DELIVERY BY MAIL, IT IS
    RECOMMENDED THAT THE HOLDER USE AN OVERNIGHT OR HAND DELIVERY
    SERVICE. IN ALL CASES, SUFFICIENT TIME SHOULD BE ALLOWED TO
    ASSURE TIMELY DELIVERY.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>There are no guaranteed delivery procedures in connection
    with this conversion offer.</B>
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    24
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Book-Entry
    Delivery Procedures</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Any financial institution that is a participant in DTC may make
    book-entry delivery of the Convertible Notes by causing DTC to
    transfer such notes into the conversion agent&#146;s account in
    accordance with that facility&#146;s procedures for the
    transfer. In connection with a book-entry transfer, a letter of
    transmittal need not be transmitted to the conversion agent, as
    long as the book-entry transfer procedure is complied with prior
    to 5:00&#160;p.m., New York City time, on the expiration date
    and an agent&#146;s message (as defined below) is received by
    the conversion agent prior to 5:00&#160;p.m., New York City
    time, on the expiration date. The term &#147;agent&#146;s
    message&#148; means a message, transmitted by DTC to, and
    received by, the conversion agent, which states that
    (1)&#160;DTC has received an express acknowledgement from the
    participant in DTC submitting Convertible Notes for conversion,
    (2)&#160;the participant has received and agrees to be bound by
    the terms of the letter of transmittal and (3)&#160;we may
    enforce the agreement against the participant.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Signatures
    and Signature Guarantees</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Each signature on a letter of transmittal or a notice of
    withdrawal, as the case may be, must be guaranteed, unless the
    notes surrendered for conversion with that letter of transmittal
    are submitted (1)&#160;by a registered holder of the notes who
    has not completed either the box entitled &#147;Special
    Conversion Instructions&#148; or the box entitled &#147;Special
    Delivery Instructions&#148; in the letter of transmittal, or
    (2)&#160;for the account of a financial institution (including
    most commercial banks, savings and loan associations and
    brokerage houses) that is a participant in the Security Transfer
    Agent Medallion Program, the New York Stock Exchange Medallion
    Signature Guarantee Program or the Stock Exchange Medallion
    Program, each known as an eligible institution. In the event
    that a signature on a letter of transmittal or a notice of
    withdrawal, as the case may be, is required to be guaranteed,
    the guarantee must be by an eligible institution. If the letter
    of transmittal is signed by a person other than the registered
    holder of the Convertible Notes, the Convertible Notes
    surrendered for conversion must either (1)&#160;be endorsed by
    the registered holder, with the signature guaranteed by an
    eligible institution, or (2)&#160;be accompanied by a stock
    power, in satisfactory form as determined by us in our sole
    discretion, duly executed by the registered holder, with the
    signature guaranteed by an eligible institution. The term
    &#147;registered holder&#148; as used in this paragraph with
    respect to the Convertible Notes means any person in whose name
    such notes are registered on the books of the transfer agent and
    registrar for the notes.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If any letter of transmittal, endorsement, stock power, power of
    attorney or any other document required by the letter of
    transmittal is signed by a trustee, executor, corporation or
    other person acting in a fiduciary or representative capacity,
    the signatory should so indicate when signing, and, unless
    waived by us, submit proper evidence of the person&#146;s
    authority to so act, which evidence must be satisfactory to us
    in our sole discretion.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Beneficial
    Owners</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Any beneficial owner of the Convertible Notes whose notes are
    registered in the name of a broker, dealer, commercial bank,
    trust company or other nominee and who wishes to submit notes
    for conversion in the conversion offer should contact the
    broker, dealer, commercial bank, trust company or other nominee
    promptly and instruct it to have the registered holder submit
    such notes for conversion on the beneficial owner&#146;s behalf.
    Beneficial owners should be aware that the transfer of
    registered ownership may take considerable time.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Backup
    Withholding</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    To prevent U.S.&#160;federal income tax backup withholding, each
    converting holder of Convertible Notes that is a
    U.S.&#160;person generally must provide the conversion agent
    with the holder&#146;s correct taxpayer identification number
    and certify that the holder is not subject to U.S.&#160;federal
    income tax backup withholding by completing the
    <FONT style="white-space: nowrap">Form&#160;W-9</FONT>
    provided with the letter of transmittal. Each converting holder
    of notes that is not a U.S.&#160;person generally must provide
    the conversion agent with an applicable
    <FONT style="white-space: nowrap">Form&#160;W-8,</FONT>
    certifying that the holder is not a U.S.&#160;person and is not
    subject to U.S.&#160;federal income tax backup withholding. For
    a discussion of the material U.S.&#160;federal income tax
    considerations relating to backup withholding, see
    &#147;Material U.S.&#160;Federal Income Tax Considerations.&#148;
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    25
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Determination
    of Validity</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We will determine all questions as to the validity, form,
    eligibility (including time of receipt) and acceptance of any
    Convertible Notes surrendered for conversion pursuant to any of
    the procedures described above in our sole discretion, and this
    determination will be final and binding. We reserve the absolute
    right to reject any and all surrenders of any notes that we
    determine not to be in proper form or if our acceptance for
    conversion of, or payment of conversion consideration in respect
    of, such notes may, in our opinion or the opinion of our
    counsel, be unlawful. We also reserve the absolute right, in our
    sole discretion, to waive any of the conditions of the
    conversion offer or any defect or irregularity in any surrender
    with respect to any holder&#146;s notes, whether or not similar
    defects or irregularities are waived in the case of other
    holders. Our interpretation of the terms and conditions of the
    conversion offer and the documents delivered in connection
    therewith will be final and binding. Neither we, nor the
    conversion agent, the dealer manager, the information agent, nor
    any other person, will be under any duty to give notification of
    any defects or irregularities in surrenders or will incur any
    liability for failure to give any such notification. If we waive
    our right to reject a defective surrender, the holder will be
    entitled to the conversion consideration.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Withdrawal
    Rights</FONT></B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    You may withdraw your submission of Convertible Notes for
    conversion at any time before the conversion offer expires. In
    addition, you may withdraw any previously surrendered
    Convertible Notes that are not accepted for conversion by us
    after the expiration of 40 business days from
    February&#160;&#160;&#160;, 2007, if such notes have not been
    previously returned to you.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For a withdrawal to be effective, the conversion agent must
    receive a written or facsimile notice of withdrawal at its
    address listed on the back cover of this conversion offer
    prospectus. A facsimile transmission notice of withdrawal that
    is received prior to receipt of a surrender of notes sent by
    mail and postmarked prior to the date of the facsimile
    transmission of withdrawal will be treated as a withdrawn
    surrender. The notice of withdrawal must:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    specify the name of the person who surrendered the notes to be
    withdrawn;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    identify the notes to be withdrawn, including the amount of
    notes and certificate number, or, in the case of shares
    surrendered by book-entry transfer, the name and number of the
    DTC account to be credited, and otherwise comply with the
    procedures of DTC and the letter of transmittal;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    be signed by the depositor in the same manner as the original
    signature on the letter of transmittal by which those notes were
    surrendered, including any required signature guarantee, or be
    accompanied by documents of transfer and properly completed
    irrevocable proxies sufficient to permit our transfer agent to
    register the transfer of those notes into the name of the
    depositor withdrawing the surrender;&#160;and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    if certificates for notes have been transmitted, specify the
    name in which notes are registered if different from that of the
    withdrawing holder.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If you have delivered or otherwise identified to the conversion
    agent the certificates for Convertible Notes, then, before the
    release of these certificates, you must also submit the serial
    numbers of the particular certificates to be withdrawn and a
    signed notice of withdrawal with the signatures guaranteed by an
    eligible guarantor institution, unless the holder is an eligible
    guarantor institution.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We will determine in our sole discretion all questions as to the
    validity, form and eligibility, including time of receipt, of
    notices of withdrawal. Our determination will be final and
    binding on all parties. Any notes so withdrawn will be deemed
    not to have been validly surrendered for purposes of the
    conversion offer. We will return any notes that have been
    surrendered but that are not converted for any reason to the
    holder, without cost, promptly after withdrawal, rejection of
    surrender or termination of the conversion offer. In the case of
    notes surrendered by book-entry transfer into the conversion
    agent&#146;s account at DTC, the notes will be credited to an
    account maintained with DTC for the notes. You may re-surrender
    properly withdrawn notes by following one of the procedures
    described under &#147;&#151;&#160;Procedures for Surrendering
    Convertible Notes&#148; at any time on or before the expiration
    date.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    26
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Conditions
    to the Conversion Offer</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">General
    Conditions</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Notwithstanding any other term of the conversion offer, we will
    not be required to accept for conversion or to convert
    Convertible Notes if we have not obtained all governmental
    regulatory approvals required to consummate the conversion
    offer. In addition to the other conditions described above, we
    will not be required to complete the conversion offer if:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the registration statement of which this conversion offer
    prospectus forms a part has not been declared effective by the
    SEC;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    except as to holders who are or may be affiliates of us, the
    shares of common stock to be received will not be tradable by
    the holder without restriction under the Securities Act and
    without material restrictions under the blue sky or securities
    laws of substantially all of the states of the United States;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the conversion offer, or the making of any conversion by a
    holder of notes, would violate any applicable law, regulation or
    interpretation of the staff of the SEC;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    any action or proceeding is instituted or threatened in any
    court or by or before any governmental, regulatory or
    administrative agency or instrumentality or by any other person
    in connection with the conversion offer which, in our judgment:
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="2%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    is, or is reasonably likely to be, materially adverse to our
    business, operations, properties, condition (financial or
    otherwise), assets, liabilities or prospects;&#160;or
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    would or might prohibit, prevent, restrict or delay consummation
    of the conversion offer;
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    an order, statute, rule, regulation, executive order, stay,
    decree, judgment or injunction shall have been proposed,
    enacted, entered, issued, promulgated, enforced or deemed
    applicable by any court or governmental, regulatory or
    administrative agency or instrumentality, that, in our sole
    judgment:
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="2%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    is, or is reasonably likely to be, materially adverse to our
    business, operations, properties, condition (financial or
    otherwise), assets, liabilities or prospects;&#160;or
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    would or might prohibit, prevent, restrict or delay consummation
    of the conversion offer;
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    there shall have occurred or be likely to occur any event
    affecting our business or financial affairs that, in our sole
    judgment, would or might prohibit, prevent, restrict or delay
    consummation of the conversion offer;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    there has occurred:
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="2%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    any general suspension of, or limitation on prices for, trading
    in securities in the U.S.&#160;securities or financial markets;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    any significant adverse change in the price of the Convertible
    Notes or the common stock;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    a material impairment in the trading market for securities;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    a declaration of a banking moratorium or any suspension of
    payments in respect of banks in the United&#160;States or other
    financial markets;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    any limitation that, in our reasonable judgment, might affect
    the extension of credit by banks or other lending institutions;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    a commencement or escalation of war or armed hostilities or
    other national or international calamity directly or indirectly
    involving the United States;&#160;or
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    in the case of any of the foregoing in existence on the date of
    this conversion offer prospectus, a material acceleration or
    worsening thereof.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The conditions described in this section are for our sole
    benefit and we may assert them prior to the expiration date
    regardless of the circumstances giving rise to any condition.
    Subject to applicable law, we may waive these
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    27
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    conditions in our discretion in whole or in part prior to the
    expiration date, except as to the requirement that the
    registration statement be declared effective by the SEC, which
    condition we will not waive. If we waive any waivable
    conditions, the waiver will apply to all holders of Convertible
    Notes who submit their notes for conversion in the conversion
    offer and we will continue the conversion offer for at least
    five business days after the waiver. If we fail at any time to
    exercise any of the above rights, the failure will not be deemed
    a waiver of those rights, and those rights will be deemed
    ongoing rights which may be asserted at any time and from time
    to time.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We will not accept for conversion any Convertible Notes
    surrendered, and will not issue common stock in conversion for
    any surrendered Convertible Notes, if at that time a stop order
    is threatened or in effect with respect to the registration
    statement of which this conversion offer prospectus forms a part.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For conditions that are based upon the occurrence of an event,
    we will determine whether the event has in fact occurred. For
    conditions that require a legal conclusion or analysis, we may
    seek and rely upon the advice of our legal counsel to determine
    whether that condition has been satisfied. For conditions that
    are subject to our sole discretion or judgment, our management
    or board of directors (or a committee thereof) will make a good
    faith determination as to whether the condition is satisfied
    based upon an assessment of the facts, circumstances and other
    information known by us at the time the decision is to be made,
    and we may, but are not obligated to, seek the advice, approval
    or consent of any other person. At present, we have not made a
    decision as to what circumstances would lead us to waive any
    condition and any such waiver would depend on all of the facts
    and circumstances prevailing at the time of the waiver. Any
    determination made by us concerning the events described in this
    section will be final and binding upon all affected persons.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Resales
    of Common Stock Received Pursuant to the Conversion
    Offer</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Assuming that the registration statement of which this
    conversion offer prospectus forms a part is declared effective
    by the SEC, common stock received by holders of Convertible
    Notes pursuant to this conversion offer may be offered for
    resale, resold and otherwise transferred without further
    registration under the Securities Act and without delivery of a
    prospectus meeting the requirements of Section&#160;10 of the
    Securities Act if the holder is not our &#147;affiliate&#148;
    within the meaning of Rule&#160;144(a)(1) under the Securities
    Act. Any holder who is our affiliate at the time of the
    conversion must comply with the registration and prospectus
    delivery requirements of the Securities Act in connection with
    any resales, unless such sale or transfer is made pursuant to an
    exemption from such requirements and the requirements under
    applicable state securities laws.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Consequences
    of Failure to Convert Convertible Notes in the Conversion
    Offer</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Holders who desire to convert their Convertible Notes into
    common stock in the conversion offer should allow sufficient
    time to ensure timely delivery. Neither we nor the conversion
    agent is under any duty to give notification of defects or
    irregularities with respect to the requests for conversion.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Convertible Notes that are not converted or are submitted for
    conversion but not accepted will, following the consummation of
    the conversion offer, continue to be subject to the existing
    restrictions on transfer set forth in the legend on the
    Convertible Notes and in the offering memorandum, dated
    July&#160;20, 2004, relating to the issuance of such notes. In
    general, the Convertible Notes, unless registered under the
    Securities Act, may not be offered or sold except pursuant to an
    exemption from, or in a transaction not subject to, the
    Securities Act and applicable state securities laws. The Company
    kept a registration statement effective with respect to the
    resales of the Convertible Notes and the common stock into which
    such Convertible Notes were convertible for two years. Any
    Convertible Notes not sold pursuant to such registration
    statement are subject to the transfer restrictions described in
    the offering memorandum.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Convertible Notes that are not converted in the conversion offer
    will remain outstanding and continue to accrue interest and will
    be entitled to the rights and benefits their holders have under
    the indenture relating to the Convertible Notes.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    28
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Accounting
    Treatment</FONT></B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The difference between the fair value of the consideration
    transferred to holders of the Convertible Notes that convert
    their notes in the conversion offer and the fair value of common
    stock issuable pursuant to the original conversion terms, will
    be subtracted from net income to arrive at net income available
    to common shareholders and will affect the calculation of
    earnings per common share in the current period. Assuming all
    notes are converted, a noncash convertible debt conversion
    charge of approximately $13.0&#160;million will be recorded as a
    reduction of net income in the period of conversion, based on
    the closing price of our common stock on February 14, 2007.  The
    fees and expenses we incur in connection with the conversion
    offer will also be recorded as a reduction of net income in the
    current period.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Appraisal
    Rights</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    None of our stockholders will have any appraisal rights with
    respect to the conversion offer.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    29
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->
<A name='106'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">MARKET
    FOR OUR COMMON STOCK AND CONVERTIBLE NOTES</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>
</A>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our common stock is listed on the New York Stock Exchange under
    the symbol &#147;TWI.&#148; Our Convertible Notes are not traded
    or quoted on an established trading market, although the
    Convertible Notes are traded on the
    PORTAL<SUP style="font-size: 85%; vertical-align: text-top"><FONT style="font-variant: SMALL-CAPS">sm</FONT></SUP>
    system of The NASDAQ Stock Market, Inc. The following table sets
    forth the high and low sales price on the New York Stock
    Exchange and dividends declared per share of our common stock
    during the periods shown.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="72%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Common Stock</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>High</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Low</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Dividends</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B><FONT style="font-size: 10pt">Year Ended December&#160;31,
    2005:</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">First Fiscal Quarter
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    15.45
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    12.30
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.005
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Second Fiscal Quarter
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15.85
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13.12
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.005
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Third Fiscal Quarter
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14.58
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12.64
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.005
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Fourth Fiscal Quarter
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18.17
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13.15
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.005
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B><FONT style="font-size: 10pt">Year Ended December&#160;31,
    2006:</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">First Fiscal Quarter
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    17.64
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    16.55
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.005
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Second Fiscal Quarter
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19.76
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16.20
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.005
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Third Fiscal Quarter
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19.40
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16.65
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.005
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Fourth Fiscal Quarter
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20.85
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17.52
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.005
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B><FONT style="font-size: 10pt">Year Ended December&#160;31,
    2007:</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">First Fiscal Quarter (through
    February&#160;14, 2007)
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    24.29
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    19.74
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On February&#160;14, 2007, the closing sale price of our common
    stock, as reported by the New York Stock Exchange, was
    $23.96&#160;per share. On December&#160;31, 2006, we believe
    there were approximately 800 holders of record of Titan common
    stock and there were approximately 2,200 beneficial owners of
    our common stock.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    DTC is the sole holder of record of the Convertible Notes.
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We paid a $0.005&#160;per share dividend on our common stock
    each quarter beginning in the second quarter of 2001. The future
    payment of dividends on our common stock is subject to the
    discretion of our board of directors, restrictions under our
    outstanding Convertible Notes, restrictions under our revolving
    credit facility and the indenture governing our senior unsecured
    notes due 2012 and the requirements of Illinois Corporation Law
    will depend upon general business conditions, our financial
    performance and other factors our board of directors may
    consider relevant.
</DIV>

<DIV style="margin-top: 9pt; font-size: 1pt">&nbsp;</DIV>
<A name='107'>
<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">USE OF
    PROCEEDS</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>
</A>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We will not receive any cash proceeds from the conversion offer.
</DIV>

<DIV style="margin-top: 9pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">RATIO OF
    EARNINGS TO FIXED CHARGES</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table shows our historical ratio of earnings to
    fixed charges for each of the five most recent fiscal years and
    for the nine months ended September&#160;30, 2006.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="36%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=07 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=07 type=lead -->
    <TD width="14%" align="right">&nbsp;</TD>	<!-- colindex=07 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=07 type=hang1 -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="18" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Year Ended December&#160;31,</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Nine Months Ended<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2001</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2002</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2003</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2004</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2005</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>September&#160;30, 2006</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Ratio of earnings to fixed charges
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    n/a
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    n/a
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    n/a
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.06
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.25
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.95
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Earnings deficiency
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    52,324
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    31,213
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    33,147
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For the purposes of calculating the ratio of earnings to fixed
    charges, &#147;earnings&#148; represents income from continuing
    operations before income taxes, plus fixed charges. &#147;Fixed
    charges&#148; consist of interest expense including amortization
    of debt issuance costs and that portion of rental expense
    considered to be a reasonable approximation of interest.
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For the years ended December&#160;31, 2001, 2002, and 2003,
    earnings were inadequate to cover fixed charges and the dollar
    amount of coverage deficiency is disclosed in the above table,
    in thousands.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    30
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->
<A name='108'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">DESCRIPTION
    OF OUR CONVERTIBLE NOTES</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On July&#160;26, 2004, the Company issued and sold $115,000,000
    aggregate principal amount of Convertible Notes to initial
    purchasers who then sold the Convertible Notes in private
    placement transactions to qualified institutional buyers (as
    defined in Rule&#160;144A under the Securities Act of 1933). The
    Convertible Notes were issued under an indenture between the
    Company and U.S.&#160;Bank National Association, as trustee,
    dated as of July&#160;26, 2004. Our obligation to keep effective
    a shelf registration statement for the resale by noteholders of
    the notes or shares of common stock issued upon conversion of
    the notes expired on the second anniversary of the latest
    issuance of the notes, being July&#160;26, 2006. The following
    section is a summary of the material provisions of the indenture
    and does not restate the indenture in its entirety. We urge you
    to read the indenture with respect to our Convertible Notes
    because it, and not this description, defines the rights as
    holders of the Convertible Notes. Copies of the indenture are
    available as set forth under &#147;Where You Can Find More
    Information.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As used in this description, references to &#147;we,&#148;
    &#147;us,&#148; &#147;our&#148; or &#147;Titan&#148; mean Titan
    International, Inc. and do not include any current or future
    subsidiary of Titan International, Inc.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">General</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The notes are general unsecured senior obligations of Titan
    International and rank equal in right of payment to all other
    unsecured indebtedness of Titan International. The notes are
    effectively subordinated to all of our existing and future
    secured debt as to the assets securing such debt and are
    structurally subordinated to all existing and future
    indebtedness and other liabilities of our subsidiaries. The
    indenture permits us to incur additional senior indebtedness,
    including secured debt.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The notes are convertible into shares of our common stock as
    described under &#147;&#151;&#160;Conversion Rights&#148; below.
    As of February&#160;15, 2007, $81,200,000 principal amount of
    notes was outstanding, and will mature on July&#160;26, 2009,
    unless earlier purchased or converted. The notes are issued in
    denominations of $1,000 and multiples of $1,000.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The notes bear interest at the rate of 5.25%&#160;per year from
    the date of issuance of the original notes. Interest is payable
    semi-annually in arrears on June&#160;30 and December&#160;31 of
    each year, commencing December&#160;31, 2004, to holders of
    record at the close of business on the preceding June 15 and
    December&#160;15, respectively. Interest is computed on the
    basis of a
    <FONT style="white-space: nowrap">360-day</FONT> year
    comprised of twelve
    <FONT style="white-space: nowrap">30-day</FONT>
    months. In the event of the maturity, conversion or purchase by
    us at the option of the holder upon a change in control,
    interest will cease to accrue on the note under the terms of and
    subject to the conditions of the indenture.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Principal is payable, and the notes may be presented for
    conversion, registration of transfer and exchange, without
    service charge, at our office or agency.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The indenture does not contain any financial covenants or any
    restrictions on the payment of dividends, the repurchase of our
    securities or the incurrence of indebtedness. The indenture also
    does not contain any covenants or other provisions to afford
    protection to holders of the notes in the event of a highly
    leveraged transaction or a change in control of Titan
    International, except to the extent described under
    &#147;&#151;&#160;Purchase at Option of Holders upon a Change in
    Control&#148; below.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Conversion
    Rights</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A holder may convert a note, in integral multiples of $1,000
    principal amount, into 74.0741&#160;shares of common stock per
    $1,000 principal amount of notes (the &#147;conversion
    rate&#148;) at any time before the close of business on
    July&#160;26, 2009. Except as described below, no cash payment
    or other adjustment will be made on conversion of any notes for
    interest accrued thereon or for dividends on any common stock.
    Our delivery to the holder of the full number of shares of our
    common stock into which a note is convertible, together with any
    cash payment for such holder&#146;s fractional shares, will be
    deemed to satisfy our obligation to pay the principal amount of
    the note and any accrued and unpaid interest. Any accrued and
    unpaid interest will be deemed paid in full rather than
    canceled, extinguished or forfeited. In addition, a holder may
    be entitled to receive a make-whole premium as described under
    &#147;&#151;&#160;Purchase at Option of Holders upon a Change in
    Control.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If notes are converted after a record date for an interest
    payment but prior to the next interest payment date, those notes
    must be accompanied by funds equal to the interest payable to
    the record holder on the next interest
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    31
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    payment date on the principal amount so converted. We are not
    required to issue fractional shares of common stock upon
    conversion of notes and instead will pay a cash adjustment based
    upon the closing sale price per share of our common stock on the
    last trading day before the date of conversion.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The &#147;sale price&#148; of our common stock on any date means
    the closing per share sale price (or if no closing sale price is
    reported, the average of the bid and ask prices or, if more than
    one in either case, the average of the average bid and the
    average ask prices) on such date on the New York Stock Exchange
    or such other principal United States securities exchange on
    which our common stock is traded or, if our common stock is not
    listed on a United States national or regional securities
    exchange, as reported by the National Association of Securities
    Dealers Automated Quotation System or by the National Quotation
    Bureau Incorporated. In the absence of a quotation, we will
    determine the sale price on the basis of such quotations as we
    consider appropriate.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The &#147;trading day&#148; means a day during which trading in
    securities generally occurs on the New York Stock Exchange or,
    if our common stock is not listed on a national or regional
    securities exchange, on the National Association of Securities
    Dealers Automated Quotation system or, if our common stock is
    not quoted on the National Association of Securities Dealers
    Automated Quotation System, on the principal other market on
    which our common stock is then traded.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A holder may exercise the right of conversion by delivering the
    note to be converted to the specified office of the conversion
    agent, with a completed notice of conversion, together with any
    funds that may be required as described in the third preceding
    paragraph. The conversion date will be the date on which the
    notes, the notice of conversion and any required funds have been
    so delivered. A holder delivering a note for conversion will not
    be required to pay any taxes or duties relating to the issuance
    or delivery of our common stock for such conversion, but will be
    required to pay any tax or duty which may be payable relating to
    any transfer involved in the issuance or delivery of our common
    stock in a name other than the holder of the note. Certificates
    representing shares of our common stock will be issued or
    delivered only after all applicable taxes and duties, if any,
    payable by the holder have been paid. If a note is to be
    converted in part only, a new note or notes equal in principal
    amount to the unconverted portion of the note surrendered for
    conversion will be issued. The shares of our common stock
    issuable upon conversion will not be issued or delivered in a
    name other than that of the holder of the note unless the
    applicable restrictions on transfer have been satisfied.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The initial conversion rate will be adjusted for certain future
    events, including:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    1.&#160;the issuance of our common stock as a dividend or
    distribution on our common stock to all holders of our common
    stock;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    2.&#160;certain subdivisions and combinations of our common
    stock;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    3.&#160;the issuance to all holders of our common stock of
    rights or warrants entitling them for a period of not more than
    60&#160;days to subscribe for or purchase shares of our common
    stock (other than pursuant to a shareholders rights plan) or
    securities convertible into shares of our common stock, at a
    price per share or having a conversion price per share less than
    the then current market price per share of our common stock;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    4.&#160;the dividend or other distribution to all holders of our
    common stock of shares of our capital stock (other than our
    common stock) or evidences of our indebtedness or our assets,
    including securities, but excluding: (A)&#160;those rights and
    warrants referred to in clause&#160;(3) above,
    (B)&#160;dividends and distributions in connection with a
    reclassification or change of our common stock, merger,
    consolidation, statutory share exchange, combination, sale or
    conveyance as described in the fourth succeeding paragraph below
    and (C)&#160;dividends or distributions paid exclusively in cash
    referred to in clause&#160;(5) below;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    5.&#160;dividends or other distributions consisting exclusively
    of cash to all holders of our common stock, excluding:
    (A)&#160;any cash that is distributed as part of a distribution
    referred to in clause&#160;(4) above and (B)&#160;any quarterly
    cash dividend on our common stock to the extent that the
    aggregate cash dividend per share of our common stock in any
    quarter does not exceed $0.005 (the &#147;dividend threshold
    amount&#148;); the dividend threshold amount is subject to
    adjustment on the same basis as the conversion rate, provided
    that no adjustment will be made to the dividend threshold amount
    for any adjustment made to the conversion rate pursuant to this
    clause&#160;(5); and
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    32
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    6.&#160;the purchase of our common stock pursuant to a tender
    offer or exchange offer made by us or any of our subsidiaries to
    the extent that the cash and fair market value of any other
    consideration included in the payment per share of common stock
    exceeds the closing sale price per share of our common stock on
    the trading day next succeeding the last date on which tenders
    or exchanges may be made pursuant to such tender or exchange
    offer.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Subject to the immediately succeeding sentence, no adjustment in
    the conversion rate will be required unless such adjustment
    would require a change of at least 1% in the conversion price
    then in effect at such time. Any adjustment that would otherwise
    be required to be made (a)&#160;will be carried forward and
    taken into account in any subsequent adjustment and
    (b)&#160;will be made five business days prior to the maturity
    of the notes (whether at stated maturity or otherwise) unless
    such adjustment has already been made prior to the adjustment
    contemplated by this clause&#160;(b). We will not make any
    adjustment if holders of notes are permitted to participate in
    the transactions described above.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In the event that we pay a dividend or make a distribution on
    shares of our common stock consisting of capital stock of, or
    similar equity interests in, as described in clause&#160;(4)
    above, a subsidiary or other business unit of ours, the
    conversion rate will be adjusted based on the market value of
    the securities so distributed relative to the market value of
    our common stock, in each case based on the average sale prices
    of those securities for the 10 trading days commencing on and
    including the fifth trading day after the date on which
    &#147;ex-dividend trading&#148; commences for such dividend or
    distribution on the New York Stock Exchange or such other
    national or regional exchange or market on which the securities
    are then listed or quoted.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Except as stated above, the conversion rate will not be adjusted
    for the issuance of common stock or any securities convertible
    into or exchangeable for our common stock or carrying the right
    to purchase any of the foregoing.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In the case of:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    any reclassification or change of our common stock (other than
    changes resulting from changes in par value or as a result of a
    subdivision or combination);
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    a consolidation, merger or combination involving Titan
    International;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    a sale or conveyance to another corporation of all or
    substantially all of our property and assets;&#160;or
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    any statutory share exchange;
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    in each case, as a result of which holders of our common stock
    are entitled to receive stock, other securities, other property
    or assets (including cash or any combination thereof) with
    respect to or in exchange for our common stock, the holders of
    the notes then outstanding will be entitled thereafter to
    convert such notes into the kind and amount of shares of stock,
    other securities or other property or assets (including cash or
    any combination thereof) that they would have owned or been
    entitled to receive upon such reclassification or change of our
    common stock, consolidation, merger, combination, sale,
    conveyance or statutory share exchange had such notes been
    converted into our common stock immediately prior to such
    reclassification, change, consolidation, merger, combination,
    sale, conveyance or statutory share exchange.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition, the indenture provides that upon conversion of the
    notes, the holders of such notes will receive, in addition to
    the shares of our common stock issuable upon such conversion,
    the rights related to such common stock pursuant to our existing
    and any future shareholder rights plan, whether or not such
    rights have separated from the common stock at the time of such
    conversion. However, there will not be any adjustment to the
    conversion rate as a result of:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the issuance of the rights;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the distribution of separate certificates representing the
    rights;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the exercise or redemption of such rights in accordance with any
    rights agreement;&#160;or
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the termination or invalidation of the rights.
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    33
</DIV><!-- END LOGICAL PAGE -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We may from time to time, to the extent permitted by law,
    increase the conversion rate of the notes by any amount for any
    period of at least 20&#160;days. In that case, we will give at
    least 15&#160;days&#146; notice of such increase. We may, but
    are under no obligation to, make such increases in the
    conversion rate, in addition to those set forth above, as our
    board of directors deems advisable to avoid or diminish any
    income tax to holders of our common stock resulting from any
    dividend or distribution of stock or rights to acquire stock or
    from any event treated as such for income tax purposes.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If a taxable distribution to holders of our common stock or
    other transaction occurs that results in any adjustment of the
    conversion rate, the holders of notes may, in certain
    circumstances, be deemed to have received a distribution subject
    to United States federal income tax as a dividend. In certain
    other circumstances, the absence of such an adjustment may
    result in a taxable dividend to the holders of our common stock.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Sinking
    Fund</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    There is no sinking fund for the notes.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Purchase
    at Option of Holders upon a Change in Control</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If a change in control occurs as set forth below, each holder of
    notes will have the right to require us to purchase for cash all
    of such holder&#146;s notes, or any portion of those notes that
    is equal to $1,000 or a whole multiple of $1,000, on the date
    that is not later than 30 business days after the date we give
    notice of the change in control, at a purchase price equal to
    100% of the principal amount of the notes to be purchased, plus
    accrued and unpaid interest to, but excluding, the purchase
    date, plus a make-whole premium under the circumstances
    described below. If such purchase date is after a record date
    but on or prior to an interest payment date, however, then the
    interest payable on such date will be paid to the holder of
    record of the notes on the relevant record date.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If a change in control occurs pursuant to the first or second
    bullet point of the definition thereof set forth below, we will
    pay a make-whole premium to the holders of the notes in addition
    to the purchase price of the notes on the change in control
    purchase date. The make-whole premium will also be paid on the
    change in control purchase date to holders of the notes who
    convert their notes into common stock on or after the date on
    which we have given a notice to all holders of notes of the
    occurrence of the change in control and on or before the change
    in control purchase date.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The make-whole premium will be determined by reference to the
    table below and is based on the date on which the change in
    control becomes effective (the &#147;effective date&#148;) and
    the price (the &#147;stock price&#148;) paid per share of our
    common stock in the transaction constituting the change in
    control. If holders of our common stock receive only cash in the
    transaction, the stock price shall be the cash amount paid per
    share of our common stock. Otherwise, the stock price shall be
    equal to the average closing sale price per share of our common
    stock over the five
    <FONT style="white-space: nowrap">trading-day</FONT>
    period ending on the trading day immediately preceding the
    effective date.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    34
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table shows what the make-whole premiums would be
    for each hypothetical stock price and effective date set forth
    below, expressed as a percentage of the principal amount of the
    notes.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Make-Whole
    Premium Upon a Change in Control (% of Face Value)</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="29%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=07 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=07 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=07 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=07 type=hang1 -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
    <B>Stock Price on<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="22" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Effective Date</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Effective Date</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>July&#160;26, 2004</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>July&#160;26, 2005</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>July&#160;26, 2006</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>July&#160;26, 2007</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>July&#160;26, 2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>July&#160;26, 2009</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">$&#160;9.87
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.0%
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.0%
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.0%
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.0%
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.0%
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.0%
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">$13.00
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    25.8%
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    23.8%
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    21.2%
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17.7%
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12.4%
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.0%
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">$16.00
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    26.4%
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    23.8%
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20.5%
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16.1%
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9.9%
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.0%
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">$19.00
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    24.2%
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    21.4%
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17.7%
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13.0%
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.9%
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.0%
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">$22.00
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    22.7%
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19.6%
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15.9%
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11.2%
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.6%
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.0%
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">$25.00
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    21.4%
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18.4%
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14.6%
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10.2%
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.0%
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.0%
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">$28.00
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20.4%
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17.4%
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13.8%
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9.5%
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4.7%
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.0%
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">$40.00
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17.6%
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14.9%
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11.9%
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8.3%
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4.4%
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.0%
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">$50.00
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15.5%
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13.3%
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10.7%
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7.7%
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4.2%
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.0%
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">$60.00
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13.5%
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11.6%
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9.6%
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7.1%
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4.1%
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.0%
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">$70.00
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11.5%
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9.9%
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8.5%
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.6%
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.9%
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.0%
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The make-whole premiums set forth above are based upon an
    interest rate of
    5<FONT style="vertical-align: top; font-size: 70&#37;">1</FONT>/<FONT style="font-size: 70&#37;">4</FONT>%,
    a closing sale price per share of our common stock of $9.87 on
    July&#160;19, 2004 and a conversion rate that results in a
    conversion price of $13.50, which is 36.78% higher than the
    closing sale price per share of our common stock on
    July&#160;19, 2004.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The actual stock price and effective date may not be set forth
    on the table, in which case:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    if the actual stock price on the effective date is between two
    stock prices on the table or the actual effective date is
    between two effective dates on the table, the make-whole premium
    will be determined by a straight-line interpolation between the
    make-whole premiums set forth for the two stock prices and the
    two effective dates on the table based on a
    <FONT style="white-space: nowrap">365-day</FONT>
    year, as applicable.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    if the stock price on the effective date exceeds $70.00&#160;per
    share (subject to adjustment as described below), no make-whole
    premium will be paid.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    if the stock price on the effective date is less than
    $9.87&#160;per share (subject to adjustment as described below),
    no make-whole premium will be paid.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The stock prices set forth in the first column of the table
    above will be adjusted as of any date on which the conversion
    rate of the notes is adjusted. The adjusted stock prices will
    equal the stock prices applicable immediately prior to such
    adjustment multiplied by a fraction, the numerator of which is
    the conversion rate immediately prior to the adjustment giving
    rise to the stock price adjustment and the denominator of which
    is the conversion rate as so adjusted.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We will pay, at our option, the make-whole premium in cash,
    shares of our common stock or the same form of consideration
    used to pay for the shares of our common stock in connection
    with the transaction constituting the change in control.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If we decide to pay the make-whole premium in shares of our
    common stock, the value of our common stock to be delivered in
    respect of the make-whole premium shall be deemed to be equal to
    the average closing sale price per share of our common stock
    over the ten
    <FONT style="white-space: nowrap">trading-day</FONT>
    period ending on the trading day immediately preceding the
    change in control purchase date. We may pay the make-whole
    premium in shares of our common stock only if the information
    necessary to calculate the closing sale price per share of our
    common stock is published in a daily newspaper of national
    circulation or by other appropriate means.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    35
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition, our right to pay the make-whole premium in shares
    of our common stock is subject to our satisfying various
    conditions, including:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    listing such common stock on the principal United States
    securities exchange on which our common stock is then listed or,
    if not so listed, on Nasdaq National Market;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the registration of the common stock under the Securities Act
    and the Exchange Act, if required;&#160;and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    any necessary qualification or registration under applicable
    state securities law or the availability of an exemption from
    such qualification and registration.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If such conditions are not satisfied with respect to a holder
    prior to the close of business on the change in control purchase
    date, we will pay the make-whole premium in cash. We many not
    change the form of consideration to be paid with respect to the
    make-whole premium once we have given the notice that we are
    required to give to holders of record of notes, except as
    described in the immediately preceding sentence.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If we decide to pay the make-whole premium in the same form of
    consideration used to pay for the shares of our common stock in
    connection with the transaction constituting the change in
    control, the value of the consideration to be delivered in
    respect of the make-whole premium will be calculated as follows:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    securities that are traded on a United States national
    securities exchange or approved for quotation on the Nasdaq
    National Market or any similar system of automated dissemination
    of quotations of securities prices will be valued based on the
    average closing price or last sale price, as applicable, over
    the ten
    <FONT style="white-space: nowrap">trading-day</FONT>
    period ending on the trading day immediately preceding the
    change in control purchase date;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    other securities, assets or property (other than cash) will be
    valued based on 98% of the average of the fair market value of
    such securities, assets or property (other than cash) as
    determined by two independent nationally recognized investment
    banks selected by the trustee;&#160;and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    100% of any cash.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Within 30&#160;days after the occurrence of a change in control,
    we are required to give notice to all holders of record of
    notes, as provided in the indenture, stating among other things,
    (1)&#160;the occurrence of change in control and of their
    resulting purchase right and (2)&#160;whether we will pay the
    make-whole premium in cash, shares of our common stock or the
    same form of consideration used to pay for the shares of our
    common stock in connection with the transaction constituting the
    change in control. We must also deliver a copy of our notice to
    the trustee.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In order to exercise the purchase right upon a change in
    control, a holder must deliver prior to the change in control
    purchase date a change in control purchase notice stating among
    other things:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    if certificated notes have been issued, the certificate numbers
    of the notes to be delivered for purchase:
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the portion of the principal amount of notes to be purchased, in
    integral multiples of $1,000;&#160;and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    that the notes are to be purchased by us pursuant to the
    applicable provisions of the notes and the indenture.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If the notes are not in certificated form, a holder&#146;s
    change in control purchase notice must comply with appropriate
    DTC procedures.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A holder may withdraw any change in control purchase notice upon
    a change in control by a written notice of withdrawal delivered
    to the paying agent prior to the close of business on the
    business day prior to the change in control purchase date. The
    notice of withdrawal must state:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the principal amount of the withdrawn notes;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    if certificated notes have been issued, the certificate numbers
    of the withdrawn notes;&#160;and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the principal amount, if any, of the notes which remains subject
    to the change in control purchase notice.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In connection with any purchase offer in the event of a change
    in control, we will, if required:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    comply with the provisions of
    <FONT style="white-space: nowrap">Rule&#160;13e-4,</FONT>
    <FONT style="white-space: nowrap">Rule&#160;14e-1,</FONT>
    and any other tender offer rules under the Exchange Act which
    may then be applicable; and
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    36
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    file a Schedule&#160;TO or any other required schedule under the
    Exchange Act.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Payment of the change in control purchase price for a note for
    which a change in control purchase notice has been delivered and
    not validly withdrawn is conditioned upon delivery of the note,
    together with necessary endorsements, to the paying agent at any
    time after delivery of such change in control purchase notice.
    Payment of the change in control purchase price for the note
    will be made promptly following the later of the change in
    control purchase date or the time of delivery of the note.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If the paying agent holds money or securities sufficient to pay
    the change in control purchase price of the note on the business
    day following the change in control purchase date in accordance
    with the terms of the indenture, then, immediately after the
    change in control purchase date, the note will cease to be
    outstanding and interest on such note will cease to accrue,
    whether or not the note is delivered to the paying agent.
    Thereafter, all other rights of the holder will terminate, other
    than the right to receive the change in control purchase price
    upon delivery of the note.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under the indenture, a &#147;change in control&#148; of Titan
    International will be deemed to have occurred at such time after
    the original issuance of the notes when the following has
    occurred:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the acquisition by any person of beneficial ownership, directly
    or indirectly, through a purchase, merger (except a merger by
    Titan International described in the following paragraph) or
    other acquisition transaction or series of transactions, of
    shares of our capital stock entitling that person to exercise
    50% or more of the total voting power of all shares of our
    capital stock entitled to vote generally in elections of
    directors, other than any acquisition by us, any of our
    subsidiaries or any of our employee benefit plans;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    our consolidation or merger with or into any other person, any
    merger of another person into us, or any conveyance, transfer,
    sale, lease or other disposition of all or substantially all of
    our properties and assets to another person, other than:
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 6%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    1.&#160;any transaction (a)&#160;that does not result in any
    reclassification, conversion, exchange or cancellation of
    outstanding shares of our capital stock and (b)&#160;pursuant to
    which holders of our capital stock immediately prior to the
    transaction are entitled to exercise, directly or indirectly,
    50% or more of the total voting power of all shares of capital
    stock entitled to vote generally in the election of directors of
    the continuing or surviving person immediately after the
    transaction;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 6%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    2.&#160;any merger, share exchange, transfer of assets or
    similar transaction solely for the purpose of changing our
    jurisdiction of incorporation and resulting in a
    reclassification, conversion or exchange of outstanding shares
    of common stock solely into shares of common stock of the
    surviving entity;&#160;or
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 6%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    3.&#160;all of the consideration for the common stock (excluding
    cash payments for fractional shares and cash payments made in
    respect of dissenters&#146; appraisal rights) in the transaction
    or transactions constituting the change in control consists of
    common stock traded on a U.S.&#160;national securities exchange
    or quoted on the Nasdaq National Market, or which will be so
    traded or quoted when issued or exchanged in connection with the
    change in control, and as a result of such transaction or
    transactions the notes become convertible solely into such
    common stock;&#160;or
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    during any consecutive two-year period, individuals who at the
    beginning of that two-year period constituted our board of
    directors (together with any new directors whose election to our
    board of directors, or whose nomination for election by our
    shareholders, was approved by a vote of a majority of the
    directors then still in office who were either directors at the
    beginning of such period or whose election or nomination for
    election was previously so approved) cease for any reason to
    constitute a majority of our board of directors then in office.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Beneficial ownership will be determined in accordance with
    <FONT style="white-space: nowrap">Rule&#160;13d-3</FONT>
    promulgated by the SEC under the Securities Exchange Act. The
    term &#147;person&#148; includes any syndicate or group that
    would be deemed to be a &#147;person&#148; under
    Section&#160;13(d)(3) of the Exchange Act.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    37
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="white-space: nowrap">Rule&#160;13e-4</FONT>
    under the Exchange Act requires the dissemination of information
    to security holders if an issuer tender offer occurs and may
    apply if the repurchase option becomes available to holders of
    the notes. We will comply with this rule to the extent
    applicable at that time.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We may, to the extent permitted by applicable law, at any time
    purchase the notes in the open market or by tender at any price
    or by private agreement. Any note purchased by us (a)&#160;after
    the date that is two years from the latest issuance of the notes
    (or July&#160;26, 2006)&#160;may, to the extent permitted by
    applicable law, be reissued or sold or may be surrendered to the
    trustee for cancellation or (b)&#160;on or prior to the date
    referred to in (a), will be surrendered to the trustee for
    cancellation. Any notes surrendered to the trustee may not be
    reissued or resold and will be canceled promptly.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    No notes may be purchased by us at the option of holders upon
    the occurrence of a change in control if there has occurred and
    is continuing an event of default with respect to the notes,
    other than a default in the payment of the change in control
    purchase price with respect to the notes.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Events of
    Default</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Each of the following will constitute an event of default under
    the indenture:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    our failure to pay when due the principal of any of the notes at
    maturity, upon exercise of a purchase right or otherwise;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    our failure to pay an installment of interest, or additional
    interest, if any, on any of the notes, that continues for
    30&#160;days after the date when due;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    our failure to deliver shares of common stock, together with
    cash instead of fractional shares, when those shares of common
    stock or cash instead of fractional shares are required to be
    delivered upon conversion of a note, and such failure continues
    for 10&#160;days after written notice of default is given to us
    by the trustee or to us and the trustee by the holder of such
    note;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    our failure to perform or observe any other term, covenant or
    agreement contained in the notes or the indenture for a period
    of 30&#160;days after written notice of such failure, requiring
    us to remedy the same, will have been given to us by the trustee
    or to us and the trustee by the holders of at least 25% in
    aggregate principal amount of the notes then outstanding;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    our failure to make any payment by the end of the applicable
    grace period, if any, after the maturity of any indebtedness for
    borrowed money in an amount in excess of $10&#160;million, or
    there is an acceleration of indebtedness for borrowed money in
    an amount in excess of $10&#160;million because of a default
    with respect to such indebtedness without such indebtedness
    having been discharged or such acceleration having been cured,
    waived, rescinded or annulled, in either case, for a period of
    30&#160;days after written notice to us by the trustee or to us
    and the trustee by holders of at least 25% in aggregate
    principal amounts of the notes then outstanding;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    certain events of our bankruptcy, insolvency or reorganization
    or that of any of our significant subsidiaries;&#160;and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    our filing of, or any of our significant subsidiaries&#146;
    filing of, a voluntary petition seeking liquidation,
    reorganization arrangement, readjustment of debts or for any
    other relief under the federal bankruptcy code.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For these purposes, &#147;significant subsidiary&#148; will have
    the meaning set forth in
    <FONT style="white-space: nowrap">Rule&#160;1-02(w)</FONT>
    of
    <FONT style="white-space: nowrap">Regulation&#160;S-X.</FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The indenture provides that the trustee will, within
    90&#160;days of the occurrence of a default, give to the
    registered holders of the notes notice of all uncured defaults
    known to it, but the trustee will be protected in withholding
    such notice if it, in good faith, determines that the
    withholding of such notice is in the best interest of such
    registered holders, except in the case of a default in the
    payment of the principal of, or premium, if any, or interest on,
    any of the notes when due or in the payment of any repurchase
    obligation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If an event of default specified in the sixth or seventh bullet
    above occurs and is continuing, then automatically the principal
    of all the notes and the interest thereon will become
    immediately due and payable. If an event of
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    38
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    default occurs and is continuing, other than with respect to the
    sixth or seventh bullet above, the default not having been cured
    or waived as provided under &#147;&#151;&#160;Modifications and
    Waiver&#148; below, the trustee or the holders of at least 25%
    in aggregate principal amount of the notes then outstanding may
    declare the notes due and payable at their principal amount
    together with accrued interest, and thereupon the trustee may,
    at its discretion, proceed to protect and enforce the rights of
    the holders of notes by appropriate judicial proceedings. Such
    declaration may be rescinded or annulled with the written
    consent of the holders of a majority in aggregate principal
    amount of the notes then outstanding upon the conditions
    provided in the indenture.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The indenture contains a provision entitling the trustee,
    subject to the duty of the trustee during default to act with
    the required standard of care, to receive from the holders of
    notes reasonable security or indemnity satisfactory to the
    trustee against any loss, liability or expense before proceeding
    to exercise any right or power under the indenture at the
    request of such holders. The indenture provides that the holders
    of a majority in aggregate principal amount of the notes then
    outstanding through their written consent may direct the time,
    method and place of conducting any proceeding for any remedy
    available to the trustee or exercising any trust or power
    conferred upon the trustee.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We will be required to furnish annually to the trustee a
    statement as to the fulfillment of our obligations under the
    indenture.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Consolidation,
    Mergers and Sales of Assets</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We may, without the consent of the holders of notes, consolidate
    with, merge into or sell, lease or transfer all or substantially
    all of our assets to any corporation, limited liability company,
    partnership or trust organized under the laws of the United
    States or any of its political subdivisions, provided that:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    we are the resulting or surviving corporation or the successor
    person, if other than us, is a corporation, limited liability
    company, partnership or trust that (a)&#160;is organized and
    existing under the laws of the United States or any State of the
    United States and (b)&#160;assumes all our obligations under the
    indenture and the notes;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    at the time of such transaction, no event of default, and no
    event which, after notice or lapse of time, would become an
    event of default, has happened and is continuing;&#160;and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    an officers&#146; certificate stating that the consolidation,
    merger or transfer complies with the provisions of the indenture
    is delivered to the trustee.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Modifications
    and Waiver</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Modifications and amendments to the indenture or to the terms
    and conditions of the notes may be made, and noncompliance by us
    may be waived, with the written consent of the holders of not
    less than a majority in aggregate principal amount of the notes
    at the time outstanding. However, the indenture, including the
    terms and conditions of the notes, may be modified or amended by
    us and the trustee, without the consent of the holder of any
    note, for the purposes of, among other things:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    adding to our covenants for the benefit of the holders of notes;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    surrendering any right or power conferred upon us;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    providing for conversion rights of holders of notes if any
    reclassification or change of our common stock or any
    consolidation, merger or sale of all or substantially all of our
    assets occurs;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    increasing the conversion rate, provided that the increase will
    not adversely affect the interests of holders of notes in any
    material respect;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    complying with the requirements of the SEC in order to effect or
    maintain the qualification of the indenture under the Trust
    Indenture Act of 1939;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    making any changes or modifications to the indenture necessary
    in connection with the registration of the notes under the
    Securities Act as contemplated by the registration rights
    agreement, provided that this action does not adversely affect
    the interests of the holders of the notes in any material
    respect;
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    39
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    curing any ambiguity, omission, inconsistency or correcting or
    supplementing any defective provision contained in the
    indenture; provided that such modification or amendment does not
    adversely affect the interests of the holders of the notes in
    any material respect;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    adding or modifying any other provisions which we and the
    trustee may deem necessary or desirable and which will not
    adversely affect the interests of the holders of notes in any
    material respect;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    complying with the requirements regarding merger or transfer of
    assets;&#160;or
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    providing for uncertificated notes in addition to the
    certificated notes so long as such uncertificated notes are in
    registered form for purposes of the Internal Revenue Code of
    1986.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Notwithstanding the foregoing, no modification or amendment to,
    or any waiver of, any provisions of the indenture may, without
    the written consent of the holder of each note affected:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    change the maturity of the principal of or any installment of
    interest on any note, or any payment of additional interest;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    reduce the principal amount of, or interest on, or the amount of
    additional interest on, any note;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    change the currency of payment of principal of or interest on
    any note;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    impair the right to institute suit for the enforcement of any
    payment on or with respect to, or conversion of, any note;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    except as otherwise permitted or contemplated by provisions of
    the indenture concerning corporate reorganizations, materially
    adversely affect the purchase option of holders or the
    conversion rights of holders of the notes;&#160;or
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    reduce the percentage in aggregate principal amount of notes
    outstanding necessary to modify or amend the indenture or to
    waive any past default.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Satisfaction
    and Discharge</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We may discharge our obligations under the indenture while notes
    remain outstanding, subject to certain conditions, if all
    outstanding notes become due and payable at their scheduled
    maturity within one year, and we have deposited with the trustee
    an amount sufficient to pay and discharge all outstanding notes
    on the date of their scheduled maturity. However, we will remain
    obligated to issue shares of our common stock upon conversion of
    the notes until such maturity as described under
    &#147;&#151;&#160;Conversion Rights.&#148;
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Global
    Notes; Book-Entry; Form</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The notes have been issued in the form of one or more global
    securities. The global security has been deposited with the
    trustee as custodian for DTC and registered in the name of a
    nominee of DTC. Except as set forth below, the global security
    may be transferred, in whole and not in part, only to DTC or
    another nominee of DTC. You will hold your beneficial interests
    in the global security directly through DTC if you have an
    account with DTC or indirectly through organizations that have
    accounts with DTC. Notes in definitive certificated form (called
    &#147;certificated securities&#148;) will be issued only in
    certain limited circumstances described below.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    DTC has advised us that it is:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    a limited purpose trust company organized under the laws of the
    State of New York;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    a member of the Federal Reserve System;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    a &#147;clearing corporation&#148; within the meaning of the New
    York Uniform Commercial Code;&#160;and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    a &#147;clearing agency&#148; registered pursuant to the
    provisions of Section&#160;17A of the Securities Exchange Act.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    DTC was created to hold securities of institutions that have
    accounts with DTC (called &#147;participants&#148;) and to
    facilitate the clearance and settlement of securities
    transactions among its participants in such securities through
    electronic book-entry changes in accounts of the participants,
    thereby eliminating the need for physical movement
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    40
</DIV><!-- END LOGICAL PAGE -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    of securities certificates. DTC&#146;s participants include
    securities brokers and dealers, which may include the initial
    purchasers, banks, trust companies, clearing corporations and
    certain other organizations. Access to DTC&#146;s book-entry
    system is also available to others such as banks, brokers,
    dealers and trust companies (called, the &#147;indirect
    participants&#148;) that clear through or maintain a custodial
    relationship with a participant, whether directly or indirectly.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Pursuant to procedures established by DTC upon the deposit of
    the global security with DTC, DTC credited, on its book-entry
    registration and transfer system, the principal amount of notes
    represented by such global security to the accounts of
    participants. Ownership of beneficial interests in the global
    security will be limited to participants or persons that may
    hold interests through participants. Ownership of beneficial
    interests in the global security will be shown on, and the
    transfer of those beneficial interests will be effected only
    through, records maintained by DTC (with respect to
    participants&#146; interests), the participants and the indirect
    participants. The laws of some jurisdictions may require that
    certain purchasers of securities take physical delivery of such
    securities in definitive form. These limits and laws may impair
    the ability to transfer or pledge beneficial interests in the
    global security.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Owners of beneficial interests in global securities who desire
    to convert their interests into common stock should contact
    their brokers or other participants or indirect participants
    through whom they hold such beneficial interests to obtain
    information on procedures, including proper forms and cut-off
    times, for submitting requests for conversion.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    So long as DTC, or its nominee, is the registered owner or
    holder of a global security, DTC or its nominee, as the case may
    be, will be considered the sole owner or holder of the notes
    represented by the global security for all purposes under the
    indenture and the notes. In addition, no owner of a beneficial
    interest in a global security will be able to transfer that
    interest except in accordance with the applicable procedures of
    DTC. Except as set forth below, as an owner of a beneficial
    interest in the global security, you will not be entitled to
    have the notes represented by the global security registered in
    your name, will not receive or be entitled to receive physical
    delivery of certificated securities and will not be considered
    to be the owner or holder of any notes under the global
    security. We understand that under existing industry practice,
    if an owner of a beneficial interest in the global security
    desires to take any action that DTC, as the holder of the global
    security, is entitled to take, DTC would authorize the
    participants to take such action. Additionally, in such case,
    the participants would authorize beneficial owners owning
    through such participants to take such action or would otherwise
    act upon the instructions of beneficial owners owning through
    them.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We will make payments of principal of and interest (and any
    additional interest) on the notes represented by the global
    security registered in the name of and held by DTC or its
    nominee to DTC or its nominee, as the case may be, as the
    registered owner and holder of the global security. Neither we,
    the trustee nor any paying agent will have any responsibility or
    liability for any aspect of the records relating to or payments
    made on account of beneficial interests in the global security
    or for maintaining, supervising or reviewing any records
    relating to such beneficial interests.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We expect that DTC or its nominee, upon receipt of any payment
    of principal of or interest (or additional interest) on the
    global security, will credit participants&#146; accounts with
    payments in amounts proportionate to their respective beneficial
    interests in the principal amount of the global security as
    shown on the records of DTC or its nominee. We also expect that
    payments by participants or indirect participants to owners of
    beneficial interests in the global security held through such
    participants or indirect participants will be governed by
    standing instructions and customary practices and will be the
    responsibility of such participants or indirect participants. We
    will not have any responsibility or liability for any aspect of
    the records relating to, or payments made on account of,
    beneficial interests in the global security for any note or for
    maintaining, supervising or reviewing any records relating to
    such beneficial interests or for any other aspect of the
    relationship between DTC and its participants or indirect
    participants or the relationship between such participants or
    indirect participants and the owners of beneficial interests in
    the global security owning through such participants.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Transfers between participants in DTC will be effected in the
    ordinary way in accordance with DTC rules and will be settled in
    <FONT style="white-space: nowrap">same-day</FONT>
    funds.
</DIV>

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    <BR>
    41
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    DTC has advised us that it will take any action permitted to be
    taken by a holder of notes only at the direction of one or more
    participants to whose account the DTC interests in the global
    security is credited and only in respect of such portion of the
    aggregate principal amount of notes as to which such participant
    or participants has or have given such direction. However, if
    DTC notifies us that it is unwilling to be a depositary for the
    global security or ceases to be a clearing agency or there is an
    event of default under the notes, DTC will exchange the global
    security for certificated securities which it will distribute to
    its participants and which will be legended, if required.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Although DTC is expected to follow the foregoing procedures in
    order to facilitate transfers of interests in the global
    security among participants of DTC, it is under no obligation to
    perform or continue to perform such procedures, and such
    procedures may be discontinued at any time. Neither we nor the
    trustee will have any responsibility or liability for the
    performance by DTC or the participants or indirect participants
    of their respective obligations under the rules and procedures
    governing their respective operations.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Information
    Concerning the Trustee and Transfer Agent</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    U.S.&#160;Bank National Association, as trustee under the
    indenture, has been appointed by us as paying agent, conversion
    agent, registrar and custodian with regard to the notes. The
    trustee, the transfer agent or their affiliates may from time to
    time in the future provide banking and other services to us in
    the ordinary course of their business.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Governing
    Law</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The indenture and the notes are governed by, and construed in
    accordance with, the laws of the State of New&#160;York.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Registration
    Rights</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We entered into a registration rights agreement with the initial
    purchasers of the notes. Our obligation to keep effective a
    shelf registration statement for the resale by noteholders of
    the notes or shares of common stock issued upon conversion of
    the notes expired on the second anniversary of the latest
    issuance of the notes, being July&#160;26, 2006.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    42
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->
<A name='109'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">DESCRIPTION
    OF CAPITAL STOCK</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our authorized capital stock consists of 60&#160;million shares
    of common stock, no par value per share, and 4&#160;million
    shares of preferred stock, no par value per share. As of
    December&#160;31, 2006, 19,898,902&#160;shares of our common
    stock were outstanding and 10,678,454&#160;shares were held in
    the treasury of the Company. No shares of our preferred stock
    are issued and outstanding. The following description of our
    capital stock and certain provisions of our articles of
    incorporation is a summary. The description below is qualified
    in its entirety by the provisions of our articles of
    incorporation, which have been filed as an exhibit to our
    Quarterly Report or
    <FONT style="white-space: nowrap">Form&#160;10-Q</FONT>
    for the quarter ended September&#160;30, 1998.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Common
    Stock</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The issued and outstanding shares of our common stock are
    validly issued, fully paid, and nonassessable. Holders of shares
    of our outstanding common stock are entitled to receive
    dividends if our board of directors decides to declare any
    dividends. Our common stock is neither redeemable nor
    convertible. Upon liquidation, dissolution, or winding up of
    Titan, holders of shares of our common stock are entitled to
    receive, pro rata, our assets that are legally available for
    distribution, after payment of all debts and other liabilities.
    Each outstanding share of common stock is entitled to one vote
    on all matters submitted to a vote of shareholders. Our articles
    of incorporation do not allow for cumulative voting in the
    election of directors.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Preferred
    Stock</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our articles of incorporation authorize the issuance of four
    million shares of preferred stock, no par value per share. Our
    board of directors is authorized to provide for the issuance of
    shares of preferred stock in one or more series, and to fix for
    each series voting rights, if any, designation, preferences and
    relative, participating, optional or other special rights and
    such qualifications, limitations, or restrictions as provided in
    a resolution or resolutions adopted by our board of directors.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Options</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As of December&#160;31, 2006, 248,560&#160;shares of our common
    stock were issuable upon exercise of options that were
    outstanding under our 1993 Stock Incentive Plan,
    252,000&#160;shares of our common stock were issuable upon
    exercise of options that were outstanding under our 1994
    Non-Employee Directors Stock Option Plan, and
    649,500&#160;shares of our common stock were issuable upon
    exercise of options that were outstanding under our 2005 Equity
    Incentive Plan. As of December&#160;31, 2006, an additional
    1,213,720&#160;shares were reserved for issuance under the 2005
    Equity Incentive Plan.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Special
    Meetings of Stockholders</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our by-laws provide that special meetings of our stockholders
    may be called only by our chairman of the board, our president,
    our board of directors or by the holders of not less than
    one-fifth of all the outstanding shares entitled to vote on the
    matter for which the meeting is being called or the purpose or
    purposes stated in the meeting notice.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Authorized
    But Unissued Shares</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The authorized but unissued shares of common stock and preferred
    stock are available for future issuance without stockholder
    approval. These additional shares may be utilized for a variety
    of corporate purposes, including future public offerings to
    raise additional capital, corporate acquisitions and employee
    benefit plans.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Transfer
    Agent and Registrar</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The transfer agent and registrar for our common stock is LaSalle
    Bank N.A.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Listing</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our shares of common stock are listed on the NYSE under the
    symbol &#147;TWI&#148;.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    43
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->
<A name='110'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">MATERIAL
    U.S.&#160;FEDERAL INCOME TAX CONSIDERATIONS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following is a discussion of the material U.S.&#160;federal
    income tax considerations of the conversion offer relevant to
    holders of the Convertible Notes, but does not purport to be a
    complete analysis of all the potential tax consequences. This
    discussion does not deal with all aspects of U.S.&#160;federal
    income taxation that may be relevant to holders of Convertible
    Notes in light of their personal investment circumstances, nor
    does it deal with all U.S.&#160;federal income tax
    considerations applicable to certain types of holders subject to
    special treatment under U.S.&#160;federal income tax law
    (<I>e.g</I>., financial institutions, partnerships or other
    pass-through entities, expatriates or former long-term residents
    of the United States, holders subject to the alternative minimum
    tax, individual retirement accounts or other tax-deferred
    accounts, broker-dealers, traders in securities that elect to
    use a
    <FONT style="white-space: nowrap">mark-to-market</FONT>
    method of accounting for their securities holdings, life
    insurance companies, real estate investment trusts, regulated
    investment companies, persons that hold Convertible Notes, or
    will hold shares of common stock received pursuant to the
    conversion offer, as a position in a &#147;straddle,&#148; or as
    part of a synthetic security or &#147;hedge,&#148;
    &#147;conversion transaction,&#148; &#147;constructive
    sale&#148; or other integrated investment, U.S.&#160;Holders (as
    defined below) that have a &#147;functional currency&#148; other
    than the U.S.&#160;dollar,
    <FONT style="white-space: nowrap">Non-U.S.&#160;Holders</FONT>
    (as defined below), except for the specific discussion below,
    and tax-exempt organizations).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This discussion deals only with holders that hold the
    Convertible Notes, and will hold the shares of common stock
    received pursuant to the conversion offer, as &#147;capital
    assets&#148; (generally, property held for investment). This
    discussion is based upon the Internal Revenue Code of 1986, as
    amended (the &#147;Code&#148;), Treasury regulations promulgated
    thereunder, administrative rulings and pronouncements of the
    Internal Revenue Service (the &#147;IRS&#148;), judicial
    decisions and other applicable authorities, all as in effect on
    the date hereof and all of which are subject to change (possibly
    with retroactive effect) and differing interpretations. No
    ruling from the IRS has been or will be sought on any of the
    matters discussed below, and there can be no assurance that the
    IRS will agree with the conclusions reached herein. Furthermore,
    this discussion does not address the tax consequences arising
    under the tax laws of any state, locality or foreign
    jurisdiction and does not deal with any U.S.&#160;federal laws
    other than those pertaining to income taxation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For purposes of this discussion, the term
    &#147;U.S.&#160;Holder&#148; means a beneficial owner of a
    Convertible Note that is, for U.S.&#160;federal income tax
    purposes: (i)&#160;an individual citizen or resident of the
    United States, (ii)&#160;a corporation (or other entity
    classified as a corporation for U.S.&#160;federal income tax
    purposes) created or organized in or under the laws of the
    United States, any state thereof or the District of Columbia,
    (iii)&#160;an estate, the income of which is subject to
    U.S.&#160;federal income taxation regardless of its source, or
    (iv)&#160;a trust if either (A)&#160;a court within the United
    States is able to exercise primary jurisdiction over the
    administration of such trust and one or more United States
    persons have the authority to control all substantial decisions
    of such trust or (B)&#160;such trust has a valid election in
    effect under applicable Treasury regulations to be treated as a
    United States person. As used herein, the term
    <FONT style="white-space: nowrap">&#147;Non-U.S.&#160;Holder&#148;</FONT>
    means a beneficial owner of a Convertible Note that is neither a
    U.S.&#160;Holder nor a partnership (or other entity treated as a
    partnership for U.S.&#160;federal income tax purposes).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If a partnership (or an entity that is treated as a partnership
    for U.S.&#160;federal income tax purposes) holds Convertible
    Notes, the tax treatment of its partners generally will depend
    upon the status of the partner and the activities of the
    partnership. Partnerships (and other entities that are treated
    as partnerships for U.S.&#160;federal income tax purposes) and
    persons holding Convertible Notes through such partnership (or
    other entity) are urged to consult their own tax advisors.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This discussion set forth under the heading &#147;Material U.S.
    Federal Income Tax Considerations&#148; to the extent it states
    matters of law or legal conclusions, and subject to the
    assumptions, exceptions, limitations and qualifications set
    forth herein, constitutes the opinion of special counsel, Bodman
    LLP, as to the material U.S. federal income tax consequences of
    the conversion of the Convertible Notes for shares of common
    stock pursuant to the conversion offer relevant to holders of
    the Convertible Notes. Special counsel&#146;s opinion is not
    binding upon the IRS or the courts, and thus there is no
    assurance that the IRS will not successfully assert a contrary
    position.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
     HOLDERS ARE URGED TO CONSULT WITH THEIR OWN TAX ADVISORS AS TO
    THE PARTICULAR TAX CONSEQUENCES TO THEM OF PARTICIPATING IN THE
    CONVERSION OFFER, INCLUDING THE APPLICABILITY OF ANY FEDERAL,
    STATE, LOCAL, FOREIGN OR OTHER TAX LAWS AND POSSIBLE CHANGES IN
    SUCH TAX LAWS OR INTERPRETATIONS THEREOF.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    44
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>ADVICE PURSUANT TO TREASURY CIRCULAR 230.</I>&#160;&#160;THIS
    DISCUSSION WAS NOT INTENDED OR WRITTEN TO BE USED, AND IT CANNOT
    BE USED, BY YOU FOR THE PURPOSE OF AVOIDING PENALTIES THAT MAY
    BE IMPOSED ON YOU. THIS DISCUSSION WAS WRITTEN TO SUPPORT THE
    PROMOTION OR MARKETING OF THE TRANSACTIONS ADDRESSED BY THIS
    DISCUSSION. YOU SHOULD SEEK ADVICE BASED ON YOUR PARTICULAR
    CIRCUMSTANCES FROM AN INDEPENDENT TAX ADVISOR.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">U.S.&#160;Holders</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Status of the Convertible Notes and Treatment of the
    Conversion Offer.</I>&#160;&#160;The U.S.&#160;federal income
    tax consequences of the conversion of the Convertible Notes for
    shares of common stock pursuant to the conversion offer (the
    &#147;Conversion&#148;) depends on, among other things, whether
    the surrender of Convertible Notes for shares of common stock in
    the Conversion qualifies as a &#147;recapitalization&#148; under
    Section&#160;368(a)(1)(E) of the Code and whether the
    Convertible Notes constitute &#147;securities&#148; for
    U.S.&#160;federal income tax purposes. A
    &#147;recapitalization&#148; under Section&#160;368(a)(1)(E)
    generally is a reshuffling of the capital structure of an
    existing corporation pursuant to which stock or securities of
    the corporation are exchanged for other stock or securities of
    the corporation. The term &#147;securities&#148; is not defined
    in the Code or applicable Treasury regulations and has not been
    clearly defined by court decisions. The determination of whether
    a debt instrument constitutes a &#147;security&#148; for
    U.S.&#160;federal income tax purposes is based on all the facts
    and circumstances. A significant factor in this determination is
    the term to maturity of the instrument at the time of issuance.
    In general, a bona fide debt instrument that has a term of ten
    years or more is likely to be classified as a
    &#147;security,&#148; whereas a term of less than five years is
    normally considered too short to qualify. Courts have also
    focused on various other factors including, but not limited to,
    the degree of participation and continuing interest in the
    business, the extent of proprietary interest compared with the
    similarity of the instrument to a cash payment, and the overall
    purpose of the advances to which the instrument relates.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Based on the foregoing, the Convertible Notes may constitute
    &#147;securities&#148; and the surrender of Convertible Notes
    for shares of common stock in the Conversion may be treated for
    as a &#147;recapitalization&#148; under
    Section&#160;368(a)(1)(E) of the Code. You should be aware,
    however, that there are no legal authorities directly on point
    and, as described below, alternative characterizations of the
    Conversion are possible. Thus, such conclusions are not free
    from doubt and there can be no assurance that the IRS will not
    challenge such treatment or that a court would not agree with
    the contrary position of the IRS in the event of litigation. We
    intend to treat the surrender of Convertible Notes for shares of
    common stock in the conversion as a &#147;recapitalization&#148;
    under Section&#160;368(a)(1)(E) of the Code.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Consequences of the Conversion.</I>&#160;&#160;Based on
    treatment of the surrender of the Convertible Notes for shares
    of common stock in the Conversion as a recapitalization for
    U.S.&#160;federal income tax purposes, as discussed above, a
    U.S.&#160;Holder generally should recognize no gain or loss from
    the Conversion (other than with respect to any amounts
    attributable to accrued and unpaid interest and cash received in
    lieu of a fractional share of common stock). Generally, the tax
    basis in the shares of common stock received in the Conversion
    (other than shares attributable to accrued but unpaid interest)
    should be the same as the tax basis of the Convertible Note in
    respect of which such shares were received (less the portion of
    such basis, if any, allocable to cash received in lieu of a
    fractional share of common stock), and the holding period of
    such shares should include the holding period of such
    Convertible Note. Amounts attributable to accrued but unpaid
    interest should be taxable as ordinary interest income to the
    extent not previously included in gross income, should have a
    fair market value basis and should have a holding period that
    begins following the date of the Conversion. A U.S.&#160;Holder
    generally will recognize capital gain or loss on the receipt of
    cash in lieu of a fractional share of common stock in an amount
    equal to the difference between the amount of cash received and
    the U.S.&#160;Holder&#146;s adjusted tax basis allocable to such
    fractional share.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The U.S.&#160;federal income tax consequences described in the
    preceding paragraph rely on the fact that the Conversion is not
    pursuant to a plan to periodically increase a shareholder&#146;s
    proportionate interest in our assets or earnings and profits. In
    the event the Conversion was determined to be part of such a
    plan, Section&#160;305 of the Code may apply to treat the shares
    of common stock received that are attributable to the adjustment
    in conversion rate pursuant to the conversion offer as a taxable
    stock dividend. In such event, such portion of the shares of
    common stock received generally should be taxable in full as
    dividend income and no portion of the tax basis of the
</DIV>

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    <BR>
    45
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Convertible Note in respect of which such shares were received
    generally should be allocated to such shares and the holding
    period of such shares generally should not include the holding
    period of such Convertible Note.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition, in the event the surrender of Convertible Notes for
    shares of common stock in the Conversion is determined not to
    constitute a recapitalization for U.S.&#160;federal income tax
    purposes, the Conversion could be treated as a fully taxable
    exchange of the Convertible Notes for the shares of common
    stock. Alternatively, since there is no authority directly on
    point, the Conversion could be treated as a partially taxable
    transaction, in which the Conversion is treated as a tax-free
    conversion of the Convertible Notes pursuant to their terms
    coupled with the separate taxable receipt of additional shares
    of common stock as ordinary income (<I>i.e.</I>, the shares of
    common stock received that are attributable to the adjustment in
    conversion rate pursuant to the conversion offer). Other
    characterizations are also possible. U.S.&#160;Holders are
    advised to consult their own tax advisors regarding the
    qualification of the Convertible Notes as securities and the
    surrender of the Convertible Notes for shares of common stock in
    the Conversion as a recapitalization for U.S.&#160;federal
    income tax purposes as well as the tax consequences to them of
    alternative characterizations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    U.S.&#160;Holders who acquired Convertible Notes subsequent to
    their original issuance at prices higher or lower than their
    initial issue price may be subject to special rules. For
    example, assuming the surrender of Convertible Notes for shares
    of common stock in the Conversion constitutes a recapitalization
    for U.S.&#160;federal income tax purposes, any accrued market
    discount on the Convertible Notes not previously included in
    gross income would be treated as ordinary income upon the
    subsequent disposition of the shares of common stock. Such
    U.S.&#160;Holders should consult their own tax advisors
    regarding the consequences of any market discount or premium
    with respect to their Convertible Notes.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times"><FONT style="white-space: nowrap">Non-U.S.&#160;Holders</FONT></FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Consequences of the Conversion.</I>&#160;&#160;If, as
    described above, the surrender of Convertible Notes for shares
    of common stock in the Conversion is treated as a
    &#147;recapitalization&#148; under Section&#160;368(a)(1)(E) of
    the Code for U.S.&#160;federal income tax purposes, a
    <FONT style="white-space: nowrap">Non-U.S.&#160;Holder</FONT>
    generally should not be subject to U.S.&#160;federal income or
    withholding tax in respect of the Conversion, other than with
    respect to (i)&#160;any gain in respect of cash received in lieu
    of a fractional share of common stock if (A)&#160;the
    <FONT style="white-space: nowrap">Non-U.S.&#160;Holder</FONT>
    is an individual who was present in the United States for
    183&#160;days or more during the taxable year of disposition and
    certain other conditions are met, or (B)&#160;such gain is
    effectively connected with the
    <FONT style="white-space: nowrap">Non-U.S.&#160;Holder&#146;s</FONT>
    conduct of a trade or business in the United States and, if
    certain United States income tax treaties apply, is attributable
    to a United States permanent establishment maintained by the
    <FONT style="white-space: nowrap">Non-U.S.&#160;Holder,</FONT>
    and (ii)&#160;amounts attributable to accrued but unpaid
    interest, which is addressed further below.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Certain
    <FONT style="white-space: nowrap">Non-U.S.&#160;Holders</FONT>
    may be subject to U.S.&#160;federal income or withholding tax in
    respect of the Conversion under certain circumstances if we are
    or have been a &#147;United States real property holding
    corporation&#148; for U.S.&#160;federal income tax purposes (a
    &#147;USRPHC&#148;). In general, a corporation is a USRPHC if
    the fair market value of its &#147;United States real property
    interests&#148; (as defined in the Code and applicable Treasury
    regulations) equals or exceeds 50% of the sum of the fair market
    value of its worldwide real property interests and its other
    assets used or held for use in a trade or business. We do not
    believe we are or have been a USRPHC for any relevant period.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As described above under
    &#147;&#151;&#160;U.S.&#160;Holders,&#148; there are no legal
    authorities directly addressing the U.S.&#160;federal income tax
    consequences of a transaction involving the adjustment to the
    conversion rate of a convertible debt instrument with
    substantially identical facts similar to the Conversion. Thus,
    the U.S.&#160;federal income tax consequences are not free from
    doubt and alternative characterizations exist. In the event the
    Conversion is treated as a fully taxable exchange of Convertible
    Notes for shares of common stock, a
    <FONT style="white-space: nowrap">Non-U.S.&#160;Holder</FONT>
    generally should not be subject to U.S.&#160;federal income or
    withholding tax unless (i)&#160;such
    <FONT style="white-space: nowrap">Non-U.S.&#160;Holder</FONT>
    is an individual who was present in the United States for
    183&#160;days or more during the taxable year of disposition and
    certain other conditions are met, (ii)&#160;any gain is
    effectively connected with the
    <FONT style="white-space: nowrap">Non-U.S.&#160;Holder&#146;s</FONT>
    conduct of a trade or business in the United States and, if
    certain United States income tax treaties apply, is attributable
    to a United States permanent establishment maintained by the
    <FONT style="white-space: nowrap">Non-U.S.&#160;Holder,</FONT>
    or (iii)&#160;we are or have been a USRPHC and the
    <FONT style="white-space: nowrap">Non-U.S.&#160;Holder</FONT>
    satisfies certain ownership requirements. As described in the
    discussion above relating to USRPHCs, we do not believe we are
    or have been a USRPHC for any relevant period.
</DIV>

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    <BR>
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<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Alternatively, in the event the Conversion is treated as a
    conversion of the Convertible Notes pursuant to their terms
    coupled with the separate receipt of additional shares of common
    stock, a
    <FONT style="white-space: nowrap">Non-U.S.&#160;Holder</FONT>
    generally should not be subject to U.S.&#160;federal income or
    withholding tax on the conversion but the separate receipt of
    additional shares may be subject to tax either as a dividend or
    additional ordinary income. If the Conversion is so treated, 30%
    of the fair market value of the shares of common stock payable
    to a
    <FONT style="white-space: nowrap">Non-U.S.&#160;Holder</FONT>
    that is attributable to the adjustment in conversion rate
    pursuant to the conversion offer would be subject to withholding
    and such amount or proceeds from the sale thereof paid over to
    the IRS unless an exemption from, or reduction of, withholding
    tax is applicable pursuant to an income tax treaty or because
    such amount is effectively connected with the conduct of a trade
    business by the
    <FONT style="white-space: nowrap">Non-U.S.&#160;Holder</FONT>
    in the United States. In order to claim an exemption from, or
    reduction of, such withholding tax, the
    <FONT style="white-space: nowrap">Non-U.S.&#160;Holder</FONT>
    must deliver a properly completed and duly executed IRS
    <FONT style="white-space: nowrap">Form&#160;W-8ECI</FONT>
    (or suitable successor form) with respect to amounts effectively
    connected with the conduct of a trade or business within the
    United States or IRS
    <FONT style="white-space: nowrap">Form&#160;W-8BEN</FONT>
    (or suitable successor or substitute form) with respect to an
    exemption or reduction under a treaty. Because of the
    uncertainty of this treatment, however, we  do not intend to
    withhold in the event the Non-U.S. Holder is unable to deliver a
    properly completed and duly executed IRS
    <FONT style="white-space: nowrap">Form&#160;W-8ECI</FONT>
    or IRS
    <FONT style="white-space: nowrap">Form&#160;W-8BEN.</FONT>
    <FONT style="white-space: nowrap">Non-U.S.&#160;Holders</FONT>
    should consult their own tax advisors regarding the application
    of the withholding tax rules to their particular circumstances,
    including the possibility of filing a claim for a refund of any
    tax withheld.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A
    <FONT style="white-space: nowrap">Non-U.S.&#160;Holder</FONT>
    generally should not be subject to U.S.&#160;federal income or
    withholding tax on amounts received that are attributable to
    accrued but unpaid interest, provided that, (i)&#160;such
    amounts are not effectively connected with the conduct of a
    trade or business by the
    <FONT style="white-space: nowrap">Non-U.S.&#160;Holder</FONT>
    in the United States, (ii)&#160;the
    <FONT style="white-space: nowrap">Non-U.S.&#160;Holder</FONT>
    does not actually or constructively own 10% or more of the total
    combined voting power of all classes of our stock entitled to
    vote, (iii)&#160;the
    <FONT style="white-space: nowrap">Non-U.S.&#160;Holder</FONT>
    is not a controlled foreign corporation that is related to us
    through stock ownership, (iv)&#160;the
    <FONT style="white-space: nowrap">Non-U.S.&#160;Holder</FONT>
    is not a bank whose receipt of interest on the Convertible Notes
    is described in Section&#160;881(c)(3)(A) of the Code, and
    (v)&#160;either (A)&#160;the
    <FONT style="white-space: nowrap">Non-U.S.&#160;Holder</FONT>
    provides its name and address on a properly completed and duly
    executed IRS
    <FONT style="white-space: nowrap">Form&#160;W-8BEN</FONT>
    (or suitable successor or substitute form) and certifies, under
    penalty of perjury, that it is not a United States person or
    (B)&#160;a securities clearing organization, bank or other
    financial institution holding the Convertible Notes on behalf of
    the
    <FONT style="white-space: nowrap">Non-U.S.&#160;Holder</FONT>
    certifies, under penalty of perjury, that it has received a
    properly completed and duly executed IRS
    <FONT style="white-space: nowrap">Form&#160;W-8BEN</FONT>
    (or suitable successor or substitute form) from the
    <FONT style="white-space: nowrap">Non-U.S.&#160;Holder</FONT>
    and provides a copy thereof.
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Distributions on Common Stock Received in the
    Conversion.</I>&#160;&#160;A
    <FONT style="white-space: nowrap">Non-U.S.&#160;Holder</FONT>
    generally should be subject to U.S.&#160;federal tax withholding
    at a rate of 30% with respect to any dividends paid on our
    shares of common stock unless either: (i)&#160;an applicable
    income tax treaty reduces or eliminates such tax, and the
    <FONT style="white-space: nowrap">Non-U.S.&#160;Holder</FONT>
    claims the benefit of that treaty by timely providing us with a
    properly completed and duly executed IRS
    <FONT style="white-space: nowrap">Form&#160;W-8BEN</FONT>
    (or suitable successor or substitute form) establishing
    qualification for benefits under the treaty; or (ii)&#160;the
    dividends are effectively connected with the
    <FONT style="white-space: nowrap">Non-U.S.&#160;Holder&#146;s</FONT>
    conduct of a trade or business in the United States and the
    <FONT style="white-space: nowrap">Non-U.S.&#160;Holder</FONT>
    timely provides us with an appropriate statement to that effect
    on a properly completed and duly executed IRS
    <FONT style="white-space: nowrap">Form&#160;W-8ECI</FONT>
    (or suitable successor form).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Sale, Exchange or Redemption of Common
    Stock.</I>&#160;&#160;Except as described below, any gain
    recognized by a
    <FONT style="white-space: nowrap">Non-U.S.&#160;Holder</FONT>
    on the sale, exchange or redemption of a share of common stock
    generally should not be subject to U.S.&#160;federal income or
    withholding tax unless (i)&#160;the
    <FONT style="white-space: nowrap">Non-U.S.&#160;Holder</FONT>
    is an individual who was present in the United States for
    183&#160;days or more during the taxable year of disposition and
    certain other conditions are met, (ii)&#160;such gain is
    effectively connected with the
    <FONT style="white-space: nowrap">Non-U.S.&#160;Holder&#146;s</FONT>
    conduct of a trade or business in the United States and, if
    certain United States income tax treaties apply, is attributable
    to a United States permanent establishment maintained by the
    <FONT style="white-space: nowrap">Non-U.S.&#160;Holder,</FONT>
    or (iii)&#160;we are or have been a USRPHC for U.S.&#160;federal
    income tax purposes at any time during the shorter of the
    five-year period ending on the date of disposition or the period
    that the
    <FONT style="white-space: nowrap">Non-U.S.&#160;Holder</FONT>
    held the common stock and, provided our common stock continues
    to be regularly traded on an established securities market, the
    <FONT style="white-space: nowrap">Non-U.S.&#160;Holder</FONT>
    owns, actually or constructively, more than 5% of our common
    stock during such applicable period. We do not believe that we
    are currently a USRPHC but there can be no assurance that we
    will not be a USRPHC in the future or that shares of our common
    stock will remain regularly traded on an established securities
    market. In certain circumstances, a redemption may be
    recharacterized as a dividend and subject to the rules described
    above under
    <FONT style="white-space: nowrap">&#147;&#151;&#160;Non-U.S.&#160;Holders&#160;&#151;</FONT>
    Distributions on Common Stock Received in the Conversion.&#148;
</DIV>

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    <BR>
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<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Income and Gains Effectively Connected with a United States
    Trade or Business.</I>&#160;&#160;Income and gains described
    above that are effectively connected with the
    <FONT style="white-space: nowrap">Non-U.S.&#160;Holder&#146;s</FONT>
    conduct of a trade or business in the United States generally
    should be subject to U.S.&#160;federal income tax on a net
    income basis at applicable graduated individual or corporate
    U.S.&#160;income tax rates, subject to any different treatment
    prescribed by an applicable tax treaty. In addition, a
    <FONT style="white-space: nowrap">Non-U.S.&#160;Holder</FONT>
    that is treated as a corporation for U.S.&#160;federal income
    tax purposes may be subject to the branch profits tax at a rate
    of 30% or a lower rate as may be specified by an applicable tax
    treaty in respect of a portion of its effectively connected
    earnings and profits for the taxable year.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Information
    Reporting and Backup Withholding</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Information reporting and backup withholding rules are complex
    and holders of Convertible Notes participating in the conversion
    offer are urged to consult their own tax advisors regarding the
    application of these rules to them, including their
    qualification for exemption and the procedure for obtaining such
    exemption.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>U.S.&#160;Holders.</I>&#160;&#160;In general, information
    reporting requirements should apply to payments to a
    U.S.&#160;Holder unless the U.S.&#160;Holder is an exempt
    recipient such as a corporation. Backup withholding tax
    (currently at a 28% rate) generally should also apply to such
    payments if such U.S.&#160;Holder fails to provide a taxpayer
    identification number, a certification of exempt status, or
    otherwise fails to comply with applicable backup withholding
    requirements. Backup withholding is not an additional tax. Any
    amount withheld from a payment to a U.S.&#160;Holder under the
    backup withholding rules generally should be allowed as a refund
    or credit against such U.S.&#160;Holder&#146;s U.S.&#160;federal
    income tax liability, provided that the required information is
    timely provided to the IRS.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><FONT style="white-space: nowrap">Non-U.S.&#160;Holders.</FONT></I>&#160;&#160;We
    must report annually to the IRS and to each
    <FONT style="white-space: nowrap">Non-U.S.&#160;Holder</FONT>
    the amount of interest on the Convertible Notes and dividends
    paid on the common stock to the
    <FONT style="white-space: nowrap">Non-U.S.&#160;Holder,</FONT>
    and the tax withheld therefrom, regardless of whether
    withholding was reduced or eliminated by an applicable income
    tax treaty. Copies of the information returns reporting these
    amounts may also be made available under the provisions of an
    applicable income tax treaty or agreement to the tax authorities
    in the country in which the
    <FONT style="white-space: nowrap">Non-U.S.&#160;Holder</FONT>
    is resident. A
    <FONT style="white-space: nowrap">Non-U.S.&#160;Holder</FONT>
    generally should not be subject to additional information
    reporting or to backup withholding (currently at a 28% or more
    rate) with respect to payments of interest on the Convertible
    Notes or dividends on the common stock provided the
    <FONT style="white-space: nowrap">Non-U.S.&#160;Holder</FONT>
    has furnished to the payor or broker a properly completed and
    duly executed IRS
    <FONT style="white-space: nowrap">Form&#160;W-8BEN</FONT>
    (or suitable successor or substitute form) certifying, under
    penalties of perjury, its status as a
    <FONT style="white-space: nowrap">non-United</FONT>
    States person or otherwise established an exemption.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We will report to the IRS the payment of the shares of common
    stock that are attributable to the adjustment in conversion rate
    pursuant to the conversion offer as income other than interest.
    As stated above under
    <FONT style="white-space: nowrap">&#147;&#151;&#160;Non-U.S.&#160;Holders&#160;&#151;</FONT>
    Consequences of the Conversion,&#148; 30% of this amount paid to
    <FONT style="white-space: nowrap">Non-U.S.&#160;Holders</FONT>
    may be withheld and such withheld amount or proceeds from the
    sale thereof paid over to the IRS unless an exemption or
    reduction applies.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The payment of the proceeds of the sale or other disposition the
    common stock by a
    <FONT style="white-space: nowrap">Non-U.S.&#160;Holder</FONT>
    to or through the U.S.&#160;office of any broker generally
    should be reported to the IRS and reduced by backup withholding
    at the applicable rate, unless the
    <FONT style="white-space: nowrap">Non-U.S.&#160;Holder</FONT>
    certifies its status as a
    <FONT style="white-space: nowrap">non-United</FONT>
    States person under penalties of perjury or otherwise
    establishes an exemption. The payment of the proceeds of the
    sale or other disposition of the common stock by a
    <FONT style="white-space: nowrap">Non-U.S.&#160;Holder</FONT>
    to or through a
    <FONT style="white-space: nowrap">non-U.S.&#160;office</FONT>
    of a
    <FONT style="white-space: nowrap">non-U.S.&#160;broker</FONT>
    generally should not be reduced by backup withholding or
    reported to the IRS unless the
    <FONT style="white-space: nowrap">non-U.S.&#160;broker</FONT>
    has certain enumerated connections with the United States. The
    payment of proceeds from the sale or other disposition of the
    common stock by or through a
    <FONT style="white-space: nowrap">non-U.S.&#160;office</FONT>
    of a broker that is a United States person or has certain
    enumerated connections with the United States generally should
    be reported to the IRS and may be reduced by backup withholding
    at the applicable rate, unless the
    <FONT style="white-space: nowrap">Non-U.S.&#160;Holder</FONT>
    certifies its status as a
    <FONT style="white-space: nowrap">non-United</FONT>
    States person under penalties of perjury or otherwise
    establishes an exemption or the broker has specified documentary
    evidence in its files that the holder is a
    <FONT style="white-space: nowrap">non-United</FONT>
    States person.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Backup withholding is not an additional tax. Any amount withheld
    from a payment to a
    <FONT style="white-space: nowrap">Non-U.S.&#160;Holder</FONT>
    under the backup withholding rules generally should be allowed
    as a refund or credit against such
    <FONT style="white-space: nowrap">Non-U.S.&#160;Holder&#146;s</FONT>
    U.S.&#160;federal income tax liability, provided that the
    required information is timely provided to the IRS.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    48
</DIV><!-- END LOGICAL PAGE -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->
<A name='111'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">INCORPORATION
    OF CERTAIN DOCUMENTS BY REFERENCE</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The SEC&#146;s rules allow us to &#147;incorporate by
    reference&#148; information into this conversion offer
    prospectus. This means that we can disclose important
    information to you by referring you to another document. Any
    information referred to in this way is considered part of this
    conversion offer prospectus from the date we file that document.
    Any reports filed by us with the SEC after the date of the
    initial filing of the registration statement of which this
    conversion offer prospectus forms a part and prior to the
    effectiveness of such registration statement, as well as any
    reports filed by us with the SEC after the date of this
    conversion offer prospectus and before the date that the
    offering of the securities is terminated or expires, will
    automatically update and, where applicable, supersede any
    information contained in this conversion offer prospectus or
    incorporated by reference in this conversion offer prospectus.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We incorporate by reference into this conversion offer
    prospectus the following documents filed with the SEC:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Our Annual Report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    for the year ended December&#160;31, 2005, filed on
    February&#160;24, 2006.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Our Quarterly Reports on
    <FONT style="white-space: nowrap">Form&#160;10-Q</FONT>
    for the quarter ended March&#160;31, 2006, filed on
    April&#160;27, 2006; for the quarter ended June&#160;30, 2006,
    filed on July&#160;28, 2006; and for the quarter ended
    September&#160;30, 2006, filed on October&#160;30, 2006.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Our Current Reports on
    <FONT style="white-space: nowrap">Form&#160;8-K</FONT>
    dated January&#160;23, 2006; February&#160;2, 2006;
    February&#160;23, 2006 (amending the Current Report on
    <FONT style="white-space: nowrap">Form&#160;8-K</FONT>
    dated December&#160;28, 2005); April&#160;12, 2006;
    April&#160;24, 2006; May&#160;23, 2006; June&#160;29, 2006:
    July&#160;31, 2006; August&#160;1, 2006; August&#160;2, 2006;
    August&#160;3, 2006; August&#160;10, 2006; August&#160;17, 2006;
    October&#160;13, 2006 (amended the Current Report on
    <FONT style="white-space: nowrap">Form&#160;8-K</FONT>
    dated August&#160;1, 2006); December&#160;13, 2006;
    December&#160;14, 2006; December&#160;20, 2006;
    December&#160;21, 2006; and December&#160;28, 2006 (other than
    any information contained in these reports that has been
    furnished to the SEC, which information is not incorporated by
    reference into this conversion offer prospectus).
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#160;&#160;
</TD>
    <TD align="left">
    With respect to the 8-K filed on August 10, 2006, the
    prospective financial information included in this 8-K and
    incorporated by reference into this offering document has been
    prepared by, and is the responsibility of, the Company&#146;s
    management. PricewaterhouseCoopers LLP has neither examined nor
    compiled the prospective financial information and, accordingly,
    PricewaterhouseCoopers LLP does not express an opinion or any
    other form of assurance with respect thereto. The
    PricewaterhouseCoopers LLP report included in the Company&#146;s
    Annual Report on Form 10-K and incorporated by reference in this
    offering document relates to the Company&#146;s historical
    financial information. It does not extend to the prospective
    financial information and should not be read to do so.  This
    prospective financial information was not prepared with a view
    toward compliance with published guidelines of the Securities
    and Exchange Commission or the guidelines established by the
    American Institute of Certified Public Accountants for
    preparation and presentation of prospective financial
    information.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Our Proxy Statement filed on March&#160;30, 2006.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    All documents filed by us under Sections&#160;13(a), 13(c), 14
    or 15(d) of the Exchange Act after the date of this conversion
    offer prospectus and before the termination of this offering.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We will provide without charge to each person to whom this
    conversion offer prospectus is delivered, upon his or her
    written or oral request, a copy of the filed documents referred
    to above, excluding exhibits, unless they are specifically
    incorporated by reference into those documents. You can request
    those documents from Cheri T. Holley, Vice President, Secretary
    and General Counsel, 2701 Spruce Street, Quincy, Illinois,
    <FONT style="white-space: nowrap">telephone&#160;(217)&#160;228-6011.</FONT>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>
<A name='112'>
<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">INTERESTS
    OF DIRECTORS AND OFFICERS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    To our knowledge after reasonable inquiry, none of our
    directors, executive officers or controlling persons, or any of
    their affiliates or associates, own Convertible Notes or will be
    surrendering Convertible Notes for conversion pursuant to the
    conversion offer. Neither we, nor any of our subsidiaries or
    associates nor, to our knowledge after reasonable inquiry, any
    of our directors, executive officers, or controlling persons (or
    any of their affiliates), nor any executive officer or director
    of any of our subsidiaries, has engaged in any transactions in
    the Convertible Notes during the 60&#160;days prior to the date
    hereof.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    49
</DIV><!-- END LOGICAL PAGE -->
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    There is no present or proposed material agreement, arrangement,
    understanding or relationship between us and any of our
    executive officers, directors, controlling persons or
    subsidiaries, except as set forth in:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the sections entitled &#147;Business&#148; and
    &#147;Management&#146;s Discussion and Analysis of Financial
    Condition and Results of Operations&#148; set forth in our
    Annual Report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    for the year ended December 31, 2005, filed with the SEC on
    February&#160;24, 2006, with respect to relationships between us
    and our subsidiaries;&#160;and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the section entitled &#147;Related Party Transactions&#148; set
    forth in our Proxy Statement filed with the SEC on
    March&#160;30, 2006, with respect to relationships between us
    and our executive officers, directors and controlling persons.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>
<A name='113'>
<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">DEALER
    MANAGER</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The dealer manager for the conversion offer is Merrill Lynch,
    Pierce, Fenner&#160;&#38; Smith Incorporated. As dealer manager
    for the conversion offer, Merrill Lynch will perform services
    customarily provided by investment banking firms acting as
    dealer managers of conversion offers of a like nature,
    including, but not limited to, soliciting conversions pursuant
    to the conversion offer and communicating generally regarding
    the conversion offer with brokers, dealers, commercial banks and
    trust companies and other persons, including the holders of the
    Convertible Notes. As compensation for its services, we have
    agreed to pay the dealer manager $5.00 for each $1,000 aggregate
    principal amount of Convertible Notes that is validly tendered
    for conversion pursuant to the conversion offer and not
    withdrawn.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The dealer manager and its affiliates have rendered and may in
    the future render various investment banking, lending and
    commercial banking services and other advisory services to us
    and our subsidiaries. The dealer manager has received, and may
    in the future receive, customary compensation from us and our
    subsidiaries for such services. The dealer manager has regularly
    acted as an underwriter and an initial purchaser of equity and
    debt securities issued by us in public and private offerings and
    will likely continue to do so from time to time.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The dealer manager may from time to time hold Convertible Notes,
    shares of common stock and other securities of ours in its
    proprietary accounts, and, to the extent it owns Convertible
    Notes in these accounts at the time of the conversion offer, the
    dealer manager may surrender such Convertible Notes for
    conversion pursuant to the conversion offer. During the course
    of the conversion offer, the dealer manager may trade
    Convertible Notes and shares of common stock or effect
    transactions in other securities of ours for its own account or
    for the accounts of its customers. As a result, the dealer
    manager may hold a long or short position in the Convertible
    Notes, the common stock or other of our securities.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>
<A name='114'>
<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">INFORMATION
    AGENT</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Global Bondholder Services Corporation has been appointed as the
    information agent for the conversion offer. We have agreed to
    pay the information agent reasonable and customary fees for its
    services and will reimburse the information agent for its
    reasonable
    <FONT style="white-space: nowrap">out-of-pocket</FONT>
    expenses. All requests to the information agent for assistance
    in connection with the conversion offer or for additional copies
    of this conversion offer prospectus or related materials should
    be directed to the information agent at 65 Broadway,
    Suite&#160;704, New York, New York 10006, telephone number
    <FONT style="white-space: nowrap">(212)&#160;430-3774.</FONT>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>
<A name='115'>
<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">CONVERSION
    AGENT</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Global Bondholder Services Corporation has been appointed
    conversion agent for the conversion offer. We have agreed to pay
    the conversion agent reasonable and customary fees for its
    services and will reimburse the conversion agent for its
    reasonable
    <FONT style="white-space: nowrap">out-of-pocket</FONT>
    expenses. All completed letters of transmittal should be
    directed to the conversion agent at the address set forth on the
    back cover of this conversion offer prospectus. All requests to
    the conversion agent for assistance in connection with the
    conversion offer should be directed to the conversion agent as
    set forth on the back cover of this conversion offer prospectus.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    50
</DIV><!-- END LOGICAL PAGE -->
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>
<A name='116'>
<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">FEES AND
    EXPENSES</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Fees and expenses in connection with the conversion offer are
    estimated to be approximately $700,000. We will bear the cost of
    all of fees and expenses relating to the conversion offer. We
    are making the principal solicitation by mail and overnight
    courier. However, where permitted by applicable law, additional
    solicitations may be made by facsimile, telephone, email or in
    person by the dealer manager and the information agent, as well
    as by our and our affiliates&#146; officers and regular
    employees. We will also pay the conversion agent and the
    information agent reasonable and customary fees for their
    services and will reimburse them for their reasonable
    <FONT style="white-space: nowrap">out-of-pocket</FONT>
    expenses. We will indemnify each of the conversion agent, the
    dealer manager and the information agent against certain
    liabilities and expenses in connection with the conversion
    offer, including liabilities under the federal securities laws.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>
<A name='117'>
<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">LEGAL
    MATTERS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The validity of the common stock to be issued in the conversion
    offer will be passed upon for us by Bodman LLP, Detroit,
    Michigan and Schmiedeskamp, Robertson, Neu&#160;&#38; Mitchell,
    Quincy, Illinois. Certain legal matters will be passed upon for
    the dealer manager by Shearman&#160;&#38; Sterling LLP, New
    York, New York.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>
<A name='118'>
<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">EXPERTS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The financial statements and management&#146;s assessment of the
    effectiveness of internal control over financial reporting
    (which is included in Management&#146;s Report on Internal
    Control over Financial Reporting) incorporated in this
    Prospectus by reference to the Annual Report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    for the year ended December&#160;31, 2005 have been so
    incorporated in reliance on the report of PricewaterhouseCoopers
    LLP, an independent registered public accounting firm, given on
    the authority of said firm as experts in auditing and accounting.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>
<A name='119'>
<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">MISCELLANEOUS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We are not aware of any jurisdiction in which the making of the
    conversion offer is not in compliance with applicable law. If we
    become aware of any jurisdiction in which the making of the
    conversion offer would not be in compliance with applicable law,
    we will make a good faith effort to comply with any such law.
    If, after such good faith effort, we cannot comply with any such
    law, the conversion offer will not be made to (nor will
    surrenders of Convertible Notes for conversion in connection
    with the conversion offer be accepted from or on behalf of) the
    owners of such Convertible Notes residing in such jurisdiction.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Pursuant to
    <FONT style="white-space: nowrap">Rule&#160;13e-4</FONT>
    of the General Rules and Regulations under the Exchange Act, we
    have filed with the Commission an Issuer Tender Offer Statement
    on Schedule&#160;TO which contains additional information with
    respect to the conversion offer. Such Schedule&#160;TO,
    including the exhibits and any amendments thereto, may be
    examined, and copies may be obtained, at the same places and in
    the same manner as is set forth under &#147;Where You Can Find
    More Information.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    No dealer, salesperson or other person has been authorized to
    give any information or to make any representation not contained
    in this conversion offer prospectus and, if given or made, such
    information or representation may not be relied upon as having
    been authorized by us or the dealer manager.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>
<A name='120'>
<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">WHERE YOU
    CAN FIND MORE INFORMATION</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We file annual, quarterly and current reports, proxy statements
    and other information with the Securities and Exchange
    Commission. Copies of these materials may be examined without
    charge at the SEC&#146;s public reference room at 100 F Street,
    N.E., Room&#160;1580, Washington,&#160;D.C. 20549. Please call
    the SEC at (800)&#160;SEC-0330 for further information on the
    public reference room. You may also obtain these materials from
    us at no cost by directing a written or oral request to us at
    Titan International, Inc., 2701 Spruce Street, Quincy, Illinois
    62301, Attention: Cheri T. Holley, Vice President, Secretary and
    General Counsel, or by telephone at
    <FONT style="white-space: nowrap">(217)&#160;228-6011.</FONT>
    In addition, the SEC maintains a web site, http://www.sec.gov,
    which contains reports, proxy and information statements and
    other information regarding us and other registrants that file
    electronically with the SEC.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    51
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<CENTER style="font-size: 1pt; width: 100%; border-bottom: 2pt solid #000000"></CENTER><!-- callerid=999 iwidth=455 length=0 -->

<CENTER style="font-size: 1pt; width: 100%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=455 length=0 -->

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>The conversion agent for the conversion offer is:</I>
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 16pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">GLOBAL
    BONDHOLDER SERVICES CORPORATION</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="50%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="48%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<TR valign="bottom">
<TD align="center" valign="top">
    <I><FONT style="font-size: 10pt">By Regular, Registered or
    Certified Mail;<BR>
    Hand or Overnight Delivery:</FONT></I>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    <I><FONT style="font-size: 10pt">By Facsimile Transmission<BR>
    (for Eligible Institutions Only):</FONT></I>
</TD>
</TR>
<TR valign="bottom" style="line-height: 9pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="center" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Global Bondholder Services
    Corporation<BR>
    65 Broadway, Suite&#160;723<BR>
    New York, New York 10006<BR>
    Attention: Corporate Actions
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    <FONT style="font-size: 10pt">(212) 430-3775<BR>
    Attention: Corporate Actions
    </FONT>
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>For Confirmation by Telephone</I>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="white-space: nowrap">(212)&#160;430-3774</FONT>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 7%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Any requests for additional copies of this conversion offer
    prospectus and the related materials may be directed to the
    information agent at the address and telephone number set forth
    below.
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>The information agent for the conversion offer is</I>:
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 14pt">Global Bondholder Services
    Corporation</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    65 Broadway, Suite&#160;704
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    New York, New York 10006
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Banks and Brokers, call collect:
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="white-space: nowrap">(212)&#160;430-3774</FONT>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    All Other call Toll Free:
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="white-space: nowrap">(866)&#160;470-4200</FONT>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 7%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Other requests for information relating to the conversion offer
    may be directed to the dealer manager at the address and
    telephone number set forth below.
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>The dealer manager for the conversion offer is</I>:
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 14pt">MERRILL LYNCH&#160;&#38;
    CO.</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    4 World Financial Center, 7th&#160;Floor
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    New York, New York 10080
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Attention: Liability Management Group
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="white-space: nowrap">(212)&#160;449-4914</FONT>
    (collect)
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="white-space: nowrap">(888)&#160;654-8637</FONT>
    (toll free)
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 8pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 100%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=455 length=0 -->

<CENTER style="font-size: 1pt; width: 100%; border-bottom: 2pt solid #000000"></CENTER><!-- callerid=999 iwidth=455 length=0 -->

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">PART&#160;II<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">INFORMATION
    NOT REQUIRED IN PROSPECTUS</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Item&#160;20.<I>&#160;&#160;Indemnification
    of Directors and Officers</I></FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We are incorporated under the laws of the State of Illinois.
    Section&#160;8.75 of the Illinois Business Corporation Act of
    1983, as amended (the &#147;IBCA&#148;) and Article&#160;Eleven
    of the registrant&#146;s By-Laws provide for indemnification of
    our directors and officers and certain other persons, and
    Article&#160;Five of our Articles of Incorporation provides for
    a limitation of director liability. Under Section&#160;8.75 of
    the IBCA, our directors and officers may be indemnified by us
    against all expenses incurred in connection with actions
    (including, under certain circumstances, derivative actions)
    brought against such director or officer by reason of his or her
    status as our representative, or by reason of the fact that such
    director or officer serves or served as a representative of
    another entity at our request, so long as the director or
    officer acted in good faith and in a manner he or she reasonably
    believed to be in, or not opposed to, our best interests.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As permitted under Section&#160;8.75 of the IBCA, our By-Laws
    provide that we shall indemnify directors and officers against
    all expenses incurred in connection with actions (including
    derivative actions) brought against such director or officer by
    reason of the fact that he or she is or was our director or
    officer, or by reason of the fact that such director or officer
    serves or served as an employee or agent of any entity at our
    request, unless the act or failure to act on the part of the
    director or officer giving rise to the claim for indemnification
    is determined by a court in a final, binding adjudication to
    have constituted willful misconduct or recklessness.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our Articles of Incorporation limit the liability of a director
    to us or our stockholders for monetary damages for breach of
    fiduciary duty as a director, provided, however, that the
    Articles do not eliminate or limit director liability for any
    breach of the director&#146;s duty of loyalty to us or our
    stockholders, for acts or omissions not in good faith or that
    involve intentional misconduct or a knowing violation of law,
    under Section&#160;8.65 of the IBCA (relating to unlawful
    distributions), or for any transaction from which the director
    derived an improper personal benefit.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Insurance is maintained on a regular basis against liabilities
    arising on the part of our directors and officers out of their
    performance in such capacities or arising on our part out of the
    foregoing indemnification provisions, subject to certain
    exclusions and to the policy limits.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Item&#160;21.<I>&#160;&#160;</I></FONT></B>
</TD>
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">Exhibits
    and Financial Statement Schedules</FONT></I></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;<I>Exhibits</I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=01 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=01 type=body -->
    <TD width="3%" align="left">&nbsp;</TD>	<!-- colindex=01 type=align1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="91%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Exhibit<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="3" nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Number</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Description</B>
</DIV>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    1
</TD>
<TD nowrap align="left" valign="top">
    .1**
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Form of Dealer Manager Agreement.
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    3
</TD>
<TD nowrap align="left" valign="top">
    .1
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Amended and Restated Articles of
    Incorporation of the Company (incorporated by reference to
    Exhibit&#160;3.1 to the Company&#146;s
    <FONT style="white-space: nowrap">Form&#160;10-Q</FONT>
    for the quarterly period ended September&#160;30, 1998
    <FONT style="white-space: nowrap">(No.&#160;001-12936)).</FONT>
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    3
</TD>
<TD nowrap align="left" valign="top">
    .2
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Bylaws of the Company
    (incorporated by reference to Exhibit&#160;3.2 to the
    Company&#146;s Registration Statement on
    <FONT style="white-space: nowrap">Form&#160;S-4</FONT>
    <FONT style="white-space: nowrap">(No.&#160;33-69228).</FONT>
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    4
</TD>
<TD nowrap align="left" valign="top">
    .1
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Indenture between the Company and
    U.S.&#160;Bank National Association dated July&#160;26, 2004
    (incorporated by reference to Exhibit&#160;10.4. to the
    Company&#146;s
    <FONT style="white-space: nowrap">Form&#160;10-Q</FONT>
    for the quarterly period ended June&#160;30, 2004
    <FONT style="white-space: nowrap">(No.&#160;001-12936)).</FONT>
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    5
</TD>
<TD nowrap align="left" valign="top">
    .1*
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Opinion of Bodman LLP.
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    5
</TD>
<TD nowrap align="left" valign="top">
    .2*
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Opinion of Schmeideskamp,
    Robertson, Neu&#160;&#38; Mitchell.
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    8
</TD>
<TD nowrap align="left" valign="top">
    .1**
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Tax Opinion of Bodman LLP.
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    23
</TD>
<TD nowrap align="left" valign="top">
    .1**
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Consent of PricewaterhouseCoopers
    LLP.
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    23
</TD>
<TD nowrap align="left" valign="top">
    .2*
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Consent of Bodman LLP (included in
    Exhibit&#160;5.1).
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    23
</TD>
<TD nowrap align="left" valign="top">
    .3*
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Consent of Schmeideskamp,
    Robertson, Neu&#160;&#38; Mitchell (included in
    Exhibit&#160;5.2).
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    24
</TD>
<TD nowrap align="left" valign="top">
    .1*
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Power of Attorney (included in
    signature page).
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    99
</TD>
<TD nowrap align="left" valign="top">
    .1*
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Letter of Transmittal.
    </FONT>
</TD>
</TR>
</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    II-1
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=01 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=01 type=body -->
    <TD width="3%" align="left">&nbsp;</TD>	<!-- colindex=01 type=align1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="91%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Exhibit<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="3" nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Number</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Description</B>
</DIV>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    99
</TD>
<TD nowrap align="left" valign="top">
    .2*
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Form of Letter to Brokers,
    Dealers, Commercial Banks, Trust Companies and Other Nominees.
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    99
</TD>
<TD nowrap align="left" valign="top">
    .3*
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Form of Letter to Clients.
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    99
</TD>
<TD nowrap align="left" valign="top">
    .4*
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt"><FONT style="white-space: nowrap">Form&#160;W-9</FONT>
    and Instructions thereto.
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    99
</TD>
<TD nowrap align="left" valign="top">
    .5*
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Form of Conversion Agent and
    Information Agent Agreement, by and between Global Bondholder
    Services Corporation and Titan International, Inc.
    </FONT>
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=60 -->

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    * </TD>
    <TD></TD>
    <TD valign="bottom">
    Previously filed.</TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    ** </TD>
    <TD></TD>
    <TD valign="bottom">
    Filed herewith.</TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Item&#160;22.<I>&#160;&#160;</I></FONT></B>
</TD>
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">Undertakings</FONT></I></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The undersigned Registrant hereby undertakes:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (1)&#160;To file, during any period in which offers or sales are
    being made, a post-effective amendment to this registration
    statement:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;To include any prospectus required by
    Section&#160;10(a)(3) of the Securities Act of 1933 (the
    &#147;Securities Act&#148;);
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (ii)&#160;To reflect in the prospectus any facts or events
    arising after the effective date of the registration statement
    (or the most recent post-effective amendment thereof) which,
    individually or in the aggregate, represent a fundamental change
    in the information set forth in the registration statement.
    Notwithstanding the foregoing, any increase or decrease in the
    volume of securities offered (if the total dollar value of
    securities offered would not exceed that which was registered)
    and any deviation from the low or high end of the estimated
    maximum offering range may be reflected in the form of
    prospectus filed with the Commission pursuant to
    Rule&#160;424(b) if, in the aggregate, the changes in volume and
    price represent no more than a 20% change in the maximum
    aggregate offering price set forth in the &#147;Calculation of
    Registration Fee&#148; table in the effective registration
    statement;&#160;and
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (iii)&#160;To include any material information with respect to
    the plan of distribution not previously disclosed in the
    registration statement or any material change to such
    information in the registration statement;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (2)&#160;That, for the purpose of determining any liability
    under the Securities Act of 1933, each such post-effective
    amendment shall be deemed to be a new registration statement
    relating to the securities offered therein, and the offering of
    such securities at that time shall be deemed to be the initial
    bona fide offering thereof.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (3)&#160;To remove from registration by means of a
    post-effective amendment any of the securities being registered
    which remain unsold at the termination of the offering.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (4)&#160;That, for purposes of determining any liability under
    the Securities Act of 1933, each filing of the Registrant&#146;s
    annual report pursuant to Section&#160;13(a) or
    Section&#160;15(d) of the Securities Exchange Act of 1934 (and,
    where applicable, each filing of an employee benefit plan&#146;s
    annual report pursuant to Section&#160;15(d) of the Securities
    Exchange Act of 1934)&#160;that is incorporated by reference in
    this registration statement shall be deemed to be a new
    registration statement relating to the securities offered
    therein, and the offering of such securities at that time shall
    be deemed to be the initial bona fide offering thereof.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (5)&#160;Insofar as indemnification for liabilities under the
    Securities Act may be permitted to directors, officers and
    controlling persons of the Registrant pursuant to the provisions
    described in Item&#160;20 above, or otherwise, the Registrant
    has been advised that in the opinion of the Securities and
    Exchange Commission such indemnification is against public
    policy as expressed in the Securities Act and is, therefore,
    unenforceable. In the event that a claim of indemnification
    against such liabilities (other than the payment by the
    Registrant of expenses incurred or paid by a director, officer
    or controlling person of the Registrant in a successful defense
    of any action, suit or proceeding) is asserted by such director,
    officer or controlling person in connection with the
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    II-2
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    securities being registered, the Registrant will, unless in the
    opinion of its counsel the matter has been settled by
    controlling precedent, submit to a court of appropriate
    jurisdiction the question of whether such indemnification by it
    is against public policy as expressed in the Securities Act and
    will be governed by the final adjudication of such issue.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (6)&#160;To respond to requests for information that is
    incorporated by reference into the conversion offer prospectus
    pursuant to Items&#160;4, 10(b),&#160;11, or 13 of this Form,
    within one business day of receipt of such request, and to send
    the incorporated documents by first class mail or other equally
    prompt means. This includes information contained in documents
    filed subsequent to the effective date of the registration
    statement through the date of responding to the request.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (7)&#160;To supply by means of a post-effective amendment all
    information concerning a transaction that was not the subject of
    and included in the registration statement when it became
    effective.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    II-3
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">SIGNATURES</FONT></B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Pursuant to the requirements of the Securities Act of 1933, the
    Registrant has duly caused this Registration Statement to be
    signed on its behalf by the undersigned, thereunto duly
    authorized, in the City of Quincy, State of Illinois, on
    February&#160;16, 2007.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 24pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 49%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-variant: SMALL-CAPS">Titan International, Inc.
    </FONT>
</DIV>

<DIV align="left" style="margin-left: 49%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (Registrant)
</DIV>

<DIV style="margin-top: 48pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="49%"></TD>
    <TD width="4%"></TD>
    <TD width="47%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    By:&#160;
</TD>
    <TD align="left">
    <DIV style="display:inline; text-align:left;">/s/&#160;&#160;<FONT style="font-variant: SMALL-CAPS">CHERI
    T. HOLLEY</FONT></DIV>
</TD>
</TR>

</TABLE>

<DIV style="font-size: 2pt; margin-left: 53%; width: 100%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=0 -->

<DIV align="left" style="margin-left: 53%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Name:&#160;Cheri T. Holley
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="53%"></TD>
    <TD width="8%"></TD>
    <TD width="39%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    Title:&#160;
</TD>
    <TD align="left">
    Vice President, Secretary, and
</TD>
</TR>

</TABLE>

<DIV align="left" style="margin-left: 61%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    General Counsel
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">POWER OF
    ATTORNEY</FONT></B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Pursuant to the requirements of the Securities Act of 1933, this
    Registration Statement has been signed below by the following
    persons in the capacities and on the dates indicated.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="6%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="38%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="33%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="16%">&nbsp;</TD>	<!-- colindex=04 type=maindata -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="3" nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Signature</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Title</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Date</B>
</DIV>
</TD>
</TR>
<TR style="line-height: 12pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" valign="top">
    <DIV style="display:inline; text-align:center; width:90%"><FONT style="font-size: 10pt; font-variant: SMALL-CAPS">*</FONT></DIV><FONT style="font-size: 10pt"><BR>
    <DIV style="font-size: 2pt; margin-left: 0%; width: 100%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=201 iwidth=198 length=0 -->Maurice
    M. Taylor Jr.
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    <FONT style="font-size: 10pt">Chief Executive Officer and
    Chairman (Principal Executive Officer)
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <FONT style="font-size: 10pt">February&#160;16, 2007
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="line-height: 12pt">
<TD colspan="3">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" valign="top">
    <DIV style="display:inline; text-align:center; width:90%"><FONT style="font-size: 10pt; font-variant: SMALL-CAPS">*</FONT></DIV><FONT style="font-size: 10pt"><BR>
    <DIV style="font-size: 2pt; margin-left: 0%; width: 100%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=201 iwidth=198 length=0 -->Kent
    W. Hackamack
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    <FONT style="font-size: 10pt">Vice President of Finance and
    Treasurer (Principal Financial Officer and Principal Accounting
    Officer)
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <FONT style="font-size: 10pt">February&#160;16, 2007
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="line-height: 12pt">
<TD colspan="3">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" valign="top">
    <DIV style="display:inline; text-align:center; width:90%"><FONT style="font-size: 10pt">/s/&#160;&#160;<FONT style="font-variant: SMALL-CAPS">CHERI
    T. HOLLEY</FONT></FONT></DIV><FONT style="font-size: 10pt"><BR>
    <DIV style="font-size: 2pt; margin-left: 0%; width: 100%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=201 iwidth=198 length=0 -->Cheri
    T. Holley
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    <FONT style="font-size: 10pt">Vice President, Secretary, and<BR>
    General Counsel
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <FONT style="font-size: 10pt">February&#160;16, 2007
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="line-height: 12pt">
<TD colspan="3">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" valign="top">
    <DIV style="display:inline; text-align:center; width:90%"><FONT style="font-size: 10pt; font-variant: SMALL-CAPS">*</FONT></DIV><FONT style="font-size: 10pt"><BR>
    <DIV style="font-size: 2pt; margin-left: 0%; width: 100%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=201 iwidth=198 length=0 -->Erwin
    H. Billig
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <FONT style="font-size: 10pt">Director
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <FONT style="font-size: 10pt">February&#160;16, 2007
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="line-height: 12pt">
<TD colspan="3">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" valign="top">
    <DIV style="display:inline; text-align:center; width:90%"><FONT style="font-size: 10pt; font-variant: SMALL-CAPS">*</FONT></DIV><FONT style="font-size: 10pt"><BR>
    <DIV style="font-size: 2pt; margin-left: 0%; width: 100%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=201 iwidth=198 length=0 -->Edward
    J. Campbell
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <FONT style="font-size: 10pt">Director
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <FONT style="font-size: 10pt">February&#160;16, 2007
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="line-height: 12pt">
<TD colspan="3">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" valign="top">
    <DIV style="display:inline; text-align:center; width:90%"><FONT style="font-size: 10pt; font-variant: SMALL-CAPS">*</FONT></DIV><FONT style="font-size: 10pt"><BR>
    <DIV style="font-size: 2pt; margin-left: 0%; width: 100%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=201 iwidth=198 length=0 -->Richard
    M. Cashin Jr.
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <FONT style="font-size: 10pt">Director
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <FONT style="font-size: 10pt">February&#160;16, 2007
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="line-height: 12pt">
<TD colspan="3">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" valign="top">
    <DIV style="display:inline; text-align:center; width:90%"><FONT style="font-size: 10pt; font-variant: SMALL-CAPS">*</FONT></DIV><FONT style="font-size: 10pt"><BR>
    <DIV style="font-size: 2pt; margin-left: 0%; width: 100%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=201 iwidth=198 length=0 -->Albert
    J. Febbo
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <FONT style="font-size: 10pt">Director
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <FONT style="font-size: 10pt">February&#160;16, 2007
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="line-height: 12pt">
<TD colspan="3">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" valign="top">
    <DIV style="display:inline; text-align:center; width:90%"><FONT style="font-size: 10pt; font-variant: SMALL-CAPS">*</FONT></DIV><FONT style="font-size: 10pt"><BR>
    <DIV style="font-size: 2pt; margin-left: 0%; width: 100%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=201 iwidth=198 length=0 -->Mitchell
    I. Quain
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <FONT style="font-size: 10pt">Director
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    <FONT style="font-size: 10pt">February&#160;16, 2007
    </FONT>
</TD>
</TR>
</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    II-4
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left"><FONT size="1">

</FONT></DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="6%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="38%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="33%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="16%">&nbsp;</TD>	<!-- colindex=04 type=maindata -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="3" nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Signature</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Title</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Date</B>
</DIV>
</TD>
</TR>
<TR style="line-height: 12pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD colspan="3" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <DIV style="display:inline; text-align:center; width:90%"><FONT style="font-size: 10pt; font-variant: SMALL-CAPS">*</FONT></DIV><FONT style="font-size: 10pt"><BR>
    <DIV style="font-size: 2pt; margin-left: 0%; width: 100%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=201 iwidth=198 length=0 -->Anthony
    L. Soave
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <FONT style="font-size: 10pt">Director
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <FONT style="font-size: 10pt">February&#160;16, 2007
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="line-height: 12pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="center" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">*By:
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <DIV style="display:inline; text-align:center; width:90%"><FONT style="font-size: 10pt">/s/&#160;&#160;<FONT style="font-variant: SMALL-CAPS">CHERI
    T. HOLLEY</FONT></FONT></DIV><FONT style="font-size: 10pt"><BR>
    <DIV style="font-size: 2pt; margin-left: 0%; width: 100%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=208 iwidth=174 length=0 -->Cheri
    T. Holley<BR>
    Attorney-in-fact
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    II-5
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">EXHIBIT
    INDEX</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=01 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=01 type=body -->
    <TD width="3%" align="left">&nbsp;</TD>	<!-- colindex=01 type=align1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="91%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Exhibit<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="3" nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Number</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Description</B>
</DIV>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    1
</TD>
<TD nowrap align="left" valign="top">
    .1**
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Form of Dealer Manager Agreement.
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    3
</TD>
<TD nowrap align="left" valign="top">
    .1
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Amended and Restated Articles of
    Incorporation of the Company (incorporated by reference to
    Exhibit&#160;3.1 to the Company&#146;s
    <FONT style="white-space: nowrap">Form&#160;10-Q</FONT>
    for the quarterly period ended September&#160;30, 1998
    <FONT style="white-space: nowrap">(No.&#160;001-12936)).</FONT>
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    3
</TD>
<TD nowrap align="left" valign="top">
    .2
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Bylaws of the Company
    (incorporated by reference to Exhibit&#160;3.2 to the
    Company&#146;s Registration Statement on
    <FONT style="white-space: nowrap">Form&#160;S-4</FONT>
    <FONT style="white-space: nowrap">(No.&#160;33-69228).</FONT>
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    4
</TD>
<TD nowrap align="left" valign="top">
    .1
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Indenture between the Company and
    U.S.&#160;Bank National Association dated July&#160;26, 2004
    (incorporated by reference to Exhibit&#160;10.4. to the
    Company&#146;s
    <FONT style="white-space: nowrap">Form&#160;10-Q</FONT>
    for the quarterly period ended June&#160;30, 2004
    <FONT style="white-space: nowrap">(No.&#160;001-12936)).</FONT>
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    5
</TD>
<TD nowrap align="left" valign="top">
    .1*
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Opinion of Bodman LLP.
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    5
</TD>
<TD nowrap align="left" valign="top">
    .2*
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Opinion of Schmeideskamp,
    Robertson, Neu&#160;&#38; Mitchell.
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    8
</TD>
<TD nowrap align="left" valign="top">
    .1**
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Tax Opinion of Bodman LLP.
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    23
</TD>
<TD nowrap align="left" valign="top">
    .1**
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Consent of PricewaterhouseCoopers
    LLP.
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    23
</TD>
<TD nowrap align="left" valign="top">
    .2*
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Consent of Bodman LLP (included in
    Exhibit&#160;5.1).
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    23
</TD>
<TD nowrap align="left" valign="top">
    .3*
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Consent of Schmeideskamp,
    Robertson, Neu&#160;&#38; Mitchell (included in
    Exhibit&#160;5.2).
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    24
</TD>
<TD nowrap align="left" valign="top">
    .1*
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Power of Attorney (included in
    signature page).
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    99
</TD>
<TD nowrap align="left" valign="top">
    .1*
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Letter of Transmittal.
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    99
</TD>
<TD nowrap align="left" valign="top">
    .2*
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Form of Letter to Brokers,
    Dealers, Commercial Banks, Trust Companies and Other Nominees.
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    99
</TD>
<TD nowrap align="left" valign="top">
    .3*
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Form of Letter to Clients.
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    99
</TD>
<TD nowrap align="left" valign="top">
    .4*
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt"><FONT style="white-space: nowrap">Form&#160;W-9</FONT>
    and Instructions thereto.
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    99
</TD>
<TD nowrap align="left" valign="top">
    .5*
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Form of Conversion Agent and
    Information Agent Agreement, by and between Global Bondholder
    Services Corporation and Titan International, Inc.
    </FONT>
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=60 -->

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    * </TD>
    <TD></TD>
    <TD valign="bottom">
    Previously filed.</TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
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<DOCUMENT>
<TYPE>EX-1.1
<SEQUENCE>2
<FILENAME>k11509aexv1w1.htm
<DESCRIPTION>FORM OF DEALER MANAGER AGREEMENT
<TEXT>
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<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Exhibit&nbsp;1.1</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>FORM OF DEALER MANAGER AGREEMENT</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>TITAN INTERNATIONAL, INC.</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>DEALER MANAGER AGREEMENT</B>

</DIV>

<DIV align="right" style="font-size: 10pt; margin-top: 12pt">February &#091;<B>&#149;</B>&#093;, 2007
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">MERRILL LYNCH &#038; CO.<BR>
MERRILL LYNCH, PIERCE, FENNER &#038; SMITH<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;INCORPORATED

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Merrill Lynch &#038; Co.<BR>
Merrill Lynch, Pierce, Fenner &#038; Smith<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Incorporated<BR>
4 World Financial Center<BR>
New York, New York 10080

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Ladies and Gentlemen:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;<I>General</I>. Titan International, Inc., an Illinois corporation (the &#147;<B>Company</B>&#148;), plans to make
an offer (the &#147;<B>Offer</B>&#148;) to increase the conversion rate to holders of any and all of up to
$81,200,000 aggregate principal amount of the Company&#146;s outstanding 5.25% Senior Convertible Notes
due 2009 (the &#147;<B>Securities</B>&#148;) who elect to convert their Securities to shares of the Company&#146;s common
stock (&#147;<B>Company Shares</B>&#148;) in accordance with the terms of the Securities and upon the terms and
subject to the conditions set forth in the Preliminary Prospectus dated the date hereof and
included in the Registration Statement (as defined below) (and as amended or supplemented from time
to time prior to effectiveness of the Registration Statement, the &#147;<B>Preliminary Prospectus</B>&#148;), and
the related Letter of Transmittal (the &#147;<B>Letter of Transmittal</B>&#148;) dated the date hereof and filed as
Exhibit&nbsp;99.1 to the Registration Statement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following materials to be used by the Company in connection with the Offer, as any of them
may be amended, modified or supplemented from time to time, are collectively referred to herein as
the &#147;<B>Offer Material</B>&#148;:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;The Company&#146;s Registration Statement on Form S-4 filed with the Securities and Exchange
Commission (the &#147;<B>Commission</B>&#148;) on January&nbsp;19,
2007, as amended on February &#091;16&#093;, 2007, in
accordance with the Securities Act of 1933, as amended, and the rules and regulations of the
Commission thereunder (collectively, the &#147;<B>1933 Act</B>&#148;), relating to the Offer and the issuance of the
Company Shares in connection therewith. As used in this agreement (the &#147;<B>Dealer</B>
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Manager Agreement</B>&#148; or this &#147;<B>Agreement</B>&#148;), the term &#147;<B>Registration Statement</B>&#148; means such
registration statement, including all exhibits, financial statements, schedules or other
information included or incorporated by reference therein, when it becomes effective under the 1933
Act, and as amended or supplemented from time to time.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The Company&#146;s Prospectus relating to the Offer and the Company Shares to be issued in
connection therewith. As used in this Agreement, the term &#147;<B>Prospectus</B>&#148; means (i)&nbsp;any prospectus, as
amended or supplemented on or prior to the Acceptance Date (as defined below) (including, but not
limited to, the Preliminary Prospectus) that the Company uses, prepares, files, distributes or
approves in writing which is used to solicit tenders of Securities in the Offer, or (ii)&nbsp;after the
effectiveness of the Registration Statement, the prospectus, if any, filed with the Commission
pursuant to Rule 424(b) under the 1933 Act, in the form it was first filed, <I>provided </I>that such
prospectus was used to solicit tenders of Securities in the Offer on or prior to the Acceptance
Date. All references in this Agreement to financial statements and schedules and other information
which is &#147;contained&#148;, &#147;included&#148; or &#147;stated&#148; in the Registration Statement, any preliminary
prospectus or the Prospectus (or other references of like import) shall be deemed to mean and
include all such financial statements and schedules and other information which is incorporated, or
deemed to be incorporated, by reference in the Registration Statement, any preliminary prospectus
or the Prospectus, as the case may be. Any reference herein to the Registration Statement or the
Prospectus shall be deemed to refer to and include any documents, financial statements and
schedules incorporated, or deemed to be incorporated, by reference therein pursuant to Form S-4
under the 1933 Act, as of the effective date of the Registration Statement or the date of the
Prospectus, as the case may be, and any reference to any amendment or supplement to the
Registration Statement or the Prospectus shall be deemed to refer to and include any documents,
financial statements and schedules filed after such date under the Securities Exchange Act of 1934,
as amended, and the rules and regulations of the Commission thereunder (collectively, the &#147;<B>1934
Act</B>&#148;) and so incorporated, or deemed to be incorporated, by reference (such incorporated documents,
financial statements and schedules being herein called the &#147;<B>Incorporated Documents</B>&#148;). For purposes
of this Agreement, all references to the Registration Statement, any preliminary prospectus, the
Prospectus or any amendment or supplement to any of the foregoing shall be deemed to include the
copy filed with the Commission pursuant to its Electronic Data Gathering, Analysis and Retrieval
system (&#147;<B>EDGAR</B>&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;The Tender Offer Statement on Schedule&nbsp;TO (the &#147;<B>Schedule&nbsp;TO</B>&#148;) filed or to be filed by the
Company with the Commission pursuant to Rule&nbsp;13e-4 under the 1934 Act and all amendments to the
Schedule&nbsp;TO (each an &#147;<B>amendment</B>&#148; and, collectively, the &#147;<B>Amendments</B>&#148;) and the Letter of
Transmittal.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;The Guidelines for Certification of Taxpayer Identification Number on Substitute Form W-9
relating to the Offer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;The form of letter to Registered Holders and The Depository Trust Company Participants
relating to the Offer, and the form of letter to Clients of Registered Holders and The Depository
Trust Company Participants relating to the Offer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;The Letter of Transmittal.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;Any other documents or materials whatsoever (including newspaper announcements and press
releases) relating to the Offer that are distributed or made available to the public or the holders
of the Securities by or at the direction of the Company in connection with the Offer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;<I>Engagement as Dealer Manager</I>. (a)&nbsp;The Company hereby retains Merrill Lynch &#038; Co. and
Merrill Lynch, Pierce, Fenner &#038; Smith Incorporated to act as the exclusive dealer manager with
respect to the Offer (the &#147;<B>Dealer Manager</B>&#148;). On the basis of the representations and warranties and
agreements of the Company herein contained and subject to and in accordance with the terms and
conditions hereof and of the Offer Material, you hereby agree to act as Dealer Manager in
connection with the Offer and in connection therewith, you shall act in accordance with your
customary practices and shall perform those services in connection with the Offer that are
customarily performed by investment banking firms in connection with acting as a dealer manager of
transactions of a like nature, including, but not limited to, soliciting conversions pursuant to
the Offer and communicating generally regarding the Offer with brokers, dealers, commercial banks
and trust companies and other persons, including the holders of the Securities. The Dealer Manager
shall have no obligation to cause copies of the Offer Material to be transmitted generally to the
holders of the Securities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The Company acknowledges and agrees that the Dealer Manager has been retained hereunder to
act solely as a Dealer Manager. In such capacity, the Dealer Manager shall act hereunder as an
independent contractor and shall not be deemed the agent or fiduciary of the Company or any of its
affiliates, equity holders or creditors or of any other person, and any of the duties of the Dealer
Manager arising out of the Dealer Manager&#146;s engagement pursuant to this Agreement shall be owed
solely to the Company. The Dealer Manager shall not be liable to the Company, its affiliates,
equity holders or creditors or to any other person for any act or omission on the part of, and
shall not be deemed to be the agent or fiduciary of, any broker or dealer, commercial bank or trust
company and no such broker or dealer, commercial bank or trust company shall be deemed to be acting
as the agent or fiduciary of the Dealer Manager (including, without limitation, for purposes of
Section&nbsp;10 of this Agreement). Nothing contained in this Agreement shall constitute the Dealer
Manager a partner of or joint venturer with the Company.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;<I>Solicitation Material, Withdrawal</I>. The Company agrees to furnish you with as many copies as
you may reasonably request of any Offer Material, and hereby authorizes you to use the Offer
Material in connection with the Offer. The Company agrees that, within a reasonable time prior to
using any Offer Material, it will submit copies of such material to you and your counsel and will
not use or publish any such material to which you reasonably object. The Company agrees that the
Offer Material has been or will be prepared and approved by, and are the sole responsibility of,
the Company. The Company shall inform you promptly after it receives notice or becomes aware of the
happening of any event, or the discovery of any fact, that would require the making of any change
in any Offer Material then being used or that would affect the accuracy or completeness of any
representation or warranty contained in this Agreement if such representation or warranty were
being made immediately after the happening of such event or the discovery of such fact.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the event that (i)&nbsp;the Company uses or permits the use of any Offer Material (other than
material previously filed with the Commission or material to be filed with the Commission which is
unrelated to the Offer) (a)&nbsp;that has not been submitted to you and your counsel for comment or (b)
that has been so submitted and with respect to which you or your counsel have made comments, but
which comments have not resulted in a response reasonably satisfactory to you to reflect such
comments, (ii)&nbsp;the Company shall have breached any of its representations, warranties, agreements,
obligations or covenants contained herein, (iii)&nbsp;there shall have occurred any material adverse
change, or any development or event involving a material adverse change, in the financial
condition, results of operations, business or prospects of the Company and its subsidiaries, taken
as a whole, whether or not arising in the ordinary course of business (a &#147;<B>Material Adverse
Change</B>&#148;), that, in your judgment, makes it impracticable or inadvisable to carry out the Offer, the
conversion of Securities pursuant thereto or the performance of this Agreement, (iv)&nbsp;the Offer is
terminated or withdrawn for any reason or (v)&nbsp;any stop order, restraining order, injunction or
denial of an application for approval has been issued in connection with the Offer and not
thereafter stayed or vacated or any proceeding, litigation or investigation in connection with the
Offer has been initiated, that, in either case in your judgment, makes it impracticable or
inadvisable to carry out the Offer, the conversion of Securities pursuant thereto or the
performance of this Agreement, then in any such case you shall be entitled to withdraw as Dealer
Manager, by providing written notice of such withdrawal to the Company, without any liability or
penalty to you or any other Indemnified Party (as defined in Section&nbsp;10) and without loss of any
right to the payment of all expenses payable in accordance with Section&nbsp;5 hereunder which have been
incurred by you to the date of such withdrawal. If you withdraw as Dealer Manager in accordance
with the foregoing provision, the reimbursement for your expenses through the date of such
withdrawal shall be paid to you promptly after such date. However, the compensation specified in
Section&nbsp;4 hereunder shall only be paid to you if the Offer is completed. Notwithstanding anything
contained in this Agreement to the
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">contrary, the Company may, in its discretion, carry out the Offer after your withdrawal as
Dealer Manager, <I>provided </I>that the Company (y)&nbsp;amends or supplements the Offer Material to disclose
that you have withdrawn as Dealer Manager and (z)&nbsp;utilizes a means reasonably calculated to reach
holders of the Securities to inform them of such withdrawal.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;<I>Compensation</I>. The Company agrees that it will pay all of the compensation due to the Dealer
Manager for its services as Dealer Manager hereunder and agrees that such compensation will be as
set forth in Schedule&nbsp;I hereto and that such compensation will be paid in cash immediately upon the
completion of the Offer. Such compensation shall be paid to you if and only if the Offer is
completed.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;<I>Expenses</I>. The Company agrees that it will pay all of the following expenses related to the
Offer: (i)&nbsp;all fees and expenses relating to the preparation, printing, mailing and publishing of
the Offer Material, including the cost of preparation and filing of the Registration Statement and
any amendment thereto and Schedule&nbsp;TO and any Amendments thereto, and the cost of furnishing copies
thereof to the Dealer Manager, (ii)&nbsp;all fees and expenses of the Company&#146;s counsel and accountants
and of the Conversion Agent and Information Agent (each as defined in Section&nbsp;6), (iii)&nbsp;all
advertising charges, subject to approval by the Company, provided that such approval shall not be
unreasonably withheld), (iv)&nbsp;all fees and expenses of any depositary, transfer agent, conversion
agent or other person rendering services in connection with the Offer, (v)&nbsp;mailing and handling
expenses incurred by brokers and dealers (including you), commercial banks, trust companies and
other nominees in forwarding the Offer Material to their customers, (vi)&nbsp;the cost of the
preparation, issuance and delivery of the Company Shares issued upon conversion of Securities,
including any and all transfer and other taxes payable thereon, except as otherwise stated in the
Letter of Transmittal, (vii)&nbsp;all expenses in connection with the qualification of the Company
Shares for offer and delivery, (viii)&nbsp;all costs and expenses incident to the additional listing of
the Company Shares on the New York Stock Exchange, (ix)&nbsp;all fees and expenses of Shearman &#038;
Sterling LLP as counsel to the Dealer Manager and (x)&nbsp;all other costs and expenses incident to the
performance of the obligations of the Company hereunder for which provision is not otherwise made
in this Section&nbsp;5. All payments to be made by the Company pursuant to this Section&nbsp;5 shall be made
promptly after the expiration or termination of the Offer or withdrawal by you from acting as
Dealer Manager in accordance with Section&nbsp;3 or, if later, promptly after the related fees or
expenses accrue and are invoiced. The Company shall perform its obligations set forth in this
Section&nbsp;5 whether or not the Offer is commenced or the Company acquires any Securities pursuant to
the Offer or otherwise. However, the compensation specified in Section&nbsp;4 hereunder shall only be
paid to you if the Offer is completed.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;<I>Conversion Agent and Information Agent</I>. (a)&nbsp;The Company will arrange for Global Bondholder
Services, to serve as conversion agent (the
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;<B>Conversion Agent</B>&#148;) in connection with the Offer and, as such, to advise you at least daily as
to such matters relating to the Offer as you may request. The Company shall provide you or cause
The Depository Trust Company (&#147;<B>DTC</B>&#148;) to provide you with copies of the records or other lists
showing the names and addresses of, and number of Securities held by, the holders of Securities as
of a recent date and shall, from and after such date, use its commercially reasonable efforts to
cause you to be advised from day to day during the pendency of the Offer of all transfers of
Securities, such notification consisting of the name and address of the transferor and transferee
of any Securities and the date of such transfer. The Company will arrange for Global Bondholder
Services to serve as information agent (&#147;<B>Information Agent</B>&#148;) in connection with the Offer and, as
such, to advise you as to such matters relating to the Offer as you may reasonably request and to
furnish you with any written reports concerning any such information as you may reasonably request.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The Company authorizes you to communicate with the Conversion Agent, the Information Agent
and with DTC in its capacity as depositary, with respect to matters relating to the Offer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.&nbsp;<I>Representations, Warranties and Certain Agreements of the Company</I>. The Company represents
and warrants to the Dealer Manager, and agrees with the Dealer Manager, as of the date hereof, as
of the date of commencement of the Offer pursuant to Section 13(e) of the 1934 Act (if different
from the date hereof) (the &#147;<B>Commencement Date</B>&#148;) and as of the date on which the Securities are
accepted by the Company pursuant to the Offer (the &#147;<B>Acceptance Date</B>&#148;) (unless another date is
specifically referenced in which case the representation and warranty shall speak as of such date):
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;<U>Compliance with Registration Requirements</U>. The Company meets the requirements for
use of Form S-4 under the 1933 Act and, on or prior to the Commencement Date, has filed with the
Commission the Registration Statement and paid the applicable filing fees. As of the Acceptance
Date, the Registration Statement and any post-effective amendment thereto have become effective
under the 1933 Act and no stop order suspending the effectiveness of the Registration Statement and
any post-effective amendment thereto has been issued under the 1933 Act and no proceedings for that
purpose have been instituted or are pending or, to the knowledge of the Company, are contemplated
by the Commission, and any request on the part of the Commission for additional information has
been complied with.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At the respective times the Registration Statement and any post-effective amendments thereto
become effective and at the Acceptance Date, the Registration Statement and any amendments thereto
will comply in all material respects with the requirements of the 1933 Act and will not contain an
untrue statement of a material fact or omit to state a material fact required to be stated therein
or necessary to make the statements therein not misleading. Neither the
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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Prospectus nor any amendments and supplements thereto included or will include an untrue
statement of a material fact or omitted or will omit to state a material fact necessary in order to
make the statements therein, in the light of the circumstances under which they were made, not
misleading, except that the foregoing does not apply to statements in or omissions from any of such
documents in reliance on and in conformity with written information furnished to the Company by you
or on your behalf specifically for use therein.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each preliminary prospectus and prospectus filed as part of the Registration Statement as
originally filed or as part of any amendment thereto, complied when so filed in all material
respects with the 1933 Act and each preliminary prospectus and the Prospectus prepared for use in
connection with the Offer will, at the time of such delivery, be identical to any electronically
transmitted copies thereof filed with the Commission pursuant to EDGAR, except to the extent
permitted by Regulation&nbsp;S-T.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;<U>Offer Material</U>. A complete and correct copy of the Offer Material has been
furnished to you and your counsel or will be furnished no later than the Commencement Date. The
Offer Material, as then amended or supplemented (other than the Prospectus and the Registration
Statement, and any amendments and supplements thereto, which are covered in subsection (a)&nbsp;above),
complied and will comply in all material respects with the requirements of the 1933 Act and the
1934 Act, as applicable, and did not and will not contain an untrue statement of a material fact or
omit to state a material fact required to be stated therein or necessary to make the statements
therein not misleading. Neither the Offer Material nor any amendments or supplements thereto (other
than the Prospectus and the Registration Statement, and any amendments and supplements thereto,
which are covered in subsection (a)&nbsp;above) included or will include an untrue statement of a
material fact or omitted or will omit to state a material fact necessary in order to make the
statements therein, in the light of the circumstances under which they were made, not misleading.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;<U>Incorporated Documents</U>. The Company has filed all documents with the Commission
that it is required to file under the 1933 Act and the 1934 Act, as applicable; the Incorporated
Documents, at the time they were or hereafter are filed with the Commission, complied and will
comply in all material respects with the requirements of the 1934 Act, and, when read together with
the other information in the Prospectus, at the date of the Prospectus and at the Acceptance Date,
did not and will not include an untrue statement of a material fact or omit to state a material
fact necessary in order to make the statements therein, in the light of the circumstances under
which they were made, not misleading.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;<U>Financial Statements</U>. The financial statements of the Company, together with the
related schedules and notes to such financial statements, included in the Registration Statement
and the Prospectus present fairly in all material respects the financial position of the Company
and its consolidated
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">subsidiaries as of the dates shown and their results of operations and cash flows for the
periods shown, and except as otherwise disclosed in the Prospectus, such financial statements
comply as to form with the applicable accounting requirements of the 1933 Act and have been
prepared in conformity with generally accepted accounting principles (&#147;<B>GAAP</B>&#148;) in the United States
applied on a consistent basis throughout the periods involved (except as stated therein); and any
schedules included in the Registration Statement present fairly in all material respects in
accordance with GAAP the information required to be stated therein. The selected historical
financial data set forth under the caption &#147;Selected Historical Consolidated Financial Data&#148; in the
Prospectus present fairly the information shown therein and have been compiled as described in the
Prospectus under the caption &#147;Selected Historical Consolidated Financial Data.&#148;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;<U>Independent Accountants</U>. PricewaterhouseCoopers LLP, who have reported upon the
audited financial statements and schedules included or incorporated by reference in the Prospectus,
are independent public auditors with respect to the Company within the meaning of the rules and
regulations promulgated under the 1933 Act.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;<U>No Material Adverse Change in Business</U>. Other than as may be set forth in the
Prospectus, neither the Company nor any of its Significant Subsidiaries has sustained, since the
date of the latest audited financial statements included or incorporated by reference in the
Prospectus, any loss or interference with its business from fire, explosion, flood or other
calamity, whether or not covered by insurance, or from any labor dispute or court or governmental
action, order or decree, which would be reasonably likely to result in any Material Adverse Effect
(as defined below), or any development involving a material adverse change in or affecting the
financial condition, results of operations, business or prospects of the Company and its
subsidiaries, taken as a whole, otherwise than as may be set forth or contemplated in the
Prospectus, and, since the respective dates as of which information is given in the Prospectus or
since the date of the Prospectus, there has not been (i)&nbsp;any material change in the capital stock
or long-term debt of the Company or any of its subsidiaries, (ii)&nbsp;any material adverse change in or
affecting the financial condition, results of operations, business or prospects of the Company and
its subsidiaries, taken as a whole or (iii)&nbsp;any transaction entered into by the Company or any of
its Significant Subsidiaries, other than in the ordinary course of business, that is material to
the Company and its subsidiaries, taken as a whole, otherwise than as disclosed, in each case, in
the Prospectus.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;<U>Good Standing of the Company</U>. The Company has been duly incorporated, is validly
existing as a corporation in good standing under the laws of the State of Illinois, has the
corporate power and authority to own its property and to conduct its business as described in the
Prospectus and is duly qualified to do business and is in good standing in each jurisdiction in
which the conduct of its business or its ownership or leasing of property requires such
qualification, except
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">to the extent that the failure to be so qualified or be in good standing would not have a
material adverse effect on the financial condition, results of operations, business or prospects of
the Company and its subsidiaries, taken as a whole (a &#147;<B>Material Adverse Effect</B>&#148;).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;<U>Good Standing of Subsidiaries</U>. Each significant subsidiary of the Company (as
defined in Rule&nbsp;1-02 of Regulation&nbsp;S-X under the 1933 Act (each, a &#147;<B>Significant Subsidiary</B>&#148; and
collectively, the &#147;<B>Significant Subsidiaries</B>&#148;) has been duly organized or validly formed, is validly
existing and in good standing under the laws of the jurisdiction of its formation or incorporation,
has the power (corporate or other) and authority to own its property and to conduct its business as
described in the Prospectus and is duly qualified to do business and is in good standing in each
jurisdiction in which the conduct of its business or its ownership or leasing of property requires
such qualification, except to the extent that the failure to be so qualified or be in good standing
would not have a Material Adverse Effect; all of the issued and outstanding shares of capital stock
or other equity interests of each Significant Subsidiary have been duly authorized and validly
issued and, if applicable, are fully paid and nonassessable and, except as disclosed in the
Prospectus and subject to certain encumbrances under the Company&#146;s revolving credit facility, are
owned directly or indirectly by the Company, free and clear of all liens, encumbrances, equities
and claims.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;<U>Capital Stock</U>. The Company has an authorized capitalization as set forth in the
Prospectus and Offer Material; all of the issued shares of capital stock of the Company have been
duly authorized and validly issued, are fully paid and nonassessable, and conform to the
description thereof contained in the Prospectus and Offer Material; and none of such shares of
capital stock was issued in violation of preemptive or other similar rights of any securityholder
of the Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;<U>Authorization of this Agreement</U>. This Agreement has been duly authorized, executed
and delivered by the Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;<U>Authorization of Company Shares</U>. The Company has duly authorized for issuance a
sufficient number of Company Shares to be issued on conversion of the Securities as contemplated by
the Offer pursuant to its terms and, when any Company Shares are issued and delivered by the
Company &#091;pursuant to the terms of the Indenture dated as of July&nbsp;26, 2004 between the Company and
U.S. Bank National Association, as trustee, and&#093; as provided in the Offer Material, such Company
Shares will be validly issued and fully paid and non-assessable; the Company Shares conform in all
material respects to the respective statements relating thereto contained in the Prospectus and
Offer Material and the issuance of the Company Shares by the Company is not subject to any
preemptive or other similar rights of any security holder of the Company.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)&nbsp;<U>Noncontravention</U>. The Company has full power and authority to make and consummate
the Offer in accordance with its terms and to execute, deliver and perform its obligations under
this Agreement. The (i)&nbsp;execution, delivery and performance by the Company of this Agreement, (ii)
making and consummation of the Offer by the Company (including but not limited to the issuance and
delivery of Company Shares thereunder), (iii)&nbsp;use of the Offer Material and the filing of the
Registration Statement, the Prospectus and the Schedule&nbsp;TO, and any amendments or supplements
thereto and (iv)&nbsp;consummation by the Company of the transactions contemplated by this Agreement and
in the Offer Material, in each case, have been duly authorized by all necessary action (corporate
or other) on the part of the Company and do not and will not (x)&nbsp;result in any violation of the
charter or by-laws of the Company or (y)&nbsp;conflict with, or result in a breach of any of the terms
or provisions of, or constitute a default or result in the creation or imposition of any lien,
charge or encumbrance upon any property or assets of the Company under, any indenture, mortgage,
deed of trust, loan agreement or other agreement or instrument to which the Company or any of its
affiliates is a party or by which the Company or any of its affiliates is bound (except for such
conflicts, breaches or defaults, in the case of this clause (y), that would not reasonably be
expected to have a Material Adverse Effect), nor does or will such action result in any violation
of any statute applicable to the Company or any order, rule or regulation of any court or
governmental agency or body having jurisdiction over the Company or any of its properties.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)&nbsp;<U>Absence of Proceedings</U>. Other than as set forth or incorporated by reference in
the Prospectus, there is no action, suit or proceeding before or by any government, governmental
instrumentality or court, domestic or foreign, now pending or, to the knowledge of the Company,
threatened against or affecting the Company or any Significant Subsidiary or to which any of their
respective properties are subject that would reasonably be expected to result in any Material
Adverse Effect, or that would reasonably be expected to adversely affect the consummation of the
Offer or the other transactions contemplated in this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n)&nbsp;<U>Absence of Further Requirements</U>. No consent, approval, authorization, order,
registration or qualification of or with any such court or governmental agency or body having
jurisdiction over the Company or any of its properties is required for the execution, delivery and
performance by the Company of this Agreement, in connection with the consummation of the Offer or
the other transactions described in the Offer Material by the Company, except as may be required by
the securities or Blue Sky laws of the various states in connection with the Offer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o)&nbsp;<U>Possession of Licenses and Permits</U>. The Company and its Significant Subsidiaries
each have obtained all consents, authorizations, approvals, orders, certificates and permits of and
from, and has made all
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">declarations and filings with, all federal, state, local and other governmental authorities,
and all courts or other tribunals (collectively, the &#147;<B>Licenses</B>&#148;) necessary to own, hold, or lease,
as the case may be, and to operate its properties and to carry on its business as presently
conducted, except where the failure to possess such Licenses would not reasonably be expected to
have a Material Adverse Effect, and neither the Company nor any of its Significant Subsidiaries has
received any written notice of proceedings relating to revocation or modification of any such
Licenses, except to the extent that any such revocation or modification would not have a Material
Adverse Effect.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p)&nbsp;<U>Officers&#146; Certificates</U>. Any certificate signed by any officer of the Company
delivered to you or to your counsel and requested in writing with respect to this Agreement shall
be deemed a representation and warranty by the Company to the Dealer Manager as to the matters
covered thereby.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q)&nbsp;<U>Absence of Defaults and Conflicts</U>. The Company is not (i)&nbsp;in violation of its
charter or by-laws, as applicable, (ii)&nbsp;in default, and no event has occurred which, with notice or
lapse of time or both, would constitute such a default, in the due performance or observance of any
term, obligation, agreement, covenant or condition contained in any material contract, indenture,
mortgage, deed of trust, loan agreement, lease or other agreement or instrument to which it is a
party or by which it is bound or which any of its properties or assets may be subject or (iii)&nbsp;in
violation of any law, ordinance, governmental rule, regulation or court decree to which it or its
property or assets may be subject, except with respect to (ii)&nbsp;or (iii), for any such violations or
defaults that would not be reasonably likely, singly or in the aggregate, to have a Material
Adverse Effect.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r)&nbsp;<U>Compliance with Environmental Laws</U>. (i)&nbsp;Each of the Company and its Significant
Subsidiaries (A)&nbsp;is in compliance with applicable federal, state and local (and is not subject to
any foreign) laws and regulations relating to the protection of human health and safety, the
environment or hazardous or toxic substances or wastes, pollutants or contaminants (&#147;<B>Environmental
Laws</B>&#148;), (B)&nbsp;has received all permits, licenses or other approvals required of it under applicable
Environmental Laws to conduct its business as presently conducted and (C)&nbsp;is in compliance with all
terms and conditions of any such permit, license or approval, except, with respect to (A), (B)&nbsp;and
(C), as may be disclosed in the Prospectus and except where such noncompliance with Environmental
Laws, failure to receive required permits, licenses or other approvals or failure to comply with
the terms and conditions of such permits, licenses or approvals would not be reasonably likely to,
singly or in the aggregate, have a Material Adverse Effect.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) There has been no storage, disposal, generation, manufacture,
refinement, transportation, handling or treatment of toxic wastes, hazardous
wastes or hazardous substances by the Company or any of its Significant
Subsidiaries (or, to the
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">knowledge of the Company, any of their predecessors in interest) at, upon
or from any of the property now or previously owned or leased by the Company or
its Significant Subsidiaries in violation of any applicable law, ordinance,
rule, regulation, order, judgment, decree or permit or which would require
remedial action under any applicable law, ordinance, rule, regulation, order,
judgment, decree or permit, except as may be disclosed in the Prospectus and
except for any violation or remedial action which would not be reasonably likely
to have, singularly or in the aggregate, a Material Adverse Effect; there has
been no material spill, discharge, leak, emission, injection, escape, dumping or
release of any kind onto such property or into the environment surrounding such
property of any toxic wastes, solid wastes, hazardous wastes or hazardous
substances due to or caused by the Company or any of its Significant
Subsidiaries or with respect to which the Company or any of its Significant
Subsidiaries have knowledge, except as may be set forth in the Prospectus, and
except for any such spill, discharge, leak, emission, injection, escape, dumping
or release which would not be reasonably likely to have, singularly or in the
aggregate, a Material Adverse Effect; and the terms &#147;hazardous wastes&#148;, &#147;toxic
wastes&#148;, and &#147;hazardous substances&#148; shall have the meanings specified in any
applicable local, state and federal laws or regulations with respect to
environmental protection
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s)&nbsp;<U>Intellectual Property</U>. The Company and each of its Significant Subsidiaries own or
possess, or can acquire on reasonable terms, adequate patents, patent rights, licenses, inventions,
copyrights, know-how (including trade secrets and other unpatented and/or unpatentable proprietary
or confidential information, systems or procedures), trademarks, service marks, trade names or
other intellectual property (collectively, &#147;<B>Intellectual Property</B>&#148;) necessary to carry on the
business now operated by them, and neither the Company nor any of its Significant Subsidiaries has
received any notice of any infringement of or conflict with asserted rights of others with respect
to any Intellectual Property, which infringement or conflict (if the subject of any unfavorable
decision, ruling or finding) or invalidity or inadequacy, singly or in the aggregate, would result
in a Material Adverse Effect.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t)&nbsp;<U>Sarbanes Oxley Act of 2002</U>. Except as described in the Registration Statement and
the Prospectus, there is and has been no failure on the part of the Company and its subsidiaries or
any of the officers and directors of the Company or any of its subsidiaries, in their capacities as
such, to comply in all material respects with the provisions of the Sarbanes-Oxley Act of 2002 and
the rules and regulations in connection therewith applicable to the Company or its subsidiaries,
including, without limitation, Section&nbsp;402 thereof related to loans and Sections&nbsp;302 and 906
thereof related to certifications.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u)&nbsp;<U>Internal Controls</U>. The Company (i)&nbsp;makes and keeps books and records which
accurately reflect transactions and dispositions of the Company&#146;s assets and (ii)&nbsp;maintains
internal accounting controls which provide reasonable assurance that (A)&nbsp;transactions are executed
in accordance with management&#146;s general or specific authorization, (B)&nbsp;transactions are recorded as
necessary to permit preparation of its financial statements and to maintain accountability for its
assets, and (C)&nbsp;access to its assets is permitted only in accordance with management&#146;s general or
specific authorization.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;<U>Disclosure Controls and Procedures</U>. (i) (A)&nbsp;The Company has established and
maintains disclosure controls and procedures (as such terms are defined in Rules&nbsp;13a-15(e) and
15d-15(e) under the 1934 Act); (B)&nbsp;such disclosure controls and procedures are designed to ensure
that information required to be disclosed by the Company in the reports it files or submits under
the 1934 Act is accumulated and communicated to the Company&#146;s management, including its principal
executive officer and its principal financial officer, as appropriate, to allow timely decisions
regarding required disclosure; and (C)&nbsp;such disclosure controls and procedures are effective at a
reasonable assurance level to perform the functions for which they were established.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Since the date of the filing of the Company&#146;s Quarterly Report on Form
10-Q for the quarter ended September&nbsp;30, 2006, as amended, the Company&#146;s
auditors and the audit committee of the board of directors of the Company (or
persons fulfilling the equivalent function) have not been advised of (i)&nbsp;any
significant deficiencies or material weaknesses in the design or operation of
internal controls over financial reporting which are reasonably likely to
adversely affect the Company&#146;s ability to record, process, summarize and report
financial data; and (ii)&nbsp;any fraud, whether or not material, that involves
management or other employees who have a significant role in the Company&#146;s
internal controls over financial reporting.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Since the date of the filing of the Company&#146;s Quarterly Report on
Form 10-Q for the quarter ended September&nbsp;30, 2006, as amended there have been
no material changes in internal controls over financial reporting that have
materially affected or are reasonably likely to materially affect internal
controls over financial reporting, including any corrective actions with regard
to significant deficiencies and material weaknesses.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w)&nbsp;<U>Investment Company Act</U>. The Company is not and, after giving effect to the
issuance of the Company Shares in connection with the Offer, will not be an &#147;investment company&#148;
required to be registered under the Investment Company Act of 1940, as amended.
</DIV>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x)&nbsp;<U>ERISA Compliance</U>. Except as disclosed in the Offer Material, the Company is in
compliance in all material respects with all presently applicable provisions of the Employee
Retirement Income Security Act of 1974, as amended, including the regulations and published
interpretations thereunder (&#147;<B>ERISA</B>&#148;); no Reportable Event has occurred with respect to any &#147;pension
plan&#148; (as defined by ERISA) for which the Company would have any material liability; the Company
has not incurred and does not expect to incur material liability under (i)&nbsp;Title IV of ERISA with
respect to termination of, or withdrawal from, any &#147;pension plan&#148; or (ii)&nbsp;Sections&nbsp;412 or 4971 of
the Internal Revenue Code of 1986, as amended, including the regulations and published
interpretations thereunder (the &#147;<B>Code</B>&#148;); and each &#147;pension plan&#148; for which the Company would have
any liability that is intended to be qualified under Section 401(a) of the Code is so qualified in
all material respects and nothing has occurred, whether by action or by failure to act, which would
reasonably be expected to cause the loss of such qualification. &#147;<B>Reportable Event</B>&#148; means any of
the events set forth in Section 4043(c) of ERISA, other than those events described in Section
4043(c)(3) and other than those events as to which the thirty day notice period is waived under
subsections .22, .24 (solely with respect to partial termination of a Plan), .27, .28, .29, .30,
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.31, .32, .34 or .35 of PBGC Reg.&#167; 4043).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y)&nbsp;<U>Insurance</U>. Other than as may be set forth in the Prospectus, the Company and its
Significant Subsidiaries carry, or are covered by, insurance in such amounts and covering such
risks as is reasonable for the conduct of their respective businesses and the value of their
properties.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z)&nbsp;<U>Taxes</U>. The Company and its subsidiaries have filed all federal or state income or
franchise tax returns required to be filed and have paid all taxes shown thereon as due and
required to be paid except for tax assessments, if any, as to which adequate reserves have been
provided in accordance with generally accepted accounting principles. There is no material tax
deficiency which has been asserted against the Company or any of its subsidiaries. All material
tax liabilities are adequately provided for on the books of the Company and its subsidiaries.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa)&nbsp;<U>Listing</U>. The Company Shares have been approved for listing on the New York Stock
Exchange.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.&nbsp;<I>Additional Agreements</I>. (a)&nbsp;The Company shall notify you immediately and, if requested,
shall notify you in writing of (i)&nbsp;when the Registration Statement has become effective and when
any Prospectus is mailed (or otherwise sent) for filing pursuant to Rule&nbsp;424 under the 1933 Act,
(ii)&nbsp;the receipt of any comments from the Commission, (iii)&nbsp;any request by the Commission for any
amendment to the Registration Statement or any amendment or supplement to the Prospectus or for
additional information, (iv)&nbsp;the filing of any post-effective amendment to the Registration
Statement, (v)&nbsp;the issuance by the Commission of any stop order suspending the effectiveness of the
Registration
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Statement or any post-effective amendment thereto or of any order preventing or suspending the
use of the Preliminary Prospectus or any Offer Material, or of the suspension of the qualification
of the Securities for offering or sale in any jurisdiction, or of the initiation or threatening of
any proceedings for any of such purposes, (vi)&nbsp;the occurrence of any event that would reasonably be
expected to cause the Company to withdraw or terminate the Offer or would permit the Company to
exercise any right not to accept tendered Securities, (vii)&nbsp;any proposal or requirement to make,
amend or supplement any other Offer Material, (viii)&nbsp;the commencement of any material litigation or
the issuance of any order or the taking of any other action by any administrative or judicial
tribunal or other governmental agency or instrumentality concerning the Offer (and, if in writing,
will furnish you a copy thereof), (ix)&nbsp;the issuance by any state securities commission or other
regulatory authority of any order suspending the qualification or the exemption from qualification
of the Company Shares under state securities or blue sky laws or the initiation or threatening of
any proceeding for that purpose, (x)&nbsp;the occurrence of any event, or the discovery of any fact, the
occurrence or existence of which would reasonably be expected to (a)&nbsp;cause the Company to amend,
withdraw or terminate the Offer, (b)&nbsp;cause any representation or warranty contained in this
Agreement to be untrue or inaccurate, or (c)&nbsp;permit the Company to exercise any right not to
convert the Securities tendered under the Offer (and the Company will so advise you before such
rights are exercised) and (xi)&nbsp;any other information relating to the Offer which you may from time
to time reasonably request.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company agrees that if any material event occurs or condition exists as a result of which
the Offer Material (other than the Registration Statement and the Prospectus, which are discussed
in Section 8(f) below) would include an untrue statement of a material fact, or omit to state any
material fact necessary to make the statements therein, in light of the circumstances existing when
the Offer Material is delivered to a holder of Securities, not misleading, or if, in the opinion of
the Company, after consultation with you, it is necessary at any time to amend or supplement the
Offer Material to comply with applicable law, the Company shall immediately notify you, prepare an
amendment or supplement to the Offer Material that will correct such statement or omission or
effect such compliance and supply such amended or supplemented Offer Material to you.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The Company will use its best efforts to promptly effect the filings necessary pursuant to
Rule&nbsp;424 and will take such steps as it deems necessary to ascertain promptly whether the
Prospectus transmitted for filing under Rule&nbsp;424 was received for filing by the Commission and, in
the event that it was not, it will promptly file the Prospectus. The Company will use its best
efforts to make every reasonable effort to prevent the issuance of any stop order and, if any stop
order is issued, will make every reasonable effort to obtain the lifting thereof at the earliest
possible moment.
</DIV>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company will use its best efforts to file promptly all reports or information statements
required to be filed with the Commission pursuant to Section&nbsp;13(a), 13(c), 14 or 15(d) of the 1934
Act subsequent to the date of the Preliminary Prospectus and for so long as the delivery of a
prospectus is required in connection with the Offer. The Company will use its best efforts to
promptly file with the Commission on the Commencement Date a Schedule&nbsp;TO and will use its best
efforts to promptly file as required any and all necessary Amendments.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Commencing on the Commencement Date, the Company will cause to be delivered to each
registered holder of the Securities, as soon practicable, a copy of the Preliminary Prospectus and
Letter of Transmittal and all other appropriate Offer Material. Thereafter, to the extent
practicable until the expiration or termination of the Offer, the Company will use its best efforts
to cause copies of such material to be mailed to each person who becomes a registered holder of any
Company Shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;The Company will give you notice of its intention to file or prepare any amendment to the
Registration Statement (including any filing under Rule 462(b) of the 1933 Act regulations), or any
amendment, supplement or revision to either the prospectus included in the Registration Statement
at the time it became effective or to the Prospectus, whether pursuant to the 1933 Act, the 1934
Act or otherwise, will furnish you with copies of any such documents a reasonable amount of time
prior to such proposed filing or use, as the case may be, and will not file or use any such
document to which you shall reasonably object in writing.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;The Company will deliver to you, without charge, as many copies of the Prospectus as you
may reasonably request, and the Company hereby consents to the use of such copies for purposes
permitted by the 1933 Act. The Company will furnish to you, without charge, during the period when
the Prospectus is required to be delivered under the 1933 Act or the 1934 Act, such number of
copies of the Prospectus as you may reasonably request. The Company further agrees that the
Prospectus and any amendments or supplements thereto furnished to you will be identical to any
electronically transmitted copies thereof filed with the Commission pursuant to EDGAR, except to
the extent permitted by Regulation&nbsp;S-T.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;The Company will comply with the 1933 Act and the 1934 Act so as to permit the completion
of the distribution of the Company Shares as contemplated in this Agreement and in the Registration
Statement and the Prospectus. If at any time when the Prospectus is required by the 1933 Act or
the 1934 Act to be delivered in connection with the distribution of the Company Shares, any event
shall occur or condition shall exist as a result of which it is necessary, in the opinion of your
counsel or counsel for the Company, to amend the Registration Statement in order that the
Registration Statement will not contain an untrue statement of a material fact or omit to state a
material fact
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">required to be stated therein or necessary to make the statements therein not misleading or to
amend or supplement the Prospectus in order that the Prospectus will not include an untrue
statement of a material fact or omit to state a material fact necessary in order to make the
statements therein, in the light of the circumstances existing at the time it is delivered to a
holder of Securities, not misleading, or if it shall be necessary, in the opinion of such counsel,
at any such time to amend the Registration Statement or amend or supplement the Prospectus in order
to comply with the requirements of the 1933 Act, the Company will use its best efforts to promptly
prepare and file with the Commission, subject to the terms of this Agreement, such amendment or
supplement as may be necessary to correct such statement or omission or to make the Registration
Statement or the Prospectus comply with such requirements, and the Company will furnish to you,
without charge, such number of copies of such amendment or supplement as you may reasonably
request.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;The Company will use its best efforts, in cooperation with you and in accordance with Rule
13e-4 of the 1934 Act, to qualify the Company Shares for offering and sale under the applicable
securities laws of such states and other domestic jurisdictions as you and the Company may
reasonably designate and to maintain such qualifications in effect for a period of not less than
one year from the date of this Agreement; <I>provided</I>, <I>however</I>, that the Company shall not be
obligated to file any general consent to service of process or to qualify as a foreign corporation
or as a dealer in securities in any jurisdiction in which it is not so qualified or to subject
itself to taxation in respect of doing business in any jurisdiction in which it is not otherwise so
subject. In each jurisdiction in which the Company Shares have been so qualified, the Company will
file such statements and reports as may be required by the laws of such jurisdiction to continue
such qualification in effect for a period of not less than one year from the date of this
Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;The Company will not, directly or indirectly, distribute the Offer Material to any holder
of Securities in or from any jurisdiction outside the United States, or otherwise extend the Offer
to any holder of Securities residing in any jurisdiction outside the United States, except under
circumstances that will result in compliance with the applicable laws and regulations of such
jurisdiction.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;The Company will timely file such reports pursuant to the 1934 Act as are necessary in
order to make generally available to its security holders as soon as practicable an earnings
statement for the purposes of, and to provide the benefits contemplated by, the last paragraph of
Section 11(a) of the 1933 Act.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;On or prior to the Commencement Date, the Company will have entered into agreements with
the Information Agent and the Conversion Agent and will have made appropriate arrangements, to the
extent applicable, with DTC or any other &#147;qualified&#148; securities depositary to allow for the
book-entry
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">movement of the tendered Securities between depositary participants and the Conversion Agent.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.&nbsp;<I>Documentary Covenants</I>. (a)&nbsp;The Company covenants that it shall, on the Commencement Date,
deliver or cause to be delivered to you each of (i)&nbsp;the signed opinion, dated the Commencement
Date, of Cheri T. Holley, Vice President, Secretary and General Counsel of the Company, the signed
opinion, dated the Commencement Date, of Bodman LLP, counsel for the Company, and the signed
opinion, dated the Commencement Date, of Schmeideskamp, Robertson, Neu &#038; Mitchell, Illinois counsel
for the Company, each substantially in the form set forth in Exhibits A, B and C hereto with
customary qualifications, assumptions and exceptions reasonably satisfactory to you, (ii)&nbsp;a
certificate of the Chief Executive Officer of the Company, dated as of the Commencement Date, to
the effect that, (y)&nbsp;the Company Shares have been duly approved for listing on the New York Stock
Exchange and (z)&nbsp;since the date of the most recent financial statements included or incorporated by
reference in the Registration Statement and the Prospectus, there has been no Material Adverse
Change (other than as set forth in the Prospectus), (iii)&nbsp;a certificate, dated the Commencement
Date, of the Secretary of the Company in form and substance reasonably satisfactory to you and (iv)
a letter from PricewaterhouseCoopers LLP, dated as of the Commencement Date, in form and substance
reasonably satisfactory to you, containing statements and information of the type ordinarily
included in accountants&#146; &#147;comfort letters&#148; with respect to the financial statements and certain
financial information contained in the Registration Statement and the Prospectus.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Unless you have previously withdrawn as Dealer Manager, the Company covenants that it
shall, on the Acceptance Date, deliver or cause to be delivered to you each of the documents listed
in clauses (i)&nbsp;through (v)&nbsp;below and that it will not accept Securities tendered pursuant to the
Offer unless on such Acceptance Date: (i)&nbsp;the signed opinion, dated the Acceptance Date, of Cheri
T. Holley, Vice President, Secretary and General Counsel of the Company, the signed opinion, dated
the Acceptance Date, of Bodman LLP, counsel for the Company, and the signed opinion, dated the
Acceptance Date, of Schmeideskamp, Robertson, Neu &#038; Mitchell, Illinois counsel for the Company,
each substantially in the form set forth in Exhibits A, B and C hereto with customary
qualifications, assumptions and exceptions reasonably satisfactory to you, (ii)&nbsp;the Company shall
have delivered or caused to be delivered written evidence that the Company Shares are duly
authorized for listing on the New York Stock Exchange, (iii)&nbsp;the Company shall have delivered or
caused to be delivered to you a certificate of the Chief Executive Officer of the Company, dated as
of the Acceptance Date, to the effect that (w)&nbsp;since the date of this Agreement, there has been no
Material Adverse Change (other than as set forth in the Prospectus), (x)&nbsp;the Company&#146;s
representations and warranties in this Agreement are true and correct with the same force and
effect as though expressly made at and as of the Acceptance Date, and (y)&nbsp;the Company has complied
with all agreements and taken all actions to be performed or satisfied by the Company
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">pursuant to this Agreement at or prior to the Acceptance Date, and (z)&nbsp;the Registration
Statement has been declared effective by the Commission and no stop order suspending the
effectiveness of the Registration Statement has been issued and no proceedings for that purpose
have been instituted, are pending or, to the best of such officer&#146;s knowledge, are threatened by
the Commission, (iv)&nbsp;the Company shall have delivered or caused to be delivered to you a
certificate, dated the Acceptance Date, of the Secretary of the Company in form and substance
reasonably satisfactory to you and (v)&nbsp;the Company shall have delivered or have caused to be
delivered to you a letter from PricewaterhouseCoopers LLP, dated as of the Acceptance Date, to the
effect that PricewaterhouseCoopers LLP reaffirms the statements made in the letter furnished
pursuant to subsection (a)(iv) of this Section&nbsp;9, except that the specified date referred to shall
be a date not more than three business days prior to the Acceptance Date.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.&nbsp;<I>Indemnification and Contribution</I>. (a)&nbsp;The Company agrees to indemnify and hold harmless
the Dealer Manager and the affiliates and respective directors, officers, employees,
representatives, advisors and agents of the Dealer Manager and each person who controls the Dealer
Manager within the meaning of Section&nbsp;15 of the 1933 Act or Section&nbsp;20 of the 1934 Act (the Dealer
Manager and each such person being an &#147;<B>Indemnified Party</B>&#148;) as follows:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) from and against any and all losses, claims, damages, liabilities and reasonable
expenses whatsoever, joint or several, as incurred, to which such Indemnified Party may
become subject under any applicable federal or state law, or otherwise, and related to,
arising out of, or based on (A)&nbsp;any untrue statement of a material fact or alleged untrue
statement of a material fact contained in the Offer Material, as amended or supplemented,
or the omission or alleged omission therefrom of a material fact required to be stated
therein or necessary to make the statements therein, in the light of the circumstances
under which they were made, not misleading, (B)&nbsp;any breach by the Company of any of its
representations, warranties or agreements contained herein, (C)&nbsp;the Company&#146;s failure to
make or consummate the Offer or the withdrawal, rescission, termination, amendment or
extension of the Offer or any other failure on the Company&#146;s part to comply with the terms
and conditions contained in the Offer Material, (D)&nbsp;any of the transactions contemplated
in the Offer Material or the engagement of the Dealer Manager pursuant to, and the
performance by the Dealer Manager of the services contemplated by, this Agreement except
in the case of this clause (D)&nbsp;to the extent that any losses, claims, damages, liabilities
or expenses are found in a final judgment by a court of competent jurisdiction to have
resulted from the gross negligence, bad faith or willful misconduct of an Indemnified
Party, or (E)&nbsp;any action taken or omitted to be taken by an Indemnified Party with the
consent of the Company or in conformity with the instructions or actions or omissions of
the Company;
</DIV>

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</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) from and against any and all losses, claims, damages, liabilities and reasonable
expenses whatsoever, as incurred, to the extent of the aggregate amount paid in settlement
of any litigation, or any investigation or proceeding by any governmental agency or body,
commenced or threatened, or of any claim whatsoever related to, arising out of or based on
any matter described in subparagraph (i)&nbsp;above, <I>provided </I>that any such settlement is
effected with the written consent of the Company (which consent shall not be unreasonably
withheld); and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) from and against any and all reasonable expenses whatsoever, as incurred
(including the fees and disbursements of counsel chosen by you), reasonably incurred in
investigating, preparing or defending against any litigation, or investigation or
proceeding by any governmental agency or body, commenced or threatened, or any claim
whatsoever related to, arising out of or based on any matter described in (i)&nbsp;above,
whether or not such Indemnified Party is a party and whether or not such claim, action or
proceeding is initiated or brought by or on behalf of the Company, to the extent that any
such expense is not paid under subparagraph (i)&nbsp;or (ii)&nbsp;above;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%"><I>provided, however</I>, that the Company shall not be liable under clause (A)&nbsp;of subparagraph
(i)&nbsp;above to the extent that any losses, claims, damages, liabilities or expenses arise
out of any untrue statement or omission or alleged untrue statement or omission made in
the Offer Material in reliance upon and in conformity with written information furnished
to the Company by the Dealer Manager expressly for use in the Offer Material, it being
understood and agreed that the only such information furnished by the Dealer Manager
consists of the Dealer Manager&#146;s legal and marketing name.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The Company agrees that no Indemnified Party shall have any liability (whether direct or
indirect, in contract or tort or otherwise) to the Company, its security holders or creditors
relating to or arising out of the engagement of the Dealer Manager pursuant to, or the performance
by the Dealer Manager of the services contemplated by, this Agreement except to the extent that any
loss, claim, damage, liability or expense is found in a final judgment by a court of competent
jurisdiction to have resulted from the gross negligence, bad faith or willful misconduct of the
Dealer Manager.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;If the indemnification provided for in Section 10(a) hereof is for any reason unavailable
to or insufficient to hold harmless an Indemnified Party in respect of any losses, liabilities,
claims, damages or expenses referred to therein (other than as a result of the proviso to Section
10(a) or, in the case of clause (D)&nbsp;of Section&nbsp;10(a)(i), as a result of the gross negligence, bad
faith or willful misconduct of an Indemnified Party), then the Company agrees to contribute to the
aggregate amount of such losses, liabilities, claims, damages and expenses
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">incurred by such Indemnified Party, as incurred, (i)&nbsp;in such proportion as is appropriate to
reflect the relative benefits to the Company on the one hand and to the Dealer Manager on the other
hand from the Offer (whether or not consummated) or (ii)&nbsp;if, but only if, the allocation provided
by clause (i)&nbsp;is for any reason held unenforceable, in such proportion as is appropriate to reflect
not only the relative benefits referred to in clause (i)&nbsp;above but also the relative fault of the
Company on the one hand and of the Dealer Manager on the other hand in connection with the
statements or omissions which resulted in such losses, liabilities, claims, damages or expenses, as
well as any other relevant equitable considerations. The relative benefits to the Company on the
one hand and the Dealer Manager on the other hand, in connection with the Offer (whether or not
consummated) shall be deemed to be in the same proportion as the total value paid or proposed to be
paid to holders of the Securities pursuant to the Offer (whether or not consummated) bears to the
fees actually received by the Dealer Manager pursuant to Section&nbsp;4 hereunder. The relative fault of
the Company on the one hand and the Dealer Manager on the other hand shall be determined by
reference to, among other things, whether any such untrue or alleged untrue statement of a material
fact or omission or alleged omission to state a material fact relates to information supplied by
the Company or by the Dealer Manager and the parties&#146; relative intent, knowledge, access to
information and opportunity to correct or prevent such statement or omission. The Company and the
Dealer Manager agree that it would not be just and equitable if contribution pursuant to this
Section 10(c) were determined by pro rata allocation or by any other method of allocation which
does not take account of the equitable considerations referred to above in this Section&nbsp;10(c). The
aggregate amount of losses, liabilities, claims, damages and expenses incurred by an Indemnified
Party and referred to above in this Section 10(c) shall be deemed to include any legal or other
expenses reasonably incurred by such Indemnified Party in investigating, preparing or defending
against any litigation, or any investigation or proceeding by any governmental agency or body,
commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue
statement or omission or alleged omission; <I>provided, however</I>, that to the extent permitted by
applicable law, in no event shall the Dealer Manager be required to contribute any amount which, in
the aggregate, exceeds the aggregate fees received by the Dealer Manager under Section&nbsp;4 of this
Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;In the event an Indemnified Party is requested or required to appear as a witness in any
action brought by or on behalf of or against the Company in connection with the transactions
contemplated by this agreement, the Company agrees to reimburse such Indemnified Party for all
reasonable expenses as incurred by such Indemnified Party in connection with such Indemnified
Party&#146;s appearing and preparing to appear as such a witness, including, without limitation, the
reasonable fees and disbursements of its legal counsel.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;Promptly after receipt by an Indemnified Party of written notice of any claim or
commencement of an action or proceeding with respect to which
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">indemnification or contribution may be sought hereunder, such Indemnified Party shall notify
the Company in writing of such claim or of the commencement of such action, claim or proceeding,
but failure so to notify the Company will not relieve the Company from any liability which it may
have hereunder to such Indemnified Party except to the extent that the Company has been prejudiced
in any material respect by such failure, and in any event will not relieve the Company from any
other liability that it may have to such Indemnified Party. In the event of any such claim, action
or proceeding, if such Indemnified Party shall notify the Company of the commencement thereof, the
Company shall be entitled to participate therein and, to the extent that it wishes, may assume the
defense thereof, with counsel reasonably satisfactory to such Indemnified Party, and shall pay the
reasonable fees and expenses of such counsel; <I>provided, however</I>, (i)&nbsp;if the Company fails to assume
such defense within fifteen business days after receiving written notice of any such claim, action
or proceeding or (ii)&nbsp;if there exists or may exist a conflict of interest that would make it
inappropriate in the reasonable judgment of such Indemnified Party for the same counsel to
represent both the Indemnified Party and the Company, then such Indemnified Party shall be entitled
to retain its own counsel at the reasonable expense of the Company <I>provided, further, however</I>, that
the Company shall not be required to pay the fees and expenses of more than one separate counsel
(in addition to any local counsel) for all Indemnified Parties in any jurisdiction in respect of
any single claim, action or proceeding. In respect of any claim, action or proceeding the defense
of which shall have been assumed by the Company in accordance with the foregoing, each Indemnified
Party shall have the right to participate in such litigation and to retain its own counsel at its
own expense.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;The Company agrees that, without your prior written consent, it will not settle,
compromise or consent to the entry of any judgment in or with respect to any pending or threatened
claim, action, investigation or proceeding in respect of which indemnification or contribution
could be sought under this Section&nbsp;10 (whether or not you or any other Indemnified Party is an
actual or potential party to such claim, action, investigation or proceeding), unless such
settlement, compromise or consent (i)&nbsp;includes an unconditional release of each Indemnified Party
from all liability arising out of such claim, action, investigation or proceeding and (ii)&nbsp;does not
include a statement as to, or an admission of, fault, culpability or a failure to act by or on
behalf of an Indemnified Party. The Company shall not be liable for any settlement of any
proceeding effected without its written consent (which consent shall not be unreasonably withheld),
but if settled with such consent the Company agrees to indemnify the Indemnified Party from and
against any loss or liability by reason of such settlement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;The rights of any Indemnified Party under this Agreement shall be in addition to and not
in limitation of any rights that any Indemnified Party may have at common law or otherwise.
</DIV>

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</DIV>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.&nbsp;<I>Survival of Indemnities, Representations, Warranties, Etc. </I>The indemnity and contribution
agreements contained in Section&nbsp;10, the provisions of Sections&nbsp;4 and 5 and the representations and
warranties of the Company set forth in this Agreement shall remain operative and in full force and
effect, subject to the applicable statute of limitations, regardless of (i)&nbsp;any failure to
commence, or the withdrawal, termination or consummation of, the Offer or the termination or
assignment of this Agreement, (ii)&nbsp;any investigation made by or on behalf of the Company or any
Indemnified Party and (iii)&nbsp;any withdrawal by you pursuant to Section&nbsp;3.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.&nbsp;<I>Severability of Provisions</I>. If any term or other provision of this Agreement is invalid,
illegal or incapable of being enforced by any rule of law, or public policy, all other provisions
of this Agreement shall nevertheless remain in full force and effect so long as the economic or
legal substance of the agreements contained herein is not affected in any manner adverse to any
party. Upon such determination that any term or provision is invalid, illegal or unenforceable, the
parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original
intent of the parties as closely as possible in a mutually acceptable manner in order that the
agreements contained herein may be performed as originally contemplated to the fullest extent
possible.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.&nbsp;<I>Counterparts</I>. This Agreement may be executed and delivered (including by facsimile
transmission) in two or more separate counterparts, each of which shall be deemed an original, but
all of which together shall constitute one and the same instrument.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.&nbsp;<I>Parties In Interest</I>. This Agreement, including any right to indemnity or contribution
hereunder, shall inure to the benefit of and be binding upon the Company, the Dealer Manager and
the other Indemnified Parties (as defined in Section&nbsp;10) and their respective successors and
assigns. Nothing in this Agreement is intended, or shall be construed, to give to any other person
or entity any right hereunder or by virtue hereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>15.&nbsp;</B><B><I>GOVERNING LAW</I></B><B>. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS EXECUTED IN AND PERFORMED IN THAT STATE.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.&nbsp;<I>References to the Dealer Manager</I>. The Company agrees that any reference to the Dealer
Manager in the Registration Statement, Prospectus or Offer Material, or in any other release or
communication relating to the Offer, is subject to your prior approval, which approval shall not be
unreasonably withheld or delayed.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.&nbsp;<I>Notices</I>. All notices and other communications required or permitted to be given under this
Agreement shall be in writing and shall be deemed given
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">when so delivered in person, by overnight courier, by facsimile transmission (with receipt
being confirmed by telephone or by automatic transmission report) or two business days after being
sent by registered or certified mail (postage prepaid, return receipt requested), as follows:
</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="6%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="88%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<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">(a)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">If to the Dealer Manager:</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <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">&nbsp;</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">Merrill Lynch &#038; Co.,</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">Merrill Lynch, Pierce, Fenner &#038; Smith</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">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Incorporated</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">4 World Financial Center</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">New York, New York 10080</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">Facsimile No. (212) 449-4914</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">Attention: Liability Management
Group</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <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">&nbsp;</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"><I>with a copy to:</I></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <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">&nbsp;</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">Shearman &#038; Sterling LLP</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">599 Lexington Avenue</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">New York, New York 10022</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">Facsimile No. (646)&nbsp;848-7678</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">Attention: Lisa L. Jacobs, Esq.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <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">&nbsp;</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</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <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">&nbsp;</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">(b)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">If to the Company:</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <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">&nbsp;</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">Titan International, 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">2701 Spruce Street</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">Quincy, Illinois 62301</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">Facsimile No. (217)&nbsp;228-3040</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">Attention: Cheri T. Holley, Vice President,</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">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Secretary and General Counsel</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <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">&nbsp;</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"><I>with a copy to:</I></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <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">&nbsp;</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">Bodman LLP</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">6<SUP style="font-size: 85%; vertical-align: text-top">th</SUP> Floor at Ford Field</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">1901 St. Antoine Street</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">Detroit, Michigan 48226</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">Facsimile No. (313)&nbsp;393-7579</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">Attention: Barbara A. Bowman</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.&nbsp;<I>Securities Positions</I>. The Company acknowledges that it has no objection to the fact that,
in the course of trading activities, the Dealer Manager
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->24<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<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 align="left" style="font-size: 10pt; margin-top: 6pt">may from time to time have positions in, and, in accordance with applicable law, buy or sell
securities of, the Company and its affiliates.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.&nbsp;<I>Tombstone</I>. You may place an announcement in such newspapers and periodicals as you may
choose, stating that the Dealer Manager is acting or have acted as exclusive dealer manager to the
Company in connection with the Offer. Any such announcement shall be at your sole option and
expense and subject to the reasonable approval of the Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.&nbsp;<I>Waiver of Right to Trial by Jury and Applicable Law</I>. The Dealer Manager and the Company
each waive any right to trial by jury in any action, claim, suit or proceeding with respect to the
engagement of the Dealer Manager hereunder.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21.&nbsp;<I>Miscellaneous</I>. The descriptive headings contained in this Agreement are incorporated for
convenience of reference only and shall not affect in any way the meaning or interpretation of this
Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22.&nbsp;<I>Entire Agreement; Amendment</I>. This Agreement supersedes all prior agreements and
undertakings, both written and oral, of the parties hereto, or any of them, with respect to the
subject matter hereof and constitutes the entire understanding of the parties hereto with respect
to the subject matter hereof. This Agreement may not be waived, amended or modified except in
writing signed by each party to be bound hereby.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">&#091;SIGNATURE PAGES FOLLOW&#093;
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->25<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Please indicate your willingness to act as Dealer Manager on the terms set forth herein and
your acceptance of the foregoing provisions by signing in the space provided below for that purpose
and returning to us a copy of this letter, whereupon this letter shall constitute a binding
agreement among us.
</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">Very truly yours,<BR>
<BR>
TITAN INTERNATIONAL, INC.<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>


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

<!-- PAGEBREAK -->
<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 align="left" style="font-size: 10pt; margin-top: 6pt">Accepted as of the date first above written:

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">MERRILL LYNCH &#038; CO.,<BR>
MERRILL LYNCH, PIERCE, FENNER &#038; SMITH<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;INCORPORATED

</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="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="66%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">By:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</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"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Name:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</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">Title:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


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

<!-- PAGEBREAK -->
<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 align="right" style="font-size: 10pt; margin-top: 12pt">Schedule&nbsp;I
</DIV>


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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The compensation due to the Dealer Manager shall be a fee equal to $5.00 for each $1,000 principal
amount of the Securities validly tendered and accepted by the Company pursuant to the Offer.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->S-I-1<!-- /Folio -->
</DIV>

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


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">FORM OF OPINION OF CHERI T. HOLLEY,<BR>
VICE PRESIDENT, SECRETARY AND GENERAL COUNSEL OF THE<BR>
COMPANY, TO BE DELIVERED PURSUANT TO SECTION 9
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">&#091;To Be Dated the Commencement Date or Acceptance Date, as Applicable&#093;

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The information in the Company&#146;s Form 10-K for the year ended December&nbsp;31, 2005 under &#147;Properties&#148;
and &#147;Legal Proceedings&#148; that is incorporated by reference in the Offer to Increase Conversion Rate
Upon the Conversion of Titan International Inc.&#146;s 5.25% Senior Convertible Notes due 2009
(&#147;Offering&#148;) has been reviewed by me and is correct in all material respects and to the best of my
knowledge, there is no suit, claim, action, inquiry or investigation, to which the Company or any
subsidiary is a party, or to which the property of the Company or any subsidiary thereof is
subject, which would reasonably be expected to result in a Material Adverse Effect as of the date
December&nbsp;31, 2005.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The information in the Company&#146;s filings on Form 8-K from December&nbsp;31, 2005 to the present and in
the Company&#146;s 2006 Proxy Statement (other than the financial statements and schedules and other
financial data included or incorporated by reference therein or omitted therefrom, as to which I
express no opinion), when they were filed with the Commission, complied as to form in all material
respects with the requirements of the 1934 Act and the rules and regulations of the Commission
thereunder.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">I have reviewed our Legal Proceedings and to the best of my knowledge there is no existing or
threatened litigation that would interfere with this Offering, such as a temporary restraining
order or such other litigation which would reasonably be expected to result in a Material Adverse
Effect as of February&nbsp;16, 2007.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->A-1<!-- /Folio -->
</DIV>

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


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">FORM OF OPINION OF BODMAN LLP,<BR>
COUNSEL FOR THE COMPANY,<BR>
TO BE DELIVERED PURSUANT TO SECTION 9
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">&#091;To Be Dated the Commencement Date or Acceptance Date, as Applicable&#093;

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;Except as described in the Registration Statement or Prospectus, there are no preemptive
or other rights to subscribe for or to purchase, nor any restriction upon the voting or transfer
of, any shares of capital stock of the Company pursuant to the Company&#146;s charter or by-laws or any
agreement or other instrument filed as an exhibit to the documents incorporated by reference into
the Registration Statement or Prospectus.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;Assuming the due authorization, execution and delivery of the Dealer Manager Agreement by
the Company, the Dealer Manager Agreement constitutes a valid and binding agreement of the Company,
enforceable against the Company in accordance with its terms, except as the enforcement thereof may
be limited by bankruptcy, insolvency (including, without limitation, all laws relating to
fraudulent transfers), reorganization, moratorium or other similar laws relating to or affecting
enforcement of creditors&#146; rights generally, or by general principles of equity (regardless of
whether enforcement is considered in a proceeding in equity or at law).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;The documents incorporated by reference in the Registration Statement or Prospectus
(other than the financial statements and supporting schedules therein and the Proxy Statement filed
with the Commission on March&nbsp;30, 2006, and the Current Reports
on Form 8-K, as to which no opinion need be rendered), when they were
filed with the Commission complied as to form in all material respects with the requirements of the
1934 Act and the rules and regulations of the Commission thereunder.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;No consent, approval, authorization or order of, or filing with, any governmental agency
or body or any court is required for the consummation of, and the consummation of the transactions
contemplated by, the Dealer Manager Agreement or the Offer (including but not limited to the
issuance and delivery of the Shares pursuant to the Offer), except such as have been obtained or
such as may be required under the 1933 Act or the 1934 Act or such as may be required under foreign
or state securities laws, as to which such counsel need express no opinion.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;The (a)&nbsp;performance by the Company of the Dealer Manager Agreement, (b)&nbsp;making and
consummation of the Offer by the Company (including but not limited to the issuance and delivery of
Shares thereunder), (c)&nbsp;use of the Offer Material and the filing of the Registration Statement, the
Prospectus and the Schedule&nbsp;TO, and any amendments or supplements thereto and (d)&nbsp;consummation by
the Company of the transactions contemplated by the
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->B-1<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<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 align="left" style="font-size: 10pt; margin-top: 6pt">Dealer Manager Agreement, in each case, have been duly authorized by all necessary corporate action
on the part of the Company and (1)&nbsp;will not result in any violation of the charter or by-laws of
the Company, (2)&nbsp;will not result in a breach or violation of any of the terms or provisions of, or
constitute an event of default (or an event which with notice or lapse of time or both would become
an event of default) under, or give to others any rights of termination, amendment, acceleration or
cancellation of, or result in the creation or imposition of any lien, charge or encumbrance upon
any property or assets of the Company under, (i)&nbsp;any agreement or instrument that is listed as an
exhibit to the Company&#146;s Annual Report on Form 10-K, as amended, for the year ended December&nbsp;31,
2005 or the Company&#146;s Quarterly Reports on Form 10-Q and Current Reports on Form 8-K filed
thereafter or (ii)&nbsp;any existing applicable law, rule or regulation, or any judgment, order or
decree known to such counsel, of any government, governmental or regulatory instrumentality or
agency or court having jurisdiction over the Company or any of its properties or assets, except in
the case of clause (2)&nbsp;such breaches, violations, defaults, rights, creations and impositions which
individually or the aggregate would not result in a Material Adverse Effect.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)&nbsp;To the best of our knowledge, no default by the Company or any &#147;significant subsidiary&#148;
of the Company (as such term is defined in Rule&nbsp;1-02 of Regulation&nbsp;S-X) exists in the due
performance or observance of any material obligation, agreement, covenant or condition contained in
any material contract, indenture, mortgage, loan agreement, note lease or other agreement or
instrument.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii)&nbsp;The Company is not required, and upon consummation of the Offer and any resulting
issuance and delivery of the Shares as contemplated by the Offer, will not be required, to register
as an &#147;investment company&#148; under the Investment Company Act of 1940, as amended.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii)&nbsp;The Registration Statement and the Prospectus, excluding the documents incorporated by
reference therein, and any amendment or supplement thereto, excluding the documents incorporated by
reference therein, at the time of filing with the Commission complied as to form in all material
respects with the requirements of the 1933 Act, it being understood that such counsel need express
no opinion as to the financial statements, including the notes thereto and supporting schedules, or
other financial data contained therein or with respect to matters relating to federal income tax
consequences of the Offer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix)&nbsp;The Schedule&nbsp;TO and any amendments thereto, excluding the Incorporated Documents therein,
complies as to form in all material respects with the applicable requirements of the 1934 Act, it
being understood that such counsel need express no opinion as to the financial statements,
including the notes thereto and supporting schedules, or other financial data contained or
incorporated by reference therein or with respect to matters relating to federal income tax
consequences of the Offer.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->B-2<!-- /Folio -->
</DIV>

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

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x)&nbsp;The statements in the Prospectus under &#147;The Conversion Offer,&#148; &#147;Description of Our
Convertible Notes&#148; and &#147;Description of Capital Stock,&#148; and in the Registration Statement under Item
20, insofar as such statements constitute a summary of documents referred to therein or matters
of law, fairly summarize in all material respects the information called for with respect to such
documents and matters.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi)&nbsp;The statements in the Prospectus under &#147;Material U.S. Federal Income Tax Considerations,&#148;
insofar as such statements constitute a summary of the United States federal tax laws referred to
therein, are accurate and fairly summarize in all material respects the United States federal tax
laws referred to therein.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Such counsel has participated in discussions with officers and other representatives of the Company
and representatives of the Dealer Manager at which discussions the contents of the Registration
Statement, the Prospectus and the Schedule&nbsp;TO and related matters were discussed and, although such
counsel has not independently verified, is not passing upon and does not assume any responsibility
for the accuracy, completeness or fairness of the statements contained in the Registration
Statement, the Prospectus or the Schedule&nbsp;TO (except to the extent provided in paragraphs (xi)&nbsp;and
(xi)&nbsp;in our opinion of even date), such counsel advises you that, on the basis of the foregoing,
nothing has come to such counsel&#146;s attention that would lead such counsel to believe that (a)&nbsp;the
Registration Statement or any amendment thereto, at the time it was filed with the Commission or as
of the date hereof, contained or contains an untrue statement of a material fact or omitted or
omits to state a material fact required to be stated therein or necessary to make the statements
therein not misleading; (b)&nbsp;the Prospectus or any amendment or supplement thereto, at the time the
Registration Statement was filed with the Commission or as of the date hereof, included or includes
an untrue statement of a material fact or omitted or omits to state a material fact necessary in
order to make the statements therein, in the light of the circumstances under which they were made,
not misleading or (c)&nbsp;the Schedule&nbsp;TO or any amendment or supplement thereto at the time it was
filed with the Commission or as of the date hereof, included or includes an untrue statement of a
material fact or omitted or omits to state a material fact required to be stated therein or
necessary in order to make the statements therein, in the light of the circumstances under which
they were made, not misleading. It is understood that such counsel expresses no view as to the
financial statements, including the notes thereto and supporting schedules, or other financial
information and data contained in the Registration Statement, the Prospectus or the Schedule
TO.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->B-3<!-- /Folio -->
</DIV>

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

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




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


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">FORM OF OPINION OF SCHMIEDESKAMP, ROBERTSON, NEU &#038;<BR>
MITCHELL, ILLINOIS COUNSEL TO THE COMPANY,<BR>
TO BE DELIVERED PURSUANT TO SECTION 9
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">&#091;To Be Dated the Commencement Date or Acceptance Date, as Applicable&#093;

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;The Company is duly incorporated, validly existing as a corporation and in good standing
under the laws of the State of Illinois.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;The Company has corporate power and authority to own, lease and operate its properties
and to conduct its business as described in the Prospectus, to enter into and perform its
obligations under the Dealer Manager Agreement and to make and consummate the Offer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;The Company is duly qualified as a foreign corporation to transact business and is in
good standing in each jurisdiction in which such qualification is required, whether by reason of
the ownership or leasing of property or the conduct of business, except where the failure so to
qualify or to be in good standing would not result in a Material Adverse Effect.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;The Shares have been duly authorized for issuance and conform to the description thereof
contained in the Prospectus. When any Shares are issued and delivered by the Company as provided in
the Offer Material, such Shares will be validly issued, fully paid and nonassessable, and the
stockholders of the Company have no preemptive rights with respect to the Shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;The Dealer Manager Agreement has been duly authorized, executed and delivered by the
Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)&nbsp;The (a)&nbsp;performance by the Company of the Dealer Manager Agreement, (b)&nbsp;making and
consummation of the Offer by the Company (including but not limited to the issuance and delivery of
Shares thereunder), (c)&nbsp;use of the Offer Material and the filing of the Registration Statement, the
Prospectus and the Schedule&nbsp;TO, and any amendments or supplements thereto and (d)&nbsp;consummation by
the Company of the transactions contemplated by the Dealer Manager Agreement, in each case, have
been duly authorized by all necessary corporate action on the part of the Company and (1)&nbsp;will not
result in any violation of the charter or by-laws of the Company, (2)&nbsp;will not result in a breach
or violation of any of the terms or provisions of, or constitute an event of default (or an event
which with notice or lapse of time or both would become an event of default) under, or give to
others any rights of termination, amendment, acceleration or cancellation of, or result in the
creation or imposition of any lien, charge or encumbrance upon any property or assets of the
Company under, (i)&nbsp;any agreement or instrument that is listed as an exhibit to the Company&#146;s Annual
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->C-1<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<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 align="left" style="font-size: 10pt; margin-top: 6pt">Report on Form 10-K, as amended, for the year ended December&nbsp;31, 2005 or the Company&#146;s Quarterly
Reports on Form 10-Q and Current Reports on Form 8-K filed thereafter or (ii)&nbsp;any existing
applicable law, rule or regulation, or any judgment, order or decree known to such counsel, of any
government, governmental or regulatory instrumentality or agency or court having jurisdiction over
the Company or any of its properties or assets, except in the case of clause (2)&nbsp;such breaches,
violations, defaults, rights, creations and impositions which individually or the aggregate would
not result in a Material Adverse Effect.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(vii) The statements in the Registration Statement under Item&nbsp;20, insofar as such statements constitute a
summary of documents referred to therein or matters of law, fairly summarize in all material
respects the information called for with respect to such documents and matters.
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->C-2<!-- /Folio -->
</DIV>


</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-8.1
<SEQUENCE>3
<FILENAME>k11509aexv8w1.htm
<DESCRIPTION>TAX OPINION OF BODMAN LLP
<TEXT>
<HTML>
<HEAD>
<TITLE>exv8w1</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

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


<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Exhibit&nbsp;8.1</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>OPINION OF BODMAN LLP RE MATERIAL U.S. FEDERAL INCOME TAX CONSIDERATIONS</B>

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>&#091;BODMAN LLP LETTERHEAD&#093;</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">January&nbsp;19, 2007
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Titan International, Inc.<BR>
2701 Spruce Street<BR>
Quincy, IL 62301

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Ladies and Gentlemen:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are acting as special counsel for Titan International, Inc., an Illinois corporation (the
&#147;Company&#148;), in connection with its filing with the Securities and Exchange Commission of a
Registration Statement on Form S-4 (the &#147;Registration Statement&#148;) with respect to the registration
under the Securities Act of 1933 (the &#147;Act&#148;) of up to 6,577,200 shares of the Company&#146;s common
stock, no par value (&#147;Common Stock&#148;), issued on conversion of the Company&#146;s 5.25% Senior
Convertible Notes due 2009 (the &#147;Convertible Notes&#148;). The Convertible Notes were issued pursuant to
an Indenture, dated July&nbsp;26, 2004 (the &#147;Indenture&#148;), between the Company and U.S. Bank National
Association, as trustee. Unless otherwise indicated, capitalized terms not defined herein have the
meanings set forth in the Registration Statement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In connection with our opinion, we have reviewed (without any independent verification of the
matters set forth therein) the Registration Statement, including the exhibits thereto, the
Indenture and such other documents, records and instruments that we have deemed necessary or
appropriate for purposes of this opinion. We have relied upon the truth and accuracy at all
relevant times of the facts and statements contained in the Registration Statement and the
Indenture, and have assumed that the Conversion will be consummated in accordance with all the
terms set forth therein and without any waiver of any material provision thereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Based upon the foregoing, and subject to the assumptions, exceptions, limitations and
qualifications set forth herein and set forth in the discussion in the Registration Statement under
the heading &#147;Material U.S. Federal Income Tax
Considerations,&#148; we hereby confirm that the opinion stated in the Registration Statement, under the heading &#147;Material U.S. Federal Income
Tax Considerations,&#148;constitutes our opinion as to the material
U.S. federal income tax consequences of the Conversion relevant to
holders of the Convertible Notes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This opinion represents our best judgment regarding the application of federal income tax laws
under the Internal Revenue Code of 1986, as amended, existing judicial decisions, administrative
regulations and published rulings and procedures. Our opinion is not binding upon the Internal
Revenue Service or the courts, and there is no assurance that the Internal Revenue Service will not
successfully assert a contrary position. This opinion is being delivered prior to the consummation
of the proposed transaction and therefore is prospective and dependent on future events. No
assurance can be given that future legislative, judicial or administrative changes, on either a
prospective or retroactive basis, or future factual developments, would not adversely affect the
accuracy of the conclusion stated herein. We undertake no responsibility to advise you of any new
developments in the facts or in the application or interpretation of the federal income tax laws.
Furthermore, in the event any one of the facts or statements or assumptions upon which we have
relied to issue this opinion is incorrect, our opinion might be adversely affected and may not be
relied upon.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This opinion addresses only the matters described above, and does not address any other
federal, state, local or foreign tax consequences that may result from the Conversion, or any other
transaction (including any transaction undertaken in connection with the foregoing).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We hereby consent to the filing of this opinion as Exhibit&nbsp;8.1 to the Registration Statement
filed by the Company to register the Common Stock under the Act and to the reference to us in the
prospectus and any prospectus supplements contained therein under the caption &#147;Material U.S. Federal Income Tax
Considerations.&#148; In giving such consent, we do not hereby admit that we are included in the
category of persons whose consent is required under Section&nbsp;7 of the Act or the rules and
regulations of the Securities and Exchange Commission promulgated thereunder.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</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="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="20%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<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">Very truly yours,
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <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">&nbsp;</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">BODMAN LLP</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <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">&nbsp;</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">/s/ Barbara A. Bowman</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</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">By: Barbara A. Bowman, a partner</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-23.1
<SEQUENCE>4
<FILENAME>k11509aexv23w1.htm
<DESCRIPTION>CONSENT OF PRICEWATERHOUSECOOPERS LP
<TEXT>
<HTML>
<HEAD>
<TITLE>exv23w1</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

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


<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Exhibit&nbsp;23.1</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We hereby consent to the incorporation by reference in this Registration Statement on Form S-4
of our report dated February&nbsp;23, 2006 relating to the financial statements, financial statement
schedule, management&#146;s assessment of the effectiveness of internal control over financial reporting
and the effectiveness of internal control over financial reporting, which appears in Titan
International Inc.&#146;s Annual Report on Form 10-K for the year ended December&nbsp;31, 2005. We also
consent to the references to us under the headings &#147;Experts&#148; and &#147;Selected Financial Data&#148; in such
Registration Statement.
</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="30%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="69%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ PricewaterhouseCoopers LLP
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
St. Louis, MO
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">

<TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">February&nbsp;16, 2007</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



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


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