The Company’s 5.625% convertible senior subordinated notes are guaranteed by the following subsidiaries of the Company: Titan Tire Corporation, Titan Tire Corporation of Bryan, Titan Tire Corporation of Freeport, Titan Tire Corporation of Texas, Titan Wheel Corporation of Illinois, and Titan Wheel Corporation of Virginia. The note guarantees are full and unconditional, joint and several obligations of the guarantors. The following condensed consolidating financial statements are presented using the equity method of accounting. Certain sales & marketing expenses recorded by non-guarantor subsidiaries have not been allocated to the guarantor subsidiaries.

	Consolidating Condensed Statements of Operations
(Amounts in thousands)
	For the Three Months Ended June 30, 2011
	Titan						Non-
	Intl., Inc.			Guarantor			Guarantor
	(Parent)			Subsidiaries			Subsidiaries			Eliminations			Consolidated
Net sales	$	0		$	310,392		$	94,055		$	0		$	404,447
Cost of sales		541			254,559			85,456			0			340,556
Gross profit (loss)		(541	)		55,833			8,599			0			63,891
Selling, general and administrative expenses		4,551			2,462			9,560			0			16,573
Research and development expenses		4			1,010			0			0			1,014
Royalty expense		0			1,767			583			0			2,350
Income (loss) from operations		(5,096	)		50,594			(1,544	)		0			43,954
Interest expense		(6,032	)		0			(117	)		0			(6,149	)
Other income (expense)		1,879			(39	)		430			0			2,270
Income (loss) before income taxes		(9,249	)		50,555			(1,231	)		0			40,075
Provision (benefit) for income taxes		(3,397	)		18,644			(449	)		0			14,798
Equity in earnings of subsidiaries		31,129			(73	)		73			(31,129	)		0
Net income (loss)		25,277			31,838			(709	)		(31,129	)		25,277
Net (loss) attributable to noncontrolling interests		0			0			0			(8	)		(8	)
Net income (loss)	$	25,277		$	31,838		$	(709	)	$	(31,121	)	$	25,285

	Consolidating Condensed Statements of Operations
(Amounts in thousands)
	For the Three Months Ended June 30, 2010
	Titan						Non-
	Intl., Inc.			Guarantor			Guarantor
	(Parent)			Subsidiaries			Subsidiaries			Eliminations			Consolidated
Net sales	$	0		$	229,656		$	0		$	0		$	229,656
Cost of sales		285			195,022			446			0			195,753
Gross profit (loss)		(285	)		34,634			(446	)		0			33,903
Selling, general and administrative expenses		4,917			2,316			4,929			0			12,162
Research and development expenses		0			1,900			0			0			1,900
Royalty expense		0			2,413			0			0			2,413
Income (loss) from operations		(5,202	)		28,005			(5,375	)		0			17,428
Interest expense		(6,790	)		0			0			0			(6,790	)
Loss on senior note repurchase		(2,722	)		0			0			0			(2,722	)
Other income (expense)		(464	)		13			24			0			(427	)
Income (loss) before income taxes		(15,178	)		28,018			(5,351	)		0			7,489
Provision (benefit) for income taxes		(5,919	)		10,926			(2,087	)		0			2,920
Equity in earnings of subsidiaries		13,828			(77	)		77			(13,828	)		0
Net income (loss)	$	4,569		$	17,015		$	(3,187	)	$	(13,828	)	$	4,569

	Consolidating Condensed Statements of Operations
(Amounts in thousands)
	For the Six Months Ended June 30, 2011
	Titan						Non-
	Intl., Inc.			Guarantor			Guarantor
	(Parent)			Subsidiaries			Subsidiaries			Eliminations			Consolidated
Net sales	$	0		$	591,221		$	94,055		$	0		$	685,276
Cost of sales		902			478,313			85,898			0			565,113
Gross profit (loss)		(902	)		112,908			8,157			0			120,163
Selling, general and administrative expenses		19,956			5,187			16,723			0			41,866
Research and development expenses		4			2,193			0			0			2,197
Royalty expense		0			4,684			583			0			5,267
Income (loss) from operations		(20,862	)		100,844			(9,149	)		0			70,833
Interest expense		(12,312	)		0			(117	)		0			(12,429	)
Noncash convertible debt conversion charge		(16,135	)		0			0			0			(16,135	)
Other income (expense)		2,196			(241	)		508			0			2,463
Income (loss) before income taxes		(47,113	)		100,603			(8,758	)		0			44,732
Provision (benefit) for income taxes		(11,436	)		37,162			(3,235	)		0			22,491
Equity in earnings of subsidiaries		57,918			(133	)		133			(57,918	)		0
Net income (loss)		22,241			63,308			(5,390	)		(57,918	)		22,241
Net (loss) attributable to noncontrolling interests		0			0			0			(8	)		(8	)
Net income (loss)	$	22,241		$	63,308		$	(5,390	)	$	(57,910	)	$	22,249

	Consolidating Condensed Statements of Operations
(Amounts in thousands)
	For the Six Months Ended June 30, 2010
	Titan						Non-
	Intl., Inc.			Guarantor			Guarantor
	(Parent)			Subsidiaries			Subsidiaries			Eliminations			Consolidated
Net sales	$	0		$	426,104		$	0		$	0		$	426,104
Cost of sales		1,609			363,572			933			0			366,114
Gross profit (loss)		(1,609	)		62,532			(933	)		0			59,990
Selling, general and administrative expenses		9,781			4,650			9,540			0			23,971
Research and development expenses		0			3,927			0			0			3,927
Royalty expense		0			4,534			0			0			4,534
Income (loss) from operations		(11,390	)		49,421			(10,473	)		0			27,558
Interest expense		(13,846	)		0			0			0			(13,846	)
Loss on senior note repurchase		(2,722	)		0			0			0			(2,722	)
Other income (expense)		(174	)		11			69			0			(94	)
Income (loss) before income taxes		(28,132	)		49,432			(10,404	)		0			10,896
Provision (benefit) for income taxes		(10,971	)		19,278			(4,058	)		0			4,249
Equity in earnings of subsidiaries		23,808			(165	)		165			(23,808	)		0
Net income (loss)	$	6,647		$	29,989		$	(6,181	)	$	(23,808	)	$	6,647

	Consolidating Condensed Balance Sheets
(Amounts in thousands)
	June 30, 2011
	Titan					Non-
	Intl., Inc.			Guarantor		Guarantor
	(Parent)			Subsidiaries		Subsidiaries			Eliminations			Consolidated
Assets
Cash and cash equivalents	$	111,146		$	7	$	3,009		$	0		$	114,162
Accounts receivable		0			168,134		75,344			0			243,478
Inventories		0			157,519		26,244			0			183,763
Prepaid and other current assets		19,724			16,340		6,709			0			42,773
Total current assets		130,870			342,000		111,306			0			584,176
Property, plant and equipment, net		8,120			225,832		119,594			0			353,546
Investment in subsidiaries		167,356			9,057		20			(176,433	)		0
Other assets		47,378			1,008		85,584			0			133,970
Total assets	$	353,724		$	577,897	$	316,504		$	(176,433	)	$	1,071,692

Liabilities and Equity
Short-term debt	$	0		$	0	$	10,330		$	0		$	10,330
Accounts payable		1,489			57,482		55,866			0			114,837
Other current liabilities		26,428			39,491		36,433			0			102,352
Total current liabilities		27,917			96,973		102,629			0			227,519
Long-term debt		312,881			0		5,000			0			317,881
Other long-term liabilities		25,845			27,199		74,547			0			127,591
Intercompany accounts		(409,699	)		204,330		205,369			0			0
Titan stockholders’ equity		396,780			249,395		(71,041	)		(178,354	)		396,780
Noncontrolling interests		0			0		0			1,921			1,921
Total liabilities and equity	$	353,724		$	577,897	$	316,504		$	(176,433	)	$	1,071,692

	Consolidating Condensed Balance Sheets
(Amounts in thousands)
	December 31, 2010
	Titan					Non-
	Intl., Inc.			Guarantor		Guarantor
	(Parent)			Subsidiaries		Subsidiaries			Eliminations			Consolidated
Assets
Cash and cash equivalents	$	239,362		$	6	$	132		$	0		$	239,500
Accounts receivable		0			89,004		0			0			89,004
Inventories		0			127,982		0			0			127,982
Prepaid and other current assets		14,732			16,240		482			0			31,454
Total current assets		254,094			233,232		614			0			487,940
Property, plant and equipment, net		7,678			235,143		5,233			0			248,054
Investment in subsidiaries		39,465			9,057		20			(48,542	)		0
Other assets		22,183			869		28,424			0			51,476
Total assets	$	323,420		$	478,301	$	34,291		$	(48,542	)	$	787,470

Liabilities and Stockholders’ Equity
Accounts payable	$	1,406		$	33,473	$	402		$	0		$	35,281
Other current liabilities		16,066			39,186		1,820			0			57,072
Total current liabilities		17,472			72,659		2,222			0			92,353
Long-term debt		373,564			0		0			0			373,564
Other long-term liabilities		9,161			28,083		5,994			0			43,238
Intercompany accounts		(355,092	)		178,164		176,928			0			0
Stockholders’ equity		278,315			199,395		(150,853	)		(48,542	)		278,315
Total liabilities and stockholders’ equity	$	323,420		$	478,301	$	34,291		$	(48,542	)	$	787,470

	Consolidating Condensed Statements of Cash Flows
(Amounts in thousands)
	For the Six Months Ended June 30, 2011
	Titan						Non-
	Intl., Inc.			Guarantor			Guarantor
	(Parent)			Subsidiaries			Subsidiaries			Consolidated
Net cash provided by (used for) operating activities	$	(27,035	)	$	7,157		$	(10,754	)	$	(30,632	)

Cash flows from investing activities:
Capital expenditures		(1,089	)		(8,070	)		(1,037	)		(10,196	)
Acquisitions, net of cash acquired		(99,118	)		0			0			(99,118	)
Other, net		0			914			481			1,395
Net cash used for investing activities		(100,207	)		(7,156	)		(556	)		(107,919	)

Cash flows from financing activities:
Repurchase of senior unsecured notes		(1,064	)		0			0			(1,064	)
Term loan borrowing		0			0			14,148			14,148
Proceeds from exercise of stock options		477			0			0			477
Dividends paid		(387	)		0			0			(387	)
Net cash provided by (used for) financing activities		(974	)		0			14,148			13,174

Effect of exchange rate changes on cash		0			0			39			39

Net increase (decrease) in cash and cash equivalents		(128,216	)		1			2,877			(125,338	)
Cash and cash equivalents, beginning of period		239,362			6			132			239,500
Cash and cash equivalents, end of period	$	111,146		$	7		$	3,009		$	114,162

	Consolidating Condensed Statements of Cash Flows
(Amounts in thousands)
	For the Six Months Ended June 30, 2010
	Titan						Non-
	Intl., Inc.			Guarantor			Guarantor
	(Parent)			Subsidiaries			Subsidiaries			Consolidated
Net cash provided by (used for) operating activities	$	(20,870	)	$	11,659		$	17		$	(9,194	)

Cash flows from investing activities:
Capital expenditures		0			(11,687	)		(48	)		(11,735	)
Other, net		0			38			5			43
Net cash used for investing activities		0			(11,649	)		(43	)		(11,692	)

Cash flows from financing activities:
Repurchase of senior unsecured notes		(49,744	)		0			0			(49,744	)
Proceeds from exercise of stock options		240			0			0			240
Payment of financing fees		(186	)		0			0			(186	)
Dividends paid		(353	)		0			0			(353	)
Net cash used for financing activities		(50,043	)		0			0			(50,043	)

Net decrease in cash and cash equivalents		(70,913	)		10			(26	)		(70,929	)
Cash and cash equivalents, beginning of period		229,004			11			167			229,182
Cash and cash equivalents, end of period	$	158,091		$	21		$	141		$	158,253

The Company’s 7.875% senior secured notes are guaranteed by the following subsidiaries of the Company: Titan Tire Corporation, Titan Tire Corporation of Bryan, Titan Tire Corporation of Freeport, and Titan Wheel Corporation of Illinois. The note guarantees are full and unconditional, joint and several obligations of the guarantors. The following condensed consolidating financial statements are presented using the equity method of accounting. Certain sales & marketing expenses recorded by non-guarantor subsidiaries have not been allocated to the guarantor subsidiaries.

	Consolidating Condensed Statements of Operations
(Amounts in thousands)
	For the Three Months Ended June 30, 2011
	Titan						Non-
	Intl., Inc.			Guarantor			Guarantor
	(Parent)			Subsidiaries			Subsidiaries			Eliminations			Consolidated
Net sales	$	0		$	304,400		$	100,047		$	0		$	404,447
Cost of sales		541			248,999			91,016			0			340,556
Gross profit (loss)		(541	)		55,401			9,031			0			63,891
Selling, general and administrative expenses		4,551			2,357			9,665			0			16,573
Research and development expenses		4			1,003			7			0			1,014
Royalty expense		0			1,767			583			0			2,350
Income (loss) from operations		(5,096	)		50,274			(1,224	)		0			43,954
Interest expense		(6,032	)		0			(117	)		0			(6,149	)
Other income (expense)		1,879			(46	)		437			0			2,270
Income (loss) before income taxes		(9,249	)		50,228			(904	)		0			40,075
Provision (benefit) for income taxes		(3,397	)		18,524			(329	)		0			14,798
Equity in earnings of subsidiaries		31,129			(73	)		73			(31,129	)		0
Net income (loss)		25,277			31,631			(502	)		(31,129	)		25,277
Net (loss) attributable to noncontrolling interests		0			0			0			(8	)		(8	)
Net income (loss)	$	25,277		$	31,631		$	(502	)	$	(31,121	)	$	25,285

	Consolidating Condensed Statements of Operations
(Amounts in thousands)
	For the Three Months Ended June 30, 2010
	Titan						Non-
	Intl., Inc.			Guarantor			Guarantor
	(Parent)			Subsidiaries			Subsidiaries			Eliminations			Consolidated
Net sales	$	0		$	225,163		$	4,493		$	0		$	229,656
Cost of sales		285			189,823			5,645			0			195,753
Gross profit (loss)		(285	)		35,340			(1,152	)		0			33,903
Selling, general and administrative expenses		4,917			2,242			5,003			0			12,162
Research and development expenses		0			1,899			1			0			1,900
Royalty expense		0			2,413			0			0			2,413
Income (loss) from operations		(5,202	)		28,786			(6,156	)		0			17,428
Interest expense		(6,790	)		0			0			0			(6,790	)
Loss on senior note repurchase		(2,722	)		0			0			0			(2,722	)
Other income (expense)		(464	)		13			24			0			(427	)
Income (loss) before income taxes		(15,178	)		28,799			(6,132	)		0			7,489
Provision (benefit) for income taxes		(5,919	)		11,232			(2,393	)		0			2,920
Equity in earnings of subsidiaries		13,828			(77	)		77			(13,828	)		0
Net income (loss)	$	4,569		$	17,490		$	(3,662	)	$	(13,828	)	$	4,569

	Consolidating Condensed Statements of Operations
(Amounts in thousands)
	For the Six Months Ended June 30, 2011
	Titan						Non-
	Intl., Inc.			Guarantor			Guarantor
	(Parent)			Subsidiaries			Subsidiaries			Eliminations			Consolidated
Net sales	$	0		$	579,361		$	105,915		$	0		$	685,276
Cost of sales		902			466,994			97,217			0			565,113
Gross profit (loss)		(902	)		112,367			8,698			0			120,163
Selling, general and administrative expenses		19,956			5,006			16,904			0			41,866
Research and development expenses		4			2,186			7			0			2,197
Royalty expense		0			4,684			583			0			5,267
Income (loss) from operations		(20,862	)		100,491			(8,796	)		0			70,833
Interest expense		(12,312	)		0			(117	)		0			(12,429	)
Noncash convertible debt conversion charge		(16,135	)		0			0			0			(16,135	)
Other income (expense)		2,196			(281	)		548			0			2,463
Income (loss) before income taxes		(47,113	)		100,210			(8,365	)		0			44,732
Provision (benefit) for income taxes		(11,436	)		37,017			(3,090	)		0			22,491
Equity in earnings of subsidiaries		57,918			(133	)		133			(57,918	)		0
Net income (loss)		22,241			63,060			(5,142	)		(57,918	)		22,241
Net (loss) attributable to noncontrolling interests		0			0			0			(8	)		(8	)
Net income (loss)	$	22,241		$	63,060		$	(5,142	)	$	(57,910	)	$	22,249

	Consolidating Condensed Statements of Operations
(Amounts in thousands)
	For the Six Months Ended June 30, 2010
	Titan						Non-
	Intl., Inc.			Guarantor			Guarantor
	(Parent)			Subsidiaries			Subsidiaries			Eliminations			Consolidated
Net sales	$	0		$	417,621		$	8,483		$	0		$	426,104
Cost of sales		1,609			352,823			11,682			0			366,114
Gross profit (loss)		(1,609	)		64,798			(3,199	)		0			59,990
Selling, general and administrative expenses		9,781			4,497			9,693			0			23,971
Research and development expenses		0			3,854			73			0			3,927
Royalty expense		0			4,534			0			0			4,534
Income (loss) from operations		(11,390	)		51,913			(12,965	)		0			27,558
Interest expense		(13,846	)		0			0			0			(13,846	)
Loss on senior note repurchase		(2,722	)		0			0			0			(2,722	)
Other income (expense)		(174	)		40			40			0			(94	)
Income (loss) before income taxes		(28,132	)		51,953			(12,925	)		0			10,896
Provision (benefit) for income taxes		(10,971	)		20,262			(5,042	)		0			4,249
Equity in earnings of subsidiaries		23,808			(165	)		165			(23,808	)		0
Net income (loss)	$	6,647		$	31,526		$	(7,718	)	$	(23,808	)	$	6,647

	Consolidating Condensed Balance Sheets
(Amounts in thousands)
	June 30, 2011
	Titan					Non-
	Intl., Inc.			Guarantor		Guarantor
	(Parent)			Subsidiaries		Subsidiaries			Eliminations			Consolidated
Assets
Cash and cash equivalents	$	111,146		$	4	$	3,012		$	0		$	114,162
Accounts receivable		0			164,243		79,235			0			243,478
Inventories		0			142,267		41,496			0			183,763
Prepaid and other current assets		19,724			15,934		7,115			0			42,773
Total current assets		130,870			322,448		130,858			0			584,176
Property, plant and equipment, net		8,120			210,616		134,810			0			353,546
Investment in subsidiaries		167,356			9,057		10			(176,423	)		0
Other assets		47,378			1,008		85,584			0			133,970
Total assets	$	353,724		$	543,129	$	351,262		$	(176,423	)	$	1,071,692

Liabilities and Equity
Short-term debt	$	0		$	0	$	10,330		$	0		$	10,330
Accounts payable		1,489			55,863		57,485			0			114,837
Other current liabilities		26,428			38,909		37,015			0			102,352
Total current liabilities		27,917			94,772		104,830			0			227,519
Long-term debt		312,881			0		5,000			0			317,881
Other long-term liabilities		25,845			27,137		74,609			0			127,591
Intercompany accounts		(409,699	)		136,566		273,133			0			0
Titan stockholders’ equity		396,780			284,654		(106,310	)		(178,344	)		396,780
Noncontrolling interests		0			0		0			1,921			1,921
Total liabilities and equity	$	353,724		$	543,129	$	351,262		$	(176,423	)	$	1,071,692

	Consolidating Condensed Balance Sheets
(Amounts in thousands)
	December 31, 2010
	Titan					Non-
	Intl., Inc.			Guarantor		Guarantor
	(Parent)			Subsidiaries		Subsidiaries			Eliminations			Consolidated
Assets
Cash and cash equivalents	$	239,362		$	3	$	135		$	0		$	239,500
Accounts receivable		0			85,335		3,669			0			89,004
Inventories		0			113,104		14,878			0			127,982
Prepaid and other current assets		14,732			15,937		785			0			31,454
Total current assets		254,094			214,379		19,467			0			487,940
Property, plant and equipment, net		7,678			218,999		21,377			0			248,054
Investment in subsidiaries		39,465			9,057		10			(48,532	)		0
Other assets		22,183			869		28,424			0			51,476
Total assets	$	323,420		$	443,304	$	69,278		$	(48,532	)	$	787,470

Liabilities and Stockholders’ Equity
Accounts payable	$	1,406		$	32,305	$	1,570		$	0		$	35,281
Other current liabilities		16,066			38,689		2,317			0			57,072
Total current liabilities		17,472			70,994		3,887			0			92,353
Long-term debt		373,564			0		0			0			373,564
Other long-term liabilities		9,161			28,083		5,994			0			43,238
Intercompany accounts		(355,092	)		110,361		244,731			0			0
Stockholders’ equity		278,315			233,866		(185,334	)		(48,532	)		278,315
Total liabilities and stockholders’ equity	$	323,420		$	443,304	$	69,278		$	(48,532	)	$	787,470

	Consolidating Condensed Statements of Cash Flows
(Amounts in thousands)
	For the Six Months Ended June 30, 2011
	Titan						Non-
	Intl., Inc.			Guarantor			Guarantor
	(Parent)			Subsidiaries			Subsidiaries			Consolidated
Net cash provided by (used for) operating activities	$	(27,035	)	$	7,052		$	(10,649	)	$	(30,632	)

Cash flows from investing activities:
Capital expenditures		(1,089	)		(7,965	)		(1,142	)		(10,196	)
Acquisitions, net of cash acquired		(99,118	)		0			0			(99,118	)
Other, net		0			914			481			1,395
Net cash used for investing activities		(100,207	)		(7,051	)		(661	)		(107,919	)

Cash flows from financing activities:
Repurchase of senior unsecured notes		(1,064	)		0			0			(1,064	)
Term loan borrowing		0			0			14,148			14,148
Proceeds from exercise of stock options		477			0			0			477
Dividends paid		(387	)		0			0			(387	)
Net cash provided by (used for) financing activities		(974	)		0			14,148			13,174

Effect of exchange rate changes on cash		0			0			39			39

Net increase (decrease) in cash and cash equivalents		(128,216	)		1			2,877			(125,338	)
Cash and cash equivalents, beginning of period		239,362			3			135			239,500
Cash and cash equivalents, end of period	$	111,146		$	4		$	3,012		$	114,162

	Consolidating Condensed Statements of Cash Flows
(Amounts in thousands)
	For the Six Months Ended June 30, 2010
	Titan						Non-
	Intl., Inc.			Guarantor			Guarantor
	(Parent)			Subsidiaries			Subsidiaries			Consolidated
Net cash provided by (used for) operating activities	$	(20,870	)	$	11,548		$	128		$	(9,194	)

Cash flows from investing activities:
Capital expenditures		0			(11,547	)		(188	)		(11,735	)
Other, net		0			9			34			43
Net cash used for investing activities		0			(11,538	)		(154	)		(11,692	)

Cash flows from financing activities:
Repurchase of senior notes		(49,744	)		0			0			(49,744	)
Proceeds from exercise of stock options		240			0			0			240
Payment of financing fees		(186	)		0			0			(186	)
Dividends paid		(353	)		0			0			(353	)
Net cash used for financing activities		(50,043	)		0			0			(50,043	)

Net increase (decrease) in cash and cash equivalents		(70,913	)		10			(26	)		(70,929	)
Cash and cash equivalents, beginning of period		229,004			8			170			229,182
Cash and cash equivalents, end of period	$	158,091		$	18		$	144		$	158,253