SUBSIDIARY GUARANTOR FINANCIAL INFORMATION- 7.875% SENIOR SECURED NOTES

The Company's 7.875% senior secured notes are guaranteed by the following 100% owned 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 guarantees of the guarantor subsidiaries are subject to release in limited circumstances only upon the occurrence of certain customary conditions. 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.



(Amounts in thousands)	Consolidating Condensed Statements of Operations For the Three Months Ended June 30, 2012
	Titan Intl., Inc. (Parent)			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net sales	$	—		$	367,300	$	91,933		$	—		$	459,233
Cost of sales	257			292,357		84,533			—			377,147
Gross profit (loss)	(257		)	74,943		7,400			—			82,086
Selling, general and administrative expenses	3,396			14,521		5,493			—			23,410
Research and development expenses	48			1,074		67			—			1,189
Royalty expense	—			1,779		873			—			2,652
Supply agreement termination income	—			—		(26,134		)	—			(26,134		)
Income (loss) from operations	(3,701		)	57,569		27,101			—			80,969
Interest expense	(6,045		)	—		(172		)	—			(6,217		)
Other income	283			134		196			—			613
Income (loss) before income taxes	(9,463		)	57,703		27,125			—			75,365
Provision (benefit) for income taxes	1,884			18,740		10,416			—			31,040
Equity in earnings of subsidiaries	55,672			—		27,074			(82,746		)	—
Net income (loss)	44,325			38,963		43,783			(82,746		)	44,325
Net income noncontrolling interests	—			—		—			269			269
Net income (loss) attributable to Titan	$	44,325		$	38,963	$	43,783		$	(83,015	)	$	44,056



(Amounts in thousands)	Consolidating Condensed Statements of Operations For the Three Months Ended June 30, 2011
	Titan Intl., Inc. (Parent)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net sales	$	—		$	304,400		$	100,047		$	—		$	404,447
Cost of sales	541			248,556			91,016			—			340,113
Gross profit (loss)	(541		)	55,844			9,031			—			64,334
Selling, general and administrative expenses	4,551			2,357			9,665			—			16,573
Research and development expenses	4			1,003			7			—			1,014
Royalty expense	—			1,767			583			—			2,350
Income (loss) from operations	(5,096		)	50,717			(1,224		)	—			44,397
Interest expense	(6,032		)	—			(117		)	—			(6,149		)
Other income (expense)	1,879			(46		)	437			—			2,270
Income (loss) before income taxes	(9,249		)	50,671			(904		)	—			40,518
Provision (benefit) for income taxes	(3,397		)	18,688			(329		)	—			14,962
Equity in earnings of subsidiaries	31,408			—			—			(31,408		)	—
Net income (loss)	25,556			31,983			(575		)	(31,408		)	25,556
Net loss noncontrolling interests	—			—			—			(8		)	(8		)
Net income (loss) attributable to Titan	$	25,556		$	31,983		$	(575	)	$	(31,400	)	$	25,564



(Amounts in thousands)	Consolidating Condensed Statements of Operations For the Six Months Ended June 30, 2012
	Titan Intl., Inc. (Parent)			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net sales	$	—		$	733,481	$	188,840		$	—		$	922,321
Cost of sales	559			572,388		173,925			—			746,872
Gross profit (loss)	(559		)	161,093		14,915			—			175,449
Selling, general and administrative expenses	13,983			29,678		10,584			—			54,245
Research and development expenses	172			2,306		219			—			2,697
Royalty expense	—			3,472		1,529			—			5,001
Supply agreement termination income	—			—		(26,134		)	—			(26,134		)
Income (loss) from operations	(14,714		)	125,637		28,717			—			139,640
Interest expense	(12,107		)	—		(405		)	—			(12,512		)
Other income	2,457			448		819			—			3,724
Income (loss) before income taxes	(24,364		)	126,085		29,131			—			130,852
Provision (benefit) for income taxes	(5,068		)	43,854		12,347			—			51,133
Equity in earnings of subsidiaries	99,015			—		59,626			(158,641		)	—
Net income (loss)	79,719			82,231		76,410			(158,641		)	79,719
Net income noncontrolling interests	—			—		—			244			244
Net income (loss) attributable to Titan	$	79,719		$	82,231	$	76,410		$	(158,885	)	$	79,475



(Amounts in thousands)	Consolidating Condensed Statements of Operations For the Six Months Ended June 30, 2011
	Titan Intl., Inc. (Parent)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net sales	$	—		$	579,361		$	105,915		$	—		$	685,276
Cost of sales	902			466,551			97,217			—			564,670
Gross profit (loss)	(902		)	112,810			8,698			—			120,606
Selling, general and administrative expenses	19,956			5,006			16,904			—			41,866
Research and development expenses	4			2,186			7			—			2,197
Royalty expense	—			4,684			583			—			5,267
Income (loss) from operations	(20,862		)	100,934			(8,796		)	—			71,276
Interest expense	(12,312		)	—			(117		)	—			(12,429		)
Noncash convertible debt conversion charge	(16,135		)	—			—			—			(16,135		)
Other income (expense)	2,196			(281		)	548			—			2,463
Income (loss) before income taxes	(47,113		)	100,653			(8,365		)	—			45,175
Provision (benefit) for income taxes	(11,436		)	37,181			(3,090		)	—			22,655
Equity in earnings of subsidiaries	58,197			—			—			(58,197		)	—
Net income (loss)	22,520			63,472			(5,275		)	(58,197		)	22,520
Net loss noncontrolling interests	—			—			—			(8		)	(8		)
Net income (loss) attributable to Titan	$	22,520		$	63,472		$	(5,275	)	$	(58,189	)	$	22,528



(Amounts in thousands)	Consolidating Condensed Statements of Comprehensive Income For the Three Months Ended June 30, 2012
	Titan Intl., Inc. (Parent)			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net income (loss)	$	44,325		$	38,963	$	43,783		$	(82,746	)	$	44,325
Unrealized gain (loss) on investments, net of tax	(5,580		)	—		(5,580		)	5,580			(5,580		)
Currency translation adjustment	(8,136		)	—		(8,136		)	8,136			(8,136		)
Pension liability adjustments, net of tax	836			790		46			(836		)	836
Comprehensive income (loss)	31,445			39,753		30,113			(69,866		)	31,445
Net comprehensive income attributable to noncontrolling interests	—			—		—			269			269
Comprehensive income (loss) attributable to Titan	$	31,445		$	39,753	$	30,113		$	(70,135	)	$	31,176



(Amounts in thousands)	Consolidating Condensed Statements of Comprehensive Income For the Three Months Ended June 30, 2011
	Titan Intl., Inc. (Parent)		Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net income (loss)	$	25,556	$	31,983	$	(575	)	$	(31,408	)	$	25,556
Unrealized gain (loss) on investments, net of tax	14,645		—		14,645			(14,645		)	14,645
Currency translation adjustment	2,932		—		2,932			(2,932		)	2,932
Pension liability adjustments, net of tax	592		553		39			(592		)	592
Comprehensive income (loss)	43,725		32,536		17,041			(49,577		)	43,725
Net comprehensive loss attributable to noncontrolling interests	—		—		—			(8		)	(8		)
Comprehensive income (loss) attributable to Titan	$	43,725	$	32,536	$	17,041		$	(49,569	)	$	43,733



(Amounts in thousands)	Consolidating Condensed Statements of Comprehensive Income For the Six Months Ended June 30, 2012
	Titan Intl., Inc. (Parent)			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net income (loss)	$	79,719		$	82,231	$	76,410		$	(158,641	)	$	79,719
Unrealized gain (loss) on investments, net of tax	337			—		337			(337		)	337
Currency translation adjustment	(4,569		)	—		(4,569		)	4,569			(4,569		)
Pension liability adjustments, net of tax	1,672			1,580		92			(1,672		)	1,672
Comprehensive income (loss)	77,159			83,811		72,270			(156,081		)	77,159
Net comprehensive income attributable to noncontrolling interests	—			—		—			244			244
Comprehensive income (loss) attributable to Titan	$	77,159		$	83,811	$	72,270		$	(156,325	)	$	76,915



(Amounts in thousands)	Consolidating Condensed Statements of Comprehensive Income For the Six Months Ended June 30, 2011
	Titan Intl., Inc. (Parent)		Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net income (loss)	$	22,520	$	63,472	$	(5,275	)	$	(58,197	)	$	22,520
Unrealized gain (loss) on investments, net of tax	13,652		—		(13,652		)	13,652			13,652
Currency translation adjustment	2,932		—		2,932			(2,932		)	2,932
Pension liability adjustments, net of tax	1,185		1,106		79			(1,185		)	1,185
Comprehensive income (loss)	40,289		64,578		(15,916		)	(48,662		)	40,289
Net comprehensive loss attributable to noncontrolling interests	—		—		—			(8		)	(8		)
Comprehensive income (loss) attributable to Titan	$	40,289	$	64,578	$	(15,916	)	$	(48,654	)	$	40,297



(Amounts in thousands)	Consolidating Condensed Balance Sheets June 30, 2012
	Titan Intl., Inc. (Parent)			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Consolidated
Assets
Cash and cash equivalents	$	140,441		$	4	$	9,005		$	—		$	149,450
Accounts receivable	—			181,575		55,843			—			237,418
Inventories	—			151,897		62,961			—			214,858
Prepaid and other current assets	35,691			18,121		14,598			—			68,410
Total current assets	176,132			351,597		142,407			—			670,136
Property, plant and equipment, net	8,159			200,687		115,830			—			324,676
Investment in subsidiaries	271,414			—		69,379			(340,793		)	—
Other assets	43,035			1,351		54,801			—			99,187
Total assets	$	498,740		$	553,635	$	382,417		$	(340,793	)	$	1,093,999
Liabilities and Stockholders’ Equity
Short-term debt	$	—		$	—	$	7,596		$	—		$	7,596
Accounts payable	939			41,157		67,459			—			109,555
Other current liabilities	(3,870		)	60,991		13,343			—			70,464
Total current liabilities	(2,931		)	102,148		88,398			—			187,615
Long-term debt	312,881			—		—			—			312,881
Other long-term liabilities	42,996			36,277		37,154			—			116,427
Intercompany accounts	(329,482		)	27,559		301,923			—			—
Titan stockholders' equity	475,276			387,651		(45,058		)	(342,593		)	475,276
Noncontrolling interests	—			—		—			1,800			1,800
Total liabilities and stockholders’ equity	$	498,740		$	553,635	$	382,417		$	(340,793	)	$	1,093,999



(Amounts in thousands)	Consolidating Condensed Balance Sheets December 31, 2011
	Titan Intl., Inc. (Parent)			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Consolidated
Assets
Cash and cash equivalents	$	125,266		$	4	$	3,900		$	—		$	129,170
Accounts receivable	—			133,320		56,207			—			189,527
Inventories	—			144,511		46,361			—			190,872
Prepaid and other current assets	27,251			15,385		12,388			—			55,024
Total current assets	152,517			293,220		118,856			—			564,593
Property, plant and equipment, net	9,562			205,027		120,153			—			334,742
Investment in subsidiaries	184,307			—		—			(184,307		)	—
Other assets	44,918			1,454		64,579			—			110,951
Total assets	$	391,304		$	499,701	$	303,588		$	(184,307	)	$	1,010,286
Liabilities and Stockholders’ Equity
Short-term debt	$	—		$	—	$	11,723		$	—		$	11,723
Accounts payable	930			33,070		42,574			—			76,574
Other current liabilities	22,687			39,104		25,678			—			87,469
Total current liabilities	23,617			72,174		79,975			—			175,766
Long-term debt	312,881			—		5,000			—			317,881
Other long-term liabilities	29,267			38,125		52,368			—			119,760
Intercompany accounts	(369,700		)	85,560		284,140			—			—
Titan stockholders' equity	395,239			303,842		(117,895		)	(185,947		)	395,239
Noncontrolling interests	—			—		—			1,640			1,640
Total liabilities and stockholders’ equity	$	391,304		$	499,701	$	303,588		$	(184,307	)	$	1,010,286



(Amounts in thousands)	Consolidating Condensed Statements of Cash Flows For the Six Months Ended June 30, 2012
	Titan Intl., Inc. (Parent)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidated
Net cash provided by operating activities	$	15,859		$	11,987		$	20,837		$	48,683
Cash flows from investing activities:
Capital expenditures	(1,338		)	(12,176		)	(5,492		)	(19,006		)
Other, net	—			189			264			453
Net cash used for investing activities	(1,338		)	(11,987		)	(5,228		)	(18,553		)
Cash flows from financing activities:
Payment on debt	—			—			(14,226		)	(14,226		)
Term loan borrowing	—			—			4,378			4,378
Proceeds from exercise of stock options	887			—			—			887
Excess tax benefit from stock options exercised	190			—			—			190
Dividends paid	(423		)	—			—			(423		)
Net cash provided by (used for) financing activities	654			—			(9,848		)	(9,194		)
Effect of exchange rate change on cash	—			—			(656		)	(656		)
Net increase in cash and cash equivalents	15,175			—			5,105			20,280
Cash and cash equivalents, beginning of period	125,266			4			3,900			129,170
Cash and cash equivalents, end of period	$	140,441		$	4		$	9,005		$	149,450



(Amounts in thousands)	Consolidating Condensed Statements of Cash Flows For the Six Months Ended June 30, 2011
	Titan Intl., Inc. (Parent)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidated
Net cash provided by 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		)	—			—			(99,118		)
Other, net	—			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		)	—			—			(1,064		)
Term loan borrowing	—			—			14,148			14,148
Proceeds from exercise of stock options	477			—			—			477
Dividends paid	(387		)	—			—			(387		)
Net cash provided by (used for) financing activities	(974		)	—			14,148			13,174
Effect of exchange rate change on cash	—			—			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