SUBSIDIARY GUARANTOR FINANCIAL INFORMATION

The Company's 7.875% senior secured notes and 5.625% convertible senior subordinated 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 March 31, 2013
	Titan Intl., Inc. (Parent)			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net sales	$	—		$	323,894	$	254,493		$	—		$	578,387
Cost of sales	390			256,226		225,020			—			481,636
Gross profit (loss)	(390		)	67,668		29,473			—			96,751
Selling, general and administrative expenses	2,317			17,824		22,302			—			42,443
Research and development expenses	10			1,313		1,379			—			2,702
Royalty expense	—			1,778		1,945			—			3,723
Income (loss) from operations	(2,717		)	46,753		3,847			—			47,883
Interest expense	(7,731		)	—		(2,710		)	—			(10,441		)
Convertible debt conversion charge	(7,273		)	—		—			—			(7,273		)
Intercompany interest income (expense)	497			—		(497		)	—			—
Other income	644			24		751			—			1,419
Income (loss) before income taxes	(16,580		)	46,777		1,391			—			31,588
Provision (benefit) for income taxes	(8,335		)	16,953		3,581			—			12,199
Equity in earnings of subsidiaries	27,634			—		18,632			(46,266		)	—
Net income (loss)	19,389			29,824		16,442			(46,266		)	19,389
Net loss noncontrolling interests	—			—		—			(86		)	(86		)
Net income (loss) attributable to Titan	$	19,389		$	29,824	$	16,442		$	(46,180	)	$	19,475



(Amounts in thousands)	Consolidating Condensed Statements of Operations For the Three Months Ended March 31, 2012
	Titan Intl., Inc. (Parent)			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net sales	$	—		$	366,181	$	96,907		$	—		$	463,088
Cost of sales	302			280,031		89,392			—			369,725
Gross profit (loss)	(302		)	86,150		7,515			—			93,363
Selling, general and administrative expenses	10,587			15,157		5,091			—			30,835
Research and development expenses	124			1,232		152			—			1,508
Royalty expense	—			1,693		656			—			2,349
Income (loss) from operations	(11,013		)	68,068		1,616			—			58,671
Interest expense	(6,062		)	—		(233		)	—			(6,295		)
Other income	2,174			314		623			—			3,111
Income (loss) before income taxes	(14,901		)	68,382		2,006			—			55,487
Provision (benefit) for income taxes	(6,952		)	25,114		1,931			—			20,093
Equity in earnings of subsidiaries	43,343			—		32,552			(75,895		)	—
Net income (loss)	35,394			43,268		32,627			(75,895		)	35,394
Net loss noncontrolling interests	—			—		—			(25		)	(25		)
Net income (loss) attributable to Titan	$	35,394		$	43,268	$	32,627		$	(75,870	)	$	35,419



(Amounts in thousands)	Consolidating Condensed Statements of Comprehensive Income For the Three Months Ended March 31, 2013
	Titan Intl., Inc. (Parent)			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net income (loss)	$	19,389		$	29,824	$	16,442		$	(46,266	)	$	19,389
Unrealized gain (loss) on investments, net of tax	(3		)	—		(3		)	3			(3		)
Currency translation adjustment, net	504			—		(504		)	504			504
Pension liability adjustments, net of tax	951			781		170			(951		)	951
Comprehensive income (loss)	20,841			30,605		16,105			(46,710		)	20,841
Net comprehensive loss attributable to noncontrolling interests	—			—		—			(86		)	(86		)
Comprehensive income (loss) attributable to Titan	$	20,841		$	30,605	$	16,105		$	(46,624	)	$	20,927



(Amounts in thousands)	Consolidating Condensed Statements of Comprehensive Income For the Three Months Ended March 31, 2012
	Titan Intl., Inc. (Parent)		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Consolidated
Net income (loss)	$	35,394	$	43,268	$	32,627	$	(75,895	)	$	35,394
Unrealized gain (loss) on investments, net of tax	5,917		—		5,917		(5,917		)	5,917
Currency translation adjustment, net	3,567		—		3,567		(3,567		)	3,567
Pension liability adjustments, net of tax	836		790		46		(836		)	836
Comprehensive income (loss)	45,714		44,058		42,157		(86,215		)	45,714
Net comprehensive loss attributable to noncontrolling interests	—		—		—		(25		)	(25		)
Comprehensive income (loss) attributable to Titan	$	45,714	$	44,058	$	42,157	$	(86,190	)	$	45,739



(Amounts in thousands)	Consolidating Condensed Balance Sheets March 31, 2013
	Titan Intl., Inc. (Parent)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Consolidated
Assets
Cash and cash equivalents	$	423,372		$	4		$	85,071	$	—		$	508,447
Accounts receivable	—			160,779			168,589		—			329,368
Inventories	—			148,590			229,777		—			378,367
Prepaid and other current assets	60,721			2,762			43,592		—			107,075
Total current assets	484,093			312,135			527,029		—			1,323,257
Property, plant and equipment, net	13,170			209,264			344,115		—			566,549
Investment in subsidiaries	556,750			—			105,859		(662,609		)	—
Other assets	38,540			1,834			124,169		—			164,543
Total assets	$	1,092,553		$	523,233		$	1,101,172	$	(662,609	)	$	2,054,349
Liabilities and Stockholders’ Equity
Short-term debt	$	3,995		$	—		$	226,663	$	—		$	230,658
Accounts payable	647			25,672			184,266		—			210,585
Other current liabilities	9,065			53,279			66,560		—			128,904
Total current liabilities	13,707			78,951			477,489		—			570,147
Long-term debt	601,261			—			32,910		—			634,171
Other long-term liabilities	44,817			34,512			81,786		—			161,115
Intercompany accounts	(230,075		)	(40,526		)	270,601		—			—
Titan stockholders' equity	662,843			450,296			238,386		(688,682		)	662,843
Noncontrolling interests	—			—			—		26,073			26,073
Total liabilities and stockholders’ equity	$	1,092,553		$	523,233		$	1,101,172	$	(662,609	)	$	2,054,349



(Amounts in thousands)	Consolidating Condensed Balance Sheets December 31, 2012
	Titan Intl., Inc. (Parent)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Consolidated
Assets
Cash and cash equivalents	$	103,154		$	4		$	85,956	$	—		$	189,114
Accounts receivable	(72		)	128,917			168,953		—			297,798
Inventories	—			142,070			224,315		—			366,385
Prepaid and other current assets	49,438			17,021			59,239		—			125,698
Total current assets	152,520			288,012			538,463		—			978,995
Property, plant and equipment, net	11,497			208,734			348,113		—			568,344
Investment in subsidiaries	527,489			—			86,189		(613,678		)	—
Other assets	35,564			499			109,705		—			145,768
Total assets	$	727,070		$	497,245		$	1,082,470	$	(613,678	)	$	1,693,107
Liabilities and Stockholders’ Equity
Short-term debt	$	—		$	—		$	145,801	$	—		$	145,801
Accounts payable	1,000			21,222			157,843		—			180,065
Other current liabilities	13,911			55,290			66,634		—			135,835
Total current liabilities	14,911			76,512			370,278		—			461,701
Long-term debt	312,881			—			128,557		—			441,438
Other long-term liabilities	44,512			35,482			89,361		—			169,355
Intercompany accounts	(239,688		)	(34,272		)	273,960		—			—
Titan stockholders' equity	594,454			419,523			220,314		(639,837		)	594,454
Noncontrolling interests	—			—			—		26,159			26,159
Total liabilities and stockholders’ equity	$	727,070		$	497,245		$	1,082,470	$	(613,678	)	$	1,693,107



(Amounts in thousands)	Consolidating Condensed Statements of Cash Flows For the Three Months Ended March 31, 2013
	Titan Intl., Inc. (Parent)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidated
Net cash provided by (used for) operating activities	$	(4,453	)	$	9,099		$	16,634		$	21,280
Cash flows from investing activities:
Capital expenditures	(1,955		)	(9,099		)	(10,120		)	(21,174		)
Other, net	—			—			(219		)	(219		)
Net cash used for investing activities	(1,955		)	(9,099		)	(10,339		)	(21,393		)
Cash flows from financing activities:
Proceeds from borrowings	345,313			—			—			345,313
Payment on debt	—			—			(18,059		)	(18,059		)
Term loan borrowing	—			—			10,818			10,818
Convertible note conversion	(14,090		)	—			—			(14,090		)
Proceeds from exercise of stock options	739			—			—			739
Excess tax benefit from stock options exercised	(29		)	—			—			(29		)
Payment of financing fees	(5,064		)	—			—			(5,064		)
Dividends paid	(243		)	—			—			(243		)
Net cash provided by (used for) financing activities	326,626			—			(7,241		)	319,385
Effect of exchange rate change on cash	—			—			61			61
Net increase (decrease) in cash and cash equivalents	320,218			—			(885		)	319,333
Cash and cash equivalents, beginning of period	103,154			4			85,956			189,114
Cash and cash equivalents, end of period	$	423,372		$	4		$	85,071		$	508,447



(Amounts in thousands)	Consolidating Condensed Statements of Cash Flows For the Three Months Ended March 31, 2012
	Titan Intl., Inc. (Parent)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidated
Net cash provided by (used for) operating activities	$	(7,535	)	$	6,025		$	22,158		$	20,648
Cash flows from investing activities:
Capital expenditures	(1,378		)	(6,046		)	(731		)	(8,155		)
Other, net	—			21			87			108
Net cash used for investing activities	(1,378		)	(6,025		)	(644		)	(8,047		)
Cash flows from financing activities:
Payment on debt	—			—			(12,444		)	(12,444		)
Proceeds from exercise of stock options	370			—			—			370
Excess tax benefit from stock options exercised	6			—			—			6
Dividends paid	(211		)	—			—			(211		)
Net cash provided by (used for) financing activities	165			—			(12,444		)	(12,279		)
Effect of exchange rate change on cash	—			—			(184		)	(184		)
Net increase (decrease) in cash and cash equivalents	(8,748		)	—			8,886			138
Cash and cash equivalents, beginning of period	125,266			4			3,900			129,170
Cash and cash equivalents, end of period	$	116,518		$	4		$	12,786		$	129,308