<SUBMISSION>
<ACCESSION-NUMBER>0000950134-04-007943
<TYPE>PRE 14A
<PUBLIC-DOCUMENT-COUNT>1
<PERIOD>20040720
<FILING-DATE>20040520
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>ENCORE WIRE CORP /DE/
<CIK>0000850460
<ASSIGNED-SIC>3350
<IRS-NUMBER>752274963
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>PRE 14A
<ACT>34
<FILE-NUMBER>000-20278
<FILM-NUMBER>04820807
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>1410 MILLWOOD RD
<STREET2>P O BOX 1149
<CITY>MCKINNEY
<STATE>TX
<ZIP>75069
<PHONE>2145629473
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>1410 MILLWOOD RD
<STREET2>P O BOX 1149
<CITY>MCKINNEY
<STATE>TX
<ZIP>75069
</MAIL-ADDRESS>
</FILER>
<DOCUMENT>
<TYPE>PRE 14A
<SEQUENCE>1
<FILENAME>d15648ppre14a.htm
<DESCRIPTION>PRELIMINARY PROXY STATEMENT
<TEXT>
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<HEAD>
<TITLE>pre14a</TITLE>
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<P align="center"><font size="2"><B>UNITED STATES<BR>SECURITIES AND EXCHANGE COMMISSION<BR>
Washington, D.C. 20549</B>
</font>

<P align="center"><FONT size="2"><B>SCHEDULE 14A</B>
</FONT>


<P align="center"><FONT size="2">Proxy Statement Pursuant to Section 14(a) of the Securities<BR>
Exchange Act of 1934 (Amendment No.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;)
</FONT>

<P>
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        <TD width="3%"></TD>
        <TD width="97%"></TD>
</TR>
<TR valign="top">
        <TD>&nbsp;</TD>
        <TD><FONT size="2">Filed by the Registrant &nbsp;&nbsp;<FONT face="wingdings">&#254;</FONT></FONT></TD>
</TR>
<TR valign="top">
        <TD>&nbsp;</TD>
        <TD><FONT size="2">Filed by a Party other than the Registrant &nbsp;&nbsp;<FONT face="wingdings">&#111;</FONT></FONT></TD>
</TR>
<TR><TD>&nbsp;</TD></TR>
<TR valign="top">
        <TD>&nbsp;</TD>
        <TD><FONT size="2">Check the appropriate box:</FONT></TD>
</TR>
</TABLE>
<p>
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<TR>
        <TD width="3%"></TD>
        <TD width="97%"></TD>
</TR>
<TR valign="top">
        <TD>&nbsp;</TD>

<TD><FONT size="2"><FONT face="wingdings">&#254;</FONT>&nbsp;&nbsp; Preliminary Proxy Statement</FONT></TD>
</TR>
<TR valign="top">
        <TD>&nbsp;</TD>

<TD><FONT size="2"><FONT face="wingdings">&#111;</FONT>&nbsp;&nbsp;
<B>Confidential, for Use of the Commission Only (as permitted by
Rule&nbsp;14a-6(e)(2))</B></FONT></TD>
</TR>
<TR valign="top">
        <TD>&nbsp;</TD>

<TD><FONT size="2"><FONT face="wingdings">&#111;</FONT>&nbsp;&nbsp; Definitive Proxy Statement</FONT></TD>
</TR>
<TR valign="top">
        <TD>&nbsp;</TD>
        <TD><FONT size="2"><FONT face="wingdings">&#111;</FONT>&nbsp;&nbsp; Definitive Additional Materials</FONT></TD>
</TR>
<TR valign="top">
        <TD>&nbsp;</TD>

<TD><FONT size="2"><FONT face="wingdings">&#111;</FONT>&nbsp;&nbsp;
Soliciting Material Pursuant to &#167;240.14a-12</FONT></TD>
</TR>
</TABLE>


<P align="center"><FONT size="2"></FONT>
<center>
<P align="center"><FONT size="2"><B>ENCORE WIRE CORPORATION</B><HR size="1" noshade>
(Name of Registrant as Specified In Its Charter)
</FONT>
</center>
<p>
<center>
<P align="center"><FONT size="2"><HR size="1" noshade>(Name of Person(s) Filing Proxy
Statement, if other than the Registrant)
</FONT>
</center>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payment of Filing Fee (Check the appropriate box):
</FONT>

<P>
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        <TD width="97%"></TD>
</TR>
<TR valign="top">
        <TD>&nbsp;</TD>

<TD><FONT size="2"><FONT face="wingdings">&#254;</FONT>&nbsp;&nbsp; No fee required.</FONT></TD>
</TR>
<TR valign="top">
        <TD>&nbsp;</TD>

<TD><FONT size="2"><FONT face="wingdings">&#111;</FONT>&nbsp;&nbsp;
Fee computed on table below per Exchange Act Rules&nbsp;14a-6(i)(4) and
0-11.</FONT></TD>
</TR>
</TABLE>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR>
        <TD width="3%"></TD>
        <TD width="97%"></TD>
</TR>
<TR valign="top">
        <TD>&nbsp;</TD>
        <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1)&nbsp;Title of each class of securities to which transaction applies:</FONT></TD>
</TR>
</TABLE>
<HR size="1" noshade>

<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR>
        <TD width="3%"></TD>
        <TD width="97%"></TD>
</TR>
<TR valign="top">
        <TD>&nbsp;</TD>
        <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2)&nbsp;Aggregate number of securities to which transaction applies:</FONT></TD>
</TR>
</TABLE>
<HR size="1" noshade>

<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR>
        <TD width="3%"></TD>
        <TD width="97%"></TD>
</TR>
<TR valign="top">
        <TD>&nbsp;</TD>
        <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3)&nbsp;Per unit price or other underlying value of transaction computed
pursuant to Exchange Act Rule&nbsp;0-11 (set forth the amount on which the
filing fee is calculated and state how it was determined):</FONT></TD>
</TR>
</TABLE>
<HR size="1" noshade>

<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR>
        <TD width="3%"></TD>
        <TD width="97%"></TD>
</TR>
<TR valign="top">
        <TD>&nbsp;</TD>
        <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4)&nbsp;Proposed maximum aggregate value of transaction:</FONT></TD>
</TR>
</TABLE>
<HR size="1" noshade>

<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR>
        <TD width="3%"></TD>
        <TD width="97%"></TD>
</TR>
<TR valign="top">
        <TD>&nbsp;</TD>
        <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5)&nbsp;Total fee paid:</FONT></TD>
</TR>
</TABLE>
<HR size="1" noshade>

<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR>
        <TD width="3%"></TD>
        <TD width="97%"></TD>
</TR>
<TR valign="top">
        <TD>&nbsp;</TD>
        <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="wingdings">&#111;</FONT>&nbsp;&nbsp; Fee paid previously with preliminary materials.</FONT></TD>
</TR>
</TABLE>
<HR size="1" noshade>

<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR>
        <TD width="3%"></TD>
        <TD width="97%"></TD>
</TR>
<TR valign="top">
        <TD>&nbsp;</TD>
        <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="wingdings">&#111;</FONT>&nbsp;&nbsp; Check box if any part of the fee is offset as provided by Exchange Act
Rule&nbsp;0-11(a)(2) and identify the filing for which the offsetting fee
was paid previously. Identify the previous filing by registration
statement number, or the Form or Schedule and the date of its filing.</FONT></TD>
</TR>
</TABLE>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR>
        <TD width="3%"></TD>
        <TD width="97%"></TD>
</TR>
<TR valign="top">
        <TD>&nbsp;</TD>
        <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1)&nbsp;Amount Previously Paid:</FONT></TD>
</TR>
</TABLE>
<HR size="1" noshade>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR>
        <TD width="3%"></TD>
        <TD width="97%"></TD>
</TR>
<TR valign="top">
        <TD>&nbsp;</TD>
        <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2)&nbsp;Form, Schedule or Registration Statement No.:</FONT></TD>
</TR>
</TABLE>
<HR size="1" noshade>

<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR>
        <TD width="3%"></TD>
        <TD width="97%"></TD>
</TR>
<TR valign="top">
        <TD>&nbsp;</TD>
        <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3)&nbsp;Filing Party:</FONT></TD>
</TR>
</TABLE>
<HR size="1" noshade>

<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR>
        <TD width="3%"></TD>
        <TD width="97%"></TD>
</TR>
<TR valign="top">
        <TD>&nbsp;</TD>
        <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4)&nbsp;Date Filed:</FONT></TD>
</TR>
</TABLE>
<HR size="1" noshade>

<p>


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


<P align="center" style="font-size: 10pt"><B>ENCORE WIRE CORPORATION</B>



<P align="center" style="font-size: 10pt"><B>1410 Millwood Road<BR>
McKinney, TX 75069</B>



<P align="center" style="font-size: 10pt"><B>NOTICE OF SPECIAL MEETING OF STOCKHOLDERS</B>



<P align="center" style="font-size: 10pt">To Be Held on July&nbsp;20, 2004



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notice is hereby given that a special meeting of stockholders of Encore
Wire Corporation (the &#147;Company&#148;), will be held on Tuesday, July&nbsp;20, 2004, at
9:00 a.m., local time, at the Company&#146;s offices, 1411-A Millwood Road,
McKinney, Texas 75069, for the following purposes:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>To vote upon a proposal to approve an amendment to the
Company&#146;s Certificate of Incorporation, as amended, to increase the
authorized shares of common stock of the Company from 20,000,000 to
40,000,000 in order to permit, among other things, a 3-for-2 stock
split to be paid as a 50% stock dividend on its common stock; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>To transact such other business as may properly come before
the meeting or any adjournment thereof.</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Only stockholders of record at the close of business on June&nbsp;2, 2004 are
entitled to notice of and to vote at the meeting or any adjournment thereof.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The foregoing items of business are more fully described in the Proxy
Statement accompanying this Notice. The affirmative vote of the holders of a
majority of the outstanding shares of common stock of the Company is required
for the approval of proposal (1)&nbsp;above.


<P align="left" style="font-size: 10pt">Dated: June <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, 2004


<P align="left" style="font-size: 10pt; margin-left: 50%">By Order of the Board of Directors


<P align="left" style="font-size: 10pt; margin-left: 50%">Frank J. Bilban<BR>
Secretary


<P>
<HR noshade width="25%" align="center" size="1">
<P>




<P align="center" style="font-size: 10pt"><B>YOUR VOTE IS IMPORTANT</B>


<P align="left" style="font-size: 10pt"><B>WHETHER OR NOT YOU PLAN TO ATTEND THE MEETING IN PERSON, PLEASE MARK, SIGN AND
DATE THE ENCLOSED PROXY AND RETURN IT PROMPTLY IN THE ACCOMPANYING ENVELOPE.
IF YOU DO ATTEND THE MEETING IN PERSON, YOU MAY WITHDRAW YOUR
PROXY AND VOTE IN PERSON. THE PROMPT RETURN OF PROXIES WILL INSURE A QUORUM
AND SAVE THE COMPANY THE EXPENSE OF FURTHER SOLICITATION.</B>


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

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




<P align="right" style="font-size: 10pt"><B>Preliminary Copy, Subject to Completion</B>



<P align="center" style="font-size: 10pt"><B>ENCORE WIRE CORPORATION<BR>
1410 Millwood Road<BR>
McKinney, Texas 75069</B>



<P align="center" style="font-size: 10pt"><B>PROXY STATEMENT</B>



<P align="center" style="font-size: 10pt"><B>For Special Meeting of Stockholders<BR>
To be Held on July&nbsp;20, 2004</B>



<P align="center" style="font-size: 10pt"><B>GENERAL</B>


<P align="left" style="font-size: 10pt">The accompanying proxy is solicited by the Board of Directors of Encore Wire
Corporation (the &#147;Company&#148; or &#147;Encore&#148;) for use at a special meeting of
stockholders of the Company to be held at the time and place and for the
purposes set forth in the foregoing notice. The approximate date on which this
proxy statement and the accompanying proxy are first being sent to stockholders
is June&nbsp;16, 2004.

<P align="left" style="font-size: 10pt">The cost of soliciting proxies will be borne by the Company. The Company may
use certain of its officers and employees (who will receive no special
compensation therefor) to solicit proxies in person or by telephone, facsimile,
telegraph or similar means.

<P align="left" style="font-size: 10pt"><B>Proxies</B>

<P align="left" style="font-size: 10pt">All shares entitled to vote and represented by properly completed proxies duly
signed, dated and returned to the Company and not revoked, will be voted at the
meeting in accordance with the directions given. If no direction is given,
such shares will be voted in favor of the charter amendment to increase the
number of authorized shares of Common Stock. Any stockholder returning a proxy
may revoke it at any time before it has been exercised by giving written notice
of such revocation to the Secretary of the Company, by filing with the Company
a proxy bearing a subsequent date or by voting in person at the meeting.

<P align="left" style="font-size: 10pt"><B>Voting Procedures and Tabulation</B>

<P align="left" style="font-size: 10pt">The Company will appoint one or more inspectors of election to conduct the
voting at the meeting. Prior to the meeting, the inspectors will sign an oath
to perform their duties in an impartial manner and to the best of their
abilities. The inspectors will ascertain the number of shares outstanding and
the voting power of each of such shares, determine the shares represented at
the meeting and the validity of proxies and ballots, count all votes and
ballots and perform certain other duties as required by law. The inspectors
will tabulate the number of votes cast for, against or withheld, as well as the
number of abstentions and broker non-votes, as to the proposal to be submitted
to the meeting.

<P align="left" style="font-size: 10pt"><B>Voting Securities</B>

<P align="left" style="font-size: 10pt">The only voting security of the Company outstanding is its Common Stock, par
value $.01 per share. Only the holders of record of Common Stock at the close
of business on June&nbsp;2, 2004, the record date for the meeting, are entitled to notice of, and to vote at, the
meeting. On the record date, there were &#091;<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#093; shares of Common Stock
outstanding and entitled to be voted at the meeting. Each share of Common
Stock is entitled to one vote.

<P align="center" style="font-size: 10pt">1
</DIV>

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


<P align="left" style="font-size: 10pt"><B>Required Vote</B>

<P align="left" style="font-size: 10pt">The presence at the special meeting, in person or by proxy, of a majority of
the outstanding shares of Common Stock is necessary to constitute a quorum.
Abstention and, by definition, broker non-votes will be counted as present for
the purpose of establishing a quorum.

<P align="left" style="font-size: 10pt">The affirmative vote of the holders of a majority of the outstanding shares of
Common Stock entitled to vote thereon at the special meeting is required to
approved the amendment to the Certificate of Incorporation, as amended (the
&#147;Certificate of Incorporation&#148;), to increase the number of authorized shares.
Accordingly, abstentions and broker non-votes will have the same effect as a
vote against the amendment.

<P align="left" style="font-size: 10pt"><B>Approval of an Amendment to the Certificate of Incorporation to Increase the
Number of Authorized Shares of Common Stock</B>

<P align="left" style="font-size: 10pt">The Board of Directors of Encore proposes to amend the Certificate of
Incorporation of the Company to increase the number of authorized shares of
Common Stock. The purpose of this proposal is to enable the Company to effect
the stock dividend described below and to issue Common Stock for other proper
corporate purposes that may be identified in the future. The proposed
amendment would increase the number of authorized shares of Common Stock from
20,000,000 to 40,000,000.

<P align="left" style="font-size: 10pt">The Company&#146;s authorized capital presently consists of 20,000,000 shares of
Common Stock and 2,000,000 shares of preferred stock. There are no shares of
preferred stock currently outstanding. The proposed amendment to the
Certificate of Incorporation will not affect the number of authorized shares of
preferred stock.

<P align="left" style="font-size: 10pt">The Board of Directors adopted the proposed amendment to the Certificate of
Incorporation at its May&nbsp;4, 2004 meeting, subject to stockholder approval, and
declared the proposal to be advisable. Accordingly, stockholders are asked to
vote on the following resolution:



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;RESOLVED, that the Certificate of Incorporation of Encore
Wire Corporation be amended to increase the total number of shares
of Common Stock that the Company is authorized to issue to
40,000,000 to be effected by amending Section&nbsp;1 of Article&nbsp;FOURTH
thereof so that as amended said Section&nbsp;1 of Article&nbsp;FOURTH shall
read in its entirety as follows:



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Fourth: Section&nbsp;1. The total number of shares of all classes of
stock which the corporation shall have authority to issue is
Forty-Two Million (42,000,000), consisting of:


<P align="center" style="font-size: 10pt">2
</DIV>

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

<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Two Million (2,000,000) shares, par value $.01 per
share, to be designated &#147;Preferred Stock&#148;; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Forty Million (40,000,000) shares, par value $.01 per
share, to be designated &#147;Common Stock&#148;.</TD>
</TR>

</TABLE>
<P align="left" style="font-size: 10pt"><B>THE BOARD OF DIRECTORS RECOMMENDS THAT YOU VOTE &#147;FOR&#148; THE PROPOSED AMENDMENT TO
ENCORE&#146;S CERTIFICATE OF INCORPORATION.</B>

<P align="left" style="font-size: 10pt"><B>Reasons for the Amendment</B>

<P align="left" style="font-size: 10pt">The proposed increase in authorized shares will permit a 3-for-2 stock split to
be paid as a 50% stock dividend on the Company&#146;s Common Stock. The proposed
stock dividend was approved by the Board of Directors on May&nbsp;4, 2004, subject
to stockholder approval of this proposal to increase the number of authorized
shares and declaration of the proposed stock dividend by the Board of Directors
following such approval. The Board of Directors has decided to authorize the
proposed stock dividend and intends to declare and pay the stock dividend
following stockholder approval of the amendment to Encore&#146;s Certificate of
Incorporation to increase the number of authorized shares provided there have
been no material changes in the Company&#146;s financial condition or results of
operation or the market price for the Company&#146;s Common Stock. Without approval
of the proposed amendment to Encore&#146;s Certificate of Incorporation, the Company
would not have sufficient authorized Common Stock to declare a 3-for-2 stock
split to be paid as a 50% stock dividend on its Common Stock. Generally, stock
splits are intended to shift the market price range of common stock to a level
that will facilitate increased trading activity and will broaden the
marketability of the common stock.

<P align="left" style="font-size: 10pt">Approval of the proposed amendment will allow the Company to declare the
proposed 3-for-2 stock split in the form of a 50% stock dividend while
maintaining flexibility similar to the flexibility that currently exists for
the Company to use capital stock for future business and financial purposes.
The remaining shares of authorized Common Stock may be used by the Company for
any purpose permitted under Delaware law, including to raise capital and to
provide equity incentives to employees, officers and directors. The newly
authorized shares of Common Stock would be available for issuance without
further action by stockholders except as required by law or applicable NASDAQ
requirements. Any such issuance could have the effect of diluting existing
stockholders. Authorized but unissued shares of Common Stock may also be used
to oppose a hostile take over attempt or to delay or prevent a change in
control of the Company, although the Company has no present intention to issue
shares for such purpose. The proposed amendment arises out of business and
financial considerations, and the Company is not aware of any threat of take
over or change in control.

<P align="left" style="font-size: 10pt">Under the proposed amendment, each of the newly authorized shares of Common
Stock will have the same rights and privileges as currently authorized Common
Stock. Adoption of the proposed amendment will not affect the rights of the
holders of current outstanding Common Stock nor will it change the par value of
the Common Stock. The number of authorized shares of the Company have remained
the same since its original incorporation.


<P align="center" style="font-size: 10pt">3
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="left" style="font-size: 10pt">The number of shares of Common Stock issued as of the record date for the
special meeting was &#091;<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#093; which includes &#091;<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#093; shares that the
Company holds as treasury stock. There are also &#091;<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#093; shares subject to
issuance for outstanding options under the Company&#146;s stock option plans for
employees. The remaining &#091;<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#093; shares that are currently authorized but
unissued are not sufficient for the proposed stock dividend. The authorized
capital of the Company currently consists of 20,000,000 shares of Common Stock,
par value $.01 per share, and 2,000,000 shares of preferred stock. Since the
proposed amendment would increase the number of authorized shares of Common
Stock to 40,000,000, the total number of authorized shares would thereby be
increased to 42,000,000. The proposed amendment to increase the authorized
number of shares of Common Stock does not change the number of shares of
preferred stock that the Company is authorized to issue. There are no shares
of preferred stock currently outstanding.

<P align="left" style="font-size: 10pt">If the proposed amendment is adopted, it will become effective upon the filing
of a Certificate of Amendment to the Company&#146;s Certificate of Incorporation
with the Secretary of State of the State of Delaware. However, if stockholders
approve the proposed amendment to the Company&#146;s Certificate of Incorporation,
the Board of Directors retains the discretion under Delaware law to abandon and
not implement the proposed amendment to the Certificate of Incorporation, and
the number of authorized shares would accordingly remain at its current level.

<P align="left" style="font-size: 10pt">The Company has been advised by tax counsel that a split in the form of a stock
dividend would result in no gain or loss or realization of taxable income to
the holders of Common Stock under existing federal tax law. The adjusted tax
basis in the Common Stock you own before the stock dividend (if one is
declared) will be allocated between the Common Stock received and the Common
Stock you already held. The holding period of the Common Stock received as a
stock dividend will include the period for which you held the Common Stock on
which the stock dividend was distributed. Non-U.S. stockholders should consult
with their financial advisors regarding tax treatment in other jurisdictions.

<P align="left" style="font-size: 10pt"><B>Vote Necessary To Approve Proposal</B>

<P align="left" style="font-size: 10pt">The affirmative vote of the majority of the outstanding shares of Common Stock
entitled to vote thereon at the special meeting is necessary for approval of
this proposal. Proxies that are granted without providing voting instructions
will be voted FOR approval of the proposal.

<P align="left" style="font-size: 10pt">YOUR BOARD OF DIRECTORS RECOMMENDS THAT YOU VOTE &#147;FOR&#148; THE PROPOSED AMENDMENT
TO THE COMPANY&#146;S CERTIFICATE OF INCORPORATION.


<P align="center" style="font-size: 10pt"><B>SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS, DIRECTORS<BR>
AND EXECUTIVE OFFICERS</B>


<P align="left" style="font-size: 10pt">The following table sets forth, as of June&nbsp;2, 2004, the beneficial ownership of
Common Stock of the Company (the only equity securities of the Company
presently outstanding) by (i)&nbsp;each director of the Company, (ii)&nbsp;the named
executive officers of the Company, (iii)&nbsp;all directors and executive officers
of the Company as a group and (iv)&nbsp;each person who was known to the Company to be the beneficial owner of more than five percent of the outstanding
shares of Common Stock.


<P align="center" style="font-size: 10pt">4
</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="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="68%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7"><B>Common Stock</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7"><B>Beneficially Owned (1)</B><HR size="1" noshade></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Number</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Percent of</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Name</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>of Shares</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Class</B><HR size="1" noshade></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><I>Directors</I></DIV></TD>
    <TD>&nbsp;</TD>
    <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><DIV style="margin-left:10px; text-indent:-10px">Vincent A. Rego</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">&#091;_______&#093;</TD>
    <TD nowrap>(2)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">&#091;_____&#093;</TD>
    <TD nowrap>%</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Donald E. Courtney</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#091;_______&#093;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">&#091;_____&#093;</TD>
    <TD nowrap>%</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Daniel L. Jones</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">&#091;_______&#093;</TD>
    <TD nowrap>(3)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">&#091;_____&#093;</TD>
    <TD nowrap>%</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">William R. Thomas</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">&#091;_______&#093;</TD>
    <TD nowrap>(4)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">&#091;_____&#093;</TD>
    <TD nowrap>%</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">John H. Wilson</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">&#091;_______&#093;</TD>
    <TD nowrap>(4)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">&#091;_____&#093;</TD>
    <TD nowrap>%</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Joseph M. Brito</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">&#091;_______&#093;</TD>
    <TD nowrap>(5)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">&#091;_____&#093;</TD>
    <TD nowrap>%</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Scott D. Weaver</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#091;_______&#093;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">&#091;_____&#093;</TD>
    <TD nowrap>%</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Thomas L. Cunningham</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#091;_______&#093;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">&#091;_____&#093;</TD>
    <TD nowrap>%</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><I>Named Executive Officer (excluding directors and
nominees named above)</I></DIV></TD>
    <TD>&nbsp;</TD>
    <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" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Frank J. Bilban</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#091;_______&#093;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">&#091;_____&#093;</TD>
    <TD nowrap>%</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><I>All
Directors and Executive Officers as a group (9 persons)</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">&#091;_______&#093;</TD>
    <TD nowrap>(6)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">&#091;_____&#093;</TD>
    <TD nowrap>%</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><I>Beneficial Owners of More than 5% (excluding
persons named above)</I></DIV></TD>
    <TD>&nbsp;</TD>
    <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><DIV style="margin-left:10px; text-indent:-10px">Capital Southwest Corporation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">&#091;_______&#093;</TD>
    <TD nowrap>(7)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">&#091;_____&#093;</TD>
    <TD nowrap>%</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Strong Capital Management Inc.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">&#091;_______&#093;</TD>
    <TD nowrap>(8)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">&#091;_____&#093;</TD>
    <TD nowrap>%</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>




<P>
<HR size="1" width="18%" align="left" noshade>

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

<TR valign="top">
    <TD width="1%" nowrap align="right">(1)</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="96%">Except as otherwise indicated, each stockholder named in the table has
sole voting and investment power with respect to all shares indicated as
being beneficially owned by such stockholder.</TD>
</TR>

<TR><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD width="1%" nowrap align="right">(2)</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="96%">Includes &#091;<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#093; shares of Common Stock held by Dorvin Partners,
L.P., a family limited partnership. The general partner of Dorvin
Partners, L.P. is a trust, and its limited partners are eight separate
family trusts for the benefit of Mr.&nbsp;Rego&#146;s two sons. Mr.&nbsp;Rego serves as
trustee for the general partner trust and is a co-trustee of four of the
limited partnership trusts. Mr.&nbsp;Rego has sole power to vote or to direct
the vote and the sole power to dispose of or to direct the disposition of
all &#091;<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#093; shares of Common Stock held by Dorvin Partners.</TD>
</TR>

<TR><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD width="1%" nowrap align="right">(3)</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="96%">Includes &#091;<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#093; shares of Common Stock subject to stock options
that are exercisable within &#091;<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#093; days, &#091;<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#093; shares of Common
Stock owned by Mr.&nbsp;Jones&#146; spouse and &#091;<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#093; shares owned for the benefit
of Mr.&nbsp;Jones&#146; minor son. Mr.&nbsp;Jones disclaims beneficial ownership of the
shares owned by his spouse.</TD>
</TR>

<TR><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD width="1%" nowrap align="right">(4)</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="96%">William R. Thomas and John H. Wilson, directors of the Company, are both
directors of, and Mr.&nbsp;Thomas is President and Chairman of the Board of,
Capital Southwest Corporation. As indicated in the table, Capital
Southwest Corporation is a principal stockholder of the Company. Mr.
Thomas and Mr.&nbsp;Wilson.</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt">5
</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">



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

<TR valign="top">
    <TD width="1%" nowrap align="right">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="96%">may be deemed to share voting and investment power with respect to the
&#091;<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#093; shares of Common Stock beneficially owned by Capital
Southwest Corporation. Mr.&nbsp;Thomas and Mr.&nbsp;Wilson each disclaim
beneficial ownership of such shares.</TD>
</TR>

<TR><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD width="1%" nowrap align="right">(5)</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="96%">Includes &#091;<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#093; shares of Common Stock held by the Brito Family
Limited Partnership.</TD>
</TR>

<TR><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD width="1%" nowrap align="right">(6)</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="96%">Includes an aggregate of &#091;<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#093; shares of Common Stock that
directors and executive officers have the right to acquire within &#091;<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#093;
days pursuant to the exercise of stock options, but does not include
&#091;<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#093; shares beneficially owned by Capital Southwest Corporation as
to which Mr.&nbsp;Thomas and Mr.&nbsp;Wilson may be deemed to share voting and
investment power as directors and, in the case of Mr.&nbsp;Thomas, as an
officer, of Capital Southwest Corporation because Mr.&nbsp;Thomas and Mr.
Wilson disclaim beneficial ownership of such shares.</TD>
</TR>

<TR><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD width="1%" nowrap align="right">(7)</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="96%">As reported in a Schedule&nbsp;13D filed &#091;<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#093; with the SEC by
Capital Southwest Corporation showing its beneficial ownership of Company
stock, including &#091;<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#093; shares held by Capital Southwest
Venture Corporation, a wholly-owned subsidiary of Capital Southwest
Corporation.</TD>
</TR>

<TR><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD width="1%" nowrap align="right">(8)</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="96%">As reported in a Schedule&nbsp;13G/A filed &#091;<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#093; with the SEC by
Strong Capital Management, Inc. (&#147;Strong&#148;) and Richard S. Strong, showing
Strong&#146;s beneficial ownership of Common Stock and reporting that it
beneficially owns all of the shares with shared voting and dispositive
power.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">The respective addresses of the holders of more than five percent of the Common
Stock of the Company are as follows: Capital Southwest Corporation, 12900
Preston Road, Dallas, Texas 75230; Strong Capital Management, Inc., 100
Heritage Reserve, Menomonee Falls, Wisconsin 53051: and Vincent A. Rego, 1410
Millwood Road, McKinney, Texas 75069.


<P align="center" style="font-size: 10pt"><B>STOCKHOLDER PROPOSALS AND OTHER MATTERS</B>


<P align="left" style="font-size: 10pt">It is contemplated that the 2005 annual meeting of Stockholders of the Company
will take place during the first half of April&nbsp;2005. Stockholder proposals for
inclusion in the Company&#146;s proxy materials for the 2005 annual meeting of
Stockholders must be received by the Company at its offices in McKinney, Texas,
addressed to the Secretary of the Company, not less than 120&nbsp;days in advance of
the date that is one year after the proxy statement for the Annual Meeting of
Stockholders was first distributed to stockholders (April&nbsp;1, 2004); provided,
that if the 2005 annual meeting of Stockholders is changed by more than 30&nbsp;days
from the presently contemplated date, then proposals must be received a
reasonable time in advance of the meeting.


<P align="center" style="font-size: 10pt"><B>OTHER BUSINESS</B>


<P align="left" style="font-size: 10pt">At the date of this Proxy Statement, the only business that the Board of
Directors intends to present or knows that others will present at the meeting
is as set forth above. If, however, any other matters are properly brought
before the special meeting, or any adjournment thereof, it is the intention of
the persons named in the accompanying form of proxy to vote such proxy on such
matters in accordance with their best judgment.


<P align="left" style="font-size: 10pt; margin-left: 50%">By Order of the Board of Directors


<P align="left" style="font-size: 10pt; margin-left: 50%">Frank J. Bilban,<BR>
Vice President &#151; Finance, Treasurer and Secretary



<P align="center" style="font-size: 10pt">6
</DIV>


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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="right" style="font-size: 10pt"><B>Preliminary copy, Subject to Completion</B>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="90%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="60%">&nbsp;</TD>
    <TD width="25%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>ENCORE WIRE CORPORATION</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>Special Meeting<br>
July&nbsp;20, 2004</B></TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>



<P align="left" style="font-size: 10pt"><B>PROXY</B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The undersigned hereby appoints VINCENT A. REGO, DANIEL L. JONES and FRANK J. BILBAN, and each of them, as the undersigned&#146;s
attorneys and proxies, each with the power to appoint his substitute, and hereby authorizes them to represent and to vote, as
directed below, all the shares of common stock of ENCORE WIRE CORPORATION (the &#147;Company&#148;) held of record by the undersigned on
June&nbsp;2, 2004, at the special meeting of stockholders to be held on July&nbsp;20, 2004 or any adjournment thereof.

<P align="left" style="font-size: 10pt">Please mark boxes <B>in blue or black ink.</B>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>1.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>PROPOSAL TO AMEND THE CERTIFICATE OF INCORPORATION TO INCREASE THE NUMBER OF AUTHORIZED SHARES OF COMMON STOCK FROM 20,000,000 TO 40,000,000:</B></TD>
</TR>

</TABLE>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="65%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="15%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>FOR&nbsp; <FONT face="Wingdings">&#111;</FONT></B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>AGAINST &nbsp;<FONT face="Wingdings">&#111;</FONT></B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>ABSTAIN&nbsp;<FONT face="Wingdings">&#111;</FONT></B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>&nbsp;</B></TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>2.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>The above-named attorney and proxy (or his substitute) is authorized to vote in his discretion upon such other business as may
properly come before the meeting or any adjournment thereof.</B></TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt"><B>THIS PROXY SOLICITED BY THE BOARD OF DIRECTORS</B>



<P align="center" style="padding: 5px; border: 1px double #848284; font-size: 10pt; color: #FF0000"><B>PLEASE MARK, SIGN, DATE AND RETURN THE PROXY CARD PROMPTLY USING THE ENCLOSED
ENVELOPE</B>


<P align="center" style="font-size: 10pt">&nbsp;
</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">
<P align="right" style="font-size: 10pt"><B>Preliminary copy, Subject to Completion</B>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="90%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="60%">&nbsp;</TD>
    <TD width="25%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>ENCORE WIRE CORPORATION</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>Special Meeting<br>
July&nbsp;20, 2004</B></TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>



<P align="left" style="font-size: 10pt"><B>This proxy when properly executed will be voted in the manner directed hereby
by the undersigned stockholder. If no direction is made, this proxy will be
voted FOR the proposal set forth above.</B>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="26%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="25%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>Date: <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> , 2004</B></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></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">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><HR size="1" noshade>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>Signature</B></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></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">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><HR size="1" noshade>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>Signature if held jointly</B></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</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">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>Please sign exactly as name appears
hereon. When shares are held by joint
tenants, both should sign. When
signing as attorney, executor,
administrator, trustee or guardian,
please give full title as such. If a
corporation, please sign in full
corporate name by President or other
authorized officer. If a partnership,
please sign in partnership name by
authorized person.</B></TD>
</TR>

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