WERNER HOLDING CO. INC.

Description Coupon Maturity Outstanding Rating Call Price Next Call Recent Price YTW
Sr. Sub. Notes 10.0% 10/15/2007 $135 Mn B3/CCC- 101.67 4/20/2005 75.5 22.83%
Source: Company documents and Bloomberg

FYE 2001 FYE 2002 FYE 2003 FYE LTM 1 Q '03 2 Q '03 3 Q '03 4 Q '03 1 Q '04 2 Q '04 3 Q '04
(in $ million) 12/31/2001 12/31/2002 12/31/2003 9/30/2004 3/31/2003 6/30/2003 9/30/2003 12/31/2003 3/31/2004 6/30/2004 9/30/2004
Segment Information
Climbing Products
- % to total revenues 85.2% 85.4% 86.4% 85.0% 83.2% 86.7% 87.6% 87.4% 83.4% 84.1% 84.7%
- Operating Profit/ (Loss) as % of revenues (based on reported figures) 11.6% 14.8% 14.2% 6.5% 10.5% 14.0% 15.6% 15.6% 5.8% 5.6% -2.2%
Extruded Products
- % to total revenues 14.8% 14.6% 13.6% 15.0% 16.8% 13.3% 12.4% 12.6% 16.6% 15.9% 15.3%
- Operating Profit/ (Loss) as % of revenues (based on reported figures) 0.0% 0.5% 3.1% -2.1% 0.6% 3.9% 5.8% 2.3% -6.2% -0.4% -3.8%

INCOME STATEMENT
Segment Sales
Climbing Products 456.5 444.3 432.8 394.1 88.4 112.3 119.8 112.3 84.8 95.9 101.1
Extruded Products 79.2 76.1 68.3 69.5 17.8 17.3 17.0 16.2 16.8 18.1 18.3
Total Sales 535.7 520.4 501.1 463.6 106.2 129.6 136.8 128.5 101.7 114.1 119.4
growth y/y -1.7% -2.9% -3.7% -9.2% -4.0% -5.4% 1.6% -7.0% -4.3% -11.9% -12.7%
Cost of Goods Sold 379.2 343.8 320.3 319.0 70.7 84.1 84.6 80.9 70.0 79.1 89.0
Gross Profit 156.5 176.6 180.8 144.6 35.5 45.5 52.2 47.6 31.7 35.0 30.3
gross margin 29.2% 33.9% 36.1% 31.2% 33.4% 35.1% 38.1% 37.1% 31.1% 30.7% 25.4%
SG&A expenses 107.2 112.0 118.5 117.8 26.9 28.8 32.5 30.2 26.2 28.6 32.7
Recapitalization (Expense)/ Income - - (11.5) (1.3) - (10.1) (0.1) (1.3) - - -
Manufacturing and Distribution Optimization (Costs)/ Income - - (2.9) (6.1) - (1.0) (1.1) (0.8) (2.5) (1.7) (1.1)
Plant Shutdown (Costs)/ Income 0.1 - - - - - - - - - -
Income/ (loss) from operations 49.5 64.6 48.0 19.4 8.6 5.6 18.5 15.3 2.9 4.6 (3.4)
Other income(expense) 0.9 0.3 (0.0) (1.1) 0.2 0.1 0.1 (0.4) (0.1) (0.1) (0.4)
EBIT 50.4 65.0 48.0 18.3 8.8 5.6 18.6 14.9 2.8 4.5 (3.9)

FREE CASH FLOWS (FCF)

EBIT 50.4 65.0 48.0 18.3 8.8 5.6 18.6 14.9 2.8 4.5 (3.9)
Depreciation & Amortization 14.6 15.9 17.7 18.6 4.1 4.2 4.7 4.6 4.4 4.7 4.9
EBITDA 65.1 80.8 65.7 37.0 13.0 9.8 23.4 19.5 7.3 9.2 1.1
Recapitalization (Expense)/ Income - - 11.5 1.3 - 10.1 0.1 1.3 - - -
Manufacturing and Distribution Optimization (Costs)/ Income - - 2.9 6.1 - 1.0 1.1 0.8 2.5 1.7 1.1
Plant Shutdown (Costs)/ Income (0.1) - - - - - - - - - -
Other income(expense) (0.9) (0.3) 0.0 1.1 (0.2) (0.1) (0.1) 0.4 0.1 0.1 0.4
ADJUSTED EBITDA 64.0 80.5 80.1 45.4 12.8 20.9 24.4 22.0 9.9 11.0 2.5
ebitda margin 11.9% 15.5% 16.0% 9.8% 12.0% 16.1% 17.9% 17.1% 9.7% 9.6% 2.1%
Interest Expense 26.1 21.5 24.4 24.1 5.1 7.5 6.1 5.8 5.8 6.1 6.5
(includes Amortization of def. financing fees and original issue disc.) (3.3) (2.8) (4.9) (2.9) (0.6) (2.9) (0.7) (0.7) (0.7) (0.7) (0.8)
Tax outflow 5.7 16.9 9.3 (3.3) 0.9 0.9 4.1 3.4 (2.8) (0.6) (3.3)
Provision for tax as mentioned in income statement 8.7 16.1 7.4 (4.1) 1.3 (0.7) 4.8 2.0 (1.1) (0.6) (4.4)
Less Deferred Income Taxes - from cash flow statement 3.0 (0.9) (1.9) (0.9) 0.5 (1.6) 0.7 (1.5) 1.6 0.0 (1.1)
FCF before WC Changes and Capital Expenditure 35.4 44.9 51.2 27.5 7.4 15.3 15.0 13.5 7.5 6.3 0.1
Working Capital Decrease/ (Increase) 0.6 (8.8) (15.3) (12.9) (14.9) 11.0 (6.6) (4.7) 13.9 (24.3) 2.2
FCF before Capital Expenditure 36.0 36.1 35.9 14.5 (7.6) 26.3 8.4 8.8 21.4 (18.0) 2.3
Capital Expenditure, net of sale 19.3 12.1 9.5 8.2 1.9 2.2 2.8 2.6 1.9 1.2 2.5
FCF 16.8 24.0 26.5 6.3 (9.5) 24.1 5.6 6.2 19.5 (19.2) (0.2)
EBITDA/ TOTAL INTEREST 2.4x 3.7x 3.3x 1.9x 2.5x 2.8x 4.0x 3.8x 1.7x 1.8x 0.4x
EBITDA/ INTEREST NET OF AMORTIZATION 2.8x 4.3x 4.1x 2.1x 2.8x 4.5x 4.6x 4.4x 1.9x 2.1x 0.4x
EBITDA/(TOTAL INTEREST+CAP.EX.) 1.4x 2.4x 2.4x 1.4x 1.8x 2.2x 2.8x 2.6x 1.3x 1.5x 0.3x

Prepared By: Nitin Jain (nitin.jain@recerche.com)

 FYE 2001 FYE 2002 FYE 2003 FYE LTM 1 Q '03 2 Q '03 3 Q '03 4 Q '03 1 Q '04 2 Q '04 3 Q '04
(in $ million) 12/31/2001 12/31/2002 12/31/2003 9/30/2004 3/31/2003 6/30/2003 9/30/2003 12/31/2003 3/31/2004 6/30/2004 9/30/2004
BALANCE SHEET
Cash & Cash equivalents 30.5 43.2 9.6 0.2 28.9 10.8 15.2 9.6 27.9 0.2 0.2
Current portion of long-term debt 16.9 27.6 23.1 21.5 33.3 15.6 15.6 23.1 23.1 25.6 21.5
Long-term debt 260.5 234.0 290.0 296.9 221.5 304.1 304.1 290.0 290.1 280.0 296.9
Total Debt 277.4 261.6 313.1 318.4 254.8 319.7 319.7 313.1 313.2 305.7 318.4
Net debt 246.9 218.4 303.5 318.2 225.9 308.8 304.5 303.5 285.3 305.5 318.2
Total Debt/ EBITDA 4.3x 3.2x 3.9x 7.0x
Net Debt/ EBITDA 3.9x 2.7x 3.8x 7.0x
Other Balance Sheet Items
Trade Receivables, net 52.4 52.4 57.2 42.1 48.0 45.9 58.1 57.2 33.5 54.9 42.1
Inventory (Valued at lower of LIFO cost or market value) 52.9 52.5 55.7 77.4 65.1 58.4 60.6 55.7 61.8 70.1 77.4
Other Current Assets 3.6 4.4 7.7 13.8 3.4 3.0 3.0 7.7 8.8 8.7 13.8
Accounts Payable 21.0 16.2 15.4 23.6 16.6 18.3 17.4 15.4 15.0 22.1 23.6
Other Current Liabilties 36.0 33.7 30.1 38.5 27.2 27.7 43.7 30.1 31.4 31.5 38.5
Property, Plant & Equipment (net) 111.9 112.4 110.2 118.2 111.4 110.3 109.8 110.2 108.9 106.6 118.2

LIQUIDITY (9/30/2004) 9/30/2004

Cash & Equivalents 0.2
Unused Revolver 29.4
Availability Under $50 Mn Receivable Purchase Agreement 13.3
Total Liquidity 42.9

CAPITALIZATION (9/30/2004)
FACE CURRENT FISCAL '03 LTME 9/30/04
EBITDA EBITDA
Revolving credit facility due May 2007* 50.0 - 0.0x 0.0x
Term Loan due May 2007 165.0 165.0 2.1x 3.6x
Capitalizaed Lease Obligations 14.7 2.2x 4.0x
Other debt 5.0 2.3x 4.1x
10% Senior Subordianted Notes due 10/15/2007 135.0 135.0 4.0x 7.0x
Total 319.7 4.0x 7.0x
Convertible Preferred Stock 74.2 0.9x 1.6x
Total Debt and Convertible Preferred Stock 393.9 4.9x 8.7x

Shareholder's Deficit (No Market Value) (250.9) -5.5x

Prepared By: Nitin Jain (nitin.jain@recerche.com)