Fushi Copperweld

[Press Release] Fushi Copperweld Announces 2011 First Quarter Results

04 May 2011 11:33:00 GMT

BEIJING, May 4, 2011 /PRNewswire-Asia-FirstCall/ -- Fushi Copperweld, Inc. (Nasdaq: FSIN), the leading global manufacturer and innovator of copper-clad bimetallic wire used in a variety of telecommunication, utility, transportation and other electrical applications, today announced financial results for the first quarter ended March 31, 2011.

First Quarter Highlights

Increased revenues to $65.9 million, up 10.7% from $59.5 million in the first quarter of 2010;
Organic revenue growth of 7.6%;
Cash flow from operations of $15.0 million, up 123.9% from $6.7 million in the first quarter of 2010;
Cash position at quarter end remains strong at $134.4 million

Revenues for the first quarter of 2011 increased 10.7% to $65.9 million, up from $59.5 million in the prior year quarter due to higher raw material prices and the inclusion of Dalian Jinchuan, partially offset by higher than anticipated destocking activity by the Company's customers. Organic revenue growth during the first quarter, excluding the contribution from the acquisition of Dalian Jinchuan, was 7.6%.

Gross profit in the 2011 first quarter was $17.1 million compared to $17.8 million a year ago. Gross margin decreased to 26.0% from 30.0% in the prior year period, due to higher raw material prices, pricing pressure as a result of continued slowdown of the 3G network build out in China, and the inclusion of a full quarter's results from Dalian Jinchuan, which has a relatively lower margin. Gross margin for the Company's Dalian cladding facility was 32.6% compared to 36.5% in the prior year period while gross margin for the Company's Fayetteville, TN facility decreased to 8.9% in the first quarter of 2011 from 13.0% in the first quarter of 2010 as supply chain destocking drove lower volumes.

Operating expenses in the first quarter increased to $6.7 million, compared to $5.0 million in the prior year's quarter. The increase in operating expenses is primarily related to the Company's 2010 audit fee of $800,000 for which the audit was performed in the first quarter of 2011, and approximately $750,000 in advisor fees related to the Company's privatization offer. On a percentage basis, operating expenses in the first quarter of 2011 increased to 10.1% of revenues from 8.4% in the first quarter of 2010. The Company expects audit fees to return to more normalized levels for the remaining quarters of the year.

Net income for the 2011 first quarter was $6.8 million, or $0.18 per diluted share. This compares with net income of $9.1 million, or $0.26 per diluted share, in the first quarter of 2010. Excluding all non-cash gains and expenses and one-time, non-recurring losses, adjusted net income was $7.0 million or $0.18 per diluted share in the first quarter of 2011, compared to adjusted net income of $10.7 million or $0.30 per diluted share, in the prior year first quarter.

The Company's effective income tax rate for the first quarter of 2011 was 33.5% compared with an effective income tax rate of 10.4% in the year ago period, which is mainly due to the change of income tax rate from 12.5% in 2010 to 25% in 2011 for the Company's subsidiary, Fushi International (Dalian) Bimetallic Cable Co. Ltd., as a result of the expiration of the tax holiday. The Company continues to expect the effective income tax rate for the 2011 full-year to be 25%.

Fully diluted share count increased 8.8% in the first quarter of 2011 to 38.4 million from 35.3 million a year ago, primarily as a result of the Company's secondary offering during the first quarter of 2010.

During the three months ended March 31, 2011, the Company generated $15.0 million in net cash from operating activities, compared to $6.7 million in the comparable period in 2010.

As of March 31, 2011, the Company's cash position was $134.4 million, an increase of 9.3% from $123.0 million as of December 31, 2010. Accounts receivable at March 31, 2011 was $63.0 million, compared to $65.8 million at December 31, 2010. Long-term debt totaled $5.5 million as of March 31, 2011, compared to $5.7 million at December 31, 2010.

Joe Longever, co-Chief Executive Officer of Fushi Copperweld, commented, "Our first quarter is typically our slowest period of the year, and our results for the period reflect this seasonality combined with an improving but still uncertain economic environment, as the continued slowdown in the Chinese 3G build-out and our sales mix again reflects a shift to more utility customers. We have also seen a break from typical buying patterns, with customers continuing to draw down on their inventories and restocking at only minimal levels. While infrastructure spending priorities continue to shift and raw material pricing remains volatile, we continue to see customers attracted to our unique products for their technological superiority and economic value."

Mr. Longever continued, "Looking ahead, we expect these conditions to continue, namely a slowly improving global economic recovery marked by resurgence in some markets and continued struggling in others. We remain focused on expanding our business globally while maintaining our strong balance sheet and liquidity position, and believe our recent acquisitions and investments will enable us to benefit from the growing opportunities across each of our markets long-term."

Outlook

Based on current business trends, the Company reiterates its previously announced annual guidance of fully diluted earnings per share between $1.15 and $1.25 based on an estimated weighted average diluted share count of 38.2 million shares, and an effective income tax rate of 25.0%. The Company expects profitability in subsequent quarters to improve over the first quarter due to higher revenues with the absence of the Chinese New Year, continued higher raw material prices, increased global demand and the increased capability to meet that demand.

Conference Call

The Company will conduct a conference call to discuss the first quarter 2011 results today, Wednesday, May 4, 2011, at 8:30 am ET. To participate, the conference call may be directly accessed from the U.S. and Canada at 1-866-223-7781 and accessed internationally at 1-416-340-8018. A live webcast of the conference call will also be available at www.fushicopperweld.com on the Investor Relations section. A replay of the call will be available at www.fushicopperweld.com.

Reconciliation of Non-GAAP Financial Measures

Our net income was materially impacted by certain non-cash expenses and one-time events. To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, we use EPS as adjusted for the impact of non-cash expense related to stock-based compensation, gain on cross-currency interest swap derivative and loss on extinguishment of HY notes. These Company-defined adjusted measures are being provided because management believes they are useful in analyzing the underlying operating performance of the business. These measures may be inconsistent with similar measures presented by other companies and should only be used in conjunction with our results reported according to accounting principles generally accepted in the United States. A reconciliation of earnings per share as reported and operating income as reported to adjusted non-GAAP earnings per share and adjusted non-GAAP operating income follows.


		Q1 2011		Q1 2010

Net income	$	6,826,285	$	9,072,539

Reconciliation items:
Non-cash expense (income):

Compensation cost (stock based award)		174,252		193,057

One time non-occurring loss (income)
Loss on extinguishment of HY notes		-		2,395,778
Gain on cross-currency interest swap derivative		-		(128,861)

Income tax impact of reconciliation items		-		(836,391)

Adjusted to Non-GAAP Net income	$	7,000,537	$	10,696,122


GAAP Earnings per share
Basic	$	0.18	$	0.26
Diluted	$	0.18	$	0.26

Non-GAAP Earnings per share
Basic	$	0.18	$	0.31
Diluted	$	0.18	$	0.30


Shares for Basic EPS calculation		38,151,832		34,673,692
Shares for Diluted EPS calculation		38,388,385		35,309,847

About Fushi Copperweld

Fushi Copperweld Inc., through its wholly owned subsidiaries, Fushi International (Dalian) Bimetallic Cable Co. Ltd., and Copperweld Bimetallics LLC, is the leading manufacturer and innovator of copper-clad bimetallic engineered conductor products for electrical, telecommunications, transportation, utilities and industrial applications. With extensive design and production capabilities, and a long-standing dedication to customer service, Fushi Copperweld is the preferred choice for bimetallic products worldwide.

Safe Harbor Statement

This press release may include certain statements that are not descriptions of historical facts, but are forward-looking statements. Forward-looking statements can be identified by the use of forward-looking terminology such as "will" "believes", "expects" or similar expressions. These forward-looking statements may also include statements about our proposed discussions related to our business or growth strategy, which is subject to change. Such information is based upon expectations of our management that were reasonable when made but may prove to be incorrect. All of such assumptions are inherently subject to uncertainties and contingencies beyond our control and upon assumptions with respect to future business decisions, which are subject to change. We do not undertake to update the forward-looking statements contained in this press release. For a description of the risks and uncertainties that may cause actual results to differ from the forward-looking statements contained in this press release, see our most recent Annual Report filed with the Securities and Exchange Commission (SEC) on Form 10-K, and our subsequent SEC filings. Copies of filings made with the SEC are available through the SEC's electronic data gathering analysis retrieval system (EDGAR) at www.sec.gov.

For more information, please contact:

Investors
Nathan J. Anderson, VP/Corporate Development
Fushi Copperweld Inc.
Phone: +1.931.433.0482
E-mail: IR@fushicopperweld.com
Web: www.fushicopperweld.com

FUSHI COPPERWELD, INC. AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
	March 31,		December 31,
	2011		2010
		USD		USD
ASSETS
*Current assets:*
Cash		134,438,395		123,000,338
Accounts receivable, net of allowance for doubtful accounts		63,238,073		65,765,722
Inventories		18,624,451		16,143,922
Advances to suppliers		13,279,119		15,022,976
Prepaid expenses and other current assets		909,681		743,206
Total current assets		230,489,719		220,676,164

Property, plant and equipment, net		121,766,952		124,177,512
Intangible asset, net		510,318		577,587
Land use rights		13,095,516		13,089,733
Deposits for land use right		9,698,760		9,623,181
Goodwill		1,741,697		1,669,789
Other non-current assets		584,052		443,397
Total assets		377,887,015		370,257,363
LIABILITIES AND SHAREHOLDERS' EQUITY
*Current liabilities:*
Current portion of long-term bank loan		650,000		650,000
Accounts payable		5,039,350		3,241,428
Accrued expenses and other current liabilities		11,215,401		15,542,111
Total current liabilities		16,904,751		19,433,539
Long-term bank loan		5,525,000		5,687,500
Deferred income tax liabilities		671,091		669,540
Other non-current liabilities		41,190		65,057
Total liabilities		23,142,032		25,855,636

*Shareholders' equity:*
Common stock, $0.006 par value, 100,000,000 shares authorized; 38,203,638 and 38,099,138 shares issued and outstanding as of March 31, 2011 and December 31, 2010, respectively		229,223		228,596
Additional paid-in capital		168,457,599		167,596,792
Retained earnings		147,289,125		140,462,840
Accumulated other comprehensive income		38,769,036		36,113,499
Total shareholders' equity		354,744,983		344,401,727
Commitments and contingencies
Total liabilities and shareholders' equity		377,887,015		370,257,363

FUSHI COPPERWELD, INC. AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME
	Three-Month Period Ended March 31,
		2011	2010
		USD	USD

Revenues		65,925,866	59,549,842
Cost of revenues		48,777,114	41,728,576
Gross profit		17,148,752	17,821,266

*Operating expense:*
Selling expenses		1,149,524	1,251,962
General and administrative expenses		5,515,123	3,722,550
Total operating expenses		6,664,647	4,974,512

Income from operations		10,484,105	12,846,754

*Other income (expense):*
Interest income		228,854	192,790
Interest expense		(98,094)	(508,482)
Gain on cross-currency interest swap derivative		-	128,861
Loss on extinguishment of HY Notes		-	(2,395,778)
Other expense, net		(354,892)	(141,072)
Total other expense		(224,132)	(2,723,681)

Income before income taxes		10,259,973	10,123,073
Income tax expense		(3,433,688)	(1,050,534)

Net income		6,826,285	9,072,539

*Other comprehensive income:*
Foreign currency translation adjustment, net of nil income taxes		2,655,537	(124,739)
Comprehensive income		9,481,822	8,947,800

*Earnings per share:*
Basic		0.18	0.26
Diluted		0.18	0.26

FUSHI COPPERWELD, INC. AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
	Three-Month Period Ended March 31,
	2011		2010
	USD		USD
Cash flows from operating activities:
Net cash provided by operating activities		15,013,956		6,680,019

Cash flows from investing activities:
Payments for acquisition of Jinchuan		-		(5,075,000)
Purchases of property, plant and equipment		(282,486)		(1,262,493)
Cash acquired from acquisition of Jinchuan		-		859,243
Net cash used in investing activities		(282,486)		(5,478,250)

Cash flows from financing activities:
Payment for Jinchuan acquisition		(4,819,107)
Repayment on revolving line of credit		-		(4,033,783)
Repayment on bank loan		(162,500)
Repayment of notes payable		-		(35,600,000)
Proceeds from issuance of common stock and warrants		622,275		59,800,050
Transaction costs paid in connection with issuance common stock		-		(3,438,550)
Net cash provided by (used in) financing activities		(4,359,332)		16,727,717

Effect of foreign currency exchange rate changes on cash		1,065,919		8,891
Net increase in cash		11,438,057		17,938,377

Cash at beginning of period		123,000,338		60,597,849

Cash at end of period		134,438,395		78,536,226

Supplemental disclosure of cash flow information:
Interest paid		98,595		1,395,799
Income taxes paid		2,572,995		1,802,931
Accrual for the acquisition of Jinchuan		-		4,819,107

SOURCE Fushi Copperweld, Inc.

Source: PR Newswire (May 4, 2011 - 7:32 AM EDT)

[Press Release] Fushi Copperweld Announces 2010 Fourth Quarter and Full Year Results

05 Apr 2011 10:00:00 GMT

- 2010 Fourth Quarter and Full Year Results in Line with Preliminary Results -

- Company Restates Results for 2007, 2008 and 2009 Fiscal Years and the first three quarters of 2010 to Reflect Certain Non-Cash Adjustments -

- Company has Filed 2010 10-K -

Apr. 5, 2011 (PR Newswire) --

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BEIJING, April 5, 2011 /PRNewswire-Asia-FirstCall/ -- Fushi Copperweld, Inc. (NasdaqGS: FSIN), the leading global manufacturer and innovator of copper-clad bimetallic wire used in a variety of telecommunication, utility, transportation and other electrical applications, today announced final financial results for the fourth quarter and full year periods ended December 31, 2010 in line with previously announced preliminary results.

Fourth Quarter 2010 Results

Revenues for the fourth quarter of 2010 increased 35.2% to $69.9 million, up from $51.7 million in the prior year quarter. Organic growth during the fourth quarter, excluding the contributions of the acquisitions of Dalian Jinchuan, was 21.8%.

Gross profit in the fourth quarter of 2010 increased 28.8% to $22.2 million from $17.2 million a year ago. Gross margin decreased to 31.8% from 33.4% in the year ago period, primarily because of lower gross margin of Dalian Jinchuan which was acquired in February 2010. Gross margin for the Company’s Dalian cladding facility was 38.3% compared to 38.2% in the prior year period while gross margin for the Company's Fayetteville, TN facility increased from 8.7% in the fourth quarter of 2009 to 11.5% in the fourth quarter of 2010.

Operating expenses in the fourth quarter of 2010 increased 29.9% to $6.2 million, compared to $4.8 million in the prior year's quarter. On a percentage basis, operating expenses decreased to 8.9% of revenues from 9.3% in the fourth quarter of 2009. Operating income was $16.0 million, a 28.3% increase compared to the prior year period.

As a result of the Company’s completion of its previously announced reevaluation of the application of generally accepted accounting principles (“GAAP”) as described in more detail in the Company’s preliminary earnings release dated March 11, 2011, the Company’s results for the 2010 fourth quarter include anon-cash adjustment of $15.4 million, or $0.40 per diluted share, related to the adjustment of the beginning-of-the-period balance of a valuation allowance of U.S. Entities(Parent and Copperweld Bimetallics, LLC.).

On GAAP basis, net loss for the 2010 fourth quarter was $2.4 million, or $0.06 per diluted share. This compares with GAAP net income of $10.2 million, or $0.34 per diluted share, in the fourth quarter of 2009. GAAP results for the fourth quarter of 2010 include net interest income of $0.0 million, offset by other expenses of $0.4 million.

On non-GAAP basis, adjusted net income was $13.4 million or $0.35 per diluted share in the fourth quarter of 2010, compared to adjusted net income of $10.3 million or $0.34 per diluted share, in the prior year fourth quarter.

Fully diluted share count increased 27.1% in the fourth quarter of 2010 to 38.1 million from 30.0 million a year ago, primarily as a result of the Company’s secondary offering during the first quarter of 2010.

During the three months ended December 31, 2010, the Company generated $27.4 million net cash from operating activities, compared to $11 million in the comparable period in 2009.

Fiscal Year 2010 Results

Revenues for fiscal year 2010 increased 44.8% to $265.0 million, up from $182.9 million in the year ago period. Metric tons shipped in fiscal year 2010 increased 2.4% to 38,607 metric tons compared to 37,718 metric tons in fiscal year 2009.

Gross profit for fiscal year 2010 increased 44.7% to $79.3 million or 30.0% of revenue from $54.8 million or 30.0% of revenue in fiscal year 2009.

Operating expenses for fiscal year 2010 were $21.2 million, compared to $17.9 million in fiscal year 2009. On a percentage basis, operating expenses decreased to 8.0% of revenues from 9.8% for fiscal year 2009. Operating income increased 57.3% to $58.0 million or 21.9% of revenues compared to $36.9 million or 20.2% of revenues in fiscal year 2009.

On GAAP basis, net income for the 2010 fiscal year was $31.9 million, or $0.85 per diluted share. This compares with net income of $21.9 million, or $0.76 per diluted share, in the 2009 fiscal year.

On non-GAAP basis, adjusted net income was $48.6 million or $1.30 per diluted share in 2010 fiscal year, compared to adjusted net income of $28.9 million or $1.01 per diluted share, in the 2009 fiscal year.

As of December 31, 2010, the Company’s cash position was $123.0 million, an increase of 103.0% from $60.6 million as of December 31, 2009. Accounts receivable at December 31, 2010 were $65.8 million, compared to $67.4 million at December 31, 2009. Long-term debt totalled $5.7 million as of December 31, 2010, compared to $25 million at December 31, 2009.

Mr. Joe Longever, co-Chief Executive Officer of Fushi Copperweld, commented, “Our 2010 fourth quarter and full year results came in as expected and reflect strong performance in a shifting market driven by infrastructure spending priorities and volatile raw material pricing. We remain focused on leveraging the global opportunity we see for our products and will continue to expand our presence in both current and new markets to grow our business.”

Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures

Fushi Copperweld’s net income was materially impacted by certain non-cash expenses and one-time events. To supplement the Company’s consolidated financial statements, which are prepared and presented in accordance with GAAP, the Company uses non-GAAP net income for the impact of non-cash expense related to share-based compensation expense, unrealized loss (gain) on cross currency interest swap derivative (“SWAP”) and the change in the fair values of embedded conversion options in our Convertible Notes and warrants, gain (loss) on debt extinguishment and adjustment of the beginning-of-the-year balance of valuation allowance against deferred income tax assets. These Company-defined adjusted measures are being provided because management believes they are useful in analyzing the underlying operating performance of the business. These measures may be inconsistent with similar measures presented by other companies and should only be used in conjunction with our results reported in accordance with GAAP. A reconciliation of earnings per share as reported and net income (loss) as reported to non-GAAP earnings per share and non-GAAP net income as follows.

		Q4 2010		Q4 2009		Year 2010		Year 2009

Net income (loss)	$	(2,444,286)	$	10,215,126	$	31,867,767	$	21,911,788

Reconciliation items:
Unrealized loss (gain) on SWAP				(120,137)		(882,527)		3,155,451
Change in fair value of warrant liability								752,114
Change in fair value of embedded conversion option								7,181,198
Share-based compensation expense		405,658		179,527		933,865		1,280,008
Loss on extinguishment of HY Notes						2,395,778
Gain on extinguishment of Convertible Notes								(3,842,935)
Income tax impact of reconciliation items				(20,193)				(1,508,056)
Adjustment of the beginning of the period/year balance of valuation allowance		15,407,083				14,283,528
Non-GAAP Net income	$	13,368,455	$	10,254,324	$	48,598,411	$	28,929,568


GAAP Earnings per share
Basic	$	(0.06)	$	0.35	$	0.86	$	0.78
Diluted	$	(0.06)	$	0.34	$	0.85	$	0.76

Non- GAAP Earnings per share
Basic	$	0.35	$	0.35	$	1.32	$	1.02
Diluted	$	0.35	$	0.34	$	1.30	$	1.01

Impact of Restated Results

In addition, the Company announced that it has completed the restatement of its consolidated financial statements for the years ended December 31, 2007, 2008 and 2009, as well as its previously filed interim financial statements for the first three quarters of 2010 and subsequently filed all amendments with the Securities and Exchange Commission.

As previously announced on March 24, 2011, the Audit Committee of the Board of Directors of the Company concluded that the Company's previously issued financial statements for the years ended December 31, 2007, 2008 and 2009, and its unaudited interim financial statements for the quarters ended March 31, 2010, June 30, 2010 and September 30, 2010 should no longer be relied upon and should be restated, due to two errors in the application of GAAP regarding (1) the accounting for the SWAP and (2) the acquisitions of Dalian Jinchuan Electric Cable Co., Ltd. (“Jinchuan”) and Shanghai Hongtai Industrial Co., Ltd. (“Hongtai”).A detailed explanation, as well as the impact, of these items on prior periods is as follows:

Cross-currency interest swap derivative

In April 2007, the Company entered into a SWAP to hedge both variable interest risk of its $40 million high yield notes and foreign currency risk of its operating subsidiaries in the People’s Republic of China. The Company applied hedge accounting to the SWAP. However, because the Company was not exposed to foreign currency risk on the high yield notes, the SWAP did not qualify for hedge accounting. All changes in fair value of the SWAP therefore should have been recognized in earnings.

The effects of correcting this error, after income taxes are a decrease in net income of $2.1 million, or $0.07 per diluted share, an increase in net income of $2.7 million, or $0.10 per diluted share, a decrease in net income of $5.6 million, or $0.22 per diluted share, and a decrease in net income of $5.0 million, or $0.13 per diluted share, for the years ended December 31, 2009, 2008, and 2007, and for the quarter ended March 31, 2010, respectively.

Acquisitions of Jinchuan and Hongtai

In February and May 2010, Fushi Copperweld acquired 100% equity interests in Jinchuan and Hongtai, respectively. Based on the original valuation results and purchase price allocations, the Company had recorded $3.3 million and $1.8 million of gain on bargain purchases resulting from the acquisitions of Jinchuan and Hongtai, respectively. During the year-end closing process, however, management of the Company identified certain errors in the original purchase price allocations with respect to the fair value of certain property, plant and equipment the Company acquired in the two acquisitions. As a result, the Company engaged another independent valuation firm to help determine the fair values of property, plant and equipment, intangible assets and land use rights acquired. Pursuant to the final valuation results, goodwill of approximately $0.6 million and $1.1 million were recognized relating to the Jinchuan and Hongtai acquisitions, respectively.

The effects of correcting this error, after income taxes are a decrease of net income of $3.3 million, or $0.09 per diluted share, and a decrease of $1.1 million, or $0.03 per diluted share, for the quarters ended March 31, 2010 and June 30, 2010, respectively.

Previously Announced Deferred Income Tax Assets

As previously announced, in addition to the two items described above, the Company was reevaluating the application of GAAP in determining the realizability of deferred income tax assets. The Company has concluded that no errors were made related to deferred income tax assets in previous periods. Furthermore, the Company has determined that a valuation allowance of $14.3 million against the beginning-of-the-year balance of the deferred income tax assets will be provided as of December 31, 2010 because of a substantial change in the Company’s global business strategy during 2010 which creates uncertainty on the future profitability of the U.S. Entities. Specifically, the Company approved a global expansion plan and a global marketing strategy during 2010. In order to expand its global market share, the Company will recruit senior marketing and business strategy executives to formulate strategic and action plans to push forward such initiative. Additional executive and marketing costs at the Company level are expected to be incurred in the near term. These changes in circumstances have resulted in the change in judgment about the future realizability of the U.S. Entities’ deferred income tax assets.

For further information regarding these restatements, please refer to the Company’s amended Form 10-K for the year ended December 31, 2009, which also incorporates the Company’s financial results for the years ended December 31, 2007 and 2008, as well as its amended Form 10-Q’s for the first three quarters of 2010, which have been filed with the Securities and Exchange Commission.

Mr. Longever concluded, “We are pleased to have reached a resolution on these issues and look forward to devoting all our energy and resources to the effective execution of our global expansion plan and business development strategy.”

About Fushi Copperweld

Safe Harbor Statement

This press release may include certain statements that are not descriptions of historical facts, but are forward-looking statements. Forward-looking statements can be identified by the use of forward-looking terminology such as “will” “believes”, “expects” or similar expressions. These forward-looking statements may also include statements about our proposed discussions related to our business or growth strategy, which is subject to change. Such information is based upon expectations of our management that were reasonable when made but may prove to be incorrect. All of such assumptions are inherently subject to uncertainties and contingencies beyond our control and upon assumptions with respect to future business decisions, which are subject to change. We do not undertake to update the forward-looking statements contained in this press release. For a description of the risks and uncertainties that may cause actual results to differ from the forward-looking statements contained in this press release, see our most recent Annual Report filed with the Securities and Exchange Commission (SEC) on Form 10-K, and our subsequent SEC filings. Copies of filings made with the SEC are available through the SEC's electronic data gathering analysis retrieval system (EDGAR) at www.sec.gov.

For more information, please contact:

Investors

Nathan J. Anderson, VP/Corporate Development — Fushi Copperweld Inc.
Phone +1.931.433.0482 — E-mail: IR@fushicopperweld.com
Web: www.fushicopperweld.com

FUSHI COPPERWELD, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME AND
OTHER COMPREHENSIVE INCOME
	December 31, 2010

				December 31		December 31

				2010		2009

	REVENUES		$	264,972,400	$	182,932,292

	COST OF GOODS SOLD			185,684,859		128,122,357

GROSS PROFIT			79,287,541		54,809,935

OPERATING EXPENSE
	Selling expenses			5,793,565		4,869,987
	General and administrative expenses			15,451,132		13,051,442
	Total operating expense			21,244,697		17,921,429

INCOME FROM OPERATIONS			58,042,844		36,888,506

OTHER INCOME (EXPENSE)

	Acquisition gain			-
	Interest income			811,408		369,267
	Interest expense			(903,593)		(5,271,427)
	Gain (Loss) on cross currency hedge
	Loss on extinguishment of derivative instrument
	Gain (loss) on debt extinguishment			(2,395,778)		3,842,935
	Change in derivative liability - Warrants					(752,114)
	Change in derivative liability - conversion option					(7,181,198)
	Change in fair value of derivative instrument			128,861		(4,730,440)
	Other (expense) income			(623,065)		(314,570)
	Registration rights penalty
	Total other expense, net			(2,982,167)		(14,037,547)

INCOME BEFORE INCOME TAXES			55,060,677		22,850,959

	Deferred income tax benefit			14,283,528		(4,991,295)
	Current income tax expense			8,909,382		5,930,466
	Total income tax, net			23,192,910		939,171

NET INCOME			31,867,767		21,911,788

OTHER COMPREHENSIVE INCOME
	Unrealized gain or (loss) on marketable securities
	Foreign currency translation adjustment			10,891,105		132,816
	Change in fair value of derivative instrument
	Reclassification of change in fair value of derivative instrument to earnings

COMPREHENSIVE INCOME		$	42,758,872	$	22,044,604

NET INCOME PER SHARE-BASIC		$	0.86	$	0.78

BASIC WEIGHTED AVERAGE NUMBER OF SHARES			36,879,856		28,265,748

NET INCOME PER SHARE-DILUTED		$	0.85	$	0.76

DILUTED WEIGHTED AVERAGE NUMBER OF SHARES			37,328,898		28,643,002

FUSHI COPPERWELD, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEET
AS OF December 31, 2010

						Dec. 31,		December 31,
						2010		2009
						Audited
CURRENT ASSETS:
	Cash		$	123,000,338	$	60,597,849
	Marketable Securities
	Restricted cash
	Accounts receivable, trade, net of allowance of bad debt			65,765,722		67,407,572
	$538,903 and $1,024,684 as of December 31, 2010 and December 31,2009
	Inventories			16,143,922		10,875,782
	Notes receivables
	Other receivables and prepaid expenses			743,206		2,137,566
	Advances to suppliers			15,022,976		8,582,346
	Cross currency hedge receivable
	Deposit in derivative hedge
	Prepaid taxes
		Total current assets			220,676,164		149,601,115

	PLANT AND EQUIPMENT, net			124,177,512		117,385,566

OTHER ASSETS:
	Advances to suppliers, noncurrent
	Notes receivables, noncurrent
	Prepaid expenses, non current
	Land use rights			13,089,733		11,331,351
	Prepaid land use right			9,623,181
	Intangible assets, net			577,587		592,705
	Intangible asset, net of accumulated amortization
	Goodwill			1,669,789
	Deferred loan expense, net
	Deferred tax assets					14,283,528
	Other non-current assets			443,397		4,100,859
		Total other assets			149,581,199		30,308,443

			Total assets		$	370,257,363	$	297,295,124

LIABILITIES A N D SHAREHOLDERS' EQUITY

CURRENT LIABILITIES:
	Accounts payable, trade		$	3,241,428	$	4,002,773
	Notes Payable, current					10,000,000
	Revolver line					4,033,783
	Short term bank loans
	Current portion of long term debts			650,000
	Other payables and accrued liabilities			15,542,111		6,598,932
	Extinguished convertible note liabilities
	Extinguished derivative instrument liabilities
	Customer deposits
	Taxes payable
	Cross currency hedge Payable					436,702
	Obligation under capital lease, current
	COMMITMENTS AND CONTINGENCIES
	Loan from shareholder
		Total current liabilities			19,433,539		25,072,190

LONG TERM LIABILITIES:
	Long term bank loans, net of current portion			5,687,500
	Derivative Liability - conversion option
	Derivative Liability - Warrants
	Notes payable, noncurrent					25,000,000
	Obligation under capital lease, non current			65,057		153,626
	Fair value of derivative instrument					7,532,527
	Deferred Tax Liabilities			669,540
		Total long term liabilities			6,422,097		32,686,153

			Total liabilities			25,855,636		57,758,343



SHAREHOLDERS' EQUITY:
	Preferred stock, $0.001 par value, 5,000,000 shares authorized, none issued or outstanding
	Common stock, $0.006 par value, 100,000,000 shares authorized,
		December 31, 2010 shares issued and outstanding:
		December 31, 2009 shares issued and outstanding			228,596		178,638
	Restricted common stock in escrow
	Additional paid in capital			167,596,792		105,540,676
	Common stock subscription receivable
	Statutory reserves
	Retained earnings			140,462,840		108,595,073
	Accumulated other comprehensive income			36,113,499		25,222,394
		Total shareholders' equity			344,401,727		239,536,781

			Total liabilities and shareholders' equity		$	370,257,363	$	297,295,124

	2010	2009
	USD	USD
Cash flows from operating activities:
Net income	31,867,767	21,911,789
Adjustments to reconcile net income to cash provided by operating activities:
Accrual (reversal) of bad debt allowance	(507,829)	705,825
Write-down of inventories	276,898	79,563
Depreciation and amortization	12,446,645	10,238,792
Loss on disposal of long-lived assets	294,595	117,430
Amortization of debt issuance cost	255,673	1,272,375
Deferred income tax expenses (benefit)	14,283,528	(4,991,296)
Share-based compensation expense	933,865	1,280,008
Unrealized loss (gain) on cross-currency interest swap derivative	(882,527)	3,155,451
Loss (gain) on extinguishment of notes payable	2,395,778	(3,842,935)
Change in fair value of conversion option	—	7,181,198
Change in fair value of warrants liability	—	752,114
Loss on marketable securities	—	—
Change in operating assets and liabilities, net of effect of acquisitions of Jinchuan and Hongtai:
Accounts receivable	7,861,342	(18,099,658)
Inventories	(3,862,514)	(3,856,156)
Advances to suppliers	(5,378,045)	11,661,597
Prepaid expenses and other current assets	422,085	(220,548)
Accounts payable	(4,022,618)	(3,111,464)
Accrued expenses and other current liabilities	(5,695,936)	1,653,804
Net cash provided by operating activities	50,688,707	25,887,889

Cash flows from investing activities:
Proceeds from sales of marketable securities	—	—
Payments for acquisitions of Jinchuan and Hongtai	(6,375,000)	—
Cash acquired from acquisition of Jinchuan and Hongtai	901,442	—
Proceeds from disposal of equipment	255,260	424,444
Purchase of land use rights	(9,480,129)	—
Purchase of property, plant and equipment	(2,679,246)	(5,058,250)
Net cash used in investing activities	(17,377,673)	(4,633,806)


Cash flows from financing activities:
Proceeds from interest-free loans provided by Mr. Li Fu	23,000,000	12,186,677
Repayment of interest-free loans provided by Mr. Li Fu	(23,000,000)	(12,186,677)
Release of restricted cash	—	1,000,000
Repayment on revolving line of credit	(4,033,783)	(719,760)
Proceeds from long-term bank loans	6,500,000	—
Repayment of long-term bank loans	(162,500)	(17,553,600)
Repayment of notes payable	(35,600,000)	(5,000,000)
Repurchase of convertible notes payable	—	(6,060,000)
Proceeds from issuance of common stock and warrants	62,010,759	2,086,626
Transaction costs paid in connection with issuance of common stock	(3,438,550)	—
Net cash provided by (used in) financing activities	25,275,926	(26,246,734)

Effect of foreign currency exchange rate changes on cash	3,815,529	(21,270)
Net increase (decrease) in cash	62,402,489	(5,013,921)
Cash at beginning of year	60,597,849	65,611,770
Cash at end of year	123,000,338	60,597,849

*Supplemental disclosure of cash flow information:*	1,425,935	3,725,954
Interest paid	8,429,771	5,131,397
Income taxes paid
	—	—
*Non cash investing and financing transactions:*	2,600,000	—
Conversion of convertible notes into common stock	—	4,000,000
Issuance of common stock in connection with the Hongtai acquisition	—	6,263,281
Issuance of common stock to extinguish convertible notes payable	5,075,000	—
Issuance of common stock to settle Kuhn’s litigation	—	—
Accrual for the acquisition of Jinchuan	—	—

SOURCE Fushi Copperweld, Inc.

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[Press Release] Fushi Copperweld, Inc. Announces Receipt of 'Going Private' Proposal at $11.50

03 Nov 2010 11:30:00 GMT

BEIJING, Nov. 3, 2010 /PRNewswire-Asia-FirstCall/ -- Fushi Copperweld, Inc. ("Fushi" or the "Company") (Nasdaq:FSIN - News), the leading global manufacturer and innovator of copper-clad bimetallic wire used in a variety of telecommunication, utility, transportation and other electrical applications, today announced that its Board of Directors has received a proposal letter from its Chairman and Chief Executive Officer, Mr. Li Fu ("Mr. Fu") and Abax Global Capital (Hong Kong) Limited on behalf of funds managed by it and its affiliates ("Abax") for Mr. Fu and Abax to acquire all of the outstanding shares of Common Stock of Fushi not currently owned by Mr. Fu and his affiliates in a going private transaction for $11.50 per share in cash, subject to certain conditions. Mr. Fu and his affiliates own approximately 29.2% of Fushi's Common Stock. According to the proposal letter, Mr. Fu and Abax will form an acquisition vehicle for the purpose of completing the acquisition and plan to finance the acquisition with a combination of debt and equity capital. The proposal letter states that the equity portion of the financing would be provided by Mr. Fu, Abax and related sources. The proposal letter also states that Mr. Fu and Abax are currently in discussion to engage a financial advisor to the acquisition vehicle that will be formed by Mr. Fu and Abax.

Fushi's Board of Directors has formed a special committee of independent directors consisting of John F. "Jack" Perkowski, Barry Raeburn and Feng Bai (the "Special Committee") to consider this proposal. The Special Committee intends to retain independent advisors, including an independent financial advisor, to assist it in its work. No decisions have been made by the Special Committee with respect to Fushi's response to the proposal. There can be no assurance that any definitive offer will be made, that any agreement will be executed or that this or any other transaction will be approved or consummated.

About Fushi Copperweld

Fushi Copperweld, Inc., through its wholly owned subsidiaries, Fushi International (Dalian) Bimetallic Cable Co. Ltd., and Copperweld Bimetallics LLC, is the leading manufacturer and innovator of copper-clad bimetallic engineered conductor products for electrical, telecommunications, transportation, utilities and industrial applications. With extensive design and production capabilities, and a long-standing dedication to customer service, Fushi Copperweld is the preferred choice for bimetallic products worldwide.

Safe Harbor Statement

For more information, please contact:
Investors
Nathan J. Anderson, VP/Corporate Development - Fushi Copperweld, Inc.
Phone +1.931.433.0482 - E-mail: IR@fushicopperweld.com
Web: www.fushicopperweld.com

[Press Release] Fushi Copperweld Reports Third Quarter 2010 Financial Results

02 Nov 2010 11:30:00 GMT

BEIJING, Nov. 2, 2010 /PRNewswire-Asia-FirstCall/ -- Fushi Copperweld, Inc. (Nasdaq: FSIN), the leading global manufacturer and innovator of copper-clad bimetallic wire used in a variety of telecommunication, utility, transportation and other electrical applications, today announced financial results for the third quarter ended September 30, 2010.

Third Quarter Highlights

Increased non-GAAP Net Income to $0.34 per diluted share, up 30.8% from $0.26 per diluted share in the third quarter of 2009;
Adjusted Net Income increased 72.3% to $13.0 million, from $7.6 million in the third quarter 2009;
Gross profit increased 29.6% to $19.7 million, or 29.6% of revenue, from $15.2 million in the third quarter 2009; and
Metric tons shipped at US facility increased 32.2% compared to third quarter 2009.

Revenues for the third quarter of 2010 increased 39.5% to $66.5 million, up from $47.7 million in the prior year quarter. The $18.8 million increase in revenues reflected organic growth of 21.2% as a result of continued improvement in global demand and higher average selling prices primarily due to increases in copper prices, as well as the contributions of acquisitions completed subsequent to the third quarter of 2009. These factors, along with a 32.2% increase in sales volumes from the Company's US facility, offset a slight decline in sales volumes within China resulting from the continued slowdown in capital spending related to China's 3G build out.

Gross profit in the 2010 third quarter increased 29.6% to $19.7 million from $15.2 million a year ago. Consolidated gross margin as a percentage of revenues decreased to 29.6% from 31.8% in the prior year period, primarily as a result of higher copper prices and lower gross margins contributed from acquisitions completed subsequent to the third quarter of 2009. Gross margin for the Company's Dalian cladding facility increased to 36.3% from 34.5% in the prior year quarter, reflecting improvements in both product mix and pricing, while gross margin for the Company's Fayetteville, TN facility decreased to 12.5% from 20.1% in the prior year quarter, reflecting higher raw material costs that were partially offset by enhanced operational efficiencies resulting from higher sales volumes and the benefits of past cost savings initiatives.

Operating expenses in the third quarter increased to $4.7 million, compared to $4.6 million in the prior year's quarter, due to an increase in costs resulting from the Company's acquisitions. On a percentage basis, operating expenses in the third quarter 2010 decreased to 7.1% of revenues from 9.6% in the third quarter of 2009.

On a GAAP basis, net income for the 2010 third quarter was $12.9 million, or $0.34 per diluted share. This compares with net income of $9.2 million, or $0.31 per diluted share, in the third quarter of 2009. GAAP results for the third quarter of 2010 include net interest income of $154,274, offset by other expenses of $176,000.

Excluding all non-cash gains and expenses and one-time, non-recurring losses, adjusted net income was $13.0 million or $0.34 per diluted share in the third quarter of 2010, compared to adjusted net income of $7.5 million or $0.26 per diluted share, in the prior year third quarter.

Fully diluted share count increased 30.5% in the third quarter of 2010 to 38.1 million from 29.2 million a year ago, primarily as a result of the Company's follow on offering during the first quarter of 2010, as previously announced.

During the three months ended September 30, 2010, the Company generated $20.1 million of cash flow from operations, compared to $11.1 million in the comparable period in 2009. In the nine months ended September 30, 2010, cash flow from operations was $30.1 million, compared to $15.6 million for same period in last year. Long-term debt totaled $5.9 million, compared to $32.7 million at December 31, 2009. Accounts receivable at September 30, 2010 were $64.5 million, compared to $67.3 million at December 31, 2009.

During the quarter, the Company continued its reach into southeastern China through the transfer of acquired assets following the acquisition of Shanghai Hongtai, reported in the second quarter 2010, to its new facility in Yixing, enabling expanded production capacity, ancillary drawing and finishing capabilities, and closer proximity to over 100 telecom and power wire and cable manufacturers in Eastern and Southern China. Initial registered capital for the opening of the facility was provided by the Company to take advantage of investment incentives available to foreign invested entities offered in the region. In order to facilitate the investment in the form of USD, the Company has received a short-term shareholder loan in the amount of $23.0 million to expedite the process. The Company's cash position at the end of the 2010 third quarter was $117.9 million, which included $15.0 million of the original loan proceeds provided prior to the close of the 2010 third quarter. The remaining $8.0 million from the loan was received early in the 2010 fourth quarter. The loan has already been repaid in its entirety by the Company in the form of RMB in the fourth quarter of 2010.

In accordance with Internal Revenue Code Section 956, the loan shall be treated as a "deemed dividend" (Subpart F income) to Company for tax purposes, and will result in a one-time, non-cash tax expense of approximately $1.3 million or $0.03 per diluted share in the fourth quarter of 2010 which will be applied against the Company's deferred tax assets.

Joe Longever, co-Chief Executive Officer of Fushi Copperweld, commented, "Our performance in the third quarter reflects the global nature of our business, the breadth and flexibility of our product offering and the developing demand for our products worldwide. While we experienced some slowdown within certain sectors in China, the subsequent volume declines were mostly offset by growth from our U.S. facility, which supplies product to a variety of markets including Europe, South America and the Middle East. Additionally, although we saw a decrease in demand from telecom customers related to the 3G build out in China, there was a concurrent pick-up in sales in the utility market. We also continued to make solid progress in introducing our products into new end markets, such as transportation and CATV in China, as well as new geographies worldwide."

Mr. Longever concluded, "Fushi Copperweld remains in an excellent position to capitalize on the many opportunities we see worldwide to expand our business and our position as the leading supplier of copper-clad bimetallic wire. In China, the integration of our recent acquisitions and the roll out of our CCS product are both proceeding in line with our expectations, and we continue to increase our global presence to leverage the opportunities we see in emerging markets as countries continue to invest in critical infrastructure build outs. With a liquid balance sheet and strong cash flows, we also have the financial flexibility to continue investing in our future growth. Overall, Fushi Copperweld is well poised to address the large global market opportunity we see before us."

Outlook

Based on current business trends, the Company expects adjusted fully diluted earnings per share to be between $ 0.29 and $ 0.31 for the fourth quarter and to be between $ 1.25 and $ 1.29 for the 2010 full-year period, based on an estimated weighted average diluted share count of 38.3 million shares for the fourth quarter of 2010 and 37.4 million for full-year periods. This expectation is based on the assumption that the effective tax rate at the consolidated level will be 23.0% and 12.8% % for the fourth quarter and 2010 full-year period, respectively, and includes the one-time increase in tax expense of $0.03 per diluted share related to the Company's Yixing facility investment, as described above.

Conference Call

The Company will conduct a conference call to discuss the third quarter 2010 results today, Tuesday, November 2, 2010, at 8:30 am ET. To participate, the conference call may be directly accessed from the U.S. and Canada at 1-866-223-7781 and accessed internationally at 1- 416-340-8018. A live webcast of the conference call will also be available at http://bit.ly/FSINevents on the Investor Relations section. A replay of the call will be available at http://bit.ly/FSINevents.

Reconciliation of Non-GAAP Financial Measures

Our net income was materially impacted by certain non-cash expenses and one-time events. To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, we use EPS as adjusted for the impact of non-cash expense related to stock-based compensation and the change in the fair value of derivative liabilities related to the conversion option in Convertible Bonds and certain warrants. These Company-defined adjusted measures are being provided because management believes they are useful in analyzing the underlying operating performance of the business. These measures may be inconsistent with similar measures presented by other companies and should only be used in conjunction with our results reported according to accounting principles generally accepted in the United States. A reconciliation of earnings per share as reported and operating income as reported to adjusted non-GAAP earnings per share and adjusted non-GAAP operating income follows.


	Q3 2010	Q3 2009

GAAP Net Income	12,870,762	9,194,933
Non-cash expense:
Loss (gain) on debt extinguishment		(3,842,935)
Gain on CB extinguishment		2,058,352
Stock-based compensation	154,558	179,527
Total non-cash expense	154,558	(1,605,056)
Provision for income tax	(52,550)	(61,039)
Adjusted to Non-GAAP Net income	12,972,770	7,528,838

GAAP Earnings per share:
Basic	0.34	0.33
Diluted	0.34	0.31

Non-GAAP Earnings per share:
Basic	0.34	0.27
Diluted	0.34	0.26

About Fushi Copperweld

Safe Harbor Statement

For more information, please contact:

Investors
Nathan J. Anderson, VP/Corporate Development
Fushi Copperweld, Inc.
Phone: +1.931.433.0482
Email: IR@fushicopperweld.com
Web: www.fushicopperweld.com


FUSHI COPPERWELD, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS
AS OF SEPTEMBER 30, 2010 AND DECEMBER 31, 2009

		September 30,		December 31,
		2010		2009
		Unaudited
ASSETS
CURRENT ASSETS:
	Cash	$	117,866,998	$	60,597,849
	Accounts receivable, trade, net of allowance of bad debt of $522,729 and $1,024,684 as of September 30, 2010 and December 31, 2009, respectively		64,520,827		67,284,600

	Inventories		22,702,154		10,875,782
	Notes receivables		257,883		122,972
	Other receivables and prepaid expenses		505,709		1,137,566
	Advances to suppliers		21,228,320		8,582,346
	Deposit in derivative hedge		-		1,000,000
		Total current assets		227,081,891		149,601,115

PLANT AND EQUIPMENT, net		129,748,890		117,385,566

OTHER ASSETS:
	Advances to suppliers, non-current		540,482		1,356,404
	Notes receivables, non-current		179,106		699,106
	Intangible assets, net of accumulated amortization		14,277,324		11,924,056
	Deferred loan expense, net		181,514		2,045,349
	Deferred tax assets		15,407,083		11,722,469
		Total other assets		30,585,509		27,747,384

			Total assets	$	387,416,290	$	294,734,065

LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES:
	Revolver line of credit	$	-	$	4,033,783
	Accounts payable, trade		6,202,910		4,002,773
	Current portion of long-term debts		650,000		10,000,000
	Other payables and accrued liabilities		5,009,902		3,928,374
	Taxes payable		4,267,648		2,599,055
	Cross currency hedge payable		-		436,702
	Obligation under capital lease, current		79,084		71,503
	Loan payable to shareholder		15,000,000		-
		Total current liabilities		31,209,544		25,072,190

LONG-TERM LIABILITIES:
	Long-term debts		5,850,000		25,000,000
	Obligation under capital lease, non-current		88,232		153,626
	Fair value of derivative instrument		-		7,532,527
		Total long-term liabilities		5,938,232		32,686,153

			Total liabilities		37,147,776		57,758,343

	COMMITMENTS AND CONTINGENCIES		5,075,000		-

SHAREHOLDERS' EQUITY:
	Preferred stock, $0.001 par value, 5,000,000 shares authorized, none issued or outstanding as of September 30, 2010 and December 31, 2009		-		-
	Common stock, $0.006 par value, 100,000,000 shares authorized,
		September 30, 2010: 37,779,839 shares issued and outstanding		-		-
		December 31, 2009: 29,772,780 shares issued and outstanding		226,680		178,638
	Additional paid in capital		166,297,828		105,540,676
	Statutory reserves		20,793,298		16,282,793
	Retained earnings		126,454,574		97,283,748
	Accumulated other comprehensive income		31,421,134		17,689,867
		Total shareholders' equity		345,193,514		236,975,722

			Total liabilities and shareholders' equity	$	387,416,290	$	294,734,065


FUSHI COPPERWELD, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME (LOSS)
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2010 AND 2009
(UNAUDITED)

			Three months ended September 30,		Nine months ended September 30,
			2010		2009		2010		2009

REVENUES	$	66,507,433	$	47,676,346	$	195,062,641	$	131,234,427

COST OF GOODS SOLD		46,842,955		32,506,879		137,986,750		93,672,906

GROSS PROFIT		19,664,478		15,169,467		57,075,891		37,561,521

OPERATING EXPENSES:
	Selling expenses		1,457,154		1,078,158		4,074,280		3,366,719
	General and administrative expenses		3,242,826		3,510,034		11,161,896		9,747,637
	Total operating expenses		4,699,980		4,588,192		15,236,176		13,114,356

INCOME FROM OPERATIONS		14,964,498		10,581,275		41,839,715		24,447,165

OTHER INCOME (EXPENSE):
	Interest income		200,295		76,094		590,236		242,717
	Interest expense		(46,021)		(1,201,014)		(560,476)		(4,150,086)
	Bargain purchase gain		-		-		5,070,389		-
	Loss on cross currency hedge		-		(1,199,438)		(753,666)		(1,581,812)
	Loss on derivative instrument settlement		-		-		(6,650,000)		-
	Gain (Loss) on debt extinguishment		-		3,842,935		(2,395,778)		3,842,935
	Change in fair value of derivative liability - warrants		-		-		-		(752,114)
	Change in fair value of derivative liability - conversion option		-		(2,058,352)		-		(7,181,198)
	Other (expense) income, net		(176,001)		53,421		(194,445)		(193,061)
	Total other income (expense), net		(21,727)		(486,354)		(4,893,740)		(9,772,619)

INCOME BEFORE INCOME TAXES		14,942,771		10,094,921		36,945,975		14,674,546

(PROVISION) BENEFIT FOR INCOME TAXES:
	Deferred income tax benefit		158,599		888,378		3,684,614		3,253,085
	Current income tax expense		(2,230,608)		(1,788,366)		(6,949,258)		(4,069,081)
	(Provision) benefit for income taxes, net		(2,072,009)		(899,988)		(3,264,644)		(815,996)

NET INCOME		12,870,762		9,194,933		33,681,331		13,858,550

OTHER COMPREHENSIVE INCOME (LOSS):
	Foreign currency translation adjustment		4,433,165		72,136		6,198,740		112,093
	Change in fair value of derivative instrument		-		237,768		882,527		(3,275,588)
	Reclassification of change in cash flow hedge to earnings		-		-		6,650,000		-

COMPREHENSIVE INCOME	$	17,303,927	$	9,504,837	$	47,412,598	$	10,695,055

EARNINGS PER SHARE:
	Basic	$	0.34	$	0.33	$	0.92	$	0.50
	Diluted	$	0.34	$	0.31	$	0.91	$	0.48

WEIGHTED AVERAGE SHARES:
	Basic		37,694,626		28,084,416		36,553,784		27,827,152
	Diluted		38,077,845		29,206,508		37,030,499		28,676,832


FUSHI COPPERWELD, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2010 AND 2009
(UNAUDITED)

						2010		2009
CASH FLOWS FROM OPERATING ACTIVITIES:
			Net income	$	33,681,331	$	13,858,550
	Adjustments to reconcile net income
	provided by operating activities:
			Allowance for doubtful accounts adjustment		(513,846)
			Bad debt expense				862,302
			Write-off of non-current advances to suppliers		527,095		-
			Write-off of patent		131,250		-
			Reserve for inventories		255,027		62,914
			Write-off of inventories		-		119,133
			Depreciation		8,997,857		7,191,842
			Loss on sale of property and equipment		-		117,430
			Deferred taxes		(3,684,614)		(3,253,085)
			Reserve for notes receivables		500,000		-
			Amortization of intangible assets		401,539		357,449
			Amortization of loan commission		251,097		817,349
			Amortization of stock compensation expense		528,207		1,108,254
			Loss on cross currency hedge		753,666		1,581,812
			Loss on derivative instrument settlement		6,650,000
			Loss (gain) on debt extinguishment		2,395,778		(3,842,935)
			Bargain purchase gain		(5,070,389)		-
			Change in fair value of derivative liability - conversion option		-		7,181,198
			Change in fair value of derivative liability - warrants		-		752,114
	Change in operating assets and liabilities:
			Accounts receivable		7,379,296		(20,177,587)
			Inventories		(10,326,609)		(3,756,514)
			Notes receivables		(112,473)		100,700
			Other receivables and prepayments		574,714		401,070
			Advances to suppliers - current		(11,648,978)		15,073,210
			Accounts payable		(862,992)		(3,839,555)
			Other payables and accrued liabilities		(1,926,906)		(3,113,988)
			Taxes payable		1,233,444		3,984,006
				Net cash provided by operating activities		30,113,494		15,585,669

CASH FLOWS FROM INVESTING ACTIVITIES:
			Payment for purchase of subsidiaries		(6,375,000)		-
			Cash acquired from acquisition of subsidiaries		901,463		-
			Payments on cross currency hedge payable		(1,190,368)		(614,580)
			Payment for unwind of cross currency hedge		(5,650,000)		-
			Proceeds from sale of property and equipment		-		424,444
			Purchases of property and equipment		(1,926,580)		(3,292,007)
			Net of payments on prepayment of equipment		-		(1,877,177)
			Net of claimed VAT on purchases of property and equipment		57,551		-
				Net cash used in investing activities		(14,182,934)		(5,359,320)

CASH FLOWS FROM FINANCING ACTIVITIES:
			Proceeds from shareholder loan		15,000,000		4,552,000
			Net payments on revolver line of credit		(4,033,783)		(723,566)
			Payments on short-term bank loans		-		(17,553,600)
			Proceeds from term loans		6,500,000
			Release of restricted cash		-		1,000,000
			Payment on capital lease obligation		(57,814)		(23,575)
			Payment on high yield notes payable		(35,600,000)		(5,000,000)
			Proceeds on issuance of common stock		56,361,500		1,920,000
			Proceeds from exercise of warrants		1,180,599		-
			Proceeds from exercise of stock options		27,225		-
				Net cash provided by (used in) financing activities		39,377,727		(15,828,741)

			EFFECT OF EXCHANGE RATE ON CASH		1,960,862		230

CHANGE IN CASH		57,269,149		(5,602,162)

CASH, beginning of period		60,597,849		65,611,770

CASH, end of period	$	117,866,998	$	60,009,608

Supplemental cash flow disclosures:
	Interest paid	$	1,425,833	$	3,650,785
	Income tax paid	$	6,161,271	$	3,609,505

SOURCE Fushi Copperweld, Inc.

Investors -- Nathan J. Anderson, VP/Corporate Development of Fushi Copperweld, Inc., +1-931-433-0482, or IR@fushicopperweld.com

[Press Release] Fushi Copperweld Reports Second Quarter 2010 Financial Results

04 Aug 2010 11:00:00 GMT

DALIAN, China, Aug. 4 /PRNewswire-Asia-FirstCall/ -- Fushi Copperweld, Inc. (Nasdaq:FSIN - News), the leading global manufacturer and innovator of copper-clad bimetallic wire used in a variety of telecommunication, utility, transportation and other electrical applications, today announced financial results for the second quarter ended June 30, 2010.


    Second Quarter Highlights
    -- GAAP Net Income increased significantly to $13.4M, or $0.35 per diluted
       share
    -- Adjusted Net Income increased 74.5% to $12.4M, or $0.33 per diluted
       share
    -- US operations realized Net Income of $0.6M; best quarter since second
       quarter 2008
    -- Expanded presence in Southern China through acquisition of Shanghai
       Hongtai
    -- Sequential volume as measured in metric tons increased 9.6% as compared
       to the first quarter of 2010
    -- Gross profit increased 45.6% to $19.6M, or 28.4% of revenue
    -- Successfully installed 8,200 metric tons of copper-clad steel (CCS)
       capacity in Dalian facility

Revenues for the second quarter of 2010 increased 42.9% to $69.0 million, up from $48.3 million in the prior year quarter. Organic revenue growth excluding the impact of acquisitions during the quarter was 22.0%. The $20.7 million increase in revenues was primarily driven by continued improvement in global demand, higher average selling prices partially due to increased copper prices, and incremental contribution from recent acquisitions.

Gross profit in the second quarter of 2010 increased 45.6% year-over-year to $19.6 million from $13.5 million in the prior year quarter. Consolidated gross margin increased to 28.4% from 27.9% in the prior year period, as a result of improved pricing discipline within the wire industry, an improved product mix and benefits of operational leverage gained at the Company's Fayetteville facility. Gross margin for the Company's Dalian facility increased to 34.3% from 31.0% in the prior year quarter, while gross margin for the Company's Fayetteville, TN facility decreased to 14.6% from 15.5% in the prior year quarter primarily due to higher raw material prices.

Operating expenses in the second quarter increased to $5.5 million, compared to $4.3 million in the prior year quarter. This increase was due to higher G&A costs associated with increased global sales efforts and an increase in costs resulting from the Company's acquisitions of Shanghai Hongtai and Dalian Jinchuan. On a percentage basis, operating expenses decreased 80 basis points to 8.0% of revenues from 8.8% in the second quarter of 2009.

On a GAAP basis, net income for the 2010 second quarter was $13.4 million, or $0.35 per diluted share. This compares with net income of $1.6 million, or $0.06 per diluted share, in the second quarter of 2009. The GAAP results for the second quarter of 2010 included a gain on acquisitions of $1.8 million, interest income of $0.2 million, and other income of $0.1 million.

Excluding all non-cash gains and expenses and one-time, non-recurring losses, adjusted net income was $12.4 million or $0.33 per diluted share in the second quarter of 2010, compared to adjusted net income of $7.1 million or $0.25 per diluted share, in the prior year quarter.

During the three months ended June 30, 2010, the Company generated $2.1 million of cash flow from operations, compared to $5.5 million operating cash flow for the comparable period in 2009. In the six months ended June 30, 2010, the Company generated $10.0 million of cash flow from operations, compared to $4.5 million for same period last year. The Company's cash position at the end of the second quarter was $73.8 million while the Company's long-term debt position was $0.1 million, compared to debt of $32.7 million at December 31, 2009. Accounts receivables at June 30, 2010 were $64.1 million, compared to $57.0 million on March 31, 2010, an increase of 12.5% primarily due to sales growth at the Company's Fayetteville facility and recent acquisitions.

Mr. Joe Longever, co-Chief Executive Officer of Fushi Copperweld, commented, "We are very pleased with our performance in the 2010 second quarter, which speaks to the diversified nature of our business and the benefits of the actions we have taken to enhance our strategic positioning. Revenues in the quarter were driven by strong, emerging business in markets all over the world, which offset a decline in volumes resulting from what we believe to be a temporary slowdown in China's 3G build-out. The increased worldwide demand for our products was reflected in higher volumes at our Fayetteville facility, where we saw continued improvement in profitability as a result of higher utilization levels and the steps we've taken to reduce costs and improve our operational efficiency. The additional CCS capacity we recently added at our Dalian facility also enables us to meet some of this global demand and should play an even larger role in future quarters. Lastly, the integration of our recent acquisitions have progressed as planned, and we look forward to the additional benefits these strategic purchases will bring going forward."

Mr. Longever continued, "We remain confident in our ability to continue to grow our business and enhance our profitability. The demand for global infrastructure investment continues, even if the pace of the global economic recovery may have slowed since the beginning of the year. With so many attributes that differentiate our products, we are confident that we have the best solutions available to address the large market opportunity ahead of us. From an operational standpoint, we have the footprint to deliver our products anywhere in the world quickly and cost effectively, and we will continue to look for ways to better reach and serve our customers. We are very pleased with our progress and prospects."

Outlook

Based on current business trends, the Company expects adjusted fully diluted earnings per share to be between $0.33 and $0.35 for the third quarter of 2010 and to be between $1.25 and $1.29 for the 2010 full-year period, based on an estimated weighted average diluted share count of 38.3 million shares for the third quarter of 2010 and 37.4 million for full-year periods. This expectation is based on the assumption that the effective tax rate at the consolidated level will be 17.5%.

Conference Call

The Company will conduct a conference call to discuss the second quarter 2010 results today, Wednesday, August 4, 2010, at 8:30 am ET. To participate, the conference call may be directly accessed from the U.S. and Canada at 1-866-223-7781 and accessed internationally at 1-416-340-8018. A live webcast of the conference call will also be available at http://bit.ly/FSINevents on the Investor Relations section. A replay of the call will be available at http://bit.ly/FSINevents .

Reconciliation of Non-GAAP Financial Measures

Our net income was materially impacted by certain non-cash expenses and one-time events. To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, we use EPS as adjusted for the impact of non-cash expense related to stock-based compensation and the change in the fair value of derivative liabilities related to the conversion option in our outstanding Convertible Bonds and certain warrants, and the one-time non-cash gain on acquisition. These Company-defined adjusted measures are being provided because management believes they are useful in analyzing the underlying operating performance of the business. These measures may be inconsistent with similar measures presented by other companies and should only be used in conjunction with our results reported according to accounting principles generally accepted in the United States. A reconciliation of earnings per share as reported and operating income as reported to adjusted non-GAAP earnings per share and adjusted non-GAAP operating income follows.



                                                  Q2 2010           Q2 2009

    GAAP Net Income                             13,439,809         1,562,700
    Non-cash expense:
    Warrant - change in derivative
     liability                                          --         4,583,809
    CB - change of derivative liability                 --           688,876
    Acquisition gain                            (1,765,376)               --
    Stock based compensation                       180,592           337,859
    Total non-cash expense                      (1,584,784)        5,610,544
    Provision for income tax                       572,397          (114,872)
    Adjusted to Non-GAAP Net income             12,427,422         7,058,372

    GAAP Earnings per share:
      Basic                                           0.36              0.06
      Diluted                                         0.35              0.06

    Non-GAAP Earnings per share:
      Basic                                           0.33              0.25
      Diluted                                         0.33              0.25

About Fushi Copperweld

Safe Harbor Statement

This press release may include certain statements that are not descriptions of historical facts, but are forward-looking statements. Forward-looking statements can be identified by the use of forward-looking terminology such as "will" "believes", "expects," "estimates," or "may" or similar expressions or the negative of such terms. These forward-looking statements may also include statements about our proposed discussions related to our business or growth strategy, which is subject to change. Such information is based upon expectations of our management that were reasonable when made but may prove to be incorrect. All of such assumptions are inherently subject to uncertainties and contingencies beyond our control and upon assumptions with respect to future business decisions, which are subject to change. We do not undertake to update the forward-looking statements contained in this press release. For a description of the risks and uncertainties that may cause actual results to differ from the forward-looking statements contained in this press release, see our most recent Annual Report filed with the Securities and Exchange Commission (SEC) on Form 10-K, and our subsequent SEC filings. Copies of filings made with the SEC are available through the SEC's electronic data gathering analysis retrieval system (EDGAR) at http://www.sec.gov .


    For more information, please contact:

    Investors
     Nathan J. Anderson, VP/Finance
     Fushi Copperweld Inc.
     Phone: +1-931-433-0482
     Email: ir@fushicopperweld.com
     Web:   http://www.fushicopperweld.com

    Media
     Thomas Horton, Director of Global Marketing
     Fushi Copperweld Inc.
     Phone: +1-615-428-3333
     Email: media@fushicopperweld.com


                     FUSHI COPPERWELD, INC. AND SUBSIDIARIES

                           CONSOLIDATED BALANCE SHEETS
                    AS OF JUNE 30, 2010 AND DECEMBER 31, 2009

                                                June 30,        December 31,
                                                  2010              2009
                                               Unaudited
                       ASSETS
    CURRENT ASSETS:
      Cash                                     $73,787,555       $60,597,849
      Accounts receivable, trade, net
       of allowance of bad debt of
       $1,031,398 and $1,024,684 as
       of June 30, 2010 and December
       31, 2009, respectively                   64,058,653        67,284,600
      Inventories                               22,547,129        10,875,782
      Notes receivables                            184,658           122,972
      Other receivables and prepaid
       expenses                                    685,255         1,137,566
      Advances to suppliers                     25,177,421         8,582,346
      Deposit in derivative hedge                       --         1,000,000
       Total current assets                    186,440,671       149,601,115

    PLANT AND EQUIPMENT, net                   130,964,932       117,385,566

    OTHER ASSETS:
      Advances to suppliers, non-current           711,311         1,356,404
      Notes receivables, non-current               429,106           699,106
      Intangible assets, net of
       accumulated amortization                 14,275,013        11,924,056
      Deferred loan expense, net                        --         2,045,349
      Deferred tax assets                       15,248,484        11,722,469
       Total other assets                       30,663,914        27,747,384

        Total assets                          $348,069,517      $294,734,065

         LIABILITIES AND SHAREHOLDERS' EQUITY

    CURRENT LIABILITIES:
      Revolver line of credit                          $--        $4,033,783
      Accounts payable, trade                    7,313,267         4,002,773
      Notes payable, current                            --        10,000,000
      Other payables and accrued
       liabilities                               5,167,396         3,928,374
      Taxes payable                              3,907,036         2,599,055
      Cross currency hedge payable                      --           436,702
      Obligation under capital lease,
       current                                      76,557            71,503
       Total current liabilities                16,464,256        25,072,190

    LONG-TERM LIABILITIES:
      Notes payable, non-current                        --        25,000,000
      Obligation under capital lease,
       non-current                                 110,719           153,626
      Fair value of derivative instrument               --         7,532,527
       Total long-term liabilities                 110,719        32,686,153

        Total liabilities                       16,574,975        57,758,343

      COMMITMENTS AND CONTINGENCIES              5,075,000                --

    SHAREHOLDERS' EQUITY:
      Preferred stock, $0.001 par value,
       5,000,000 shares authorized, none
       issued or outstanding as of June
       30, 2010 and December 31, 2009                   --                --
      Common stock, $0.006 par value,
       100,000,000 shares authorized,
       June 30, 2010: 37,518,595 shares
       issued and outstanding December
       31, 2009: 29,772,780 shares
       issued and outstanding                      225,113           178,638
      Additional paid in capital               164,829,350       105,540,676
      Statutory reserves                        19,511,407        16,282,793
      Retained earnings                        114,865,703        97,283,748
      Accumulated other comprehensive
       income                                   26,987,969        17,689,867
       Total shareholders' equity              326,419,542       236,975,722

        Total liabilities and
         shareholders' equity                 $348,069,517      $294,734,065



                     FUSHI COPPERWELD, INC.  AND SUBSIDIARIES

     CONSOLIDATED STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME (LOSS)
            FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2010 AND 2009
                                   (UNAUDITED)

                         Three months ended June 30, Six months ended June 30,
                              2010         2009          2010         2009

    REVENUES              $69,005,366  $48,301,545  $128,555,208  $83,558,081

    COST OF GOODS SOLD     49,415,219   34,848,865    91,143,795   61,166,026

    GROSS PROFIT           19,590,147   13,452,680    37,411,413   22,392,055

    OPERATING EXPENSES
      Selling expenses      1,365,164    1,086,414     2,617,126    2,288,561
      General and
       administrative
       expenses             4,161,196    3,167,361     7,919,070    6,237,603
        Total operating
         expenses           5,526,360    4,253,775    10,536,196    8,526,164

    INCOME FROM
     OPERATIONS            14,063,787    9,198,905    26,875,217   13,865,891

    OTHER INCOME
     (EXPENSE)
      Interest income         197,151       83,004       389,941      166,621
      Interest expense         (5,973)  (1,478,203)     (514,455)  (2,949,071)
      Bargain purchase
       gain                 1,765,376           --     5,070,389           --
      Gain (Loss) on
       cross currency
       hedge                       --     (215,964)     (753,666)    (382,374)
      Gain (Loss) on
       derivative
       instrument
       settlement                  --           --    (6,650,000)          --
      Gain (Loss) on debt
       extinguishment              --           --    (2,395,778)          --
      Change in fair
       value of
       derivative
       liability -
       warrants                    --     (688,876)           --     (752,114)
      Change in fair
       value of
       derivative
       liability -
       conversion option           --   (4,583,809)           --   (5,122,846)
      Other income
       (expense), net         122,628     (140,133)      (18,444)    (246,482)
        Total other
         income (expense),
         net                2,079,182   (7,023,981)   (4,872,013)  (9,286,266)

    INCOME BEFORE INCOME
     TAXES                 16,142,969    2,174,924    22,003,204    4,579,625

    (PROVISION) BENEFIT
     FOR INCOME TAXES
      Deferred income tax
       (provision)
       benefit                 79,529      738,180     3,526,015    2,364,707
      Current income tax
       expense             (2,782,689)  (1,350,404)   (4,718,650)  (2,280,715)
        (Provision)
         benefit for
         income taxes,
         net               (2,703,160)    (612,224)   (1,192,635)      83,992

    NET INCOME             13,439,809    1,562,700    20,810,569    4,663,617

    OTHER COMPREHENSIVE
     INCOME (LOSS)
      Foreign currency
       translation
       adjustment           1,890,314      433,866     1,765,575       39,957
      Change in fair
       value of
       derivative
       instrument                  --     (751,227)      882,527   (3,513,356)
      Reclassification of
       change in cash
       flow hedge to
       earnings                    --           --     6,650,000           --

    COMPREHENSIVE INCOME  $15,330,123   $1,245,339   $30,108,671   $1,190,218

    EARNINGS PER SHARE:
      Basic                     $0.36        $0.06         $0.58        $0.17
      Diluted                   $0.35        $0.06         $0.57        $0.17

    WEIGHTED AVERAGE
     SHARES:
      Basic                37,343,714   27,827,838    36,016,078   27,696,388
      Diluted              37,991,800   28,323,611    36,633,668   28,054,226



                     FUSHI COPPERWELD, INC.  AND SUBSIDIARIES

                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                 FOR THE SIX MONTHS ENDED JUNE 30, 2010 AND 2009
                                   (UNAUDITED)

                                                   2010               2009
    CASH FLOWS FROM OPERATING
     ACTIVITIES:
       Net income                              $20,810,569         $4,663,617
     Adjustments to reconcile net income
      provided by operating activities:
       Bad debt expense                                 --             27,793
       Write-off of non-current advances
        to suppliers                               525,588
       Write-off of patent                          87,500
       Reserve for inventories                      56,000             23,272
       Inventories write-off                            --            179,654
       Depreciation                              5,822,284          4,612,405
       Loss on sale of property and
        equipment                                       --            117,430
       Deferred taxes                           (3,526,015)        (2,364,707)
       Reserve for notes receivables               250,000                 --
       Amortization of intangible assets           255,982            238,283
       Amortization of loan commission             249,571            544,900
       Amortization of stock
        compensation expense                       373,649            928,727
       Loss on cross currency hedge                753,666            382,374
       Loss on derivative instrument
        settlement                               6,650,000
       Loss on debt extinguishment               2,395,778                 --
       Bargain purchase gain                    (5,070,389)                --
       Change in fair value of
        derivative liability -
        conversion option                               --          5,122,846
       Change in fair value of
        derivative liability - warrants                 --            752,114
     Change in operating assets and
      liabilities:
       Accounts receivable                       6,477,996         (9,906,381)
       Inventories                             (10,215,093)       (10,699,400)
       Notes receivables                           (41,241)            63,638
       Other receivables and prepayments           460,654            102,867
       Advances to suppliers - current         (15,826,015)        12,233,042
       Accounts payable                            318,422         (2,091,085)
       Other payables and accrued
        liabilities                             (1,767,349)        (2,477,339)
       Taxes payable                               926,092          2,062,180
        Net cash provided by operating
         activities                              9,967,649          4,516,230

    CASH FLOWS FROM INVESTING
     ACTIVITIES:
       Payment for purchase of
        subsidiaries                            (6,375,000)                --
       Cash acquired from acquisition of
        subsidiaries                               901,463                 --
       Payments on cross currency hedge
        payable                                 (1,190,368)          (114,580)
       Payment for unwind of cross
        currency hedge                          (5,650,000)                --
       Proceeds from sale of property
        and equipment                                   --            424,444
       Purchases of property and
        equipment                               (1,736,395)        (3,135,693)
       Net of payments on prepayment of
        equipment                                       --         (2,473,841)
       Net of claimed VAT on purchases
        of property and equipment                   25,755                 --
        Net cash used in investing
         activities                            (14,024,545)        (5,299,670)

    CASH FLOWS FROM FINANCING
     ACTIVITIES:
       Net payments on revolver line of
        credit                                      (9,513)          (222,709)
       Payoff of revolver line of credit        (4,024,270)                --
       Payments on short-term bank loans                --        (17,553,600)
       Release of restricted cash                       --          1,000,000
       Payment on capital lease
        obligation                                 (37,853)                --
       Payment of high yield notes
        payable                                (35,600,000)                --
       Proceeds on issuance of common
        stock                                   56,361,500          1,920,000
        Net cash provided by (used in)
         financing activities                   16,689,864        (14,856,309)

       EFFECT OF EXCHANGE RATE ON CASH             556,738            (38,459)

    CHANGE IN CASH                              13,189,706        (15,678,208)

    CASH, beginning of period                   60,597,849         65,611,770

    CASH, end of period                        $73,787,555        $49,933,562

    Supplemental cash flow disclosures:
     Interest paid                              $1,401,542         $1,988,420
     Income tax paid                            $3,830,567         $1,933,546

[Press Release] Fushi Copperweld Reports First Quarter 2010 Financial Results

04 May 2010 11:00:00 GMT

DALIAN, China, May 4 /PRNewswire-Asia-FirstCall/ -- Fushi Copperweld, Inc. (Nasdaq:FSIN - News), the leading global manufacturer and innovator of copper-clad bimetallic wire used in a variety of telecommunication, utility, transportation and other electrical applications, today announced financial results for the first quarter ended March 31, 2010.


    First Quarter Highlights
    -- GAAP net income increased 137.7% to $7.4M, or $0.21 per diluted share
    -- Adjusted net income increased 148.3% to $10.2M, or $0.29 per diluted
       share
    -- Metric tons shipped at Dalian location increased 13.3% compared to
       first quarter 2009
    -- Gross profit increased 99.4% to $17.8 million, or 29.9% of revenues
    -- Cash position at quarter end remains strong at $78.5 million

Revenues for the first quarter of 2010 increased 68.9% to $59.5 million, up from $35.3 million in the prior year quarter. The $24.2 million increase in net sales was primarily driven by a 48.2% increase in average selling price and a 14.0% increase in volumes, as measured by metric tons of copper-clad products sold compared to the first quarter of 2009. Outside of organic growth, acquisitions contributed $4.3 million during the quarter. Volume at the Company's Dalian and Fayetteville cladding facilities increased 13.3% and 14.9%, respectively, compared to the first quarter 2009.

Gross profit in the first quarter increased 99.4% year-over-year to $17.8 million from $8.9 million a year ago. Consolidated gross margin increased to 29.9% from 25.4% in the prior year period, driven by stronger demand, higher capacity utilization, and improved product mix. Gross margin for the Company's Dalian facility increased to 35.3% from 32.9%, while gross margin for the Company's Fayetteville, TN facility improved substantially to 12.4%, up from 2.4% in the prior year quarter.

Operating expenses in the first quarter increased slightly to $5.0 million, compared to $4.3 million in the prior year's quarter. This increase was due to slightly higher G&A costs resulting from increased volumes. On a percentage basis, operating expenses decreased 371 basis points to 8.4% of revenues, down from 12.1% in the first quarter of 2009.

During the quarter, the Company successfully completed a secondary offering of 7.5 million shares of common stock, generating net proceeds of over $55 million. A portion of these proceeds was used to retire the Company's long-term debt, and the one-time loss in retiring this debt totaled $2.4 million ($1.6 million net of tax), or $0.07 per diluted share ($0.04 net of tax). Simultaneously, the Company terminated the cross currency interest rate swap, a derivative the Company used as a hedging instrument related to this long-term debt, and as a result recognized a realized loss of $6.7 million ($4.4 million net of tax), or $0.19 per diluted share ($0.12 net of tax) during the period. The termination of this swap enabled the Company to mitigate the risk of an appreciation in the renminbi. Lastly, during the first quarter the Company completed its previously announced acquisition of Dalian Jinchuan and recognized a one-time non-cash gain of $3.3 million, or $0.09 per diluted share as the fair market value of Dalian Jinchuan's assets exceeded the purchase price.

On a GAAP basis, net income for the 2010 first quarter was $7.4 million, or $0.21 per diluted share. This compares with net income of $3.1 million, or $0.11 per diluted share, in the first quarter of 2009. GAAP results included the one-time items discussed above, as well as: (1) $0.2 million in stock based compensation, and (2) $3.1 million income tax benefit on stock based compensation and on one-time items associated with losses from the debt extinguishment and swap settlement.

Excluding all non-cash gains and expenses and one-time, non-recurring losses, adjusted net income was $10.2 million or $0.29 per diluted share in the first quarter of 2010, compared to adjusted net income of $4.1 million or $0.15 per diluted share, in the prior year first quarter.

During the quarter, the Company generated $7.9 million of cash flow from operations, an $8.9 million increase over the same period in the previous year. The Company's cash position at the end of the first quarter was $78.5 million while the Company's long-term debt position was $0.1 million, compared to debt of $32.7 million at December 31, 2009. Accounts receivables at March 31, 2010 were $57.0 million, compared to $67.3 million on December 31, 2009, a decrease of 15.3%.

Mr. Joe Longever, co-Chief Executive Officer of Fushi Copperweld, commented, "We are pleased to have exceeded our guidance for the quarter, driven by higher volumes throughout our global locations, particularly in China, despite it being a traditionally slower quarter for our business. In addition, the combination of improving global demand and the cost reduction actions we have taken enabled our facility in Fayetteville to contribute to our success, both from a revenue as well as an earnings perspective during the quarter, as we expected. We look forward to this trend continuing as infrastructure investment becomes increasingly important to countries around the world and the global economic climate continues to improve."

Mr. Longever continued, "We are encouraged by prospects in our markets, as the ongoing build-out of telecommunication and electrical utility infrastructure across China and other opportunities globally continue to drive sales volume increases. During the quarter we achieved a number of milestones that combined to improve our profitability, get us closer to our customers, broaden our product line and enhance our financial flexibility going forward. All of these serve to reinforce our strategic goal of providing a highly engineered bimetallic wire as an alternative to solid copper at a compelling price and with a faster turnaround time. We see a number of opportunities for continued growth across all our markets and geographies and look forward to capitalizing on these in 2010 and beyond."

Outlook

Based on current business trends, the Company expects adjusted fully diluted earnings per share to be between $0.32 and $0.34 for the second quarter and to be between $1.23 and $1.28 for the 2010 full-year period, based on an estimated weighted average diluted share count of 35.3 million shares for both periods. This expectation is based on the assumption that the effective tax rate at the consolidated level will be 13% for the remainder of 2010. The Company expects profitability in subsequent quarters to improve due to higher seasonal revenue levels, continued increases in capacity utilization at the Fayetteville facility as a result of improving end market demand, and continued incentives from China's ongoing infrastructure buildout.

Conference Call

The Company will conduct a conference call to discuss the first quarter 2010 results today, Tuesday, May 4, 2010, at 8:30 am ET. To participate, the conference call may be directly accessed from the U.S. and Canada at 1-866-358-0069 and accessed internationally at 1-416-641-6151. A live webcast of the conference call will also be available at http://www.fushicopperwe... on the Investor Relations section. A replay of the call will be available at http://www.fushicopperwe... on the Investor Relations section or from May 4, 2010 to May 14, 2010 by telephone. Listeners may access the replay by dialing +1-416-695-5800; passcode: 2636737.

Reconciliation of Non-GAAP Financial Measures

Our net income was materially impacted by certain non-cash expenses and gains and one-time events. To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, we use EPS as adjusted for the impact of one-time non-cash loss related to the extinguishment of the long-term debt, realized one-time loss related to the extinguishment of the derivative hedging instrument and the one-time non-cash gain on acquisition. These Company-defined adjusted measures are being provided because management believes they are useful in analyzing the underlying operating performance of the business. These measures may be inconsistent with similar measures presented by other companies and should only be used in conjunction with our results reported according to accounting principles generally accepted in the United States. A reconciliation of earnings per share as reported and operating income as reported to adjusted non-GAAP earnings per share and adjusted non-GAAP operating income follows.




                                                          Q1 2010     Q1 2009

    GAAP Net Income                                      7,370,760   3,100,917

    Non-cash Expense:
    Change in fair value of derivative liability
     - conversion option                                        --     539,037
    Change in fair value of derivative liability
     - warrant                                                  --      63,238
    Loss (gain) on debt extinguishment                          --          --
    Stock-based compensation                               193,057     590,868
    Total Non-cash Expense                                 193,057   1,193,143

    Onetime Non-occurring Items:
    Bargain purchase gain (Jinchuan acquisition)        (3,305,013)         --
    Loss (gain) on debt extinguishment                   2,395,778          --
    Loss on derivative instrument settlement             6,650,000          --
    Total One-time Non-occurring Items                   5,740,765          --

    Provision for income tax                            (3,141,204)   (200,895)
    Adjusted Non-GAAP Net income                        10,163,378   4,093,165

    GAAP Earnings per Share:
      Basic                                                   0.21        0.11
      Diluted                                                 0.21        0.11

    Non-GAAP Earnings per Share:
      Basic                                                   0.29        0.15
      Diluted                                                 0.29        0.15

About Fushi Copperweld

Safe Harbor Statement


    For more information, please contact:

    Investors
     Nathan J. Anderson, VP/Finance
     Fushi Copperweld Inc.
     Phone  +1-931-433-0482
     Email: IR@fushicopperweld.com
     Web:   http://www.fushicopperweld.com

    Media
     Thomas Horton, Director of Global Marketing
     Fushi Copperweld Inc.
     Phone: +1-615-428-3333
     Email: thorton@fushicopperweld.com



                   FUSHI COPPERWELD, INC. AND SUBSIDIARIES

        CONSOLIDATED STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME
               FOR THE THREE MONTHS ENDED MARCH 31, 2010 AND 2009
                                   (UNAUDITED)

                                                   2010              2009

    REVENUES                                   $59,549,842       $35,256,536

    COST OF GOODS SOLD                          41,728,576        26,317,161

    GROSS PROFIT                                17,821,266         8,939,375

    OPERATING EXPENSES
      Selling expenses                           1,251,962         1,202,147
      General and administrative expenses        3,757,874         3,070,242
        Total operating expenses                 5,009,836         4,272,389

    INCOME FROM OPERATIONS                      12,811,430         4,666,986

    OTHER INCOME (EXPENSE)

      Interest income                              192,790            83,617
      Interest expense                            (508,482)       (1,470,868)
      Bargain purchase gain                      3,305,013                --
      Loss on cross currency hedge                (753,666)         (166,410)
      Loss on derivative instrument
       settlement                               (6,650,000)               --
      Loss on debt extinguishment               (2,395,778)               --
      Change in fair value of derivative
       liability - warrants                             --           (63,238)
      Change in fair value of derivative
       liability - conversion option                    --          (539,037)
      Other expense, net                          (141,072)         (106,349)
        Total other expense, net                (6,951,195)       (2,262,285)

    INCOME BEFORE INCOME TAXES                   5,860,235         2,404,701

    BENEFIT FOR INCOME TAXES                     1,510,525           696,216

    NET INCOME                                   7,370,760         3,100,917

    OTHER COMPREHENSIVE INCOME (LOSS)
      Foreign currency translation
       adjustment                                 (124,739)         (393,908)
      Change in fair value of derivative
       instrument                                  882,527        (2,762,129)
      Reclassification of change in cash
       flow hedge to earnings                    6,650,000                --

    COMPREHENSIVE INCOME (LOSS)                $14,778,548          $(55,120)

    EARNINGS PER SHARE:
      Basic                                          $0.21             $0.11
      Diluted                                        $0.21             $0.11

    WEIGHTED AVERAGE SHARES:
      Basic                                     34,673,692        27,563,478
      Diluted                                   35,309,847        27,695,464



                     FUSHI COPPERWELD, INC. AND SUBSIDIARIES

                           CONSOLIDATED BALANCE SHEETS
                   AS OF MARCH 31, 2010 AND DECEMBER 31, 2009

                                     ASSETS
                                                 March 31,        December 31,
                                                   2010              2009
                                                Unaudited
    CURRENT ASSETS:
      Cash                                     $78,536,226       $60,597,849
      Accounts receivable, trade, net of
       allowance of bad debt of $1,024,684
       and $1,024,684 as of March 31, 2010
       and December 31, 2009, respectively      56,966,163        67,284,600
      Inventories                               17,589,604        10,875,782
      Notes receivables                            196,222           122,972
      Other receivables and prepaid expenses     1,285,661         1,137,566
      Advances to suppliers                     20,438,121         8,582,346
      Deposit in derivative hedge                       --         1,000,000
       Total current assets                    175,011,997       149,601,115

      PLANT AND EQUIPMENT, net                 125,677,015       117,385,566

    OTHER ASSETS:
      Advances to suppliers, non-current           970,356         1,356,404
      Notes receivables, non-current               679,106           699,106
      Intangible assets, net of
       accumulated amortization                 13,495,302        11,924,056
      Deferred loan expense, net                        --         2,045,349
      Deferred tax assets                       15,168,955        11,722,469
       Total other assets                       30,313,719        27,747,384

        Total assets                          $331,002,731      $294,734,065

    LIABILITIES AND SHAREHOLDERS' EQUITY

    CURRENT LIABILITIES:
      Revolver line of credit                          $--        $4,033,783
      Accounts payable, trade                    6,224,215         4,002,773
      Notes payable, current                            --        10,000,000
      Other payables and accrued liabilities     3,328,446         3,928,374
      Taxes payable                              2,209,696         2,599,055
      Cross currency hedge payable                      --           436,702
      Obligation under capital lease, current       74,030            71,503
      Derivative instrument settlement
       payable, net                              5,650,000                --
       Total current liabilities                17,486,387        25,072,190

    LONG-TERM LIABILITIES:
      Notes payable, non-current                        --        25,000,000
      Obligation under capital lease,
       non-current                                 132,517           153,626
      Fair value of derivative instrument               --         7,532,527
       Total long-term liabilities                 132,517        32,686,153

        Total liabilities                       17,618,904        57,758,343

      COMMITMENTS AND CONTINGENCIES              5,075,000                --

    SHAREHOLDERS' EQUITY:
      Preferred stock, $0.001 par value,
       5,000,000 shares authorized, none
       issued or outstanding as of March
       31, 2010 and December 31, 2009                   --                --
      Common stock, $0.006 par value,
       100,000,000 shares authorized,
       March 31, 2010: 37,248,672 shares
       issued and outstanding December 31,
       2009: 29,772,780 shares
       issued and outstanding                      223,493           178,638
      Additional paid in capital               162,050,378       105,540,676
      Statutory reserves                        17,566,294        16,282,793
      Retained earnings                        103,371,007        97,283,748
      Accumulated other comprehensive income    25,097,655        17,689,867
       Total shareholders' equity              308,308,827       236,975,722

        Total liabilities and
         shareholders' equity                 $331,002,731      $294,734,065



                     FUSHI COPPERWELD, INC.  AND SUBSIDIARIES

                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                FOR THE THREE MONTHS ENDED MARCH 31, 2010 AND 2009
                                   (UNAUDITED)

                                                     2010               2009
    CASH FLOWS FROM OPERATING
     ACTIVITIES:
       Net income                                 $7,370,760        $3,100,917
     Adjustments to reconcile net income
      provided by (used in) operating activities:
       Recovery of bad debt                               --           (33,391)
       Write-off of non-current advances
        to suppliers                                 525,445                --
       Reserve for inventories                        61,000                --
       Depreciation                                2,762,749         2,097,208
       Deferred taxes                             (3,446,486)       (1,626,528)
       Amortization of intangible assets             122,487           119,076
       Amortization of loan commission               249,571           272,450
       Amortization of stock
        compensation expense                         193,057           590,868
       Loss on cross currency hedge                  753,666           166,410
       Loss on derivative instrument settlement    6,650,000                --
       Loss on debt extinguishment                 2,395,778                --
       Bargain purchase gain                      (3,305,013)               --
       Change in fair value of derivative
        liability - conversion option                     --           539,037
       Change in fair value of
        derivative liability - warrants                   --            63,238
     Change in operating assets and liabilities:
       Accounts receivable                        12,546,261         5,377,902
       Inventories                                (5,335,454)      (12,585,925)
       Notes receivables                             (53,235)           73,884
       Other receivables and prepayments            (162,514)         (168,913)
       Advances to suppliers - current           (11,388,801)        5,880,363
       Accounts payable                              126,673        (1,814,721)
       Other payables and accrued liabilities     (1,670,908)       (2,094,857)
       Taxes payable                                (506,088)         (975,566)
        Net cash provided by (used in)
         operating activities                      7,888,948        (1,018,548)

    CASH FLOWS FROM INVESTING
     ACTIVITIES:
       Payment for purchase of Jinchuan           (5,075,000)               --
       Cash acquired from acquisition of
        Jinchuan                                     859,264                --
       Payments on cross currency hedge
        payable                                   (1,190,368)         (114,580)
       Purchases of property and equipment        (1,262,493)         (715,104)
       Net of payments on prepayment of
        equipment                                         --        (4,715,293)
        Net cash used in investing activities     (6,668,597)       (5,544,977)

    CASH FLOWS FROM FINANCING
     ACTIVITIES:
       Net payments on revolver line of credit        (9,513)         (586,809)
       Payoff of revolver line of credit          (4,024,270)               --
       Payments on short-term bank loans                  --       (17,553,600)
       Payment on capital lease obligation           (18,582)               --
       Payment of high yield notes payable       (35,600,000)               --
       Proceeds on issuance of common stock       56,361,500         1,920,000
        Net cash provided by (used in)
         financing activities                     16,709,135       (16,220,409)

       EFFECT OF EXCHANGE RATE ON CASH                 8,891          (110,978)

    CHANGE IN CASH                                17,938,377       (22,894,912)

    CASH, beginning of period                     60,597,849        65,611,770

    CASH, end of period                          $78,536,226       $42,716,858

    Supplemental cash flow disclosures:
     Interest paid                                $1,395,799        $1,950,860
     Income tax paid                              $1,802,931        $1,002,17

[Press Release] Fushi Introduces Large-Scale Production of Copper-Clad Steel Wire In Asia

29 Apr 2010 12:00:00 GMT

DALIAN, China, April 29 /PRNewswire-Asia-FirstCall/ -- Fushi Copperweld Inc. (the "Company") (Nasdaq:FSIN - News), the leading global manufacturer and innovator of copper-clad bimetallic wire used in a variety of telecommunication, utility, transportation and other electrical applications, today announced that it has completed the expansion of its Dalian facility to produce an additional 8,200 metric tons of production capacity per year for its patented Copperweld(R) copper-clad steel (CCS) wire. The expanded production marks the completion of the final stage of a three-phase capacity relocation project from its Fayetteville, TN facility, resulting in a total of 20,200 additional metric tons of annualized copper-clad aluminum (CCA) and CCS capacity coming online to its Dalian facility.

"The completion of this major expansion of our production capabilities marks an important step forward in optimizing our Dalian plant to meet our customers' demands for quality and response time," commented Joe Longever, co-CEO of Fushi Copperweld. "The new Copperweld(R) production lines, which utilize our industry-leading proprietary cladding technologies, signify the first large-scale production of copper-clad steel not only within China, but in all of Asia. The broadening of our product offering at our Dalian location to include CCS is a milestone for Fushi Copperweld because it will better enable us to serve additional worldwide growth sectors, such as transportation, electric utility, and telecom industries. We can now offer our customers in the Asia/Pacific region a locally manufactured CCS alternative to solid copper wire that is a higher quality and more cost effective product."

The additional CCS production capacity increases Fushi Copperweld's total annual wire and cable production at its Dalian factory to 48,200 metric tons, nearly double the plant's previous capacity. Although the Company expects to generate measurable sales in the fiscal year 2010 from its Dalian-produced CCS product, it anticipates to begin experiencing the full benefits of the capacity addition in fiscal year 2011 as it utilizes 2010 to ramp up production quantities to facilitate the qualification process of its products with customers and further adoption of CCS within Asian markets.

Longever concluded, "We are very excited about broadening the market for CCS in Asia, and we are confident that the growth of Asia's utility, transportation and telecom infrastructure will fuel the emerging adoption of Copperweld(R) for the transmission, distribution and earthing of electrical current by many major industry concerns. Our confidence stems from the fact that our CCS product has become a standard conductor for many applications in the West that will translate into Asia. The greatest impediment to CCS adoption in China has been the absence of a domestic producer. Now, for China and all of Asia, Dalian will be a convenient source of this technologically sophisticated material that serves as a stronger, more durable, and less costly replacement for expensive solid copper wire."

For more information, please visit the Fushi Copperweld web site, at http://www.fushicopperwe... .

About Fushi Copperweld

Safe Harbor Statement


    For more information, please contact:

    Investors
    Nathan J. Anderson, VP/Finance - Fushi Copperweld Inc.
    Phone: +1-931-433-0482
    Email: IR@fushicopperweld.com
    Web:   www.fushicopperweld.com

    Media
    Thomas Horton, Director of Global Marketing - Fushi Copperweld Inc.
    Phone: +1-615-428-3333
    Email: thorton@fushicopperweld.com

[Press Release] Fushi Copperweld's Brighter Idea

25 Mar 2010 10:00:00 GMT

FAYETTEVILLE, Tenn., March 25 /PRNewswire-Asia/ -- The Center for Energy Efficiency (CEE) at Middle Tennessee State University has granted its 2010 award for "Energy Project of the Year" to Fushi Copperweld (Nasdaq:FSIN - News)'s wire manufacturing plant in Lincoln County, Tennessee.

Sponsored by the Middle Tennessee Chapter of the Association of Energy Engineers, the prestigious award recognizes businesses, individuals, or organizations that demonstrate innovation in their implementation of energy efficiency projects. Fushi Copperweld's American operation was chosen to receive the award for having completed a total retrofit of the lighting grid at its 298,000 square-foot facility last August.

Lynn Patterson, Fushi Copperweld's facilities engineer, says that the need for a better lighting system in the plant was vital. "Our facility in Fayetteville opened in 1975, and still used the original lighting throughout." High-pressure sodium (HPS) lamps, which were the norm at that time, were a drain on the factory's maintenance budget, according to Patterson. "The HPS lamps burn at nearly 1800 degrees Fahrenheit, and require both a warm-up and a cool-down time of about 20 minutes before they can be removed for replacement or repair. If there is a power outage or the lighting system is de-energized for maintenance, we experience delays, which make our employees and maintenance crews less productive," he explains.

Replacing the HPS lamps with efficient fluorescent tubes, which operate at just 110 degrees Fahrenheit, not only means instant light throughout the plant, it lowers the ambient temperature, saves on cooling costs, and reduces the risk of danger to workers. "Those intensely hot HPS lamps, frankly, could have potentially started a fire if a lamp's outer glass were to shatter," says Patterson.

The Fushi Copperweld factory is in production 24 hours a day, seven days a week, but not every area of the plant is in constant use. The installation of motion-activated sensors throughout the manufacturing space and the offices enables maximum savings during downtime in zones where work is not actively being done. The lights cycle off in areas where no movement is detected, but instantly come on the moment an employee enters that part of the facility, or when a machine is turned on.

The fluorescent tubes are also brighter and give off a truer, whiter light than the yellow-hued luminescence of HPS lamps. There has been an increase of as much as 70% in the amount of available light in some areas of the factory. As well, the fluorescent tubes last about twice as long and maintain 93% of their initial lumens over time, compared to only 63% for HPS lamps. Studies have shown that better light also makes for happier employees, fewer errors, and increased productivity.

"The retrofit made operational sense," says Mike Beddoe, the plant's general manager. "The positive impact on the environment speaks for itself, but moreover, we can count on it yielding substantial financial rewards almost immediately." In just one year, the facility will reduce its annual electricity usage for lighting by nearly 66%- 2.1 million kWh- a reduction which, combined with tax and maintenance savings, will yield a total savings of approximately $300,000. Fushi Copperweld projects the new lighting scheme will have paid for itself in just eleven months.

Integrated Electrical Design (IED) of Nashville performed the retrofit with equipment by General Electric. Mark Dowell, principal of IED, says, "Fushi Copperweld was an ideal candidate for a total conversion to fluorescent lighting. We replaced over 1,300 fixtures with modern, energy-efficient lamp systems that will serve the company well for years to come, and provide better light at a tremendous energy savings."

The retrofit is just one component in a campaign at Fushi Copperweld to promote itself as an environmentally friendly leader in the electrical conductor industry. The company already recycles raw materials, and operates a very low-pollution factory. "We have robust process controls in place, and there is a great awareness amongst our employees that we aim to minimize our ecological impact," says Beddoe. "We take our responsibility to the earth and our local community very seriously, and do our best to be good stewards of the environment. Using less energy is another step in the right direction for us," he adds.

The CEE was established in 1999 to advance sound energy management practices. The award will be bestowed upon the company at a luncheon in Nashville at the Genesco Center on March 31 at 11:30 AM. Employees from Fushi Copperweld, IED and General Electric will be on hand for the celebration. Members of the press are invited.

About Fushi Copperweld

[Press Release] Fushi Copperweld Announces Participation at ROTH Conference

15 Mar 2010 10:00:00 GMT

DALIAN, China, March 14 /PRNewswire-Asia-FirstCall/ -- Fushi Copperweld, Inc., (the "Company" or "Fushi") (Nasdaq:FSIN -News), the leading global manufacturer and innovator of copper-clad bimetallic wire used in a variety of telecommunication, utility, transportation and other electrical applications, today announced that management will present at the upcoming ROTH Capital OC Growth Stock Conference on Monday, March 15, 2010 at 2:30pm Pacific Time, 5:30pm Eastern Time. The Conference is being held at the Ritz-Carlton in Dana Point, California.

The presentation will include a discussion of the Company's business operations, financial results, strategic initiatives and prospects for the future. A live audio webcast of the presentation will be available to all interested parties on the Investor Relations section of the Company's website at http://www.fushicopperwe....

About Fushi Copperweld, Inc.

Fushi Copperweld, Inc., through its wholly owned subsidiaries, Fushi International (Dalian) Bimetallic Cable Co, Ltd., and Copperweld Bimetallics, LLC, is the leading manufacturer and innovator of copper-clad bimetallic engineered conductor products used in the electrical, telecommunications, transportation, utilities and industrial industries. With extensive design and production capabilities and a long-standing dedication to customer service, Fushi Copperweld, Inc. is the preferred choice bimetallic products worldwide. For more information, visit: www.fushicopperweld.com.

Safe Harbor Statement

[Press Release] Fushi Copperweld Reports Fourth Quarter and Full Year 2009 Financial Results

10 Mar 2010 11:30:00 GMT

DALIAN, China, March 10 /PRNewswire-Asia-FirstCall/ -- Fushi Copperweld, Inc. (Nasdaq:FSIN - News), the leading global manufacturer and innovator of copper-clad bimetallic wire used in a variety of telecommunication, utility, transportation and other electrical applications, today announced financial results for the fourth quarter and full year ended December 31, 2009.


    Fourth Quarter Highlights:
    -- Q4 Net income increased 121% to $10.1 million or $0.34 per diluted
       share
    -- Metric tons shipped at Dalian increased 27.1% compared to fourth
       quarter 2008
    -- Q4 Gross profit increased 94% to $17.2 million or 33% of revenue
    -- Q4 Operating expenses decreased 13.4% or $0.79 million to $4.8 million
       or 9% of revenue
    -- Q4 Cash flow from operations totaled $11.5 million
    -- Cash position at year end remains strong at $60.6 million
    -- Execution of strategic initiatives provides better visibility into 2010

Q4 2009

Revenues for the fourth quarter of 2009 increased 25.9% to $51.7 million, up from $41.1 million in the prior year's quarter, primarily due to a recovery in copper prices and continued strong demand across the board for our CCA products in China, particularly RF cable to support the ongoing 3G network buildout and expansion into the utility market. Volume at the Company's Dalian facility increased 27.1% as compared to the fourth quarter 2008. On a consolidated basis, the Company experienced an increase of 18.0% in metric tons sold.

Gross profit in the fourth quarter increased 94.0% year-over-year to $17.2 million from $8.9 million. Consolidated gross margin increased to 33.3% from 21.6% in the prior year period, driven by cost reductions in manufacturing at the Company's Fayetteville facility, product mix and the absence of extreme volatility in raw material prices experienced in fourth quarter 2008. Gross margin for the Company's Dalian facility increased to approximately 37.7% from 30.6%, while gross margin for the Company's Fayetteville, TN facility improved substantially to 8.7%, an increase of 15.8% compared to the prior year.

Operating expenses in the fourth quarter decreased 13.4% to $4.8 million, compared to $5.5 million in the prior year's quarter. This decrease was due to effective cost reductions in general and administrative expenses and stronger operating leverage. On a percentage basis, operating expenses decreased approximately 9.3% in the current year period from 13.5% in the fourth quarter 2008.

Net income for the 2009 fourth quarter was $10.1 million, or $0.34 per diluted share. This compares with net income of $4.6 million, or $0.16 per diluted share, in the fourth quarter of 2008.

Full Year 2009

For the full year 2009, revenues were $182.9 million, compared to $221.4 million in 2008. Gross profit was$54.8 million, compared to $57.3 million in 2008. Operating profit remained relatively flat at $36.9 million, compared to $37.1 million in 2008, but operating margin in 2009 improved to 20.2% of revenues, compared to 16.7% of revenues in 2008. Net income for the full year was $24.0 million, or $0.84 per diluted share, compared to $28.5 million, or $1.00 per diluted share in 2008. Excluding the non-cash items related to loss resulting from change fair value of derivative liability, one-time gain on redemption of convertible notes, and share-based compensation expense, adjusted non-GAAP net income was $28.9 million, or $1.01 per diluted share in 2009.

Cash flow from operations was $27.1 million for the 2009 full-year period, compared to $0.6 million in 2008. Cash as of December 31, 2009 was $60.6 million, or $2.02 per share. Accounts Receivable increased 35% to$67.3 million driven by extended credit terms to certain customers as well as longer collection cycles as a result of challenging economic conditions. Inventories increased 56% to $10.9 million primarily as a result of higher raw materials prices. Advances to suppliers at the end of 2009 dropped from $20.3 million to $8.6 million.

The Company's debt position was $39.0 million at December 31, 2009 compared to $63.3 million at December 31, 2008. A portion of the proceeds from the Company's follow-on offering completed in February 2010 has been used to retire this remaining debt. The Company ended 2009 with a book value per share of $7.96.

Mr. Li Fu, Chairman and Chief Executive Officer of Fushi Copperweld, commented, "I am very pleased with our performance, both for the fourth quarter and for what was a very challenging year. While much of the world suffered through a global economic slowdown in 2009, growth in China was very strong and we benefitted accordingly. As the rest of the world resumes GDP growth, we continued to deliver highly engineered bi-metallic wire used in a variety of ways throughout the world. In addition, we made important strides in strengthening our business in the fourth quarter by driving new business, entering new markets, lowering our operating expenses, strengthening our balance sheet, and generating strong cash flow from operations. Importantly, with the close of our follow-on offering in February of this year, we have retired most of our debt and are free of the non-financial covenants that limited our growth. Looking ahead, we are optimistic that demand for our value-added products in existing markets and efforts in generating market awareness in new markets will further fuel our growth."

Outlook

Based on current business trends and the visibility the Company has from fourth quarter performance, the Company expects adjusted first quarter fully diluted earnings per share between $0.22 and $0.24 and adjusted full year fully diluted earnings per share between $1.20 and $1.25, both based on an estimated weighted average diluted share count of 33.4 and 35.2 million shares, respectively. This expectation is based on the assumption that the effective tax rate at the consolidated level will be 8%. The 2010 first quarter is seasonally the Company's weakest quarter due to the timing of the Chinese New Year, during which the Company's operating facilities are closed for two weeks. The Company expects profitability in subsequent quarters to improve over the first quarter due to higher revenues with the absence of the Chinese New Year, increased profitability at the Fayetteville facility as a result of cost saving initiatives, and continued incentives from China'sstimulus package.

Conference Call

The Company will conduct a conference call to discuss the fourth quarter and full year 2009 results today,Wednesday, March 10, 2010, at 8:30 am ET. Listeners may access the call by dialing 1-866-223-7781. A live webcast of the conference call will also be available at http://www.fushicopperwe... on the Investor Relations section. A replay of the call will be available at http:///www.fushicopperweld.com on the Investor Relations section or from March 10, 2010 to March 20, 2010 by telephone. Listeners may access the replay by dialing 1-800-408-3053; passcode: 2636737.

Accounting for derivative liability - conversion option and warrants

Effective January 1, 2009, the Company adopted the provisions of EITF Issue 07-5 "Determining Whether an Instrument (or Embedded Feature) Is Indexed to an Entity's Own Stock", which is effective for financial statements for fiscal years beginning after December 15, 2008 and which replaced the previous guidance on this topic in EITF Issue 01-6. As a result, from January 1, 2009, the Company was required to separately account for the conversion option embedded in the Company's $5,000,000 convertible notes as a derivative instrument liability, carried at fair value and marked-to-market each period, with changes in the fair value each period charged or credited to income. In addition, during the first quarter of 2009, the Company completed a private placement of its common stock and warrants. The warrants are also recorded as a derivative instrument liability, carried at fair value. During the fiscal year of 2009, the Company repurchased all of the convertible notes and amended the warrant agreements, thus in the fourth quarter of 2009, there were no non-cash charges to income for changes in the fair value of these derivative liabilities.

For the full year ended December 31, 2009, the Company recognized a loss in the change in fair value of derivative liability - conversion option in the amount of $7,181,198 and a loss in the change in fair value of derivative liability - warrants in the amount of $752,114. There was no impact on periodic cash flows.

Reconciliation of Non-GAAP Financial Measures

Our net income was materially impacted by certain non-cash expenses including stock-based compensation and change in the fair value of derivative liabilities related to the conversion in our outstanding convertible bonds. In the third quarter 2009, we also recognized a one-time non-cash gain on redemption of convertible notes. To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, we use EPS as adjusted for the impact of non-cash expenses related to stock-based compensation and the change in the fair value of derivative liabilities related to the conversion option in our outstanding convertible notes. These Company-defined adjusted measures are being provided because management believes they are useful in analyzing the underlying operating performance of the business. These measures may be inconsistent with similar measures presented by other companies and should only be used in conjunction with our results reported according to accounting principles generally accepted in the United States. A reconciliation of earnings per share as reported and operating income as reported to adjusted non-GAAP earnings per share and adjusted non-GAAP operating income follows:



                                                  FY 2009           FY 2008

    GAAP Net Income                             23,994,386        28,474,509
    Non-cash expense:
    Change in fair value of derivative
     liability - conversion option               7,181,198                --
    Change in fair value of derivative
     liability - warrant                           752,114                --
    Gain on CB extinguishment                   (3,842,935)               --
    Stock-based compensation                     1,280,008         1,868,809
    Total non-cash expense                       5,370,385         1,868,809
    Provision for income tax                      (435,203)         (635,395)
    Adjusted to Non-GAAP Net income             28,929,568        29,707,923

    GAAP Earnings per share:
      Basic                                           0.85              1.04
      Diluted                                         0.84              1.00

    Non-GAAP Earnings per share:
      Basic                                           1.02              1.09
      Diluted                                         1.01              1.05

About Fushi Copperweld, Inc.

Fushi Copperweld, Inc. through its wholly owned subsidiaries, Fushi International (Dalian) Bimetallic Cable Co, Ltd., and Copperweld Bimetallics, LLC, is the leading manufacturer and innovator of copper-cladded bi-metallic engineered conductor products used in the electrical, telecommunications, transportation, utilities and industrial industries. With extensive design and production capabilities and a long-standing dedication to customer service, Fushi Copperweld, Inc. is the preferred choice bi-metallic products world-wide. For more information, visit: http://www.fushicopperwe... .

Safe Harbor Statement


    For more information, please contact:

     Nathan Anderson
     Vice President of Finance
     Fushi Copperweld, Inc.
     Email: ir@fushicopperweld.com
     Tel:   +1-931-433-0482




    FUSHI COPPERWELD, INC.  AND SUBSIDIARIES

    CONSOLIDATED STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME
    FOR THE THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2009 AND 2008

                         (UNAUDITED)  (UNAUDITED)
                           Three months ended         Twelve months ended
                              December 31,                December 31,
                            2009         2008          2009          2008

    REVENUES             $51,697,865  $41,065,619  $182,932,292  $221,434,702

    COST OF GOODS SOLD    34,449,453   32,185,476   128,122,357   164,181,739

    GROSS PROFIT          17,248,412    8,880,143    54,809,935    57,252,963

    OPERATING EXPENSES
    Selling expenses       1,503,268    1,333,411     4,869,987     4,607,459
    General and
     administrative
     expenses              3,303,805    4,219,320    13,051,442    15,555,267
      Total operating
       expenses            4,807,073    5,552,731    17,921,429    20,162,726

    INCOME FROM
     OPERATIONS           12,441,339    3,327,412    36,888,506    37,090,237

    OTHER INCOME
     (EXPENSE)

    Interest income          126,552      132,639       369,267       662,290
    Interest expense      (1,121,342)  (1,447,592)   (5,271,427)   (8,833,866)
    (Loss) gain on
     derivative
     instrument                6,823     (159,646)   (1,574,989)      163,062
    Gain on convertible
     note extinguishment          --           --     3,842,935            --
    Change in fair value
     of derivative
     liability  -
     warrants                     --           --      (752,114)           --
    Change in fair value
     of derivative
     liability  -
     conversion option            --           --    (7,181,198)           --
    Other income
     (expense)              (121,509)      67,351      (314,570)     (112,303)
      Total other
       expense, net       (1,109,476)  (1,407,248)  (10,882,096)   (8,120,817)

    INCOME BEFORE INCOME
     TAXES                11,331,863    1,920,164    26,006,410    28,969,420

    Deferred income tax
     benefit                (665,357)  (4,455,744)   (3,918,442)   (4,952,027)
    Current income tax
     expense               1,861,385    1,799,694     5,930,466     5,446,938
    PROVISION FOR INCOME
     TAXES                 1,196,028   (2,656,050)    2,012,024       494,911

    NET INCOME            10,135,835    4,576,214    23,994,386    28,474,509

    OTHER COMPREHENSIVE
     INCOME
    Unrealized gain on
     marketable
     securities                   --           --            --        22,301
    Foreign currency
     translation
     adjustment               20,721   (1,526,564)      132,816    12,535,951
    Change in fair value
     of derivative
     instrument              120,137      928,917    (3,155,451)    4,138,320

    COMPREHENSIVE INCOME $10,276,693   $3,978,567   $20,971,751   $45,171,081

    EARNINGS PER SHARE:
    Basic                      $0.35        $0.17         $0.85         $1.04
    Diluted                    $0.34        $0.16         $0.84         $1.00

    WEIGHTED AVERAGE
     SHARES:
    Basic                 29,528,635   27,399,034    28,265,748    27,298,891
    Diluted               29,957,947   28,222,466    28,643,002    28,271,863




    FUSHI COPPERWELD, INC. AND SUBSIDIARIES
    CONSOLIDATED BALANCE SHEETS
    AS OF DECEMBER 31, 2009 AND 2008

                       ASSETS
                                                   2009              2008
    CURRENT ASSETS:
    Cash                                       $60,597,849       $65,611,770
    Restricted cash                                     --         1,000,000
    Accounts receivable, trade, net of
     allowance of bad debt
    $1,024,684 and $318,529 as of
     December 31, 2009 and 2008,
     respectively                               67,284,600        49,782,548
    Inventories                                 10,875,782         6,977,852
    Notes receivables                              122,972           171,300
    Other receivables and prepaid
     expenses                                    1,137,566           869,973
    Advances to suppliers                        8,582,346        20,261,585
    Deposit in derivative hedge                  1,000,000         1,000,000
    Prepaid taxes                                       --           670,805
    Total current assets                       149,601,115       146,345,833

    PLANT AND EQUIPMENT, net                   117,385,566       119,761,027

    OTHER ASSETS:
    Advances to suppliers, noncurrent            1,356,404         4,022,879
    Notes receivables, noncurrent                  699,106           799,106
    Intangible asset, net                       11,924,056        12,406,920
    Deferred loan expense, net                   2,045,349         3,317,725
    Deferred tax assets                         11,722,469         7,804,027
    Total other assets                          27,747,384        28,350,657

    Total assets                              $294,734,065      $294,457,517

     LIABILITIES AND SHAREHOLDERS' EQUITY

    CURRENT LIABILITIES:
    Accounts payable, trade                     $4,002,773        $7,204,156
    Notes payable, current                      10,000,000         5,000,000
    Revolver line                                4,033,783         4,712,075
    Short term bank loans                               --        17,588,400
    Other payables and accrued
     liabilities                                 3,854,355         4,751,460
    Customer deposits                               74,019           542,540
    Taxes payable                                2,599,055                --
    Cross currency hedge payable                   436,702           104,324
    Obligation under capital lease,
     current                                        71,503                --
    Total current liabilities                   25,072,190        39,902,955

    LONG TERM LIABILITIES:
    Notes payable, noncurrent                   25,000,000        40,000,000
    Obligation under capital lease, non
     current                                       153,626                --
    Fair value of derivative instrument          7,532,527         4,377,076

    Total liabilities                           57,758,343        84,280,031

    COMMITMENTS AND CONTINGENCIES                                  7,197,794

    SHAREHOLDERS' EQUITY:
    Common stock,$0.006 par value,
     100,000,000 shares authorized,
     December 31, 2009: 29,772,780 shares
      issued and outstanding
    December 31, 2008: 27,499,034 shares
     issued and 27,399,034 outstanding             178,638           164,395
    Restricted common stock in escrow                   --               600
    Additional paid in capital                 105,540,676        91,172,890
    Statutory reserves                          16,282,793        12,316,147
    Retained earnings                           97,283,748        78,613,158
    Accumulated other comprehensive
     income                                     17,689,867        20,712,502
    Total shareholders' equity                 236,975,722       202,979,692

    Total liabilities and shareholders'
     equity                                   $294,734,065      $294,457,517




    FUSHI COPPERWELD, INC. AND SUBSIDIARIES
    CONSOLIDATED STATEMENTS OF CASH FLOWS
    FOR THE YEARS ENDED DECEMBER 31, 2009 AND 2008

                                                   2009              2008
    CASH FLOWS FROM OPERATING ACTIVITIES:
    Net income                                 $23,994,386       $28,474,509
    Adjustments to reconcile net income
     to cash provided by operating activities:
    Deferred taxes                              (3,918,442)       (4,952,027)
    Bad debt expenses                              705,825           178,467
    Reserve for obsolete inventory                      --            96,893
    Inventory value write off                       79,563                --
    Depreciation                                 9,762,096         6,457,629
    Loss on sale of property and
     equipment                                     117,430            28,887
    Amortization of intangible assets              476,696           417,681
    Amortization of loan commission              1,272,375         2,798,205
    Interest penalty                                    --           710,544
    Amortization of stock option
     compensation expense                        1,280,008         1,868,809
    Loss (gain) on derivative instrument         1,574,987          (163,062)
    Gain on convertible note
     extinguishment                             (3,842,934)               --
    Change in derivative liability -
     conversion option                           7,181,198                --
    Change in derivative liability -
     warrants                                      752,114                --
    Investment loss on marketable
     securities                                         --            16,158
    Change in operating assets and
     liabilities:
    Accounts receivable                        (18,247,931)      (24,794,459)
    Inventories                                 (3,856,156)        5,113,772
    Other receivables and prepayments             (220,547)          189,808
    Notes receivables                              148,273          (114,896)
    Advances to suppliers - current             11,661,597       (17,408,968)
    Accounts payable                            (3,111,464)        4,076,919
    Other payables and accrued
     liabilities                                (1,474,776)       (1,083,919)
    Customer deposits                             (474,407)          509,481
    Taxes payable                                3,270,610        (1,788,643)
    Net cash provided by operating
     activities                                 27,130,501           631,788

    CASH FLOWS FROM INVESTING ACTIVITIES:
    Proceeds from sales (purchases) of
     marketable securities                              --         2,983,842
    Payments on derivative instrument           (1,242,612)               --
    Proceeds from derivative instrument                 --           973,556
    Deposit in derivative hedge                         --        (1,000,000)
    Proceeds from sale of property and
     equipment                                     424,444                --
    Purchase of land use right                          --        (1,698,433)
    Advances for purchase of land use
     right                                              --                --
    Purchase of property and equipment          (5,058,250)      (15,226,592)
    Advances for purchase of property and
     equipment                                          --        (3,148,802)
    Net cash used in investing activities       (5,876,418)      (17,116,429)

    CASH FLOWS FROM FINANCING ACTIVITIES:
    Proceeds from from shareholder              12,186,677                --
    Repayments on shareholders                 (12,186,677)               --
    Release (deposit) of restricted cash         1,000,000                --
    Net (payments) borrowings on revolver
     line                                         (678,292)       (2,419,008)
    Proceeds from short-term bank loans                 --        16,908,000
    Payments on short-term bank loans          (17,553,600)      (17,268,032)
    Payments on capital lease obligation           (41,468)               --
    Payment on high yield notes payable         (5,000,000)               --
    Repurchase of convertible notes
     payables                                   (6,060,000)               --
    Net proceeds from stock issuance in
     private placement                                  --                --
    Net proceeds from long term notes                   --                --
    Proceeds on issuance of common stock
     and warrants                                2,086,626           139,124
    Net cash (used in) provided by
     financing activities                      (26,246,734)       (2,639,916)

    EFFECT OF EXCHANGE RATE ON CASH                (21,270)        4,821,569

    (DECREASE) INCREASE IN CASH                 (5,013,921)      (14,302,988)

    CASH, beginning of period                   65,611,770        79,914,758

    CASH, end of period                        $60,597,849       $65,611,770

    SUPPLEMENTAL DISCLOSURE OF CASH FLOW
     INFORMATION:

    Cash paid for interest expense              $3,725,954        $6,327,084

    Cash paid for income taxes                  $5,131,397        $4,509,274

[Press Release] Fushi Copperweld Announces Resignation of Chief Financial Officer

03 Mar 2010 15:02:00 GMT

DALIAN, China, March 3 /PRNewswire-Asia-FirstCall/ -- Fushi Copperweld, Inc. (the "Company") (Nasdaq:FSIN - News), the leading global manufacturer and innovator of copper-clad bimetallic wire used in the electrical, telecommunications, transportation, utilities and industrial industries today announced that Ms.Beihong "Linda" Zhang has resigned as the Company's Chief Financial Officer effective immediately for medical related health reasons.

The Board of Directors has appointed Wenbing "Christopher" Wang, President, to the position of interim Chief Financial Officer. Mr. Wang had previously served as the Company's Chief Financial Officer from 2005 to 2009. The Company has initiated a search for a permanent Chief Financial Officer.

Joseph J. Longever, Co-Chief Executive Officer stated, "On behalf of everyone at Fushi Copperweld, I would like to thank Linda for her contributions to the Company. We wish her all the best for a quick recovery. Our recently expanded finance department is in excellent hands with Chris, and I have confidence in his and the rest of the team's capability to ensure a seamless transition."

About Fushi Copperweld, Inc.

Fushi Copperweld, Inc. through its wholly owned subsidiaries, Fushi International (Dalian) Bimetallic Cable Co, Ltd., and Copperweld Bimetallics, LLC, is the leading manufacturer and innovator of copper-clad bimetallic engineered conductor products used in the electrical, telecommunications, transportation, utilities and industrial industries. With extensive design and production capabilities and a long-standing dedication to customer service, Fushi Copperweld, Inc. is the preferred choice bimetallic products world-wide. For more information, visit: http://www.fushicopperwe... .

Safe Harbor Statement


   For more information, please contact:

     Nathan Anderson
     Vice President of Investor Relations
     Fushi Copperweld, Inc.
     Tel:   +1-931-433-0482
     Email: IR@fushicopperweld.com

[Press Release] Fushi Copperweld to Report 2009 Fourth Quarter and Fiscal Year Financials

26 Feb 2010 12:00:00 GMT

DALIAN, China, Feb. 26 /PRNewswire-Asia-FirstCall/ -- Fushi Copperweld, Inc. (the "Company") (Nasdaq:FSIN - News), the leading global manufacturer and innovator of copper-clad bimetallic wire used in a variety of telecommunication, utility, transportation and other electrical applications, today announced that management will host a conference call to report the Company's 2009 fourth quarter and fiscal year financial results on Wednesday, March 10, 2010 at 8:30am ET.

To access the conference call, please dial one of the access numbers listed below:



 US +1.866.223.7781

International +1.416.340.8018

To listen to a live audio webcast of the event, please go to Fushi Copperweld's website at http://www.fushicopperwe... . It is recommended that participants who access the webcast go to the website 15 minutes early to download and install any necessary audio software.

An audio webcast of the call will also be available for replay at http://www.sec.gov .


 For more information, please contact:

 Nathan Anderson
 Vice President of Investor Relations
 Fushi Copperweld, Inc.
 Phone: +1-931-433-0482
 Email: IR@fushicopperweld.com

[Press Release] Fushi Copperweld Announces Closing of $59.8 Million Follow-on Offering

01 Feb 2010 21:30:00 GMT

DALIAN, China, Feb. 1 /PRNewswire-Asia-FirstCall/ -- Fushi Copperweld, Inc. (the "Company") (Nasdaq: FSIN), a leading global manufacturer and innovator of copper-clad bimetallic wire used in a variety of telecommunication, utility, transportation and other electrical applications, today announced it has closed its previously announced public offering of 6,500,000 shares of its common stock at a price of $8.00 per share. On January 28, 2010, Jefferies & Company, Inc., acting as the sole book-running manager of the offering, exercised in full its over-allotment option to purchase an additional 975,000 shares of common stock. The exercise of the option increased the size of the offering to an aggregate of 7,475,000 shares of common stock.

The Company received proceeds, net of offering expenses and underwriting discounts and commissions, of approximately $55.4 million. The Company offered the shares sold in the offering pursuant to its existing shelf registration statement (File No, 333 - 160449), which was declared effective by the Securities and Exchange Commission (the "SEC") on January 15, 2010.

As previously announced, the Company intends to use approximately $39.7 million of the net proceeds from the offering to repay indebtedness. It will use the remaining proceeds for working capital and other general corporate purposes, which may include, among other things, the expansion of its existing capacity and potential acquisitions.

Jefferies & Company, Inc. acted as sole book-running manager for the offering. Roth Capital Partners, LLC served as co-lead manager, and Rodman & Renshaw, LLC served as co-manager. Copies of the final prospectus supplement and related prospectus may be obtained from Jefferies & Company, Inc., Attention: Syndicate Prospectus Department, 520 Madison Avenue, New York, NY 10022 or at (888) 449-2342.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of, these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or jurisdiction.

About Fushi Copperweld, Inc.

Fushi Copperweld, Inc. through its wholly owned subsidiaries, Fushi International (Dalian) Bimetallic Cable Co., Ltd., and Copperweld Bimetallics, LLC, is a leading manufacturer and innovator of copper-cladded bimetallic engineered conductor products used in the electrical, telecommunications, transportation, utilities and industrial industries. With extensive design and production capabilities and a long-standing dedication to customer service, Fushi Copperweld, Inc. is the preferred choice bimetallic products world-wide. For more information, visit: http://www.fushicopperwe... .

Safe Harbor Statement

This press release may include certain statements that are not descriptions of historical facts, but are forward-looking statements. Forward-looking statements can be identified by the use of forward-looking terminology such as "will," "believes," "expects" or similar expressions. These forward-looking statements may also include statements about our proposed discussions related to our business or growth strategy, which is subject to change. Such information is based upon expectations of our management that were reasonable when made but may prove to be incorrect. All of such assumptions are inherently subject to uncertainties and contingencies beyond our control and upon assumptions with respect to future business decisions, which are subject to change. We do not undertake to update the forward-looking statements contained in this press release. For a description of the risks and uncertainties that may cause actual results to differ from the forward-looking statements contained in this press release, see our most recent Annual Report filed with the Securities and Exchange Commission (SEC) on Form 10-K, and our subsequent SEC filings. Copies of filings made with the SEC are available through the SEC's electronic data gathering analysis retrieval system (EDGAR) at http://www.sec.gov .

    For more information, please contact:

     Nathan J. Anderson
     Vice President of Investor Relations
     Fushi Copperweld, Inc.
     Email: IR@fushicopperweld.com
     Tel:   +1-931-433-0482

[Press Release] Fushi Copperweld Announces Pricing of Follow-on Public Offering

28 Jan 2010 02:17:00 GMT

DALIAN, China, Jan. 26 /PRNewswire-Asia-FirstCall/ -- Fushi Copperweld, Inc., (the "Company") (Nasdaq: FSIN), a leading global manufacturer and innovator of copper-clad bimetallic wire used in a variety of telecommunication, utility, transportation and other electrical applications, today announced the pricing of an underwritten public follow-on offering of 6.5 million shares of its common stock at a price of $8.00 per share.

The Company will receive aggregate net proceeds of approximately $48.0 million, after deducting underwriting discounts and commissions and estimated offering expenses payable by the Company, not including the over-allotment option. The Company intends to use approximately $39.7 million of the net proceeds from the offering to repay indebtedness. It will use the remaining proceeds for working capital and other general corporate purposes, which may include, among other things, the expansion of its existing capacity and potential acquisitions. The Company expects to close the transaction on or about February 1, 2010, subject to customary conditions.

Jefferies & Company, Inc. acted as sole book-running manager for the offering. Roth Capital Partners, LLC served as co-lead manager, and Rodman & Renshaw, LLC served as co-manager. In connection with this offering, the Company has granted the underwriters a 30-day option to purchase up to an additional 975,000 shares of common stock.

The shares are being sold under the Company's existing shelf registration statement (File No, 333 - 160449), which was declared effective by the Securities and Exchange Commission (the "SEC") on January 15, 2010. Any offer of the shares will be made exclusively by means of a base prospectus, and a prospectus supplement filed with the SEC. When available, the base prospectus and final prospectus supplement relating to the offering may be obtained by contacting Jefferies & Company, Inc. at 520 Madison Avenue, New York, N.Y. 10022.

This announcement shall not constitute an offer to sell or the solicitation of an offer to buy any securities of the Company, nor shall there be any sale of securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Fushi Copperweld, Inc.

Safe Harbor Statement

    For more information, please contact:

     Nathan J. Anderson
     Vice President of Investor Relations
     Fushi Copperweld, Inc.
     Tel:   +1-931-433-0482
     Email: IR@fushicopperweld.com

[Press Release] Fushi Copperweld Subsidiary Signs Definitive Agreement to Acquire Dalian Jinchua

21 Jan 2010 13:00:00 GMT

DALIAN, China, Jan. 21 /PRNewswire-Asia-FirstCall/ -- Fushi Copperweld, Inc. (the "Company") (Nasdaq: FSIN), the leading global manufacturer and innovator of copper-clad bimetallic wire used in a variety of telecommunication, utility, transportation and other electrical applications, today announced that its subsidiary, Fushi International (Dalian) Bimetallic Cable Co., Ltd. ("Fushi") has entered into a definitive agreement to acquire Dalian Jinchuan Electric Cable Co., Ltd. ("Dalian Jinchuan") for approximately $10.2 million. Dalian Jinchuan, a leading Northeastern Chinese manufacturer of low- and medium-voltage power cables using copper, aluminum and copper-clad center conductors, reported 2008 revenues as audited under Chinese GAAP of approximately $18 million.

The acquisition of Dalian Jinchuan would mark the Company's strategic expansion into the power cable industry, as well as the execution of its strategy of expanding its downstream processing capabilities through vertical integration. The acquisition would also allow the Company to expand into Northeastern China. The Dalian Jinchuan brand of low- and medium-voltage power cable is well known and respected among customers in Northeastern China and other industry participants. The proposed acquisition will allow the Company to access the growing power market through Dalian Jinchuan's broad sales network, existing customer relationships, research and development program, manufacturing equipment and facilities in Dalian, and the experience and relationships of its management team.

The purchase price of $10.2 million may be made, at the option of the Company, in cash and restricted stock of the Company over the next year. Upon closing, the Company expects the acquisition of Dalian Jinchuan to be immediately accretive to earnings. Fushi expects the transaction to be finalized during the course of the first quarter 2010 and the consummation of the acquisition is subject to customary closing conditions.

The Company today also announced that Fushi received its market access certification from Jilin Oilfield Limited Company ("JOLC"), a division of PetroChina, for its copper-clad aluminum (CCA) and copper-clad steel (CCS) based power transmission products. The certification from JOLC makes Fushi an approved supplier for low- and medium-voltage power cable applications within JOLC's oilfield exploration and production projects. Fushi intends to apply for its national certification with PetroChina upon its successful implementation within JOLC's current oilfield projects.

"The contemplated acquisition of Dalian Jinchuan is part of our strategy to bolster organic growth with targeted investments within the electrical utility industry that have the potential to contribute in both the near and long term," said Fu Li, Chairman and Co-Chief Executive Officer of the Company. "The proposed acquisition will allow us to strategically diversify our end markets and customer base while improving profitability. The opportunity to supply CCS and CCA based products to JOLC's ongoing oilfield development projects is a prime example of how we expect to benefit from the many synergies that the combination of Fushi's CCA and CCS products and Dalian Jinchuan's jacketing and other downstream processing capabilities offer."

About Fushi Copperweld, Inc.

Fushi Copperweld, Inc. through its wholly owned subsidiaries, Fushi International (Dalian) Bimetallic Cable Co., Ltd., and Copperweld Bimetallics, LLC, is the leading manufacturer and innovator of copper-clad bimetallic engineered conductor products used in the electrical, telecommunications, transportation, utilities and industrial industries. With extensive design and production capabilities and a long-standing dedication to customer service, Fushi Copperweld, Inc. is the preferred choice bimetallic products world-wide. For more information, visit: http://www.fushicopperwe... .

Safe Harbor Statement

    For more information, please contact:

     Nathan J. Anderson
     Vice President of Investor Relations
     Fushi Copperweld, Inc.
     Email: IR@fushicopperweld.com
     Phone: +1-931-433-0482

[Press Release] Fushi Copperweld Announces Follow-on Public Offering

19 Jan 2010 12:32:00 GMT

DALIAN, China, Jan. 19 /PRNewswire-Asia-FirstCall/ -- Fushi Copperweld, Inc. (the "Company") (NasdaqGS: FSIN), the leading global manufacturer and innovator of copper-clad bimetallic wire used in a variety of telecommunication, utility, transportation and other electrical applications, today announced the commencement of an underwritten public follow-on offering of 5,000,000 shares of its common stock pursuant to its shelf registration statement. In connection with this offering, the Company has granted the underwriters a 30-day option to purchase up to an additional 750,000 shares of common stock to cover over-allotments, if any.

The Company intends to use the net proceeds from the offering to repay indebtedness and for working capital and other general corporate purposes, which may include, among other things, the expansion of existing capacity and potential acquisitions.

Jefferies & Company, Inc. is acting as sole book-running manager for the offering. Roth Capital Partners, LLC will serve as co-lead manager. Rodman & Renshaw, LLC will serve as co-manager.

The shares will be issued pursuant to a shelf registration statement on Form S-3 previously filed with and declared effective by the Securities and Exchange Commission, or SEC. The Company has also filed with the SEC a preliminary prospectus supplement with respect to the offering. Copies of the preliminary prospectus may be obtained by contacting:

     Jefferies & Company, Inc.
     Equity Syndicate Middle Office
     520 Madison Avenue, 12th Floor
     New York, NY 10022
     (212) 284-3418

About Fushi Copperweld, Inc.

Fushi Copperweld, Inc. through its wholly owned subsidiaries, Fushi International (Dalian) Bimetallic Cable Co., Ltd., and Copperweld Bimetallics, LLC, is the leading manufacturer and innovator of copper-cladded bimetallic engineered conductor products used in the electrical, telecommunications, transportation, utilities and industrial industries. With extensive design and production capabilities and a long-standing dedication to customer service, Fushi Copperweld, Inc. is the preferred choice bimetallic products world-wide. For more information, visit: http://www.fushicopperwe... .

Safe Harbor Statement

    For more information, please contact:

     Nathan J. Anderson
     Vice President of Investor Relations
     Fushi Copperweld, Inc.
     Email: IR@fushicopperweld.com
     Tel:   +1-931-433-0482

[Press Release] Fushi Copperweld to Form China's First Composite Conductor Working Group

14 Dec 2009 14:15:00 GMT

- Fushi International (Dalian) Bimetallic Cable Co., appointed to Form Composite Conductors Working Group by China's National Standardization Committee -

Upon formation, the working group will be the first standards setting body within China for composite conductors. The working group, which will draw together a number of well-known industry experts, leaders, and enterprises, will be tasked with formulating a nationwide standard for composite conductor wires within the telecommunication, electrical, automotive, railway, industrial and utility industries, as well as in other high frequency signal and power transmission areas. In 2007, the Company along with the Number 23 Research Institute of China Electronics and Technology Group and other industry experts formulated a national standard for Copper-Clad Aluminum Wire ("CCA"). The proposed national standard for CCA has been formally approved by the National Standards Committee and awaits industry implementation.

"Fushi Copperweld is honored that the National Standardization Administration has once again chosen the Company to play an active role in drafting national standards within the wire and cable industry," commented Mr. Fu Li, Chairman and co-Chief Executive Officer of Fushi Copperweld. "The formation of a composite conductor working group will greatly promote the national composite conductor industry and relevant industries in China through the development of nationwide standards. As the global leader of copper-cladded composite conductors with over 100 years of combined operational expertise, Fushi Copperweld looks forward to partnering with leaders within China's wire and cable industry to develop a nationwide standard for composite conductors and ensure that the needs of the industry are met."

About Fushi Copperweld, Inc.

Fushi Copperweld, Inc. through its wholly owned subsidiaries, Fushi International (Dalian) Bimetallic Cable Co., Ltd., and Copperweld Bimetallics, LLC, is the leading manufacturer and innovator of copper-cladded bimetallic engineered conductor products used in the electrical, telecommunications, transportation, utilities and industrial industries. With extensive design and production capabilities and a long-standing dedication to customer service, Fushi Copperweld, Inc. is the preferred choice bimetallic products world-wide. For more information, visit: http://www.fushicopperwe... .

Safe Harbor Statement

This press release may include certain statements that are not descriptions of historical facts, but are forward-looking statements. Forward- looking statements can be identified by the use of forward-looking terminology such as "will" "believes", "expects" or similar expressions. These forward- looking statements may also include statements about our proposed discussions related to our business or growth strategy, which is subject to change. Such information is based upon expectations of our management that were reasonable when made but may prove to be incorrect. All of such assumptions are inherently subject to uncertainties and contingencies beyond our control and upon assumptions with respect to future business decisions, which are subject to change. We do not undertake to update the forward-looking statements contained in this press release. For a description of the risks and uncertainties that may cause actual results to differ from the forward-looking statements contained in this press release, see our most recent Annual Report filed with the Securities and Exchange Commission (SEC) on Form 10-K, and our subsequent SEC filings. Copies of filings made with the SEC are available through the SEC's electronic data gathering analysis retrieval system (EDGAR) at http://www.sec.gov .

    For more information, please contact:

     Nathan J. Anderson
     Vice President of Investor Relations
     Fushi Copperweld, Inc.
     Email: IR@fushicopperweld.com
     Tel:   +1-931-433-0482

[Press Release] Fushi Copperweld Appoints Joseph Longever as Co-Chief Executive Officer

30 Nov 2009 14:00:00 GMT

DALIAN, China, Nov. 30 /PRNewswire-Asia-FirstCall/ -- Fushi Copperweld, Inc., (the "Company") (Nasdaq: FSIN - News), the leading global manufacturer and innovator of copper-clad bimetallic wire used in a variety of telecommunication, utility, transportation and other electrical applications, today announced the appointment of Joseph J. Longever as co-Chief Executive Officer, effective November 23, 2009. The position of co-CEO of the Company was approved by a unanimous vote of the Board of Directors, reflecting the Company's growth and its numerous opportunities for continued expansion throughout the world.

Mr. Longever was previously Executive Vice President and Chief Commercial Officer of the Company and will serve alongside Fushi Copperweld's current CEO, Li Fu. Mr. Fu's role at the Company and his position as Chairman of the Board will remain unchanged as result of Mr. Longever's appointment.

On behalf of Fushi Copperweld's Board of Directors, Mr. Fu said, "Joe's technical and industry expertise make him ideally suited to lead Fushi Copperweld's growing businesses worldwide. As co-CEOs, Joe and I will build upon the tremendous progress and industry leading position we have been able to achieve since becoming a publicly traded company. Initiating a co-CEO relationship further signifies our efforts to organize ourselves for continued growth by developing and placing executive talent in increasing levels of leadership."

"As we grow and expand our business and set aggressive goals for our continued growth, Joe's talents will be more focused on charting strategy, the Company's philosophy, mission, business integration and expanded global footprint," said Mr. Fu. "Joe has significant experience developing markets for bimetallic products in a wide range of applications throughout the world. This appointment recognizes the successful partnership that Joe and I have enjoyed since he joined the Company, as well the significant achievements of this Company under his leadership."

Mr. Longever joined the Company in July of 2009 and was appointed Executive Vice President and Chief Commercial Officer. Mr. Longever has more than 25 years of bimetallic products experience and over 29 years of experience in sales and manufacturing management.

"Simply put, my mission will be to work with Mr. Fu to develop the strategies that express his vision for further growth and to integrate our businesses worldwide," said Mr. Longever. "Our opportunities for continued growth are tremendous and together Mr. Fu and I, as well as the entire Fushi Copperweld management team, are determined to make sure we continue our success with strategies that serve investors in new and better ways. I am fully committed to and confident in the future of Fushi Copperweld and excited to have the opportunity to contribute to the continued success of the business, its shareholders and employees."

In addition to working more closely with Mr. Fu on the firm's strategic priorities, Mr. Longever will continue to direct the Company's worldwide sales forces.

Prior to joining the Company, Mr. Longever ran an independent Consulting Service he founded in 2007 which, in collaboration with clients strategic initiatives, directed all global activity including sales, marketing, supply chain development and management to a very diverse group of clients.

From 1999 to 2007 Mr. Longever held various Senior Management, Sales, Marketing and Operation positions within Copperweld Bimetallics ("Copperweld"), including Vice President and Chief Operating Officer. In his tenure with Copperweld, Mr. Longever played a central role in managing the operations and strategy of the Company with specific focus on global sales and corporate strategy. Among the key initiatives he led were the reorganization and redeployment of global sales assets during the 2001 telecommunications meltdown when Copperweld saw 85% of its revenues and profits derived from this market. As a result, Copperweld began to produce a product that served an alternative market segment, including new product applications, which generated new sales volume recovering approximately 30% of lost revenue while improving margins by 10%.

Mr. Longever has also served as Executive Vice President and General Manager at Crest Manufacturing Company; and held sales management roles at Texas Instruments. Mr. Longever, 56, holds a Bachelor's degree in Business Administration from the Nathaniel Hawthorne College in New Hampshire.

Fushi Copperweld has entered into a new employment agreement with Mr. Longever, the material terms of which are described in a Current Report on Form 8-K that the Company will file with the Securities and Exchange Commission. As part of Longever's equity compensation, Fushi Copperweld will grant certain stock options and restricted stock units pursuant to the Company's 2007 Stock Incentive Plan.

About Fushi Copperweld, Inc.

Fushi Copperweld, Inc. through its wholly owned subsidiaries, Fushi International (Dalian) Bimetallic Cable Co., Ltd., and Copperweld Bimetallics, LLC, is the leading manufacturer and innovator of copper-cladded bimetallic engineered conductor products used in the electrical, telecommunications, transportation, utilities and industrial industries. With extensive design and production capabilities and a long-standing dedication to customer service, Fushi Copperweld, Inc. is the preferred choice bimetallic products world-wide. For more information, visit: http://www.fushicopperwe... .

Safe Harbor Statement

    For more information, please contact:

     Nathan Anderson
     Vice President of Investor Relations
     Fushi Copperweld, Inc.
     Email: IR@fushicopperweld.com
     Phone: +1-931-433-0482

[Press Release] Fushi Copperweld Reports Third Quarter 2009 Financial Results

06 Nov 2009 13:00:00 GMT

DALIAN, China, Nov. 6, 2009 /PRNewswire-Asia-FirstCall/ -- Fushi Copperweld, Inc. (Nasdaq: FSIN - News), the leading global manufacturer and innovator of copper-clad bimetallic wire used in a variety of telecommunication, utility, transportation and other electrical applications, today announced financial results for the third quarter ended September 30, 2009.

    Third Quarter Highlights
    -- GAAP EPS of $0.31
    -- Adjusted Non-GAAP EPS of $0.26
    -- Metric tons of volume shipped at Dalian increased 9.5% compared to
       the third quarter 2008
    -- Gross margin increased 530 basis points from 26.5% of revenues to
       31.8% of revenues
    -- Operating income increased 300 basis points from 19.2% to 22.2% of
       revenues
    -- Returned to profitability at Fayetteville facility; generated
       approximately $0.2 million of net income
    -- Generated $11.1 million of cash flow from operations in the quarter;
       $15.6 million year-to-date
    -- GAAP EPS for 4Q 2009 projected to be $0.26 - $0.30

Revenues for the third quarter of 2009 were $47.7 million compared to $63.8 million in the third quarter of the prior year, a decrease of $16.1 million or 25.2%. The decline was driven primarily by a decrease in average selling price (21.6%) resulting from lower raw material prices. Revenues were $38.9 million at the Company's Dalian, China facility and revenues from the Fayetteville, TN and Telford, UK facilities combined accounted for $8.8 million. Volume at the Company's Dalian facility increased 9.5% as compared to the third quarter 2008 due to increased 3G related demand, increased government spending on basic infrastructure projects in China and continued expansion into the utility market. On a consolidated basis, the Company experienced a slight decline of 3.7% in metric tons sold.

Gross profit for the third quarter of 2009 was $15.2 million compared to $16.9 million in the third quarter of the prior year, a decrease of $1.7 million or 10.1%. Gross margin as a percentage of revenues increased to 31.8% from 26.5% in the same period of the prior year. Gross margin at the Company's Dalian, China facility increased from 32.3% in the third quarter of 2008 to 34.6% in the third quarter of 2009 as the Company cycled through lower cost inventory. The gross margin at the Company's Fayetteville facility increased from 11.3% to 20.1% year over year mostly as a result of cost savings initiatives implemented by management. This gross margin represented the highest quarterly gross margin level achieved at the Fayetteville facility since the October 2007 acquisition of Copperweld Bimetallics.

Operating expenses for the third quarter 2009 remained relatively flat for the third quarter 2009 compared to the prior year's period at approximately $4.6 million. On a percentage basis, operating expenses in the third quarter 2009 increased 230 basis points to 9.6% from 7.3% in the prior year's quarter, primarily a result of lower sales in the third quarter of 2009.

Operating income was $10.6 million in the third quarter of 2009 compared $12.2 million in the third quarter of 2008, a decrease of $1.6 million or 13.6%. The decrease in operating income was primarily due to lower average selling prices resulting from lower raw material prices. On a percentage basis, operating income in the third quarter 2009 increased 300 basis points to 22.2% from 19.2% in the prior year's quarter.

Profit before tax for Dalian and Fayetteville and Telford combined was $10.9 million and $0.2 million respectively in the third quarter of 2009. The loss at the Fushi Copperweld parent company level was $1.0 million primarily due to interest expenses on the high yield notes, non-cash stock-based compensation, non-cash charges related to changes in fair value of derivative liabilities related to the convertible notes conversion options, as well as professional fees and outside service expenses and partially offset by gain from the repurchase of the convertible notes. On a consolidated basis, profit before tax was $10.1 million and we recognized a net tax expense of $0.9 million, reflecting an 8.9% effective tax rate.

Dalian Fayetteville Parent & Telford Company Consolidated Profit (Loss) before income tax 10,947,268 218,310 (1,070,657) 10,094,921 Income tax expense (credit) 1,788,366 -- (888,378) 899,988 Profit after income tax 9,194,933

Net income on a GAAP basis of $9.2 million increased $0.2 million, or 2.2%, from $9.0 million for the same period in 2008. GAAP net income margin increased to 19.3% from 14.2% for the same period in 2008.

GAAP earnings per diluted share were $0.31 per diluted share compared with $0.31 per diluted share in the third quarter of 2008. GAAP results included :(1) $2.1 million charge related to changes in fair value of derivative liability -- conversion option, (2) $3.8 million of gain on the convertible notes extinguishment (3) $0.2 million of stock-based compensation cost. Excluding the non-cash gains and expenses related to changes in fair value of derivative liability and share-based compensation, adjusted non-GAAP net income was $7.5 million, or $0.26 per diluted share in the third quarter of 2009.

During the quarter, the Company generated $11.1 million of cash flows from operations, which represented a $27.3 million increase over the same period in the previous year. The Company's cash position at the end of the third quarter was $60.0 million and the Company's debt position was $39.0 million compared to debt of $67.3 million at December 31, 2008. Accounts receivables at September 30, 2009 were $69.1 million compared to $49.8 million on December 31, 2008, an increase of 38.8%. This increase is primarily a result of extended credit terms in 2009 to certain credible customers that have long-standing business relationships with us in order to capture increased market share.

Mr. Li Fu, Chairman and Chief Executive Officer of Fushi Copperweld, commented, "We are extremely pleased with achieving yet another successful quarter for the Company. Despite the global slowdown, we were able to realize profit at all our facilities worldwide. Our China operations remained strong and we are optimistic that our results will continue to improve as we realize further benefits from the Chinese government's stimulus package and 3G network infrastructure build out. We have been prudently expanding our Chinese operations and believe we are well positioned to capitalize on the increasing demand. Market conditions in North America and Europe have stabilized, and despite flat sales our Fayetteville and Telford operations achieved profitability for the first quarter this year, a clear indication that cost savings initiatives have successfully lowered the breakeven levels at Fayetteville and Telford."

Mr. Fu continued, "We are especially pleased with the addition of Linda Zhang as Chief Financial Officer and the expertise she has brought at a pivotal time in our strategic growth plan. I am also very proud and pleased with the overall performance of our entire management team and their individual contributions will only serve to strengthen our team in total. I am confident that our current team will take us to the next level and build a stronger Company."

Fourth Quarter 2009 Outlook and Macro Trends

In the 2009 fourth quarter, the Company expects adjusted fully diluted earnings per share before the impact of non-cash expense related to stock- based compensation between $0.26 and $0.30 based on an estimated weighted average diluted share count of approximately 29.4 million shares. This expectation is based on an effective tax rate at the consolidated level of 8%.

Mr. Fu continued, "As we look forward, we continue to be optimistic and expect continued growth in demand for CCA-based telecom products due to China's 3G infrastructure investments. We also continue to believe that the electrical utility market presents significant opportunities as stimulus packages increase national transmission and distribution spending and we prep the market for the introduction of 8,200 metric tons of CCS cladding capacity by the end of first quarter 2010. At our Fayetteville and Telford facilities, we have successfully lowered the breakeven level at our Fayetteville facility and have recalibrated costs to match economic conditions. With markets stabilizing, we are now in a stronger position to pursue incremental growth opportunities."

Accounting for derivative liability -- conversion option

Effective January 1, 2009, the Company adopted the provisions of EITF Issue 07-5 "Determining Whether an Instrument (or Embedded Feature) Is Indexed to an Entity's Own Stock", which is effective for financial statements for fiscal years beginning after December 15, 2008 and which replaced the previous guidance on this topic in EITF Issue 01-6. As a result, from January 1, 2009, the Company is required to separately account for the conversion option embedded in the Company's $5,000,000 convertible notes as a derivative instrument liability, carried at fair value and marked-to-market each period, with changes in the fair value each period charged or credited to income. In the third quarter of 2009, the Company recorded non-cash charges to income for changes in the fair value of these derivative liabilities of $2.1 million, or $0.07 per diluted share. There is no impact on periodic cash flows.

Reconciliation of Non-GAAP Financial Measures

Our net income was materially impacted by certain non-cash expenses including stock-based compensation and change in the fair value of derivative liabilities related to the conversion in our outstanding convertible notes. In the third quarter 2009, we also recognized a one-time non-cash gain on redemption of convertible notes. To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, we use EPS as adjusted for the impact of non-cash expenses related to stock-based compensation and the change in the fair value of derivative liabilities related to the conversion option in our outstanding convertible notes. These Company-defined adjusted measures are being provided because management believes they are useful in analyzing the underlying operating performance of the business. These measures may be inconsistent with similar measures presented by other companies and should only be used in conjunction with our results reported according to accounting principles generally accepted in the United States. A reconciliation of earnings per share as reported and operating income as reported to adjusted non-GAAP earnings per share and adjusted non-GAAP operating income follows:

2009 Q3 2008 Q3 GAAP Net Income 9,194,932 9,046,950 Non-cash expense: Change in fair value of derivative liability - conversion option 2,058,352 -- Gain on CB extinguishment (3,842,935) -- Stock-based compensation 179,527 523,474 Total non-cash expense (1,605,056) 523,474 Provision for income tax (61,039) (177,981) Adjusted to Non-GAAP Net income 7,528,837 9,392,443 GAAP Earnings per share: Basic 0.33 0.33 Diluted 0.31 0.32 Non-GAAP Earnings per share: Basic 0.27 0.34 Diluted 0.26 0.33

Explanation of Redemption of Convertible Notes

On August 13, 2009, the Company entered into a Notes Purchase Agreement (the "Repurchase Agreement") with Citadel Equity Fund Ltd. Pursuant to the Repurchase Agreement, the Company repurchased $2.0 million principal amount of the convertible notes in exchange for the issuance 440,529 shares of our common stock, valued at $4.0 million. The remaining $3.0 million principal amount will be repurchased for cash in the amount of $6,060,000. The early repurchase of the notes prior to the maturity date will result in a recognized gain of $3.8 million.

Third Quarter Earnings Call

The Company will conduct a conference call to discuss the third quarter 2009 results today, Friday, November 6, 2009, at 8:00 am ET. Listeners may access the call by dialing +1-800-355-4959. To listen to the live webcast of the event, please got to Fushi Copperweld's website at http://www.fushicopperwe... . Please go to the website 15 minutes early to download and install any necessary audio software.

A replay of the call will be available from November 6, 2009 to November 16, 2009. Listeners may access the replay by dialing +1-800-408-3053; password: 5500028.

About Fushi Copperweld, Inc.

Fushi Copperweld, Inc. through its wholly owned subsidiaries, Fushi International (Dalian) Bimetallic Cable Co, Ltd., and Copperweld Bimetallics, LLC, is the leading manufacturer and innovator of copper cladded bimetallic engineered conductor products used in the electrical, telecommunications, transportation, utilities and industrial industries. With extensive design and production capabilities and a long-standing dedication to customer service, Fushi Copperweld, Inc. is the preferred choice bimetallic products world-wide. For more information, visit: http://www.sec.gov .

For more information, please contact: Nathan J. Anderson Vice President of Investor Relations Fushi Copperweld, Inc. Tel: +1-931-433-0482 Email: IR@fushicopperweld.com Judy Zhu IR Manager Fushi Copperweld, Inc. Tel: +1-931-433-0482 Email: jzhu@fushicopperweld.com FUSHI COPPERWELD, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS AS OF SEPTEMBER 30, 2009 AND DECEMBER 31, 2008 ASSETS September 30, December 31, 2009 2008 Unaudited CURRENT ASSETS: Cash $60,009,611 $65,611,770 Restricted cash -- 1,000,000 Accounts receivable, trade, net of allowance of bad debt of $1,181,365 and $318,529 as of September 30, 2009 and December 31, 2008, respectively 69,052,683 49,782,548 Inventories 10,657,786 6,977,852 Other receivables and prepaid expenses 656,439 1,041,273 Advances to suppliers 5,164,959 20,261,585 Deposit in derivative hedge 1,000,000 1,000,000 Prepaid taxes -- 670,805 Total current assets 146,541,478 146,345,833 PLANT AND EQUIPMENT, net 115,610,582 119,761,027 OTHER ASSETS: Advances to suppliers, non-current 5,862,776 4,022,879 Notes receivables, non-current 729,106 799,106 Intangible assets, net of accumulated amortization 12,042,501 12,406,920 Deferred loan expense, net 2,500,375 3,317,725 Deferred tax assets 11,057,111 7,804,027 Total other assets 32,191,869 28,350,657 Total assets $294,343,929 $294,457,517 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Revolver line of credit $3,988,509 $4,712,075 Accounts payable, trade 3,335,847 7,204,156 Notes payable, current 10,000,000 5,000,000 Short-term bank loans -- 17,588,400 Other payables and accrued liabilities 8,385,214 4,751,460 Extinguished convertible note liabilities 6,060,000 -- Customer deposits 297,533 542,540 Taxes payable 3,314,803 -- Cross currency hedge payable 1,071,557 104,324 Obligation under capital lease, current 68,976 -- Loan from shareholder 4,553,731 -- Total current liabilities 41,076,170 39,902,955 LONG-TERM LIABILITIES: Notes payable, non-current 25,000,000 40,000,000 Obligation under capital lease, non-current 174,046 -- Fair value of derivative instrument 7,652,664 4,377,076 Total long-term liabilities 32,826,710 44,377,076 Total liabilities 73,902,880 84,280,031 COMMITMENTS AND CONTINGENCIES -- 7,197,794 SHAREHOLDERS' EQUITY: Preferred stock, $0.001 par value, 5,000,000 shares authorized, none issued or outstanding as of September 30, 2009 and December 31, 2008 -- -- Common stock, $0.006 par value, 100,000,000 shares authorized, September 30, 2009: 30,543,716 shares issued and 28,343,716 outstanding December 31, 2008: 27,499,034 shares issued and 27,399,034 outstanding 170,063 164,395 Restricted common stock in escrow 13,200 600 Additional paid in capital 105,197,671 91,172,890 Common stock subscription receivable (5,919,597) -- Statutory reserves 14,979,861 12,316,147 Retained earnings 88,450,844 78,613,158 Accumulated other comprehensive income 17,549,007 20,712,502 Total shareholders' equity 220,441,049 202,979,692 Total liabilities and shareholders' equity $294,343,929 $294,457,517 FUSHI COPPERWELD, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2009 AND 2008 (UNAUDITED) Three months ended Nine months ended September 30, September 30, 2009 2008 2009 2008 REVENUES $47,676,346 $63,823,927 $131,234,427 $180,369,083 COST OF GOODS SOLD 32,506,879 46,931,400 93,672,906 131,996,263 GROSS PROFIT 15,169,467 16,892,527 37,561,521 48,372,820 OPERATING EXPENSES Selling expenses 1,078,158 1,223,087 3,366,719 3,274,048 General and administrative expenses 3,510,034 3,418,704 9,747,637 11,335,948 Total operating expenses 4,588,192 4,641,791 13,114,356 14,609,996 INCOME FROM OPERATIONS 10,581,275 12,250,736 24,447,165 33,762,824 OTHER INCOME (EXPENSE) Interest income 76,094 176,830 242,717 529,651 Interest expense (1,201,014) (1,800,738) (4,150,086) (7,386,274) (Loss) gain on derivative instrument (1,199,438) (32,482) (1,581,812) 322,708 Gain on convertible note extinguishment 3,842,935 -- 3,842,935 -- Change in fair value of derivative liability - warrants -- -- (752,114) -- Change in fair value of derivative liability - conversion option (2,058,352) -- (7,181,198) -- Other income (expense) 53,421 (71,653) (193,061) (179,655) Total other expense, net (486,354) (1,728,043) (9,772,619) (6,713,570) INCOME BEFORE INCOME TAXES 10,094,921 10,522,693 14,674,546 27,049,254 PROVISION FOR INCOME TAXES 899,988 1,475,743 815,996 3,150,962 NET INCOME 9,194,933 9,046,950 13,858,550 23,898,292 OTHER COMPREHENSIVE INCOME Unrealized gain on marketable securities -- -- -- 22,301 Foreign currency translation adjustment 72,136 1,899,163 112,093 14,062,515 Change in fair value of derivative instrument 237,768 3,940,908 (3,275,588) 3,209,403 COMPREHENSIVE INCOME $9,504,837 $14,887,021 $10,695,055 $41,192,511 EARNINGS PER SHARE: Basic $0.33 $0.33 $0.50 $0.88 Diluted $0.31 $0.31 $0.48 $0.83 WEIGHTED AVERAGE SHARES: Basic 28,084,416 27,387,302 27,827,152 27,263,638 Diluted 29,206,508 28,446,786 28,676,832 28,601,237 FUSHI COPPERWELD, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2009 AND 2008 (UNAUDITED) 2009 2008 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $13,858,550 $23,898,292 Adjustments to reconcile net income provided by (used in) operating activities: Bad debt expense 862,302 355,293 Inventories write-off 119,133 -- Reserve for inventories 62,914 401,646 Depreciation 7,191,842 4,728,235 Loss on sale of property and equipment 117,430 -- Deferred taxes (3,253,085) (1,295,286) Amortization of intangible assets 357,449 256,722 Amortization of loan commission 817,349 2,525,756 Interest penalty -- 710,544 Amortization of stock compensation expense 1,108,254 1,437,557 Loss (gain) on derivative instrument 1,581,812 (322,708) Gain on convertible note extinguishment (3,842,935) -- Change in fair value of derivative liability - conversion option 7,181,198 -- Change in fair value of derivative liability - warrants 752,114 -- Investment loss on marketable securities -- 16,158 (Loss) gain on derivative instrument Accounts receivable (20,177,587) (24,965,036) Inventories (3,756,514) (7,885,132) Other receivables and prepayments 501,770 1,092,497 Advances to suppliers - current 15,073,210 (22,061,823) Accounts payable (3,839,555) 2,521,359 Other payables and accrued liabilities (2,863,124) (2,737,772) Customer deposits (250,861) 528,731 Taxes payable 3,984,006 960,752 Net cash provided by (used in) operating activities 15,585,672 (19,834,215) CASH FLOWS FROM INVESTING ACTIVITIES: Proceeds from sale of marketable securities -- 2,983,842 Payments on derivative instrument (614,580) -- Proceeds from derivative instrument -- 973,556 Deposit in derivative hedge -- (1,000,000) Purchase of land use right -- (1,687,468) Proceeds from sale of property and equipment 424,444 -- Purchases of property and equipment (3,292,007) (15,540,210) Net of refund and (payments) on prepayment of equipment (1,877,177) (3,148,802) Net cash used in investing activities (5,359,320) (17,419,082) CASH FLOWS FROM FINANCING ACTIVITIES: Release of restricted cash 1,000,000 -- Net (payments) borrowings on revolver line of credit (723,566) 2,279,289 Proceeds from short-term bank loans -- 16,908,000 Proceeds from shareholder loan 4,552,000 -- Payments on short-term bank loans (17,553,600) (17,268,032) Payment on capital lease obligation (23,575) -- Payment of high yield notes payable (5,000,000) -- Proceeds from exercise of stock warrants -- 139,394 Proceeds on issuance of common stock and warrants 1,920,000 -- Net cash (used in) provided by financing activities (15,828,741) 2,058,651 EFFECT OF EXCHANGE RATE ON CASH 230 5,323,298 DECREASE IN CASH (5,602,159) (29,871,348) CASH, beginning of period 65,611,770 79,914,758 CASH, end of period $60,009,611 $50,043,410 Supplemental cash flow disclosures: Interest paid $3,650,785 $5,895,129 Income tax paid $3,609,505 $2,907,756 FUSHI COPPERWELD, INC AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY Common stock Shares outstanding Shares In escrow Additional Number Par Number Par paid in of shares value of shares value capital BALANCE, December 31, 2007 25,211,304 $151,268 100,000 $600 $77,665,064 CB transfer to common stock @$7.00 2,142,857 12,857 14,987,143 Adjustment to shares outstanding 4,851 29 (29) Exercise of warrants for cash @ $3.11 44,873 270 139,124 Stock compen- sation expense 1,437,557 Net income Allocation of APIC due to Kuhn's litigation (3,487,250) Adjustment to statutory reserve Change in fair value of derivative instrument Foreign currency translation gain Reverse unrealized loss on marketable securities BALANCE, September 30, 2008 (unaudited) 27,403,885 164,424 100,000 600 90,741,609 Adjustment to shares outstanding (4,851) (29) 29 Stock compensation expense 431,252 Net income (Loss) gain on derivative instrument Change in fair value of derivative instrument Foreign currency translation gain BALANCE, December 31, 2008, as previously reported 27,399,034 164,395 100,000 600 91,172,890 Cumulative effect of reclassification of conversion option BALANCE, January 1, 2009, as adjusted (unaudited) 27,399,034 164,395 100,000 600 91,172,890 Shares issued for cash @ $4.80 400,000 2,400 1,706,157 Shares issued for convertible note extinguishment @ $9.80 440,529 2,643 3,997,357 Shares placed in escrow (subscription receivable) 2,200,000 13,200 6,249,481 Shares removed from escrow as payment of liability 100,000 600 (100,000) (600) Reclassification of derivative liability-warrant to equity 963,557 Exercise of stock option 4,153 25 (25) Stock compensation expense 1,108,254 Net income Adjustment to statutory reserve Change in fair value of derivative instrument Foreign currency translation gain BALANCE, September 30, 2009 (unaudited) 28,343,716 $170,063 2,200,000 $13,200 $105,197,671 Common stock Retained earnings Accumulated subscription Statutory Unrestricted comprehensive receivable reserves earnings income (loss) Totals BALANCE, December 31, 2007 $-- $8,321,726 $54,133,070 $4,015,930 $144,287,658 CB transfer to common stock @$7.00 15,000,000 Adjustment to shares outstanding -- Exercise of warrants for cash @ $3.11 139,394 Stock compen- sation expense 1,437,557 Net income 23,898,292 23,898,292 Allocation of APIC due to Kuhn's litigation (3,487,250) Adjustment to statutory reserve 3,254,932 (3,254,932) -- Change in fair value of derivative instrument 3,209,403 3,209,403 Foreign currency translation gain 14,062,515 14,062,515 Reverse unrealized loss on marketable securities 22,301 22,301 BALANCE, September 30, 2008 (unaudited) -- 11,576,658 74,776,430 21,310,149 198,569,870 Adjustment to shares outstanding -- Stock compen- sation expense 431,252 Net income 4,576,217 4,576,217 (Loss) gain on derivative instrument 739,489 (739,489) -- Change in fair value of derivative instrument 928,917 928,917 Foreign currency translation gain (1,526,564) (1,526,564) BALANCE, December 31, 2008, as previously reported -- 12,316,147 78,613,158 20,712,502 202,979,692 Cumulative effect of reclassify- cation of conversion option (1,357,150) (1,357,150) BALANCE, January 1, 2009, as adjusted (unaudited) -- 12,316,147 77,256,008 20,712,502 201,622,542 Shares issued for cash @ $4.80 1,708,557 Shares issued for convertible note extinguishment @ $9.80 4,000,000 Shares placed in escrow (subscription receivable) (6,262,681) -- Shares removed from escrow as payment of liability 343,084 343,084 Reclassifi- cation of derivative liability- warrant to equity 963,557 Exercise of stock option -- Stock compen- sation expense 1,108,254 Net income 13,858,550 13,858,550 Adjustment to statutory reserve 2,663,714 (2,663,714) -- Change in fair value of derivative instrument (3,275,588) (3,275,588) Foreign currency translation gain 112,093 112,093 BALANCE, September 30, 2009 (unaudited) $(5,919,597) $14,979,861 $88,450,844 $17,549,007 $220,441,049

[Press Release] Fushi Copperweld Announces Reporting Date for Third Quarter 2009 Financial Resul

02 Nov 2009 13:00:00 GMT

DALIAN, China, Nov. 2 /PRNewswire-Asia-FirstCall/ -- Fushi Copperweld, Inc. (the "Company") (Nasdaq: FSIN - News), the leading global manufacturer and innovator of copper-clad bimetallic wire used in a variety of telecommunication, utility, transportation and other electrical applications, today announced that the Company will report its third quarter 2009 financial results before the market opens on Friday, November 6, 2009.

Management will host a conference call at 8:00am ET on Friday, November 6th.

Listeners may access the call by dialing +1-800-355-4959. To listen to the live webcast of the event, please go to Fushi Copperweld's website at http://www.fushicopperwe... . Please go to the website 15 minutes early to download and install any necessary audio software.

A replay of the call will be available from November 6, 2009 to November 16, 2009. Listeners may access the replay by dialing +1-800-408-3053; password: 5500028.

About Fushi Copperweld, Inc.

Fushi Copperweld, Inc. through its wholly owned subsidiaries, Fushi International (Dalian) Bimetallic Cable Co, Ltd., and Copperweld Bimetallics, LLC, is the leading manufacturer and innovator of copper cladded bi-metallic engineered conductor products used in the electrical, telecommunications, transportation, utilities and industrial industries. With extensive design and production capabilities and a long-standing dedication to customer service, Fushi Copperweld, Inc. is the preferred choice bi-metallic products world-wide. For more information, visit: http://www.sec.gov .

    For more information please contact:

     Nathan Anderson
     Vice President of Investor Relations
     Fushi Copperweld, Inc.
     Email: IR@fushicopperweld.com
     Tel:   +1-931-433-0482

     Judy Zhu
     IR Manager
     Email: jzhu@fushicopperweld.com
     Tel:   +1-931-433-0482

[Press Release] Fushi Copperweld Appoints Linda Zhang as Chief Financial Officer

01 Sep 2009 20:40:00 GMT

DALIAN, China, Sept. 1 /PRNewswire-Asia-FirstCall/ -- Fushi Copperweld, Inc., (the "Company") (Nasdaq: FSIN - News), the leading global manufacturer and innovator of copper-clad bimetallic wire used in a variety of telecommunication, utility, transportation and other electrical applications, today announced that Mrs. Beihong "Linda" Zhang will succeed Wenbing "Christopher" Wang, Director, President, and Chief Financial Officer, as Executive Vice President and Chief Financial Officer, effective immediately.

Mr. Wang, who served as the Company's Chief Financial Officer since December 2005, will continue to serve as the Company's President and a member of the board of directors. Mrs. Zhang will be responsible for all aspects of the Company's finance function including accounting, financial planning and analysis, tax, treasury, audit, and investor relations.

Mrs. Zhang has over 13 years of experience in portfolio investment, corporate finance, and accounting. Most recently, from 2003 to August 2009, Mrs. Zhang was the Chief Financial Officer for Marco Consulting Group for its investment consulting business in Chicago. Prior to that, she served as Strategic Consultant at M Moser Associates where she led and coordinated corporate structuring and M&A efforts in line with strategic plans. Fluent in both Mandarin and English, Mrs. Zhang holds an M.B.A. in Finance from the Smeal College of Business at The Pennsylvania State University and a Bachelor of Science degree in Engineering and Architecture from Tongji University, Shanghai. She is also a charter holder of Chartered Financial Analyst and Financial Risk Manager.

"Chris has played a key role in establishing transparency and integrity in our financial practices and we are extremely grateful to have had his leadership. We look forward to his continuing contributions and experience," said Fu Li, Chairman and CEO at Fushi Copperweld. "We are extremely delighted to have Linda join our team, and we look forward to having her leadership and financial experience with us as we advance our strategic plans and manage our growth. I am confident that she will continue to successfully lead our strong finance organization and that our business throughout the world will continue to grow profitably under Linda's leadership. Linda also possesses proven leadership experience in managing the complexities of integrating acquired businesses."

"I am extremely pleased to be joining the Company at this time during a period of solid, sustainable growth," said Mrs. Linda Zhang. "I look forward to leveraging my experience to maintain transparent communication with the investment community. I am confident the Company will strive for excellence with continued diligence and determination."

About Fushi Copperweld, Inc.

Fushi Copperweld, Inc. through its wholly owned subsidiaries, Fushi International (Dalian) Bimetallic Cable Co, Ltd., and Copperweld Bimetallics, LLC, is the leading manufacturer and innovator of copper cladded bimetallic engineered conductor products used in the electrical, telecommunications, transportation, utilities and industrial industries. With extensive design and production capabilities and a long-standing dedication to customer service, Fushi Copperweld, Inc. is the preferred choice bimetallic products world-wide. For more information, visit: http://www.fushicopperwe... .

Safe Harbor Statement

This press release may include certain statements that are not descriptions of historical facts, but are forward-looking statements. Forward-looking statements can be identified by the use of forward-looking terminology such as "will," "believes," "expects" or similar expressions. These forward-looking statements may also include statements about our proposed discussions related to our business or growth strategy, which is subject to change. Such information is based upon expectations of our management that were reasonable when made but may prove to be incorrect. All of such assumptions are inherently subject to uncertainties and contingencies beyond our control and upon assumptions with respect to future business decisions, which are subject to change. We do not undertake to update the forward-looking statements contained in this press release. For a description of the risks and uncertainties that may cause actual results to differ from the forward-looking statements contained in this press release, see our most recent Annual Report filed with the Securities and Exchange Commission (SEC) on Form 10-K, and our subsequent SEC filings. Copies of filings made with the SEC are available through the SEC's electronic data gathering analysis retrieval system (EDGAR) at http://www.sec.gov .

    For further information, please contact:

    Fushi Copperweld, Inc.
     Nathan Anderson
     Vice President of Investor Relations
     Tel:   +1-931-433-0482
     Email: IR@fushicopperweld.com

[Press Release] Fushi Copperweld Joins Word Economic Forum Community of Global Growth Companies

18 Aug 2009 15:15:00 GMT

DALIAN, China, Aug. 18 /PRNewswire-Asia-FirstCall/ -- Fushi Copperweld, Inc., (the "Company" or "Fushi") (Nasdaq: FSIN - News), the leading global manufacturer and innovator of copper-clad bimetallic wire used in a variety of telecommunication, utility, transportation and other electrical applications, today announced that the Company became one of the newest members of the World Economic Forum's (WEF) Community of Global Growth Companies (GGC), a group of rapidly growing companies that are redefining the global economy.

"Fushi Copperweld is extremely proud to be nominated as a Member of the World Economic Forum's Community of Global Growth Companies," said Fu Li, Chairman and Chief Executive Officer of Fushi Copperweld. "Our growth has been very strong and we continue to have high expectations for the future. The Community of GGCs is an obvious next step forward in realizing our long standing goals of exploring and benefiting from the vast growth opportunities our products present us with around the globe."

Established at the 2007 Inaugural 'Annual Meeting of New Champions', also known as the 'Summer Davos', the Community of GGCs are a new breed of high- growth enterprises that are global in outlook and capable of reshaping the global business landscape. The membership is made up of the 500 foremost global growth companies and Fushi has fulfilled the criteria to become a GGC Member, namely:

    -- Established intent and capacity to build a global business
    -- Extremely strong growth rate (72.7% in 2008)
    -- Demonstrated leadership in shaping the future of their industry
    -- Exemplary reputation and executive leadership

Fushi plans on attending this year's 'Summer Davos', which will be held in Dalian, China, on 10-12 September 2009. The Meeting in Dalian, China, will bring together over 1,000 industry, government and thought leaders to debate and define the course needed to relaunch growth. Fushi expects the GGC Community to work as a platform for influencing future trends and technology development on a global scale. Fushi also expects to benefit from experiences of other GGC Members, especially those operating globally, developing recognized global brands and managing extremely rapid expansion.

About the World Economic Forum

The World Economic Forum is an independent international organization committed to improving the state of the world by engaging leaders in partnerships to shape global, regional and industry agendas.

Incorporated as a foundation in 1971, and based in Geneva, Switzerland, the World Economic Forum is impartial and not for-profit; it is tied to no political, partisan or national interests. (http://www.weforum.org )

About Fushi Copperweld, Inc.

Fushi Copperweld, Inc. through its wholly owned subsidiaries, Fushi International (Dalian) Bimetallic Cable Co, Ltd., and Copperweld Bimetallics, LLC, is the leading manufacturer and innovator of copper- clad bimetallic engineered conductor products used in the electrical, telecommunications, transportation, utilities and industrial industries. With extensive design and production capabilities and a long-standing dedication to customer service, Fushi Copperweld, Inc. is the preferred choice bimetallic products world-wide. For more information, visit: http://www.fushicopperwe... .

Safe Harbor Statement

    Fore more information, please contact:

     Nathan Anderson
     Vice President of Investor Relations
     Fushi Copperweld, Inc.
     Email: nanderson@fushicopperweld.com
     Tel:   +1-931-433-0482

     Judy Zhu
     IR Manager
     Email: jzhu@fushicopperweld.com
     Tel:   +1-931-433-0482

[Press Release] Fushi Copperweld Reports Second Quarter 2009 Financial Results

05 Aug 2009 14:17:00 GMT

DALIAN, China, Aug. 5 -- Fushi Copperweld, Inc. (Nasdaq: FSIN - News), the leading global manufacturer and innovator of copper-clad bimetallic wire used in a variety of telecommunication, utility, transportation and other electrical applications, today announced financial results for the second quarter ended June 30, 2009.

Second Quarter Highlights
-- GAAP EPS of $0.06
-- Adjusted Non-GAAP EPS of $0.25
-- Metric tons of volume shipped increased 9.5% compared to the second
quarter 2008
-- Significantly improved performance at Fayetteville; generated
approximately $0.5 million of net income in month of June
-- Expects to benefit from increased demand in coming quarters due to
strength in the utility and telecommunications markets as well as the
Chinese government's stimulus package
-- Successfully increased annual CCA capacity by 6,000 metric tons at
Dalian facility
-- Improved cash flows from operating activities by $9.1 million compared
to the second quarter 2008
-- Adjusted Non-GAAP EPS for 3Q 2009 projected to be $0.26 - $0.30

Revenues for the second quarter of 2009 decreased 22.8% to $48.3 million, down from $62.5 million in the prior year's quarter. The decrease was driven primarily by a decrease in average selling price (29.3%) partially offset by a 9.5% increase in metric tons sold. Revenues were $38.7 million at the Company's Dalian, China facility and revenues from the Fayetteville, TN and Telford, UK facilities combined accounted for $9.6 million. Volume at the Company's Dalian facility increased 25.0% as compared to the second quarter 2008 due to increased 3G related demand, increased government spending on basic infrastructure projects in China and continued expansion into the utility market. The Company believes that ongoing infrastructure projects resulting from the Chinese government's $586 billion stimulus package and the 3G network buildout will gain further traction, and expects that the Company will benefit more meaningfully from these initiatives in the coming quarters as funding is disbursed.

Gross profit in the second quarter of 2009 decreased 19.4% year over year to $13.5 million from $16.7 million in the second quarter of 2008. Gross margin increased to 27.9% from 26.8% in the same period of the prior year. Gross margin at the Company's Dalian, China facility decreased slightly from 31.7% to 31.0% in the second quarter of 2009. The gross margin at the Company's Fayetteville facility increased from 12.2% to 17.5% year over year mostly as a result of cost savings initiatives implemented by management, achieving the highest quarterly gross margin level at Fayetteville since the October 2007 acquisition of Copperweld Bimetallics.

Operating expenses in the second quarter of 2009 decreased 10.0% to $4.3 million, compared with $4.8 million in the second quarter of the prior year. This decrease was the result of management's successful implementation of cost saving initiatives. Included in this quarter's operating expenses were $0.9 of non-cash expenses related to non-factory depreciation of $0.4 million, amortization of intangible and deferred expense of $0.1 million and stock option expense of $0.3 million. On a percentage basis, operating expenses in the second quarter 2009 increased 120 basis points to 8.8% from 7.6% in the prior year's quarter, primarily a result of lower sales in the second quarter of 2008. Operating income decreased $2.8 million to $9.2 million, or 19.0% of revenue, compared to $12.0 million, or 19.1% of revenue in the second quarter in the prior year.

Profit before tax for Dalian was $10.4 million in the second quarter of 2009 and the loss for Fayetteville and Telford combined before tax was $0.2 million. The loss at the Fushi Copperweld parent company level was $8.0 million primarily due to interest expenses on the High Yield notes, stock-based compensation, changes in fair value of derivative liabilities related to the Convertible Notes conversion options, and warrants, as well as professional fees and outside service expenses. On a consolidated basis, profit before tax was $2.2 million and we recognized a net tax expense of $0.6 million, reflecting a 28% effective tax rate.

Fayetteville Parent
Dalian & Telford Company Consolidated
Profit (Loss)
before income tax 10,355,678 (173,642) (8,007,112) 2,174,924
Income tax
expense (credit) 1,350,540 -- (738,179) 612,361
Profit after
income tax 1,562,563

Net income on a GAAP basis for the second quarter of 2009 was $1.6 million, or $0.06 per diluted share, compared with $7.3 million, or $0.26 per diluted share, in the second quarter of 2008. Excluding the non-cash expenses related to changes in fair value of derivative liability and share-based compensation, adjusted non-GAAP net income was $7.1 million, or $0.25 per diluted share in the second quarter of 2009, compared to $7.6 million, or $0.26 per diluted share in the second quarter of 2008. Reconciliations of non-GAAP measures to GAAP net income and EPS are included at the end of this release.

During the quarter, the Company generated $4.5 million of cash flows from operations, which represented a $9.1 million increase over the same period in the previous year. The Company's cash position at the end of the second quarter was $49.9 million and the Company's debt position was $50.2 million compared to $49.7 million at December 31, 2008. To prepare for an anticipated increase in demand for its products the Company increased its inventory to $17.6 million from $7.0 million at December 31, 2008 and also continued to expand its China operations by investing $2.3 million in purchases of and advances for property and equipment.

Mr. Li Fu, Chairman and Chief Executive Officer of Fushi Copperweld, commented, "This was another successful quarter for the Company. Despite the global slowdown, we benefited from the initiatives management has implemented over the past few quarters. Our China operations remained strong and we are optimistic that our results will continue to improve as we realize further benefits from the Chinese government's stimulus package and 3G network infrastructure buildout. We have been prudently expanding our Chinese operations and believe we are well positioned to capitalize on the increasing demand. Our US operations significantly improved due in large part to an operational initiated and spearheaded by our COO, Dwight Berry. While we have not yet seen an increase in revenues at the Fayetteville facility, we believe we have dramatically improved the facility's cost structure and we will reap the rewards of our initiatives when the US economy begins to improve.''

''We also continue to believe that there are significant opportunities in the electrical utility market for bimetallics in China as stimulus packages increase national transmission and distribution capex spending. The hiring of Joe Longever, our Chief Commercial Officer, is a strong recent addition to our management team and creates an exciting new direction for our Asian sales team. Under Joe's leadership, we will aggressively implement a new sales strategy and develop markets in anticipation of the 8,200 metric tons of annual CCS capacity which will be brought online at our Dalian facility during the course of the coming quarters.''

Mr. Fu continued, "We continue to be optimistic about the future and believe that the fundamentals of our business remain strong and will further strengthen as infrastructure investments in China continue to grow while international economies make efforts to slow their declines and stabilize. I am confident in the ability of our excellent organization to take the necessary steps to respond to the opportunities brought on by favorable macro-economic conditions in China, generate strong profitability, and further expand our business in the markets in which we operate.''

Financial Expectations

In the 2009 third quarter, the Company expects adjusted fully diluted earnings per share before the impact of non-cash expense related to stock-based compensation and change in fair value of derivative liability related to conversion option and warrants between $0.26 and $0.30 based on an estimated weighted average diluted share count of approximately 29.2 million shares. This expectation is based on an effective tax rate at the consolidated level of 14%. The Company expects profitability to improve sequentially throughout the second half 2009 due to continued growth in demand for CCA-based telecom products, utility applications, increased profitability at the Fayetteville facility as a result of cost saving initiatives, and increased revenue from China's 3G infrastructure investments and orders relating to the $585 billion stimulus package. In preparation for expected future demand, the Company successfully completed the installation of an additional 6,000 metric tons of CCA at its Dalian facility in April, 2009. Furthermore, the Company also has plans to install a further 8,200 metric tons of annualized CCS cladding capacity online at its Dalian facility by the end of the first quarter 2010. The Company expects the first 4,100 metric tons of annualized CCS cladding capacity to be fully operational at its Dalian facility by the end of the third quarter 2009 and the remaining 4,100 metric to be operational during the course of first quarter 2010.

Accounting for derivative liability - conversion option and warrants

Effective January 1, 2009, the Company adopted the provisions of EITF Issue 07-5 "Determining Whether an Instrument (or Embedded Feature) Is Indexed to an Entity's Own Stock'', which is effective for financial statements for fiscal years beginning after December 15, 2008 and which replaced the previous guidance on this topic in EITF Issue 01-6. As a result, from January 1, 2009, the Company is required to separately account for the conversion option embedded in the Company's $5,000,000 Convertible Bonds as a derivative instrument liability, carried at fair value and marked-to-market each period, with changes in the fair value each period charged or credited to income. In addition, during the first quarter of 2009, the Company completed a private placement of its common stock and warrants. The warrants are also recorded as a derivative instrument liability, carried at fair value. In the second quarter of 2009, the Company recorded non-cash charges to income for changes in the fair value of these derivative liabilities of $5.3 million, or $0.19 per diluted share. There is no impact on periodic cash flows.

Reconciliation of Non-GAAP Financial Measures

To supplement our consolidated financial statements, which statements are prepared and presented in accordance with GAAP, we use EPS as adjusted for the impact of non-cash expenses related to stock-based compensation and the change in the fair value of derivative liabilities related to the conversion option in our outstanding Convertible Bonds and certain warrants. These Company-defined adjusted measures are being provided because management believes they are useful in analyzing the underlying operating performance of the business. These measures may be inconsistent with similar measures presented by other companies and should only be used in conjunction with our results reported according to accounting principles generally accepted in the United States. A reconciliation of earnings per share as reported and operating income as reported to adjusted non-GAAP earnings per share and adjusted non-GAAP operating income follows:

2009 Q2 2008 Q2

GAAP Net Income 1,562,700 7,280,846

Non-cash expense:
Change in fair value of derivative
liability - conversion option 4,583,809 --
Change in fair value of derivative
liability - warrants 688,876 --
Stock-based compensation 337,859 500,988
Total non-cash expense 5,610,544 500,988
Provision for income tax (114,872) (170,336)
Adjusted to Non-GAAP Net income 7,058,372 7,611,498

GAAP Earnings per share:
Basic 0.06 0.27
Diluted 0.06 0.25

Non-GAAP Earnings per share:
Basic 0.25 0.28
Diluted 0.25 0.26

Conference Call

The Company will conduct a conference call to discuss the second quarter 2009 results today, Wednesday, August 5, 2009, at 8:00 am ET. Listeners may access the call by dialing +1-866-223-7781. To listen to the live webcast of the event, please got to Fushi Copperweld's website at .http://www.sec.gov

For more information, please contact:

Nathan J. Anderson
Vice President of Investor Relations
Fushi Copperweld, Inc.
Email: IR@fushicopperweld.com
Tel: +1-931-433-0482

Judy Zhu
IR Manager
Fushi Copperweld, Inc.
Email: jzhu@fushicopperweld.com
Tel: +1-931-433-0482

(Financial Tables Follow)

FUSHI COPPERWELD, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME
FOR THE THREE MONTHS AND SIX MONTHS ENDED JUNE 30, 2009 AND 2008
(UNAUDITED)

Three months ended June 30, Six months ended June 30,
2009 2008 2009 2008
Unaudited Unaudited Unaudited Unaudited

REVENUES $48,301,545 $62,536,129 $83,558,081 $116,545,156

COST OF
GOODS SOLD 34,848,865 45,789,522 61,166,026 85,064,862

GROSS PROFIT 13,452,680 16,746,607 22,392,055 31,480,294

OPERATING
EXPENSE
Selling
expenses 1,086,414 1,258,050 2,288,561 2,050,961
General and
administrative
expenses 3,167,361 3,521,466 6,237,603 7,917,245
Total
operating
expense 4,253,775 4,779,516 8,526,164 9,968,206

INCOME FROM
OPERATIONS 9,198,905 11,967,091 13,865,891 21,512,088

OTHER INCOME
(EXPENSE)

Interest
income 83,004 192,458 166,621 352,821
Interest
expense (1,478,203) (3,805,067) (2,949,071) (5,585,536)
Gain (Loss)
on derivative
instrument (215,964) 186,022 (382,374) 355,190
Change in
derivative
liability -
Warrants (688,876) -- (752,114) --
Change in
derivative
liability -
conversion
option (4,583,809) -- (5,122,846) --
Other
(expense)
income (140,133) (52,875) (246,482) (108,002)
Registration
rights
penalty -- -- -- --
Total other
expense,
net (7,023,981) (3,479,462) (9,286,266) (4,985,527)

INCOME BEFORE
INCOME TAXES 2,174,924 8,487,629 4,579,625 16,526,561

Deferred
income tax
benefit (738,180) (389,892) (2,364,707) (389,892)
Current
income tax
expense 1,350,404 1,596,675 2,280,715 2,065,110

NET INCOME 1,562,700 7,280,846 4,663,617 14,851,343

OTHER
COMPREHENSIVE
INCOME
Unrealized
gain or
(loss) on
marketable
securities -- -- -- 22,301
Foreign
currency
translation
adjustment 433,866 4,308,352 39,958 12,163,352
Change in
fair value
of derivative
instrument (751,227) 4,377,975 (3,513,356) (731,505)

COMPREHENSIVE
INCOME $1,245,339 $15,967,173 $1,190,219 $26,305,491

NET INCOME PER
SHARE-BASIC $0.06 $0.27 $0.17 $0.55

BASIC WEIGHTED
AVERAGE NUMBER
OF SHARES 27,827,838 27,354,215 27,696,388 27,201,127

NET INCOME PER
SHARE-DILUTED $0.06 $0.25 $0.17 $0.51

DILUTED
WEIGHTED
AVERAGE NUMBER
OF SHARES 28,323,611 28,732,109 28,054,226 28,690,851

FUSHI COPPERWELD, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
AS OF JUNE 30, 2009 AND DECEMBER 31, 2008
A S S E T S

June 30, December 31,
2009 2008
Unaudited
CURRENT ASSETS:

Cash $49,933,562 $65,611,770
Restricted cash -- 1,000,000
Accounts receivable, trade, net of
allowance of bad debt of $290,338
and $318,529 as of March 31, 2009 and
December 31,2008, respectively 59,630,680 49,782,548
Inventories 17,600,578 6,977,852
Notes receivables 147,599 171,300
Other receivables and prepaid expenses 844,158 869,973
Advances to suppliers 8,002,246 20,261,585
Deposit in derivative hedge 1,000,000 1,000,000
Prepaid taxes -- 670,805

Total current assets 137,158,823 146,345,833

PLANT AND EQUIPMENT, net 117,683,413 119,761,027

OTHER ASSETS:
Advances to suppliers, noncurrent 6,493,174 4,022,879
Notes receivables, noncurrent 759,106 799,106
Intangible assets, net of accumulated
amortization 12,155,202 12,406,920
Deferred loan expense, net 2,772,825 3,317,725
Deferred tax assets 10,168,733 7,804,027
Total other assets 32,349,040 28,350,657

Total assets $287,191,276 $294,457,517

CURRENT LIABILITIES:
Revolver line of credit $4,489,366 $4,712,075
Accounts payable, trade 5,126,855 7,204,156
Notes payable, current 10,000,000 5,000,000
Short-term bank loans -- 17,588,400
Taxes payable 1,390,026 --
Other payables and accrued liabilities 9,004,077 4,751,460
Customer deposits 80,652 542,540
Cross currency hedge payable 372,118 104,324

Total current liabilities 30,463,094 39,902,955

LONG TERM LIABILITIES:
Long term bank loans, net of current
portion -- --
Derivative liability - conversion
option 6,351,413 --
Derivative liability - warrants -- --
Notes payable, noncurrent 35,729,651 40,000,000
Fair value of derivative instrument 7,890,432 4,377,076
Total long term liabilities 49,971,496 44,377,076

Total liabilities 80,434,590 84,280,031

COMMITMENTS AND CONTINGENCIES -- 7,197,794

SHAREHOLDERS' EQUITY:
Preferred stock,$0.001 par
value, 5,000,000 shares
authorized, none issued or
outstanding -- --
Common stock,$0.006 par
value, 100,000,000
shares authorized,
March 31, 2009: 27,899,034 shares
issued and 27,799,034 outstanding
December 31, 2008: 27,499,034 shares
issued and 27,399,034 outstanding 167,405 164,395
Restricted common stock in
escrow 13,200 600
Additional paid in capital 101,020,802 91,172,890
Common stock subscription
receivable (5,919,597) --
Statutory reserves 13,988,671 12,316,147
Retained earnings 80,247,101 78,613,158
Accumulated other
comprehensive income 17,239,104 20,712,502

Total shareholders' equity 206,756,686 202,979,692

Total liabilities and
shareholders' equity $287,191,276 $294,457,517

FUSHI COPPERWELD, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED June 30, 2009 AND 2008
(UNAUDITED)

2009 2008
CASH FLOWS FROM OPERATING ACTIVITIES:

Net income $4,663,617 $14,851,343
Adjustments to reconcile net income
used in operating activities:
Deferred tax assets (2,364,707) (1,188,895)
Bad debt expenses 27,793 379,581
Reserve for obsolete inventory 23,272 185,749
Inventory value write off 179,654
Depreciation 4,612,405 3,026,421
PPE disposal loss/(gain) 117,430
Amortization of intangibles 238,283 158,651
Amortization of loan commission 544,900 2,253,306
Interest penalty -- 710,544
Amortization of stock option
compensation 928,727 914,083
Change in derivative liability -
conversion option 5,122,846 --
Change in derivative liability -
Warrants 752,114 --
Investment loss on marketable
securities -- 16,158
Gain on derivative instrument 382,374 (355,189)
Change in operating assets and
liabilities:
Restricted Cash -- --
Accounts receivable (9,906,380) (19,191,506)
Inventories (10,699,401) (13,000,865)
Other receivables and prepayments 102,867 549,790
Notes Receivables 63,638 320,603

Advances to suppliers - current 12,233,042 (2,697,002)
Accounts payable (2,091,085) 7,347,146
Other payables and accrued
liabilities (2,009,752) (1,260,185)
Customer deposits (467,587) 621,290
Taxes payable 2,062,180 1,779,587

Net cash used in operating
activities 4,516,230 (4,579,390)

CASH FLOWS FROM INVESTING ACTIVITIES:
Marketable securities -- 2,983,842
Payment for investment deposit -- --
Payments for derivative instrument (114,580) --
Proceeds from derivative instrument -- 738,376
Proceeds from sale of PPE 424,444
Purchase of land use right -- (1,687,468)
Advance for purchase of land use
right -- --
Purchases of property and equipment (3,135,693) (13,600,999)
Advances for purchase of equipment (2,473,841) (3,148,802)
Net cash (used in) provided by in
investing activities (5,299,670) (14,715,051)

CASH FLOWS FROM FINANCING ACTIVITIES:
Loan from shareholder -- --
Repayments to shareholders -- --
Restricted cash in escrow -- --
Change in restricted cash 1,000,000 --
Advance to shareholder -- --
Due to related companies -- --
Due from related companies -- --
Net borrowings on revolver line (222,709) 1,763,772
Proceeds from bank loans -- 16,908,000
Payments on bank loans (17,553,600) (17,268,032)
Net proceeds from stock issuance in
private placement -- --
Net proceeds from long term notes -- --
Issuance of common stock 1,920,000
Proceeds from exercise of stock
warrants -- --
Additional paid-in capital
Net cash provided by financing
activities (14,856,309) 1,403,740

EFFECT OF EXCHANGE RATE ON CASH (38,459) 4,837,022

DECREASE IN CASH (15,678,207) (13,053,679)

CASH, beginning of period 65,611,770 79,914,758

CASH, end of period $49,933,563 $66,861,079

[Press Release] Fushi Copperweld Announces Reporting Date for Second Quarter 09 Financial Resuts

30 Jul 2009 15:23:00 GMT

DALIAN, China, July 30 -- Fushi Copperweld, Inc. (the "Company") (Nasdaq: FSIN - News), the leading global manufacturer and innovator of copper-clad bimetallic wire used in a variety of telecommunication, utility, transportation and other electrical applications, today announced that the Company will report its second quarter 2009 financial results before the market opens on Wednesday, August 5, 2009.

Management will host a conference call at 8:00am ET on Wednesday, August 5.

Listeners may access the call by dialing +1-866-223-7781. To listen to the live webcast of the event, please go to Fushi Copperweld's website at http://www.fushicopperwe... . Please go to the website 15 minutes early to download and install any necessary audio software.

A replay of the call will be available from August 5, 2009 to August 15, 2009. Listeners may access the replay by dialing +1-800-408-3053; password: 3748630.

About Fushi Copperweld, Inc.

Fushi Copperweld, Inc. through its wholly owned subsidiaries, Fushi International (Dalian) Bimetallic Cable Co, Ltd., and Copperweld Bimetallics, LLC, is the leading manufacturer and innovator of copper cladded bi-metallic engineered conductor products used in the electrical, telecommunications, transportation, utilities and industrial industries. With extensive design and production capabilities and a long-standing dedication to customer service, Fushi Copperweld, Inc. is the preferred choice bi-metallic products world-wide. For more information, visit: http://www.sec.gov .

For more information, please contact:

Nathan Anderson
Vice President of Investor Relations
Fushi Copperweld, Inc.
Email: IR@fushicopperweld.com
Tel: +1-931-433-0482

[Press Release] Fushi Copperweld Appoints Joseph Longever as Chief Commercial Officer

16 Jul 2009 13:28:00 GMT

DALIAN, China, July 16 -- Fushi Copperweld, Inc., (the "Company") (Nasdaq: FSIN - News), the leading global manufacturer and innovator of copper-clad bimetallic wire used in a variety of telecommunication, utility, transportation and other electrical applications, today announced the hiring of Joseph J. Longever to the newly created position of Chief Commercial Officer, effective as of July 13, 2009. In this role, Mr. Longever will be responsible for developing the global commercial strategy for bimetallic products, with a specific focus on managing and progressing the increasing level of commercial interest in Fushi Copperweld's bimetallic products from customers in the electrical utility and transportation markets.

Mr. Longever has more than 25 years of bimetallic products experience and over 29 years of experience in sales and manufacturing management. Prior to joining the Company, Mr. Longever ran an independent consulting service which he founded in 2007. The consulting service, in collaboration with its clients' strategic initiatives, directed all global activity including sales, marketing, supply chain development and management for a very diverse group of clients.

From 1999 to 2007 Mr. Longever held various Senior Management, Sales, Marketing and Operation positions within Copperweld Bimetallics ("Copperweld"), the Company's U.S. subsidiary, including Vice President and Chief Operating Officer. In his tenure with Copperweld, Mr. Longever played a central role in managing the operations and strategy of the Company with specific focus on global sales and corporate strategy. Among the key initiatives he led were the reorganization and redeployment of global sales assets during the 2001 telecommunications meltdown when Copperweld saw 85% of its revenues and profits derived from this market. As a result, Copperweld began to produce a product that served an alternative market segment, including new product applications, which generated new sales volume recovering approximately 30% of lost revenue while improving margins by 10%.

"We are extremely pleased to add an individual of Joe's caliber to our management team," said Fu Li, Chairman and CEO at Fushi Copperweld. "Joe is very familiar with our operations and has a proven track record of developing markets for bimetallic products in a wide range of applications throughout the world. Joe's depth of experience in the bimetallic industry and strong leadership skills make him ideally suited to lead our global commercialization efforts and having him on board will further strengthen the Fushi Copperweld leadership team."

Mr. Longever commented, "Fushi Copperweld has always been at the forefront of bimetallic innovation and is a well-positioned leader in the bimetallics industry. With its industry leading technologies, unique products, financial strength and strong market presence, Fushi Copperweld's growth opportunities are second to none and I am thrilled to be returning at such a transformative time for our businesses across the globe."

About Fushi Copperweld, Inc.

Fushi Copperweld, Inc. through its wholly owned subsidiaries, Fushi International (Dalian) Bimetallic Cable Co, Ltd., and Copperweld Bimetallics, LLC, is the leading manufacturer and innovator of copper-clad bi-metallic engineered conductor products used in the electrical, telecommunications, transportation, utilities and industrial industries. With extensive design and production capabilities and a long-standing dedication to customer service, Fushi Copperweld, Inc. is the preferred choice bi-metallic products world-wide. For more information, visit: http://www.fushicopperwe... .

Safe Harbor Statement

For more information, please contact:

Nathan Anderson
Vice President of Investor Relations
Fushi Copperweld, Inc.
Email: IR@fushicopperweld.com
Tel: +1-931-433-0482