Contact: Courtney Leeser
Communications Coordinator
(217) 221-4489

October 27, 2005

TITAN INTERNATIONAL, INC. REPORTS THIRD QUARTER EARNINGS

Third quarter highlights:

•    Net sales remained over $100 million in Titan’s 2005 third quarter, despite the natural disasters and dry weather that occurred in the United States during the period, which impacted product demand. The net sales of $102.7 million this quarter compare to $116.5 million in the third quarter of last year.

•    Despite the difficult conditions in the period, adjusted income from operations, not including idled asset depreciation, remained a positive $3.6 million in the quarter. This compares to $9.9 million in third quarter 2004.

•     Interest expense for the third quarter was $1.8 million, a 54% decrease as compared to the $3.8 million recorded in the third quarter of 2004.

•     Debt declined $9.1 million in the quarter to a balance of $102.0 million, the lowest debt level since Titan’s first year as a public company in 1993. This debt includes $81.2 million in convertible bonds. 

Statement of Chief Executive Officer:

“Third quarter is always the toughest quarter due to Titan’s various shut downs, and usually during the third quarter most OEMs adjust their inventory levels,” said Titan Chairman and CEO Maurice Taylor Jr. “There’s no question costs have risen further than we anticipated. In addition to working on closing various acquisitions, management, starting with myself, must keep a keen focus on our costs. We believe there will be some movement up and down in our markets over the next few months. Our business has been good, and we in management will continue our focus to drive product costs down.”

Year-to-date highlights:

•     Year-to-date net sales increased $18.3 million, or 5%, to $373.6 million when compared to 2004 year-to-date net sales of $355.2 million, excluding Titan Europe. Recorded 2004 year-to-date net sales were $404.7 million, including $49.4 million of Titan Europe sales.

•     Basic earnings per share year-to-date were $.94, a 38% increase over the $.68 per share recorded for the nine months ended September 30, 2004.

•     Fully diluted earnings per share year-to-date was $.83, a 28% increase over the $.65 per share recorded for the nine months ended September 30, 2004.

Financial overview:

Titan International, Inc. reported net sales of $102.7 million for third quarter of 2005, a reduction of 12% compared to $116.5 million for the previous year’s quarter.  Net sales for the first three quarters of 2005 were $373.6 million, up from $355.2 million for the first three quarters of 2004 on a pro forma basis, adjusted for the sale of Titan Europe in April 2004.  Reported sales for the first three quarters of 2004 were $404.7 million.

Adjusted income from operations (not including idled assets depreciation of $1.3 million in the quarter and $4.0 million year-to-date) was $3.6 million and $33.3 million for the quarter and nine months ended September 30, 2005, respectively.  These results compare to last year’s $9.9 million and $34.3 million, for the quarter and year-to-date. (See Idled assets marketed for sale depreciation.)

Titan reduced debt by $9.1 million, or 8%, in the quarter, to a balance of $102.0 million. The balance on the company’s revolving credit facility was $10.5 million on September 30, 2005, down from $19.5 million on June 30, 2005.

The income tax benefit was $0.8 million and $0 for the three and nine months ending September 30, 2005.  Based on the company’s estimated year-end tax rate, the company provided for income taxes at an effective rate of 0% for the nine months ending September 30, 2005.

Net income for the third quarter was $1.2 million, as compared to $1.5 million in the third quarter of 2004. Net income for the nine months ended September 30, 2005 and 2004 was $16.6 million and $12.4 million respectively.

Basic earnings per share were $.06 for the third quarter 2005 and $.09 per share for the third quarter of 2004. Year-to-date 2005 basic earnings per share were $.94, compared to $.68 per share for the year-to-date 2004.

Fully diluted earnings per share were $.06 for the third quarter 2005 and $.09 per share for the third quarter of 2004. Year-to-date 2005 fully diluted earnings per share were $.83, compared to $.65 per share for the year-to-date 2004.

Idled assets marketed for sale depreciation:

Titan recorded depreciation for idled assets marketed for sale of $1.3 million for third quarter 2005, and $4.0 million year-to-date 2005, as compared to no expense recorded for these time periods during 2004.

Acquisition update:

Titan Tire Corporation, a subsidiary of the Company, entered into a definitive agreement to purchase the assets of The Goodyear Tire & Rubber Company’s North American farm tire business on February 28, 2005. The closing is subject to certain conditions. At the closing, Titan will purchase the assets of Goodyear’s farm tire business for approximately $100 million.

On July 26, 2005, Titan Tire Corporation received approval from the International leadership of the United Steelworkers of America (USWA) to begin negotiations with USWA Local 745 in Freeport, Illinois. A contract must be approved by the USWA membership in Freeport for the sale to Titan to be finalized. The termination date of the agreement has been extended to November 1, 2005.

Cash merger offer:

On October 11, 2005, the Company received an offer from One Equity Partners LLC (One Equity), a private equity affiliate of JPMorgan Chase & Co., indicating One Equity’s interest in acquiring Titan International, Inc., in a cash merger for $18.00 per share of Titan common stock. A Special Committee of the Board of Directors of Titan was formed to pursue discussions with One Equity. The offer is subject to reaching a definitive agreement with the customary conditions, due diligence, financing, both One Equity and Titan board approvals and Titan’s stockholders’ approval. There can be no assurance that any agreement will be completed. Mr. Richard M. Cashin Jr., one of Titan’s directors, is also the Managing Partner of One Equity. Mr. Maurice M. Taylor Jr., Chief Executive Officer and Chairman of the Board of Directors of Titan, is expected to participate with One Equity Partners. Additionally, Mr. Mitchell I. Quain and Mr. Anthony L. Soave, also directors of Titan, may participate.