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.