MINNEAPOLIS – March 4, 2002 — PW Eagle, Inc. (Nasdaq-NMS: "PWEI") today reported its financial results for the three months and full year ended December 31, 2001. A summary of the unaudited results for the fourth quarter and for the year ending December 31, 2001 and 2000 is set forth in the following table:

Income Statement Information

(In thousands, except for per share amounts)

	Three months ended December 31,		Year ended December 31,
	2001	2000	2001	2000
Net sales	$48,312	$59,009	$246,130	$343,974
Gross profit	$2,511	$209	$26,471	$87,358
Net income (loss)	$(5,641)	$(8,706)	$(12,856)	$18,218
Basic earnings (loss) per share	$(0.84)	$(1.10)	$(1.80)	$2.34
Diluted earnings (loss) per share	$(0.84)	$(1.10)	$(1.80)	$1.72
EBITDA	$(2,725)	$(8,475)	$1,453	$51,862

Included in the reported net loss for the three months and year ended December 31, 2001 is a non-cash inventory writedown with a negative net after tax impact of $1.3 million and a non-cash asset writedown with a negative net after tax impact of $255 thousand. The two writedowns have an approximate impact of $(.24) and $(.22) on diluted earnings (loss) per share for the respective periods and reduced EBITDA for the three months and year ended December 31, 2001 by approximately $2.1 million.

William H. Spell, PW Eagle CEO, stated: "While we are not pleased with the our 2001 financial performance, we recognize that our business is tied to economic cycles. A weak overall economy with negligible growth in GDP resulted in continued reduced demand in our markets and a reduction in price for our products. Reduced product prices resulted in depressed gross margins as well as a reduction in net sales as compared to the prior year. However, we are encouraged by our fourth quarter performance which is an improvement over the previous year’s fourth quarter ended December 31, 2000. These improvements are largely the result of cost reduction measures implemented by the Company in the third quarter of 2001 and some improvement in GDP and the economy in the fourth quarter of 2001."

In a previous press release the Company announced that it had entered into revised loan agreements with its senior and subordinated lenders, completed a real estate sale and leaseback transaction with certain of its properties and sold its Hillsboro, Oregon facility which it had closed earlier. As a result of these transactions, the Company has eliminated all defaults under all of its loan agreements and dramatically reduced its fixed charges (principal, interest, taxes and capital expenditures). In November 2001, PW Eagle announced that it was in default of certain covenants under its loan agreements and that its goal was to reduce its annual fixed charges to a level that would allow the Company to pay all of its fixed charges, even should the unfavorable economic conditions that existed in 2001 continue. The Company believes that this series of transactions accomplishes that goal.

Fourth Quarter 2001 Webcast & Conference Call

PW Eagle will hold its fourth quarter webcast and conference call on Wednesday, March 6, 2002 at 11 a.m. Central Time to discuss the fourth quarter and 2001 results. The conference call will be available live on the Internet at www.pweagleinc.com. The call will also be archived at that location for one week following its original webcast. The conference telephone number is 1-800-946-0705, use 464267 as the confirmation code to access the call.

PW Eagle, Inc. is a leading extruder of PVC pipe and polyethylene tubing products. The Company operates eight manufacturing facilities in the midwestern and western United States. PW Eagle’s common stock is traded on the Nasdaq National Market under the symbol "PWEI".

THIS PRESS RELEASE CONTAINS FORWARD-LOOKING INFORMATION AND ACTUAL RESULTS MAY DIFFER

Statements that PW Eagle, Inc. may publish, including those in this announcement that are not strictly historical are "forward looking" statements made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Statements made in this press release, including those made by William H. Spell, regarding the Company’s belief that the transactions have reduced the Company’s fixed charges to a level where it will be able to meet its fixed charges even if the unfavorable economic conditions that it faced in 2001 continued indefinitely is a "forward looking" statement which involves known and unknown risks and uncertainties that may cause the actual results to differ materially from those expected and stated in this announcement. Actual results could differ if the Company was required to operate in the unfavorable economic conditions that existed in 2001 for a full fiscal year. In addition, actual results could differ as a result of: (i) a further slowdown in the United States economy, particularly west of the Mississippi; (ii) the failure of the Gross Domestic Product to grow beyond its 2001 level; (iii) an increase in interest rates; (iv) a decline in the construction of commercial and residential building; (v) a decline in our raw material prices; and (vi) a greater supply of PVC and PE pipe than market demand for such products caused by cyclical fluctuations in the supply and demand for pipe. It is not possible to foresee or identify all factors that could cause actual results to differ from expected or historical results. As such, you should not consider any list of such factors to be an exhaustive statement of all risks, uncertainties or potential inaccurate assumptions. We undertake no obligation to update "forward-looking" statements.

PW EAGLE, INC.

CONDENSED STATEMENTS OF OPERATIONS (Unaudited)

(In thousands, except per share amounts)

		Three months ended Dec. 31,		Year ended Dec. 31,
		2001	2000	2001	2000
NET SALES		$48,312	$59,009	$246,130	$343,974
COST OF GOODS SOLD		45,801	58,800	219,659	256,616
Gross profit		2,511	209	26,471	87,358
OPERATING EXPENSES:
Selling expenses		5,529	5,905	24,725	28,168
General and administrative expenses		2,416	2,960	8,612	13,290
Nonrecurring items		(18)	(30)	1,167	(195)
		7,927	8,835	34,504	41,263
OPERATING INCOME (LOSS)		(5,416)	(8,626)	(8,033)	46,095
OTHER EXPENSES (INCOME):
Interest expense		3,029	3,022	11,775	13,655
Other income, net		48	(2)	377	(249)
Nonrecurring items		-	2,145	-	2,845
		3,077	5,165	12,152	16,251
INCOME (LOSS) BEFORE INCOME TAXES		(8,493)	(13,791)	(20,185)	29,844
INCOME TAX EXPENSE (BENEFIT)		(2,852)	(5,085)	(7,329)	11,626
NET INCOME (LOSS)		$(5,641)	$(8,706)	$(12,856)	$18,218
NET INCOME (LOSS) PER COMMON SHARE:
Basic		$(0.84)	$(1.10)	$(1.80)	$2.34
Diluted		$(0.84)	$(1.10)	$(1.80)	$1.72
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
Basic		6,704	7,883	7,139	7,778
Diluted		6,704	7,883	7,139	10,592

PW EAGLE, INC.

CONDENSED BALANCE SHEETS

(In thousands, except for shares and per share amounts)

ASSETS	Dec. 31, 2001	Dec. 31, 2000
CURRENT ASSETS:
Cash and cash equivalents	$ 624	$ 816
Accounts receivable, net	12,918	18,246
Inventories	33,390	44,391
Deferred income taxes	2,033	3,491
Income tax receivable	4,156	3,376
Other	280	291
Total current assets	53,401	70,611
Property and equipment, net	67,827	76,589
OTHER ASSETS:
Deferred financing costs, net	3,349	3,940
Assets held for sale	2,417	655
Goodwill, less accumulated amortization of $817 and $705, respectively	3,651	3,763
Deferred income taxes	3,465	-
Other	3,300	2,821
	16,182	11,179
TOTAL ASSETS	$ 137,410	$ 158,379
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Borrowings under revolving credit facility	$ 27,996	$ 16,458
Current maturities of long-term debt	4,889	10,408
Accounts payable	16,145	7,839
Accrued liabilities	8,066	16,447
?Total current liabilities	57,096	51,152
OTHER LONG-TERM LIABILITIES	3,625	2,713
DEFERRED INCOME TAXES	-	1,080
LONG-TERM DEBT, less current maturities	22,977	27,500
SENIOR SUBORDINATED DEBT	29,453	28,068
??Total liabilities	113,151	110,513
COMMITMENTS AND CONTINGENCIES
STOCK WARRANTS	-	5,887
STOCKHOLDERS’ EQUITY:
Series A preferred stock, 7% cumulative dividend; convertible; $2 per Share liquidation preference; no par value; 2,000,000 shares authorized; issued and outstanding none and 18,750 shares, respectively	-	-
Undesignated stock, $.01 par value; 14,490,000 shares authorized; None issued and outstanding	-	-
Stock warrants	5,887	-
Common stock, $.01 par value; 30,000,000 shares authorized; issued and outstanding 6,886,625 and 8,069,675 shares, respectively	69	81
Class B Common stock, $.01 par value; 3,500,000 shares authorized; none issued and outstanding	-	-
Additional paid-in capital	29,757	40,521
Unearned compensation	(434)	(473)
Notes receivable from officers and employees on common stock Purchases	(1,039)	(1,181)
Accumulated other comprehensive loss	(156)	-
Retained earnings/(accumulated deficit)	(9,825)	3,031
Total stockholders’ equity	24,259	41,979
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$ 137,410	$ 158,379