MINNEAPOLIS — July 23, 2002 — PW Eagle, Inc. (Nasdaq-NMS: “PWEI”) today reported its financial results for the three months and six months ended June 30, 2002. A summary of the unaudited results for the second quarter and for the six months ending June 30, 2002 and 2001 is set forth in the following table:

Income Statement Information

(In thousands, except for per share amounts)

William H. Spell, PW Eagle Chief Executive Officer, stated, “When we announced our first quarter results, we indicated that the stronger economy and stronger demand for PVC resin and pipe that we saw in the first quarter would generate much better financial results in the second quarter. We are extremely pleased to report that we experienced excellent operating results for the second quarter. Our gross margins and operating profits have improved significantly reflecting the impact of the strengthening economy and the increased demand for PVC resin and pipe. While pipe prices for the second quarter were 5% lower than the same period last year, these prices increased 21% over prices in the first quarter of this year. Pounds of pipe sold increased 10% in the second quarter and 15% for the first six months as compared to the same periods in 2001. We continue to be encouraged by the improvement in the overall economy and the PVC resin markets, and the effect that it has and will have on our business.”

The Gross Domestic Product (GDP) directly affects the PVC resin industry and the PVC pipe industry, and we recognize that our business is tied to economic cycles. GDP dropped 1.3% in the third quarter of 2001 and grew only 1.7% in the fourth quarter. However, GDP grew 6.1% in the first quarter of 2002 and was recently estimated to have grown 2.1% in the second quarter of 2002. Because PVC resin producers and pipe producers began 2002 with low finished goods inventories and GDP has improved, our business, and we believe the PVC pipe industry, has experienced a significant increase in demand during the first half of 2002 compared to the same period last year.

We believe that some of the demand for PVC pipe during the second quarter was the result of our customers increasing their inventory levels. As a result, we also believe that our customers' inventories are at a level that they believe to be adequate. Consequently, we do not expect shipping volumes to be as strong for the balance of the year; however, assuming GDP continues to be strong in the second half of 2002, we believe the demand for PVC resin and PVC pipe will be in balance with the supply and that our margins will continue to be strong.

Demand for PVC resin is strong and resin producers have implemented an additional two-cent per pound price increase for May and a four-cent per pound price increase for June. In addition, they have announced a two-cent per pound price increase for July and a two-cent per pound price increase for September. PW Eagle and the PVC pipe industry have implemented and announced several pipe price increases in response to these resin price increases.

William Spell concluded “A stronger economy, strong demand for PVC resin and PVC pipe and rising product prices have enabled PW Eagle to generate significantly improved financial results in the second quarter of this year. A continued strong economy with the supply of PVC resin and PVC pipe being in balance with demand would result in continued strong financial performance for the balance of the year. However, given the uncertainties of the economy, we will continue to manage the business in a conservative manner.”

Second Quarter 2002 Webcast & Conference Call

PW Eagle will hold its second quarter 2002 webcast and conference call on Wednesday, July 24, 2002 at 11:00 Central Time to discuss second quarter 2002 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 call telephone number is (800) 946-0720. Please use 776144 as the confirmation code to access the call. Please call five to ten minutes before the beginning of the conference call.

INFORMATION AND STATEMENTS IN THIS PRESS RELEASE MAY CONTAIN 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 regarding the Company’s beliefs and expectations that: (i) some of the demand for PVC pipe during the second quarter was the result of our customers increasing their inventory levels; (ii) our customers' inventories are at a level that they believe to be adequate; (iii) assuming GDP continues to be strong in the second half of 2002, the demand for PVC resin and PVC pipe will be in balance with the supply and margins will continue to be strong; and (iv) the demand for PVC resin is strong are forward-looking statements made under the safe harbor provisions of the Private Securities Litigation Reform Act, In addition, Mr. William H. Spell’s comment that a continued strong economy with the supply of PVC resin and PVC pipe being in balance would result in continued strong financial performance for the balance of the year is also a forward-looking statement. These statements involve known and unknown risks and uncertainties that may cause the actual results to differ materially from those expected and forecasted in this press release. Actual results could differ as a result of: (i) the failure of the Gross Domestic Product to grow; (ii) a further slowdown of economic growth in the United States, particularly west of the Mississippi; (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; (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; (vii) adverse weather conditions; (viii) an oversupply of pipe inventory and (ix) other risks described from time to time in our periodic reports.

About the Company

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.”

- financials follow -

PW EAGLE, INC.
CONDENSED STATEMENTS OF OPERATIONS (Unaudited)
(In thousands, except per share amounts)

PW EAGLE, INC.
CONDENSED BALANCE SHEETS
(In thousands, except for shares and per share amounts)

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