PW EAGLE REPORTS RECORD 3Q EARNINGS

Income Statement Information

(In thousands, except for per share amounts)

Included in reported net income for the three months and nine months ended September 30, 1999, is a $2,100,000 and $4,100,000 benefit, respectively, resulting from the valuation allowance reversal associated with the Company’s deferred tax assets, representing approximately $.27 and $.42 reported diluted earnings per share for the respective interim three month and nine month 1999 periods.

The pro forma financial information summarized below assumes that the acquisition of PWPipe took place on January 1, 1998, consistent with pro forma information included in the notes to the Company’s 1999 financial statements in its March 2000 Form 10-K filing and includes certain adjustments to reflect what the Company will experience on an ongoing basis. A summary of the pro forma financial information for the three-month and nine-month periods ending September 30, 1999, is set forth in the following table:

(In thousands, except for per share amounts)

Included in the unaudited historical and pro forma financial information for the three and nine months ending September 30, 1999, are certain nonrecurring charges. These nonrecurring items reduce historical and pro forma net income for the three and nine month periods ending September 30, 1999, by $0.9 million and $1.7 million, respectively. Absent these nonrecurring charges, pro forma basic and diluted earnings per share would be approximately $1.10 and $0.83, and $2.00 and $1.51 for the three months and nine months ending September 30, 1999, respectively.

William H. Spell, CEO, stated: "We are pleased with the record operating results for the third quarter and the first nine months of the year. During the third quarter, we experienced a general slowing of the economy and a reduction of both resin and pipe prices, which resulted in a decrease in demand and our gross margins compared to the first half of this year. However, we continue to experience the positive effects of the significant capacity and process improvement investments that we have made over the last several years, and the synergies that we are recognizing from the integration of the Eagle Pacific and PWPipe businesses."

"We have seen a softening in demand in most our PVC product lines as PVC resin and PVC pipe prices have decreased during the same period. We believe the reduction in short -term demand is due in part to our distributors’ reluctance to purchase pipe for inventory while pipe prices are declining. We also believe the general slowing of the economy has reduced the demand for pipe. We believe that demand for PVC pipe will return to normal levels when PVC resin and PVC pipe prices stabilize and/or begin to increase. We believe that our industry is becoming more rational and is less likely to experience the large cyclical swings that it has experienced in the past. In addition, our long-term strategy of having both geographical and product line diversity should moderate the cyclical swings. Our belief is based in part on the results of the last twelve months."

Spell concluded, “The supply of PVC resin is currently greater than demand. As a result industry experts predict further decreases in resin prices for the balance of the year. The combination of decreasing resin prices and a general slowdown in the economy will likely result in a reduction in demand for pipe and a further reduction in our gross margin for the remainder of the year.”

PW Eagle will hold its third-quarter conference call on October 30, 2000, at 11 a.m. (Central Time) to discuss the third-quarter and nine-month results. The conference call will be available live on the Internet at www.pweagleinc.com, or www.streetevents.com (for individual investors, once at the StreetEvents site, click on the small “individual investor center” link, then search for the ticker symbol PWEI, then click on the conference call audio). The call will also be available for one week following its original webcast.

PW Eagle, Inc. is a leading extruder of PVC pipe and polyethylene pipe and tubing products. The Company operates ten 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.”

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 by William H. Spell regarding the Company’s beliefs that (i) its industry is becoming more rational and is less likely to experience the large cyclical swings that it has experienced in the past, (ii) the Company’s long-term strategy of having both geographical and product line diversity should also moderate the cyclical swings, (iii) demand for PVC pipe will return to normal levels when PVC resin and PVC pipe prices stabilize and/or begin to increase are forward looking statements, and (iv) the combination of decreasing resin prices and a general slowdown in the economy will likely result in a reduction in demand for pipe and a further reduction in our gross margin for the remainder of the year. Forward-looking statements involve known and unknown risks and uncertainties that may cause results to differ materially from those expected and stated in this announcement. The Company’s actual results could differ materially from those anticipated in the forward looking statements as a result of changes in demand for the Company’s products, a slow down in the economy, higher interest rates, fluctuations in resin prices and other risks described from time to time in PW Eagle, Inc.’s SEC filings, including quarterly reports on Form 10-Q and annual reports on Form 10-K.