Acquisition

In the first quarter of 2011, a subsidiary of H&H acquired certain assets and assumed certain liabilities of Tiger Claw, Inc., a company that among other businesses, developed and manufactured hidden fastening systems for deck construction. The initial purchase price of $8.8 million was subsequently adjusted by $0.3 million in the fourth quarter of 2011, resulting in a final purchase price of $8.5 million. The purchase price was paid in cash. The assets acquired included, among other things, machinery, equipment, inventories of raw materials, work-in-process and finished products, certain contracts, accounts receivable and intellectual property rights, all as related to the acquired business and as provided in the Asset Purchase Agreement. The results of operations of the acquired business are reported as a product line within the Company’s Engineered Materials segment. HNH believes this acquisition enhances its product offerings of fastening systems for deck construction.

If the acquisition had taken place as of January 1, 2010 instead of during the first quarter of 2011, the unaudited proforma statement of operations for the Company would have been as follows:



	Three Months Ended
(in thousands except per share)	March 31, 2011
Net sales	$	155,001
Loss from continuing operations before tax	$	(249	)
Loss from continuing operations, net of tax	$	(1,255	)
Loss from continuing operations, net of tax, per share	$	(0.10	)