SUBSIDIARY GUARANTOR FINANCIAL INFORMATION

The Company's 5.625% convertible senior subordinated notes (convertible notes) are guaranteed by the following 100% owned subsidiaries of the Company: Titan Tire Corporation, Titan Tire Corporation of Bryan, Titan Tire Corporation of Freeport, Titan Tire Corporation of Texas, Titan Wheel Corporation of Illinois, and Titan Wheel Corporation of Virginia. The note guarantees are full and unconditional, joint and several obligations of the guarantors. The guarantees of the guarantor subsidiaries are subject to release in limited circumstances only upon the occurrence of certain customary conditions. The following condensed consolidating financial statements are presented using the equity method of accounting. The Company has revised the guarantor financial statements for periods prior to 2011 to reflect a change in the guarantors of the Company's convertible notes. The guarantors for the convertible notes were previously tied to the guarantors of the Company's 8% senior unsecured notes which were satisfied and discharged in the first quarter of 2011. After these notes were satisfied and discharged, the indenture for the convertible notes released several of the guarantor subsidiaries. Certain sales & marketing expenses recorded by non-guarantor subsidiaries have not been allocated to the guarantor subsidiaries.



(Amounts in thousands)	Consolidating Condensed Statements of Operations Year Ended December 31, 2011
	Titan Intl., Inc. (Parent)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net sales	$	—		$	1,195,707		$	291,291		$	—		$	1,486,998
Cost of sales	1,276			984,289			269,325			—			1,254,890
Gross profit (loss)	(1,276		)	211,418			21,966			—			232,108
Selling, general and administrative expenses	30,936			10,648			44,333			—			85,917
Research and development expenses	87			4,141			—			—			4,228
Royalty expense	—			7,997			1,793			—			9,790
Income (loss) from operations	(32,299		)	188,632			(24,160		)	—			132,173
Interest expense	(24,489		)	—			(770		)	—			(25,259		)
Noncash convertible debt conversion charge	(16,135		)	—			—			—			(16,135		)
Other income (expense)	5,456			(127		)	(213		)	—			5,116
Income (loss) before income taxes	(67,467		)	188,505			(25,143		)	—			95,895
Provision (benefit) for income taxes	(17,294		)	63,527			(8,474		)	—			37,759
Equity in earnings of subsidiaries	108,309			—			—			(108,309		)	—
Net income (loss)	58,136			124,978			(16,669		)	(108,309		)	58,136
Net loss noncontrolling interests	—			—			—			(16		)	(16		)
Net income (loss) attributable to Titan	$	58,136		$	124,978		$	(16,669	)	$	(108,293	)	$	58,152



(Amounts in thousands)	Consolidating Condensed Statements of Operations Year Ended December 31, 2010
	Titan Intl., Inc. (Parent)			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net sales	$	—		$	881,591	$	—		$	—		$	881,591
Cost of sales	2,340			773,396		1,765			—			777,501
Gross profit (loss)	(2,340		)	108,195		(1,765		)	—			104,090
Selling, general and administrative expenses	27,400			8,790		21,375			—			57,565
Research and development expenses	—			6,317		—			—			6,317
Royalty expense	—			9,263		—			—			9,263
Income (loss) from operations	(29,740		)	83,825		(23,140		)	—			30,945
Interest expense	(26,667		)	—		—			—			(26,667		)
Loss on note repurchase	(14,573		)	—		—			—			(14,573		)
Other income	921			49		135			—			1,105
Income (loss) before income taxes	(70,059		)	83,874		(23,005		)	—			(9,190		)
Provision (benefit) for income taxes	(31,409		)	38,463		(10,318		)	—			(3,264		)
Equity in earnings of subsidiaries	32,724			—		—			(32,724		)	—
Net income (loss)	$	(5,926	)	$	45,411	$	(12,687	)	$	(32,724	)	$	(5,926	)



(Amounts in thousands)	Consolidating Condensed Statements of Operations Year Ended December 31, 2009
	Titan Intl., Inc. (Parent)			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations		Consolidated
Net sales	$	—		$	727,599	$	—		$	—	$	727,599
Cost of sales	(6		)	669,561		2,079			—		671,634
Gross profit (loss)	6			58,038		(2,079		)	—		55,965
Selling, general and administrative expenses	16,549			10,321		19,864			—		46,734
Research and development expenses	67			8,783		—			—		8,850
Royalty expense	—			7,573		—			—		7,573
Noncash goodwill impairment charge	—			—		11,702			—		11,702
Income (loss) from operations	(16,610		)	31,361		(33,645		)	—		(18,894		)
Interest expense	(16,246		)	—		—			—		(16,246		)
Gain on note repurchase	1,398			—		—			—		1,398
Other income	1,452			125		163			—		1,740
Income (loss) before income taxes	(30,006		)	31,486		(33,482		)	—		(32,002		)
Provision (benefit) for income taxes	(6,897		)	7,238		(7,698		)	—		(7,357		)
Equity in earnings of subsidiaries	(1,536		)	—		—			1,536		—
Net income (loss)	$	(24,645	)	$	24,248	$	(25,784	)	$	1,536	$	(24,645	)



(Amounts in thousands)	Consolidating Condensed Balance Sheets December 31, 2011
	Titan Intl., Inc. (Parent)			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Consolidated
Assets
Cash and cash equivalents	$	125,266		$	6	$	3,898		$	—		$	129,170
Accounts receivable	—			137,226		52,301			—			189,527
Inventories	—			162,134		28,738			—			190,872
Prepaid and other current assets	27,251			15,490		12,283			—			55,024
Total current assets	152,517			314,856		97,220			—			564,593
Property, plant and equipment, net	9,562			219,734		105,446			—			334,742
Investment in subsidiaries	184,317			—		—			(184,317		)	—
Other assets	44,918			1,454		64,579			—			110,951
Total assets	$	391,314		$	536,044	$	267,245		$	(184,317	)	$	1,010,286
Liabilities and Stockholders’ Equity
Short-term debt	$	—		$	—	$	11,723		$	—		$	11,723
Accounts payable	930			33,563		42,081			—			76,574
Other current liabilities	22,687			39,457		25,325			—			87,469
Total current liabilities	23,617			73,020		79,129			—			175,766
Long-term debt	312,881			—		5,000			—			317,881
Other long-term liabilities	29,267			38,187		52,306			—			119,760
Intercompany accounts	(369,690		)	157,264		212,426			—			—
Titan stockholders' equity	395,239			267,573		(81,616		)	(185,957		)	395,239
Noncontrolling interests	—			—		—			1,640			1,640
Total liabilities and stockholders’ equity	$	391,314		$	536,044	$	267,245		$	(184,317	)	$	1,010,286



(Amounts in thousands)	Consolidating Condensed Balance Sheets December 31, 2010
	Titan Intl., Inc. (Parent)			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Consolidated
Assets
Cash and cash equivalents	$	239,362		$	6	$	132		$	—		$	239,500
Accounts receivable	—			89,004		—			—			89,004
Inventories	—			118,143		—			—			118,143
Prepaid and other current assets	17,981			16,240		482			—			34,703
Total current assets	257,343			223,393		614			—			481,350
Property, plant and equipment, net	7,678			235,143		5,233			—			248,054
Investment in subsidiaries	42,541			—		—			(42,541		)	—
Other assets	22,183			869		28,424			—			51,476
Total assets	$	329,745		$	459,405	$	34,271		$	(42,541	)	$	780,880
Liabilities and Stockholders’ Equity
Accounts payable	$	1,406		$	33,473	$	402		$	—		$	35,281
Other current liabilities	16,066			39,186		1,820			—			57,072
Total current liabilities	17,472			72,659		2,222			—			92,353
Long-term debt	373,564			—		—			—			373,564
Other long-term liabilities	8,855			28,083		5,994			—			42,932
Intercompany accounts	(342,177		)	165,269		176,908			—			—
Stockholders’ equity	272,031			193,394		(150,853		)	(42,541		)	272,031
Total liabilities and stockholders’ equity	$	329,745		$	459,405	$	34,271		$	(42,541	)	$	780,880



(Amounts in thousands)	Consolidating Condensed Statements of Cash Flows Year Ended December 31, 2011
	Titan Intl., Inc. (Parent)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidated
Net cash provided by (used for) operating activities	$	(12,391	)	$	17,958		$	(1,141	)	$	4,426
Cash flows from investing activities:
Capital expenditures	(3,530		)	(19,721		)	(12,493		)	(35,744		)
Acquisitions, net of cash acquired	(99,118		)	—			—			(99,118		)
Purchases of marketable securities	(30,000		)	—			—			(30,000		)
Sales of marketable securities	31,586			—			—			31,586
Other, net	—			1,763			710			2,473
Net cash used for investing activities	(101,062		)	(17,958		)	(11,783		)	(130,803		)
Cash flows from financing activities:
Repurchase of senior unsecured notes	(1,064		)	—			—			(1,064		)
Payment on debt	—			—			(8,856		)	(8,856		)
Term loan borrowing	—			—			25,879			25,879
Proceeds from exercise of stock options	524			—			—			524
Excess tax benefit from stock options exercised	706			—			—			706
Dividends paid	(809		)	—			—			(809		)
Net cash provided by (used for) financing activities	(643		)	—			17,023			16,380
Effect of exchange rate change on cash	—			—			(333		)	(333		)
Net increase (decrease) in cash and cash equivalents	(114,096		)	—			3,766			(110,330		)
Cash and cash equivalents, beginning of period	239,362			6			132			239,500
Cash and cash equivalents, end of period	$	125,266		$	6		$	3,898		$	129,170



(Amounts in thousands)	Consolidating Condensed Statements of Cash Flows Year Ended December 31, 2010
	Titan Intl., Inc. (Parent)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidated
Net cash provided by (used for) operating activities	$	28,158		$	22,036		$	517		$	50,711
Cash flows from investing activities:
Capital expenditures	(6,155		)	(22,123		)	(576		)	(28,854		)
Other, net	—			82			24			106
Net cash used for investing activities	(6,155		)	(22,041		)	(552		)	(28,748		)
Cash flows from financing activities:
Proceeds from borrowings	200,000			—			—			200,000
Repurchase of senior notes	(206,166		)	—			—			(206,166		)
Proceeds from exercise of stock options	285			—			—			285
Payment of financing fees	(5,057		)	—			—			(5,057		)
Dividends paid	(707		)	—			—			(707		)
Net cash used for financing activities	(11,645		)	—			—			(11,645		)
Net increase (decrease) in cash and cash equivalents	10,358			(5		)	(35		)	10,318
Cash and cash equivalents, beginning of period	229,004			11			167			229,182
Cash and cash equivalents, end of period	$	239,362		$	6		$	132		$	239,500



(Amounts in thousands)	Consolidating Condensed Statements of Cash Flows Year Ended December 31, 2009
	Titan Intl., Inc. (Parent)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidated
Net cash provided by (used for) operating activities	$	36,592		$	36,248		$	(527	)	$	72,313
Cash flows from investing activities:
Capital expenditures	(2,704		)	(36,322		)	(511		)	(39,537		)
Acquisition of shares of Titan Europe Plc	—			—			(2,399		)	(2,399		)
Other, net	—			25			1,017			1,042
Net cash used for investing activities	(2,704		)	(36,297		)	(1,893		)	(40,894		)
Cash flows from financing activities:
Proceeds from borrowings	172,500			—			—			172,500
Repurchase of senior notes	(4,726		)	—			—			(4,726		)
Payment on revolving credit facility, net	(25,000		)	—			—			(25,000		)
Proceeds from exercise of stock options	1,142			—			—			1,142
Payment of financing fees	(7,107		)	—			—			(7,107		)
Dividends paid	(704		)	—			—			(704		)
Net cash provided by financing activities	136,105			—			—			136,105
Net increase (decrease) in cash and cash equivalents	169,993			(49		)	(2,420		)	167,524
Cash and cash equivalents, beginning of period	59,011			60			2,587			61,658
Cash and cash equivalents, end of period	$	229,004		$	11		$	167		$	229,182