SUBSIDIARY GUARANTOR FINANCIAL INFORMATION - 5.625% CONVERTIBLE NOTES

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. 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 For the Three Months Ended March 31, 2012
	Titan Intl., Inc. (Parent)			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net sales	$	—		$	371,129	$	91,959		$	—		$	463,088
Cost of sales	302			285,024		84,399			—			369,725
Gross profit (loss)	(302		)	86,105		7,560			—			93,363
Selling, general and administrative expenses	10,587			15,675		4,573			—			30,835
Research and development expenses	124			1,298		86			—			1,508
Royalty expense	—			1,693		656			—			2,349
Income (loss) from operations	(11,013		)	67,439		2,245			—			58,671
Interest expense	(6,062		)	—		(233		)	—			(6,295		)
Other income	2,174			497		440			—			3,111
Income (loss) before income taxes	(14,901		)	67,936		2,452			—			55,487
Provision (benefit) for income taxes	(6,952		)	25,041		2,004			—			20,093
Equity in earnings of subsidiaries	43,343			—		—			(43,343		)	—
Net income (loss)	35,394			42,895		448			(43,343		)	35,394
Net loss noncontrolling interests	—			—		—			(25		)	(25		)
Net income (loss) attributable to Titan	$	35,394		$	42,895	$	448		$	(43,318	)	$	35,419



(Amounts in thousands)	Consolidating Condensed Statements of Operations For the Three Months Ended March 31, 2011
	Titan Intl., Inc. (Parent)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net sales	$	—		$	280,829		$	—		$	—		$	280,829
Cost of sales	361			223,754			442			—			224,557
Gross profit (loss)	(361		)	57,075			(442		)	—			56,272
Selling, general and administrative expenses	15,405			2,725			7,163			—			25,293
Research and development expenses	—			1,183			—			—			1,183
Royalty expense	—			2,917			—			—			2,917
Income (loss) from operations	(15,766		)	50,250			(7,605		)	—			26,879
Interest expense	(6,280		)	—			—			—			(6,280		)
Noncash convertible debt conversion charge	(16,135		)	—			—			—			(16,135		)
Other income (expense)	317			(202		)	78			—			193
Income (loss) before income taxes	(37,864		)	50,048			(7,527		)	—			4,657
Provision (benefit) for income taxes	(8,039		)	18,518			(2,786		)	—			7,693
Equity in earnings of subsidiaries	26,789			—			—			(26,789		)	—
Net income (loss)	$	(3,036	)	$	31,530		$	(4,741	)	$	(26,789	)	$	(3,036	)



(Amounts in thousands)	Consolidating Condensed Statements of Comprehensive Income For the Three Months Ended March 31, 2012
	Titan Intl., Inc. (Parent)		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Consolidated
Net income (loss)	$	35,394	$	42,895	$	448	$	(43,343	)	$	35,394
Unrealized gain (loss) on investments, net of tax	5,917		—		5,917		(5,917		)	5,917
Currency translation adjustment	3,567		—		3,567		(3,567		)	3,567
Pension liability adjustments, net of tax	836		790		46		(836		)	836
Comprehensive income (loss)	45,714		43,685		9,978		(53,663		)	45,714
Net comprehensive loss attributable to noncontrolling interests	—		—		—		(25		)	(25		)
Comprehensive income (loss) attributable to Titan	$	45,714	$	43,685	$	9,978	$	(53,638	)	$	45,739



(Amounts in thousands)	Consolidating Condensed Statements of Comprehensive Income For the Three Months Ended March 31, 2011
	Titan Intl., Inc. (Parent)			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net income (loss)	$	(3,036	)	$	31,530	$	(4,741	)	$	(26,789	)	$	(3,036	)
Unrealized gain (loss) on investments, net of tax	(993		)	—		(993		)	993			(993		)
Currency translation adjustment	—			—		—			—			—
Pension liability adjustments, net of tax	593			553		40			(593		)	593
Comprehensive income (loss)	(3,436		)	32,083		(5,694		)	(26,389		)	(3,436		)
Net comprehensive loss attributable to noncontrolling interests	—			—		—			—			—
Comprehensive income (loss) attributable to Titan	$	(3,436	)	$	32,083	$	(5,694	)	$	(26,389	)	$	(3,436	)



(Amounts in thousands)	Consolidating Condensed Balance Sheets March 31, 2012
	Titan Intl., Inc. (Parent)			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Consolidated
Assets
Cash and cash equivalents	$	116,518		$	6	$	12,784		$	—		$	129,308
Accounts receivable	—			192,351		53,597			—			245,948
Inventories	—			184,114		30,040			—			214,154
Prepaid and other current assets	33,400			17,325		14,901			—			65,626
Total current assets	149,918			393,796		111,322			—			655,036
Property, plant and equipment, net	8,805			217,232		107,881			—			333,918
Investment in subsidiaries	220,693			—		—			(220,693		)	—
Other assets	44,910			1,403		63,932			—			110,245
Total assets	$	424,326		$	612,431	$	283,135		$	(220,693	)	$	1,099,199
Liabilities and Stockholders’ Equity
Accounts payable	$	1,084		$	52,185	$	59,397		$	—		$	112,666
Other current liabilities	1,893			69,570		28,018			—			99,481
Total current liabilities	2,977			121,755		87,415			—			212,147
Long-term debt	312,881			—		5,000			—			317,881
Other long-term liabilities	37,072			37,522		50,889			—			125,483
Intercompany accounts	(370,677		)	141,897		228,780			—			—
Titan stockholders' equity	442,073			311,257		(88,949		)	(222,308		)	442,073
Noncontrolling interests	—			—		—			1,615			1,615
Total liabilities and stockholders’ equity	$	424,326		$	612,431	$	283,135		$	(220,693	)	$	1,099,199



(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 Statements of Cash Flows For the Three Months Ended March 31, 2012
	Titan Intl., Inc. (Parent)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidated
Net cash provided by (used for) operating activities	$	(7,535	)	$	6,204		$	21,979		$	20,648
Cash flows from investing activities:
Capital expenditures	(1,378		)	(6,225		)	(552		)	(8,155		)
Other, net	—			21			87			108
Net cash used for investing activities	(1,378		)	(6,204		)	(465		)	(8,047		)
Cash flows from financing activities:
Payment on debt	—			—			(12,444		)	(12,444		)
Proceeds from exercise of stock options	370			—			—			370
Excess tax benefit from stock options exercised	6			—			—			6
Dividends paid	(211		)	—			—			(211		)
Net cash provided by (used for) financing activities	165			—			(12,444		)	(12,279		)
Effect of exchange rate change on cash	—			—			(184		)	(184		)
Net increase (decrease) in cash and cash equivalents	(8,748		)	—			8,886			138
Cash and cash equivalents, beginning of period	125,266			6			3,898			129,170
Cash and cash equivalents, end of period	$	116,518		$	6		$	12,784		$	129,308



(Amounts in thousands)	Consolidating Condensed Statements of Cash Flows For the Three Months Ended March 31, 2011
	Titan Intl., Inc. (Parent)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidated
Net cash provided by (used for) operating activities	$	(8,115	)	$	2,487		$	33		$	(5,595	)
Cash flows from investing activities:
Capital expenditures	(312		)	(3,100		)	(57		)	(3,469		)
Other, net	—			614			9			623
Net cash used for investing activities	(312		)	(2,486		)	(48		)	(2,846		)
Cash flows from financing activities:
Repurchase of senior unsecured notes	(1,064		)	—			—			(1,064		)
Proceeds from exercise of stock options	230			—			—			230
Dividends paid	(177		)	—			—			(177		)
Net cash used for financing activities	(1,011		)	—			—			(1,011		)
Net increase (decrease) in cash and cash equivalents	(9,438		)	1			(15		)	(9,452		)
Cash and cash equivalents, beginning of period	239,362			6			132			239,500
Cash and cash equivalents, end of period	$	229,924		$	7		$	117		$	230,048