NS Group to Expand Its Seamless Tube-Making and Heat Treating Capacity

NS Group (NYSE:NSS) announced today that its board ofdirectors approved capital projects totaling $98.0 million to expandits seamless tube-making and heat-treating capacity. The projects willalso broaden the company's product size range to include 5 1/2 inchoutside diameter seamless tubular products. NS Group's total seamlesstubular capacity will increase from the current level of approximately266,000 tons per year to approximately 319,000 tons per year. Inaddition, the project will include new quench and temper equipment atits facility in Baytown, Texas, which will increase the company'stotal heat-treat capacity by 29 percent from 280,000 to 360,000 tonsper year.

President and CEO, Rene J. Robichaud, stated, "We are very excitedabout these projects. Our tube mill has been running at capacity sinceJanuary 2004. These projects, while designed to increase our seamlesstubular capacity by 20 percent, will also allow us to better serve ourcustomers with an additional popular size that is frequently used intoday's more challenging drilling environments. Further, theseprojects are anticipated to provide significant cost reductionbenefits across all of our seamless production tons. Upon completion,these projects are expected to have a combined payback ofapproximately two years, assuming current market conditions.

The projects are expected to be completed in approximately 18months with anticipated production outages directly related to theprojects of about two weeks.

NS Group, Inc. is a leading producer of seamless and weldedtubular products serving the energy industry. These products are usedin the drilling, exploration and transmission of oil and natural gas.The company's tubular products are marketed primarily in the UnitedStates as well as certain foreign markets. NS Group is traded on theNYSE under the symbol NSS. To learn more about NS Group log on towww.nsgrouponline.com.

This report contains forward-looking information with respect tothe company's operations and beliefs. Actual results may differ fromthese forward-looking statements due to numerous factors, includingthose discussed in the company's filings with the Securities andExchange Commission. NS Group does not undertake any obligations toupdate or revise its forward-looking statements.