PHOENIX, March 31 /PRNewswire-FirstCall/ -- Phelps Dodge Corp. announced today it has completed the sale of Phelps Dodge High Performance Conductors of SC & GA, Inc. (HPC) to International Wire Group (IWG). Under the agreement, which was announced March 7, 2006, IWG purchased HPC's manufacturing operations in Inman, S.C., and Trenton, Ga. The transaction does not include a Phelps Dodge facility at Elizabeth, N.J., that will become a unit of the Phelps Dodge Smelting, Refining and Rod Group.

IWG purchased the stock of HPC, including certain copper inventory, for approximately $49 million in cash. This figure includes a base purchase price of approximately $47 million and a working capital adjustment estimated at closing to be approximately $2 million. Phelps Dodge also will receive a contingent payment of up to $3 million based on HPC's 2006 results.

Phelps Dodge estimates special, net after-tax losses of approximately $6 million associated with this transaction, which will be recognized in the 2006 first quarter and consist of a loss on disposal of approximately $3 million and transaction and employee-related costs of approximately $3 million.

HPC is a manufacturer of specialty high-performance conductors for the aerospace, medical, automotive, computer, telecommunications, mass transportation, geophysical and electronics markets.

Phelps Dodge Corp. is one of the world's leading producers of copper and molybdenum and is the largest producer of molybdenum-based chemicals and continuous-cast copper rod. The company employs 13,500 people worldwide.

This news release contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. In addition to the risks and uncertainties noted in this news release, there are certain factors that could cause results to differ materially from those anticipated by some of the statements made. These factors include those listed in Management's Discussion and Analysis of Financial Condition and Results of Operations in the company's most recently filed annual report on Form 10-K for the fiscal year ended December 31, 2005.

CONTACT: Media, Peter J. Faur, +1-602-366-7993, or Investors, Stanton K.
Rideout, +1-602-366-8589, both of Phelps Dodge Corp.