General Cable Corporation to acquire Freeport-McMoRan Copper & Gold Inc''s global wire and cable business

12 September 2007

General Cable Corporation has entered in to an definitive agreement to acquire the global wire and cable business of Freeport-McMoRan Copper & Gold Inc, which operates as Phelps Dodge International Corporation (PDIC), for approximately $735 million, subject to adjustment as provided in the Stock Purchase Agreement.

General Cable is a global leader in the development, design, manufacture, marketing and distribution of copper, aluminium and fiber optic wire and cable products for the energy, industrial, and communications markets.

In addition to utilising its available cash, General Cable has secured commitments from Merrill Lynch Capital Corporation to provide an increased secured revolving line of credit and an additional secured interim loan necessary to fund the purchase price.

Based on reported 2006 sales of $4.8 billion, the combined companies would have approximately 44 per cent of revenues in North America, 27 per cent in Europe and the Middle East, 15 per cent in South and Central America, and 14 per cent in Africa/Asia Pacific.

Freeport acquired PDIC as part of the acquisition of Phelps Dodge Corporation in March 2007.

Under the terms of the transaction, which has been unanimously approved by General Cable''s Board of Directors, General Cable will acquire 100 per cent of the shares held by Freeport and its subsidiaries in the various entities comprising Freeport''s wire and cable business. The purchase price is subject to adjustment to take into account the net effect of any dividends and other distributions made from, and capital contributions made to, the entities being acquired from March 31, 2007.