SCOTT DEPOT, W.Va., July 23 /PRNewswire-FirstCall/ -- International CoalGroup, Inc. (NYSE: ICO) today reported its results for the second quarter of2008.

-- Revenue was up 34% at $277.9 million for the second quarter of 2008,compared to $208.1 million during the same period a year ago.

-- Adjusted EBITDA, or earnings before deducting interest expense, incometaxes, depreciation, depletion, amortization and minority interest, was$53.4 million for the second quarter of 2008, compared to $11.3 million forthe second quarter of 2007.

-- The Company reported net income of $12.6 million, or $0.07 per share ona diluted basis, in the second quarter of 2008, compared to a net loss of$10.2 million, or a loss of $0.07 per share on a diluted basis, for the sameperiod in 2007.

-- These financial results include a $22.9 million pre-tax gain realizedon an exchange of Eastern Kentucky coal reserves completed in June. TheCompany's total coal reserve holdings increased by approximately one milliontons as a result of this exchange.

"Both our operating and financial performance improved significantly inthe second quarter," said Ben Hatfield, president and CEO of ICG. "In fact,June results were the best in our company's brief history. This quarter wasthe first reporting period to begin reflecting the positive effects of our newmine development projects, which have arrived on-line just in time to benefitfrom the current strength in the global coal market. Going forward, we expectthat our strategic decision to develop these new mining complexes will yieldsubstantial benefits.

"Likewise, we will continue to explore cost-effective means of expandingour production base to take advantage of the current market strength," saidHatfield. "The acquisition of the Powell Mountain operation in May, and theplanned fourth quarter purchase of a large surface-mining shovel spread toboost ICG Hazard output, are good examples of this growth strategy. ThePowell Mountain operation is projected to add approximately 250,000 tons ofproduction in 2008, and is expected to increase thereafter to approximatelyone million annual tons at full output. The Hazard shovel spread is expectedto increase production by approximately 500,000 tons annually beginning in2009."

Hatfield continued, "We are also pleased with the results of ourdisciplined marketing strategy. During the second quarter, we reachedagreements on 10 new term contracts with eight different customers,representing approximately 5.1 million tons of predominantly steam coal ataverage prices exceeding $105 per ton. The Company still retains sizeable openpositions that allow for further forward sales in the currently strong pricingenvironment.

"We are mindful that the pricing benefits of this heated coal market willonly translate to profit margin growth if we can manage the upward costpressures, such as increased competition for scarce labor, higher fuel pricesand increased trucking costs," Hatfield noted. "However, ICG is proactivelyaddressing those challenges. For example, our cornerstoneoperations -- Sentinel, Beckley and the planned Tygart No. 1 complex -- havedirect mine-to-rail access, eliminating the need for expensive trucking. Onthe labor front, we have implemented several initiatives to attract and retainskilled workers, and are seeing positive results from those efforts. Goingforward, cost containment will remain a key focus even as we enjoy an improvedmarket environment."

Six-Month Results

Revenues for the first six months of 2008 totaled $529.8 million comparedto $436.4 million for the same period in 2007. The Company reported EBITDA of$68.0 million in the first six months of 2008 compared to $24.2 million in thefirst six months of 2007. Net income for the first half was $1.1 million, or$0.01 per share on a diluted basis, versus a loss of $18.3 million, or a lossof $0.12 per share on a diluted basis, for the same period in 2007.

Sales, Production and Reserves

ICG sold 4.9 million tons of coal during the second quarter of 2008compared to 4.4 million tons of coal during the second quarter of 2007.Production totaled 4.6 million tons of coal in the second quarter of 2008versus 4.2 million tons produced in the same period in 2007.

As of June 30, 2008, ICG controlled approximately 1.0 billion tons of coalreserves located primarily in Illinois, Kentucky, West Virginia, Maryland andVirginia. Additionally, the Company controls 527 million tons of non-reservecoal deposits, which may be classified as reserves in the future as additionaldrilling and geological analysis is completed.

Market Outlook and Committed Sales

Coal markets remained vibrant during the second quarter, and the forwardoutlook has improved since the first quarter of 2008. According to the EnergyInformation Administration (EIA), Eastern U.S. coal production is up only 0.7%through June 30, 2008 compared to the same period last year despite recordprice levels. Conversely, electricity generation is up nearly 1% year-to-dateover last year. U.S. coal exports are up 57% through June 30, 2008, whilecoal imports are down 2% compared to the prior year. The EIA now projectsU.S. exports to total 85 million tons for 2008, an increase of 27 million tonsfrom 2007 levels. The Company expects that continued strong internationaldemand, relatively high natural gas prices and continued robust steel priceswill result in sustained pricing support through at least 2011.

-- For 2008, committed and priced sales are approximately 19.7 milliontons or about 96% of planned shipments. Priced volume for 2008 averages$51.18 per ton, excluding freight and handling expenses, with approximately35% of the unpriced tonnage being metallurgical coal.

-- For 2009, committed and priced sales are approximately 17.9 milliontons or about 80% of projected shipments. Priced volume for 2009 averages$58.85 per ton, excluding freight and handling expenses, with approximately35% of the unpriced tonnage being metallurgical coal.

-- For 2010, committed and priced sales are approximately 9.1 million tonsor about 39% of projected shipments. Priced volume for 2010 averages $56.31per ton, excluding freight and handling expenses, with approximately 21% ofthe unpriced tonnage being metallurgical coal.

Operational Update

-- The mine development pace at the new Beckley complex in Raleigh County,West Virginia, improved significantly in the second quarter. However, asnoted in the Company's first quarter 2008 earnings release, progress has beenslowed by the regional shortage of skilled underground miners, and also bymine plan revisions designed to maintain the long-term integrity of theBeckley mine's main entries. The Company now expects the Beckley operation toreach its targeted annual production rate of 1.4 million tons during thefourth quarter of 2008.

-- Production at the Sentinel complex in Barbour County, West Virginiaincreased 23% in the second quarter, compared to the first quarter of 2008.The complex is nearing its projected annual production rate of 1.5 milliontons. Like Beckley, the Sentinel Mine production ramp-up has been slowed bythe shortage of experienced labor.

-- On May 30, 2008, the Company expanded its geographical market andproduction base by acquiring the former Powell Mountain mining operationslocated in Lee County, Virginia, and Harlan County, Kentucky. The acquiredassets include 29.0 million tons of leased coal reserves, a preparation plantand unit-train rail loadout, and an idle deep mine complex. At fullproduction, this new operation is expected to produce and ship more than 1.0million tons of coal annually for the compliance utility market and thehigh-volatile metallurgical market.

-- The Company's ICG Hazard complex has entered into purchase arrangementsto acquire a 44-cubic-yard O&K hydraulic shovel, five 240-ton Terex rocktrucks, and other support equipment to significantly increase production atthe existing East Mac & Nellie Surface Mine. Net production growth isexpected to be 500,000 annual tons of steam coal. Initial equipmentdeliveries are expected to begin in fourth quarter 2008, and full productionoutput is projected for first quarter 2009. Capital expenditures for thisproject are expected to total $35 million during late 2008 and early 2009.

Other Recent Developments

-- In June, 2008, the Company's ICG Hazard and ICG Natural Resourcessubsidiaries concluded an exchange of coal reserves in Breathitt, Knott andPerry Counties, Kentucky, with a privately-held coal producer. ICG divestedapproximately 4.8 million tons of steam-quality coal reserves and 6.8 milliontons of coal resources in exchange for approximately 5.8 million tons of steamcoal reserves, 3.0 million tons of coal resources, and $3.0 million in cash.The Company recognized a $22.9 million pre-tax gain on this transaction. TheCompany expects to mine the properties it acquired within the next five years,while the properties conveyed were not projected for near-term mining.

-- ICG Eastern, LLC has been recognized as the recipient of the NationalAward for Excellence in Surface Coal Mining by the U.S. Department ofInterior's Office of Surface Mining. The award recognizes ICG Eastern's BirchRiver mining complex, located near Cowen, West Virginia, for its innovativeand environmentally progressive mine reclamation practices, which exceed bothstate and federal requirements for environmental stewardship. The NationalAward for Excellence is the latest of several awards recognizing ICG Easternfor its excellent safety and environmental performance. Within the last year,ICG Eastern received the Greenlands Award (the West Virginia Department ofEnvironmental Protection's most prestigious reclamation award), and the KenesC. Bowling National Mine Reclamation Award from the Interstate Mining CompactCommission, which covers all the coal producing regions of the United States.ICG Eastern has earned these state and national awards while operating as oneof the Company's strongest and most consistent operational and financialperformers.

Liquidity and Debt

As of June 30, 2008, the Company had $68.1 million in cash, up$13.9 million from March 31, 2008. Total debt as of June 30, 2008 was$416.0 million, consisting primarily of $175.0 million of 10.25% Senior Notesand $225.0 million of 9% Convertible Senior Notes. As of June 30, 2008, theCompany had $28.4 million in available borrowing capacity under its creditagreement. Second quarter cash requirements included $55.0 million in capitalexpenditures.

On June 30, 2008, the Company announced that its $225.0 million of 9%Convertible Senior Notes became convertible at the option of the holdersbeginning July 1, 2008. The Company does not believe that a significantnumber of conversions are likely at this time, and to date has received nonotices of exercise of conversion rights. The triggering of the conversionright is not expected to have a material effect on the Company's financialposition.

ICG's capital requirements for the balance of 2008 relate largely tocompletion of the Beckley project, initial development of the Tygart No. 1complex, and purchase of equipment for the Hazard shovel expansion.

Outlook

The Company is providing the following updated guidance:

-- For 2008, the Company expects to sell just over 20.0 million tons ofcoal. The average selling price is now projected to be $54.00 to $55.00 perton, compared to the Company's previous guidance of $51.00 to $52.50 per ton.The projected average cost per ton sold is now expected to be $45.00 to$47.00, excluding selling, general and administrative expenses. The Companyexpects coal production to be approximately 19.0 million tons, of whichapproximately 1.7 million tons are expected to be sold as metallurgical coal.

-- For 2009, the Company expects to sell 21.5 million to 22.5 million tonsof coal. The Company is revising its price outlook for 2009, projecting thatprices will average between $72.00 and $78.00 per ton, based on recent priceindications and contracting activity, compared to the Company's previousguidance of $58.00 to $63.00 per ton. Coal production is expected to total20.5 million to 21.5 million tons, of which approximately 2.6 million tons areprojected to be sold as metallurgical coal.

-- For 2010, the Company expects to sell 23.0 million to 24.0 million tonsof coal. The Company anticipates that prices will average between $92.00 and$102.00 per ton. Coal production is expected to total 22.0 million to 23.0million tons, of which 3.2 million tons are projected to be sold asmetallurgical coal.

-- The Company's updated outlook for its expected average coal pricing byregion for 2008, 2009 and 2010 is as follows:

Region 2008 Forecast 2009 Forecast 2010 Forecast CAPP $57.50 - $58.50 $80.00 - $85.00 $98.00 - $108.00 NAPP $58.00 - $59.00 $70.00 - $75.00 $95.00 - $105.00 ILB $30.50 - $31.00 $32.00 - $33.00 $35.00 - $37.00 Average $54.00 - $55.00 $72.00 - $78.00 $92.00 - $102.00 -- Coal exports in 2008 are now projected to total approximately 3.1million tons, consisting of approximately 1.4 million tons of metallurgicalcoal and approximately 1.7 million tons of thermal coal.

-- Capital expenditure guidance has been increased to reflect the Hazardshovel project expansion. The Company now expects capital expenditures tototal approximately $179 million in 2008 and $205 million in 2009.

General Information

ICG is a leading producer of coal in Northern and Central Appalachia andthe Illinois Basin. The Company has 13 active mining complexes, of which 12are located in Northern and Central Appalachia and one in Central Illinois.ICG's mining operations and reserves are strategically located to serveutility, metallurgical and industrial customers domestically andinternationally.

Forward-Looking Statements

This press release contains certain statements that are forward-lookingstatements within the "safe harbor" provision of the Private SecuritiesLitigation Reform Act of 1995. Because these forward-looking statements aresubject to various risks and uncertainties, actual results may differmaterially from those implied in the forward-looking statements. The followingfactors are among those that may cause actual results to differ materiallyfrom the forward-looking statements: market demand for coal, electricity andsteel; availability of qualified workers; future economic or capital marketconditions; weather conditions or catastrophic weather-related damage; ICG'sproduction capabilities; the consummation of financing, acquisition ordisposition transactions and the effect thereof on ICG's business; ICG's plansand objectives for future operations and expansion or consolidation; ICG'srelationships with, and other conditions affecting, ICG's customers; theavailability and cost of key supplies or commodities, such as diesel fuel,steel, explosives or tires; prices of fuels which compete with or impact coalusage, such as oil and natural gas; timing of reductions or increases incustomer coal inventories; long-term coal supply arrangements; risks in orrelated to coal mining operations, including risks related to third-partysuppliers, contractors and carriers operating at our mines or complexes;unexpected maintenance and equipment failure; environmental, safety and otherlaws and regulations, including those directly affecting ICG's coal mining andproduction, and those affecting ICG's customers' coal usage; the ability toobtain and maintain all necessary governmental permits and authorizations;competition; railroad, barge, trucking and other transportation availability,performance and costs; employee benefits costs and labor relations issues;replacement of ICG's reserves; ICG's assumptions concerning economicallyrecoverable coal reserve estimates; availability and costs of credit, suretybonds and letters of credit; title defects or loss of leasehold interests inICG's properties which could result in unanticipated costs or inability tomine these properties; future legislation and changes in regulations orgovernmental policies or changes in interpretations thereof, including withrespect to safety enhancements and environmental initiatives relating toglobal warming; the impairment of the value of goodwill and long-lived assets;the ongoing effect of the Sago mine accident; ICG's liquidity, results ofoperations and financial condition; the adequacy and sufficiency of ICG'sinternal controls; and legal and administrative proceedings, settlements,investigations and claims. Forward-looking statements made by ICG in thispress release or elsewhere speak only as of the date on which the statementswere made. See also the "Risk Factors" of our 2007 Annual Report on Form 10-Kand in our subsequent filings on Form 10-Q, all of which are currentlyavailable on our website at www.intlcoal.com. New risks and uncertaintiesarise from time-to-time, and it is impossible for ICG to predict these eventsor how they may affect ICG or its anticipated results. ICG has no duty to, anddoes not intend to, update or revise the forward-looking statements in thisnews release after the date of issue, except as may be required by law.

INTERNATIONAL COAL GROUP, INC. AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2008 AND 2007 (in thousands, except share and per share amounts) Three Months Ended Six Months Ended June 30, June 30, 2008 2007 2008 2007 Revenues: Coal sales revenues $253,109 $188,033 $479,713 $400,993 Freight and handling revenues 11,870 4,571 23,153 9,601 Other revenues 12,906 15,446 26,944 25,770 Total revenues 277,885 208,050 529,810 436,364 Costs and expenses: Cost of coal sales 217,656 175,282 426,460 369,431 Freight and handling costs 11,870 4,571 23,153 9,601 Cost of other revenues 9,222 11,351 18,157 19,539 Depreciation, depletion and amortization 24,694 21,794 46,651 42,970 Selling, general and administrative 10,108 8,214 18,634 16,842 Gain on sale of assets, net (24,391) (2,312) (24,602) (2,354) Total costs and expenses 249,159 218,900 508,453 456,029 Income (loss) from operations 28,726 (10,850) 21,357 (19,665) Interest and other income (expense): Interest expense, net (8,201) (5,870) (20,182) (12,201) Other, net - 310 - 872 Total interest and other expense, net (8,201) (5,560) (20,182) (11,329) Income (loss) before income taxes and minority interest 20,525 (16,410) 1,175 (30,994) Income tax (expense) benefit (7,899) 6,162 (88) 12,317 Minority interest 2 14 (5) 375 Net income (loss) $12,628 $(10,234) $1,082 $(18,302) Other Data: Adjusted EBITDA (a) $53,420 $11,254 $68,008 $24,177 Earnings per share: Basic $0.08 $(0.07) $0.01 $(0.12) Diluted (b) $0.07 $(0.07) $0.01 $(0.12) Weighted-average shares - basic 152,550,960 152,239,527 152,499,812 152,186,028 Weighted-average shares - diluted (b) 168,529,748 152,239,527 168,168,663 152,186,028 (a) This press release includes a non-GAAP financial measure within themeaning of applicable SEC rules and regulations. Adjusted EBITDA is a non-GAAPfinancial measure used by management to gauge operating performance. We defineAdjusted EBITDA as net income or loss before deducting net interest expense,income taxes, depreciation, depletion, amortization and minority interest.Adjusted EBITDA is not, and should not, be used as a substitute for operatingincome, net income and cash flow as determined in accordance with GAAP. Wepresent Adjusted EBITDA because we consider it an important supplementalmeasure of our performance and believe it is frequently used by securitiesanalysts, investors and other interested parties in the evaluation ofcompanies in our industry, substantially all of which present EBITDA orAdjusted EBITDA when reporting their results. We also use Adjusted EBITDA forthe following purposes: our executive compensation plan bases incentivecompensation payments on our Adjusted EBITDA performance measured againstbudgets and a peer group. Our credit facility uses Adjusted EBITDA (withadditional adjustments) to measure our compliance with covenants, such asinterest coverage and leverage. EBITDA or Adjusted EBITDA is also widely usedby us and others in our industry to evaluate and price potential acquisitioncandidates. Adjusted EBITDA has limitations as an analytical tool, and youshould not consider it in isolation or as a substitute for analysis of ourresults as reported under GAAP. Some of these limitations are that AdjustedEBITDA does not reflect our cash expenditures, or future requirements, forcapital expenditures or contractual commitments; changes in, or cashrequirements for, our working capital needs; interest expense, or the cashrequirements necessary to service interest or principal payments, on ourdebts. Although depreciation and amortization are non-cash charges, the assetsbeing depreciated and amortized will often have to be replaced in the future.Adjusted EBITDA does not reflect any cash requirements for such replacements.Other companies in our industry may calculate EBITDA or Adjusted EBITDAdifferently than we do, limiting its usefulness as a comparative measure. Areconciliation of Adjusted EBITDA to GAAP net income or loss appears at theend of this press release.

(b) The diluted weighted-average shares for the three and six monthperiods ended June 30, 2008 include the estimated dilutive impact of our 9%Convertible Senior Notes due 2012. This estimate is based upon share datathrough July 22, 2008. The actual dilutive impact will be finalized with sharedata through July 29, 2008 in our filing on Form 10-Q for the quarter endedJune 30, 2008.

INTERNATIONAL COAL GROUP, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS AS OF JUNE 30, 2008 AND DECEMBER 31, 2007 (in thousands) June 30, December 31, 2008 2007 Assets (Unaudited) Current assets: Cash and cash equivalents $68,086 $107,150 Accounts receivable 113,951 83,765 Inventories, net 43,956 40,679 Deferred income taxes 7,573 5,000 Prepaid expenses and other 27,575 28,610 Total current assets 261,141 265,204 Property, plant, equipment and mine development, net 1,023,967 974,334 Debt issuance costs, net 12,235 13,466 Advanced royalties, net 13,677 14,661 Goodwill 30,237 30,237 Other non-current assets 5,582 5,661 Total assets $1,346,839 $1,303,563 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $72,705 $70,042 Current portion of long-term debt 5,402 4,234 Current portion of reclamation and mine closure costs 7,333 7,333 Current portion of employee benefits 2,925 2,925 Accrued expenses and other 80,696 62,723 Total current liabilities 169,061 147,257 Long-term debt 410,620 408,096 Reclamation and mine closure costs 80,955 78,587 Employee benefits 59,864 55,132 Deferred income taxes 54,433 52,355 Below-market coal supply agreements 48,023 39,668 Other non-current liabilities 5,321 8,062 Total liabilities 828,277 789,157 Minority interest 40 35 Stockholders' equity: Common stock 1,532 1,530 Additional paid-in capital 642,095 639,160 Accumulated other comprehensive income (5,771) (5,903) Retained deficit (119,334) (120,416) Total stockholders' equity 518,522 514,371 Total liabilities and stockholders' equity $1,346,839 $1,303,563 INTERNATIONAL COAL GROUP, INC. AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 2008 AND 2007 (in thousands) Six Months Ended June 30, 2008 2007 Cash flows from operating activities: Net income (loss) $1,082 $(18,302) Adjustments to reconcile net income (loss) to net cash from operating activities: Depreciation, depletion and amortization 46,651 42,970 Compensation expense on restricted stock and options 2,377 2,697 Minority interest 5 (375) Amortization of deferred finance costs 1,414 1,278 Gain on sale of assets, net (24,602) (2,354) Deferred income taxes (17) (16,570) Provision for bad debt (522) 522 Amortization of accumulated post-retirement benefit obligation 214 88 Changes in assets and liabilities: Accounts receivable (29,304) 3,828 Inventories (3,277) (12,953) Prepaid expenses and other 1,156 8,933 Other non-current assets 823 (1,060) Accounts payable 258 4,070 Accrued expenses and other 17,841 7,336 Reclamation and mine closure costs (1,125) 3,744 Other liabilities 1,990 2,908 Net cash from operating activities 14,964 26,760 Cash flows from investing activities: Proceeds from the sale of assets 3,819 4,663 Additions to property, plant, equipment and mine development (54,973) (74,943) Cash paid related to acquisitions, net (558) (6,939) Withdrawals of restricted cash 14 499 Net cash from investing activities (51,698) (76,720) Cash flows from financing activities: Borrowings on short-term debt - 553 Repayments on short-term debt - (15,492) Borrowings on long-term debt - 65,000 Repayments on long-term debt (2,147) (1,330) Debt issuance costs (183) (1,047) Net cash from financing activities (2,330) 47,684 Net change in cash and cash equivalents (39,064) (2,276) Cash and cash equivalents, beginning of period 107,150 18,742 Cash and cash equivalents, end of period $68,086 $16,466 INTERNATIONAL COAL GROUP, INC. AND SUBSIDIARIES RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2008 AND 2007 (Unaudited) (in thousands) Three Months Ended Six Months Ended June 30, June 30, 2008 2007 2008 2007 Net income (loss) $12,628 $(10,234) $1,082 $(18,302) Depreciation, depletion & amortization 24,694 21,794 46,651 42,970 Interest expense, net 8,201 5,870 20,182 12,201 Income tax expense (benefit) 7,899 (6,162) 88 (12,317) Minority interest (2) (14) 5 (375) Adjusted EBITDA $53,420 $11,254 $68,008 $24,177 INTERNATIONAL COAL GROUP, INC. AND SUBSIDIARIES OPERATING STATISTICS FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2008 and 2007 (Unaudited) (in thousands, except per ton amounts) Central Northern Illinois Purchased Appalachia Appalachia Basin Coal Total For the three months ended June 30, 2008: Tons sold 3,004 1,075 543 236 4,858 Coal sales revenues $166,933 $59,776 $16,195 $10,205 $253,109 Cost of coal sales $146,060 $51,919 $12,675 $7,002 $217,656 Coal sales revenue per ton (a) $55.57 $55.61 $29.83 $43.24 $52.10 Cost of coal sales per ton (a) $48.62 $48.30 $23.34 $29.67 $44.80 For the three months ended June 30, 2007: Tons sold 2,788 764 505 388 4,445 Coal sales revenues $128,196 $27,666 $15,059 $17,112 $188,033 Cost of coal sales $113,251 $34,135 $11,717 $16,179 $175,282 Coal sales revenue per ton (a) $45.98 $36.21 $29.82 $44.10 $42.30 Cost of coal sales per ton (a) $40.62 $44.68 $23.20 $41.70 $39.43 For the six months ended June 30, 2008: Tons sold 5,886 2,051 1,143 628 9,708 Coal sales revenues $313,725 $104,997 $34,089 $26,902 $479,713 Cost of coal sales $279,240 $97,079 $28,626 $21,515 $426,460 Coal sales revenue per ton (a) $53.30 $51.19 $29.82 $42.84 $49.41 Cost of coal sales per ton (a) $47.44 $47.33 $25.04 $34.26 $43.93 For the six months ended June 30, 2007: Tons sold 5,640 1,626 1,038 1,122 9,426 Coal sales revenues $259,906 $58,000 $30,985 $52,102 $400,993 Cost of coal sales $228,253 $73,976 $24,395 $42,807 $369,431 Coal sales revenue per ton (a) $46.08 $35.67 $29.85 $46.44 $42.54 Cost of coal sales per ton (a) $40.47 $45.50 $23.50 $38.15 $39.19 (a) "Coal sales revenue per ton" and "Cost of coal sales per ton" arecalculated as Coal sales revenues or Cost of coal sales, respectively, dividedby Tons sold. Although Coal sales revenue per ton and Cost of coal sales perton are not measures of performance calculated in accordance with GAAP,management believes that they are useful to an investor in evaluatingperformance because they are widely used in the coal industry as a measure toevaluate a company's sales performance or control over its costs. Coal salesrevenue per ton and Cost of coal sales per ton should not be considered inisolation or as substitutes for measures of performance in accordance withGAAP. In addition, because Coal sales revenue and Cost of coal sales per tonare not calculated identically by all companies, ICG's presentation may not becomparable to other similarly titled measures of other companies.

SOURCE International Coal Group, Inc.