1900 WEST LOOP SOUTH

SUITE 1500

HOUSTON, TEXAS 77027

713.961.4600WWW.QUANEX.COM

MARKET DRIVEN

PROCESS BASED

NX NYSE

38025_PF 7/29/08 10:14 AM Page 1

ucts in a wide range of gauge, width, alloyand temper as well as offering manyvalue-added services such as leveling, slit-ting and coil-coating. Its customers areprimarily in the North American build-ing and construction market with sec-ondary markets being capital goods andtransportation markets. Nichols utilizesstate-of-the-art, computerized scraplending techniques that allow it to processlow grades of aluminum scrap, andemploys highly efficient Hazelett contin-uous casting technology that significantlyreduces its energy consumption comparedto competitors. These capabilities makeNichols one of the most profitable andlowest cost U.S. producers of aluminumsheet products for the North Americanbuilding and construction market.

The Engineered Building Productssegment produces rigid polyvinyl chlo-ride (PVC) extruded window and doorproducts, insulated glass sealant systems,window and door screens, door thresh-olds, divided light window products,and other fenestration components.Engineered Building Products designsand produces proprietary window anddoor systems, fabricated metal, wood andvinyl window and door components,spacer and sealant systems and other

FOCUS

Customers are the primary focus ofQuanex Building Products. QBP nurturesclose relationships by offering customersthe engineering expertise and manufac-turing experience to collaborate on newproducts, developing the processes toproduce them, and then delivering on ajust-in-time basis. QBPs’ contributionsenhance the performance, aesthetics anddistribution of the customers’ products.QBP has successfully fostered and grownlong term partnerships with some ofthe biggest names in the marketplace byutilizing this customer focused strategyand by being a low cost producer.

BUSINESS OVERVIEW

Quanex Building Products is comprisedof two segments – Aluminum Sheet Build-ing Products and Engineered BuildingProducts –manufacturing quality residentialbuilding products that are sold to OriginalEquipment Manufacturers (OEMs) anddistributors. With 18 production facilitiesin the United States and employing ap-proximately 2,600 employees, consolidatedsales for fiscal 2007 were $964 million.

SEGMENTS

Aluminum Sheet Building Products fea-tures Nichols Aluminum, a producer of360 million pounds annually of flat-rolledaluminum sheet that may be mill finishedor coated. Nichols produces its sheet prod-

Fiscal year ended October 31,2007 2006 2005

(in thousands)

Operating Results Data:Net sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 963,975 $ 1,043,773 $ 951,819Operating income. . . . . . . . . . . . . . . . . . . . . . . . . . . 88,614 103,805 101,965

Income from continuing operations.. . . . . . . . . . 57,411 64,284 61,969

Unaudited pro forma diluted earnings fromcontinuing operations per common share . . . . . . . $ 1.53 $ 1.69 $ 1.611

Become North America’s Leading Manufacturerof Engineered Components Sold to OEMsand Distributors of Building Products

VISION

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products for OEMs that serve the NorthAmerican new residential constructionand remodeling markets. EngineeredBuilding Products is distinguished bysuperior product development competen-cies and tight, long-standing customerrelationships built on its expertise inproduct design and engineering supportservices and the quality products theydeliver on a line sequenced or a just-in-time

basis. Many of these window and doorcustomers consider Quanex BuildingProducts’ businesses an extension of theirown enterprises.

MARKET POSITIONS

Quanex Building Products targets nichesof the North American window and doorand construction markets where it canpartner with customers to provide themwith customized solutions through a fullorchestration of industry-leading prod-ucts and services. This approach providesdifferentiation and earns the Company apreferred and, in many cases, exclusivesupply relationship with many of the bestknown brands in the industry. Customersturn to the experience and expertise ofQBP to address their product design andmanufacturing challenges when develop-ing new and cutting-edge products.

GROWTH STRATEGY

Quanex Building Products’ strategy is togrow both organically and through strate-gic acquisitions. The Company continuesto gain sales through partnerships with agrowing number of both domestic andglobal customers, and the introduction ofinnovative new products. In addition,Quanex Building Products continues toseek acquisitions of businesses that produceproducts that serve similar or adjacentmarkets in North America, Europeand Asia.

PRO FORMADILUTED EARNINGS PER SHAREFROM CONTINUING OPERATIONS

in Dollars

$1.00

’05 ’06 ’07

$2.00

*

PRO FORMANET SALES

in Millions

$800

$600

$400

$200

’05 ’06 ’07

$1,000

*

PRO FORMAOPERATING INCOME

in Millions

$80

$60

$40

$20

’05 ’06 ’07

$100

*

2*Source: Quanex BuildingProducts Form 10–12(b)filed January 11th, 2008

Fiscal year ended October 31,2007 2006 2005

(in thousands except share data)

. . . . . . . $ 963,975 $ 1,043,773 $ 951,819

. . . . . . . 88,614 103,805 101,965

. . . . . . . 57,411 64,284 61,969

m. . . . . . . $ 1.53 $ 1.69 $ 1.61

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3

• Largest manufacturer of extruded PVCproducts and accessories for window anddoor OEMs in the U.S.

• 4 production facilities

• Customer-specific PVC andcomposite profiles

• Impact resistant window anddoor components

• In-house window system designand testing

• Precision extrusion tooling designand manufacture

• In-house compound developmentand blending

•163 extrusion lines

• 35% share of U.S. vinyl new construction• 15% share of U.S. vinyl remodel/

replacement• 25% share of total U.S. vinyl market

• Scrap-based mini-mill manufacturer ofcoated and mill finish aluminum sheetproducts.

• 4 production facilities

• Mill finish aluminum sheet• Coated aluminum sheet

• 360 million lbs annual finished capacity• Cold rolling to gauge, annealing to

temper, leveling, custom coating andslitting

• 15% share of building and construction• 10% share of truck-trailer• 20% share of machinery and equipment• 5% share of electrical

DESCRIPTION

SIZE

MANUFACTURINGCAPABILITIES

ESTIMATED* MARKETPOSITION

KEYPRODUCTS

NICHOLS ALUMINUM PVC EXTRUDED WINDOW ANDDOOR PRODUCTS

ALUMINUM SHEETBUILDING PRODUCTS ENG

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*Based on 2007 data4

INSULATED GLASS SEALANT SYSTEMSWINDOW AND DOORFENESTRATION COMPONENTS

• Manufactures screens, grilles, thresholds,astragals and roll formed products forwindow and door manufacturers. Alsomanufactures architectural wood moldings.

• 8 production facilities

• Window and door screens• Wood window grilles• Door thresholds and astragals• Architectural moldings• Cladding• Window muntin and divided light grilles

• Roll forming• Slitting• Laser welding• Stamping• Coating• RolltrusionTM

• Wood molding• Component assembly

• 45% of wood patio door screens• 30% of wood window screens• 25% of roll-formed spacers• 10% of entry door thresholds

• Manufactures composite spacer products andsealants for fabricating windows and doors.Also manufactures insulating glass assemblyequipment.

• 2 production facilities• China startup (est. 12/08)

• Flexible Insulated Glass spacer systems• Insulating glass, window and door accessories• Besten fully automatic and manual insulating

glass fabrication equipment

• 21 extrusion lines• One continuous process mixing system• 10 conventional bulk mixers• State-of-the-art pilot plant facility• Research and development facility

• Large, diversified base of 800 customers inNorth America and another 200 globally

• 20% share of North America window & doormarket (footage)

• 50% share of U.S. window new construction• 10% share of U.S. window remodel/replacement

ENGINEERED BUILDING PRODUCTS

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RAYMOND A. JEANChairman, President and Chief Executive Officer

THOMAS M. WALKERSenior Vice President — Finance and Chief Financial Officer

KEVIN P. DELANEYSenior Vice President — General Counsel and Secretary

CORPORATE OFFICERS

Nichols AluminumDavenport and General Office1725 Rockingham RoadDavenport, Iowa 52802(563) 324-2121

Nichols Aluminum Alabama2001 Highway 20 WestDecatur, Alabama 35601(256) 353-1550

Nichols Aluminum Casting2101 J.M. Morris Blvd.Davenport, Iowa 52802(563) 322-0118

Nichols Aluminum Lincolnshire200 Schelter RoadLincolnshire, Illinois 60069(847) 634-3150

ALUMINUM SHEET BUILDING PRODUCTS

ENGINEERED BUILDING PRODUCTS

Mikron

Homeshield

Truseal Technologies

JOHN J. MANNIONVice President — Treasurer

PAUL A. HAMMONDSVice President — Corporate Development

BRENT L. KORBVice President — Corporate Controller

Mikron West (2)1034 Sixth Avenue NorthKent, Washington 98032(253) 854-8020

Mikron East100 Mikron WayRichmond, Kentucky 40475(859) 623-2643

Mikron Midwest501 North Elida StreetWinnebago, Illinois 61088(815) 335-2372

HOMESHIELD West Coast250 Steelhead WayThe Dalles, Oregon 97058(541) 298-1200

HOMESHIELD Richmond451 Industrial ParkwayRichmond, Indiana 47374(765) 966-0322

HOMESHIELD Rice Lake311 West Coleman StreetRice Lake, Wisconsin 54868(715) 234-9061

HOMESHIELD Chatsworth (2)7942 North 3350 East RoadChatsworth, Illinois 60921(815) 635-3171

HOMESHIELD Mounds View2270 Woodale DriveMounds View, Minnesota 55112(763) 231-4000

HOMESHIELD Luck501 Main StreetLuck, Wisconsin 54853(715) 472-2223

HOMESHIELD Dubuque1111 Purina DriveDubuque, Iowa 52001(563) 582-1472

Truseal Technologies6680 Parkland BoulevardSolon, Ohio 44139(216) 910-1500

Truseal Technologies403 Treuhaft BoulevardBarbourville, Kentucky 40906(606) 546-7300

5

Besten Equipment, Inc.6680 Parkland BoulevardSolon, Ohio 44139(216) 581-1166

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1900 WEST LOOP SOUTH

SUITE 1500

HOUSTON, TEXAS 77027

713.961.4600WWW.QUANEX.COM

MARKET DRIVEN

PROCESS BASED

NX NYSE

38025_PF 7/29/08 10:14 AM Page 1