Roadshow Presentation

2006 Initial Public Offering

Safe Harbor Statement

Some of the statements in this presentation constitute “forward-looking statements” about Houston Wire & Cable Company. Such statements include, in particular, statements about our plans, strategies, business prospects, changes and trends in our business and the markets in which we operate. These statements can be identified by the fact that they do not relate strictly to historical or current facts. They use words such as “aim,” “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “project,” “should,” “will be,” “will continue,” “will likely result,” “would,” and other words and terms of similar meaning in conjunction with a discussion of future operating or financial performance. These statements represent our present expectations or beliefs concerning future events and are not guarantees. Such statements speak only as of the date they are made, and we do not undertake any obligation to update any forward-looking statement.

We caution that forward-looking statements involve risks and uncertainties and are qualified by important factors that could cause actual events or results to differ materially from those expressed or implied in any such forward-looking statements. The Prospectus delivered in connection with this offering describes some of these factors under the heading “Risk Factors.” Although we believe that our expectations are based on reasonable assumptions, actual results may differ materially from those in the forward looking statements as a result of various factors, including, but not limited to, those described under the heading “Risk Factors” and elsewhere in the Prospectus. Before you invest in our common stock, you should read the Prospectus completely and with the understanding that our actual future results may be materially different from what we expect.

1

Offering Summary

2

Introduction

Company Overview

• One of the largest specialty wire and cable distributors in the U.S.

• Comprehensive value-added services

• Broad, deep product offering - distributed approximately 20,000 SKUs in 2005

• Majority of business driven by MRO applications, while complemented by new capital projects

• Successfully penetrating target vertical markets: utility, industrial and infrastructure

• Private branded products led by LifeGuardTM

• Tenured management team

3

$11.2$18.0

$55.7

$41.3$35.1

$0

$20

$40

$60

$80

2003 2004 2005 Q1 '05 Q1 '06

$43.1$66.4

$214.0

$172.7$149.1

$0

$100

$200

$300

2003 2004 2005 Q1 '05 Q1 '06

Strong Financial Momentum

Sales Gross Profit

($ in millions)

Operating Income(1) Net Income(1)

$3.2

$9.0

$22.1

$10.9

$4.7

$0

$10

$20

$30

2003 2004 2005 Q1 '05 Q1 '06

$1.6

$4.8

$12.1

$4.4

$0.2$0

$5

$10

$15

$20

2003 2004 2005 Q1 '05 Q1 '06

CAGR 20%

Growth 54%

CAGR 678%

Growth 200%

CAGR 26%

Growth 61%

CAGR 117%

Growth 181%

(1) Excludes litigation settlement income of $650,000 in 2004 and $672,000 in both 2005 and Q1 2005.4

Investment Highlights

• Industry Leading Performance• Double digit organic sales growth

• Double digit EBIT margin

• Attractive Industry Dynamics• $74 billion industry growing at 2x GDP

• Growth driven by new and upgraded infrastructure

• Opportunity to Capture Market Share• First mover advantage with LifeGuardTM Cable

• Strong Competitive Position• Market leader with national distribution network

• 30+ year operating history

• Investment in integrated IT system

• Significant barriers to entry

• Critical link in the supply chain for specialty wire and cable

We believe this is the right industry, right company and right time to invest in Houston Wire & Cable Company

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Right Industry

• $74 billion electrical distribution market expected to grow 7.9% in 2006

– 5.1% CAGR over last 20 years

• $7.0 billion market in 2004 for specialty wire and cable

– Specialty wire and cable typically ranges from 1% to 3% of capital value of investment

Strong Market Dynamics

Full-Line Electrical

Distributors

Niche Distributors Other Channels

• Largest segment of the electrical distribution market

• Example firms: GE Supply, Graybar, WESCO

• Includes niche providers of products and services

• Includes HWC and other specialty wire and cable providers

• Includes distributors from other segments

Other CustomersPrimary Customers

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Specialty Wire and CableDistributor

Sales Channel for Specialty Wire and Cable

Manufacturers versus Specialty Distributors

• Transactions that require customization and high service levels are more likely to involve a specialty wire and cable distributor such as HWC

Bulk Orders Customized Orders

Limited Product Availability

Broad Product Availability

Minimum Service LevelsComprehensive Service

Offering

No Inventory Management

Inventory Management

Long Lead Times Same Day Shipment

Manufacturer

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Right Company

Critical Role in the Supply Chain for Specialty Wire and Cable

We Offer Manufacturers

We Offer Customers

We OfferEnd Users

• Efficient order sizes

• Nationwide sales and marketing presence

• Knowledgeable technical support personnel

• Preservation of market share

• Incremental revenue

• Restricted brands

• Short lead times

• National distribution platform

• Elimination of inventory and warehouse investment

• Approximately 20,000 SKUs

• Application engineering

• Just-in-time shipment

• Custom lengths; minimize waste

• Cable management programs

• Internet-based inventory access

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Specialized Product Offering

• Extensive array of specialty wire and cable

• Approximately 20,000 SKUs with 45,000 reels in stock

• High quality products from leading manufacturers

• Large inventory facilitates same day shipment

• Custom cut products that are ready for use at destination site

• Exclusive supplier of LifeGuardTM and other

private branded products

Control & Power

Electronic

Flexible & Portable Cords

Instrumentation & Thermocouple

Medium Voltage

Continuous Armor

Interlocked Armor

Lead Wire & High Temperature

Category & Premise9

National Distribution Network

• Eleven strategically located distribution facilities

• 24/7/365 nationwide customer service

• 516,000 total square feet

• Capacity for significant additional sales volume

• Inventory customized by region

• 100% bar-coded inventory

• Centrally managed purchasing, logistics, accounting and administration

• ISO 9001:2000 processes

• Drive for “Best-in-Class” through continuous improvement

• Shipping accuracy 99.9%

• Order accuracy 99.9%

• 94% customer satisfaction

Focus on Operational Excellence

10

Houston Headquarters and Distribution Center

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Experienced Management Team

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Formidable Barriers to Entry

24/7/365 Service

94% CustomerSatisfaction

Str

ong

Bal

ance

S

heet

Restricted Lines

Long

-Ter

m

Relatio

nship

sSpecialized

Sales Force

Broad

and

Deep

Inve

ntor

y

National

Platform

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Growth Strategies

Acquisitions • Opportunistically pursue acquisitions

Operational Excellence

• Continue operational excellence to drive industry leading efficiencies

LifeGuardTM • Leverage proprietary LifeGuardTM market opportunity

Sales Force Expansion

• Implement pull through strategy

New Target Markets

• Penetrate new target markets through realigned marketing efforts

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$4 Billion Estimated Addressable Annual Wire & Cable Market Size

Substantial Organic Growth Opportunities With New Markets

Market Opportunity

Traditional Market

Engineering & Construction

Utility• Power Generation• Environmental Compliance

Proprietary ElectronicCable

Targeted Industrials

LifeGuardTM

Opportunity

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Leverage Proprietary LifeGuardTM Market Opportunity

• Estimated $1.75 billion potential U.S. market (assumes similar penetration rates as European and Asian markets)

• Demonstrated market acceptance of low-smoke, zero-halogen products in Europe and Asia for many years

• First-mover advantage in low-smoke, zero-halogen products in the U.S.

• LifeGuardTM already accepted for use by over 300 end-users in the U.S.

• Significant market opportunity across vertical markets

– Power generation, wastewater treatment, data centers, etc.

• Proprietary product construction

• Significant barriers to entry

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Benefits of LifeGuardTM Cable

• Benefits of low-smoke, zero-halogen compounds in the event of fire

– Emits minimal smoke

– Eliminates toxicity from halogenated acid gases

– Protects equipment from corrosion caused by halogenated acid gases

• Ideal for use in environments where high-performance, reliability, and equipment protection are required

Conventional Cable

Low Smoke Zero Halogen Cable

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Penetrate New Target Markets

Communications

General Manufacturing

Transportation

Energy

Infrastructure

Utility

Wastewater Treatment

Petrochemical

Engineering & Construction

Infrastructure Market

• Engineering and construction firms overseeing active projects totaling approximately $221 billion

• Continued construction of wastewater treatment facilities estimated at $25 to $41 billion annually

• Capital investment in oil and gas infrastructure is expected to total approximately $6 trillion through 2030

Utility Market

• Power generating facilities needed to parallel population growth

• Continued increases in energy demands

– World energy consumption is expected to increase over 50% by 2030, requiring $17 trillion of investment ($625 billion per year)

• Federally mandated pollution control projects

Industrial Market

• Growth in diverse manufacturing and production industries

• Productivity and capacity expansion

• Recurring and increasing levels of MRO needs

Key Drivers in Target Markets

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Implement Pull Through Strategy

• Sales channel expansion initiative was implemented in 2003 to leverage the strength of HWC's product and service platforms and market position

• Increased outside sales resources and sales force, while introducing new management systems

• Realigned compensation structure

Pull through strategy creates valuable sales partnership with electrical distributor customers

Electrical Distribution

Other Channels

Targeted Industrials

Engineering & Construction

Industrial Contractors Utilities

e.g., OEMs, International, Industrial Distributors

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Operational Excellence Drives Industry Leading Efficiencies

(1) Performance Analysis Review (“PAR”), issued by the National Association of Electrical Distributors (“NAED”), results reflect 2005 industry data for typical electrical distributors.

As compared with typical electrical distributors…

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Operational Excellence Drives Industry Leading Efficiencies

As compared with the most recent results for select industry participants…

12.4%

22.1%27.7%

54.1%

0%

10%

20%

30%

40%

50%

60%

HWC WESCO Anixter Belden

Q1 ’06 Sales Growth (YOY)

20.0%22.8%24.0%

27.1%

0%

5%

10%

15%

20%

25%

30%

HWC Anixter Belden WESCO

Q1 ’06 Gross Margin

5.6%6.1%

8.4%

13.5%

0%2%4%

6%8%

10%12%

14%16%

HWC Belden WESCO Anixter

Q1 ’06 Operating Income Margin

2.1%2.9%

4.6%

10.1%

0%

2%

4%

6%

8%

10%

12%

HWC WESCO Anixter Belden

Q1 ’06 Operating Income to Total Assets

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Financial Overview

• Following a strategic acquisition in 2000, management focused on business integration and customer rationalization

• Strong momentum from 2003 to 2005 driven by new growth initiatives

– Organic sales CAGR of 20%

– Operating income CAGR of 117%

– Net income CAGR of 678%

• Capital expenditures less than 1% of sales

• Strong free cash flow

• Profitability enhancements

Financial Highlights

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Profitability Enhancements

Increased gross margins driven by favorable product mix and vendor rebates

Gross Margin

21.0%

22.0%

23.0%

24.0%

25.0%

26.0%

27.0%

28.0%

2003 2004 2005 Q12006

Gro

ss M

arg

in

Operating Expenses as a Percentage of Sales *

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

2003 2004 2005 Q12006

Op

erat

ing

Exp

ense

s as

a %

of

Sal

es

Operating Margin *

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

2003 2004 2005 Q12006

Op

erat

ing

Mar

gin

Increased efficiencies and reduced operating expenses as a % of sales

Significant increases in operating margin

* Excludes litigation settlement income of $650,000 and $672,000 in 2004 and 2005, respectively.

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Financial Summary - 2003 to Q1 2006

(1) Interest expense in Q1 2006 reflects additional debt used to fund a $20 million dividend payment on December 30, 2005.

Three Months EndedFiscal Year Ended December 31, March 31,

2003 2004 2005 2005 2006

Sales $149,084 $172,723 $213,957 $43,106 $66,428

Cost of sales 113,959 131,419 158,240 31,949 48,437

Gross Profit 35,125 41,304 55,717 11,157 17,991

Operating expenses:

Salaries and commissions 14,588 16,665 18,707 4,289 5,072

Other operating expenses 13,857 12,392 14,016 3,408 3,748

Management fee 502 501 500 125 125

Litigation settlement 0 (650) (672) (672) 0

Depreciation and amortization 1,481 876 398 110 93

Total operating expenses 30,428 29,784 32,949 7,260 9,038

Operating income 4,697 11,520 22,768 3,897 8,953

Interest expense 4,186 3,544 2,955 713 1,054 (1)

Income before income taxes 511 7,976 19,813 3,184 7,899

Income tax provision 295 3,167 7,299 1,173 3,097

Net income $216 $4,809 $12,514 $2,011 $4,802

Fully Diluted EPS $0.01 $0.29 $0.69

($ in thousands)

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Capitalized for Continued Growth

($ in thousands)

25

Right Time

Maximize Shareholder

Value

Right Time to Invest

Double-Digit Organic Growth

Strong Cash Flows

Industry Leading EBIT

Margins

Invest in Growth Strategies

Operational Excellence

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