WASHINGTON, D.C. 20549

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MMI Products, Inc. ("MMI") is a wholly owned subsidiary of Merchants Metals Holding Company ("MMHC"). MMI is a manufacturer and distributor of products used in the residential, commercial and infrastructure construction industries within the United States. The manufactured products in each of MMI's product lines are produced primarily from the same raw material, steel rod. MMI's customers include contractors, fence wholesalers, industrial manufacturers, highway construction contractors and fabricators of reinforcing bar. The accompanying unaudited financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission. Accordingly, certain information and footnote disclosures normally included in annual financial statements prepared in accordance with generally accepted accounting principles have been omitted. These financial statements should be read in conjunction with MMI's annual financial statements for the year ended January 1, 2000 included in the Form 10-K filed with the Securities and Exchange Commission on March 31, 2000.

In the opinion of management, the financial statements contain all adjustments, consisting only of normal recurring adjustments, considered necessary to present fairly the financial position of MMI as of April 1, 2000 and the results of its operations and its cash flows for the respective periods ended April 1, 2000 and April 3, 1999. Interim results for the three months ended April 1, 2000 are not necessarily indicative of results that may be expected for the fiscal year ending December 30, 2000.

On February 3, 2000, MMI purchased all of the issued and outstanding stock of Hallett Wire Products Company, a Minnesota corporation ("Hallett"). Hallett manufactured welded wire mesh at facilities located in St. Joseph, Missouri and Kingman, Arizona. Hallett had net sales of approximately $37 million for the year ended December 31, 1999. The total acquisition price was $40 million in cash and was funded by the MMI's revolving credit facility. To facilitate the purchase, the revolving credit facility was increased from $48.5 million to $75 million on February 3, 2000. On February 9, 2000 Hallett merged with and into MMI.

Inventories consisted of the following:

MMI has five operating units that are aggregated into two reportable segments; Fence and Concrete Construction Products. The Fence Segment has three operating units that offer similar products and services. The Concrete Construction Products Segment has two operating units that offer complimentary products and services within the concrete construction industry.

Summarized financial information concerning the reportable segments is shown in the following table. The Corporate column for earnings before interest and income taxes represents amortization of intangibles and nonrecurring items. Corporate general and administrative expenses are allocated to the segments based upon proportional net sales.

5. Commitments and Contingencies

MMI is involved in a number of legal actions arising in the ordinary course of business. MMI believes that the various asserted claims and litigation in which it is involved will not materially affect its financial position or future operating results, although no assurance can be given with respect to the ultimate outcome of any such claim or litigation.

Net sales for the three months ended April 1, 2000 increased $16.8 million or 16.4% to $119.8 million from $102.9 million for the same period of the prior fiscal year. The fence products segment contributed $9.6 million of the total net sales increase, of which $4.8 million was attributable to the acquisition of National Wholesale Fence Supply, Inc. ("National Wholesale") in June 1999. The fence segment also benefited from continued growth from the expansion of its distribution network by four locations during 1998. The concrete construction products segment contributed $7.2 million of the total net sales increase, of which $6.1 million is from the acquisition of Hallett Wire Products Company ("Hallett") in February 2000, and, $0.6 million is from the concrete accessory product line, from the acquisition of Reforce Steel and Wire Corporation ("Reforce") in December 1999. The segment's sales, excluding these acquisitions, have increased primarily due to strong demand in bracing devices for tilt-up walls, paving products, and anchoring systems. These increases in concrete accessories are partially offset by declines in mesh product sales due to a delay in some job starts by contractors.

Gross profit as a percentage of sales increased from 17.5% in the first quarter of 1999 to 19.3% in the first quarter of 2000. Both the fence and concrete construction products segments have benefited from lower raw material costs and a change in product mix to higher margin products, as a result of the recent acquisitions.

Selling, general, administrative and other expenses as a percentage of net sales increased 0.5% for the three months ended April 1, 2000 from the corresponding period of the prior fiscal year. Primary factors contributing to the increase were professional fees for tax consultations and the upgrade of accounting system software, the establishment of divisional accounting, credit and systems departments, and transitional expenses relating to the Hallett acquisition. Mitigating the increase was the non-recurrence of a February 1999 manufacturing plant casualty loss.

Interest expense increased $0.6 million to $5.3 million for the three months ended April 1, 2000 from $4.7 million for the corresponding period of the prior fiscal year. The increases were principally due to higher levels of invested capital as a result of business acquisitions in June 1998, December 1999 and February 2000 and the issuance of an additional $30 million of 11.25% Senior Subordinated Notes in February 1999.

Net income for the three months ended April 1, 2000 was $3.7 million compared to net income of $2.4 million for the corresponding period of the prior fiscal year. The increase was primarily a result of the factors discussed above partially offset by the effective income tax rate increase in the first quarter of 2000 as the premium paid for the stock of Hallett Wire Products Company will not be deductible for federal income tax purposes.

Cash Flows. For the three months ended April 1, 2000, operating activities used net cash of approximately $0.7 million. Seasonal increases in net operating assets of $6.7 million and a decrease in the amount Due to MMHC of $0.5 million were partially offset by operating cash flow of $6.4 million provided by net income adjusted for non-cash items such as depreciation, amortization, and other non-cash charges and the increase in other long-term assets. Investing activities utilized approximately $41.8 million of cash, principally consisting of the acquisition of Hallett and capital expenditures for expansion, improvement and replacement of property, plant, and equipment. Financing activities provided approximately $42.4 million of cash, primarily for the purchase of Hallett.

EBITDA is a widely accepted financial indicator of a Company's ability to service and incur debt. MMI's EBITDA for the first three months of fiscal year 2000 and 1999 was $14.7 million and $10.8 million, respectively. The increase in EBITDA is primarily due to higher income before interest and income taxes due to the changes in net sales, gross profit and selling, general and administrative expenses discussed in "Results of Operations" above. EBITDA should not be considered in isolation from or as a substitute for net income or cash flow measures prepared in accordance with generally accepted accounting principles or as a measure of a Company's profitability or liquidity. EBITDA is defined as the sum of income before interest, income taxes, depreciation and amortization.

MMI expects that cash flows from operations and the borrowing availability under its revolving credit facility will provide sufficient liquidity to meet its normal operating requirements, capital expenditure plans and existing debt service.

MMI has pursued and intends to continue to pursue a strategy of business acquisitions that will broaden its distribution network, complement or extend its existing product lines or increase its production capacity. The borrowing availability under its revolving line of credit facility and its additional borrowing capability (which MMI believes is justified by its financial position and operating cash flows) are expected to be the financing sources for such acquisitions. It is possible that, depending on MMI's future operating cash flows and the size of potential acquisitions, MMI will seek additional sources of financing subject to limitations set forth in its senior subordinated notes indenture.

MMI's products are used in the commercial, infrastructure, and residential construction industries. These industries are both cyclical and seasonal, and changes in demand for construction services have a material impact on MMI's sales and profitability. The highest level of sales and profitability occur during the times of the year when climatic conditions are most conducive to construction activity. Accordingly, sales will typically be higher in the second and third quarters and will be lower in the first and fourth quarters.

The statements contained in this report which are not historical facts, including, but not limited to, statements found under the caption "Management's Discussion and Analysis of Financial Condition and Results of Operations" above, are forward looking statements that involve a number of risks and uncertainties. The actual results of the future events described in such forward looking statements in this report could differ materially from those contemplated by such forward looking statements. Among the factors that could cause actual results to differ materially are the risks and uncertainties discussed in the report, including without limitations, the portions of such statements under the caption referenced above, and the uncertainties set forth from time to time in MMI's other public reports and filings and public statements.

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Item 6. EXHIBITS AND REPORTS ON FORM 8-K

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Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

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