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Icahn Enterprises L.P. Reports Strong First Quarter 2013 Financial Results

EBITDA, Adjusted EBITDA, EBIT and Adjusted EBIT are not measurements of our financial performance under U.S. GAAP and should not be considered as alternatives to net income or any other performance measures derived in accordance with U.S. GAAP or as alternatives to cash flow from operating activities as a measure of our liquidity. Given these limitations, we rely primarily on our U.S. GAAP results and use EBITDA, Adjusted EBITDA, EBIT and Adjusted EBIT only as a supplemental measure of our financial performance.

Use of Indicative Net Asset Value Data

The Company uses the indicative net asset value of the depository units as an additional method for considering the value of the units, and we believe that this information can be helpful to investors. Please note, however, that the indicative net asset value of the units does not represent the market price at which the units trade. Accordingly, data regarding indicative net asset value is of limited use and should not be considered in isolation.

The Company's depository units are not redeemable, which means that investors have no right or ability to obtain from the Company the indicative net asset value of units that they own. Units may be bought and sold on The NASDAQ Global Select Market at prevailing market prices. Those prices may be higher or lower than the indicative net asset value of the units as calculated by Management. 

See below for more information on how we calculate the indicative net asset value of the Company's depository units.
Indicative Net Asset Value Calculation    
     
($ in millions, except per unit) March 31, December 31,
  2013 2012
Market-valued Subsidiaries: (Unaudited)
Holding Company interest in Funds (1)  $2,613 $2,387
CVR Energy (2)  3,675 3,474
CVR Refining – direct holding (2)  139 --
Federal-Mogul (2)  462 615
American Railcar Industries (2)  555 377
Total market-valued subsidiaries  $7,444 $6,853
     
Other Subsidiaries    
Tropicana (3)  $551 $488
Viskase (3)  277 268
Real Estate Holdings (4)  696 763
PSC Metals (4)  334 338
WestPoint Home (4)  207 256
Total - other subsidiaries  $2,065 $2,113
Add: Holding Company cash and cash equivalents (5)  755 1,047
Less: Holding Company debt (6)  (3,525) (4,082)
Add: Other Holding Company net assets (7)  137 63
Indicative Net Asset Value  $6,876 $5,993
     
Units Outstanding (8)  110.2 107.0
Indicative Net Asset Value Per Unit $62.39 $56.02
     
     
Indicative net asset value does not purport to reflect a valuation of IEP. The calculated Indicative net asset value does not include any value for our Investment Segment other than the fair market value of our investment in the Investment Funds. A valuation is a subjective exercise and Indicative net asset value does not necessarily consider all elements or consider in the adequate proportion the elements that could affect the valuation of IEP. Investors may reasonably differ on what such elements are and their impact on IEP. No representation or assurance, express or implied is made as to the accuracy and correctness of indicative net asset value as of these dates or with respect to any future indicative or prospective results which may vary. 
     
(1)  Fair market value of Holding Company's interest in the Funds and Investment segment cash as of each respective date.
(2)  Based on closing share price on each date and the number of shares owned by the Holding Company as of each respective date.
(3)  Amounts based on market comparables due to lack of material trading volume. Tropicana valued at 9.0x and 8.0x Adjusted EBITDA for the twelve months ended March 31, 2013 and the twelve months ended December 31, 2012, respectively. Viskase valued at 11.0x Adjusted EBITDA for the twelve months ended March 31, 2013 and the twelve months ended December 31, 2012. 
(4)  Represents equity attributable to us as of each respective date.
(5)  Holding Company's cash and cash equivalents balance as of each respective date.
(6)  Represents Holding Company debt as reported on March 31, 2013, adjusted for the defeasance of the Convertible Notes and December 31, 2012.
(7)  Represents Holding Company net assets as reported on March 31, 2013, adjusted for the defeasance of the Convertible Notes and December 31, 2012.
(8)   LP Units Outstanding and the GP Unit equivalent as of each respective date.
   
($ in millions) Three Months Ended March 31,
  2013 2012
Consolidated Adjusted EBITDA: (Unaudited)
Net income  $695 $101
Interest expense, net  133 115
Income tax (benefit) expense  120 (30
Depreciation and amortization  155 100
Consolidated EBITDA  $1,103 $286
Impairment of assets  2
Restructuring costs  8 7
Non-Service cost US based pensions  2 10
Unfavorable FIFO impact  (5)
Unrealized (gain)/loss on derivatives  (32)
Stock-based compensation  12
Loss on discontinued operations  47
Other  (2) 5
Consolidated Adjusted EBITDA $1,133 $310
     
IEP Adjusted EBITDA:     
Net income attributable to IEP  $277 $49
Interest expense, net  119 103
Income tax (benefit) expense  93 (36)
Depreciation and amortization  114 78
EBITDA attributable to IEP  $603 $194
Impairment of assets  2
Restructuring costs  6 6
Non-Service cost US based pensions  2 8
Unfavorable FIFO impact  (5)
Unrealized (gain)/loss on derivatives  (26)
Stock-based compensation  7
Loss on discontinued operations  36  
Other  (2) 3
Adjusted EBITDA attributable to IEP  $621 $213
   
($ in millions) Three Months Ended March 31,
  2013 2012
Consolidated Adjusted EBIT: (Unaudited)
Net income  $695 $101
Interest expense, net  133 115
Income tax (benefit) expense  120 (30)
Consolidated EBIT  $948 $186
Impairment of assets  2
Restructuring costs  8 7
Non-Service cost US based pensions  2 10
Unfavorable FIFO impact  (5)
Unrealized (gain)/loss on derivatives  (32)
Stock-based compensation  12
Loss on discontinued operations  47
Other  (2) 5
Consolidated Adjusted EBIT  $978 $210
     
IEP Adjusted EBIT:     
Net income attributable to IEP  $277 $49
Interest expense, net  119 103
Income tax (benefit) expense  93 (36)
EBIT attributable to IEP  $489 $116
Impairment of assets  2
Restructuring costs  6 6
Non-Service cost US based pensions  2 8
Unfavorable FIFO impact  (5)
Unrealized (gain)/loss on derivatives  (26)
Stock-based compensation  7
Loss on discontinued operations  36
Other  (2) 3
Adjusted EBIT attributable to IEP  $507 $135
CONTACT: Investor Contacts:
         SungHwan Cho, Chief Financial Officer
         Peter Reck, Chief Accounting Officer
         (212) 702-4300

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