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                                                                    EXHIBIT 99.2

                                  NEWS RELEASE


FOR IMMEDIATE RELEASE        CONTACT:    Michael C. Gazmarian
                                         Chief Financial Officer and Treasurer
                                         Insteel Industries, Inc.
                                         336-786-2141, Ext. 3020



             INSTEEL INDUSTRIES, INC. ADOPTS SHAREHOLDER RIGHTS PLAN



MOUNT AIRY, NC -- April 27, 1999 - Insteel Industries, Inc. (NYSE:III), today
announced that its Board of Directors has approved the adoption of a Shareholder
Rights Plan under which all shareholders of record as of May 17, 1999, will
receive rights to purchase shares of a new series of Preferred Stock.

The Rights Plan is designed to enable all Insteel shareholders to realize the
full value of their investment and to provide for fair and equal treatment for
shareholders in the event that an unsolicited attempt is made to acquire
Insteel. The adoption of the Rights Plan is intended as a means to guard against
abusive takeover tactics and is not in response to any particular proposal.

The rights will be distributed as a non-taxable dividend and will expire in ten
years. The rights will be exercisable only if a person or group acquires 20
percent or more of Insteel's common stock or announces a tender
offer for 20 percent or more of the stock.

If a person or group acquires 20 percent or more of Insteel's common stock, all
shareholders except the purchaser will be entitled to acquire Insteel stock at a
50 percent discount. The effect will be to discourage acquisitions of more than
20 percent of Insteel stock without negotiations with the Board.

The rights will trade with Insteel common stock, unless and until they are
separated upon the occurrence of certain future events. The rights distribution
is not taxable to the shareholders. Insteel's Board of Directors may redeem the
rights prior to the expiration of a specified period following the acquisition
of more than 20 percent of Insteel stock. Additional details regarding the
Rights Plan will be outlined in a summary to be mailed to all shareholders
following the Record Date.

Insteel Industries manufactures and markets concrete reinforcing products,
industrial wire, nails, tire bead wire and welding wire. The company's products
are used in construction, industrial, appliance and home furnishings
applications.