Ownership Submission
FORM 4
Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP OF SECURITIES

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940
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(Print or Type Responses)
1. Name and Address of Reporting Person *
WOLTZ H O III
   2. Issuer Name and Ticker or Trading Symbol
INSTEEL INDUSTRIES INC [IIIN] 		5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)
__X__ Director _____ 10% Owner
__X__ Officer (give title below) _____ Other (specify below)
Chairman, President and CEO
(Last)
(First)
(Middle)
1373 BOGGS DRIVE		 3. Date of Earliest Transaction (Month/Day/Year)
02/20/2013
(Street)

MOUNT AIRY, NC 27030		 4. If Amendment, Date Original Filed(Month/Day/Year)
 6. Individual or Joint/Group Filing(Check Applicable Line)
_X_ Form filed by One Reporting Person
___ Form filed by More than One Reporting Person
(City)
(State)
(Zip)
Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1.Title of Security
(Instr. 3)		 2. Transaction Date (Month/Day/Year) 2A. Deemed Execution Date, if any (Month/Day/Year) 3. Transaction Code
(Instr. 8)		 4. Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4 and 5)		 5. Amount of Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 3 and 4)		 6. Ownership Form: Direct (D) or Indirect (I)
(Instr. 4)		 7. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code V Amount (A) or (D) Price
Common Stock 02/20/2013   M   9,605 A $ 9.12 469,988 D  
Common Stock 02/20/2013   S   5,000 D $ 17 464,988 D  
Common Stock 02/20/2013   S   180 D $ 17.05 464,808 D  
Common Stock 02/21/2013   M   4,186 A $ 9.12 468,994 D  
Common Stock 02/21/2013   S   2,000 D $ 16.1 466,994 D  
Common Stock 02/21/2013   S   389 D $ 16.2 466,605 D  
Common Stock (2)               8,513 I co-executor of Howard O. Woltz, Jr. Estate
Common Stock (2)               365,130 I co-trustee of trusts established by Howard O. Woltz, Jr.
Common Stock (2)               21,222 I Custodial account for minor child
Common Stock (Restricted Stock Units)               77,704 D  

Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
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Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security
(Instr. 3)		 2. Conversion or Exercise Price of Derivative Security 3. Transaction Date (Month/Day/Year) 3A. Deemed Execution Date, if any (Month/Day/Year) 4. Transaction Code
(Instr. 8)		 5. Number of Derivative Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4, and 5)		 6. Date Exercisable and Expiration Date
(Month/Day/Year)		 7. Title and Amount of Underlying Securities
(Instr. 3 and 4)		 8. Price of Derivative Security
(Instr. 5)		 9. Number of Derivative Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 4)		 10. Ownership Form of Derivative Security: Direct (D) or Indirect (I)
(Instr. 4)		 11. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code V (A) (D) Date Exercisable Expiration Date Title Amount or Number of Shares
Stock Option (Right to Buy) $ 9.12 02/20/2013   M     9,605   (1) 03/04/2015 Common Stock 9,605 $ 0 8,221 D  
Stock Option (Right to Buy) $ 9.12 02/21/2013   M     4,186   (1) 03/04/2015 Common Stock 4,186 $ 0 4,035 D  
Stock Option (Right to Buy) $ 16.45               (1) 02/12/2023 Common Stock 20,921   20,921 D  
Stock Option (Right to Buy) $ 10.23               (1) 08/21/2022 Common Stock 32,967   32,967 D  
Stock Option (Right to Buy) $ 13.06               (1) 02/21/2022 Common Stock 24,752   24,752 D  
Stock Option (Right to Buy) $ 10.72               (1) 08/08/2021 Common Stock 30,928   30,928 D  
Stock Option (Right to Buy) $ 12.43               (1) 02/08/2021 Common Stock 25,597   25,597 D  
Stock Option (Right to Buy) $ 9.16               (1) 08/09/2020 Common Stock 33,708   33,708 D  
Stock Option (Right to Buy) $ 9.39               (1) 02/09/2020 Common Stock 32,468   32,468 D  
Stock Option (Right to Buy) $ 11.6               (1) 08/10/2019 Common Stock 23,962   23,962 D  
Stock Option (Right to Buy) $ 11.15               (1) 02/19/2018 Common Stock 28,791   28,791 D  
Stock Option (Right to Buy) $ 7.55               (1) 02/10/2019 Common Stock 32,609   32,609 D  
Stock Option (Right to Buy) $ 16.69               (1) 08/19/2018 Common Stock 15,957   15,957 D  
Stock Option (Right to Buy) $ 17.11               (1) 02/13/2017 Common Stock 14,395   14,395 D  
Stock Option (Right to Buy) $ 20.27               (1) 08/13/2017 Common Stock 11,878   11,878 D  
Stock Option (Right to Buy) $ 20.26               (1) 08/14/2016 Common Stock 6,369   6,369 D  
Stock Option (Right to Buy) $ 15.64               (1) 02/14/2016 Common Stock 9,144   9,144 D  
Stock Option (Right to Buy) $ 6.89               (1) 07/26/2015 Common Stock 11,532   11,532 D  

Reporting Owners

Reporting Owner Name / Address Relationships
 Director  10% Owner  Officer  Other
WOLTZ H O III
1373 BOGGS DRIVE
MOUNT AIRY, NC 27030		   X     Chairman, President and CEO  

Signatures

 James F. Petelle for H. O. Woltz III   02/22/2013
**Signature of Reporting Person Date

Explanation of Responses:

* If the form is filed by more than one reporting person, see Instruction 4(b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
(1) Options vest 1/3 annually beginning one year from grant date.
(2) In addition to the gifts on November 3 and November 30, 2011, this Form also reflects the beneficial interest H. O. Woltz III is deemed to hold in the estate of his father, Howard O. Woltz, Jr., and in three trusts established by his father, following the death of his father on January 2, 2011. Mr. Woltz III disclaims beneficial interest in the shares held in the estate and in trust, except to the extent of his pecuniary interest therein.

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