<PAGE>

FIVE-YEAR SUMMARY Of Selected Financial Data And Operating Results--Continuing
Operations

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
Dollars in millions, except per share and per ton data          2000           1999          1998          1997          1996
------------------------------------------------------------------------------------------------------------------------------------
<S>                                                          <C>             <C>           <C>           <C>           <C>
Summary of Earnings
Net sales                                                    $  2,862.4      $ 2,763.5     $ 2,782.7     $ 2,804.0     $ 2,407.9
Gross profit                                                      569.7          631.9         625.8         626.0         564.2
Operating profit (loss)                                            (4.1)/(1)/     97.1/(2)/     96.0/(3)/    133.1/(4)/    110.7
Income (loss) before income taxes, minority interest,
 discontinued operations, and extraordinary loss                  (33.5)/(1)/     73.9/(2)/     83.0/(3)/    119.5/(4)/    128.5
Income (loss) from continuing operations                          (25.1)/(1)/     38.4/(2)/     47.7/(3)/     64.5/(4)/     78.1
Earnings (loss) per share-basic                                   (1.03)/(1)/     1.56/(2)/     1.03/(3)/     1.13/(4)/     1.42
Earnings (loss) per share-diluted                                 (1.03)/(1)/     1.56/(2)/     0.99/(3)/     1.08/(4)/     1.34

Financial Position at Year-End
Inventory-current value/(5)/                                 $    608.9      $   606.1     $   571.6      $1,013.1     $   900.6
Working capital                                                   418.3          610.5         572.0         660.2         691.0
Property, plant and equipment                                     274.7          273.2         293.6       1,641.8       1,637.0
Total assets                                                    1,372.1        1,387.2       1,391.0       3,646.5       3,541.6
Long-term debt                                                    100.7          258.8         257.0         704.9         773.2
Stockholders' equity                                              661.7          697.8         563.6         900.1         789.0

Financial Ratios
Inventory turnover-current value/(5)/                               3.4            3.7           3.8           4.0           4.2
Operating asset turnover                                            2.3            2.5           2.5           2.8           2.8
Operating profit on operating assets (OP/OA)                       (0.3)%          8.7%          8.6%         13.1%         13.0%
Return on ending stockholders' equity                              (3.8)           5.5           8.5           7.2           9.9

Volume and Per Ton Data
Tons shipped (000)                                                3,339          3,333         3,108         3,020         2,514
Average selling price per ton                                $      857      $     829     $     895      $    928     $     958
Gross profit per ton                                                171            190           201           207           224
Expenses per ton/(6)/                                               165            160           172           169           180
Operating profit per ton/(7)/                                         6             30            29            38            44

Profit Margins
Gross profit as a percent of sales                                 19.9%          22.9%         22.5%         22.3%         23.4%
Expenses as a percent of sales/(6)/                                19.2           19.3          19.3          18.2          18.8
Operating profit as a percent of sales/(7)/                         0.7            3.6           3.2           4.1           4.6

Other Data
Average number of employees                                       4,848          5,128         5,266         5,442         5,038
Tons shipped per average employee                                   689            650           590           555           499
Capital expenditures                                         $     34.7      $    31.6     $    40.1      $   41.3     $    25.1
Cash flow provided by (used for) operating activities             (62.7)          38.6         (29.0)         57.4          55.1
Dividends per common share                                         0.20           0.20          0.20          0.20          0.20
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

Data in the "Financial Position at Year-End" section for 1997 and 1996 include
amounts related to discontinued operations.

(1)    Includes restructuring and plant closure costs of $27.8 million pretax,
       bad debt expense for a single customer of $16.2 million pretax, and a
       $4.4 million pretax pension curtailment gain. Before these items,
       operating profit was $35.5 million, income before taxes was $6.1 million,
       income from continuing operations was $4.6 million, and basic and diluted
       income per share were $0.18.

(2)   Includes a $1.8 million pretax gain on the sale of assets and plant
      closure costs of $3.6 million. Before these items, operating profit was
      $98.9 million, income before income taxes was $75.7 million, income from
      continuing operations was $39.3 million, and basic and diluted earnings
      per share were $1.60.

(3)   Includes a $5.9 million pretax gain on the sale of assets. Before this
      gain, operating profit was $90.1 million, income before taxes was $77.1
      million, income from continuing operations was $44.0 million, and basic
      and diluted earnings per share were $0.94 and $0.90, respectively.

(4)   Includes an $8.9 million pretax pension curtailment gain and an $8.9
      million pretax gain on the sale of assets. Before these gains, operating
      profit was $115.3 million, income before taxes was $101.7 million, income
      from continuing operations was $55.0 million, and basic and diluted
      earnings per share were $0.94 and $0.90, respectively.

(5)   Current value of inventory consists of book value of inventory plus LIFO
      reserve.

(6)   Expenses are defined as operating expenses (excluding the restructuring
      charge) plus depreciation and amortization.

(7)   Operating profit is defined as gross profit minus expenses.



    8    Ryerson Tull, Inc. and Subsidiary Companies
<PAGE>

MANAGEMENT'S DISCUSSION OF OPERATIONS AND FINANCIAL CONDITION

The Company's primary business is metals distribution and processing. The
Company's operations changed substantially in 1998 as a result of the
disposition of the Company's steel manufacturing segment. In October 1998, the
boards of directors for both the Company and its majority-owned subsidiary,
Ryerson Tull, Inc. ("RT"), agreed to merge the companies through the process of
exchanging 0.61 share of the Company's common stock for each share of the RT
Class A common stock not held by either company. On February 25, 1999, the
merger of the two companies took place, pursuant to the approval of RT share -
holders at a special meeting. All references to RT in this financial review
refer to the pre-merger majority-owned subsidiary of the Company.

  The Company reported a loss from continuing operations in 2000 of $25.1
million, or $1.03 per share, as compared with income from continuing operations
of $38.4 million, or $1.56 per share, in 1999, and $47.7 million, or $0.99 per
share, in 1998. Included in the 2000 results were restructuring charges of $17.7
million after tax, or $0.71 per share, and an additional provision (discussed
below) of $12.3 million after tax, or $0.50 per share, to fully reserve for a
receivable from a company that filed for bankruptcy. The 1999 income from
continuing operations included $1.0 million after tax, or $0.04 per share,
related to the gain from the sale of real estate. The 1998 income from
continuing operations includes $3.7 million after tax, or $0.09 per share,
related to the gain from the sale of Inland Engineered Materials Corporation, a
subsidiary of the Company.

  The Company, like many other companies in the industry, experienced a
slowdown in demand beginning in the second quarter of 2000. The decline of metal
prices started then and continued through year-end as demand from metal-using
industries decelerated.

  On July 16, 1998, Ispat International N.V. ("Ispat") acquired Inland Steel
Company ("ISC"), the Company's wholly owned subsidiary that constituted the
steel manufacturing and related operations segment of the Company's consolidated
operations, pursuant to an agreement and plan of merger dated May 27, 1998, as
amended as of July 16, 1998, among the Company, ISC, Ispat, and Inland Merger
Sub, Inc. (an Ispat subsidiary). Pursuant to the merger, the Company received
$1.1 billion in cash in exchange for the outstanding common stock and preferred
stock of ISC and repayment of intercompany debt of ISC held by the Company. The
Company recorded a $510.8 million after-tax gain from this transaction.
Accordingly, the results of operations of ISC, as well as the gain from the
disposition, have been excluded from the results of continuing operations and
reported separately on the statement of operations. In the second quarter of
1999, the Company recorded a favorable $17.3 million adjustment to taxes related
to the gain on the sale of ISC. In the fourth quarter of 2000, the Company
recorded a $7.5 million pretax charge related to a claim by Ispat in connection
with the sale of ISC.


<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------
Figures in millions, except per share data                      2000            1999           1998
------------------------------------------------------------------------------------------------------
<S>                                                         <C>            <C>           <C>
Results of Operations
Net sales from continuing operations                        $   2,862.4    $  2,763.5    $   2,782.7
Operating profit (loss) from continuing operations                 (4.1)         97.1           96.0
Income (loss) from continuing operations                          (25.1)         38.4           47.7
Income from discontinued operations                                  --            --           13.8
Gain (loss) on sale of discontinued operations                     (4.8)         17.3          510.8
Extraordinary loss on early retirement of debt                       --            --          (21.4)
Net income (loss)                                                 (29.9)         55.7          550.9
Income (loss) per common share
 from continuing operations-diluted                         $     (1.03)   $     1.56    $      0.99
Net income (loss) per common share-diluted                        (1.22)         2.26          13.04
Average shares outstanding-diluted                                 24.8          24.6           41.7
------------------------------------------------------------------------------------------------------
</TABLE>

                                Ryerson Tull, Inc. and Subsidiary Companies    9
<PAGE>

MANAGEMENT'S DISCUSSION OF OPERATIONS AND FINANCIAL CONDITION (CONT.)


                         COMPARISON OF 2000 WITH 1999--CONTINUING OPERATIONS
--------------------------------------------------------------------------------
NET SALES                Net sales of $2.86 billion in 2000 were 3.6 percent
                         higher than the $2.76 billion reported in 1999. The
                         higher net sales were due primarily to a $28 per ton
                         increase in average selling price, from $829 in 1999 to
                         $857 in 2000, as tons shipped remained virtually
                         unchanged. Almost all of the change in average selling
                         price was attributable to surcharges on stainless
                         products, which were passed through to customers.
                         During 2000, the Company's share of the market remained
                         virtually unchanged at 11 percent, based on data from
                         the Steel Service Center Institute.

GROSS PROFIT             Gross profit--the difference between net sales and the
                         cost of materials sold--decreased 9.8 percent to $569.7
                         million in 2000 from $631.9 million in 1999. Gross
                         profit as a percentage of sales decreased to 19.9
                         percent in 2000 from 22.9 percent in 1999, due
                         primarily to the Company's inability to pass along to
                         customers increases in material costs as the market
                         weakened. The increase in material costs resulted from
                         purchases made earlier in the year when the market was
                         stronger. Gross profit per ton declined to $171 from
                         $190.

EXPENSES                 Expenses-- which consist of operating expenses
                         (excluding the restructuring charge), depreciation, and
                         amortization--increased 3.3 percent in 2000 to $550.4
                         million from $533.0 million in 1999. Negatively
                         impacting year 2000 was the additional provision to
                         fully reserve for a $16.2 million receivable due from a
                         west central Indiana coil converter that filed for
                         bankruptcy. The converter, with which the Company had
                         anticipated a long-term business relationship,
                         experienced financial and operating problems, which
                         precipitated its bankruptcy petition in January 2001.
                         Excluding the additional provision, expenses of $534.2
                         million increased minimally from 1999. On that basis,
                         expenses per ton remained unchanged at $160. The
                         average number of employees decreased 5.5 percent from
                         1999 to 2000, and tons shipped per employee, a key
                         measure of productivity, increased from 650 tons to 689
                         tons.

OPERATING PROFIT         The operating loss in 2000 was $4.1 million, compared
                         with an operating profit of $97.1 million in 1999. In
                         2000, in addition to the $16.2 million receivable
                         reserve discussed above, operating results were
                         negatively impacted by restructuring and plant closure
                         charges of $27.8 million, offset in part by a pension
                         curtailment gain of $4.4 million. Operating profit in
                         1999 was negatively impacted by plant closure costs of
                         $3.6 million, offset in part by a $1.8 million gain on
                         the sale of real estate. Excluding these items in both
                         periods, operating profit declined to $35.5 million in
                         2000 from $98.9 million in 1999, primarily due to gross
                         profit margin erosion.

OTHER EXPENSES           Interest and other expense on debt increased to $29.7
                         million in 2000 from $24.2 million in the previous
                         year. Higher average short-term borrowing in 2000, due
                         to lower earnings and higher working capital
                         requirements, was responsible for the increase in
                         interest expense.

PROVISION FOR            In 2000, the Company booked an income tax credit of
INCOMETAXES              $8.4 million, as compared with an income tax expense of
                         $34.8 million in 1999. The effective tax rate was 25.0
                         percent in 2000 and 47.1 percent in 1999. The effect of
                         non-tax-deductible expense on lower pretax income
                         reported in 2000 was primarily responsible for the
                         change in the effective tax rate between the two years.

EARNINGS PER SHARE       Diluted earnings per share from continuing operations
                         were a loss of $1.03 in 2000, compared with earnings of
                         $1.56 in 1999.


--------------------------------------------------------------------------------

10   Ryerson Tull, Inc. and Subsidiary Companies
<PAGE>

COMPARISON OF 1999 WITH 1998--CONTINUING OPERATIONS
--------------------------------------------------------------------------------

Net sales of $2.76 billion in 1999 declined 0.7 percent, compared with $2.78
billion in 1998. A 7.2 percent increase in tons shipped--to 3.33 million tons
from 3.11 million tons--was offset by a 7.4 percent decrease in the average
selling price per ton to $829 from $895. The increase in shipments was primarily
the result of internal growth initiatives and, secondarily, the acquisition of
Washington Specialty Metals in February 1999. During 1999, the Company grew its
share of the market to 11.1 percent, compared with 10.1 percent in 1998, based
on data from the Steel Service Center Institute.

Gross profit increased 1.0 percent to $631.9 million in 1999 from $625.8 million
in 1998. While gross profit as a percentage of sales increased to 22.9 percent
in 1999 from 22.5 percent in 1998--due to the Company's gross margin management
initiatives--gross profit per ton declined to $190 from $201, due to lower metal
prices in 1999.

Expenses decreased 0.5 percent in 1999 to $533.0 million from $535.7 million in
1998. Expenses on a per ton basis declined 7.0 percent to $160 in 1999 from $172
in 1998. The average number of employees decreased 3 percent from 1998 to 1999,
and tons shipped per employee increased from 590 tons to 650 tons.

Operating profit was $97.1 million in 1999 and $96.0 million in 1998. Operating
profit was negatively impacted by plant closure costs of $3.6 million, offset in
part by a $1.8 million gain on the sale of real estate in 1999. Operating profit
benefited from a $5.9 million gain on the sale of Inland Engineered Materials
Corporation in 1998. Excluding these items in both periods, operating profit
increased 9.8 percent to $98.9 million in 1999 from $90.1 million in 1998.

Other revenues and expense, including interest income, declined to $1.0 million
in 1999 from $20.6 million in 1998 as the average cash and cash equivalents
balance declined following the 1998 common stock repurchase program. Interest
and other expense on debt decreased to $24.2 million in 1999 from $33.6 million
in the previous year. The decrease was primarily due to the early retirement of
the Company's 10.23% subordinating voting note and ESOP notes in the second half
of 1998.

Income taxes increased to $34.8 million in 1999 from $30.6 million in 1998. The
effective tax rate was 47.1 percent in 1999 compared with 36.9 percent in 1998,
due to an increase in non-tax-deductible losses and expenses in relationship to
pretax income.

Diluted earnings per share from continuing operations were $1.56 in 1999,
compared with $0.99 in 1998. Diluted earnings per share in 1998, including the
net gain on the sale of Inland Steel Company, were $13.04. For 1999, the average
number of shares of common stock declined to 24.6 million from 41.7 million
shares in 1998 due to the 1998 tender offer, redemption of Series E ESOP
convertible preferred stock, and open market repurchases.

--------------------------------------------------------------------------------

                                 Ryerson Tull, Inc. and Subsidiary Companies  11
<PAGE>

MANAGEMENT'S DISCUSSION OF OPERATIONS AND FINANCIAL CONDITION (CONT.)

LIQUIDITY AND FINANCING

The Company finished 2000 with cash and cash equivalents of $23.8 million,
compared with $39.5 million at year-end 1999. Short-term bank borrowing was
$97.0 million at year-end 2000, and zero at year-end 1999. Net cash used for
operating activities was $62.7 million in 2000, compared with net cash provided
from operating activities of $38.6 million in 1999. The change was due to a
year-to-year reduction in earnings and an increase in working capital
requirements.

  The Company ended 2000 with a committed bank revolving credit facility that
extended until September 5, 2002. During 2000, maximum borrowings under this
line were $188 million, compared with $45 million the previous year. The
revolving credit agreement contains covenants that, among other things, limit
the amount of dividends and restrict the amount of additional debt. The maximum
amount of dividends that could have been paid as of December 31, 2000 was $93
million. Additionally the revolving credit agreement contains financial
covenants, including minimum levels of stockholders' equity, a leverage ratio,
and a fixed charge coverage ratio. Due to fourth-quarter results, the Company
was in technical default of the fixed charge coverage ratio under its revolving
credit facility. The banks granted a temporary waiver of the default, in
connection with which the amount available under the Company's credit facility
was reduced from $250 million to $125 million. On February 22, 2001, the Company
revised its revolving credit agreement terms with its banks and is no longer in
technical default. Included in the revised terms were a change of the credit
line to $150 million, collateralization with the Company's inventory, and an
adjustment of the interest rate to market, which at that date was approximately
one percentage point higher than the rate under the previous agreement. The
maximum amount of dividends that could then be paid was $65 million. In
addition, the Company is working with its banks and other lenders to put in
place financing to retire the $142 million of RT Notes due in July 2001. The
Company anticipates that such financing will be in place in advance of the July
2001 Notes payment.

  The indenture under which RT issued $250 million of debt in 1996 ("RT Notes")
contains covenants limiting, among other things, the creation of secured
indebtedness, sale and leaseback transactions, the repurchase of capital stock,
transactions with affiliates and mergers, consolidations, and certain sales of
assets. In addition, the RT Notes restrict the payment of dividends, although to
a lesser extent than the bank credit facility described above. Effective with
the merger of RT and the Company on February 26, 1999, the Company assumed the
Notes. During 2000, the Company purchased and retired $8 million of the $150
million 8.5% Notes maturing on July 15, 2001.

  The Company believes that its present cash position, cash flow anticipated
from operations, and cash available from the above facilities will provide
sufficient liquidity to fund its capital program, repay the Notes due in July,
and meet any operating cash requirements that may arise for at least the next
two years. Should the Company fail to complete the financing necessary to retire
the Notes in July prior to their coming due, the Company believes it could
generate sufficient cash to repay the Notes by aggressively reducing inventory
levels, delaying capital expenditures, and delaying some other cash outflows.

----------------------------------------------------------------
DEBT RATINGS AT YEAR END                   2000          1999
----------------------------------------------------------------
Ryerson Tull Notes
Moody's                                   Baa3           Baa3
Standard & Poor's                          BBB -          BBB
----------------------------------------------------------------

  The ratio of the Company's long-term debt, including the portion due within
one year, to total capitalization was 26 percent at December 31, 2000, compared
with 27 percent at year-end 1999. On January 30, 2001, the Company was notified
that Moody's had lowered its rating on the Ryerson Tull Notes from Baa3 to Ba1.

CAPITAL EXPENDITURES

Capital expenditures during 2000 totalled $34.7 million, compared with $31.6
million in 1999. Capital expenditures were primarily for buildings, machinery,
and equipment.

  The Company anticipates capital expenditures, excluding acquisitions, to be
in the range of $30 million to $40 million in 2001, thereby continuing to
maintain or improve the Company's processing capacity.

RESTRUCTURING

In late 1999, the Company formed a team to study its organization and business
processes to determine changes necessary to best achieve growth and
profitability goals. As a result of this study, facilities and services were
consolidated, including the closing of regional offices in Pennsylvania and
Washington State. Certain functions were consolidated, while resources were
reallocated to higher-growth areas. During the second quarter of 2000, the
Company recorded a $23.3 million restructuring provision. By year end, the
restructuring activities were substantially completed, with the remaining
reserve balance of $7.7 million mainly related to tenancy costs.

ISC SALE CONTINGENCIES

Pursuant to the ISC/Ispat Merger Agreement, the Company agreed to indemnify
Ispat for losses, if they should arise, exceeding certain minimum amounts in
connection with breaches of representations and warranties contained in the
ISC/Ispat Merger Agreement and for expenditures and losses, if they should
arise, relating to certain environmental liabilities exceeding, in most
instances, minimum amounts. The maximum liability for which the Company can be
responsible with respect to such obligations is $90 million in the aggregate.
There are also certain other covenant commitments made by the Company contained
in the ISC/Ispat Merger Agreement which are not subject to a maximum amount. In
general, Ispat must have made indemnification claims with respect to breaches of
representations and warranties prior to March 31, 2000; however, claims relating
to breaches of representations and warranties related to tax matters and certain
organizational matters must be made within 90 days after the expiration of the
applicable statute of limitations, and claims with respect to breaches of
representations and warranties related to environmental matters must be made
prior to July 16, 2003. Ispat has advised the Company of certain environmental
expenses, which Ispat has incurred, and of certain environmental claims, but the
Company has not made any indemnification payments to Ispat. The Company has
purchased environmental insurance with coverage up to $90 million covering
certain environmental matters payable directly to Ispat and ISC.

12    Ryerson Tull, Inc. and Subsidiary Companies

<PAGE>

  As part of the ISC/Ispat Transaction, the Inland Steel Industries Pension Plan
(the "ISC Pension Plan"), in which employees of both ISC and the Company
participated, was transferred to ISC. The Company's remaining employees that
formerly had participated in the ISC Pension Plan became participants in Ryerson
Tull's pension plan. The ISC Pension Plan has unfunded benefit liabilities on a
termination basis, as determined by the Pension Benefit Guaranty Corporation
("PBGC"), an agency of the U.S. government. As a condition to completing the
ISC/Ispat Transaction, Ispat, ISC, RT and the Company entered into an agreement
with the PBGC to provide certain financial commitments to reduce the
underfunding of the ISC Pension Plan and to secure ISC Pension Plan unfunded
benefit liabilities on a termination basis. These requirements include a RT
guaranty of $50 million, for five years, of the obligations of Ispat and ISC to
the PBGC in the event of a distress or involuntary termination of the ISC
Pension Plan. The guaranty is included in the $90 million limit on the Company's
indemnification obligations.

  By letter dated May 11, 1999, Ispat advised the Company of its involvement in
a civil lawsuit and federal criminal grand jury proceeding in Louisiana and
notified the Company of its intention to seek indemnification from the Company
in connection with the Louisiana proceedings. In letters dated March 31, 2000,
Ispat notified the Company that Ispat was asserting claims against the Company
under the Merger Agreement related to certain pension liabilities, insurance
premiums, property taxes, environmental matters, intellectual property and the
Louisiana proceedings. On January 17, 2001, Ispat announced that it had reached
agreement on the resolution of the Louisiana proceedings. To resolve the
matter, Ispat has agreed to pay $15 million, one half of the total settlement
among the United States Federal Government, the State of Louisiana and the
defendants in the civil lawsuit. The settlement has been approved by the U.S.
District Court in Baton Rouge, Louisiana. Ispat has made a demand on the Company
for indemnification of the $15 million settlement amount. The Company disputes
Ispat's claim and will attempt to resolve the dispute through negotiations. At
year-end 2000, the Company recorded a $7.5 million pretax charge for the
potential exposure related to the Louisiana proceedings.

  The Company is unable to determine Ispat's right to indemnification under the
Merger Agreement or whether any of the claims discussed above would,
individually or in the aggregate, have a material adverse effect on the
Company's financial condition or results of operations.

OTHER MATTERS

On December 31, 2000, in addition to the $16.2 million receivable from the
Indiana coil converter (as discussed in the Management's Discussion of
Operations and Financial Condition--Expenses) which had been fully reserved for,
the Company had approximately $6 million of inventory at the converter's site
for processing. The Company claims title to this inventory, which claim could be
challenged in the coil converter's bankruptcy case. The Company cannot predict
the outcome of such challenge should it occur.

  In March 2000, the Company and Altos Hornos de Mexico, S.A. de C.V. ("AHMSA")
entered into an agreement to sell the Company's 50 percent interest in their
joint venture to AHMSA for $15 million, with payment due in July 2000. At
December 31, 2000, the Company had not received payment under the agreement. The
Company and AHMSA have continued discussions and, although there are no
assurances, the Company expects to consummate the sale.

RECENT ACCOUNTING PRONOUNCEMENTS

In June 1998, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards No. 133 ("SFAS 133"), "Accounting for Derivative
Instruments and Hedging Activities." SFAS 133 requires the recognition of all
derivatives in the balance sheet as either assets or liabilities, measured at
fair value. The statement also requires a company to recognize changes in the
derivatives' fair value currently in earnings unless it meets specific hedge
accounting criteria. The Company expects to adopt SFAS 133 in the first quarter
of 2001. Management does not expect the adoption of SFAS 133 to have a material
impact on the Company's consolidated financial statements.

                                 Ryerson Tull, Inc. and Subsidiary Companies  13
<PAGE>

                         FINANCIAL RESPONSIBILITY

                         Senior management is responsible for the integrity and
                         objectivity of the financial data reported by Ryerson
                         Tull, Inc. and its subsidiary companies. The
                         accompanying financial statements have been prepared in
                         conformity with generally accepted accounting
                         principles, and in management's judgment reflect fairly
                         the consolidated financial position, cash flows, and
                         results of operations of Ryerson Tull and its
                         subsidiary companies.

                            The Company maintains systems of internal accounting
                         controls and procedures to provide reasonable assurance
                         of the safeguarding and accountability of Company
                         assets, and to ensure that its financial records
                         provide a reliable basis for the preparation of
                         financial statements and other data.

                         Internal accounting control is maintained through:

                            .  The ongoing activities of corporate staff, line
                               officers, and accounting management to monitor
                               the adequacy of internal accounting control
                               systems throughout the Company
                            .  The selection and proper training of qualified
                               personnel
                            .  The appropriate separation of duties in
                               organizational arrangements
                            .  The establishment and communication of accounting
                               and business policies together with procedures
                               for their implementation
                            .  The use of an ongoing program of internal
                               auditing
                            .  The use of a detailed budgeting system to ensure
                               that expenditures are properly approved and
                               charged

                               The Audit Committee annually recommends to the
                         Board of Directors the appointment of a firm of
                         independent auditors to audit the annual financial
                         statements for the Board's approval. The current report
                         of the independent auditors appears below. The
                         principal role of the Audit Committee of the Board of
                         Directors (consisting entirely of non-management
                         Directors) is to review the conclusions reached by
                         management in its evaluation of internal accounting
                         controls, approve the scope of audit programs, and
                         evaluate audit results of both independent accountants
                         and internal auditors. Both groups have unrestricted
                         access to the Audit Committee, without the presence of
                         management.



                         REPORT OF INDEPENDENT AUDITORS


                         [LOGO PRICEWATERHOUSECOOPERS]


                         To the Board of Directors and Stockholders of Ryerson
                         Tull, Inc.

                         In our opinion, the consolidated financial statements
                         on pages 16 through 29 present fairly, in all material
                         respects, the financial position of Ryerson Tull, Inc.
                         (formerly Inland Steel Industries, Inc.) and subsidiary
                         companies at December 31, 2000 and 1999, and the
                         results of their operations and their cash flows for
                         each of the three years in the period ended December
                         31, 2000, in conformity with accounting principles
                         generally accepted in the United States of America.
                         These financial statements are the responsibility of
                         the Company's management; our responsibility is to
                         express an opinion on these financial statements based
                         on our audits. We conducted our audits of these
                         statements in accordance with auditing standards
                         generally accepted in the United States of America,
                         which require that we plan and perform the audit to
                         obtain reasonable assurance about whether the financial
                         statements are free of material misstatement. An audit
                         includes examining, on a test basis, evidence
                         supporting the amounts and disclosures in the financial
                         statements, assessing the accounting principles used
                         and significant estimates made by management, and
                         evaluating the overall financial statement
                         presentation. We believe that our audits provide a
                         reasonable basis for our opinion.


                         /s/ PricewaterhouseCoopers LLP

                         Chicago, Illinois
                         February 22, 2001

14   Ryerson Tull, Inc. and Subsidiary Companies
<PAGE>

FINANCIALS







     16        CONSOLIDATED STATEMENTS OF OPERATIONS AND REINVESTED EARNINGS

     17        CONSOLIDATED STATEMENT OF CASH FLOWS

     18        CONSOLIDATED BALANCE SHEET

     19        CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME AND
               SCHEDULES TO CONSOLIDATED FINANCIAL STATEMENTS

     20        SUMMARY BY QUARTER AND STATEMENT OF ACCOUNTING
               AND FINANCIAL POLICIES

     21        NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                                 Ryerson Tull, Inc. and Subsidiary Companies  15

<PAGE>

CONSOLIDATED STATEMENTS OF OPERATIONS AND REINVESTED EARNINGS

<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31
---------------------------------------------------------------------------------------------------------------------------
Dollars in millions, except per share data                                             2000              1999          1998
---------------------------------------------------------------------------------------------------------------------------
<S>                                                                            <C>            <C>               <C>
Net sales                                                                       $   2,862.4   $       2,763.5   $   2,782.7
 Cost of materials sold                                                             2,292.7           2,131.6       2,156.9
Gross profit                                                                          569.7             631.9         625.8
 Operating expense                                                                    518.6             500.9         502.5
 Depreciation and amortization                                                         31.8              32.1          33.2
 Restructuring and plant closure costs                                                 27.8               3.6            --
 Pension curtailment gain                                                              (4.4)               --            --
 Gain on sale of assets                                                                  --              (1.8)         (5.9)
                                                                               --------------------------------------------
Operating profit (loss)                                                                (4.1)             97.1          96.0
Other expense:
 Other revenue and expense, including interest income                                   0.3               1.0          20.6
 Interest and other expense on debt                                                   (29.7)            (24.2)        (33.6)
                                                                               --------------------------------------------
Income (loss) before income taxes, minority interest,
 discontinued operations, and extraordinary loss                                      (33.5)             73.9          83.0
Provision (benefit) for income taxes (Note 12)                                         (8.4)             34.8          30.6
                                                                               --------------------------------------------
Income (loss) before minority interest, discontinued operations,
 and extraordinary loss                                                               (25.1)             39.1          52.4
Minority interest in RT                                                                  --               0.7           4.7
                                                                               --------------------------------------------
Income (loss) from continuing operations                                              (25.1)             38.4          47.7
Discontinued operations-Inland Steel Company:
 Income from operations (net of tax of $7.9)                                             --                --          13.8
 Gain (loss) on sale (net of tax of $2.7 cr. in 2000 and $76.9 in 1998)                (4.8)             17.3         510.8
                                                                               --------------------------------------------
Income (loss) before extraordinary loss                                               (29.9)             55.7         572.3
Extraordinary loss on early retirement of debt (net of tax of $7.1 cr.)                  --                --         (21.4)
                                                                               --------------------------------------------
Net income (loss)                                                                     (29.9)             55.7         550.9
Dividend requirements for preferred stock (net of tax
 benefits related to leveraged ESOP shares)                                             0.2               0.2           6.9
                                                                               --------------------------------------------
Net income (loss) applicable to common stock                                    $     (30.1)  $          55.5   $     544.0
                                                                               --------------------------------------------
Per share of common stock:
 Basic:
  Income (loss) from continuing operations                                      $     (1.03)  $          1.56   $      1.03
  Inland Steel Company - discontinued operations                                         --                --          0.35
                       - gain (loss) on sale                                          (0.19)             0.71         12.95
  Extraordinary loss on early retirement of debt                                         --                --         (0.54)
                                                                               --------------------------------------------
  Basic earnings (loss) per share                                               $     (1.22)  $          2.27   $     13.79
                                                                               --------------------------------------------
 Diluted:
  Income (loss) from continuing operations                                      $     (1.03)  $          1.56   $      0.99
  Inland Steel Company - discontinued operations                                         --                --          0.33
                       - gain (loss) on sale                                          (0.19)             0.70         12.23
  Extraordinary loss on early retirement of debt                                         --                --         (0.51)
                                                                               --------------------------------------------
  Diluted earnings (loss) per share                                             $     (1.22)  $          2.26   $     13.04
                                                                               --------------------------------------------

Retained earnings (accumulated deficit) at beginning of                         $     541.8   $         491.2   $     (45.6)
 year
Net income (loss) for the year                                                        (29.9)             55.7         550.9
Dividends declared:
 Common ($0.20 per share)                                                              (4.9)             (4.9)         (7.2)
 Preferred (Note 6)                                                                    (0.2)             (0.2)         (6.9)
                                                                               --------------------------------------------
Retained earnings at end of year                                                $     506.8   $         541.8   $     491.2
---------------------------------------------------------------------------------------------------------------------------
</TABLE>

See Notes to Consolidated Financial Statements on pages 21-29.

16 Ryerson Tull, Inc. and Subsidiary Companies
<PAGE>

<TABLE>
<CAPTION>
CONSOLIDATED STATEMENT OF CASH FLOWS
--------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN CASH, YEARS ENDED DECEMBER 31
--------------------------------------------------------------------------------------------------------------------------------
Dollars in millions                                                                      2000            1999               1998
--------------------------------------------------------------------------------------------------------------------------------
<S>                                                                                   <C>             <C>             <C>
Operating Activities
Net income (loss)                                                                       $ (29.9)      $    55.7        $   550.9
                                                                                     -------------------------------------------
Adjustments to reconcile net income (loss) to net cash provided by
 (used for) operating activities:
 Income from discontinued operations                                                         --              --            (13.8)
 Depreciation and amortization                                                             31.8            32.1             33.2
 Deferred income taxes                                                                    (12.8)           27.6              2.8
 Deferred employee benefit cost                                                            (6.2)           (5.9)             0.4
 Stock issued for coverage of employee benefit plans                                         --              --             39.4
 Restructuring and plant closure costs                                                     27.8             3.6               --
 (Gain) loss from sale of ISC, net of tax                                                   4.8           (17.3)          (510.8)
 Gain from sale of assets                                                                    --            (1.8)            (5.9)
 Change in:
  Receivables                                                                              22.5            (7.7)            21.7
  Inventories                                                                             (25.1)           (8.2)           (77.5)
  Accounts payable                                                                        (63.6)          (13.7)             7.4
  Other accrued liabilities                                                               (18.0)          (28.5)           (78.4)
 Other items                                                                                6.0             2.7              1.6
                                                                                     -------------------------------------------
  Net adjustments                                                                         (32.8)          (17.1)          (579.9)
                                                                                     -------------------------------------------
  Net cash provided by (used for) operating activities                                    (62.7)           38.6            (29.0)
                                                                                     -------------------------------------------

Investing Activities
Capital expenditures                                                                      (34.7)          (31.6)           (40.1)
Acquisitions (Note 13)                                                                       --           (66.0)            (7.7)
Investments in and advances to joint ventures, net                                           --              --             (4.2)
Proceeds from sales of assets                                                               4.7             9.4            919.8
                                                                                     -------------------------------------------
  Net cash provided by (used for) investing activities                                    (30.0)          (88.2)           867.8
                                                                                     -------------------------------------------
Financing Activities
Long-term debt retired                                                                    (14.8)             --           (202.8)
Net short-term borrowing                                                                   97.0              --               --
Redemption of Series E Preferred Stock                                                       --              --            (81.7)
Dividends paid                                                                             (5.1)           (5.1)           (17.5)
Acquisition of treasury stock                                                              (0.1)           (5.4)          (839.6)
                                                                                     -------------------------------------------
  Net cash provided by (used for) financing activities                                     77.0           (10.5)        (1,141.6)
                                                                                     -------------------------------------------
Cash provided by discontinued operations                                                     --              --            279.4
                                                                                     -------------------------------------------
Net decrease in cash and cash equivalents                                                 (15.7)          (60.1)           (23.4)
Cash and cash equivalents -beginning of year                                               39.5            99.6            123.0
                                                                                     -------------------------------------------
Cash and cash equivalents -end of year                                                  $  23.8       $    39.5        $    99.6
                                                                                     -------------------------------------------

Supplemental Disclosures
 Cash paid during the year for:
  Interest                                                                              $  28.7       $    23.8        $    32.8
  Income taxes, net                                                                         9.5            22.5             63.4
--------------------------------------------------------------------------------------------------------------------------------
</TABLE>

See Notes to Consolidated Financial Statements on pages 21-29.

                                  Ryerson Tull, Inc. and Subsidiary Companies 17
<PAGE>

CONSOLIDATED BALANCE SHEET

<TABLE>
<CAPTION>
AT DECEMBER 31
---------------------------------------------------------------------------------------------------------------------
Dollars in millions                                                                               2000          1999
---------------------------------------------------------------------------------------------------------------------
<S>                                                                                         <C>           <C>
Assets
Current assets:
   Cash and cash equivalents                                                               $      23.8    $     39.5
   Receivables less provision for allowances, claims, and
     doubtful accounts of $24.5 and $7.2, respectively                                           285.4         307.9
   Inventories (Note 2)                                                                          567.8         542.7
                                                                                           -------------------------
   Total current assets                                                                          877.0         890.1
Investments and advances                                                                          22.3          30.0
Property, plant and equipment, at cost, less accumulated
   depreciation (see details on page 19)                                                         274.7         273.2
Deferred income taxes (Note 12)                                                                   69.4          56.4
Prepaid pension costs (Note 10)                                                                   23.5          19.7
Excess of cost over net assets acquired, less accumulated
   amortization of $35.6 and $24.1, respectively                                                  96.5         108.0
Deferred charges and other assets                                                                  8.7           9.8
                                                                                           -------------------------
   Total assets                                                                            $   1,372.1    $  1,387.2
                                                                                           -------------------------

Liabilities
Current liabilities:
   Accounts payable                                                                        $     137.6    $    201.2
   Accrued liabilities:
       Salaries, wages and commissions                                                            19.4          25.7
       Taxes                                                                                      22.6          25.7
       Interest on debt                                                                           10.5          10.2
       Other accrued liabilities                                                                  28.3          13.6
       Deferred income taxes (Note 12)                                                             0.8           3.2
   Short-term borrowing (Note 3)                                                                  97.0            --
   Long-term debt due within one year (Note 4)                                                   142.5            --
                                                                                           -------------------------
   Total current liabilities                                                                     458.7         279.6
Long-term debt (see details on page 19 and Note 4)                                               100.7         258.8
Deferred employee benefits (Note 10)                                                             151.0         151.0
                                                                                           -------------------------
   Total liabilities                                                                             710.4         689.4
                                                                                           -------------------------
Commitments and contingencies (Note 15)                                                              -             -
                                                                                           -------------------------
Stockholders' Equity
Preferred stock, $1.00 par value, 15,000,000 shares authorized for all series,
   aggregate liquidation value of $3.5 in 2000 and 1999 (Notes 5 and 6)                            0.1           0.1
Common stock, $1.00 par value; authorized-100,000,000 shares;
   issued-50,556,350 shares (Notes 6 through 8)                                                   50.6          50.6
Capital in excess of par value (Note 6)                                                          862.8         863.3
Retained earnings                                                                                506.8         541.8
Restricted stock awards                                                                           (0.2)         (0.4)
Treasury stock at cost - Common stock of 25,782,477 shares in 2000 and
   25,782,759 shares in 1999                                                                    (754.1)       (754.7)
Accumulated other comprehensive income (Note 6)                                                   (4.3)         (2.9)
                                                                                           -------------------------
   Total stockholders' equity                                                                    661.7         697.8
                                                                                           -------------------------
   Total liabilities and stockholders' equity                                              $   1,372.1    $  1,387.2
---------------------------------------------------------------------------------------------------------------------
</TABLE>

See Notes to Consolidated Financial Statements on pages 21-29.

18  Ryerson Tull, Inc. and Subsidiary Companies
<PAGE>

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31
----------------------------------------------------------------------------------------------------------
Dollars in millions                                                    2000          1999           1998
----------------------------------------------------------------------------------------------------------
<S>                                                                <C>               <C>          <C>
Net income (loss)                                                   $   (29.9)      $   55.7      $  550.9
Other comprehensive income:
   Foreign currency translation adjustments                              (1.4)           0.4            --
   Minimum pension liability adjustment, net of tax of $18.3 in
    1999 and $18.3 cr. in 1998                                             --           26.9         (26.9)
                                                                  ----------------------------------------
Comprehensive income (loss)                                         $   (31.3)      $   83.0      $  524.0
----------------------------------------------------------------------------------------------------------
</TABLE>

SCHEDULES TO CONSOLIDATED FINANCIAL STATEMENTS

<TABLE>
<CAPTION>
AT DECEMBER 31
----------------------------------------------------------------------------------------------------------
Dollars in millions                                                                   2000          1999
----------------------------------------------------------------------------------------------------------
<S>                                                                                <C>            <C>
Property, Plant and Equipment
Land and land improvements                                                         $    28.7      $   29.0
Buildings, machinery and equipment                                                     564.6         545.8
Transportation equipment                                                                 3.4           4.2
                                                                                   -----------------------
   Total                                                                               596.7         579.0
Less accumulated depreciation                                                          322.0         305.8
                                                                                   -----------------------
   Net property, plant and equipment                                               $   274.7      $  273.2
                                                                                   -----------------------

Long-Term Debt
Ryerson Tull, Inc.:
   Notes, 8.5%, due July 15, 2001                                                  $      --      $  151.0
   Notes, 9.125%, due July 15, 2006                                                    100.7         100.8
Joseph T. Ryerson & Son, Inc.:
   Obligation for Industrial Revenue Bond with floating rate,
      set weekly, based on 13-week Treasury bills                                         --           7.0
                                                                                   -----------------------
   Total long -term debt                                                           $   100.7      $  258.8
----------------------------------------------------------------------------------------------------------
</TABLE>

                                 Ryerson Tull, Inc. and Subsidiary Companies  19
<PAGE>

SUMMARY BY QUARTER (UNAUDITED)

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------
                                               1Q             2Q                 3Q            4Q          YEAR
Dollars in millions                                                                                        1999
<S>                                     <C>            <C>                 <C>           <C>           <C>
Net sales                               $   691.4      $   708.1           $  686.9      $  677.1      $2,763.5
Gross profit                                157.6          165.0              156.9         152.4         631.9
Income (loss) from continuing
  operations before taxes                    19.6           19.6               17.7          17.0          73.9
Net income (loss)                             9.8           27.6/(1)/           9.6           8.7          55.7
----------------------------------------------------------------------------------------------------------------------
Net income (loss) per common share:
  Basic                                 $    0.42      $    1.10/(1)/      $   0.38      $   0.35      $   2.27/(2)/
  Diluted                                    0.42           1.10/(1)/          0.38          0.34          2.26
----------------------------------------------------------------------------------------------------------------------
Market price per common share:
  High                                  $19 13/16      $ 25 1/16           $ 23 3/4      $ 24 3/4      $25 1/16
  Low                                          14       14 11/16             18 7/8            18            14
  Close                                  14 11/16        22 9/16             23 1/8       19 7/16       19 7/16
----------------------------------------------------------------------------------------------------------------------
<CAPTION>
----------------------------------------------------------------------------------------------------------------------
                                               1Q             2Q             3Q           4Q               YEAR
Dollars in millions                                                                                        2000
----------------------------------------------------------------------------------------------------------------------
<S>                                     <C>            <C>            <C>           <C>                <C>
Net sales                               $   786.3      $   760.8      $   695.6     $  619.7           $2,862.4
Gross profit                                166.0          149.9          135.8        118.0              569.7
Income (loss) from continuing
  operations before taxes                    20.8          (16.7)          (4.5)       (33.1)/(3)/        (33.5)
Net income (loss)                            11.0          (13.6)          (3.6)       (23.7)/(3)/        (29.9)
                                                                                             /(4)/
----------------------------------------------------------------------------------------------------------------------
Net income (loss) per common share:
  Basic                                 $    0.44      $   (0.55)     $   (0.15)    $  (0.96)/(3)/     $  (1.22)
                                                                                             /(4)/
  Diluted                                    0.44          (0.55)         (0.15)       (0.96)/(3)/        (1.22)
                                                                                             /(4)/
----------------------------------------------------------------------------------------------------------------------
Market price per common share:
  High                                  $ 20 3/16      $  15 1/2      $10 11/16     $9 15/16           $20 3/16
  Low                                      12 3/8          8 5/8         8  5/8      6 15/16            6 15/16
  Close                                    15 1/2         10 3/8         9 7/16       8  1/4              8 1/4
----------------------------------------------------------------------------------------------------------------------
</TABLE>

(1)  The second quarter of 1999 includes a favorable $17.3 million adjustment to
     taxes for the gain on the sale of Inland Steel Company, or $0.69 per share.
(2)  Amounts for the quarters do not total to the amount reported for the year,
     due to differences in the average numbers of shares outstanding.
(3)  The fourth quarter of 2000 includes a $16.2 million bad debt provision for
     a single customer, $9.3 million after tax, or $0.37 per share. See Note 15.
(4)  The fourth quarter of 2000 includes a $4.8 million after-tax loss on the
     sale of Inland Steel Company, or $0.19 per share. See Note 15.

STATEMENT OF ACCOUNTING AND FINANCIAL POLICIES

PRINCIPLES OF CONSOLIDATION

The consolidated financial statements include all domestic and foreign
subsidiaries that are more than 50-percent-owned and controlled. The Company's
investments in less than majority-owned joint ventures are accounted for under
the equity method. Minority interest represents outside shareholders' 13 percent
interest in RT prior to February 25, 1999.

REVENUE RECOGNITION

Revenue is recognized upon shipment of goods to customers.

PER SHARE RESULTS

Basic per share results are based on the weighted average number of common
shares outstanding and take into account the dividend requirements of preferred
stock, net of tax benefits related to the leveraged Series E ESOP Convertible
Preferred shares. Diluted per share results reflect the dilutive effect of
outstanding stock options, the further dilutive effect of the assumed conversion
into common stock of the outstanding shares of convertible preferred stock, and
the elimination of the related preferred stock dividends. Also reflected in
diluted earnings per common share is an adjustment for the additional ESOP
contribution, net of tax benefits, that would be necessary to meet debt service
requirements that would arise upon conversion of the leveraged Series E ESOP
Convertible Preferred Stock, due to the excess of the preferred dividend over
the common dividend. (See Note 5 for additional information regarding the ESOP.)

CASH EQUIVALENTS

Cash equivalents reflected in the financial statements are highly liquid, short-
term investments with maturities of three months or less that are an integral
part of the Company's cash management portfolio.

INVENTORY VALUATION

Inventories are valued at cost, which is not in excess of market. Cost is
determined by the last-in, first-out ("LIFO") method.

PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment is depreciated, for financial reporting purposes,
using the straight-line method over the estimated useful lives of the assets.
The provision for depreciation is based on the estimated useful lives of the
assets (45 years for buildings and 14.5 years for machinery and equipment).
Expenditures for normal repairs and maintenance are charged against income in
the period incurred.

EXCESS OF COST OVER NET ASSETS ACQUIRED

The excess of cost over the fair value of net assets of businesses acquired is
being amortized over 25-year periods.

LONG-LIVED ASSETS

Long-lived assets and certain identifiable intangibles held and used by the
Company are reviewed for impairment whenever events or changes in circumstances
indicate that the carrying amount of an asset may not be recoverable. The
Company estimates the future cash flows expected to result from the use of the
asset and its eventual disposition. If the sum of the expected future cash flows
(undiscounted and without interest charges) is less than the carrying amount of
the asset, an impairment is recognized.

STOCK-BASED COMPENSATION

Financial Accounting Standards Board ("FASB") Statement No. 123, "Accounting for
Stock-Based Compensation," encourages, but does not require, companies to record
compensation cost for stock-based employee compensation plans at fair value. The
Company has chosen to continue to account for stock-based compensation using the
intrinsic value method prescribed in Accounting Principles Board Opinion No. 25,
"Accounting for Stock Issued to Employees," and related interpretations.
Accordingly, compensation cost for stock options is measured as the excess, if
any, of the quoted market price of the Company's stock at the date of the grant
over the amount an employee must pay to acquire the stock. Compensation cost for
stock appreciation rights and performance equity units is recorded annually,
based on the quoted market price of the Company's stock at the end of the
period.

SHIPPING AND HANDLING FEES AND COSTS

Shipping and handling fees and costs, primarily distribution costs, are
classified as an operating expense in the financial statements. These costs
totaled $77.7 million in 2000, $79.0 million in 1999, and $79.8 million in 1998.

USE OF ESTIMATES

The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the amounts reported in the consolidated financial statements and related
notes to financial statements. Changes in such estimates may affect amounts
reported in future periods.

RECLASSIFICATION

Certain items previously reported have been reclassified to conform with the
2000 presentation.

20  Ryerson Tull, Inc. and Subsidiary Companies
<PAGE>

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


Note 1: Reorganization and Recapitalization

On February 25, 1999, the Company and its majority-owned subsidiary, Ryerson
Tull, Inc. ("RT"), merged through the process of converting each share of RT
Class A common stock into 0.61 share of Company common stock. After the merger,
the Company changed its name from Inland Steel Industries, Inc. to Ryerson Tull,
Inc. All references to RT in these financial statements refer to the pre-merger,
majority-owned subsidiary of the Company.

  The merger was accounted for as a purchase for financial reporting purposes.
Under the purchase method of accounting, the assets and liabilities of RT in
proportion to the 13% minority interest were recorded at their fair values at
the effective time of the merger.

  On July 16, 1998, Ispat International N.V. ("Ispat") acquired Inland Steel
Company ("ISC"), the Company's wholly owned subsidiary that constituted the
steel manufacturing and related operations segment of the Company's consolidated
operations, pursuant to an agreement and plan of merger dated May 27, 1998, as
amended as of July 16, 1998 (the "Merger Agreement"), among the Company, ISC,
Ispat, and Inland Merger Sub, Inc. (an Ispat subsidiary). Pursuant to the
merger, the Company received $1.1 billion in cash in exchange for the
outstanding common stock and preferred stock of ISC and repayment of
intercompany debt of ISC held by the Company. The results of operations of ISC
have been segregated from the results of continuing operations and reported as a
separate item on the statement of operations. The Company's primary business is
currently metals distribution and processing.

  In the second quarter of 1999, the Company reported a favorable $17.3 million
adjustment to taxes for the gain on the sale of ISC.

  ISC's revenues, including intercompany sales, were $1,310.0 million through
July 16, 1998, the date of the ISC/Ispat Transaction.

  Subsequent to the completion of the ISC/Ispat Transaction, the Company
undertook a Dutch auction self-tender program that resulted in its repurchase of
approximately 26.5 million shares at $30 per share in 1998. Additionally, in
1998, 1.8 million common shares were repurchased in the open market for
approximately $35 million, following the completion of the self-tender program.

  During the third quarter of 1998, the Company elected to prepay its $100
million Subordinated Voting Note held by an affiliate of Nippon Steel
Corporation. The Company recognized an after-tax loss on the prepayment of the
debt of $11.2 million.

  During the fourth quarter of 1998, the Company redeemed all remaining
outstanding shares of its Series E Convertible Preferred Stock (Note 5). The
ESOP Trustee repaid all existing notes within the Employee Stock Ownership Plan
("ESOP") Trust. This termination included the prepayment of ESOP Notes upon
which the Company recognized an after-tax loss of $10.2 million.

Note 2: Inventories

Inventories were classified on December 31 as follows:

     ------------------------------------------------------------
     Dollars in millions                          2000       1999

     In process and finished products          $ 567.6    $ 542.4
     Supplies                                      0.2        0.3
                                               -------    -------
     Total                                     $ 567.8    $ 542.7
     ------------------------------------------------------------

Replacement costs for the LIFO inventories exceeded LIFO values by approximately
$41 million and $63 million on December 31, 2000 and 1999, respectively.

Note 3: Borrowing Arrangements

On December 31, 2000, the Company had $97 million outstanding under its
revolving credit facility. The facility, which extends to September 2002,
requires compliance with various financial covenants including minimum net
worth and leverage ratios. Due to fourth quarter results, the Company was in
technical default of the fixed charge coverage ratio under its revolving credit
agreement. The committed banks granted a temporary waiver of the default, in
connection with which the amount available under the Company's line was reduced
from $250 million to $125 million. On February 22, 2001, the Company revised its
revolving credit agreement terms with its banks and is no longer in technical
default. Included in the revised terms were a change of the credit line to $150
million, collateralization with the Company's inventory, and an adjustment of
the interest rate to market, which at that date was approximately one percentage
point higher than the rate under the previous agreement.

  At year-end 2000, the weighted average interest rate on short-term borrowings
outstanding was 7.1 percent.

Note 4: Long-Term Debt

In July 1996, RT sold $150 million of 8.5 percent Notes, due July 15, 2001, and
$100 million of 9.125 percent Notes, due July 15, 2006, in a public offering.
The indenture under which the Notes were issued contains covenants limiting,
among other things, the creation of secured indebtedness, sale and leaseback
transactions, the repurchase of capital stock, transactions with affiliates, and
mergers, consolidations, and certain sales of assets. On February 26, 1999, the
indenture trustee agreed to a supplement to the indenture agreement allowing the
Company to succeed its subsidiary, RT, as obligee for the Notes.

  On February 1, 2000, the Company's subsidiary, Joseph T. Ryerson & Son, Inc.,
redeemed its $7.0 million Industrial Revenue Bond obligation. As a result, this
subsidiary is no longer required to maintain specified amounts of working
capital and net worth and to meet leverage tests as outlined in the loan
agreement.

  On June 21, 2000, the Company purchased and retired $4.8 million of the $150
million 8.5% Notes maturing on July 15, 2001. On August 28, 2000, the Company
purchased and retired an additional $3.0 million of the $150 million 8.5% Notes.

  Maturity of long-term debt due within five years is $142 million in 2001. See
Note 15 regarding commitments and contingencies for other scheduled payments.

Note 5: Employee Stock Ownership Plan

The Company sponsored a 401(k) plan through which eligible salaried employees
could defer a portion of their salary. Through December 31, 1998, the Company
matched the first five percent of each eligible participant's salary
contributed, subject to certain IRS limitations. In July 1989, the Board of
Directors amended this plan to include a leveraged ESOP. The ESOP Trust
purchased 3.1 million newly issued shares of Series E ESOP Convertible Preferred
Stock from the Company with the proceeds of loans totaling $150 million. As a
result, effective January 1, 1990, the Company's matching contribution in the
401(k) plan was made in shares of Series E ESOP Convertible Preferred Stock
provided principally by the Company's ESOP, supplemented as needed by newly
issued shares. The Company accounted for its ESOP in accordance with American
Institute of Certified Public Accountants Statement of Position 76-3.

  The Company made semiannual contributions to the ESOP equal to the ESOP
Trust's debt service less dividends on leveraged shares (shares purchased by the
ESOP Trust in July 1989) received by the ESOP Trust. All dividends received by
the ESOP Trust were used to pay debt service. Dividends on Series E ESOP
Convertible Preferred Stock were recorded when declared as reductions to
retained earnings, net of applicable tax benefits on unallocated shares.
Dividends on allocated

                                 Ryerson Tull, Inc. and Subsidiary Companies  21
<PAGE>

leveraged shares were replaced with additional Series E ESOP Convertible
Preferred shares. Dividends on unallocated leveraged shares served to reduce
interest expense recognized by the Company.

  Effective January 1, 1998, salaried employees at RT no longer participated in
the above-described plan. At that date, RT established a new savings plan to
which RT employees' account balances, including Series E ESOP Convertible
Preferred shares, were transferred. The employer matching contribution in the
savings plan was made in cash and such participants no longer received shares,
except for dividend replacement shares, which continued to be allocated to their
accounts, consistent with plan provisions. Compensation expense recognized at RT
was not materially affected as a result of the change in savings plans.

  Upon completion of the ISC/Ispat Transaction, ISC salaried employees no longer
participated in the ESOP. The Company redeemed 1.1 million shares of Series E
Preferred Stock held in the 401(k) plan accounts of ISC employees prior to the
transfer of account balances to a savings plan sponsored by Ispat.

  With ISC and RT employees no longer participating, there were very few
participants remaining in this 401(k) plan. During the fourth quarter of 1998,
the Company requested that the plan trustee repay all existing Notes of the ESOP
Trust. The Company redeemed all outstanding Series E Preferred Stock. The Trust
used the proceeds of unallocated shares and additional contributions from the
Company to repay the Notes. The Company was required to recognize an
extraordinary loss during the fourth quarter as a result of the early retirement
of this debt (Note 1). At December 31, 1998, the Company's 401(k) plan merged
with RT's savings plan.

  In 1998, the ESOP Trust received $5.2 million in dividends and $8.2 million in
contributions from the Company to make required scheduled principal and interest
payments.

  As principal and interest payments were made, Series E ESOP Convertible
Preferred shares were made available for allocation based on the proportion of
current payments to the total of current plus future payments. As shares were
allocated, the Company recorded compensation expense equal to the original
stated value of the shares of Series E ESOP Convertible Preferred Stock
allocated to the participants during the period. Compensation expense related
to the ESOP recognized by the Company totaled $3.3 million in 1998.

  Interest expense was recognized as it was incurred by the ESOP Trust. Interest
expense incurred by the ESOP Trust totaled $6.6 million in 1998.

Note: 6 Capital Stock and Accumulated Other Comprehensive Income

On December 31, 2000, 3,932,585 shares of common stock remained reserved for
issuance under the Company's various stock plans and upon conversion of shares
of preferred stock.

  The Series A $2.40 Cumulative Convertible Preferred Stock, $1.00 par value per
share ("Series A Preferred Stock"), is convertible into common stock at the rate
of one share of common stock for each share of Series A Preferred Stock and is
redeemable, at the Company's option, at $44 per share, plus any accrued and
unpaid dividends. Each such share is entitled to one vote and generally votes
together with holders of common stocks as one class.

  Shares of Series E Preferred Stock, $1.00 par value per share, entitled the
holder to cumulative annual dividends of $3.523 per share, payable semi-
annually, and to 1.25 votes per share. Shares of Series E ESOP Convertible
Preferred Stock were convertible into the Company's common stock on a one-for-
one basis. During the fourth quarter of 1998, all outstanding shares of Series E
ESOP Convertible Preferred Stock were redeemed.

  The following table details changes in capital accounts:

<TABLE>
<CAPTION>
                                                                                                          Preferred Stock
                                                       Common Stock            Treasury Stock                    Series A
                                                  -----------------------------------------------------------------------------


Shares in thousands and dollars in millions          Shares    Dollars       Shares       Dollars      Shares     Dollars
-------------------------------------------------------------------------------------------------------------------------------
<S>                                                <C>         <C>          <C>           <C>          <C>        <C>
Balance at January 1, 1998                           50,556    $ 50.6         (1,558)     $ (40.5)        94      $   0.1
 Tender offer buy-back                                   --        --        (26,485)      (797.7)        --           --
 Acquisition of treasury stock                           --        --         (2,089)       (41.9)        --           --
 Issued under employee benefit plans                     --        --          1,395         36.7
 Redemption of Series E Preferred stock                  --        --             --           --         --           --
 Conversion of Series A Preferred stock                  --        --             12          0.3        (12)          --
 Minimum pension liability
  (net of tax of $18.3 cr.)                              --        --             --           --         --           --
Other changes                                            --        --            (74)        (2.2)        --           --
                                                  -----------------------------------------------------------------------------
Balance at December 31, 1998                         50,556      50.6        (28,799)      (845.3)        82          0.1
 Conversion of RT Class A Common stock                   --        --          3,265         95.6         --           --
 Acquisition of treasury stock                           --        --           (264)        (5.4)        --           --
 Issued under employee stock plans                       --        --              6          0.2         --           --
 Minimum pension liability
  (net of tax of $18.3)                                  --        --             --           --         --           --
 Foreign currency translation                            --        --             --           --         --           --
 Other changes                                           --        --              9          0.2         --           --
                                                  -----------------------------------------------------------------------------
Balance at December 31, 1999                         50,556      50.6        (25,783)      (754.7)        82          0.1
 Acquisition of treasury stock                           --        --             (3)        (0.1)        --           --
 Issued under employee stock plans                       --        --             (2)          --         --           --
 Conversion of Series A Preferred stock                  --        --              1          0.1         (1)          --
 Foreign currency translation                            --        --             --           --         --           --
 Other changes                                           --        --              5          0.6         --           --
                                                  -----------------------------------------------------------------------------
Balance at December 31, 2000                         50,556    $ 50.6        (25,782)     $(754.1)        81      $   0.1
-------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
                                                                                                           Other
                                                                                   Capital in           Accumulated
                                                            Preferred Stock        Excess of           Comprehensive
                                                                   Series E        Par Value               Income
                                                       -----------------------------------------------------------------------
                                                                                                  Foreign        Minimum
                                                                                                  Currency       Pension
Shares in thousands and dollars in millions              Shares      Dollars         Dollars      Translation    Liability
------------------------------------------------------------------------------------------------------------------------------
<S>                                                     <C>         <C>             <C>           <C>            <C>
Balance at January 1, 1998                                3,015     $   3.0         $ 1,032.5       $ (3.3)      $  --
 Tender offer buy-back                                       --          --                --           --          --
 Acquisition of treasury stock                               --          --                --           --          --
 Issued under employee benefit plans                         10          --              (2.5)          --          --
 Redemption of Series E Preferred stock                  (3,025)       (3.0)           (144.0)          --          --
 Conversion of Series A Preferred stock                      --          --              (0.4)          --          --
 Minimum pension liability
  (net of tax of $18.3 cr.)                                  --          --                --           --       (26.9)
Other changes                                                --          --              11.6           --          --
                                                       -----------------------------------------------------------------------
Balance at December 31, 1998                                 --          --             897.2         (3.3)      (26.9)
 Conversion of RT Class A Common stock                       --          --             (33.7)          --          --
 Acquisition of treasury stock                               --          --                --           --          --
 Issued under employee stock plans                           --          --              (0.1)          --          --
 Minimum pension liability
  (net of tax of $18.3)                                      --          --                --           --        26.9
 Foreign currency translation                                --          --                --          0.4          --
 Other changes                                               --          --              (0.1)          --          --
                                                       -----------------------------------------------------------------------
Balance at December 31, 1999                                 --          --             863.3         (2.9)         --
 Acquisition of treasury stock                               --          --                --           --          --
 Issued under employee stock plans                           --          --              (0.1)          --          --
 Conversion of Series A Preferred stock                      --          --                --           --          --
 Foreign currency translation                                --          --                --         (1.4)         --
 Other changes                                               --          --              (0.4)          --          --
                                                       -----------------------------------------------------------------------
Balance at December 31, 2000                                 --     $    --         $   862.8       $ (4.3)       $ --
------------------------------------------------------------------------------------------------------------------------------
</TABLE>

22  Ryerson Tull, Inc. and Subsidiary Companies
<PAGE>

Note 7: Stock Option Plans

The Company has adopted the disclosure-only provisions of FASB Statement No.
123, "Accounting for Stock-Based Compensation." Accordingly, no compensation
cost has been recognized for the stock option plans. Had compensation cost for
the option plans been determined, based on the fair value at the grant date for
awards in 2000, 1999, and 1998, consistent with the provisions of FASB Statement
No. 123, the Company's net income and earnings per share would have been reduced
to the pro forma amounts indicated below:

--------------------------------------------------------------------------------
Dollars in millions (except per share data)      2000      1999     1998

Net income (loss)-as reported                 $  (29.9)  $  55.7  $  550.9
Net income (loss)-pro forma                   $  (32.8)  $  53.0  $  547.0
Earnings per share-as reported                $  (1.22)  $  2.27  $  13.79
Earnings per share-pro forma                  $  (1.34)  $  2.16  $  13.69
--------------------------------------------------------------------------------

  The fair value of each option grant is estimated on the date of grant using
the Black-Scholes option-pricing model with the following weighted-average
assumptions used for grants in 2000: dividend yield of 1.00%; expected
volatility of 43.59%; risk-free interest rate of 6.69%; and expected term of
five years.

  In March 1999, after the merger of the Company and RT, the Compensation
Committee of the Board of Directors of the Company authorized the substitution
of Company common stock options for RT common stock options. As the exercise
price of substituted options exceeded the then current market price of Company
stock, and all other terms of the options remained unchanged, there was no
material increase in value to the employees, resulting from the substitution,
and no material increase in cost to the Company. Company stock options totaling
1,005,375 were substituted for 1,648,297 RT stock options. Options substituted
retain their originally granted vesting schedules. During 1998, RT granted
options to employees under a separate plan. 87 percent of the compensation cost
for these options, had they been determined on the fair value at the grant date,
consistent with the provisions of FASB Statement No. 123, is included in the
above pro forma numbers.

Company Plan

The 1999 Incentive Stock Plan, approved by stockholders on April 28, 1999,
provides for the issuance, pursuant to options and other awards, of 1.0 million
shares of common stock, plus shares available for issuance under the 1995 and
1992 Incentive Stock Plans, to officers and other key employees. As of December
31, 2000, a total of 1,330,544 shares were available for future grants under the
Plan. Options remain outstanding and exercisable under the 1995 and 1992
Incentive Stock Plans; however, no further options may be granted under these
plans. Under the various plans, the per share option exercise price may not be
less than 100 percent of the fair market value per share on the date of grant.
Generally, options become exercisable over a three-year period with one-third
becoming fully exercisable at the end of each year. Options expire ten years
from the date of grant. During 2000, options were granted to 13 executive
officers under the 1999 Plan. The following summarizes the status of options
under the plans for the periods indicated:

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------
                                                                               Weighted-
                                                         Option Exercise        Average
                                          Number of       Price or Range       Exercise
                                            Shares          Per Share            Price
-----------------------------------------------------------------------------------------
<S>                                     <C>             <C>                   <C>
Options (granted and unexercised)
 at December 31, 1997
 (1,978,823 exercisable)                    2,585,236   $  21.38  -  39.75    $   27.72
     Granted                                  205,000      18.16  -  19.22        18.83
     Exercised                             (1,214,950)     19.22  -  28.50        24.26
     Forfeited                                 (9,700)     24.69  -  33.75        26.49
     Expired                                 (210,104)     25.50  -  39.75        35.53
                                        -------------------------------------------------

Options (granted and unexercised)
 at December 31, 1998
 (1,280,482 exercisable)                    1,355,482      18.16  -  39.75        28.14
     Granted                                  433,500      16.03  -  24.81        16.73
     Exercised                                     --                   --           --
     Forfeited                               (171,797)     17.13  -  39.75        25.77
     Expired                                 (690,524)     21.38  -  53.49        30.71
     Substituted for RT options             1,005,375      21.93  -  53.49        30.87
                                        -------------------------------------------------

Options (granted and unexercised)
 at December 31, 1999
 (1,262,170 exercisable)                    1,932,036      16.03  -  48.44        26.29
     Granted                                  450,100      12.13  -  19.56        19.47
     Exercised                                     --                   --           --
     Forfeited                                (30,919)     17.13  -  45.42        27.70
     Expired                                 (144,434)     21.38  -  45.42        32.44
                                        -------------------------------------------------

Options (granted and unexercised)
 at December 31, 2000
 (1,402,360 exercisable)                    2,206,783      12.13  -  48.44        24.48
-----------------------------------------------------------------------------------------
</TABLE>

The weighted-average fair value of options granted during 2000 was $8.42.

                                 Ryerson Tull, Inc. and Subsidiary Companies  23
<PAGE>

The following table summarizes information about fixed-price stock options
outstanding at December 31, 2000:

<TABLE>
<CAPTION>
                                         Options                                                Options
                                     Outstanding                                            Exercisable
------------------------------------------------------------------------------------------------------------------
                                            Weighted-             Weighted-                              Weighted-
Range of           Number of        Average Remaining               Average        Number of               Average
Exercise Prices       Shares         Contractual Life        Exercise Price           Shares        Exercise Price
------------------------------------------------------------------------------------------------------------------
<S>                <C>              <C>                      <C>                   <C>              <C>
$ 28.76               7,800            1/2 year               $  28.76                    7,800      $     28.76
  25.50 to 34.31     44,102              1 year                  31.02                   44,102            31.02
  26.13 to 35.16     71,259              2 years                 32.25                   71,259            32.25
  30.88             135,800              3 years                 30.88                  135,800            30.88
  41.55 to 48.44     81,782              3 years                 42.80                   81,782            42.80
  28.50 to 38.35    168,513              4 years                 33.09                  168,513            33.09
  22.69 to 33.22    304,255              5 years                 31.43                  304,255            31.43
  23.05             174,830              6 years                 23.05                  174,830            23.05
  19.22 to 25.82    263,020              7 years                 21.69                  188,136            21.61
  32.07              17,080              7 years                 32.07                   11,444            32.07
  16.03 to 24.81    482,542              8 years                 16.82                  209,489            17.04
  19.56 to 20.56    450,300              9 years                 19.60                    4,950            20.66
  12.13               5,500              9 years                 12.13                       --              N/A
------------------------------------------------------------------------------------------------------------------
</TABLE>

  Stock appreciation rights ("SARs") may also be granted with respect to shares
subject to outstanding options. No SAR has been granted since 1990. SAR-
compensation expense recorded by the Company was not material for any of the
last three years.

The 1999 Plan also provides, as did the 1995 and 1992 Plans, for the granting of
restricted stock and performance awards to officers and other key employees.
During 2000, performance awards totaling 56,800 shares were granted, while
3,014 shares subject to performance awards were forfeited. Also during 2000,
2,440 shares of previously granted restricted stock vested, while 7,252 shares
were forfeited. No new restricted stock was issued in 2000. During 1999,
restricted stock awards totaling 8,500 shares and performance awards totaling
55,000 shares were granted. Also, during 1999, 12,964 shares of previously
granted restricted stock awards vested, while 1,372 shares of restricted stock
awards were forfeited; 33,132 shares of restricted stock were substituted for RT
restricted stock; and 2,848 shares were issued to recipients of performance
awards previously granted, while 45,413 shares subject to performance awards
were forfeited. During the first half of 1998, ten restricted stock awards
totaling 30,000 shares were granted. At the effective time of the ISC/Ispat
Transaction, 55,000 shares of restricted stock awards, which represented all
unvested restricted stock awards and included the 1998 awards, vested. In
addition, 276,760 performance shares vested, while 9,020 performance shares were
forfeited.

  At December 31, 2000, there were 18,062 shares of restricted stock granted,
but not vested, and 14,752 shares from performance awards earned, but not
vested.

  Until July 31, 1998, the Company also sponsored an employee stock purchase
plan under which employees could utilize payroll reductions to purchase stock at
the end of six-month periods at a price equal to 90 percent of the fair market
value price on the last day of the period. In 1998, employees received stock
with a total value that was approximately $60,000 greater than the price paid
for the stock issued. During the third quarter of 1998, the Company elected to
terminate the employee stock purchase plan.


Director Plan

The Ryerson Tull Directors' 1999 Stock Option Plan (the "Directors' Option
Plan") provides that each person who is a non-employee director as of the close
of each annual meeting, beginning with the 1999 annual meeting, will be awarded
a stock option for shares having a value of $20,000 (based on the Black-Scholes
option-pricing model) and an exercise price equal to the fair market value of
the Company's common stock on the date of grant. Individuals who become non-
employee directors other than at an annual meeting are at the time of their
election or appointment as non-employee directors awarded stock options for
shares having a value that is prorated to reflect a partial year's service. The
options awarded under the Directors' Option Plan may not be exercised prior to
the day after the six-month anniversary of the grant date and expire no later
than ten years after the date of grant. A total of 300,000 shares of the
Company's common stock are reserved for issuance under the Directors' Option
Plan.

   On April 27, 2000, seven directors were granted a total of 26,180 option
shares at an option price of $12.13. Half of the options vested after six months
with the remaining option shares vesting at the time of the 2001 Annual Meeting
of Stockholders.

RT Plan

The Ryerson Tull 1996 Incentive Stock Plan (the "RT Plan") provided for the
issuance, pursuant to options and other awards, of 2.3 million shares of RT
common stock to officers and other key employees. Under this plan, the per share
option exercise price was not less than 100 percent of the fair market value per
share on the date of grant. With the completion of the merger of the Company and
RT on February 25, 1999, no further shares were, or will be issued under the RT
Plan. The following summarizes the status of RT options under the RT Plan for
the periods indicated:

24 Ryerson Tull, Inc. and Subsidiary Companies
<PAGE>

<TABLE>
<CAPTION>


                                                        Option
                                                      Exercise         Weighted-
                                                         Price           Average
                                       Number of      or Range          Exercise
                                          Shares     Per Share             Price
--------------------------------------------------------------------------------
<S>                                    <C>           <C>               <C>
Options (granted and unexercised)
  at January 1, 1998
  (713,514 exercisable)                   1,332,085   $ 14.06 - 32.63    $20.67
     Granted                                421,500     13.38 - 19.56     13.79
     Exercised                              (31,469)    14.06 - 20.93     17.86
     Expired                                (20,881)    30.99             30.99
     Forfeited                              (48,015)    13.38 - 32.63     20.98
                                       ----------------------------------------
Options (granted and unexercised)
  at December 31, 1998
  (920,176 exercisable)                   1,653,220     13.38 - 32.63     18.83
      Forfeited                              (4,923)    13.38 - 20.26     17.61
  Substituted by Company options         (1,648,297)    13.38 - 32.63     18.83
Options at December 31, 1999                     --                --        --
                                       ----------------------------------------
</TABLE>

  The RT Plan provided that SARs may be granted with substantially the same
terms as the Company Plan. In 1998, SARs were granted with respect to 90,000
shares payable in cash, except under limited circumstances, at the rate of one
SAR for each share subject to option.

  The Plan provided for the granting of restricted stock and performance awards
to officer and other key employees. During 1998, restricted stock awards
totaling 31,750 shares were granted 46 key employees. Performance awards
totaling 91,800 shares were granted, while shares totaling 81,911 were
forfeited when performance thresholds were not met. Also during 1998, 13,267
shares of previously granted, restricted stock awards vested, while 2,500 shares
of restricted stock were forfeited.

  Upon completion of the merger of the Company and RT, each RT option, SAR, and
restricted stock share was substituted by 0.61 share of Company options and
restricted stock. In addition, the exercise price of each option was adjusted by
dividing the pre-merger exercise price per share of each RT option by 0.61.

Note 8: Stockholder Rights Plan

Pursuant to a stockholder rights plan, on November 25, 1997, the Company's Board
of Directors declared a dividend distribution, payable to stockholders of record
on December 17, 1997, of one preferred stock purchase right (a "Right") for each
outstanding share of the Company's common stock. The Rights will expire December
17, 2007. On September 22, 1999, the stockholder rights plan was amended. Under
this amended Plan, the Rights will separate from the common stock, and a
distribution will occur upon the earlier of (i) ten days following an
announcement that a person or group has acquired beneficial ownership of 10% or
more of the outstanding common stock or the date a person enters an agreement
providing for certain acquisition transactions or (ii) ten business days
following publication of a tender or exchange offer that would result in any
person or group beneficially owning 10% or more of the common stock (or a later
date as the Board determines). Any person that publicly announced prior to
September 22, 1999 that it holds 10% or more of the outstanding common stock
("Existing 10% Stockholder") will not cause a distribution to occur unless that
person acquires additional common stock, resulting in ownership of 15% or more.

  In the event that any person or group acquires 10% or more of the outstanding
shares of common stock (15% in the case of an Existing 10% Stockholder), each
Right will entitle the holder, other than such acquiring person or group, to
purchase that number of shares of common stock of the Company having a market
value of twice the exercise price of the Right. At any time thereafter, if the
Company consummates certain business combination transactions or sells
substantially all of its assets, each Right will entitle the holder, other than
the person or group acquiring 10% or more of the outstanding shares of common
stock, to purchase that number of shares of the surviving Company stock, which
at the time of the transaction would have a market value of twice the exercise
price of the Right. The preceding sentences will not apply to (i) persons who
acquire common stock pursuant to an offer for all outstanding shares of common
stock, which the independent directors determine to be fair to and otherwise in
the best interest of the Company and its stockholders after receiving advice
from one or more investment banking firms and (ii) certain persons owning less
than 15% of the outstanding common stock (20% of the outstanding common stock in
the case of an Existing 10% Stockholder) who report their ownership on Schedule
13G under the Securities Exchange Act of 1934 or on Schedule 13D under the
Exchange Act, provided that they do not state any intention to or reserve the
right to control or influence the Company, and such persons certify that they
acquired their shares inadvertently and will not acquire any additional shares
of common stock.

  The Rights will not have voting rights and, subject to certain exceptions,
will be redeemable at the option of the Company at a price of one cent per Right
(subject to adjustments) at any time prior to the close of business on the
fifteenth day following public announcement that a person or group has acquired
beneficial ownership of 10% or more of the outstanding common stock or the date
a person enters an agreement providing for certain acquisition transactions. Any
Rights held by a person triggering a distribution date will become null and
void. The Board may exchange all or part of the Rights, except for those
acquired by the person or group acquiring 10% or more of the outstanding shares
of common stock, for shares of common or preferred stock of the Company. Until
a Right is exercised, the holder will have no rights as a stockholder. While the
distribution of the Rights will not be taxable to stockholders or the Company,
stockholders may recognize taxable income if the rights become exercisable.

                                  Ryerson Tull, Inc. and Subsidiary Companies 25
<PAGE>

Note 9: Derivatives and Fair Value of Financial Instruments

The following methods and assumptions were used to estimate the fair value of
each class of financial instruments for which it is practicable to estimate that
value.

Derivatives

The Company has only limited involvement with derivative financial instruments
and does not use them for speculative or trading purposes.

Cash and Cash Equivalents

The carrying amount of cash equivalents approximates fair value because of the
short maturity of those instruments.

Long-Term Debt

The estimated fair value of the Company's long-term debt and the current
portions thereof using quoted market prices of Company debt securities recently
traded and market-based prices of similar securities for those securities not
recently traded was $252 million at December 31, 2000 and $264 million at
December 31, 1999, as compared with the carrying value of $243 million and $259
million at year-end 2000 and 1999, respectively.

Note 10: Retirement Benefits

Prior to January 1, 1998, the Company's non-contributory defined benefit pension
plan covered certain employees, retirees, and their beneficiaries. Benefits
provided participants of the plan were based on pay and years of service for
salaried employees and years of service and a fixed rate or a rate determined by
job grade for all wage employees, including employees under collective
bargaining agreements.

  Effective January 1, 1998, RT froze the benefits accrued under its defined
benefit pension plan (the "Ryerson Tull Pension Plan") for certain salaried
employees, and instituted a defined contribution plan (the "Ryerson Tull Savings
Plan"). Effective March 31, 2000, benefits for certain salaried employees of J.
M. Tull Metals Company and AFCO Metals under the Ryerson Tull Pension Plan were
similarly frozen, with the employees becoming participants in the Ryerson Tull
Savings Plan. Salaried employees vested in their benefits accrued under the
defined benefit plan at December 31, 1997, and March 31, 2000, respectively, are
entitled to those benefits upon retirement. Certain transition rules have been
established for those salaried employees meeting specified age and service
requirements. For 2000, 1999, and 1998, expense recognized for such defined
contribution plan was $6.5 million, $5.3 million, and $4.6 million,
respectively.

  As part of the ISC/Ispat Transaction, the Inland Steel Industries Pension Plan
(the "ISC Pension Plan"), in which employees of both ISC and the Company
participated, was transferred to ISC. The Company's remaining employees that
formerly had participated in the ISC Pension Plan became participants in the
Company's Pension Plan.

  The Company has other deferred employee benefit plans, including a
supplemental pension plan, the liability for which totaled $8.1 million at year-
end 2000 and $6.5 million at year-end 1999.

  The following tables provide reconciliations of benefit obligations and fair
value of plan assets of the Company plans as well as the funded status and
components of net periodic benefit costs for each period related to each plan,
including the supplemental pension plan. The assumptions used to determine the
following information related to pension benefits and other postretirement
benefits, primarily retired health care, were as follows:

                                                        2000          1999
 Discount rate for calculating obligations              8.00%         7.75%
 Discount rate for calculating net
  periodic benefit cost                                 7.75          6.75
 Expected rate of return on plan assets                 9.50          9.50
 Rate of compensation increase                          4.00          4.00
---------------------------------------------------------------------------

 The data in the following tables pertain to continuing operations only:


<TABLE>
<CAPTION>
                                                        Years ended September 30
                                             Pension Benefits              Other Benefits
 Dollars in millions                      2000              1999        2000            1999
 <S>                                      <C>               <C>         <C>             <C>
 Change in Benefit Obligation
  Benefit obligation at
    beginning of year                      $ 315             $ 336       $  106          $ 105
  Service cost                                 5                 6            2              2
  Interest cost                               23                22            8              7
  Plan amendments                              2                 3           (1)            --
  Actuarial (gain)/loss                       12               (32)          25             (3)
  Company restructuring                        1                --            1             --
  Curtailment                                 (4)                1           --              1
  Benefits paid                              (24)              (21)          (8)            (6)
----------------------------------------------------------------------------------------------
Benefit obligation at end of year          $ 330             $ 315        $ 133          $ 106
----------------------------------------------------------------------------------------------
 Accumulated benefit
  obligation at end of year                $ 328             $ 307          N/A            N/A
----------------------------------------------------------------------------------------------
 Change in Plan Assets
  Plan assets at fair value at
    beginning of year                      $ 325             $ 286           --             --
  Actual return on plan assets                67                49           --             --
  Employer contribution                       --                11           --             --
  Benefits paid                              (24)              (21)          --             --
----------------------------------------------------------------------------------------------
 Plan assets at fair value
  at end of year                           $ 368             $ 325           --             --
----------------------------------------------------------------------------------------------
 Reconciliation of Prepaid
 (Accrued) and Total Amount
 Recognized
  Funded status                            $  38             $  10       $ (133)         $(106)
  Unrecognized net (gain)/loss               (21)                4            5            (21)
  Unrecognized prior service cost              7                 6          (17)           (18)
----------------------------------------------------------------------------------------------
  Prepaid (accrued) benefit cost
    at September 30                           24                20         (145)          (145)
  Change in account,
    October - December                        --                --            2              1
----------------------------------------------------------------------------------------------
  Net amount recognized
    at December 31                         $  24             $  20       $ (143)         $(144)
----------------------------------------------------------------------------------------------
 Amounts recognized in
 statement of financial
 position consist of:
  Prepaid (accrued) benefit cost           $  24             $  20       $ (143)         $(144)
  Accrued benefit liability                   --                --           --             --
  Intangible asset                            --                --           --             --
  Accumulated other
    comprehensive income                      --                --           --             --
----------------------------------------------------------------------------------------------
  Net amount recognized                    $  24             $  20       $ (143)         $(144)
----------------------------------------------------------------------------------------------
</TABLE>

26 Ryerson Tull, Inc. and Subsidiary Companies
<PAGE>

For measurement purposes, the annual rate of increase in the per capita cost of
covered health care benefits was 4.5 percent, the level at which it is expected
to remain.

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------
                                               Pension Benefits                 Other Benefits
---------------------------------------------------------------------------------------------------
Dollars in millions                           2000          1999            2000              1999
<S>                                           <C>           <C>             <C>              <C>
Components of net periodic
benefit cost
   Service cost                                $   5        $     6         $     2          $    2
   Interest cost                                  23             22               8               7
   Expected return on assets                     (30)           (27)             --              --
   Amortization of prior service cost              1              1              (2)             (2)
   Recognized actuarial (gain)/loss               --              1              (1)             --
---------------------------------------------------------------------------------------------------
   Net periodic benefit cost                   $  (1)       $     3         $     7          $    7
---------------------------------------------------------------------------------------------------
</TABLE>

The assumed health care cost trend rate has an effect on the amounts reported
for the health care plans. A one-percentage-point change in the assumed health
care cost trend rate would have the following effects:

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------
                                                  1%  increase   1%  decrease
-------------------------------------------------------------------------------
<S>                                               <C>            <C>
Dollars in thousands
-------------------------------------------------------------------------------
Effect on service cost plus interest cost         $        451   $         (361)
Effect on postretirement benefit obligation              5,290           (4,232)
-------------------------------------------------------------------------------
</TABLE>

Note 11: Restructuring Charge

During 2000, the Company recorded restructuring and plant closure
costs of $27.8 million, $23.3 million of which related to a restructuring
charge taken in the second quarter. The charge is the result of realigning
geographic divisions to improve responsiveness to local markets, exiting
non-core businesses, and centralizing administrative services to achieve
economics of scale. Included in the charge is severance for 319 employees. As
of December 31, 2000, there were 18 employees remaining to receive severance
payments from the Company as a result of the restructuring initiative. Details
of the restructuring charge are as follows:

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------
                                                                              Balance
                                                                                   at
                                    Restructuring                            December
                                           Charge        Utilized            31, 2000
---------------------------------------------------------------------------------------
Dollars in millions
<S>                                 <C>                  <C>                 <C>
Write-down of long-lived assets     $         9.3        $    9.3            $     --
Employee costs                                7.4             5.4                 2.0
Tenancy costs and other                       6.6             0.9                 5.7
                                    ---------------------------------------------------
                                    $        23.3        $   15.6            $    7.7
---------------------------------------------------------------------------------------
</TABLE>

The restructuring actions were substantially completed by December 31, 2000.

Note 12: Income Taxes

The elements of the provisions for income taxes related to continuing operations
for each of the three years indicated below were as follows:

<TABLE>
<CAPTION>
------------------------------------------------------------------------
                                         Years ended December 31
------------------------------------------------------------------------
Dollars in millions                    2000        1999        1998
<S>                                    <C>         <C>         <C>
 Current income taxes:
  Federal                              $    3.7    $   14.0    $    8.6
  State and foreign                         1.4         6.3         5.7
                                       ---------------------------------
                                            5.1        20.3        14.3
 Deferred income taxes                    (13.5)       14.5        16.3
                                       ---------------------------------
  Total tax expense (benefit)          $   (8.4)   $   34.8    $   30.6
------------------------------------------------------------------------
</TABLE>

The components of the deferred income tax assets and liabilities arising under
FASB Statement No. 109 were as follows:

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------
                                                                   December 31
-----------------------------------------------------------------------------------------
 Dollars in millions                                         2000               1999
<S>                                                        <C>                <C>
 Deferred tax assets (excluding post-
  retirement benefits other than pensions):
    Net operating loss and tax credit
     carryforwards                                         $   29             $   28
    Bad debt allowances                                         9                  2
    Other deductible temporary differences                     25                 12
    Less valuation allowances                                  (1)                --
                                                           ------------------------------
                                                               62                 42
                                                           ------------------------------
 Deferred tax liabilities:
    Fixed asset basis difference                               41                 31
    Other taxable temporary differences                         9                 15
                                                           ------------------------------
                                                               50                 46
                                                           ------------------------------
 Net deferred asset (liability) (excluding post-
  retirement benefits other than pensions)                     12                 (4)
 FASB Statement No. 106 impact (post-
  retirement benefits other than pensions)                     57                 57
                                                           ------------------------------
 Net deferred tax asset                                    $   69             $   53
-----------------------------------------------------------------------------------------
</TABLE>

For tax purposes, in conjunction with the Alternative Minimum Tax ("AMT") rules,
the Company had available at December 31, 2000, AMT credit carryforwards for tax
purposes of approximately $26 million, which may be used indefinitely to reduce
regular federal income taxes. The Company believes that it is more likely than
not that all of is tax credits will be realized.

     Subsequent to the adoption of FASB Statement No. 109, the Company adopted
FASB Statement No. 106 and recognized the entire transition obligation at
January 1, 1992, as a cumulative effect charge in 1992. At December 31, 2000,
the deferred tax asset related to the Company's FASB Statement No. 106
obligation was $57 million. To the extent that future annual charges under FASB
Statement No. 106 continue to exceed deductible amounts, this deferred tax asset
will continue to grow. Thereafter, even if the Company should have a tax loss in
any year in which the deductible amount would exceed the financial statement
expense, the tax law provides for a 20-year carryforward period of that loss.
Because of the extremely long period that is available to realize these future
tax benefits, a valuation allowance for this deferred tax asset is not
necessary.

                                Ryerson Tull, Inc. and Subsidiary Companies   27
<PAGE>

     Income taxes on continuing operations differ from the amounts computed by
applying the federal tax rate as follows:

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------
                                                  Years ended December 31
-------------------------------------------------------------------------------
Dollars in millions                            2000        1999         1998
<S>                                            <C>         <C>          <C>
Federal income tax expense computed
 at statutory tax rate of 35%                  $ (11.7)     $  25.9      $ 29.0
Additional taxes or credits from:
 State and local income taxes, net
  of federal income tax effect                    (0.3)         3.8         4.0
 Non-deductible expenses                           4.9          3.0         2.5
 Foreign losses (income) not includable
  in federal taxable income                        1.5          1.3        (1.2)
 Canadian taxes                                    0.2          0.4          --
 Change in estimate                               (3.0)          --          --
All other, net                                      --          0.4        (3.7)
                                              ---------------------------------
 Total income tax provision (benefit)          $  (8.4)     $  34.8      $ 30.6
-------------------------------------------------------------------------------
</TABLE>

Note 13: Acquisitions

During 1999, the Company acquired Washington Specialty Metals Corporation for
approximately $66 million in cash. The acquisition has been accounted for by the
purchase method of accounting, and the purchase price has been allocated to
assets acquired and liabilities assumed. Results of operations since the
acquisition are included in the consolidated results. The pro forma effect for
1999 and 1998, had this acquisition occurred at the beginning of each such year,
is not material.

  During the first quarter of 1998, the Company acquired Brockway Pressed
Metals, Inc., a powder metallurgy company. During the fourth quarter of 1998,
Brockway was sold as part of the sale of Inland Engineered Materials
Corporation.

Note 14: Earnings Per Share

Basic earnings (loss) per share

<TABLE>
<CAPTION>
Dollars and shares in millions
(except per share data)                         2000       1999        1998
<S>                                             <C>        <C>         <C>
Income (loss) from continuing operations
 before discontinued operations and
 extraordinary items                            $ (25.1)   $ 38.4      $ 47.7
Less preferred stock dividends                      0.2       0.2         6.9
                                                -----------------------------
Income (loss) from continuing operations
 available to common stockholders                 (25.3)     38.2        40.8
Discontinued operations                              --        --        13.8
Gain (loss) on sale of discontinued operations     (4.8)     17.3       510.8
Extraordinary loss on early retirement of debt       --        --       (21.4)
                                                -----------------------------
Net income (loss) available to
 common stockholders                            $ (30.1)   $ 55.5      $544.0
                                                -----------------------------
Average shares of common stock outstanding         24.8      24.4        39.4
                                                -----------------------------
Basic earnings (loss) per share
 From continuing operations                     $ (1.03)   $ 1.56      $ 1.03
 Discontinued operations                             --        --        0.35
 Gain (loss) on sale of
  discontinued operations                         (0.19)     0.71       12.95
 Extraordinary loss on early
  retirement of debt                                 --        --       (0.54)
                                                -----------------------------
 Basic earnings (loss) per share                $ (1.22)   $ 2.27      $13.79
-----------------------------------------------------------------------------
</TABLE>


Diluted earnings (loss) per share

<TABLE>
<CAPTION>
Dollars and shares in millions
(except per share data)                           2000       1999        1998
<S>                                             <C>        <C>         <C>
Income (loss) from continuing operations
 available to common stockholders               $ (25.3)   $ 38.2      $  40.8
Effect of dilutive securities:
 Series E leveraged preferred stock                  --        --          6.3
 Additional ESOP funding required on
  conversion of Series E leveraged
  preferred stock, net of tax                        --        --         (5.9)
                                                ------------------------------
Income (loss) available to common
 stockholders and assumed conversions
 before discontinued operations and
 extraordinary items                              (25.3)     38.2         41.2
Discontinued operations                              --        --         13.8
Gain (loss) on sale of discontinued operations     (4.8)     17.3        510.8
Extraordinary loss on early retirement of debt       --        --        (21.4)
                                                ------------------------------
Net income (loss) available to common
 stockholders and assumed conversions           $ (30.1)   $ 55.5      $ 544.4
                                                ------------------------------
Average shares of common stock outstanding         24.8      24.4         39.4
Assumed conversion of Series E leveraged
 preferred stock                                     --        --          2.2
Dilutive effect of stock options                     --       0.2          0.1
                                                ------------------------------
Shares outstanding for diluted earnings per
 share calculation                                 24.8      24.6         41.7
                                                ------------------------------
Diluted earnings (loss) per share:
 From continuing operations                     $ (1.03)   $ 1.56      $  0.99
 Discontinued operations                             --        --         0.33
 Gain (loss) on sale of discontinued
  operations                                      (0.19)     0.70        12.23
 Extraordinary loss on early retirement
  of debt                                            --        --        (0.51)
                                                ------------------------------
Diluted earnings (loss) per share               $ (1.22)   $ 2.26      $ 13.04
------------------------------------------------------------------------------
</TABLE>

28 Ryerson Tull, Inc. and Subsidiary Companies
<PAGE>

Note 15: Commitments and Contingencies

ISC/Ispat Transaction

Pursuant to the ISC/Ispat Merger Agreement, the Company agreed to indemnify
Ispat for losses, if they should arise, exceeding certain minimum amounts in
connection with breaches of representations and warranties contained in the
ISC/Ispat Merger Agreement and for expenditures and losses, if they should
arise, relating to certain environmental liabilities exceeding, in most
instances, minimum amounts. The maximum liability for which the Company can be
responsible with respect to such obligations is $90 million in the aggregate.
There are also certain other covenant commitments made by the Company contained
in the ISC/Ispat Merger Agreement which are not subject to a maximum amount. In
general, Ispat must have made indemnification claims with respect to breaches of
representations and warranties prior to March 31, 2000; however, claims relating
to breaches of representations and warranties related to tax matters and certain
organizational matters must be made within 90 days after the expiration of the
applicable statute of limitations, and claims with respect to breaches of
representations and warranties related to environmental matters must be made
prior to July 16, 2003. Ispat has advised the Company of certain environmental
expenses, which Ispat has incurred, and of certain environmental claims, but the
Company has not made any indemnification payments to Ispat. The Company has
purchased environmental insurance with coverage up to $90 million covering
certain environmental matters payable directly to Ispat and ISC.

     As part of the ISC/Ispat Transaction, the Inland Steel Industries Pension
Plan (the "ISC Pension Plan"), in which employees of both ISC and the Company
participated, was transferred to ISC. The Company's remaining employees that
formerly had participated in the ISC Pension Plan became participants in Ryerson
Tull's pension plan. The ISC Pension Plan has unfunded benefit liabilities on a
termination basis, as determined by the Pension Benefit Guaranty Corporation
("PBGC"), an agency of the U.S. government. As a condition to completing the
ISC/Ispat Transaction, Ispat, ISC, RT and the Company entered into an agreement
with the PBGC to provide certain financial commitments to reduce the
underfunding of the ISC Pension Plan and to secure ISC Pension Plan unfunded
benefit liabilities on a termination basis. These requirements include a RT
guaranty of $50 million, for five years, of the obligations of Ispat and ISC to
the PBGC in the event of a distress or involuntary termination of the ISC
Pension Plan. The guaranty is included in the $90 million limit on the Company's
indemnification obligations.

     By letter dated May 11, 1999, Ispat advised the Company of its involvement
in a civil lawsuit and federal criminal grand jury proceeding in Louisiana and
notified the Company of its intention to seek indemnification from the Company
in connection with the Louisiana proceedings. In letters dated March 31, 2000,
Ispat notified the Company that Ispat was asserting claims against the Company
under the Merger Agreement related to certain pension liabilities, insurance
premiums, property taxes, environmental matters, intellectual property and the
Louisiana proceedings. On January 17, 2001, Ispat announced that it had reached
agreement on the resolution of the Louisiana proceedings. To resolve the matter,
Ispat has agreed to pay $15 million, one half of the total settlement among the
United States Federal Government, the State of Louisiana and the defendants in
the civil lawsuit. The settlement has been approved by the U.S. District Court
in Baton Rouge, Louisiana. Ispat has made a demand on the Company for
indemnification of the $15 million settlement amount. The Company disputes
Ispat's claim and will attempt to resolve the dispute through negotiations. At
year-end 2000, the Company recorded a $7.5 million pretax charge for the
potential exposure related to the Louisiana proceedings.

     The Company is unable to determine Ispat's right to indemnification under
the Merger Agreement or whether any of the claims discussed above would,
individually or in the aggregate, have a material adverse effect on the
Company's financial condition or results of operations.

Bankrupt Coil Converter

In 2000, the Company fully reserved for a $16.2 million receivable due from a
west central Indiana coil converter which filed for bankruptcy. In addition to
the $16.2 million receivable, at year-end the Company had approximately $6
million of inventory at the converter's site for processing. The Company claims
title to this inventory, which claim could be challenged in the coil converter's
bankruptcy case. The Company cannot predict the outcome of such challenge should
it occur.

Mexican Joint Venture

In March 2000, the Company and Altos Hornos de Mexico, S.A. de C.V. ("AHMSA")
entered into an agreement to sell the Company's 50 percent interest in their
joint venture to AHMSA for $15 million, with payment due in July 2000. At
December 31, 2000, the Company had not received payment under the agreement. The
Company and AHMSA have continued discussions and, although there are no
assurances, the Company expects to consummate the sale.

Lease Obligations and Other

The Company has noncancellable operating leases for which future minimum rental
commitments are estimated to total $67.9 million, including approximately $20.3
million in 2001, $12.4 million in 2002, $10.4 million in 2003, $5.0 million in
2004, $3.8 million in 2005 and $15.9 million thereafter.

     Rental expense under operating leases totaled $19.7 million in 2000, $20.2
million in 1999 and $20.7 million in 1998.

     There are various claims and pending actions against the Company other than
those related to the ISC/Ispat Transaction. The amount of liability, if any, for
those claims and actions at December 31, 2000 is not determinable but, in the
opinion of management, such liability, if any, will not have a materially
adverse effect on the Company's financial position or results of operations.

                                Ryerson Tull, Inc. and Subsidiary Companies |29|