----

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**EXHIBIT      99.1**

**TAMCO      FINANCIAL STATEMENTS**

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**TAMCO      FINANCIAL STATEMENTS**

**NOVEMBER      30, 2006, 2005 AND 2004**

**Table      of Contents**

|                                                                                                    | **Page** |
|---------------------------------------------------------------------------------------------------------|----------|
| **REPORT                      OF INDEPENDENT AUDITORS**                                            | **3**    |
| **TAMCO                      BALANCE SHEET**                                                       | **4**    |
| **TAMCO                      STATEMENTS OF INCOME AND COMPREHENSIVE                      INCOME**  | **5**    |
| **TAMCO                      STATEMENTS OF SHAREHOLDER                      EQUITY**               | **6**    |
| **TAMCO                      STATEMENTS OF CASH FLOWS**                                            | **7**    |
| **TAMCO                      NOTES TO FINANCIAL STATEMENTS**                                       | **8**    |

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**REPORT      OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING      FIRM**

**REPORT        OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

*Table            of Contents*

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**TAMCO      BALANCE SHEETS**

| *(in                  thousands, except share and per share amounts)*              |   | **2006** |        | **2005** |   |
|------------------------------------------------------------------------------------|--------|----------|-------------|----------|--------|
| **Assets**                                                                         |   |     |        |     |   |
| Current                  assets                                                    |   |     |        |     |   |
| Cash                                                                               |   | **$**    | **264**     |     | $      | 3 |   |
| Trade                  receivables, net of allowances of $80 and $80               |   |     |        |     |   |   |   |
| in                  2006 and 2005, respectively                                    |   |     | **12,584**  |     |   | 9,535 |   |
| Due                  from shareholders                                             |   |     | **808**     |     |   | 491 |   |
| Other                  receivables                                                 |   |     | **18**      |     |   | 643 |   |
| Inventories                                                                        |   |     | **46,832**  |     |   | 51,191 |   |
| Deferred                  income taxes (Note 6)                                    |   |     | **3,316**   |     |   | 2,297 |   |
| Prepaid                  expenses and tooling                                      |   |     | **944**     |     |   | 1,010 |   |
| Total                  current assets                                              |   |     | **64,766**  |     |   | 65,170 |   |
| Property,                  plant and equipment                                     |   |     |        |     |   |   |   |
| Land                                                                               |   |     | **1,191**   |     |   | 1,191 |   |
| Processing                  facilities and equipment                               |   |     | **101,532** |     |   | 93,974 |   |
| Construction                  in process                                           |   |     | **870**     |     |   | 3,230 |   |
|                                                                               |   |     | **103,593** |     |   | 98,395 |   |
| Less:                  Accumulated depreciation and amortization                   |   |     | **(70,732** | **)**    |   | (70,293 | ) |
| Property,                  plant and equipment, net                                |   |     | **32,861**  |     |   | 28,102 |   |
| Other                  assets                                                      |   |     | **1,328**   |     |   | 16 |   |
| Total                  assets                                                      |   | **$**    | **98,955**  |     | $      | 93,288 |   |
| **Liabilities                  and Shareholders' Equity**                          |   |     |        |     |   |   |   |
| Current                  liabilities                                               |   |     |        |     |   |   |   |
| Borrowings                  under line of credit (Note 3)                          |   | **$**    | **24,000**  |     | $      | 19,200 |   |
| Trade                  payables                                                    |   |     | **13,340**  |     |   | 17,924 |   |
| Other                  accrued liabilities                                         |   |     | **9,094**   |     |   | 4,481 |   |
| Total                  current liabilities                                         |   |     | **46,434**  |     |   | 41,605 |   |
| Long-term                  liabilities                                             |   |     |        |     |   |   |   |
| Other                  long-term liabilities (Notes 1 and 4)                       |   |     | **4,668**   |     |   | 6,922 |   |
| Deferred                  income taxes (Note 6)                                    |   |     | **3,112**   |     |   | 1,466 |   |
| Total                  long-term liabilities                                       |   |     | **7,780**   |     |   | 8,388 |   |
| Commitments                  and contingencies (Note 7)                            |   |     |        |     |   |   |   |
| Shareholders'                  equity                                              |   |     |        |     |   |   |   |
| Common                  stock, $100 par value, authorized, issued and outstanding, |   |     |        |     |   |   |   |
| 220,000                  and 220,000 shares in 2006 and 2005                       |   |     | **19,482**  |     |   | 19,482 |   |
| Retained                  earnings                                                 |   |     | **27,451**  |     |   | 26,900 |   |
| Accumulated                  other comprehensive loss                              |   |     | **(2,192**  | **)**    |   | (3,087 | ) |
| Total                  shareholders' equity                                        |   |     | **44,741**  |     |   | 43,295 |   |
| Total                  liabilities and shareholders' equity                        |   | **$**    | **98,955**  |     | $      | 93,288 |   |

*The      accompanying notes are an integral part of these financial      statements.*

*Table            of Contents*

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**TAMCO      STATEMENTS OF INCOME AND COMPREHENSIVE      INCOME**

| *(in                  thousands)*                                            |   | **2006** |        | **2005** |   | **2004** |   |
|------------------------------------------------------------------------------|--------|----------|-------------|----------|--------|----------|--------|
| Revenue                                                                      |   |     |        |     |   |     |   |
| Gross                  sales                                                 |   | **$**    | **275,091** |     | $      | 254,184  |   | $ | 217,284 |   |
| Cash                  discounts allowed                                      |   |     | **(2,055**  | **)**    |   | (1,749   | )      |   | (1,435 | ) |
| Total                  revenue                                               |   |     | **273,036** |     |   | 252,435  |   |   | 215,849 |   |
| Cost                  of sales                                               |   |     | **206,180** |     |   | 204,542  |   |   | 163,741 |   |
| Loading                  and freight                                         |   |     | **5,520**   |     |   | 5,705    |   |   | 6,223 |   |
| Total                  costs of sales                                        |   |     | **211,700** |     |   | 210,247  |   |   | 169,964 |   |
| Gross                  profit                                                |   |     | **61,336**  |     |   | 42,188   |   |   | 45,885 |   |
| General                  and administrative expenses                         |   |     | **8,332**   |     |   | 7,445    |   |   | 6,358 |   |
| Income                  from operations                                      |   |     | **53,004**  |     |   | 34,743   |   |   | 39,527 |   |
| Other                  expenses (income), net                                |   |     |             |     |   |          |   |   |  |   |
| Interest                                                                     |   |     | **1,164**   |     |   | 396      |   |   | 180 |   |
| Other                                                                        |   |     | **(255**    | **)**    |   | (92      | )      |   | (215 | ) |
| Total                  other expenses (income)                               |   |     | **909**     |     |   | 304      |   |   | (35 | ) |
| Income                  before provision for income taxes                    |   |     | **52,095**  |     |   | 34,439   |   |   | 39,562 |   |
| Provision                  for income taxes (Note 6)                         |   |     | **21,536**  |     |   | 14,048   |   |   | 16,135 |   |
| Net                  income                                                  |   |     | **30,559**  |     |   | 20,391   |   |   | 23,427 |   |
| Unrealized                  (loss) income on gas swap derivative, net of tax |   |     | **-**       |     |   | (248     | )      |   | 1,907 |   |
| Minimum                  pension liability adjustment, net of tax            |   |     | **895**     |     |   | (660     | )      |   | (289 | ) |
| Comprehensive                  income                                        |   | **$**    | **31,454**  |     | $      | 19,483   |   | $ | 25,045 |   |

*The      accompanying notes are an integral part of these financial      statements.*

*Table            of Contents*

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**TAMCO      STATEMENTS OF SHAREHOLDER EQUITY**

|                                                    |   |                              |    |         |   |         |   | **Accumulated                  Other**   |    |                                 |   |
|---------------------------------------------------------|--------|-----------------------------------|---------|--------------|--------|--------------|--------|------------------------------------------|---------|--------------------------------------|--------|
|                                                    |   |                              |    |         |   |         |   | **Comprehensive                  Loss,** |    |                                 |   |
|                                                    |   |                              |    |         |   |         |   | **Net                  of Tax**          |    |                                 |   |
|                                                    |   |                              |    |         |   |         |   | **Minimum**                              |    | **Unrealized                  Gain** |   |   |   |
|                                                    |   | **Common                  Stock** |    | **Retained** |   | **Pension**  |   | **(Loss)                  on Gas Swap**  |    |                                 |   |
| *(in                  thousands, except share amounts)* |   | **Shares**                        |    | **Amount**   |   | **Earnings** |   | **Liability**                            |    | **Derivative**                       |   | **Total** |   |
|                                                    |   |                              |    |         |   |         |   |                                     |    |                                 |   |   |   |
| **Balances                  at November 30, 2003**      |   |                              | 220,000 |         | $      | 19,482       |   | $                                        | 26,345  |                                 | $      | (2,138 | ) | $ | (1,659 | ) | $ | 42,030 |   |
| Net                  income                             |   |                              | -       |         |   | -            |   |                                     | 23,427  |                                 |   | - |   |   |   |   |   | 23,427 |   |
| Minimum                  pension liability adjustment   |   |                              | -       |         |   | -            |   |                                     | -       |                                 |   | (289 | ) |   | - |   |   | (289 | ) |
| Unrealized                  gain on gas swap derivative |   |                              | -       |         |   | -            |   |                                     | -       |                                 |   | - |   |   | 1,907 |   |   | 1,907 |   |
| Dividends                  to shareholders              |   |                              | -       |         |   | -            |   |                                     | (19,360 | )                                    |   | - |   |   | - |   |   | (19,360 | ) |
| **Balances                  at November 30, 2004**      |   |                              | 220,000 |         |   | 19,482       |   |                                     | 30,412  |                                 |   | (2,427 | ) |   | 248 |   |   | 47,715 |   |
| Net                  income                             |   |                              | -       |         |   | -            |   |                                     | 20,391  |                                 |   | - |   |   |   |   |   | 20,391 |   |
| Minimum                  pension liability adjustment   |   |                              | -       |         |   | -            |   |                                     | -       |                                 |   | (660 | ) |   | - |   |   | (660 | ) |
| Unrealized                  loss on gas swap derivative |   |                              | -       |         |   | -            |   |                                     | -       |                                 |   | - |   |   | (248 | ) |   | (248 | ) |
| Dividends                  to shareholders              |   |                              | -       |         |   | -            |   |                                     | (23,903 | )                                    |   | - |   |   | - |   |   | (23,903 | ) |
| **Balances                  at November 30, 2005**      |   |                              | 220,000 |         |   | 19,482       |   |                                     | 26,900  |                                 |   | (3,087 | ) |   | - |   |   | 43,295 |   |
| Net                  income                             |   |                              | -       |         |   | -            |   |                                     | 30,559  |                                 |   | - |   |   |   |   |   | 30,559 |   |
| Minimum                  pension liability adjustment   |   |                              | -       |         |   | -            |   |                                     | -       |                                 |   | 895 |   |   | - |   |   | 895 |   |
| Dividends                  to shareholders              |   |                              | -       |         |   | -            |   |                                     | (30,008 | )                                    |   | - |   |   | - |   |   | (30,008 | ) |
| **Balances                  at November 30, 2006**      |   |                              | 220,000 |         | $      | 19,482       |   | $                                        | 27,451  |                                 | $      | (2,192 | ) | $ | - |   | $ | 44,741 |   |

*The      accompanying notes are an integral part of these financial      statements.*

*Table            of Contents*

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**TAMCO      STATEMENTS OF CASH FLOWS**

| *(in                  thousands)*                                            |   | **2006** |    | **2005** |   | **2004** |   |
|------------------------------------------------------------------------------|--------|----------|---------|----------|--------|----------|--------|
| **Cash                  flows from operating activities**                    |   |     |    |     |   |     |   |
| Net                  income                                                  |   | $        | 30,559  |     | $      | 20,391   |   | $ | 23,427 |   |
| Adjustments                  to reconcile net income to net cash (used in)   |   |     |    |     |   |     |   |   |   |   |
| provided                  by operating activities                            |   |     |    |     |   |     |   |   |   |   |
| Depreciation                  and amortization                               |   |     | 4,426   |     |   | 5,005    |   |   | 5,239 |   |
| Deferred                  income tax (benefit) expense                       |   |     | 10      |     |   | (207     | )      |   | (1,004 | ) |
| Loss/(profit)                  on sale/abandonment of property and equipment |   |     | 187     |     |   | (14      | )      |   | 31 |   |
| Net                  noncash gas swap derivative gain                        |   |     | -       |     |   | (376     | )      |   | (489 | ) |
| Changes                  in operating assets and liabilities                 |   |     |    |     |   |     |   |   |   |   |
| Receivables                                                                  |   |     | (2,741  | )        |   | (2,006   | )      |   | (737 | ) |
| Inventories                                                                  |   |     | 4,359   |     |   | 3,673    |   |   | (27,840 | ) |
| Other                  current assets                                        |   |     | 147     |     |   | (448     | )      |   | 254 |   |
| Other                  assets                                                |   |     | (1,312  | )        |   | 59       |   |   | 101 |   |
| Trade                  payables                                              |   |     | (4,584  | )        |   | 4,940    |   |   | 1,667 |   |
| Other                  accrued liabilities                                   |   |     | 4,613   |     |   | (1,054   | )      |   | 268 |   |
| Other                  liabilities                                           |   |     | (745    | )        |   | (435     | )      |   | (1,079 | ) |
| Total                  adjustments                                           |   |     | 4,360   |     |   | 9,137    |   |   | (23,589 | ) |
| Net                  cash provided by (used in) operating activities         |   |     | 34,919  |     |   | 29,528   |   |   | (162 | ) |
| **Cash                  flows from investing activities**                    |   |     |    |     |   |     |   |   |   |   |
| Additions                  to property and equipment                         |   |     | (9,500  | )        |   | (5,258   | )      |   | (2,373 | ) |
| Proceeds                  from the sale of property and equipment            |   |     | 50      |     |   | 33       |   |   | - |   |
| Net                  cash used in investing activities                       |   |     | (9,450  | )        |   | (5,225   | )      |   | (2,373 | ) |
| **Cash                  flows from financing activities**                    |   |     |    |     |   |     |   |   |   |   |
| Net                  borrowings                                              |   |     | 4,800   |     |   | (400     | )      |   | 19,600 |   |
| Dividends                  paid to shareholders                              |   |     | (30,008 | )        |   | (23,903  | )      |   | (19,360 | ) |
| Net                  cash (used in) provided by financing activities         |   |     | (25,208 | )        |   | (24,303  | )      |   | 240 |   |
| Net                  increase (decrease) in cash                             |   |     | 261     |     |   | -        |   |   | (2,295 | ) |
| **Cash**                                                                     |   |     |    |     |   |     |   |   |   |   |
| Beginning                  of year                                           |   |     | 3       |     |   | 3        |   |   | 2,298 |   |
| End                  of year                                                 |   | $        | 264     |     | $      | 3        |   | $ | 3 |   |
| **Supplemental                  disclosures of cash flow**                   |   |     |    |     |   |     |   |   |   |   |
| Cash                  paid during the year for                               |   |     |    |     |   |     |   |   |   |   |
| Interest                                                                     |   | $        | 1,114   |     | $      | 382      |   | $ | 185 |   |
| Income                  taxes, net of refunds                                |   | $        | 21,400  |     | $      | 13,823   |   | $ | 17,031 |   |

*The      accompanying notes are an integral part of these financial      statements.*

*Table            of Contents*

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**TAMCO      NOTES TO FINANCIAL STATEMENTS**

| **1.  ** | **Summary                of Significant Accounting                Policies** |
|--------------------|------------------------------------------------------------------------------|

**Organization      and Business**

**Fiscal      Year-End**

**Use      of Estimates**

**Revenue      Recognition**

**Shipping      and Handling Costs**

**Other      Expenses (Income)**

**Income      Taxes**

**Inventories**

|                                      |   | **2006** |   | **2005** |   |
|-------------------------------------------|--------|----------|--------|----------|--------|
| Rebar                                     |   | $        | 26,356 |     | $      | 19,633 |   |
| Billets                                   |   |     | 9,432  |     |   | 15,764 |   |
| Scrap                  metal              |   |     | 1,990  |     |   | 8,962 |   |
| Supplies                  and spare parts |   |     | 9,054  |     |   | 6,832 |   |
| Total                                     |   | $        | 46,832 |     | $      | 51,191 |   |

**Property,      Plant and Equipment**

| Processing                facilities | 20                to 25 years |
|--------------------------------------|-------------------------------|
| Equipment                            | 3                to 25 years  |

**Other      Long-Term Liabilities**

**Dividends**

| **Date                declared** |   | **(per                share)** |   |
|----------------------------------|--------|--------------------------------|--------|
| February                24, 2006 |   | $                              | 2.50   |   |
| May                16, 2006      |   | $                              | 36.50  |   |
| August                16, 2006   |   | $                              | 27.25  |   |
| November                13, 2006 |   | $                              | 70.15  |   |

**Recent      Accounting Pronouncements**

*Accounting      for Uncertainty in Income Taxes*
*Accounting      for Income Taxes*

*Fair      Value Measurements*

*Employer's      Accounting for Defined Benefit Pension and Other Postretirement      Plans*

*Table            of Contents*

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**Concentration      of Credit Risk and Major Costumers**

**Reclassifications**

| **2.  ** | **Related                Party Transactions** |
|--------------------|-----------------------------------------------|

| **3.  ** | **Business                Loan Agreement** |
|--------------------|--------------------------------------------|

| **4.  ** | **Pension                and 401(k) Retirement                Plans** |
|--------------------|-----------------------------------------------------------------------|

|                                        |   | **2006**     |   | **2005**   |   | **2004**     |   |
|---------------------------------------------|--------|--------------|--------|------------|--------|--------------|--------|
|                                        |   | **Salaried** |   | **Hourly** |   | **Salaried** |   | **Hourly** |   | **Salaried** |   | **Hourly** |   |
| Discount                  rates             |   |         | 6.13   | %          |   | 6.13         | %      |   | 5.50 | % |   | 5.50 | % |   | 5.75 | % |   | 5.75 | % |
| Rates                  of increase in       |   |         |   |       |   |         |   |   |   |   |   |   |   |   |   |   |   |   |   |
| compensation                  levels        |   |         | 3.75   | %          |   | N/A          |   |   | 3.75 | % |   | N/A |   |   | 4.00 | % |   | N/A |   |
| Expected                  long-term rate of |   |         |   |       |   |         |   |   |   |   |   |   |   |   |   |   |   |   |   |
| return                  on plan assets      |   |         | 8.50   | %          |   | 8.50         | %      |   | 8.50 | % |   | 8.50 | % |   | 9.00 | % |   | 9.00 | % |

*Table            of Contents*

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|                                                         |   |  **2006** |   |  **2005** |   |  **2004** |   |
|--------------------------------------------------------------|--------|----------------|--------|----------------|--------|----------------|--------|
|                                                         |   | **Salaried**   |   | **Hourly**     |   | **Salaried**   |   | **Hourly** |   | **Salaried** |   | **Hourly** |   |
| Components                    of net periodic pension cost:  |   |           |   |           |   |           |   |   |   |   |   |   |   |
| Service                    cost                              |   | $              | 436    |           | $      | 533            |   | $ | 380 |   | $ | 567 |   | $ | 340 |   | $ | 439 |   |
| Interest                    cost                             |   |           | 774    |           |   | 827            |   |   | 699 |   |   | 757 |   |   | 665 |   |   | 746 |   |
| Expected                    return on market-related         |   |           |   |           |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |
| value                    of plan assets                      |   |           | (893   | )              |   | (1,080         | )      |   | (763 | ) |   | (890 | ) |   | (660 | ) |   | (745 | ) |
| Amortization                    of unrecognized              |   |           |   |           |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |
| prior                    service cost                        |   |           | -      |           |   | 3              |   |   | - |   |   | 59 |   |   | (1 | ) |   | 64 |   |
| Amortization                    of unrecognized              |   |           |   |           |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |
| transition                    obligation                     |   |           | -      |           |   | -              |   |   | - |   |   | - |   |   | - |   |   | - |   |
| Amortization                    of accumulated losses        |   |           | 232    |           |   | 186            |   |   | 185 |   |   | 193 |   |   | 81 |   |   | 122 |   |
| Net                    periodic pension cost                 |   | $              | 549    |           | $      | 469            |   | $ | 501 |   | $ | 686 |   | $ | 425 |   | $ | 626 |   |
| Changes                    in projected benefit obligation:  |   |           |   |           |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Projected                    benefit obligation,             |   |           |   |           |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |
| beginning                    of year                         |   | $              | 14,305 |           | $      | 15,316         |   | $ | 12,358 |   | $ | 13,398 |   | $ | 11,178 |   | $ | 11,878 |   |
| Service                    cost                              |   |           | 436    |           |   | 533            |   |   | 380 |   |   | 567 |   |   | 340 |   |   | 439 |   |
| Interest                    cost                             |   |           | 774    |           |   | 827            |   |   | 699 |   |   | 757 |   |   | 665 |   |   | 746 |   |
| Plan                    amendments                           |   |           | -      |           |   | 26             |   |   | - |   |   | - |   |   | - |   |   | - |   |
| Actuarial                    (gain) loss                     |   |           | (660   | )              |   | (1,037         | )      |   | 1,203 |   |   | 991 |   |   | 514 |   |   | 788 |   |
| Benefits                    paid                             |   |           | (492   | )              |   | (647           | )      |   | (335 | ) |   | (397 | ) |   | (339 | ) |   | (453 | ) |
| Projected                    benefit obligation, end of year |   | $              | 14,363 |           | $      | 15,018         |   | $ | 14,305 |   | $ | 15,316 |   | $ | 12,358 |   | $ | 13,398 |   |

|                                                          |   | **2006**     |   | **2005**   |   | **2004**     |   |
|---------------------------------------------------------------|--------|--------------|--------|------------|--------|--------------|--------|
|                                                          |   | **Salaried** |   | **Hourly** |   | **Salaried** |   | **Hourly** |   | **Salaried** |   | **Hourly** |   |
| Changes                  in plan assets:                      |   |         |   |       |   |         |   |   |   |   |   |   |   |
| Fair                  value of plan assets, beginning of year |   | $            | 10,747 |       | $      | 12,984       |   | $ | 9,186 |   | $ | 10,711 |   | $ | 7,463 |   | $ | 8,403 |   |
| Actual                  return on plan assets                 |   |         | 781    |       |   | 929          |   |   | 1,227 |   |   | 1,451 |   |   | 795 |   |   | 930 |   |
| Employer                  contribution                        |   |         | 811    |       |   | 355          |   |   | 727 |   |   | 1,283 |   |   | 1,337 |   |   | 1,908 |   |
| Administrative                  expenses                      |   |         | (66    | )          |   | (88          | )      |   | (58 | ) |   | (64 | ) |   | (70 | ) |   | (77 | ) |
| Benefits                  paid                                |   |         | (492   | )          |   | (647         | )      |   | (335 | ) |   | (397 | ) |   | (339 | ) |   | (453 | ) |
| Fair                  value of plan assets, end of year       |   | $            | 11,781 |       | $      | 13,533       |   | $ | 10,747 |   | $ | 12,984 |   | $ | 9,186 |   | $ | 10,711 |   |
| Funded                  status:                               |   |         |   |       |   |         |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Deficiency                  of plan assets over projected     |   |         |   |       |   |         |   |   |   |   |   |   |   |   |   |   |   |   |   |
| benefit                  obligations                          |   | $            | (2,583 | )          | $      | (1,484       | )      | $ | (3,558 | ) | $ | (2,331 | ) | $ | (3,173 | ) | $ | (2,688 | ) |
| Unrecognized                  actuarial loss                  |   |         | 2,808  |       |   | 2,589        |   |   | 3,521 |   |   | 3,572 |   |   | 2,909 |   |   | 3,272 |   |
| Unrecognized                  prior benefit service cost      |   |         | -      |       |   | 38           |   |   | - |   |   | 16 |   |   | - |   |   | 75 |   |
| Funded                  status, end of year                   |   | $            | 225    |       | $      | 1,143        |   | $ | (37 | ) | $ | 1,257 |   | $ | (264 | ) | $ | 659 |   |
| Amounts                  recognized on the balance            |   |         |   |       |   |         |   |   |   |   |   |   |   |   |   |   |   |   |   |
| sheet                  consist of:                            |   |         |   |       |   |         |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Prepaid                  benefit cost                         |   | $            | -      |       | $      | -            |   | $ | - |   | $ | - |   | $ | - |   | $ | - |   |
| Accrued                  benefit liability                    |   |         | (1,149 | )          |   | (1,430       | )      |   | (1,885 | ) |   | (2,331 | ) |   | (1,297 | ) |   | (2,688 | ) |
| Intangible                  asset                             |   |         | -      |       |   | 38           |   |   | - |   |   | 16 |   |   | - |   |   | 75 |   |
| Accumulated                  other comprehensive loss         |   |         | 1,374  |       |   | 2,535        |   |   | 1,848 |   |   | 3,572 |   |   | 1,033 |   |   | 3,272 |   |
| Net                  amount recognized                        |   | $            | 225    |       | $      | 1,143        |   | $ | (37 | ) | $ | 1,257 |   | $ | (264 | ) | $ | 659 |   |

*Table            of Contents*

----

|                                      |   |   |   |   |   |   | **2006**     |   | **2005**   |   | **2004**     |
|-------------------------------------------|--------|--------|--------|--------|--------|--------|--------------|--------|------------|--------|--------------|
|                                      |   |   |   |   |   |   | **Salaried** |   | **Hourly** |   | **Salaried** |   | **Hourly** |   | **Salaried** |   | **Hourly** |
| Equity                  securities        | 72%    |   | 72%    |   | 70%    |   | 69%          |   | 65%        |   | 65%          |
| Debt                  securities          | 24%    |   | 24%    |   | 24%    |   | 25%          |   | 27%        |   | 27%          |
| Real                  estate              |   | 4%     |   | 4%     |   | 6%     |         | 6%     |       | 5%     |         | 5% |
| Other                  (cash equivalents) | 0%     |   | 0%     |   | 0%     |   | 0%           |   | 3%         |   | 3%           |
|                                      |   | Total  |   |   | 100%   |   | 100%         |   | 100%       |   | 100%         |   | 100% |   | 100% |

| *(in                thousands)* |   | **Salaried** |   | **Hourly** |   |
|---------------------------------|--------|--------------|--------|------------|--------|
| **Year                ending**  |   |         |   |       |   |
| 2007                            |   | $            | 650    |       | $      | 690 |   |
| 2008                            |   |         | 710    |       |   | 750 |   |
| 2009                            |   |         | 810    |       |   | 820 |   |
| 2010                            |   |         | 890    |       |   | 890 |   |
| 2011                            |   |         | 940    |       |   | 950 |   |
| Thereafter                      |   |         | 5,710  |       |   | 5,550 |   |

| **5.  ** | **Derivative                Activity** |
|--------------------|----------------------------------------|

**Natural      Gas Swap**

*Accounting      for Derivative Instruments and Hedging Activities*
*Accounting      for Certain Derivative Instruments and Certain Hedging      Activities*

| **6.  ** | **Income                Taxes** |
|--------------------|---------------------------------|

|                          |   | **2006** |   | **2005** |   | **2004** |   |
|-------------------------------|--------|----------|--------|----------|--------|----------|--------|
| Current                       |   |     |   |     |   |     |   |
| Federal                       |   | $        | 16,879 |     | $      | 11,160   |   | $ | 13,669 |   |
| State                         |   |     | 4,647  |     |   | 3,095    |   |   | 3,470 |   |
| Total                current  |   |     | 21,526 |     |   | 14,255   |   |   | 17,139 |   |
| Deferred                      |   |     |   |     |   |     |   |   |   |   |
| Federal                       |   |     | (499   | )        |   | (167     | )      |   | (1,043 | ) |
| State                         |   |     | 509    |     |   | (40      | )      |   | 39 |   |
| Total                deferred |   |     | 10     |     |   | (207     | )      |   | (1,004 | ) |
| Total                         |   | $        | 21,536 |     | $      | 14,048   |   | $ | 16,135 |   |

*Table            of Contents*

----

|                                                      |   | **2006** |   | **2005** |   |
|-----------------------------------------------------------|--------|----------|--------|----------|--------|
| Provision                at the federal statutory rate    |   |     | 35.00  | %        |   | 35.00 | % |
| State                income taxes, net of federal benefit |   |     | 6.43   | %        |   | 5.76 | % |
| Meals                and entertainment                    |   |     | 0.15   | %        |   | 0.06 | % |
| Fuel                Tax Credit                            |   |     | (0.11  | )%       |   | (0.11 | )% |
| Lobbyist                Expense                           |   |     | 0.07   | %        |   | 0.04 | % |
| Other                                                     |   |     | (0.20  | )%       |   | 0.04 | % |
|                                                      |   |     | 41.34  | %        |   | 40.79 | % |

|                                        |   | **2006** |   | **2005** |   |
|---------------------------------------------|--------|----------|--------|----------|--------|
| **Deferred                tax asset**       |   |     |   |     |   |
| Reserve                for contingencies    |   | $        | 619    |     | $      | 438 |   |
| Accrued                liabilities          |   |     | 1,355  |     |   | 1,590 |   |
| Reserve                for inventories      |   |     | 360    |     |   | 243 |   |
| State                taxes                  |   |     | 1,741  |     |   | 973 |   |
| Additional                pension liability |   |     | 1,713  |     |   | 2,376 |   |
| Other                                       |   |     | 35     |     |   | 73 |   |
| Deferred                tax asset           |   |     | 5,823  |     |   | 5,693 |   |
| **Deferred                tax liability**   |   |     |   |     |   |   |   |
| Depreciation                                |   |     | (5,020 | )        |   | (4,342 | ) |
| Pension                reserve              |   |     | (599   | )        |   | (518 | ) |
| Other                                       |   |     | -      |     |   | (2 | ) |
| Deferred                tax liability       |   |     | (5,619 | )        |   | (4,862 | ) |
|                                        |   | $        | 204    |     | $      | 831 |   |

| **7.  ** | **Commitments                and Contingences** |
|--------------------|-------------------------------------------------|