----

----

**United      States**

**SECURITIES      AND EXCHANGE COMMISSION**

**Washington,      D.C. 20549**

**FORM      10-K**

**x**
**      ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE      SECURITIES**

**EXCHANGE      ACT OF 1934**

**For      the fiscal year ended November 30, 2006**

**OR**

** **
**¨**
**      TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES      EXCHANGE ACT OF 1934**

**Commission      file number 1-9102**

**AMERON      INTERNATIONAL CORPORATION**

| **Delaware**                            | **77-0100596**                                      |
|-----------------------------------------|-----------------------------------------------------|
| (State                of Incorporation) | (I.R.S.                Employer Identification No.) |

**245      South Los Robles Avenue**

**Pasadena,      CA 91101-3638**

**Registrant's      telephone number, including area code: (626) 683-4000**

**SECURITIES      REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT:**

| **Title                of each class**      |   | **Name                of each exchange on which registered** |
|---------------------------------------------|--------|--------------------------------------------------------------|
| Common                Stock $2.50 par value |   | New                York Stock Exchange                       |

**SECURITIES      REGISTERED PURSUANT TO SECTION 12(g) OF THE ACT: None**

**¨**

**¨**

**¨**

| Large                accelerated filer **¨** | Accelerated                filer x | Non-accelerated                filer **¨** |
|---------------------------------------------------|------------------------------------|-------------------------------------------------|

**¨**

----

----

**DOCUMENTS      INCORPORATED BY REFERENCE**

----

**AMERONINTERNATIONAL      CORPORATION AND      SUBSIDIARIES**

**2006      ANNUAL REPORT ON FORM 10-K**

**Table      of Contents**

PART      I

ITEM      1 - BUSINESS

ITEM      1A - RISK FACTORS

ITEM      1B - UNRESOLVED STAFF COMMENTS

ITEM      2 - PROPERTIES

ITEM      3 - LEGAL PROCEEDINGS

ITEM      4 - SUBMISSION OF MATTERS TO A VOTE OF SECURITY      HOLDERS

PART      II

ITEM      5 - MARKET FOR REGISTRANT'S COMMON EQUITY AND RELATED      STOCKHOLDER MATTERS

ITEM      6 - SELECTED FINANCIAL DATA

ITEM      7 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL      CONDITION AND RESULTS OF OPERATIONS

ITEM      7A - QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET      RISK

ITEM      8 - FINANCIAL STATEMENTS AND SUPPLEMENTARY      DATA

ITEM      9 - CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON      ACCOUNTING AND FINANCIAL DISCLOSURE

ITEM      9A - CONTROLS AND PROCEDURES

ITEM      9B - OTHER INFORMATION

PART      III

ITEM      10 - DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE      GOVERNANCE

ITEM      11 - EXECUTIVE COMPENSATION

ITEM      12 - SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND      MANAGEMENT AND RELATED STOCKHOLDER MATTERS

ITEM      13 - CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND      DIRECTOR INDEPENDENCE

ITEM      14 - PRINCIPAL ACCOUNTING FEES AND SERVICES

PART      IV

ITEM      15 - EXHIBITS, FINANCIAL STATEMENT      SCHEDULES

----

**PART      I**

**AMERON      INTERNATIONAL CORPORATION**

**ITEM      1 - BUSINESS**

*Table            of Contents*

----

| **SEGMENT**                                    |   | **2006**                          |        | **2005** |   |
|------------------------------------------------|--------|-----------------------------------|-------------|----------|--------|
|                                           |   | **(in                thousands)** |        |
| Water                Transmission Group        |   | **$**                             | **183,802** |     | $      | 129,321 |   |
| Fiberglass-Composite                Pipe Group |   |                              | **51,310**  |     |   | 43,240 |   |
| Infrastructure                Products Group   |   |                              | **34,866**  |     |   | 30,222 |   |
|                                           |   |                              |        |     |   |   |   |
| Total                                          |   | **$**                             | **269,978** |     | $      | 202,783 |   |

*Table            of Contents*

----

|   |   | **In                thousands** |   |
|--------|--------|---------------------------------|--------|
| 2006   |   | $                               | 27,811 |   |
| 2005   |   |                            | 22,858 |   |
| 2004   |   |                            | 20,824 |   |

*Table            of Contents*

----

**ITEM1A      - RISK FACTORS**

**The      primary markets for the Company's products are cyclical and dependent on factors      that may not necessarily correspond to general economic      cycles**

**The      availability and price of key raw materials can fluctuate      dramatically**

**Labor      disruptions or labor shortages could materially impact the Company’s      operations**

**Claims      associated with the Company's performance can be relatively      large**

**TAMCO's      profitability could be significantly reduced by a sharp increase in costs and/or      a significant increase in foreign imports of rebar into TAMCO's markets in      the      western U.S**

**A      significant part of the Company's assets and profits are located or generated      outside the U.S., with an associated foreign exchange and country      risk**

**The      returns from the Company's new investment in wind-tower capabilities are      dependent on future demand which could be impacted by changes in government      policy, energy prices or tax credits**

**The      Company's quarterly results are subject to significant      fluctuation**

*Table            of Contents*

----

**Limits      on the Company's ability to control partially-owned joint ventures could      restrict the future operations of such ventures and the amount of cash available      to the Company from such joint ventures**

**The      Company’s relatively low trading volume could limit a shareholder's ability to      trade the Company's shares**
** **

**ITEM1B      - UNRESOLVED STAFF COMMENTS**

**ITEM2      - PROPERTIES**

*Table            of Contents*

----

**INDUSTRY      SEGMENT - GROUP**

| **Division                - Location**                        |   | **Description**                       |
|---------------------------------------------------------------|--------|---------------------------------------|
| FIBERGLASS-COMPOSITE                PIPE GROUP                |   |                                  |
| Fiberglass                Pipe Division - USA                 |   |                                  |
| Houston,                TX                                    |   | *Office                               |
| Burkburnett,                TX                                |   | Office,                Plant          |
| Centron                International, Inc.                    |   |                                  |
| Mineral                Wells, TX                              |   | Office,                Plant          |
| Ameron                B.V.                                    |   |                                  |
| Geldermalsen,                the Netherlands                  |   | Office,                Plant          |
| Ameron                (Pte) Ltd.                              |   |                                  |
| Singapore                                                     |   | *Office,                Plant         |
| Ameron                Malaysia Sdn. Bhd.                      |   |                                  |
| Malaysia                                                      |   | *Office,                Plant         |
|                                                          |   |                                  |
| WATER                TRANSMISSION GROUP                       |   |                                  |
| Rancho                Cucamonga, CA                           |   | *Office                               |
| Etiwanda,                CA                                   |   | Office,                Plant          |
| Fontana,                CA                                    |   | Office,                Plant          |
| Lakeside,                CA                                   |   | Office,                Plant          |
| Phoenix,                AZ                                    |   | Office,                Plant          |
| Tracy,                CA                                      |   | Office,                Plant          |
|                                                          |   |                                  |
| Protective                Linings Division                    |   |                                  |
| Brea,                CA                                       |   | Office,                Plant          |
| American                Pipe & Construction International |   |                                  |
| Bogota,                Colombia                               |   | Office,                Plant          |
| Cali,                Colombia                                 |   | Office,                Plant          |
|                                                          |   |                                  |
| INFRASTRUCTURE                PRODUCTS GROUP                  |   |                                  |
| Hawaii                Division                                |   |                                  |
| Honolulu,                Oahu, HI                             |   | *Office,                Plant         |
| Kailua,                Oahu, HI                               |   | *Plant,                Quarry         |
| Barbers                Point, Oahu, HI                        |   | Office,                Plant          |
| Puunene,                Maui, HI                              |   | *Office,                Plant, Quarry |
| Pole                Products Division                         |   |                                  |
| Ventura,                CA                                    |   | *Office                               |
| Fillmore,                CA                                   |   | Office,                Plant          |
| Oakland,                CA                                    |   | *Plant                                |
| Everett,                WA                                    |   | *Office,                Plant         |
| Tulsa,                OK                                      |   | *Office,                Plant         |
| Anniston,                AL                                   |   | *Office,                Plant         |
|                                                          |   |                                  |
| CORPORATE                                                     |   |                                  |
| Corporate                Headquarters                         |   |                                  |
| Pasadena,                CA                                   |   | *Office                               |
| Houston,                TX                                    |   | **Warehouse                           |
| Huthwaite,                UK                                  |   | **Office,                Plant        |
| Hull,                UK                                       |   | **Office,                Plant        |
| Sydney,                Australia                              |   | **Office,                Plant        |
| Adelaide,                Australia                            |   | **Plant                               |
| Melbourne,                Australia                           |   | **Warehouse                           |
|                                                          |   |                                  |
| Corporate                Research & Engineering           |   |                                  |
| Long                Beach, CA                                 |   | *Office                               |
| South                Gate, CA                                 |   | Office,                Laboratory     |

----

**ITEM3      - LEGAL PROCEEDINGS**

*Table            of Contents*

----

**ITEM4      - SUBMISSION OF MATTERS TO A VOTE OF SECURITY      HOLDERS**

| ** Name**                     |   | **Age** |   | **Title                and Year Elected as Officer**                                                   |
|------------------------------------|--------|---------|--------|--------------------------------------------------------------------------------------------------------|
| Daniel                J. Emmett    |   | 46      |   | Vice                President, Controller                                                              | 2006 |
|                               |   |    |   |                                                                                                   |   |
| Ralph                S. Friedrich  |   | 59      |   | Vice                President-Research & Engineering                                               | 2003 |
|                               |   |    |   |                                                                                                   |   |
| Thomas                P. Giese     |   | 62      |   | Vice                President; Group President, Water Transmission Group                               | 1997 |
|                               |   |    |   |                                                                                                   |   |
| James                R. McLaughlin |   | 59      |   | Senior                Vice President-Chief Financial Officer & Treasurer                           | 1997 |
|                               |   |    |   |                                                                                                   |   |
| Terrence                P. O'Shea  |   | 60      |   | Vice                President-Human Resources                                                          | 2003 |
|                               |   |    |   |                                                                                                   |   |
| Javier                Solis        |   | 60      |   | Senior                Vice President of Administration, Secretary & General                Counsel | 1984 |
|                               |   |    |   |                                                                                                   |   |
| Gary                Wagner         |   | 55      |   | Executive                Vice President & Chief Operating Officer                                  | 1990 |

**PARTII**

**ITEM5      - MARKET FOR REGISTRANT'S COMMON EQUITY AND RELATED      STOCKHOLDER MATTERS**

**ISSUER      PURCHASES OF EQUITY SECURITIES**

|                                 |   |                                 |   |                               |   | **(c)**                                 |   | **(d)**                                          |
|--------------------------------------|--------|--------------------------------------|--------|------------------------------------|--------|-----------------------------------------|--------|--------------------------------------------------|
|                                 |   |                                 |   |                               |   | **Number                of Shares**     |   | **Maximum                Number**                |
|                                 |   | **(a)**                              |   | **(b)**                            |   | **(or                Units) Purchased** |   | **(or                Approximate Dollar Value)** |
|                                 |   | **Total                Number of**   |   | **Average                Price**   |   | **As                Part of Publicly**  |   | **Of                Shares (or Units) that May** |
|                                 |   | **Shares                (or Units)** |   | **Paid                per**        |   | **Announced                Plans or**   |   | **Yet                Be Purchased Under**        |
| **Period**                           |   | **Purchased**                        |   | **Share                (or Unit)** |   | **Programs**                            |   | **The                Plans or Programs****       |
| 9/4/06                thru 10/1/06   |   | -                                    |   | N/A                                |   | -                                       |   | 40,924                                           |
| 10/2/06                thru 11/5/06  |   | -                                    |   | N/A                                |   | -                                       |   | 40,924                                           |
| 11/6/06                thru 11/30/06 |   | -                                    |   | N/A                                |   | -                                       |   | 40,924                                           |

*Table            of Contents*

----

**ITEM6      - SELECTED FINANCIAL DATA**

**SELECTED      CONSOLIDATED FINANCIAL INFORMATION**

|                                                               |   | **Year                  ended November 30,** |          |
|--------------------------------------------------------------------|--------|----------------------------------------------|---------------|
| **(Dollars                  in thousands, except per share data)** |   | **2006**                                     |          | **2005** |   | **2004** |   | **2003** |   | **2002** |   |
|                                                               |   |                                         |          |   |   |   |   |   |   |   |   |
| **PER                  COMMON SHARE DATA (1)**                     |   |                                         |          |   |   |   |   |   |   |   |   |
| Basic                  earnings per share:                         |   |                                         |          |   |   |   |   |   |   |   |   |
| Income                  from continuing operations                 |   | **$**                                        | **5.73**      |   | $ | 3.51 |   | $ | 1.35 |   | $ | 3.00 |   | $ | 3.00 |   |
| Income                  from discontinued operations, net of taxes |   |                                         | **.25**       |   |   | .37 |   |   | .28 |   |   | .77 |   |   | .61 |   |
| Net                  income                                        |   |                                         | **5.98**      |   |   | 3.88 |   |   | 1.63 |   |   | 3.77 |   |   | 3.61 |   |
| Diluted                  earnings per share:                       |   |                                         |          |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income                  from continuing operations                 |   |                                         | **5.64**      |   |   | 3.44 |   |   | 1.32 |   |   | 2.92 |   |   | 2.90 |   |
| Income                  from discontinued operations, net of taxes |   |                                         | **.24**       |   |   | .36 |   |   | .27 |   |   | .75 |   |   | .59 |   |
| Net                  income                                        |   |                                         | **5.88**      |   |   | 3.80 |   |   | 1.59 |   |   | 3.67 |   |   | 3.49 |   |
|                                                               |   |                                         |          |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted-average                  shares (basic)                   |   |                                         | **8,731,839** |   |   | 8,410,563 |   |   | 8,270,487 |   |   | 7,925,229 |   |   | 7,772,032 |   |
| Weighted-average                  shares (diluted)                 |   |                                         | **8,871,695** |   |   | 8,579,194 |   |   | 8,448,987 |   |   | 8,149,460 |   |   | 8,052,164 |   |
| Dividends                                                          |   |                                         | **.80**       |   |   | .80 |   |   | .80 |   |   | .76 |   |   | .64 |   |
| Stock                  price - high                                |   |                                         | **80.01**     |   |   | 46.61 |   |   | 40.05 |   |   | 35.53 |   |   | 38.74 |   |
| Stock                  price - low                                 |   |                                         | **44.66**     |   |   | 31.76 |   |   | 28.60 |   |   | 24.89 |   |   | 22.26 |   |
| Price/earnings                  ratio (range)                      |   |                                         | **14-8**      |   |   | 12-8 |   |   | 25-18 |   |   | 10-7 |   |   | 11-6 |   |
| **OPERATING                  RESULTS**                             |   |                                         |          |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Sales                                                              |   | **$**                                        | **549,180**   |   | $ | 494,767 |   | $ | 406,230 |   | $ | 410,215 |   | $ | 356,162 |   |
| Gross                  profit                                      |   |                                         | **132,389**   |   |   | 125,210 |   |   | 92,209 |   |   | 110,221 |   |   | 88,397 |   |
| Interest                  expense, net                             |   |                                         | **(1,682**    | **)** |   | (5,520 | ) |   | (5,522 | ) |   | (6,755 | ) |   | (6,855 | ) |
| Provision                  for income taxes                        |   |                                         | **(10,905**   | **)** |   | (11,040 | ) |   | (4,789 | ) |   | (9,474 | ) |   | (11,244 | ) |
| Equity                  in earnings of joint venture, net of taxes |   |                                         | **13,550**    |   |   | 9,005 |   |   | 10,791 |   |   | 614 |   |   | 3,309 |   |
| Income                  from continuing operations                 |   |                                         | **50,060**    |   |   | 29,509 |   |   | 11,151 |   |   | 23,808 |   |   | 23,297 |   |
| Income                  from discontinued operations, net of taxes |   |                                         | **2,140**     |   |   | 3,101 |   |   | 2,308 |   |   | 6,092 |   |   | 4,760 |   |
| Net                  income                                        |   |                                         | **52,200**    |   |   | 32,610 |   |   | 13,459 |   |   | 29,900 |   |   | 28,059 |   |
| Net                  income/sales                                  |   |                                         | **9.5**       | **%** |   | 6.6 | % |   | 3.3 | % |   | 7.3 | % |   | 7.9 | % |
| Return                  on equity                                  |   |                                         | **15.8**      | **%** |   | 11.3 | % |   | 5.0 | % |   | 12.8 | % |   | 13.5 | % |
| **FINANCIAL                  CONDITION AT YEAR-END (2)**           |   |                                         |          |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Working                  capital                                   |   | **$**                                        | **280,467**   |   | $ | 216,126 |   | $ | 180,813 |   | $ | 177,009 |   | $ | 149,205 |   |
| Property,                  plant and equipment, net                |   |                                         | **134,470**   |   |   | 154,665 |   |   | 153,651 |   |   | 150,586 |   |   | 145,242 |   |
| Investments                  in joint ventures                     |   |                                         |          |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Equity                  method                                     |   |                                         | **14,501**    |   |   | 13,777 |   |   | 16,042 |   |   | 13,064 |   |   | 12,940 |   |
| Cost                  method                                       |   |                                         | **3,784**     |   |   | 5,922 |   |   | 5,922 |   |   | 5,479 |   |   | 5,987 |   |
| Total                  assets                                      |   |                                         | **634,664**   |   |   | 578,036 |   |   | 543,937 |   |   | 533,492 |   |   | 462,942 |   |
| Long-term                  debt, less current portion              |   |                                         | **72,525**    |   |   | 77,109 |   |   | 75,349 |   |   | 86,044 |   |   | 102,823 |   |
| **CASH                  FLOW (2)**                                 |   |                                         |          |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Expenditures                  for property, plant and equipment    |   | **$**                                        | **35,519**    |   | $ | 25,371 |   | $ | 18,312 |   | $ | 17,107 |   | $ | 14,514 |   |
| Depreciation                  and amortization                     |   |                                         | **17,440**    |   |   | 18,924 |   |   | 18,897 |   |   | 18,371 |   |   | 18,572 |   |

*(1)      Share and per share data reflect a two-for-one stock split declared in      2003.*

*(2)      Amounts include both continuing and discontinued operations.*

*Table            of Contents*

----

**ITEM7      - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL      CONDITION AND RESULTS OF OPERATIONS**

**CRITICAL      ACCOUNTING POLICIES AND ESTIMATES**

*Table            of Contents*

----

*Employers'      Accounting for Pensions*
*Employers      ‘ Accounting for Postretirement Benefits Other Than Pensions*

*Table            of Contents*

----

|                                                   |   | **1%                Increase** |   | **1%                Decrease** |   |
|--------------------------------------------------------|--------|--------------------------------|--------|--------------------------------|--------|
|                                                   |   | **Increase/**                  |   | **Increase/**                  |   | **Increase/** |   | **Increase/** |   |
|                                                   |   | **(Decrease)**                 |   | **(Decrease)**                 |   | **(Decrease)** |   | **(Decrease)** |   |
|                                                   |   | **in                Benefit**  |   | **in                Benefit**  |   | **in                Benefit** |   | **in                Benefit** |   |
|                                                   |   | **Obligations**                |   | **Costs**                      |   | **Obligations** |   | **Costs** |   |
| Discount                Rate:                          |   |                           |   |                           |   |   |   |   |   |
| Pensions                                               |   | $                              | (7,635 | )                              | $      | (1,404 | ) | $ | 9,359 |   | $ | 1,971 |   |
| Other                postretirement benefits           |   |                           | (316   | )                              |   | (21 | ) |   | 373 |   |   | 20 |   |
| Expected                rate of return on assets       |   |                           | N/A    |                           |   | (498 | ) |   | N/A |   |   | 498 |   |
| Rate                of increase in compensation levels |   |                           | 344    |                           |   | 934 |   |   | (323 | ) |   | (820 | ) |
| Rate                of increase in health care costs   |   |                           | 173    |                           |   | 19 |   |   | (147 | ) |   | (17 | ) |

**LIQUIDITY      AND CAPITAL RESOURCES**

*Statement      of Cash Flows*

*Table            of Contents*

----

*Table            of Contents*

----

|                                             |   | **Payments                Due by Period** |    |
|--------------------------------------------------|--------|-------------------------------------------|---------|
|                                             |   |                                      |    | **Less                than** |   |   |   |   |   | **After                5** |   |
| **Contractual                Obligations**       |   | **Total**                                 |    | **1                year** |   | **1-3                years** |   | **3-5                years** |   | **years** |   |
| Long-Term                Debt (a)                |   | $                                         | 82,525  |   | $ | 10,000 |   | $ | 33,268 |   | $ | 16,920 |   | $ | 22,337 |   |
|                                             |   |                                      |         |   |   |  |   |   |  |   |   |  |   |   |  |   |
| Interest                Payments on Debt         |   |                                      | 16,119  |   |   | 3,720 |   |   | 5,350 |   |   | 2,616 |   |   | 4,433 |   |
|                                             |   |                                      |         |   |   |  |   |   |  |   |   |  |   |   |  |   |
| Operating                Leases                  |   |                                      | 32,517  |   |   | 3,682 |   |   | 6,942 |   |   | 5,067 |   |   | 16,826 |   |
|                                             |   |                                      |         |   |   |  |   |   |  |   |   |  |   |   |  |   |
| Purchase                Obligations (b)          |   |                                      | 6,403   |   |   | 6,403 |   |   | - |   |   | - |   |   | - |   |
|                                             |   |                                      |         |   |   |  |   |   |  |   |   |  |   |   |  |   |
| Total                Contractual Obligations (c) |   | $                                         | 137,564 |   | $ | 23,805 |   | $ | 45,560 |   | $ | 24,603 |   | $ | 43,596 |   |

|                                            |   | **Commitments                Expiring Per Period** |   |
|-------------------------------------------------|--------|----------------------------------------------------|--------|
|                                            |   |                                               |   | **Less                than** |   |   |   |   |   | **After** |   |
| **Contractual                Commitments**      |   | **Total**                                          |   | **1                year** |   | **1-3                years** |   | **3-5                years** |   | **5                years** |   |
| Standby                Letters of Credit (d)    |   | $                                                  | 2,018  |   | $ | 2,018 |   | $ | - |   | $ | - |   | $ | - |   |
|                                            |   |                                               |        |   |   |  |   |   |  |   |   |  |   |   |  |   |
| Total                Commercial Commitments (c) |   | $                                                  | 2,018  |   | $ | 2,018 |   | $ | - |   | $ | - |   | $ | - |   |

**RESULTS      OF OPERATIONS: 2006 COMPARED WITH 2005**

***General***

*Table            of Contents*

----

***Sales***

***Gross      Profit***

***Selling,      General and Administrative Expenses***
* *

*Table            of Contents*

----

***Other      Income, Net***

***Interest***

***Provision      for Income Taxes***

***Equity      in Earnings of Joint Venture, Net of Taxes***

***Income      from Discontinued Operations, Net of Taxes***

**RESULTS      OF OPERATIONS: 2005 COMPARED WITH 2004**

***General***

*Table            of Contents*

----

***Sales***

***Gross      Profit***

*Table            of Contents*

----

***Selling,      General and Administrative Expenses***
* *

***Pension      Plan Curtailment/Settlement***

***Other      Income, Net***

***Interest***

***Provision      for Income Taxes***

***Equity      in Earnings of Joint Venture, Net of Taxes***

***Income      from Discontinued Operations, Net of Taxes***

**OFF-BALANCE      SHEET FINANCING**

*Table            of Contents*

----

**CONTINGENCIES**

*Table            of Contents*

----

**NEW      ACCOUNTING PRONOUNCEMENTS**

**CAUTIONARY      STATEMENT FOR PURPOSES OF THE "SAFE HARBOR" PROVISIONS OF THE PRIVATE SECURITIES      LITIGATION REFORM ACT OF 1995**

*Table            of Contents*

----

**ITEM7A      - QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET      RISK**

***Foreign      Currency Risk***

***Debt      Risk***

|                                                                                                          |   |                                        |   | **Total                  Outstanding**            |   |
|---------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------|--------|---------------------------------------------------|--------|
|                                                                                                          |   |                                        |   | **As                  of November 30, 2006** |   |
|                                                                                                          |   | **Expected                  Maturity Date** |   | **Recorded**                                      |   | **Fair** |   |
| ** (Dollars                  in thousands)**                                                             |   | **2007**                                    |   | **2008**                                          |   | **2009** |   | **2010** |   | **2011** |   | **Thereafter** |   | **Value** |   | **Value** |   |
| Liabilities                                                                                                   |   |                                        |   |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Long-Term                  Debt:                                                                              |   |                                        |   |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fixed-rate                  secured notes, payable in US$                                                     |   | $                                           | 10,000 |                                              | $      | 10,000 |   | $ | 10,000 |   | $ | - |   | $ | - |   | $ | - |   | $ | 30,000 |   | $ | 29,983 |   |
| Average                  interest rate                                                                        |   |                                        | 5.36   | %                                                 |   | 5.36 | % |   | 5.36 | % |   | - |   |   | - |   |   | - |   |   | 5.36 | % |   |  |   |
|                                                                                                          |   |                                        |        |                                              |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |
| Fixed-rate                  secured notes, payable in Singapore dollars                                       |   |                                        | -      |                                              |   | 6,634 |   |   | 6,634 |   |   | 6,634 |   |   | 6,634 |   |   | 6,637 |   |   | 33,173 |   |   | 33,414 |   |
| Average                  interest rate                                                                        |   |                                        | -      |                                              |   | 4.25 | % |   | 4.25 | % |   | 4.25 | % |   | 4.25 | % |   | 4.25 | % |   | 4.25 | % |   |  |   |
|                                                                                                          |   |                                        |        |                                              |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |
| Variable-rate                  bank revolving credit facilities, payable in local                  currencies |   |                                        | -      |                                              |   | - |   |   | - |   |   | 3,652 |   |   | - |   |   | - |   |   | 3,652 |   |   | 3,652 |   |
| Average                  interest rate                                                                        |   |                                        | -      |                                              |   | - |   |   | - |   |   | 6.34 | % |   | - |   |   | - |   |   | 6.34 | % |   |  |   |
|                                                                                                          |   |                                        |        |                                              |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |
| Variable-rate                  industrial development bonds, payable in US$                                   |   |                                        | -      |                                              |   | - |   |   | - |   |   | - |   |   | - |   |   | 7,200 |   |   | 7,200 |   |   | 7,200 |   |
| Average                  interest rate                                                                        |   |                                        | -      |                                              |   | - |   |   | - |   |   | - |   |   | - |   |   | 3.85 | % |   | 3.85 | % |   |  |   |
|                                                                                                          |   |                                        |        |                                              |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |
| Variable-rate                  industrial development bonds, payable in US$                                   |   |                                        | -      |                                              |   | - |   |   | - |   |   | - |   |   | - |   |   | 8,500 |   |   | 8,500 |   |   | 8,500 |   |
| Average                  interest rate                                                                        |   |                                        | -      |                                              |   | - |   |   | - |   |   | - |   |   | - |   |   | 3.85 | % |   | 3.85 | % |   |  |   |

*Table            of Contents*

----

**ITEM8      - FINANCIAL STATEMENTS AND SUPPLEMENTARY      DATA**

**CONSOLIDATED      STATEMENTS OF INCOME**

|                                                                                                                                                 |   | **Year                ended November 30,** |          |
|------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------|---------------|
|                                                                                                                                                 |   |                                       |          |   |   |   |   |
| **(Dollars                in thousands, except per share data)**                                                                                     |   | **2006**                                   |          | **2005** |   | **2004** |   |
| Sales                                                                                                                                                |   | **$**                                      | **549,180**   |   | $ | 494,767 |   | $ | 406,230 |   |
| Cost                of sales                                                                                                                         |   |                                       | **(416,791**  | **)** |   | (369,557 | ) |   | (314,021 | ) |
| Gross                profit                                                                                                                          |   |                                       | **132,389**   |   |   | 125,210 |   |   | 92,209 |   |
|                                                                                                                                                 |   |                                       |          |   |   |   |   |   |   |   |
| Selling,                general and administrative expenses                                                                                          |   |                                       | **(94,689**   | **)** |   | (90,283 | ) |   | (83,553 | ) |
| Pension                plan curtailment/settlement                                                                                                   |   |                                       | **-**         |   |   | - |   |   | (12,817 | ) |
| Other                income, net                                                                                                                     |   |                                       | **11,397**    |   |   | 2,137 |   |   | 14,832 |   |
| Income                from continuing operations before interest, income taxes and equity                in                earnings of joint venture |   |                                       | **49,097**    |   |   | 37,064 |   |   | 10,671 |   |
| Interest                expense, net                                                                                                                 |   |                                       | **(1,682**    | **)** |   | (5,520 | ) |   | (5,522 | ) |
| Income                from continuing operations before income taxes and equity in earnings                of                joint venture           |   |                                       | **47,415**    |   |   | 31,544 |   |   | 5,149 |   |
| Provision                for income taxes                                                                                                            |   |                                       | **(10,905**   | **)** |   | (11,040 | ) |   | (4,789 | ) |
| Income                from continuing operations before equity in earnings of joint                venture                                           |   |                                       | **36,510**    |   |   | 20,504 |   |   | 360 |   |
| Equity                in earnings of joint venture, net of taxes                                                                                     |   |                                       | **13,550**    |   |   | 9,005 |   |   | 10,791 |   |
| Income                from continuing operations                                                                                                     |   |                                       | **50,060**    |   |   | 29,509 |   |   | 11,151 |   |
| Income                from discontinued operations, net of taxes                                                                                     |   |                                       | **2,140**     |   |   | 3,101 |   |   | 2,308 |   |
| Net                income                                                                                                                            |   | **$**                                      | **52,200**    |   | $ | 32,610 |   | $ | 13,459 |   |
|                                                                                                                                                 |   |                                       |               |   |   |  |   |   |  |   |
| Basic                earnings per share:                                                                                                             |   |                                       |          |   |   |   |   |   |   |   |
| Income                from continuing operations                                                                                                     |   | **$**                                      | **5.73**      |   | $ | 3.51 |   | $ | 1.35 |   |
| Income                from discontinued operations, net of taxes                                                                                     |   |                                       | **.25**       |   |   | .37 |   |   | .28 |   |
| Net                income                                                                                                                            |   | **$**                                      | **5.98**      |   | $ | 3.88 |   | $ | 1.63 |   |
|                                                                                                                                                 |   |                                       |          |   |   |   |   |   |   |   |
| Diluted                earnings per share:                                                                                                           |   |                                       |          |   |   |   |   |   |   |   |
| Income                from continuing operations                                                                                                     |   | **$**                                      | **5.64**      |   | $ | 3.44 |   | $ | 1.32 |   |
| Income                from discontinued operations, net of taxes                                                                                     |   |                                       | **.24**       |   |   | .36 |   |   | .27 |   |
| Net                income                                                                                                                            |   | **$**                                      | **5.88**      |   | $ | 3.80 |   | $ | 1.59 |   |
|                                                                                                                                                 |   |                                       |               |   |   |  |   |   |  |   |
| Weighted-average                shares (basic)                                                                                                       |   |                                       | **8,731,839** |   |   | 8,410,563 |   |   | 8,270,487 |   |
| Weighted-average                shares (diluted)                                                                                                     |   |                                       | **8,871,695** |   |   | 8,579,194 |   |   | 8,448,987 |   |

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

*Table            of Contents*

----

**CONSOLIDATED      BALANCE SHEETS - ASSETS**

|                                                                                                                                  |   | **As                of November 30,** |         |
|---------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------|--------------|
|                                                                                                                                  |   |                                  |         |   |   |
| **(Dollars                in thousands, except per share data)**                                                                      |   | **2006**                              |         | **2005** |   |
| **ASSETS**                                                                                                                            |   |                                  |         |   |   |
|                                                                                                                                  |   |                                  |         |   |   |
| Current                assets                                                                                                         |   |                                  |         |   |   |
| Cash                and cash equivalents                                                                                              |   | **$**                                 | **139,479**  |   | $ | 44,671 |   |
| Receivables,                less allowances of $4,912 in 2006 and $7,693 in 2005                                                      |   |                                  | **160,173**  |   |   | 180,558 |   |
| Inventories                                                                                                                           |   |                                  | **77,134**   |   |   | 98,389 |   |
| Deferred                income taxes                                                                                                  |   |                                  | **23,861**   |   |   | 17,598 |   |
| Prepaid                expenses and other current assets                                                                              |   |                                  | **15,921**   |   |   | 11,714 |   |
|                                                                                                                                  |   |                                  |              |   |   |  |   |
| Total                current assets                                                                                                   |   |                                  | **416,568**  |   |   | 352,930 |   |
|                                                                                                                                  |   |                                  |              |   |   |  |   |
| Investments                in joint ventures                                                                                          |   |                                  |              |   |   |  |   |
| Equity                method                                                                                                          |   |                                  | **14,501**   |   |   | 13,777 |   |
| Cost                method                                                                                                            |   |                                  | **3,784**    |   |   | 5,922 |   |
|                                                                                                                                  |   |                                  |              |   |   |  |   |
| Property,                plant and equipment                                                                                          |   |                                  |              |   |   |  |   |
| Land                                                                                                                                  |   |                                  | **33,327**   |   |   | 38,959 |   |
| Buildings                                                                                                                             |   |                                  | **57,434**   |   |   | 88,606 |   |
| Machinery                and equipment                                                                                                |   |                                  | **261,538**  |   |   | 284,593 |   |
| Construction                in progress                                                                                               |   |                                  | **20,657**   |   |   | 15,500 |   |
|                                                                                                                                  |   |                                  |              |   |   |  |   |
| Total                property, plant and equipment at cost                                                                            |   |                                  | **372,956**  |   |   | 427,658 |   |
| Accumulated                depreciation                                                                                               |   |                                  | **(238,486** | **)** |   | (272,993 | ) |
|                                                                                                                                  |   |                                  |              |   |   |  |   |
| Total                property, plant and equipment, net                                                                               |   |                                  | **134,470**  |   |   | 154,665 |   |
| Deferred                income taxes                                                                                                  |   |                                  | **-**        |   |   | 143 |   |
| Intangible                assets, net of accumulated amortization of $3,017 in 2006 and $10,142                in                2005 |   |                                  | **2,143**    |   |   | 13,259 |   |
| Other                assets                                                                                                           |   |                                  | **63,198**   |   |   | 37,340 |   |
|                                                                                                                                  |   |                                  |              |   |   |  |   |
| Total                assets                                                                                                           |   | **$**                                 | **634,664**  |   | $ | 578,036 |   |

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

*Table            of Contents*

----

**CONSOLIDATED      BALANCE SHEETS - LIABILITIES AND STOCKHOLDERS' EQUITY**

|                                                                                                                                                                                                                                 |   | **As                  of November 30,** |        |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------|-------------|
|                                                                                                                                                                                                                                 |   |                                    |        |   |   |
| **(Dollars                  in thousands, except per share data)**                                                                                                                                                                   |   | **2006**                                |        | **2005** |   |
| **LIABILITIES                  AND STOCKHOLDERS' EQUITY**                                                                                                                                                                            |   |                                    |        |   |   |
|                                                                                                                                                                                                                                 |   |                                    |        |   |   |
| Current                  liabilities                                                                                                                                                                                                 |   |                                    |        |   |   |
| Current                  portion of long-term debt                                                                                                                                                                                   |   | **$**                                   | **10,000**  |   | $ | 18,333 |   |
| Trade                  payables                                                                                                                                                                                                      |   |                                    | **45,650**  |   |   | 54,349 |   |
| Accrued                  liabilities                                                                                                                                                                                                 |   |                                    | **68,970**  |   |   | 63,071 |   |
| Income                  taxes payable                                                                                                                                                                                                |   |                                    | **11,481**  |   |   | 1,051 |   |
|                                                                                                                                                                                                                                 |   |                                    |             |   |   |  |   |
| Total                  current liabilities                                                                                                                                                                                           |   |                                    | **136,101** |   |   | 136,804 |   |
|                                                                                                                                                                                                                                 |   |                                    |             |   |   |  |   |
| Long-term                  debt, less current portion                                                                                                                                                                                |   |                                    | **72,525**  |   |   | 77,109 |   |
| Other                  long-term liabilities                                                                                                                                                                                         |   |                                    | **62,813**  |   |   | 67,625 |   |
|                                                                                                                                                                                                                                 |   |                                    |             |   |   |  |   |
| Total                  liabilities                                                                                                                                                                                                   |   |                                    | **271,439** |   |   | 281,538 |   |
|                                                                                                                                                                                                                                 |   |                                    |             |   |   |  |   |
| Commitments                  and contingencies                                                                                                                                                                                       |   |                                    |             |   |   |  |   |
| Stockholders'                  equity                                                                                                                                                                                                |   |                                    |             |   |   |  |   |
|                                                                                                                                                                                                                                 |   |                                    |             |   |   |  |   |
| Common                  stock, par value $2.50 per share, authorized 24,000,000 shares,                  outstanding 9,075,094 shares in 2006 and 8,698,148 shares in 2005,                  net of                  treasury shares |   |                                    | **29,431**  |   |   | 28,450 |   |
| Additional                  paid-in capital                                                                                                                                                                                          |   |                                    | **39,500**  |   |   | 28,936 |   |
| Unearned                  restricted stock                                                                                                                                                                                           |   |                                    | **-**       |   |   | (2,084 | ) |
| Retained                  earnings                                                                                                                                                                                                   |   |                                    | **371,894** |   |   | 326,795 |   |
| Accumulated                  other comprehensive loss                                                                                                                                                                                |   |                                    | **(27,232** | **)** |   | (36,324 | ) |
| Treasury                  stock (2,697,148 shares in 2006 and 2,681,811 shares in                  2005)                                                                                                                             |   |                                    | **(50,368** | **)** |   | (49,275 | ) |
|                                                                                                                                                                                                                                 |   |                                    |             |   |   |  |   |
| Total                  stockholders' equity                                                                                                                                                                                          |   |                                    | **363,225** |   |   | 296,498 |   |
|                                                                                                                                                                                                                                 |   |                                    |             |   |   |  |   |
| Total                  liabilities and stockholders' equity                                                                                                                                                                          |   | **$**                                   | **634,664** |   | $ | 578,036 |   |

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

*Table            of Contents*

----

**CONSOLIDATED      STATEMENTS OF STOCKHOLDERS' EQUITY**

|                                                                             |   | **Common                Stock** |          |       |   |           |   |           |       | **Accumulated** |   |              |   |         |        |
|----------------------------------------------------------------------------------|--------|---------------------------------|---------------|------------|--------|----------------|--------|----------------|------------|-----------------|--------|-------------------|--------|--------------|-------------|
|                                                                             |   |                            |          |       |   | **Additional** |   | **Unearned**   |       |            |   | **Other**         |   |         |        |   |   |
|                                                                             |   | **Shares**                      |          |       |   | **Paid-in**    |   | **Restricted** |       | **Retained**    |   | **Comprehensive** |   | **Treasury** |        |   |   |
| ** (Dollars                in thousands)**                                  |   | **Outstanding**                 |          | **Amount** |   | **Capital**    |   | **Stock**      |       | **Earnings**    |   | **Loss**          |   | **Stock**    |        | **Total** |   |
| Balance,                November 30, 2003                                        |   |                            | 8,214,563     |       | $      | 27,186         |   | $              | 16,443     |            | $      | (1,481            | )      | $            | 294,255     |   | $ | (31,768 | ) | $ | (48,523 | ) | $ | 256,112 |   |
| Net                Income - 2004                                                 |   |                            | -             |       |   | -              |   |           | -          |            |   | -                 |   |         | 13,459      |   |   | - |   |   | - |   |   | 13,459 |   |
| Exercise                of stock options                                         |   |                            | 167,768       |       |   | 419            |   |           | 2,896      |            |   | -                 |   |         | -           |   |   | - |   |   | - |   |   | 3,315 |   |
| Foreign                currency translation adjustment                           |   |                            | -             |       |   | -              |   |           | -          |            |   | -                 |   |         | -           |   |   | 10,175 |   |   | - |   |   | 10,175 |   |
| Minimum                pension liability adjustment, net of tax                  |   |                            | -             |       |   | -              |   |           | -          |            |   | -                 |   |         | -           |   |   | 411 |   |   | - |   |   | 411 |   |
| Comprehensive                income from joint venture                           |   |                            | -             |       |   | -              |   |           | -          |            |   | -                 |   |         | -           |   |   | 762 |   |   | - |   |   | 762 |   |
| Cash                dividends on common stock                                    |   |                            | -             |       |   | -              |   |           | -          |            |   | -                 |   |         | (6,701      | ) |   | - |   |   | - |   |   | (6,701 | ) |
| Stock                compensation expense                                        |   |                            | -             |       |   | -              |   |           | 772        |            |   | -                 |   |         | -           |   |   | - |   |   | - |   |   | 772 |   |
| Issuance                of restricted stock                                      |   |                            | 56,000        |       |   | 140            |   |           | 1,792      |            |   | (1,932            | )      |         | -           |   |   | - |   |   | - |   |   | - |   |
| Restricted                stock compensation expense                             |   |                            | -             |       |   | -              |   |           | -          |            |   | 1,113             |   |         | -           |   |   | - |   |   | - |   |   | 1,113 |   |
| Treasury                stock purchase                                           |   |                            | (6,860        | )          |   | -              |   |           | -          |            |   | -                 |   |         | -           |   |   | - |   |   | (251 | ) |   | (251 | ) |
| Balance,                November 30, 2004                                        |   |                            | 8,431,471     |       |   | 27,745         |   |           | 21,903     |            |   | (2,300            | )      |         | 301,013     |   |   | (20,420 | ) |   | (48,774 | ) |   | 279,167 |   |
| Net                Income - 2005                                                 |   |                            | -             |       |   | -              |   |           | -          |            |   | -                 |   |         | 32,610      |   |   | - |   |   | - |   |   | 32,610 |   |
| Exercise                of stock options                                         |   |                            | 239,318       |       |   | 599            |   |           | 4,701      |            |   | -                 |   |         | -           |   |   | - |   |   | - |   |   | 5,300 |   |
| Foreign                currency translation adjustment                           |   |                            | -             |       |   | -              |   |           | -          |            |   | -                 |   |         | -           |   |   | (10,329 | ) |   | - |   |   | (10,329 | ) |
| Minimum                pension liability adjustment, net of tax                  |   |                            | -             |       |   | -              |   |           | -          |            |   | -                 |   |         | -           |   |   | (5,209 | ) |   | - |   |   | (5,209 | ) |
| Comprehensive                income from joint venture                           |   |                            | -             |       |   | -              |   |           | -          |            |   | -                 |   |         | -           |   |   | (366 | ) |   | - |   |   | (366 | ) |
| Cash                dividends on common stock                                    |   |                            | -             |       |   | -              |   |           | -          |            |   | -                 |   |         | (6,828      | ) |   | - |   |   | - |   |   | (6,828 | ) |
| Stock                compensation expense                                        |   |                            | -             |       |   | -              |   |           | 899        |            |   | -                 |   |         | -           |   |   | - |   |   | - |   |   | 899 |   |
| Issuance                of restricted stock                                      |   |                            | 42,500        |       |   | 106            |   |           | 1,433      |            |   | (1,539            | )      |         | -           |   |   | - |   |   | - |   |   | - |   |
| Restricted                stock compensation expense                             |   |                            | -             |       |   | -              |   |           | -          |            |   | 1,755             |   |         | -           |   |   | - |   |   | - |   |   | 1,755 |   |
| Treasury                stock purchase                                           |   |                            | (15,141       | )          |   | -              |   |           | -          |            |   | -                 |   |         | -           |   |   | - |   |   | (501 | ) |   | (501 | ) |
| **Balance,                November 30, 2005**                                    |   |                            | **8,698,148** |       |   | **28,450**     |   |           | **28,936** |            |   | **(2,084**        | **)**  |         | **326,795** |   |   | **(36,324** | **)** |   | **(49,275** | **)** |   | **296,498** |   |
| **Net                Income - 2006**                                             |   |                            | **-**         |       |   | **-**          |   |           | **-**      |            |   | **-**             |   |         | **52,200**  |   |   | **-** |   |   | **-** |   |   | **52,200** |   |
| **Exercise                of stock options**                                     |   |                            | **347,283**   |       |   | **853**        |   |           | **7,032**  |            |   | **-**             |   |         | **-**       |   |   | **-** |   |   | **109** |   |   | **7,994** |   |
| **Foreign                currency translation adjustment**                       |   |                            | **-**         |       |   | **-**          |   |           | **-**      |            |   | **-**             |   |         | **-**       |   |   | **2,330** |   |   | **-** |   |   | **2,330** |   |
| **Minimum                pension liability adjustment, net of tax**              |   |                            | **-**         |       |   | **-**          |   |           | **-**      |            |   | **-**             |   |         | **-**       |   |   | **6,314** |   |   | **-** |   |   | **6,314** |   |
| **Comprehensive                income from joint venture**                       |   |                            | **-**         |       |   | **-**          |   |           | **-**      |            |   | **-**             |   |         | **-**       |   |   | **448** |   |   | **-** |   |   | **448** |   |
| **Cash                dividends on common stock**                                |   |                            | **-**         |       |   | **-**          |   |           | **-**      |            |   | **-**             |   |         | **(7,101**  | **)** |   | **-** |   |   | **-** |   |   | **(7,101** | **)** |
| **Stock                compensation expense**                                    |   |                            | **-**         |       |   | **-**          |   |           | **151**    |            |   | **-**             |   |         | **-**       |   |   | **-** |   |   | **-** |   |   | **151** |   |
| **Issuance                of restricted stock**                                  |   |                            | **51,000**    |       |   | **128**        |   |           | **(128**   | **)**           |   | **-**             |   |         | **-**       |   |   | **-** |   |   | **-** |   |   | **-** |   |
| **Excess                Tax Benefit related to stock-based compensation**        |   |                            | **-**         |       |   | **-**          |   |           | **2,469**  |            |   | **-**             |   |         | **-**       |   |   | **-** |   |   | **-** |   |   | **2,469** |   |
| **Restricted                stock compensation expense**                         |   |                            | **-**         |       |   | **-**          |   |           | **3,124**  |            |   | **-**             |   |         | **-**       |   |   | **-** |   |   | **-** |   |   | **3,124** |   |
| **Treasury                stock purchase**                                       |   |                            | **(21,337**   | **)**      |   | **-**          |   |           | **-**      |            |   | **-**             |   |         | **-**       |   |   | **-** |   |   | **(1,202** | **)** |   | **(1,202** | **)** |
| **Reclassification                of unearned restricted stock under FAS123(R)** |   |                            | **-**         |       |   | **-**          |   |           | **(2,084** | **)**           |   | **2,084**         |   |         | **-**       |   |   | **-** |   |   | **-** |   |   | **-** |   |
| **Balance,                November 30, 2006**                                    |   |                            | **9,075,094** |       | **$**  | **29,431**     |   | **$**          | **39,500** |            | **$**  | **-**             |   | **$**        | **371,894** |   | **$** | **(27,232** | **)** | **$** | **(50,368** | **)** | **$** | **363,225** |   |

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

*Table            of Contents*

----

**CONSOLIDATED      STATEMENTS OF COMPREHENSIVE INCOME**

|                                                            |   | **Year                ended November 30,** |       |
|-----------------------------------------------------------------|--------|--------------------------------------------|------------|
| **(In                thousands)**                               |   | **2006**                                   |       | **2005** |   | **2004** |   |
|                                                            |   |                                       |       |   |   |   |   |
| Net                income                                       |   | **$**                                      | **52,200** |   | $ | 32,610 |   | $ | 13,459 |   |
| Foreign                currency translation adjustment          |   |                                       | **2,330**  |   |   | (10,329 | ) |   | 10,175 |   |
| Minimum                pension liability adjustment, net of tax |   |                                       | **6,314**  |   |   | (5,209 | ) |   | 411 |   |
| Comprehensive                income/(loss) from joint venture   |   |                                       | **448**    |   |   | (366 | ) |   | 762 |   |
| Comprehensive                income                             |   | **$**                                      | **61,292** |   | $ | 16,706 |   | $ | 24,807 |   |

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

*Table                of Contents*

----

**CONSOLIDATED      STATEMENTS OF CASH FLOWS**

|                                                                                                                |   | **Year                  ended November 30,** |        |
|---------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------|-------------|
| **(In                  thousands)**                                                                                 |   | **2006**                                     |        | **2005** |   | **2004** |   |
| **OPERATING                  ACTIVITIES**                                                                           |   |                                         |        |   |   |   |   |
| Net                  income                                                                                         |   | **$**                                        | **52,200**  |   | $ | 32,610 |   | $ | 13,459 |   |
| Adjustments                  to reconcile net income to net cash provided by operating                  activities: |   |                                         |             |   |   |  |   |   |  |   |
| Depreciation                                                                                                        |   |                                         | **17,270**  |   |   | 18,718 |   |   | 18,673 |   |
| Amortization                                                                                                        |   |                                         | **170**     |   |   | 206 |   |   | 224 |   |
| (Benefit)/provision                  for deferred income taxes                                                      |   |                                         | **(5,631**  | **)** |   | 701 |   |   | 3,689 |   |
| Net                  earnings and distributions from joint ventures                                                 |   |                                         | **(276**    | **)** |   | 1,901 |   |   | (2,217 | ) |
| Gain                  from sale of investments, property, plant and equipment                                       |   |                                         | **(8,864**  | **)** |   | (1,634 | ) |   | (13,140 | ) |
| Loss                  from sale of discontinued operations                                                          |   |                                         | **157**     |   |   | - |   |   | - |   |
| Stock                  compensation expense                                                                         |   |                                         | **3,275**   |   |   | 2,654 |   |   | 1,885 |   |
| Changes                  in operating assets and liabilities:                                                       |   |                                         |             |   |   |  |   |   |  |   |
| Receivables,                  net                                                                                   |   |                                         | **(23,284** | **)** |   | (23,649 | ) |   | (1,690 | ) |
| Inventories                                                                                                         |   |                                         | **(25,906** | **)** |   | (10,624 | ) |   | 3,665 |   |
| Prepaid                  expenses and other current assets                                                          |   |                                         | **(5,890**  | **)** |   | (884 | ) |   | (1,792 | ) |
| Other                  assets                                                                                       |   |                                         | **(11,990** | **)** |   | 1,894 |   |   | 2,789 |   |
| Trade                  payables                                                                                     |   |                                         | **6,937**   |   |   | 6,686 |   |   | 64 |   |
| Accrued                  liabilities and income taxes payable                                                       |   |                                         | **22,330**  |   |   | 3,660 |   |   | (2,597 | ) |
| Other                  long-term liabilities                                                                        |   |                                         | **(3,655**  | **)** |   | 4,945 |   |   | (12,949 | ) |
| Net                  cash provided by operating activities                                                          |   |                                         | **16,843**  |   |   | 37,184 |   |   | 10,063 |   |
|                                                                                                                |   |                                         |             |   |   |  |   |   |  |   |
| **INVESTING                  ACTIVITIES**                                                                           |   |                                         |             |   |   |  |   |   |  |   |
| Proceeds                  from sale of property, plant and equipment                                                |   |                                         | **10,253**  |   |   | 3,855 |   |   | 15,702 |   |
| Proceeds                  from sale of discontinued operations                                                      |   |                                         | **115,000** |   |   | - |   |   | - |   |
| Proceeds                  from sale of other investments                                                            |   |                                         | **-**       |   |   | - |   |   | 7,214 |   |
| Additions                  to investments, property, plant and equipment                                            |   |                                         | **(35,519** | **)** |   | (25,371 | ) |   | (18,755 | ) |
| Net                  cash provided by (used in) investing activities                                                |   |                                         | **89,734**  |   |   | (21,516 | ) |   | 4,161 |   |
|                                                                                                                |   |                                         |             |   |   |  |   |   |  |   |
| **FINANCING                  ACTIVITIES**                                                                           |   |                                         |             |   |   |  |   |   |  |   |
| Issuance                  of debt                                                                                   |   |                                         | **3,279**   |   |   | 59,424 |   |   | 11,033 |   |
| Repayment                  of debt                                                                                  |   |                                         | **(19,402** | **)** |   | (57,073 | ) |   | (11,874 | ) |
| Debt                  issuance costs                                                                                |   |                                         | **-**       |   |   | (322 | ) |   | (477 | ) |
| Dividends                  on common stock                                                                          |   |                                         | **(7,101**  | **)** |   | (6,828 | ) |   | (6,701 | ) |
| Issuance                  of common stock                                                                           |   |                                         | **7,994**   |   |   | 5,300 |   |   | 3,315 |   |
| Excess                  tax benefits related to stock-based compensation                                            |   |                                         | **2,469**   |   |   | - |   |   | - |   |
| Change                  in treasury stock                                                                           |   |                                         | **(1,202**  | **)** |   | (501 | ) |   | (251 | ) |
| Net                  cash used in financing activities                                                              |   |                                         | **(13,963** | **)** |   | - |   |   | (4,955 | ) |
|                                                                                                                |   |                                         |             |   |   |  |   |   |  |   |
| Effect                  of exchange rate changes on cash and cash equivalents                                       |   |                                         | **2,194**   |   |   | (1,121 | ) |   | 465 |   |
| Net                  change in cash and cash equivalents                                                            |   |                                         | **94,808**  |   |   | 14,547 |   |   | 9,734 |   |
| Cash                  and cash equivalents at beginning of year                                                     |   |                                         | **44,671**  |   |   | 30,124 |   |   | 20,390 |   |
|                                                                                                                |   |                                         |             |   |   |  |   |   |  |   |
| Cash                  and cash equivalents at end of year                                                           |   | **$**                                        | **139,479** |   | $ | 44,671 |   | $ | 30,124 |   |

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

*Table            of Contents*

----

**NOTESTO      CONSOLIDATED FINANCIAL STATEMENTS**

**NOTE      1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

***Principles      of Consolidation***

***Use      of Estimates***

***Revenue      Recognition***

***Research      and Development Costs***

***Environmental      Clean-up Costs***

***Income      Taxes***

*Table            of Contents*

----

***Net      Income Per Share***

| **(In                thousands, except per share data)**             |   | **2006** |          | **2005** |   | **2004**  |   |
|----------------------------------------------------------------------|--------|----------|---------------|----------|--------|-----------|--------|
| Numerator:                                                           |   |     |          |     |   |      |   |
| Income                from continuing operations                     |   | **$**    | **50,060**    |     | $      | 29,509    |   | $ | 11,151 |   |
| Income                from discontinuing operations, net of taxes    |   |     | **2,140**     |     |   | 3,101     |   |   | 2,308 |   |
| Net                income                                            |   | **$**    | **52,200**    |     | $      | 32,610    |   | $ | 13,459 |   |
|                                                                 |   |     |          |     |   |      |   |   |   |   |
| Denominator                for basic income per share:               |   |     |          |     |   |      |   |   |   |   |
| Weighted-average                shares outstanding, basic            |   |     | **8,731,839** |     |   | 8,410,563 |   |   | 8,270,487 |   |
|                                                                 |   |     |          |     |   |      |   |   |   |   |
| Denominator                for diluted income per share:             |   |     |          |     |   |      |   |   |   |   |
| Weighted-average                shares outstanding, basic            |   |     | **8,731,839** |     |   | 8,410,563 |   |   | 8,270,487 |   |
| Dilutive                effect of stock options and restricted stock |   |     | **139,856**   |     |   | 168,631   |   |   | 178,500 |   |
| Weighted-average                shares outstanding, diluted          |   |     | **8,871,695** |     |   | 8,579,194 |   |   | 8,448,987 |   |
|                                                                 |   |     |          |     |   |      |   |   |   |   |
| Basic                net income per share:                           |   |     |          |     |   |      |   |   |   |   |
| Income                from continuing operations                     |   | **$**    | **5.73**      |     | $      | 3.51      |   | $ | 1.35 |   |
| Income                from discontinued operations, net of taxes     |   |     | **.25**       |     |   | .37       |   |   | .28 |   |
| Net                income                                            |   | **$**    | **5.98**      |     | $      | 3.88      |   | $ | 1.63 |   |
|                                                                 |   |     |          |     |   |      |   |   |   |   |
| Diluted                net income per share:                         |   |     |          |     |   |      |   |   |   |   |
| Income                from continuing operations                     |   | **$**    | **5.64**      |     | $      | 3.44      |   | $ | 1.32 |   |
| Income                from discontinued operations, net of taxes     |   |     | **.24**       |     |   | .36       |   |   | .27 |   |
| Net                income                                            |   | **$**    | **5.88**      |     | $      | 3.80      |   | $ | 1.59 |   |

***Cash      and Cash Equivalents***

***Inventory      Valuation***

***Joint      Ventures***

*Table            of Contents*

----

***Property,      Plant and Equipment***

|                                      | **Useful                Lives** |
|-------------------------------------------|---------------------------------|
|                                      | **in                Years**     |
| Buildings                                 | 10-40                           |
| Machinery                and equipment    |                            |
| Autos,                trucks and trailers | 3-8                             |
| Cranes                and tractors        | 5-15                            |
| Manufacturing                equipment    | 3-15                            |
| Other                                     | 3-20                            |

***Goodwill      and Intangible Assets***

***Self      Insurance***

***Foreign      Currency Translation***

***Derivative      Financial Instruments and Risk Management***

*Table            of Contents*

----

***Fair      Value of Financial Instruments***

***Concentration      of Credit Risk***

***Stock-Based      Compensation***

*Accounting      for Stock Issued to Employees*
*Share-Based      Payments*

***New      Accounting Pronouncements***

*Table            of Contents*

----

***Supplemental      Cash Flow Information***

| **(In                thousands)** |   | **2006** |   | **2005** |   | **2004** |   |
|-----------------------------------|--------|----------|--------|----------|--------|----------|--------|
| Interest                paid      |   | $        | 4,891  |     | $      | 5,863    |   | $ | 6,509 |   |
| Income                taxes paid  |   |     | 8,787  |     |   | 17,482   |   |   | 6,103 |   |

**NOTE      2 - DISCONTINUED OPERATIONS**

| **(In                thousands)**                                                                      |   | **2006** |        | **2005** |   | **2004** |   |
|--------------------------------------------------------------------------------------------------------|--------|----------|-------------|----------|--------|----------|--------|
| Revenue                from discontinued operations                                                    |   | **$**    | **152,190** |     | $      | 209,807  |   | $ | 199,623 |   |
|                                                                                                   |   |     |        |     |   |     |   |   |   |   |
| Income                from discontinued operations before disposal, before income                taxes |   | **$**    | **5,308**   |     | $      | 6,531    |   | $ | 5,525 |   |
| Income                taxes on income from discontinued operations                                     |   |     | **(3,011**  | **)**    |   | (3,430   | )      |   | (3,217 | ) |
| Income                from discontinued operations, before disposal, net of                taxes       |   |     | **2,297**   |     |   | 3,101    |   |   | 2,308 |   |
|                                                                                                   |   |     |        |     |   |     |   |   |   |   |
| Gain                from sale of discontinued operations, before income taxes                          |   |     | **862**     |     |   | -        |   |   | - |   |
| Income                taxes on gain from sale of discontinued operations                               |   |     | **(1,019**  | **)**    |   | -        |   |   | - |   |
| Loss                on sale of discontinued operations, net of taxes                                   |   |     | **(157**    | **)**    |   | -        |   |   | - |   |
| Income                from discontinued operations, net of taxes                                       |   | **$**    | **2,140**   |     | $      | 3,101    |   | $ | 2,308 |   |

*Table            of Contents*

----

**NOTE      3 - OTHER INCOME, NET**

| **(In                  thousands)**                                   |   | **2006** |       | **2005** |   | **2004** |   |
|-----------------------------------------------------------------------|--------|----------|------------|----------|--------|----------|--------|
| Gain/(loss)                  on sale of property, plant and equipment |   | **$**    | **8,837**  |     | $      | (220     | )      | $ | 13,082 |   |
| Other                                                                 |   |     | **2,762**  |     |   | (65      | )      |   | 927 |   |
| Royalties,                  fees and other income                     |   |     | **887**    |     |   | 602      |   |   | 758 |   |
| Dividends                  from joint ventures-cost method            |   |     | **-**      |     |   | 1,300    |   |   | - |   |
| Foreign                  currency (loss)/gain                         |   |     | **(1,089** | **)**    |   | 520      |   |   | 65 |   |
|                                                                  |   | **$**    | **11,397** |     | $      | 2,137    |   | $ | 14,832 |   |

**NOTE      4 - RECEIVABLES**

| **(In                  thousands)** |   | **2006** |        | **2005** |   |
|-------------------------------------|--------|----------|-------------|----------|--------|
| Trade                               |   | **$**    | **124,308** |     | $      | 175,586 |   |
| Other                               |   |     | **31,299**  |     |   | 10,761 |   |
| Joint                  venture      |   |     | **9,478**   |     |   | 1,904 |   |
| Allowances                          |   |     | **(4,912**  | **)**    |   | (7,693 | ) |
|                                |   | **$**    | **160,173** |     | $      | 180,558 |   |

**NOTE      5 - INVENTORIES**

| **(In                  thousands)**     |   | **2006** |       | **2005** |   |
|-----------------------------------------|--------|----------|------------|----------|--------|
| Finished                  products      |   | **$**    | **30,802** |     | $      | 54,661 |   |
| Materials                  and supplies |   |     | **22,224** |     |   | 23,636 |   |
| Products                  in process    |   |     | **24,108** |     |   | 20,092 |   |
|                                    |   | **$**    | **77,134** |     | $      | 98,389 |   |

**NOTE      6 - JOINT VENTURES**

| **(In                  thousands)**        |   | **2006** |       | **2005** |   |
|--------------------------------------------|--------|----------|------------|----------|--------|
| Investment--equity                  method |   | **$**    | **14,501** |     | $      | 13,777 |   |
| Investments--cost                  method  |   |     | **3,784**  |     |   | 5,922 |   |
|                                       |   | **$**    | **18,285** |     | $      | 19,699 |   |

*Table            of Contents*

----

|                           |   |                                     |   | **Ownership** |
|--------------------------------|--------|------------------------------------------|--------|---------------|
| **Products**                   |   | **Joint                Ventures**        |   | **Interest**  |
| Fiberglass                pipe |   | Bondstrand,                Ltd.          |   | 40%           |
| Concrete                pipe   |   | Ameron                Saudi Arabia, Ltd. |   | 30%           |
| Steel                products  |   | TAMCO                                    |   | 50%           |

|                                                              |   | **Discontinued** |   | **Fiberglass** |   | **Concrete** |   | **Steel**    |   |      |   |
|-------------------------------------------------------------------|--------|------------------|--------|----------------|--------|--------------|--------|--------------|--------|-----------|--------|
| **(In                  thousands)**                               |   | **Operations**   |   | **Pipe**       |   | **Pipe**     |   | **Products** |   | **Total** |   |
| **Cost**                                                          |   | **$**            | **-**  |           | **$**  | **3,784**    |   | **$**        | **-**  |      | **$**  | **8,482** |   | **$** | **12,266** |   |
| **Comprehensive                  loss from joint venture**        |   |             | **-**  |           |   | **-**        |   |         | **-**  |      |   | **(1,096** | **)** |   | **(1,096** | **)** |
| **Accumulated                  equity in undistributed earnings** |   |             | **-**  |           |   | **-**        |   |         | **-**  |      |   | **7,115** |   |   | **7,115** |   |
|                                                              |   |             |        |           |   |              |   |         |        |      |   |  |   |   |  |   |
| **Investment,                  November 30, 2006**                |   | **$**            | **-**  |           | **$**  | **3,784**    |   | **$**        | **-**  |      | **$**  | **14,501** |   | **$** | **18,285** |   |
|                                                              |   |             |   |           |   |         |   |         |   |      |   |   |   |   |   |   |
| **2006                  Dividends**                               |   | **$**            | **-**  |           | **$**  | **-**        |   | **$**        | **-**  |      | **$**  | **15,004** |   | **$** | **15,004** |   |
|                                                              |   |             |        |           |   |              |   |         |        |      |   |  |   |   |  |   |
| Cost                                                              |   | $                | 2,138  |           | $      | 3,784        |   | $            | -      |      | $      | 8,482 |   | $ | 14,404 |   |
| Comprehensive                  loss from joint venture            |   |             | -      |           |   | -            |   |         | -      |      |   | (1,544 | ) |   | (1,544 | ) |
| Accumulated                  equity in undistributed earnings     |   |             | -      |           |   | -            |   |         | -      |      |   | 6,839 |   |   | 6,839 |   |
|                                                              |   |             |        |           |   |              |   |         |        |      |   |  |   |   |  |   |
| Investment,                  November 30, 2005                    |   | $                | 2,138  |           | $      | 3,784        |   | $            | -      |      | $      | 13,777 |   | $ | 19,699 |   |
|                                                              |   |             |        |           |   |              |   |         |        |      |   |  |   |   |  |   |
| 2005                  Dividends                                   |   | $                | 540    |           | $      | 1,300        |   | $            | -      |      | $      | 11,952 |   | $ | 13,792 |   |

| **(In                thousands)**     |   | **2006** |       | **2005** |   |
|---------------------------------------|--------|----------|------------|----------|--------|
| Current                assets         |   | **$**    | **64,766** |     | $      | 65,170 |   |
| Noncurrent                assets      |   |     | **34,189** |     |   | 28,118 |   |
|                                  |   | **$**    | **98,955** |     | $      | 93,288 |   |
|                                  |   |     |            |     |   |  |   |
| Current                liabilities    |   | **$**    | **46,434** |     | $      | 41,605 |   |
| Noncurrent                liabilities |   |     | **7,780**  |     |   | 8,388 |   |
| Stockholders'                equity   |   |     | **44,741** |     |   | 43,295 |   |
|                                  |   | **$**    | **98,955** |     | $      | 93,288 |   |

| **(In                thousands)** |   | **2006** |        | **2005** |   | **2004** |   |
|-----------------------------------|--------|----------|-------------|----------|--------|----------|--------|
| Net                sales          |   | **$**    | **273,036** |     | $      | 252,435  |   | $ | 215,849 |   |
| Gross                profit       |   |     | **61,336**  |     |   | 42,188   |   |   | 45,885 |   |
| Net                income         |   |     | **30,559**  |     |   | 20,391   |   |   | 23,427 |   |

*Table            of Contents*

----

**NOTE      7 - OTHER ASSETS**

| **(In                  thousands)**                         |   | **2006** |       | **2005** |   |
|-------------------------------------------------------------|--------|----------|------------|----------|--------|
| Cash                  surrender value of insurance policies |   | **$**    | **24,828** |     | $      | 24,660 |   |
| Pension-related                  assets                     |   |     | **20,990** |     |   | 8,848 |   |
| Assets                  held for sale                       |   |     | **14,737** |     |   | - |   |
| Other                                                       |   |     | **2,643**  |     |   | 3,832 |   |
|                                                        |   | **$**    | **63,198** |     | $      | 37,340 |   |

**NOTE      8 - ACCRUED LIABILITIES**

| **(In                  thousands)**                         |   | **2006** |       | **2005** |   |
|-------------------------------------------------------------|--------|----------|------------|----------|--------|
| Self                  insurance reserves                    |   | **$**    | **30,088** |     | $      | 23,620 |   |
| Compensation                  and benefits                  |   |     | **21,331** |     |   | 21,454 |   |
| Commissions                  and royalties                  |   |     | **6,562**  |     |   | 2,955 |   |
| Product                  warranties and guarantees          |   |     | **3,146**  |     |   | 4,026 |   |
| Taxes                  (other than income taxes)            |   |     | **1,382**  |     |   | 3,992 |   |
| Reserves                  for pending claims and litigation |   |     | **1,231**  |     |   | 1,702 |   |
| Advances                  from customers                    |   |     | **475**    |     |   | 508 |   |
| Interest                                                    |   |     | **153**    |     |   | 238 |   |
| Other                                                       |   |     | **4,602**  |     |   | 4,576 |   |
|                                                        |   | **$**    | **68,970** |     | $      | 63,071 |   |

| **(In                  thousands)**                                       |   | **2006** |       | **2005** |   |
|---------------------------------------------------------------------------|--------|----------|------------|----------|--------|
| Balance,                  beginning of period                             |   | **$**    | **4,026**  |     | $      | 4,297 |   |
| Payments                                                                  |   |     | **(1,680** | **)**    |   | (3,738 | ) |
| Warranties                  adjustment related to discontinued operations |   |     | **(1,675** | **)**    |   | - |   |
| Warranties                  issued during the period                      |   |     | **2,475**  |     |   | 3,467 |   |
| Balance,                  end of period                                   |   | **$**    | **3,146**  |     | $      | 4,026 |   |

**NOTE      9 - OTHER LONG-TERM LIABILITIES**

| **(In                  thousands)**              |   | **2006** |       | **2005** |   |
|--------------------------------------------------|--------|----------|------------|----------|--------|
| Accrued                  pension cost            |   | **$**    | **54,140** |     | $      | 61,906 |   |
| Deferred                  income                 |   |     | **3,167**  |     |   | - |   |
| Compensation                  and benefits       |   |     | **4,618**  |     |   | 3,025 |   |
| Deferred                  income tax liabilities |   |     | **785**    |     |   | - |   |
| Other                                            |   |     | **103**    |     |   | 2,694 |   |
|                                             |   | **$**    | **62,813** |     | $      | 67,625 |   |

*Table            of Contents*

----

**NOTE      10 - INCOME TAXES**

| **(In                thousands)** |   | **2006** |        | **2005** |   | **2004** |   |
|-----------------------------------|--------|----------|-------------|----------|--------|----------|--------|
| Current                           |   |     |        |     |   |     |   |
| Federal                           |   | **$**    | **14,615**  |     | $      | 2,260    |   | $ | (1,035 | ) |
| Foreign                           |   |     | **5,364**   |     |   | 3,449    |   |   | 3,087 |   |
| State                             |   |     | **3,459**   |     |   | 797      |   |   | (621 | ) |
|                              |   | **$**    | **23,438**  |     | $      | 6,506    |   | $ | 1,431 |   |
|                              |   |     |             |     |   |          |   |   |  |   |
| Deferred                          |   |     |             |     |   |          |   |   |  |   |
| Federal                           |   | **$**    | **(10,309** | **)**    | $      | 3,573    |   | $ | 3,086 |   |
| Foreign                           |   |     | **(386**    | **)**    |   | 173      |   |   | (157 | ) |
| State                             |   |     | **(1,838**  | **)**    |   | 788      |   |   | 429 |   |
|                              |   |     | **(12,533** | **)**    |   | 4,534    |   |   | 3,358 |   |
|                              |   | **$**    | **10,905**  |     | $      | 11,040   |   | $ | 4,789 |   |

| **(In                    thousands)**                                      |   | **2006** |        | **2005** |   |
|----------------------------------------------------------------------------|--------|----------|-------------|----------|--------|
| Current                    deferred income taxes                           |   |     |        |     |   |
| Self-insurance                    and claims reserves                      |   | **$**    | **15,142**  |     | $      | 11,516 |   |
| Inventories                                                                |   |     | **4,998**   |     |   | 5,278 |   |
| Employee                    benefits                                       |   |     | **5,631**   |     |   | 3,350 |   |
| Accounts                    receivable                                     |   |     | **1,097**   |     |   | 1,164 |   |
| Valuation                    allowances                                    |   |     | **(3,708**  | **)**    |   | (2,763 | ) |
| Other                                                                      |   |     | **701**     |     |   | (947 | ) |
|                                                                       |   |     |             |     |   |  |   |
| Net                    current deferred income tax assets                  |   |     | **23,861**  |     |   | 17,598 |   |
|                                                                       |   |     |             |     |   |  |   |
| Noncurrent                    deferred income taxes                        |   |     |             |     |   |  |   |
| Net                    operating loss carry-overs                          |   |     | **17,138**  |     |   | 19,084 |   |
| Prepaid                    pension benefit costs                           |   |     | **12,854**  |     |   | 13,797 |   |
| Employee                    benefits                                       |   |     | **831**     |     |   | 860 |   |
| Investments                                                                |   |     | **3,234**   |     |   | 3,255 |   |
| Valuation                    allowances                                    |   |     | **(18,193** | **)**    |   | (19,560 | ) |
| Property,                    plant and equipment                           |   |     | **(16,341** | **)**    |   | (16,524 | ) |
| Other                                                                      |   |     | **(308**    | **)**    |   | (769 | ) |
|                                                                       |   |     |             |     |   |  |   |
| Net                    noncurrent deferred income tax (liabilities)/assets |   |     | **(785**    | **)**    |   | 143 |   |
|                                                                       |   |     |             |     |   |  |   |
| Net                    deferred income tax assets                          |   | **$**    | **23,076**  |     | $      | 17,741 |   |

*Table            of Contents*

----

| **(In                thousands)**                                                                    |   | **2006** |       | **2005** |   | **2004** |   |
|------------------------------------------------------------------------------------------------------|--------|----------|------------|----------|--------|----------|--------|
| Domestic                pretax income                                                                |   | **$**    | **30,036** |     | $      | 19,532   |   | $ | (8,892 | ) |
| Foreign                pretax income                                                                 |   |     | **17,379** |     |   | 12,012   |   |   | 14,041 |   |
|                                                                                                 |   | **$**    | **47,415** |     | $      | 31,544   |   | $ | 5,149 |   |
| Taxes                at federal statutory rate                                                       |   | **$**    | **16,596** |     | $      | 11,040   |   | $ | 1,802 |   |
| State                taxes, net of federal tax benefit                                               |   |     | **1,053**  |     |   | 942      |   |   | (563 | ) |
| Foreign                earnings taxed at different rates, including withholding                taxes |   |     | **1,264**  |     |   | (484     | )      |   | (2,213 | ) |
| Percentage                depletion                                                                  |   |     | **(558**   | **)**    |   | (449     | )      |   | (421 | ) |
| Non-deductible                compensation                                                           |   |     | **1,702**  |     |   | 693      |   |   | 7,709 |   |
| Research                and development credits                                                      |   |     | **(28**    | **)**    |   | (329     | )      |   | (259 | ) |
| Section                199 deduction                                                                 |   |     | **(490**   | **)**    |   | -        |   |   | - |   |
| Adjustments                to previously accrued taxes                                               |   |     | **(7,233** | **)**    |   | -        |   |   | - |   |
| Repatriation                of foreign earnings under the AJCA                                       |   |     | **-**      |     |   | 1,077    |   |   | - |   |
| Other,                net                                                                            |   |     | **(1,401** | **)**    |   | (1,450   | )      |   | (1,266 | ) |
|                                                                                                 |   | **$**    | **10,905** |     | $      | 11,040   |   | $ | 4,789 |   |

**NOTE      11 - DEBT**

*Table            of Contents*

----

| **(In                thousands)**                                                                             |   | **2006** |        | **2005** |   |
|---------------------------------------------------------------------------------------------------------------|--------|----------|-------------|----------|--------|
| Fixed-rate                notes:                                                                              |   |     |        |     |   |
| 7.92%                                                                                                         |   | **$**    | **-**       |     | $      | 8,333 |   |
| 5.36%,                payable in annual principal installments of $10,000                                     |   |     | **30,000**  |     |   | 40,000 |   |
| 4.25%,                payable in Singapore Dollars, in annual principal installments of                $6,634 |   |     | **33,173**  |     |   | 30,158 |   |
| Variable-rate                industrial development bonds:                                                    |   |     |             |     |   |  |   |
| payable                in 2016 (3.85% at November 30, 2006)                                                   |   |     | **7,200**   |     |   | 7,200 |   |
| payable                in 2021 (3.85% at November 30, 2006)                                                   |   |     | **8,500**   |     |   | 8,500 |   |
| Variable-rate                bank revolving credit facility (6.34% at November 30,                2006)       |   |     | **3,652**   |     |   | 1,251 |   |
|                                                                                                          |   |     | **82,525**  |     |   | 95,442 |   |
| Less                current portion                                                                           |   |     | **(10,000** | **)**    |   | (18,333 | ) |
|                                                                                                          |   | **$**    | **72,525**  |     | $      | 77,109 |   |

|                              |   | **Year                ending**  |             |       |   |
|-----------------------------------|--------|---------------------------------|------------------|------------|--------|
| **(In                thousands)** |   | **November                30,** |             | **Amount** |   |
|                              |   |                            | 2007             |       | **$**  | **10,000** |   |
|                              |   |                            | 2008             |       |   | **16,634** |   |
|                              |   |                            | 2009             |       |   | **16,634** |   |
|                              |   |                            | 2010             |       |   | **10,286** |   |
|                              |   |                            | 2011             |       |   | **6,634** |   |
|                              |   |                            |  Thereafter |       |   | **22,337** |   |
|                              |   |                            |             |       | **$**  | **82,525** |   |

| **(In                thousands)**    |   | **2006** |       | **2005** |   | **2004** |   |
|--------------------------------------|--------|----------|------------|----------|--------|----------|--------|
| Interest                expense      |   | **$**    | **4,581**  |     | $      | 5,779    |   | $ | 5,630 |   |
| Interest                income       |   |     | **(2,899** | **)**    |   | (259     | )      |   | (108 | ) |
| Interest                expense, net |   | **$**    | **1,682**  |     | $      | 5,520    |   | $ | 5,522 |   |

*Table            of Contents*

----

|                                             |   | **Carrying** |       | **Fair**  |   |
|--------------------------------------------------|--------|--------------|------------|-----------|--------|
| **(In                thousands)**                |   | **Amount**   |       | **Value** |   |
| **November                30, 2006**             |   |         |       |      |   |
| **Fixed-rate,                long-term debt**    |   | **$**        | **63,173** |      | **$**  | **63,397** |   |
| **Variable-rate,                long-term debt** |   |         | **19,352** |      |   | **19,352** |   |
|                                             |   |         |            |      |   |  |   |
| November                30, 2005                 |   |         |            |      |   |  |   |
| Fixed-rate,                long-term debt        |   |         | 78,491     |      |   | 78,983 |   |
| Variable-rate,                long-term debt     |   |         | 16,951     |      |   | 16,951 |   |

**NOTE      12 - LEASE COMMITMENTS**

|                              |   | **Year                ending**  |       |       |   |
|-----------------------------------|--------|---------------------------------|------------|------------|--------|
| **(In                thousands)** |   | **November                30,** |       | **Amount** |   |
|                              |   |                            | 2007       |       | **$**  | **3,682** |   |
|                              |   |                            | 2008       |       |   | **3,506** |   |
|                              |   |                            | 2009       |       |   | **3,436** |   |
|                              |   |                            | 2010       |       |   | **2,991** |   |
|                              |   |                            | 2011       |       |   | **2,076** |   |
|                              |   |                            | Thereafter |       |   | **16,826** |   |
|                              |   |                            |       |       | **$**  | **32,517** |   |

**NOTE      13 - INCENTIVE STOCK COMPENSATION PLANS**

*Table            of Contents*

----

*Accounting      for Stock Issued to Employees*
*Share-Based      Payments*
*Accounting      for Stock-Based Compensation*

| **(In                thousands, except per share data)**                                                                                 |   | **2005** |   | **2004** |   |
|------------------------------------------------------------------------------------------------------------------------------------------|--------|----------|--------|----------|--------|
| Reported                net income                                                                                                       |   | $        | 32,610 |     | $      | 13,459 |   |
| Add:                stock-based employee compensation expense included in reported net                income,                net of tax  |   |     | 1,645  |     |   | 1,149 |   |
| Deduct:                stock-based employee compensation expense determined under SFAS No.                123,                net of tax |   |     | (1,212 | )        |   | (889 | ) |
| Pro                forma net income                                                                                                      |   | $        | 33,043 |     | $      | 13,719 |   |
|                                                                                                                                     |   |     |   |     |   |   |   |
| Earnings                per share (basic)                                                                                                |   |     |   |     |   |   |   |
| As                reported                                                                                                               |   | $        | 3.88   |     | $      | 1.63 |   |
| Pro                forma                                                                                                                 |   |     | 3.93   |     |   | 1.66 |   |
|                                                                                                                                     |   |     |   |     |   |   |   |
| Earnings                per share (diluted)                                                                                              |   |     |   |     |   |   |   |
| As                reported                                                                                                               |   |     | 3.80   |     |   | 1.59 |   |
| Pro                forma                                                                                                                 |   |     | 3.85   |     |   | 1.62 |   |

*Table            of Contents*

----

***Current      Year Stock-Based Compensation***

|                                                    |   |                         |     |                              |   | **Weighted-**                   |   |                               |   |
|---------------------------------------------------------|--------|------------------------------|----------|-----------------------------------|--------|---------------------------------|--------|------------------------------------|--------|
|                                                    |   |                         |     | **Weighted-**                     |   | **Average**                     |   |                               |   |
|                                                    |   |                         |     | **Average**                       |   | **Remaining**                   |   | **Aggregate**                      |   |
|                                                    |   | **Number                of** |     | **Exercise                Price** |   | **Contractual**                 |   | **Intrinsic                Value** |   |
| **Options**                                             |   | **Options**                  |     | **per                Share**      |   | **Term                (Years)** |   | **(in                thousands)**  |   |
| Outstanding                at November 30, 2005         |   |                         | 467,783  |                              | $      | 24.11                           |   |                               |   |   |   |   |   |
| Exercised                                               |   |                         | (347,283 | )                                 |   | 23.02                           |   |                               |   |   |   |   |   |
| Outstanding                at November 30, 2006         |   |                         | 120,500  |                              |   | 27.25                           |   |                               | 4.93   |   | $ | 5,779 |   |
|                                                    |   |                         |     |                              |   |                            |   |                               |   |   |   |   |   |
| Options                exercisable at November 30, 2006 |   |                         | 98,000   |                              |   | 26.01                           |   |                               | 4.30   |   | $ | 4,821 |   |

**NOTE      14 - GOODWILL AND OTHER INTANGIBLE ASSETS**

|                                               |   |                            |   |              |   | **Foreign**     |   |                            |   |
|----------------------------------------------------|--------|---------------------------------|--------|-------------------|--------|-----------------|--------|---------------------------------|--------|
|                                               |   |                            |   |              |   | **Currency**    |   |                            |   |
|                                               |   | **November                30,** |   | **Acquisition/**  |   | **Translation** |   | **November                30,** |   |
| **(In                thousands)**                  |   | **2005**                        |   | **(Disposition)** |   | **Adjustments** |   | **2006**                        |   |
| Continuing                operations:              |   |                            |   |              |   |            |   |                            |   |
| Fiberglass-Composite                Pipe           |   | $                               | 1,440  |              | $      | -               |   | $                               | -      |   | **$** | **1,440** |   |
| Water                Transmission                  |   |                            | -      |              |   | 390             |   |                            | -      |   |   | **390** |   |
| Infrastructure                Products             |   |                            | 201    |              |   | -               |   |                            | -      |   |   | **201** |   |
|                                               |   | $                               | 1,641  |              | $      | 390             |   | $                               | -      |   | **$** | **2,031** |   |
| Discontinued                operations:            |   |                            |   |              |   |            |   |                            |   |   |   |   |   |
| Performance                Coatings & Finishes |   | $                               | 11,441 |              | $      | (11,578         | )      | $                               | 137    |   | **$** | **-** |   |

*Table            of Contents*

----

|                                        |   | **2006**                                |      | **2005**         |   |
|---------------------------------------------|--------|-----------------------------------------|-----------|------------------|--------|
|                                        |   | **Gross                    Intangible** |      | **Accumulated**  |   | **Gross                    Intangible** |   | **Accumulated** |   |
| **(In                    thousands)**       |   | **Assets**                              |      | **Amortization** |   | **Assets** |   | **Amortization** |   |
| Continuing                    operations    |   |                                    |      |             |   |   |   |   |   |
| Trademarks                                  |   | **$**                                   | **100**   |             | **$**  | **(100** | **)** | $ | 100 |   | $ | (100 | ) |
| Non-compete                    agreements   |   |                                    | **252**   |             |   | **(140** | **)** |   | 105 |   |   | (105 | ) |
| Patents                                     |   |                                    | **212**   |             |   | **(212** | **)** |   | 212 |   |   | (212 | ) |
| Leasehold                    interests      |   |                                    | **1,930** |             |   | **(1,930** | **)** |   | 1,930 |   |   | (1,930 | ) |
|                                        |   | **$**                                   | **2,494** |             | **$**  | **(2,382** | **)** | $ | 2,347 |   | $ | (2,347 | ) |
| Discontinued                    operations: |   |                                    |      |             |   |   |   |   |   |   |   |   |   |
| Trademarks                                  |   | **$**                                   | **-**     |             | **$**  | **-** |   | $ | 2,019 |   | $ | (1,962 | ) |
| Non-compete                    agreements   |   |                                    | **-**     |             |   | **-** |   |   | 2,000 |   |   | (1,880 | ) |
|                                        |   | **$**                                   | **-**     |             | **$**  | **-** |   | $ | 4,019 |   | $ | (3,842 | ) |

**NOTE      15 - COMMITMENTS AND CONTINGENCIES**

*Table            of Contents*

----

**NOTE      16 - EMPLOYEE BENEFIT PLANS**

*Table            of Contents*

----

**PENSION      BENEFITS**

|                                                            |   | **U.S.                  Pension Benefits** |        | **Non-U.S.                  Pension Benefits** |   |
|-----------------------------------------------------------------|--------|--------------------------------------------|-------------|------------------------------------------------|--------|
| **(In                  thousands)**                             |   |                                       |        |                                           |   |   |   |   |   |
|                                                            |   | **2006**                                   |        | 2005                                           |   | **2006** |   | 2005 |   |
| **Change                  in Benefit Obligation**               |   |                                       |        |                                           |   |   |   |   |   |
| Projected                  benefit obligation-beginning of year |   | **$**                                      | **184,649** |                                           | $      | 174,972 |   | **$** | **46,363** |   | $ | 41,450 |   |
| Service                  cost                                   |   |                                       | **3,255**   |                                           |   | 3,122 |   |   | **1,101** |   |   | 1,334 |   |
| Interest                  cost                                  |   |                                       | **10,193**  |                                           |   | 10,076 |   |   | **1,784** |   |   | 1,850 |   |
| Participant                  contributions                      |   |                                       | **-**       |                                           |   | - |   |   | **295** |   |   | 428 |   |
| Amendments                                                      |   |                                       | **208**     |                                           |   | - |   |   | **(333** | **)** |   | - |   |
| Curtailment                                                     |   |                                       | **(1,997**  | **)**                                          |   | - |   |   | **(4,156** | **)** |   | - |   |
| Settlements                                                     |   |                                       | **-**       |                                           |   | - |   |   | **(757** | **)** |   | - |   |
| Special                  termination benefit                    |   |                                       | **268**     |                                           |   | - |   |   | **-** |   |   | - |   |
| Actuarial                  loss/(gain)                          |   |                                       | **6,738**   |                                           |   | 7,211 |   |   | **(5,449** | **)** |   | 7,301 |   |
| Foreign                  currency exchange rate changes         |   |                                       | **-**       |                                           |   | - |   |   | **5,261** |   |   | (5,350 | ) |
| Benefit                  payments                               |   |                                       | **(10,907** | **)**                                          |   | (10,733 | ) |   | **(644** | **)** |   | (650 | ) |
| Projected                  benefit obligation-end               |   |                                       |             |                                           |   |  |   |   |  |   |   |  |   |
| of                  year                                        |   | **$**                                      | **192,407** |                                           | $      | 184,648 |   | **$** | **43,465** |   | $ | 46,363 |   |
| **Change                  in Plan Assets**                      |   |                                       |             |                                           |   |  |   |   |  |   |   |  |   |
| Plan                  assets at fair value-beginning of year    |   | **$**                                      | **134,758** |                                           | $      | 131,534 |   | **$** | **27,145** |   | $ | 28,090 |   |
| Actual                  return on plan assets                   |   |                                       | **20,667**  |                                           |   | 10,220 |   |   | **(724** | **)** |   | 1,315 |   |
| Foreign                  currency exchange rate changes         |   |                                       | **-**       |                                           |   | - |   |   | **3,175** |   |   | (3,335 | ) |
| Employer                  contributions                         |   |                                       | **21,620**  |                                           |   | 3,737 |   |   | **887** |   |   | 1,297 |   |
| Participant                  contributions                      |   |                                       | **-**       |                                           |   | - |   |   | **295** |   |   | 428 |   |
| Settlement                                                      |   |                                       | **-**       |                                           |   | - |   |   | **(3,126** | **)** |   | - |   |
| Benefit                  payments                               |   |                                       | **(10,907** | **)**                                          |   | (10,733 | ) |   | **(644** | **)** |   | (650 | ) |
| Plan                  assets at fair value-end of year          |   | **$**                                      | **166,138** |                                           | $      | 134,758 |   | **$** | **27,008** |   | $ | 27,145 |   |
| **Funded                  Status**                              |   |                                       |             |                                           |   |  |   |   |  |   |   |  |   |
| Funded                  status                                  |   | **$**                                      | **(26,268** | **)**                                          | $      | (49,890 | ) | **$** | **(16,457** | **)** | $ | (19,217 | ) |
| Unrecognized                  actuarial loss                    |   |                                       | **44,110**  |                                           |   | 52,261 |   |   | **6,222** |   |   | 10,948 |   |
| Unrecognized                  prior service cost                |   |                                       | **385**     |                                           |   | 331 |   |   | **2,206** |   |   | 5,633 |   |
| Net                  amount recognized                          |   | **$**                                      | **18,227**  |                                           | $      | 2,702 |   | **$** | **(8,029** | **)** | $ | (2,636 | ) |
| **Balance                  Sheet Amounts**                      |   |                                       |             |                                           |   |  |   |   |  |   |   |  |   |
| Accrued                  cost                                   |   | **$**                                      | **(19,218** | **)**                                          | $      | (42,511 | ) | **$** | **(15,880** | **)** | $ | (16,214 | ) |
| Intangible                  asset                               |   |                                       | **386**     |                                           |   | 331 |   |   | **2,206** |   |   | 5,633 |   |
| Accumulated                  other comprehensive                |   |                                       |             |                                           |   |  |   |   |  |   |   |  |   |
| loss,                  pretax                                   |   |                                       | **37,059**  |                                           |   | 44,882 |   |   | **5,645** |   |   | 7,945 |   |
| Net                  amount recognized                          |   | **$**                                      | **18,227**  |                                           | $      | 2,702 |   | **$** | **(8,029** | **)** | $ | (2,636 | ) |

*Table            of Contents*

----

|                              |   | **Year                Ending**  |      | **U.S.                Pension** |   | **Non-U.S.                Pension** |   |
|-----------------------------------|--------|---------------------------------|-----------|---------------------------------|--------|-------------------------------------|--------|
| **(In                thousands)** |   | **November                30,** |      | **Benefits**                    |   | **Benefits**                        |   |
|                              |   |                            | 2007      |                            | **$**  | **12,029**                          |   | **$** | **937** |   |
|                              |   |                            | 2008      |                            |   | **12,461**                          |   |   | **1,055** |   |
|                              |   |                            | 2009      |                            |   | **13,012**                          |   |   | **1,212** |   |
|                              |   |                            | 2010      |                            |   | **13,364**                          |   |   | **1,241** |   |
|                              |   |                            | 2011-2015 |                            |   | **71,932**                          |   |   | **7,817** |   |

|                                            |   | **U.S.                Pension Benefits** |        | **Non-U.S.                Pension Benefits** |   |
|-------------------------------------------------|--------|------------------------------------------|-------------|----------------------------------------------|--------|
| **(In                thousands)**          |   | **2006**                                 |        | 2005                                         |   | 2004 |   | **2006** |   | 2005 |   | 2004 |   |
| Service                cost                     |   | **$**                                    | **3,255**   |                                         | $      | 3,122 |   | $ | 3,171 |   | **$** | **1,101** |   | $ | 1,334 |   | $ | 1,150 |   |
| Interest                cost                    |   |                                     | **10,193**  |                                         |   | 10,076 |   |   | 10,563 |   |   | **1,784** |   |   | 1,850 |   |   | 1,802 |   |
| Expected                return on plan assets   |   |                                     | **(12,210** | **)**                                        |   | (11,203 | ) |   | (10,628 | ) |   | **(1,327** | **)** |   | (1,382 | ) |   | (1,352 | ) |
| Amortization                of unrecognized     |   |                                     |             |                                         |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |
| prior                service cost               |   |                                     | **97**      |                                         |   | 99 |   |   | 565 |   |   | **488** |   |   | 656 |   |   | 640 |   |
| Curtailment                                     |   |                                     | **325**     |                                         |   | - |   |   | 1,916 |   |   | **2,911** |   |   | - |   |   | - |   |
| Settlement                                      |   |                                     | **-**       |                                         |   | - |   |   | 10,901 |   |   | **-** |   |   | - |   |   | - |   |
| Amortization                of unrecognized     |   |                                     |             |                                         |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |
| net                transition obligation        |   |                                     | **-**       |                                         |   | - |   |   | - |   |   | **317** |   |   | 76 |   |   | - |   |
| Amortization                of accumulated loss |   |                                     | **4,434**   |                                         |   | 4,954 |   |   | 5,638 |   |   | **-** |   |   | - |   |   | - |   |
| Net                periodic cost                |   | **$**                                    | **6,094**   |                                         | $      | 7,048 |   | $ | 22,126 |   | **$** | **5,274** |   | $ | 2,534 |   | $ | 2,240 |   |

|                                                     |   | **U.S.                  Pension Benefits** |   | **Non-U.S.                  Pension Benefits** |
|----------------------------------------------------------|--------|--------------------------------------------|--------|------------------------------------------------|
|                                                     |   | **2006**                                   |   | 2005                                           |   | 2004 |   | **2006** |   | 2005 |   | 2004 |
| Weighted-average                  discount rate          |   | **5.95%**                                  |   | 5.60%                                          |   | 5.85% |   | **4.50%** |   | 4.00% |   | 4.75% |
| Rate                  of increase in compensation levels |   | **3.45%**                                  |   | 3.10%                                          |   | 3.35% |   | **2.00%** |   | 2.00% |   | 2.00% |

|                                                              |   | **U.S.                  Pension Benefits** |   | **Non-U.S.                  Pension Benefits** |
|-------------------------------------------------------------------|--------|--------------------------------------------|--------|------------------------------------------------|
|                                                              |   | **2006**                                   |   | 2005                                           |   | 2004 |   | **2006** |   | 2005 |   | 2004 |
| Weighted-average                  discount rate                   |   | **5.60%**                                  |   | 5.85%                                          |   | 6.00% |   | **4.00%** |   | 4.75% |   | 5.50% |
| Expected                  long-term rate of return on plan assets |   | **8.75%**                                  |   | 8.75%                                          |   | 8.75% |   | **5.20%** |   | 5.40% |   | 5.40% |
| Rate                  of increase in compensation levels          |   | **3.10%**                                  |   | 3.35%                                          |   | 3.50% |   | **2.00%** |   | 2.00% |   | 2.50% |

|                                         | **Target** |   | **2006** |   | **2005** |
|----------------------------------------------|------------|--------|----------|--------|----------|
|  Domestic                equities       | 65%        |   | **70%**  |   | 70%      |
|  International                equities  | 10%        |   | **10%**  |   | 9%       |
|  Fixed-income                securities | 25%        |   | **20%**  |   | 21%      |
| Total                                   | 100%       |   | **100%** |   | 100%     |

*Table            of Contents*

----

|                                                    |   | **U.S.                Pension Benefits** |        | **Non-U.S.                Pension Benefits** |   |
|---------------------------------------------------------|--------|------------------------------------------|-------------|----------------------------------------------|--------|
| **(In                thousands)**                  |   | **2006**                                 |        | 2005                                         |   | **2006** |   | 2005 |   |
| Projected                benefit obligation             |   | **$**                                    | **192,407** |                                         | $      | 184,648 |   | **$** | **43,465** |   | $ | 46,363 |   |
| Accumulated                benefit obligation           |   |                                     | **185,356** |                                         |   | 177,270 |   |   | **42,888** |   |   | 43,359 |   |
| Fair                value of plan assets                |   |                                     | **166,138** |                                         |   | 134,758 |   |   | **27,008** |   |   | 27,145 |   |
| (Decrease)                increase in minimum liability |   |                                     |             |                                         |   |  |   |   |  |   |   |  |   |
| included                in other comprehensive income   |   |                                     | **(7,822**  | **)**                                        |   | 3,028 |   |   | **(2,300** | **)** |   | 5,420 |   |

*Table            of Contents*

----

**POST-RETIREMENT      BENEFITS**

|                                                          |   | **U.S.                Postretirement Benefits** |       |
|---------------------------------------------------------------|--------|-------------------------------------------------|------------|
| **(In                thousands)**                        |   | **2006**                                        |       | 2005 |   |
| **Change                in Benefit Obligation**               |   |                                            |       |   |   |
| Projected                benefit obligation-beginning of year |   | **$**                                           | **3,315**  |   | $ | 3,617 |   |
| Service                cost                                   |   |                                            | **78**     |   |   | 118 |   |
| Interest                cost                                  |   |                                            | **179**    |   |   | 204 |   |
| Actuarial                gain                                 |   |                                            | **(167**   | **)** |   | (174 | ) |
| Amendments                                                    |   |                                            | **324**    |   |   | (205 | ) |
| Benefit                payments                               |   |                                            | **(237**   | **)** |   | (245 | ) |
| Projected                benefit obligation-end of year       |   | **$**                                           | **3,492**  |   | $ | 3,315 |   |
| **Change                in Plan Assets**                      |   |                                            |            |   |   |  |   |
| Plan                assets at fair value-beginning of year    |   | **$**                                           | **324**    |   | $ | 349 |   |
| Actual                return on plan assets                   |   |                                            | **106**    |   |   | 1 |   |
| Benefit                payments                               |   |                                            | **(34**    | **)** |   | (26 | ) |
| Plan                assets at fair value-end of year          |   | **$**                                           | **396**    |   | $ | 324 |   |
| **Funded                Status**                              |   |                                            |            |   |   |  |   |
| Funded                status                                  |   | **$**                                           | **(3,096** | **)** | $ | (2,991 | ) |
| Unrecognized                actuarial loss                    |   |                                            | **405**    |   |   | 692 |   |
| Unrecognized                transition obligation             |   |                                            | **321**    |   |   | 367 |   |
| Unrecognized                prior service cost/(benefit)      |   |                                            | **246**    |   |   | (92 | ) |
| Net                amount recognized                          |   | **$**                                           | **(2,124** | **)** | $ | (2,024 | ) |
| **Balance                Sheet Amounts**                      |   |                                            |            |   |   |  |   |
| Accrued                benefit liability                      |   |                                            | **(2,124** | **)** |   | (2,024 | ) |
| Net                amount recognized                          |   | **$**                                           | **(2,124** | **)** | $ | (2,024 | ) |

|                              |   |                              |      | **U.S.                Post-** |   |
|-----------------------------------|--------|-----------------------------------|-----------|-------------------------------|--------|
|                              |   | **Year                Beginning** |      | **Retirement**                |   |
| **(In                thousands)** |   | **December                1,**    |      | **Benefits**                  |   |
|                              |   |                              | 2006      |                          | **$**  | **208** |   |
|                              |   |                              | 2007      |                          |   | **236** |   |
|                              |   |                              | 2008      |                          |   | **222** |   |
|                              |   |                              | 2009      |                          |   | **214** |   |
|                              |   |                              | 2010      |                          |   | **217** |   |
|                              |   |                              | 2011-2015 |                          |   | **1,360** |   |

*Table            of Contents*

----

|                                            |   | **U.S.                Postretirement Benefits** |    |
|-------------------------------------------------|--------|-------------------------------------------------|---------|
| **(In                thousands)**          |   | **2006**                                        |    | 2005 |   | 2004 |   |
| Service                cost                     |   | **$**                                           | **78**  |   | $ | 118 |   | $ | 112 |   |
| Interest                cost                    |   |                                            | **179** |   |   | 204 |   |   | 201 |   |
| Expected                return on plan assets   |   |                                            | **(27** | **)** |   | (31 | ) |   | (30 | ) |
| Amortization                of unrecognized     |   |                                            |         |   |   |  |   |   |  |   |
| prior                service gain               |   |                                            | **(14** | **)** |   | (14 | ) |   | (14 | ) |
| Amortization                of unrecognized     |   |                                            |         |   |   |  |   |   |  |   |
| net                transition obligation        |   |                                            | **46**  |   |   | 71 |   |   | 71 |   |
| Amortization                of accumulated loss |   |                                            | **41**  |   |   | 59 |   |   | 51 |   |
| Net                periodic cost                |   | **$**                                           | **303** |   | $ | 407 |   | $ | 391 |   |

|                                                   |   | **U.S.                Postretirement Benefits** |
|--------------------------------------------------------|--------|-------------------------------------------------|
|                                                   |   | **2006**                                        |   | 2005 |   | 2004 |
| Weighted-average                discount rate          |   | **5.95%**                                       |   | 5.60% |   | 5.85% |
| Rate                of increase in compensation levels |   | **3.45%**                                       |   | 3.10% |   | 3.35% |

|                                                   |   | **U.S.                Postretirement Benefits** |
|--------------------------------------------------------|--------|-------------------------------------------------|
|                                                   |   | **2006**                                        |   | 2005 |   | 2004 |
| Weighted-average                discount rate          |   | **5.60%**                                       |   | 5.85% |   | 6.00% |
| Rate                of increase in compensation levels |   | **3.10%**                                       |   | 3.35% |   | 3.50% |

|                                                                                                              |   | **1%**       |   | **1%**       |   |
|-------------------------------------------------------------------------------------------------------------------|--------|--------------|--------|--------------|--------|
| **(In                  thousands)**                                                                               |   | **Increase** |   | **Decrease** |   |
| Effect                  on total of service and interest cost components of net periodic                  expense |   | $            | 19     |         | $      | (17 | ) |
| Effect                  on post-retirement benefit obligation                                                     |   |         | 173    |         |   | (147 | ) |

*Table            of Contents*

----

**NOTE      17 - CAPITAL STOCK**

**NOTE      18 - SEGMENT INFORMATION**

*Table            of Contents*

----

|                                                                                                        |   | **SEGMENT                  INFORMATION** |        |
|-------------------------------------------------------------------------------------------------------------|--------|------------------------------------------|-------------|
|                                                                                                        |   | **Fiberglass-**                          |        | **Water** |   | **Infrastructure** |   |   |   | **Discontinued** |   |   |   |   |   |
| **(In                  thousands)**                                                                         |   | **Composite                  Pipe**      |        | **Transmission** |   | **Products** |   | **Other** |   | **Operations** |   | **Eliminations** |   | **Total** |   |
| **2006**                                                                                                    |   |                                     |        |   |   |   |   |   |   |   |   |   |   |   |   |
| **Sales**                                                                                                   |   | **$**                                    | **176,721** |   | **$** | **174,986** |   | **$** | **198,177** |   | **$** | **-** |   | **$** | **-** |   | **$** | **(704** | **)** | **$** | **549,180** |   |
| **Income                  from continuing operations**                                                      |   |                                     |             |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |
| **before                  interest, income taxes and equity in earnings of joint                  venture** |   |                                     | **37,804**  |   |   | **7,577** |   |   | **30,607** |   |   | **(26,891** | **)** |   | **-** |   |   | **-** |   |   | **49,097** |   |
| **Equity                  in earnings of joint venture, net of taxes**                                      |   |                                     | **-**       |   |   | **-** |   |   | **-** |   |   | **13,550** |   |   | **-** |   |   | **-** |   |   | **13,550** |   |
| **Income                  from joint ventures - cost method**                                               |   |                                     | **-**       |   |   | **-** |   |   | **-** |   |   | **-** |   |   | **-** |   |   | **-** |   |   | **-** |   |
| **Investments                  in joint ventures**                                                          |   |                                     |             |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |
| **                    Equity method**                                                             |   |                                     | **-**       |   |   | **-** |   |   | **-** |   |   | **14,501** |   |   | **-** |   |   | **-** |   |   | **14,                  501** |   |
| **                    Cost method**                                                               |   |                                     | **3,784**   |   |   | **-** |   |   | **-** |   |   | **-** |   |   | **-** |   |   | **-** |   |   | **3,784** |   |
| **Long-lived                  assets**                                                                      |   |                                     | **31,957**  |   |   | **51,041** |   |   | **48,796** |   |   | **65,874** |   |   | **-** |   |   | **-** |   |   | **197,668** |   |
| **Total                  assets**                                                                           |   |                                     | **206,326** |   |   | **167,463** |   |   | **97,249** |   |   | **271,023** |   |   | **-** |   |   | **(107,397** | **)** |   | **634,664** |   |
| **Capital                  expenditures**                                                                   |   |                                     | **4,558**   |   |   | **16,502** |   |   | **10,659** |   |   | **(236** | **)** |   | **4,036** |   |   | **-** |   |   | **35,519** |   |
| **Depreciation                  and amortization**                                                          |   |                                     | **4,685**   |   |   | **4,000** |   |   | **4,509** |   |   | **609** |   |   | **3,637** |   |   | **-** |   |   | **17,440** |   |
| 2005                                                                                                        |   |                                     |             |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |
| Sales                                                                                                       |   | $                                        | 134,071     |   | $ | 192,731 |   | $ | 168,990 |   | $ | - |   | $ | - |   | $ | (1,025 | ) | $ | 494,767 |   |
| Income                  from continuing operations                                                          |   |                                     |             |   |   |  |   |   |  |   |   |   |   |   |  |   |   |  |   |   |  |   |
| before                  interest, income taxes and equity in earnings of joint                  venture     |   |                                     | 24,482      |   |   | 25,845 |   |   | 22,127 |   |   | (35,390 | ) |   | - |   |   | - |   |   | 37,064 |   |
| Equity                  in earnings of joint venture, net of taxes                                          |   |                                     | -           |   |   | - |   |   | - |   |   | 9,005 |   |   | - |   |   | - |   |   | 9,005 |   |
| Income                  from joint ventures - cost method                                                   |   |                                     | 1,300       |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | 1,300 |   |
| Investments                  in joint ventures                                                              |   |                                     |             |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |
|                     Equity method                                                                 |   |                                     | -           |   |   | - |   |   | - |   |   | 13,777 |   |   | - |   |   | - |   |   | 13,777 |   |
|                     Cost method                                                                   |   |                                     | 3,784       |   |   | - |   |   | - |   |   | - |   |   | 2,138 |   |   | - |   |   | 5,922 |   |
| Long-lived                  assets                                                                          |   |                                     | 30,199      |   |   | 38,520 |   |   | 43,553 |   |   | 39,048 |   |   | 40,685 |   |   | - |   |   | 192,005 |   |
| Total                  assets                                                                               |   |                                     | 176,713     |   |   | 132,803 |   |   | 83,053 |   |   | 162,979 |   |   | 170,784 |   |   | (148,296 | ) |   | 578,036 |   |
| Capital                  expenditures                                                                       |   |                                     | 8,919       |   |   | 5,567 |   |   | 4,607 |   |   | 1,170 |   |   | 5,108 |   |   | - |   |   | 25,371 |   |
| Depreciation                  and amortization                                                              |   |                                     | 4,070       |   |   | 3,910 |   |   | 4,444 |   |   | 710 |   |   | 5,790 |   |   | - |   |   | 18,924 |   |
| 2004                                                                                                        |   |                                     |             |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |
| Sales                                                                                                       |   | $                                        | 116,289     |   | $ | 154,231 |   | $ | 136,312 |   | $ | - |   | $ | - |   | $ | (602 | ) | $ | 406,230 |   |
| Income                  from continuing operations                                                          |   |                                     |             |   |   |  |   |   |  |   |   |   |   |   |  |   |   |  |   |   |  |   |
| before                  interest, income taxes and equity in earnings of joint                  venture     |   |                                     | 21,429      |   |   | 13,458 |   |   | 14,519 |   |   | (38,735 | ) |   | - |   |   | - |   |   | 10,671 |   |
| Equity                  in earnings of joint venture, net of taxes                                          |   |                                     | -           |   |   | - |   |   | - |   |   | 10,791 |   |   | - |   |   | - |   |   | 10,791 |   |
| Income                  from joint ventures - cost method                                                   |   |                                     | -           |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |
| Investments                  in joint ventures                                                              |   |                                     |             |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |
|                     Equity method                                                                 |   |                                     | -           |   |   | - |   |   | - |   |   | 16,042 |   |   | - |   |   | - |   |   | 16,042 |   |
|                     Cost method                                                                   |   |                                     | 3,784       |   |   | - |   |   | - |   |   | - |   |   | 2,138 |   |   | - |   |   | 5,922 |   |
| Long-lived                  assets                                                                          |   |                                     | 26,353      |   |   | 37,970 |   |   | 40,564 |   |   | 41,481 |   |   | 46,166 |   |   | - |   |   | 192,534 |   |
| Total                  assets                                                                               |   |                                     | 155,390     |   |   | 120,921 |   |   | 74,623 |   |   | 198,797 |   |   | 173,807 |   |   | (179,601 | ) |   | 543,937 |   |
| Capital                  expenditures                                                                       |   |                                     | 4,777       |   |   | 2,693 |   |   | 5,045 |   |   | 506 |   |   | 5,291 |   |   | - |   |   | 18,312 |   |
| Depreciation                  and amortization                                                              |   |                                     | 4,115       |   |   | 3,977 |   |   | 4,507 |   |   | 701 |   |   | 5,597 |   |   | - |   |   | 18,897 |   |

*Table              of Contents*

----

|                                           |   | **GEOGRAPHIC                AREAS** |        |
|------------------------------------------------|--------|-------------------------------------|-------------|
|                                           |   | **United**                          |        |   |   |   |   |   |   | **Discontinued** |   |   |   |   |   |
| **(In                thousands)**              |   | **States**                          |        | **Europe** |   | **Asia** |   | **Other** |   | **Operations** |   | **Eliminations** |   | **Total** |   |
| **2006**                                       |   |                                |        |   |   |   |   |   |   |   |   |   |   |   |   |
| **Sales                to external customers** |   | **$**                               | **432,670** |   | **$** | **26,545** |   | **$** | **80,726** |   | **$** | **9,239** |   | **$** | **-** |   | **$** | **-** |   | **$** | **549,180** |   |
| **Long-lived                assets**           |   |                                | **154,882** |   |   | **15,229** |   |   | **20,866** |   |   | **6,691** |   |   | **-** |   |   | **-** |   |   | **197,668** |   |
| **Total                assets**                |   |                                | **538,254** |   |   | **50,785** |   |   | **139,514** |   |   | **13,508** |   |   | **-** |   |   | **(107,397** | **)** |   | **634,664** |   |
| 2005                                           |   |                                |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Sales                to external customers     |   | $                                   | 406,939     |   | $ | 20,157 |   | $ | 62,155 |   | $ | 5,516 |   | $ | - |   | $ | - |   | $ | 494,767 |   |
| Long-lived                assets               |   |                                | 125,310     |   |   | 6,046 |   |   | 19,202 |   |   | 762 |   |   | 40,685 |   |   | - |   |   | 192,005 |   |
| Total                assets                    |   |                                | 419,103     |   |   | 20,907 |   |   | 110,602 |   |   | 4,936 |   |   | 170,784 |   |   | (148,296 | ) |   | 578,036 |   |
| 2004                                           |   |                                |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Sales                to external customers     |   | $                                   | 325,425     |   | $ | 21,694 |   | $ | 55,124 |   | $ | 3,987 |   | $ | - |   | $ | - |   | $ | 406,230 |   |
| Long-lived                assets               |   |                                | 125,065     |   |   | 7,543 |   |   | 13,133 |   |   | 627 |   |   | 46,166 |   |   | - |   |   | 192,534 |   |
| Total                assets                    |   |                                | 423,829     |   |   | 26,876 |   |   | 94,433 |   |   | 4,593 |   |   | 173,807 |   |   | (179,601 | ) |   | 543,937 |   |

*Table            of Contents*

----

**SUPPLEMENTARY      DATA - QUARTERLY FINANCIAL DATA (UNAUDITED)**

|                                                                 |   | **First**   |        | **Second**  |   | **Third**   |   | **Fourth**  |        |
|----------------------------------------------------------------------|--------|-------------|-------------|-------------|--------|-------------|--------|-------------|-------------|
| **(In                thousands except per share data)**              |   | **Quarter** |        | **Quarter** |   | **Quarter** |   | **Quarter** |        |
| **2006**                                                             |   |        |        |        |   |        |   |        |        |
| **Sales**                                                            |   | **$**       | **125,972** |        | **$**  | **132,657** |   | **$**       | **139,941** |   | **$** | **150,610** |   |
| **Gross                profit**                                      |   |        | **28,582**  |        |   | **34,771**  |   |        | **36,082**  |   |   | **32,954** |   |
| **Income                from continuing operations**                 |   |        | **3,962**   |        |   | **16,998**  |   |        | **16,982**  |   |   | **12,118** |   |
| **Income                from discontinued operations, net of taxes** |   |        | **(351**    | **)**       |   | **1,704**   |   |        | **997**     |   |   | **(210** | **)** |
| **Net                income**                                        |   |        | **3,611**   |        |   | **18,702**  |   |        | **17,979**  |   |   | **11,908** |   |
| **Diluted                net income/(loss) per share:**              |   |        |        |        |   |        |   |        |        |   |   |   |   |
| **Income                from continuing operations**                 |   |        | **.45**     |        |   | **1.92**    |   |        | **1.91**    |   |   | **1.35** |   |
| **Income                from discontinued operations, net of taxes** |   |        | **(.04**    | **)**       |   | **.19**     |   |        | **.11**     |   |   | **(.02** | **)** |
| **Net                income**                                        |   |        | **.41**     |        |   | **2.11**    |   |        | **2.02**    |   |   | **1.33** |   |
| **Stock                price per share-high**                        |   |        | **61.81**   |        |   | **76.04**   |   |        | **70.70**   |   |   | **80.01** |   |
| **Stock                price per share-low**                         |   |        | **44.66**   |        |   | **54.54**   |   |        | **50.63**   |   |   | **64.03** |   |
| **Dividends                per share**                               |   |        | **.20**     |        |   | **.20**     |   |        | **.20**     |   |   | **.20** |   |
|                                                                 |   |        |        |        |   |        |   |        |        |   |   |   |   |
| 2005                                                                 |   |        |             |        |   |             |   |        |             |   |   |  |   |
| Sales                                                                |   | $           | 96,867      |        | $      | 122,138     |   | $           | 136,555     |   | $ | 139,207 |   |
| Gross                profit                                          |   |        | 22,946      |        |   | 30,474      |   |        | 37,542      |   |   | 34,248 |   |
| Income                from continuing operations                     |   |        | 2,026       |        |   | 4,843       |   |        | 11,588      |   |   | 11,052 |   |
| Income                from discontinued operations, net of taxes     |   |        | (1,546      | )           |   | 428         |   |        | 1,940       |   |   | 2,279 |   |
| Net                income/(loss)                                     |   |        | 480         |        |   | 5,271       |   |        | 13,528      |   |   | 13,331 |   |
| Diluted                net income/(loss) per share:                  |   |        |        |        |   |        |   |        |        |   |   |   |   |
| Income                from continuing operations                     |   |        | .24         |        |   | .57         |   |        | 1.35        |   |   | 1.27 |   |
| Income                from discontinued operations, net of taxes     |   |        | (.18        | )           |   | .05         |   |        | .23         |   |   | .26 |   |
| Net                income/(loss)                                     |   |        | .06         |        |   | .62         |   |        | 1.58        |   |   | 1.53 |   |
| Stock                price per share-high                            |   |        | 38.85       |        |   | 36.96       |   |        | 39.11       |   |   | 46.61 |   |
| Stock                price per share-low                             |   |        | 31.96       |        |   | 31.76       |   |        | 33.00       |   |   | 38.91 |   |
| Dividends                per share                                   |   |        | .20         |        |   | .20         |   |        | .20         |   |   | .20 |   |

*Table            of Contents*

----

**REPORT      OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

**To      the Board of Directors and Stockholders of Ameron International      Corporation**

**Consolidated      financial statements and financial statement schedule**

*Share-Based      Payment,*

**Internal      control over financial reporting**

*Internal      Control - Integrated Framework*
*Internal      Control - Integrated Framework*

*Table            of Contents*

----

**ITEM9      - CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON      ACCOUNTING AND FINANCIAL DISCLOSURE**

**ITEM9A      - CONTROLS AND PROCEDURES**

**Evaluation      of Disclosure Controls and Procedures.**

**Management's      Report on Internal Control Over Financial Reporting.**
*Internal      Control - Integrated Framework*
*Internal      Control - Integrated Framework,*

**ITEM9B      - OTHER INFORMATION**

**PARTIII**

**ITEM10      - DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE      GOVERNANCE**

*Table            of Contents*

----

**ITEM11      - EXECUTIVE COMPENSATION**

**ITEM12      - SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND      MANAGEMENT AND RELATED STOCKHOLDER MATTERS**

**ITEM13      - CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND      DIRECTOR INDEPENDENCE**

**ITEM14      - PRINCIPAL ACCOUNTING FEES AND      SERVICES**

*Table            of Contents*

----

**PARTIV**

**ITEM15      - EXHIBITS, FINANCIAL STATEMENT      SCHEDULES**

| Consolidated                Statements of Income for the years ended November 30, 2006, 2005                and                2004.               |
|----------------------------------------------------------------------------------------------------------------------------------------------------|
| Consolidated                Balance Sheets as of November 30, 2006 and 2005.                                                                       |
| Consolidated                Statements of Stockholders' Equity for the years ended November 30,                2006,                2005 and 2004. |
| Consolidated                Statements of Comprehensive Income for the years ended November 30,                2006,                2005 and 2004. |
| Consolidated                Statements of Cash Flows for the years ended November 30, 2006, 2005                and                2004.           |
| Notes                to Consolidated Financial Statements                                                                                          |
| Report                of Independent Registered Public Accounting                Firm                                                              |

| **SCHEDULE** | **SCHEDULES                OF AMERON**                                       |
|--------------|------------------------------------------------------------------------------|
| II           | Valuation                and Qualifying Accounts and                Reserves |

| **EXHIBIT** | **EXHIBITS                OF AMERON**                                                                                                                                                                                                                              |
|-------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3(i)        | Certificate                of Incorporation (1)                                                                                                                                                                                                                    |
| 3(ii)       | Bylaws                (2)                                                                                                                                                                                                                                          |
| 4           | Instruments                Defining the Rights of Security                Holders, Including Indentures                                                                                                                                                            |
| 10          | Material                Contracts                                                                                                                                                                                                                                  |
| 21          | Subsidiaries                of the                Registrant                                                                                                                                                                                                       |
| 23.1        | Consent                of PricewaterhouseCoopers                LLP                                                                                                                                                                                                |
| 23.2        | Consent                of PricewaterhouseCoopers LLP                regarding TAMCO                                                                                                                                                                                |
| 23.3        | Consent                of Deloitte & Touche LLP                regarding TAMCO                                                                                                                                                                                 |
| 31.1        | Section 302                Certification of Chief                Executive Officer                                                                                                                                                                            |
| 31.2        | Section 302                Certification of Chief                Financial Officer                                                                                                                                                                            |
| 32          | Section 906                Certification of Chief                Executive Officer and Chief Financial Officer                                                                                                                                                |
| 99.1        | TAMCO                Financial Statements as of November 30,                2006, and for each of the three years in the period ended November                30,                2006 and Reports of Independent Registered Public Accounting                Firms |

*Table            of Contents*

----

**SCHEDULE II      - VALUATION AND QUALIFYING ACCOUNTS AND RESERVES**

**FOR      THE YEAR ENDED NOVEMBER 30, 2006**

|                                           |   |                          |   | **Additions**                 |   | **Deductions,** |   |                            |   |                         |   |
|------------------------------------------------|--------|-------------------------------|--------|-------------------------------|--------|-----------------|--------|---------------------------------|--------|------------------------------|--------|
|                                           |   | **Balance                at** |   | **Charged                to** |   | **Payments**    |   |                            |   | **Balance**                  |   |
|                                           |   | **Beginning**                 |   | **Costs                and**  |   | **And**         |   | **Reclassifications**           |   | **at                End of** |   |
| **Classification**                             |   | **of                Years**   |   | **Expenses**                  |   | **Write-offs**  |   | **and                Others *** |   | **Years**                    |   |
| DEDUCTED                FROM ASSET ACCOUNTS    |   |                          |   |                          |   |            |   |                            |   |                         |   |
|                                           |   |                          |   |                          |   |            |   |                            |   |                         |   |
| Allowance                for doubtful accounts |   | $                             | 7,693  |                          | $      | 1,351           |   | $                               | (1,339 | )                            | $      | (2,793 | ) | $ | 4,912 |   |

**FOR      THE YEAR ENDED NOVEMBER 30, 2005**

|                                           |   |                          |   | **Additions**                 |   | **Deductions,** |   |                          |   |                         |   |
|------------------------------------------------|--------|-------------------------------|--------|-------------------------------|--------|-----------------|--------|-------------------------------|--------|------------------------------|--------|
|                                           |   | **Balance                at** |   | **Charged                to** |   | **Payments**    |   |                          |   | **Balance**                  |   |
|                                           |   | **Beginning**                 |   | **Costs                and**  |   | **And**         |   | **Reclassifications**         |   | **at                End of** |   |
| **Classification**                             |   | **of                Years**   |   | **Expenses**                  |   | **Write-offs**  |   | **and                Others** |   | **Years**                    |   |
| DEDUCTED                FROM ASSET ACCOUNTS    |   |                          |   |                          |   |            |   |                          |   |                         |   |
|                                           |   |                          |   |                          |   |            |   |                          |   |                         |   |
| Allowance                for doubtful accounts |   | $                             | 7,984  |                          | $      | 2,502           |   | $                             | (2,362 | )                            | $      | (431 | ) | $ | 7,693 |   |

**FOR      THE YEAR ENDED NOVEMBER 30, 2004**

|                                           |   |                          |   | **Additions**                 |   | **Deductions,** |   |                          |   |                         |   |
|------------------------------------------------|--------|-------------------------------|--------|-------------------------------|--------|-----------------|--------|-------------------------------|--------|------------------------------|--------|
|                                           |   | **Balance                at** |   | **Charged                to** |   | **Payments**    |   |                          |   | **Balance**                  |   |
|                                           |   | **Beginning**                 |   | **Costs                and**  |   | **And**         |   | **Reclassifications**         |   | **at                End of** |   |
| **Classification**                             |   | **of                Years**   |   | **Expenses**                  |   | **Write-offs**  |   | **and                Others** |   | **Years**                    |   |
| DEDUCTED                FROM ASSET ACCOUNTS    |   |                          |   |                          |   |            |   |                          |   |                         |   |
|                                           |   |                          |   |                          |   |            |   |                          |   |                         |   |
| Allowance                for doubtful accounts |   | $                             | 8,168  |                          | $      | 1,991           |   | $                             | (3,032 | )                            | $      | 857 |   | $ | 7,984 |   |

*Table            of Contents*

----

**AMERON      INTERNATIONAL CORPORATION**

| *By:*  | *   /s/                Javier Solis*                                 |   |
|--------|-------------------------------------------------------------------------------------|--------|
|   | *Javier                Solis, Senior Vice President &                Secretary* |

|                          |                                     |   |                                                                                           |
|-------------------------------|------------------------------------------|--------|------------------------------------------------------------------------------------------------|
| *Date:                2-8-07* | */s/                James S. Marlen*     |   | *Director,                Chairman of the Board,*                                              |
|                          | *James                S. Marlen*         |   | *President                and Chief Executive*                                                 |
|                          |                                     |   | *Officer                (Principal Executive Officer)*                                         |
|                          |                                     |   |                                                                                           |
| *Date:                2-8-07* | */s/                James R. McLaughlin* |   | *Senior                Vice President, Chief Financial Officer &                Treasurer* |
|                          | *James                R. McLaughlin*     |   | *(Principal                Financial & Accounting Officer)*                                |
|                          |                                     |   |                                                                                           |
| *Date:                2-8-07* | */s/                Daniel J. Emmett*    |   | *Vice                President, Controller*                                                    |
|                          | *Daniel                J. Emmett*        |   |                                                                                           |
|                          |                                     |   |                                                                                           |
| *Date:                2-8-07* | */s/David                Davenport*      |   | *Director*                                                                                     |
|                          | *David                Davenport*         |   |                                                                                           |
|                          |                                     |   |                                                                                           |
| *Date:                2-8-07* | */s/Michael                Hagan*        |   | *Director*                                                                                     |
|                          | *J.                Michael Hagan*        |   |                                                                                           |
|                          |                                     |   |                                                                                           |
| *Date:                2-8-07* | */s/Terry                Haines*         |   | *Director*                                                                                     |
|                          | *Terry                L. Haines*         |   |                                                                                           |
|                          |                                     |   |                                                                                           |
| *Date:                2-8-07* | */s/William                D. Horsfall*  |   | *Director*                                                                                     |
|                          | *William                D. Horsfall*     |   |                                                                                           |
|                          |                                     |   |                                                                                           |
| *Date:                2-8-07* | */s/John                Peppercorn*      |   | *Director*                                                                                     |
|                          | *John                E. Peppercorn*      |   |                                                                                           |
|                          |                                     |   |                                                                                           |
| *Date:                2-8-07* | */s/Dennis                Poulsen*       |   | *Director*                                                                                     |
|                          | *Dennis                C. Poulsen*       |   |                                                                                           |