----

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|                                                             | Page(s)    |
|------------------------------------------------------------------|------------|
| Report      of Independent Auditors                              | 1          |
| Financial      Statements                                        |       |
| Balance      Sheets                                              | 2          |
| Statements      of Income (Loss) and Comprehensive Income (Loss) | 3          |
| Statements      of Shareholders’ Equity                    | 4          |
| Statements      of Cash Flows                                    | 5          |
| Notes      to Financial Statements                               | 6–20 |

----

----

| (in thousands, except share      amounts)                           |   | 2009   |    |   | 2008   |   |
|---------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|
|                                                                |   |   |    |   |   |   |
| Assets                                                              |   |   |    |   |   |   |
| Current      assets                                                 |   |   |    |   |   |   |
| Cash                                                                |   | $      | 1,421   |   |   | $      | 3 |   |
| Restricted      cash                                                |   |   | 2,857   |   |   |   | - |   |
| Trade      and other receivables, net of allowances of $430 and $80 |   |   |    |   |   |   |   |   |
|  in      2009 and 2008, respectively                           |   |   | 3,815   |   |   |   | 4,283 |   |
| Due      from shareholders                                          |   |   | 38      |   |   |   | 46 |   |
| Inventories                                                         |   |   | 29,909  |   |   |   | 46,311 |   |
| Deferred      tax assets (Note 7)                                   |   |   | 935     |   |   |   | 2,392 |   |
| Income      tax refund receivable (Note 7)                          |   |   | 7,975   |   |   |   | 10,062 |   |
| Prepaid      expenses and tooling                                   |   |   | 908     |   |   |   | 1,071 |   |
| Total      current assets                                           |   |   | 47,858  |   |   |   | 64,168 |   |
| Property,      plant and equipment                                  |   |   |    |   |   |   |   |   |
| Land                                                                |   |   | 1,191   |   |   |   | 1,191 |   |
| Processing      facilities and equipment                            |   |   | 104,770 |   |   |   | 105,570 |   |
| Construction      in process                                        |   |   | 14,497  |   |   |   | 11,227 |   |
| Total      property, plant and equipment                            |   |   | 120,458 |   |   |   | 117,988 |   |
| Less:  Accumulated      depreciation and amortization     |   |   | (77,851 | )      |   |   | (77,365 | ) |
| Property,      plant and equipment, net                             |   |   | 42,607  |   |   |   | 40,623 |   |
| Deferred      tax assets (Note 7)                                   |   |   | 1,104   |   |   |   | - |   |
| Other      assets (Note 2)                                          |   |   | 7,299   |   |   |   | 7,355 |   |
| Total      assets                                                   |   | $      | 98,868  |   |   | $      | 112,146 |   |
| Liabilities      and Shareholders' Equity                           |   |   |    |   |   |   |   |   |
| Current      liabilities                                            |   |   |    |   |   |   |   |   |
| Borrowings      under line of credit (Note 5)                       |   | $      | -       |   |   | $      | 47,200 |   |
| Trade      payables                                                 |   |   | 5,590   |   |   |   | 4,256 |   |
| Other      accrued liabilities                                      |   |   | 1,403   |   |   |   | 7,235 |   |
| Total      current liabilities                                      |   |   | 6,993   |   |   |   | 58,691 |   |
| Long-term      liabilities                                          |   |   |    |   |   |   |   |   |
| Borrowings      from shareholders (Note 5)                          |   |   | 30,000  |   |   |   | - |   |
| Other      long-term liabilities (Notes 2 and 6)                    |   |   | 15,155  |   |   |   | 4,608 |   |
| Deferred      tax liabilities (Note 7)                              |   |   | -       |   |   |   | 4,247 |   |
| Total      long-term liabilities                                    |   |   | 45,155  |   |   |   | 8,855 |   |
| Commitments      and contingencies (Note 8)                         |   |   |    |   |   |   |   |   |
| Shareholders'      equity                                           |   |   |    |   |   |   |   |   |
| Common      stock, $100 par value; 220,000 shares authorized,       |   |   |    |   |   |   |   |   |
|  issued      and outstanding                                   |   |   | 39,482  |   |   |   | 19,482 |   |
| Retained      earnings                                              |   |   | 16,935  |   |   |   | 29,167 |   |
| Accumulated      other comprehensive loss                           |   |   | (9,697  | )      |   |   | (4,049 | ) |
| Total      shareholders' equity                                     |   |   | 46,720  |   |   |   | 44,600 |   |
| Total      liabilities and shareholders' equity                     |   | $      | 98,868  |   |   | $      | 112,146 |   |

----

| (in thousands)                                            |   | 2009   |    |   | 2008   |   |    | 2007   |   |
|-----------------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|
|                                                      |   |   |    |   |   |   |    |   |   |
| Revenue                                                   |   |   |    |   |   |   |    |   |   |
| Gross      sales                                          |   | $      | 86,390  |   |   | $      | 368,605 |   |   | $ | 270,336 |   |
| Cash      discounts allowed                               |   |   | (650    | )      |   |   | (2,648  | )      |   |   | (2,128 | ) |
| Total      revenue                                        |   |   | 85,740  |   |   |   | 365,957 |   |   |   | 268,208 |   |
| Cost      of sales                                        |   |   | 96,539  |   |   |   | 300,493 |   |   |   | 196,392 |   |
| Lower      of cost or market adjustment                   |   |   | 51      |   |   |   | 9,842   |   |   |   | - |   |
| Loading      and freight                                  |   |   | 1,890   |   |   |   | 5,695   |   |   |   | 5,322 |   |
| Total      costs of sales                                 |   |   | 98,480  |   |   |   | 316,030 |   |   |   | 201,714 |   |
| Gross      (loss) profit                                  |   |   | (12,740 | )      |   |   | 49,927  |   |   |   | 66,494 |   |
| General      and administrative expenses                  |   |   | 7,529   |   |   |   | 8,913   |   |   |   | 9,131 |   |
| (Loss)      income from operations                        |   |   | (20,269 | )      |   |   | 41,014  |   |   |   | 57,363 |   |
| Other      expenses (income), net                         |   |   |    |   |   |   |    |   |   |   |   |   |
| Interest                                                  |   |   | 933     |   |   |   | 1,713   |   |   |   | 1,541 |   |
| Other                                                     |   |   | (1,091  | )      |   |   | 1,824   |   |   |   | (785 | ) |
| Total      other expenses                                 |   |   | (158    | )      |   |   | 3,537   |   |   |   | 756 |   |
| (Loss)      income before income taxes                    |   |   | (20,111 | )      |   |   | 37,477  |   |   |   | 56,607 |   |
| Benefit      from (provision for) income taxes (Note 7)   |   |   | 8,156   |   |   |   | (14,600 | )      |   |   | (22,570 | ) |
| Net      (loss) income                                    |   |   | (11,955 | )      |   |   | 22,877  |   |   |   | 34,037 |   |
| Other      comprehensive income (loss)                    |   |   |    |   |   |   |    |   |   |   |   |   |
| Defined      benefit pension plans                        |   |   |    |   |   |   |    |   |   |   |   |   |
| Minimum      pension liability adjustment                 |   |   | -       |   |   |   | -       |   |   |   | 1,856 |   |
| Net      pension loss during period                       |   |   | (9,691  | )      |   |   | (2,812  | )      |   |   | - |   |
| Amortization      of prior service costs included in net  |   |   |    |   |   |   |    |   |   |   |   |   |
|  periodic      pension cost                          |   |   | 5       |   |   |   | 6       |   |   |   | 6 |   |
| Total      defined benefit pension plans                  |   |   | (9,686  | )      |   |   | (2,806  | )      |   |   | 1,862 |   |
| Unrealized      gain (loss) on investments                |   |   | 19      |   |   |   | (32     | )      |   |   | - |   |
| Total      other comprehensive (loss) income, before tax  |   |   | (9,667  | )      |   |   | (2,838  | )      |   |   | 1,862 |   |
| Benefit      from (provision for) income taxes related to |   |   |    |   |   |   |    |   |   |   |   |   |
|  other      comprehensive income                     |   |   | 4,019   |   |   |   | 1,081   |   |   |   | (904 | ) |
| Total      other comprehensive (loss) income, net of tax  |   |   | (5,648  | )      |   |   | (1,757  | )      |   |   | 958 |   |
| Comprehensive      (loss) income                          |   | $      | (17,603 | )      |   | $      | 21,120  |   |   | $ | 34,995 |   |

----

|                                                |   |              |    |   |     |   |   |            |   |   | Accumulated      Other   |   |   |   |   |
|-----------------------------------------------------|--------|-------------------|---------|--------|----------|--------|--------|-----------------|--------|--------|--------------------------|--------|--------|--------|--------|
|                                                |   |              |    |   |     |   |   |            |   |   | Comprehensive      Loss, |   |   |   |   |
|                                                |   | Common      Stock |    |   | Retained |   |   | Net      of Tax |   |   |                     |   |
| (in      thousands, except shares)                  |   | Shares            |    |   | Amount   |   |   | Earnings        |   |   | Pension                  |   |   | Other  |   |   | Total |   |
|                                                |   |              |    |   |     |   |   |            |   |   |                     |   |   |   |   |   |   |   |
| Balances      at November 30, 2006                  |   |              | 220,000 |   |     | $      | 19,482 |            |   | $      | 27,451                   |   |   | $      | (2,192 | ) |   | $ | - |   |   | $ | 44,741 |   |
| Net      income                                     |   |              | -       |   |     |   | -      |            |   |   | 34,037                   |   |   |   | -      |   |   |   |   |   |   |   | 34,037 |   |
| Minimum      pension liability adjustment           |   |              | -       |   |     |   | -      |            |   |   | -                        |   |   |   | 958    |   |   |   | - |   |   |   | 958 |   |
| Adoption      of new accounting for defined benefit |   |              |    |   |     |   |   |            |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| pension      plans                                  |   |              | -       |   |     |   | -      |            |   |   | -                        |   |   |   | (1,058 | ) |   |   | - |   |   |   | (1,058 | ) |
| Dividends      to shareholders                      |   |              | -       |   |     |   | -      |            |   |   | (33,583                  | )      |   |   | -      |   |   |   | - |   |   |   | (33,583 | ) |
| Balances      at November 30, 2007                  |   |              | 220,000 |   |     |   | 19,482 |            |   |   | 27,905                   |   |   |   | (2,292 | ) |   |   | - |   |   |   | 45,095 |   |
| Net      income                                     |   |              | -       |   |     |   | -      |            |   |   | 22,877                   |   |   |   | -      |   |   |   |   |   |   |   | 22,877 |   |
| Net      pension loss during period                 |   |              | -       |   |     |   | -      |            |   |   | -                        |   |   |   | (1,738 | ) |   |   | - |   |   |   | (1,738 | ) |
| Unrealized      loss on investments                 |   |              | -       |   |     |   | -      |            |   |   | -                        |   |   |   | -      |   |   |   | (19 | ) |   |   | (19 | ) |
| Dividends      to shareholders                      |   |              | -       |   |     |   | -      |            |   |   | (21,615                  | )      |   |   | -      |   |   |   | - |   |   |   | (21,615 | ) |
| Balances      at November 30, 2008                  |   |              | 220,000 |   |     |   | 19,482 |            |   |   | 29,167                   |   |   |   | (4,030 | ) |   |   | (19 | ) |   |   | 44,600 |   |
| Net      loss                                       |   |              | -       |   |     |   | -      |            |   |   | (11,955                  | )      |   |   | -      |   |   |   |   |   |   |   | (11,955 | ) |
| Net      pension loss during period                 |   |              |    |   |     |   |   |            |   |   |                     |   |   |   | (5,660 | ) |   |   |   |   |   |   | (5,660 | ) |
| Adoption      of new measurement date for defined   |   |              |    |   |     |   |   |            |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| benefit      pension plans                          |   |              | -       |   |     |   | -      |            |   |   | (277                     | )      |   |   | -      |   |   |   | - |   |   |   | (277 | ) |
| Unrealized      gain on investments                 |   |              | -       |   |     |   | -      |            |   |   | -                        |   |   |   | -      |   |   |   | 12 |   |   |   | 12 |   |
| Shareholder      contribution (Note 5)              |   |              | -       |   |     |   | 20,000 |            |   |   | -                        |   |   |   | -      |   |   |   | - |   |   |   | 20,000 |   |
| Balances      at November 30, 2009                  |   |              | 220,000 |   |     | $      | 39,482 |            |   | $      | 16,935                   |   |   | $      | (9,690 | ) |   | $ | (7 | ) |   | $ | 46,720 |   |

----

| (in thousands)                                                   |   | 2009   |    |   | 2008   |   |    | 2007   |   |
|------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|
|                                                             |   |   |    |   |   |   |    |   |   |
| Cash      flows from operating activities                        |   |   |    |   |   |   |    |   |   |
| Net      (loss) income                                           |   | $      | (11,955 | )      |   | $      | 22,877  |   |   | $ | 34,037 |   |
| Adjustments      to reconcile net income to net cash provided by |   |   |    |   |   |   |    |   |   |   |   |   |
|  operating      activities                                  |   |   |    |   |   |   |    |   |   |   |   |   |
| Depreciation      and amortization                               |   |   | 5,933   |   |   |   | 5,378   |   |   |   | 5,169 |   |
| Change      in bad debt provision                                |   |   | 350     |   |   |   | -       |   |   |   | - |   |
| Lower      of cost or market adjustment                          |   |   | 51      |   |   |   | 9,842   |   |   |   | - |   |
| Deferred      income taxes                                       |   |   | 125     |   |   |   | 2,671   |   |   |   | 397 |   |
| Loss      (profit) on disposal of property, plant and            |   |   |    |   |   |   |    |   |   |   |   |   |
|  equipment                                                  |   |   | 225     |   |   |   | 49      |   |   |   | (1 | ) |
| Changes      in operating assets and liabilities                 |   |   |    |   |   |   |    |   |   |   |   |   |
| Receivables                                                      |   |   | 126     |   |   |   | 5,835   |   |   |   | 3,246 |   |
| Income      tax receivable                                       |   |   | 2,087   |   |   |   | (10,062 | )      |   |   | - |   |
| Inventories                                                      |   |   | 16,351  |   |   |   | 8,947   |   |   |   | (18,268 | ) |
| Other      current assets                                        |   |   | (755    | )      |   |   | (205    | )      |   |   | (1,107 | ) |
| Other      assets                                                |   |   | 68      |   |   |   | 131     |   |   |   | (6,158 | ) |
| Trade      payables                                              |   |   | 1,334   |   |   |   | (6,798  | )      |   |   | (2,286 | ) |
| Other      accrued liabilities                                   |   |   | (5,832  | )      |   |   | (1,458  | )      |   |   | (401 | ) |
| Other      liabilities                                           |   |   | 591     |   |   |   | (2,465  | )      |   |   | (461 | ) |
| Total      adjustments                                           |   |   | 20,654  |   |   |   | 11,865  |   |   |   | (19,870 | ) |
| Net      cash provided by operating activities                   |   |   | 8,699   |   |   |   | 34,742  |   |   |   | 14,167 |   |
| Cash      flows from investing activities                        |   |   |    |   |   |   |    |   |   |   |   |   |
| Changes      in restricted cash                                  |   |   | (2,857  | )      |   |   | -       |   |   |   | - |   |
| Acquisition      of property, plant and equipment                |   |   | (7,224  | )      |   |   | (12,933 | )      |   |   | (4,246 | ) |
| Sale      of property, plant and equipment                       |   |   | -       |   |   |   | 6       |   |   |   | 1 |   |
| Net      cash used in investing activities                       |   |   | (10,081 | )      |   |   | (12,927 | )      |   |   | (4,245 | ) |
| Cash      flows from financing activities                        |   |   |    |   |   |   |    |   |   |   |   |   |
| (Payments      on) proceeds from borrowings under line of credit |   |   | (47,200 | )      |   |   | (200    | )      |   |   | 23,400 |   |
| Proceeds      on borrowings from shareholders                    |   |   | 30,000  |   |   |   | -       |   |   |   | - |   |
| Shareholder      contribution                                    |   |   | 20,000  |   |   |   | -       |   |   |   | - |   |
| Dividends      paid to shareholders                              |   |   | -       |   |   |   | (21,615 | )      |   |   | (33,583 | ) |
| Net      cash provided by (used in) financing activities         |   |   | 2,800   |   |   |   | (21,815 | )      |   |   | (10,183 | ) |
| Net      increase (decrease) in cash                             |   |   | 1,418   |   |   |   | -       |   |   |   | (261 | ) |
| Cash                                                             |   |   |    |   |   |   |    |   |   |   |   |   |
| Beginning      of year                                           |   |   | 3       |   |   |   | 3       |   |   |   | 264 |   |
| End      of year                                                 |   | $      | 1,421   |   |   | $      | 3       |   |   | $ | 3 |   |
| Supplemental      disclosure of cash flow information            |   |   |    |   |   |   |    |   |   |   |   |   |
| Cash      paid (received) during the year for                    |   |   |    |   |   |   |    |   |   |   |   |   |
| Interest      paid                                               |   | $      | 949     |   |   | $      | 1,587   |   |   | $ | 1,568 |   |
| Income      tax (received) paid                                  |   |   | (10,368 | )      |   |   | 21,720  |   |   |   | 23,125 |   |

----

| 1.   | Description      of the business and market risk |
|----------------|--------------------------------------------------|

| 2.   | Summary      of Significant Accounting Policies |
|----------------|-------------------------------------------------|

----

|                          |   | 2009   |   |   | 2008   |   |
|-------------------------------|--------|--------|--------|--------|--------|--------|
|                          |   |   |   |   |   |   |
| Rebar                         |   | $      | 11,899 |   |   | $      | 28,779 |   |
| Billets                       |   |   | 5,202  |   |   |   | 6,886 |   |
| Scrap      metal              |   |   | 3,401  |   |   |   | 1,235 |   |
| Supplies      and spare parts |   |   | 9,407  |   |   |   | 9,411 |   |
|                          |   | $      | 29,909 |   |   | $      | 46,311 |   |

----

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

----

| 3.   | Fair      Value Measurements |
|----------------|------------------------------|

| Level      1: | quoted      market prices in active markets for identical assets and      liabilities.                |
|---------------|-------------------------------------------------------------------------------------------------------|
| Level      2: | observable      market based inputs or unobservable inputs that are corroborated by market      data. |
| Level      3: | unobservable      inputs that are not corroborated by marketdata.                                     |

----

|                 |   | Fair      Value Measurements at |   |   |           |   |
|----------------------|--------|---------------------------------|--------|--------|----------------|--------|
|                 |   | November      30, 2009 Using    |   |   |           |   |
|                 |   |                            |   |   | Significant    |   |   |   |   |   |   |   |
|                 |   | Quoted      Prices              |   |   | Other          |   |   | Significant |   |   |   |   |
|                 |   | in      Active                  |   |   | Observable     |   |   | Unobservable |   |   | Total |   |
|                 |   | Markets                         |   |   | Inputs         |   |   | Inputs |   |   | Carrying |   |
|                 |   | (Level      1)                  |   |   | (Level      2) |   |   | (Level      3) |   |   | Value |   |
|                 |   |                            |   |   |           |   |   |   |   |   |   |   |
| Cash                 |   | $                               | 1,421  |   |           | $      | - |   |   | $ | - |   |   | $ | 1,421 |   |
| Restricted      cash |   |                            | 2,857  |   |           |   | - |   |   |   | - |   |   |   | 2,857 |   |

|                             |   | Carrying |   |   | Fair   |   |
|----------------------------------|--------|----------|--------|--------|--------|--------|
|                             |   | Value    |   |   | Value  |   |
|                             |   |     |   |   |   |   |
| Borrowing      from shareholders |   | $        | 30,000 |   |   | $      | 30,394 |   |

----

| 4.   | Shareholder      Contribution and Related PartyTransactions |
|----------------|-------------------------------------------------------------|

| 5.   | Business      Loan Agreement |
|----------------|------------------------------|

----

| 6.   | Pension      and 401(k) Retirement Plans |
|----------------|------------------------------------------|

|                                      |   | Prior      to Adopting |   |   | Effect      of Adopting |   |   | As      Reported at    |   |
|-------------------------------------------|--------|------------------------|--------|--------|-------------------------|--------|--------|------------------------|--------|
|                                      |   | SFAS      No. 158      |   |   | SFAS      No. 158       |   |   | November      30, 2007 |   |
|                                      |   |                   |   |   |                    |   |   |                   |   |
| Prepaid      pension cost                 |   | $                      | 621    |   |                    | $      | (621   | )                      |   | $ | - |   |
| Accrued      pension cost                 |   |                   | (936   | )      |                    |   | (1,107 | )                      |   |   | (2,043 | ) |
| Intangible      pension assets            |   |                   | 32     |   |                    |   | (32    | )                      |   |   | - |   |
| Deferred      income tax pension asset    |   |                   | 818    |   |                    |   | 702    |                   |   |   | 1,520 |   |
| Accumulated      other comprehensive loss |   |                   | 1,234  |   |                    |   | 1,058  |                   |   |   | 2,292 |   |

----

|                                    |   | 2009     |   |   | 2008   |   |   | 2007     |   |
|-----------------------------------------|--------|----------|--------|--------|--------|--------|--------|----------|--------|
|                                    |   | Salaried |   |   | Hourly |   |   | Salaried |   |   | Hourly |   |   | Salaried |   |   | Hourly |   |
|                                    |   |     |   |   |   |   |   |     |   |   |   |   |   |   |   |   |   |   |
| Components      of net periodic         |   |     |   |   |   |   |   |     |   |   |   |   |   |   |   |   |   |   |
|  pension      cost                 |   |     |   |   |   |   |   |     |   |   |   |   |   |   |   |   |   |   |
| Service      cost                       |   | $        | 366    |   |   | $      | 210    |     |   | $ | 385 |   |   | $ | 388 |   |   | $ | 391 |   |   | $ | 425 |   |
| Interest      cost                      |   |     | 1,023  |   |   |   | 1,082  |     |   |   | 890 |   |   |   | 955 |   |   |   | 860 |   |   |   | 899 |   |
| Expected      return on market-related  |   |     |   |   |   |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  value      of plan assets         |   |     | (898   | )      |   |   | (922   | )        |   |   | (1,119 | ) |   |   | (1,217 | ) |   |   | (974 | ) |   |   | (1,122 | ) |
| Amortization      of unrecognized       |   |     |   |   |   |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  prior      service cost           |   |     | -      |   |   |   | 3      |     |   |   | - |   |   |   | 6 |   |   |   | - |   |   |   | 6 |   |
| Curtailment                             |   |     | -      |   |   |   | 469    |     |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Amortization      of accumulated losses |   |     | 366    |   |   |   | 504    |     |   |   | 22 |   |   |   | 44 |   |   |   | 133 |   |   |   | 95 |   |
| Net      periodic pension cost          |   | $        | 857    |   |   | $      | 1,346  |     |   | $ | 178 |   |   | $ | 176 |   |   | $ | 410 |   |   | $ | 303 |   |

|                             |   | 2009     |   |   | 2008   |   |   | 2007     |   |
|----------------------------------|--------|----------|--------|--------|--------|--------|--------|----------|--------|
|                             |   | Salaried |   |   | Hourly |   |   | Salaried |   |   | Hourly |   |   | Salaried |   |   | Hourly |   |
|                             |   |     |   |   |   |   |   |     |   |   |   |   |   |   |   |   |   |   |
| Discount      rate               |   |     | 7.00   | %      |   |   | 7.00   | %        |   |   | 6.25 | % |   |   | 6.25 | % |   |   | 6.125 | % |   |   | 6.125 | % |
| Rate      of increase in         |   |     |   |   |   |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  compensation      levels   |   |     | 3.75   | %      |   |   | N/A    |     |   |   | 3.75 | % |   |   | N/A |   |   |   | 3.75 | % |   |   | N/A |   |
| Expected      long-term rate of  |   |     |   |   |   |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  return      on plan assets |   |     | 8.50   | %      |   |   | 8.50   | %        |   |   | 8.50 | % |   |   | 8.50 | % |   |   | 8.50 | % |   |   | 8.50 | % |

----

|                                     |   | 2009     |   |   | 2008   |   |   | 2007     |   |
|------------------------------------------|--------|----------|--------|--------|--------|--------|--------|----------|--------|
|                                     |   | Salaried |   |   | Hourly |   |   | Salaried |   |   | Hourly |   |   | Salaried |   |   | Hourly |   |
|                                     |   |     |   |   |   |   |   |     |   |   |   |   |   |   |   |   |   |   |
| Change      in projected benefit         |   |     |   |   |   |   |   |     |   |   |   |   |   |   |   |   |   |   |
|  obligation                         |   |     |   |   |   |   |   |     |   |   |   |   |   |   |   |   |   |   |
| Projected      benefit obligation,       |   |     |   |   |   |   |   |     |   |   |   |   |   |   |   |   |   |   |
|  beginning      of year             |   | $        | 14,547 |   |   | $      | 15,219 |     |   | $ | 14,627 |   |   | $ | 15,720 |   |   | $ | 14,363 |   |   | $ | 15,018 |   |
| Service      cost                        |   |     | 468    |   |   |   | 296    |     |   |   | 385 |   |   |   | 388 |   |   |   | 391 |   |   |   | 425 |   |
| Interest      cost                       |   |     | 1,270  |   |   |   | 1,342  |     |   |   | 890 |   |   |   | 955 |   |   |   | 860 |   |   |   | 898 |   |
| Actuarial      (gain) loss               |   |     | 4,007  |   |   |   | 2,584  |     |   |   | (819 | ) |   |   | (978 | ) |   |   | (514 | ) |   |   | 118 |   |
| Curtailment      (gain) loss             |   |     | (425   | )      |   |   | 451    |     |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Benefits      paid                       |   |     | (912   | )      |   |   | (1,065 | )        |   |   | (536 | ) |   |   | (866 | ) |   |   | (473 | ) |   |   | (739 | ) |
| Projected      benefit                   |   |     |   |   |   |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  obligation,      end of year       |   | $        | 18,955 |   |   | $      | 18,827 |     |   | $ | 14,547 |   |   | $ | 15,219 |   |   | $ | 14,627 |   |   | $ | 15,720 |   |
| Change      in plan assets               |   |     |   |   |   |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fair      value of plan assets,          |   |     |   |   |   |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  beginning      of year             |   | $        | 12,153 |   |   | $      | 13,910 |     |   | $ | 13,557 |   |   | $ | 14,748 |   |   | $ | 11,781 |   |   | $ | 13,533 |   |
| Actual      return on plan assets        |   |     | (945   | )      |   |   | (1,226 | )        |   |   | (1,168 | ) |   |   | (1,172 | ) |   |   | 1,515 |   |   |   | 1,726 |   |
| Employer      contribution               |   |     | 1,240  |   |   |   | 588    |     |   |   | 300 |   |   |   | 1,200 |   |   |   | 806 |   |   |   | 310 |   |
| Administrative      expenses             |   |     | -      |   |   |   | -      |     |   |   | - |   |   |   | - |   |   |   | (72 | ) |   |   | (82 | ) |
| Benefits      paid                       |   |     | (913   | )      |   |   | (1,065 | )        |   |   | (536 | ) |   |   | (866 | ) |   |   | (473 | ) |   |   | (739 | ) |
| Fair      value of plan assets,          |   |     |   |   |   |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  end      of year                   |   | $        | 11,535 |   |   | $      | 12,207 |     |   | $ | 12,153 |   |   | $ | 13,910 |   |   | $ | 13,557 |   |   | $ | 14,748 |   |
| Funded      status                       |   |     |   |   |   |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Deficiency      of plan assets over      |   |     |   |   |   |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  projected      benefit obligations |   | $        | (7,420 | )      |   | $      | (6,620 | )        |   | $ | (2,394 | ) |   | $ | (1,309 | ) |   | $ | (1,070 | ) |   | $ | (973 | ) |
| Funded      status, end of year          |   | $        | (7,420 | )      |   | $      | (6,620 | )        |   | $ | (2,394 | ) |   | $ | (1,309 | ) |   | $ | (1,070 | ) |   | $ | (973 | ) |
| Amounts      recognized on the balance   |   |     |   |   |   |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  sheet      consist of              |   |     |   |   |   |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Accrued      pension liability           |   | $        | (7,420 | )      |   | $      | (6,620 | )        |   | $ | (2,394 | ) |   | $ | (1,309 | ) |   | $ | (1,070 | ) |   | $ | (973 | ) |
| Accumulated      other comprehensive     |   |     |   |   |   |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  loss                               |   |     | 8,404  |   |   |   | 7,901  |     |   |   | 3,138 |   |   |   | 3,482 |   |   |   | 1,691 |   |   |   | 2,122 |   |
| Net      amount recognized               |   | $        | 984    |   |   | $      | 1,281  |     |   | $ | 744 |   |   | $ | 2,173 |   |   | $ | 621 |   |   | $ | 1,149 |   |
| Accumulated      benefit obligation      |   | $        | 17,342 |   |   | $      | 17,214 |     |   | $ | 13,210 |   |   | $ | 15,195 |   |   | $ | 13,225 |   |   | $ | 15,683 |   |

----

|                           |   | 2009     |   |   | 2008   |   |   | 2007     |   |
|--------------------------------|--------|----------|--------|--------|--------|--------|--------|----------|--------|
|                           |   | Salaried |   |   | Hourly |   |   | Salaried |   |   | Hourly |   |   | Salaried |   |   | Hourly |   |
|                           |   |     |   |   |   |   |   |     |   |   |   |   |   |   |   |   |   |   |
| Discount      rate             |   |     | 5.50   | %      |   |   | 5.50   | %        |   |   | 7.00 | % |   |   | 7.00 | % |   |   | 6.25 | % |   |   | 6.25 | % |
| Rate      of increase in       |   |     |   |   |   |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  compensation      levels |   |     | 3.75   | %      |   |   | N/A    |     |   |   | 3.75 | % |   |   | N/A |   |   |   | 3.75 | % |   |   | N/A |   |

|                          |   | 2009     |   |   | 2008   |   |   | 2007     |   |
|-------------------------------|--------|----------|--------|--------|--------|--------|--------|----------|--------|
|                          |   | Salaried |   |   | Hourly |   |   | Salaried |   |   | Hourly |   |   | Salaried |   |   | Hourly |   |
|                          |   |     |   |   |   |   |   |     |   |   |   |   |   |   |   |   |   |   |
| Equity      securities        |   |     | 71     | %      |   |   | 71     | %        |   |   | 70 | % |   |   | 68 | % |   |   | 73 | % |   |   | 73 | % |
| Debt      securities          |   |     | 27     | %      |   |   | 26     | %        |   |   | 28 | % |   |   | 26 | % |   |   | 25 | % |   |   | 25 | % |
| Real      estate              |   |     | 2      | %      |   |   | 3      | %        |   |   | 2 | % |   |   | 3 | % |   |   | 2 | % |   |   | 2 | % |
| Other      (cash equivalents) |   |     | 0      | %      |   |   | 0      | %        |   |   | 0 | % |   |   | 3 | % |   |   | 0 | % |   |   | 0 | % |
|                          |   |     | 100    | %      |   |   | 100    | %        |   |   | 100 | % |   |   | 100 | % |   |   | 100 | % |   |   | 100 | % |

|                           |   | Salaried |   |   | Hourly |   |
|--------------------------------|--------|----------|--------|--------|--------|--------|
| Years      ending November 30, |   |     |   |   |   |   |
| 2010                           |   | $        | 850    |   |   | $      | 959 |   |
| 2011                           |   |     | 934    |   |   |   | 1,014 |   |
| 2012                           |   |     | 1,003  |   |   |   | 1,050 |   |
| 2013                           |   |     | 1,077  |   |   |   | 1,091 |   |
| 2014                           |   |     | 1,126  |   |   |   | 1,132 |   |
| 2015-2019                      |   |     | 6,795  |   |   |   | 6,087 |   |

----

|                                |   | Before      Curtailment |   |   | Effect      of Curtailment |   |   | After      Curtailment |   |
|-------------------------------------|--------|-------------------------|--------|--------|----------------------------|--------|--------|------------------------|--------|
|                                |   |                    |   |   |                       |   |   |                   |   |
| Assets      and obligations         |   |                    |   |   |                       |   |   |                   |   |
| Projected      benefit obligation   |   | $                       | 13,739 |   |                       | $      | (22    | )                      |   | $ | 13,717 |   |
| Plan      assets at fair value      |   |                    | 10,534 |   |                       |   | -      |                   |   |   | 10,534 |   |
| Funded      status                  |   |                    | 3,205  |   |                       |   | (22    | )                      |   |   | 3,183 |   |
| Amounts      in accumulated other   |   |                    |   |   |                       |   |   |                   |   |   |   |   |
|  comprehensive      income     |   |                    |   |   |                       |   |   |                   |   |   |   |   |
| Net      loss                       |   |                    | (5,278 | )      |                       |   | 22     |                   |   |   | (5,256 | ) |
| Prior      service cost             |   |                    | (26    | )      |                       |   | 5      |                   |   |   | (21 | ) |
|                                |   |                    | (5,304 | )      |                       |   | 27     |                   |   |   | (5,277 | ) |
| Accrued      (prepaid) pension      |   |                    |   |   |                       |   |   |                   |   |   |   |   |
|  cost      before SFAS No. 158 |   | $                       | (2,099 | )      |                       | $      | 5      |                   |   | $ | (2,094 | ) |

----

|                                |   | Before      Curtailment |   |   | Effect      of Curtailment |   |   | After      Curtailment |   |
|-------------------------------------|--------|-------------------------|--------|--------|----------------------------|--------|--------|------------------------|--------|
|                                |   | Hourly                  |   |   | Salary                     |   |   | Hourly                 |   |   | Salary |   |   | Hourly |   |   | Salary |   |
| Assets      and obligations         |   |                    |   |   |                       |   |   |                   |   |   |   |   |   |   |   |   |   |   |
| Projected      benefit obligation   |   | $                       | 16,099 |   |                       | $      | 16,558 |                   |   | $ | 451 |   |   | $ | (425 | ) |   | $ | 16,550 |   |   | $ | 16,133 |   |
| Plan      assets at fair value      |   |                    | 10,322 |   |                       |   | 9,157  |                   |   |   | - |   |   |   | - |   |   |   | 10,322 |   |   |   | 9,157 |   |
| Funded      status                  |   |                    | 5,777  |   |                       |   | 7,401  |                   |   |   | 451 |   |   |   | (425 | ) |   |   | 6,228 |   |   |   | 6,976 |   |
| Amounts      in accumulated other   |   |                    |   |   |                       |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  comprehensive      income     |   |                    |   |   |                       |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      loss                       |   |                    | (7,468 | )      |                       |   | (7,826 | )                      |   |   | - |   |   |   | 425 |   |   |   | (7,468 | ) |   |   | (7,401 | ) |
| Prior      service cost             |   |                    | (18    | )      |                       |   | -      |                   |   |   | 13 |   |   |   | - |   |   |   | (5 | ) |   |   | - |   |
|                                |   |                    | (7,486 | )      |                       |   | (7,826 | )                      |   |   | 13 |   |   |   | 425 |   |   |   | (7,473 | ) |   |   | (7,401 | ) |
| Accrued      (prepaid) pension      |   |                    |   |   |                       |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  cost      before SFAS No. 158 |   | $                       | (1,709 | )      |                       | $      | (425   | )                      |   | $ | 464 |   |   | $ | - |   |   | $ | (1,245 | ) |   | $ | (425 | ) |

----

| 7.   | Income      Taxes |
|----------------|-------------------|

|     |   | 2009   |   |   | 2008   |   |   | 2007   |   |
|----------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|     |   |   |   |   |   |   |   |   |   |
| Current  |   |   |   |   |   |   |   |   |   |
| Federal  |   | $      | (8,226 | )      |   | $      | 8,968  |   |   | $ | 17,253 |   |
| State    |   |   | (55    | )      |   |   | 2,961  |   |   |   | 4,920 |   |
|     |   |   | (8,281 | )      |   |   | 11,929 |   |   |   | 22,173 |   |
| Deferred |   |   |   |   |   |   |   |   |   |   |   |   |
| Federal  |   |   | 1,844  |   |   |   | 2,302  |   |   |   | 297 |   |
| State    |   |   | (1,719 | )      |   |   | 369    |   |   |   | 100 |   |
|     |   |   | 125    |   |   |   | 2,671  |   |   |   | 397 |   |
|     |   | $      | (8,156 | )      |   | $      | 14,600 |   |   | $ | 22,570 |   |

|                                            |   | 2009   |   |   | 2008   |   |
|-------------------------------------------------|--------|--------|--------|--------|--------|--------|
|                                            |   |   |   |   |   |   |
| Provision      at the federal statutory rate    |   |   | 35.00  | %      |   |   | 35.00 | % |
| State      income taxes, net of federal benefit |   |   | 5.73   | %      |   |   | 5.77 | % |
| Meals      and entertainment                    |   |   | (0.06  | )%     |   |   | 0.10 | % |
| Fuel      tax credit                            |   |   | 0.04   | %      |   |   | (0.15 | )% |
| Lobbyist      expense                           |   |   | (0.01  | )%     |   |   | 0.04 | % |
| Section      199 deductions                     |   |   | 0.00   | %      |   |   | (1.56 | )% |
| Other                                           |   |   | (0.14  | )%     |   |   | (0.24 | )% |
|                                            |   |   | 40.56  | %      |   |   | 38.96 | % |

----

|                              |   | 2009   |   |   | 2008   |   |
|-----------------------------------|--------|--------|--------|--------|--------|--------|
|                              |   |   |   |   |   |   |
| Deferred      tax asset           |   |   |   |   |   |   |
| Reserve      for contingencies    |   | $      | -      |   |   | $      | 486 |   |
| Accrued      liabilities          |   |   | 552    |   |   |   | 722 |   |
| Reserve      for inventories      |   |   | 424    |   |   |   | 344 |   |
| State      taxes                  |   |   | -      |   |   |   | 1,239 |   |
| Additional      pension liability |   |   | 7,116  |   |   |   | 2,785 |   |
| Net      Operating Loss           |   |   | 1,697  |   |   |   | - |   |
| Other                             |   |   | 338    |   |   |   | 93 |   |
| Deferred      tax asset           |   |   | 10,127 |   |   |   | 5,669 |   |
| Deferred      tax liability       |   |   |   |   |   |   |   |   |
| Depreciation                      |   |   | (6,272 | )      |   |   | (6,245 | ) |
| State      Tax                    |   |   | (702   | )      |   |   | - |   |
| Pension      reserve              |   |   | (1,114 | )      |   |   | (1,279 | ) |
| Deferred      tax liability       |   |   | (8,088 | )      |   |   | (7,524 | ) |
|                              |   | $      | 2,039  |   |   | $      | (1,855 | ) |

----

| 8.   | Commitments      and Contingences |
|----------------|-----------------------------------|

| Years      ending November 30, |   |   |   |
|--------------------------------|--------|--------|--------|
| 2010                           |   | $      | 1,103  |   |
| 2011                           |   |   | 1,103  |   |
| 2012                           |   |   | 1,060  |   |
| 2013                           |   |   | 587    |   |
| 2014                           |   |   | 587    |   |
|                           |   | $      | 4,440  |   |

| 9.   | Subsequent      Events |
|----------------|------------------------|

----