----

----

----

----

|                                               | Page(s)    |
|----------------------------------------------------|------------|
| Report      of Independent Auditors                | 4          |
| Financial      Statements                          |       |
| Balance      Sheets                                | 5          |
| Statements      of Income and Comprehensive Income | 6          |
| Statements      of Shareholders’ Equity      | 7          |
| Statements      of Cash Flows                      | 8          |
| Notes      to Financial Statements                 | 9–21 |

----

----

| (in      thousands, except share amounts)                       |   | 2008   |    |   | 2007   |   |
|-----------------------------------------------------------------|--------|--------|---------|--------|--------|--------|
|                                                            |   |   |    |   |   |   |
| Assets                                                          |   |   |    |   |   |   |
| Current      assets                                             |   |   |    |   |   |   |
| Cash                                                            |   | $      | 3       |   |   | $      | 3 |   |
| Trade      receivables, net of allowances of $80 and $80        |   |   |    |   |   |   |   |   |
|  in      2008 and 2007, respectively                       |   |   | 2,953   |   |   |   | 9,090 |   |
| Due      from shareholders                                      |   |   | 46      |   |   |   | 1,000 |   |
| Other      receivables                                          |   |   | 1,330   |   |   |   | 74 |   |
| Inventories                                                     |   |   | 46,311  |   |   |   | 65,100 |   |
| Deferred      income taxes (Note 6)                             |   |   | 2,392   |   |   |   | 3,640 |   |
| Income      tax refund receivable (Note 6)                      |   |   | 10,062  |   |   |   | - |   |
| Prepaid      expenses and tooling                               |   |   | 1,071   |   |   |   | 1,260 |   |
| Total      current assets                                       |   |   | 64,168  |   |   |   | 80,167 |   |
| Property,      plant and equipment                              |   |   |    |   |   |   |   |   |
| Land                                                            |   |   | 1,191   |   |   |   | 1,191 |   |
| Processing      facilities and equipment                        |   |   | 105,570 |   |   |   | 102,273 |   |
| Construction      in process                                    |   |   | 11,227  |   |   |   | 1,899 |   |
| Total      property, plant and equipment                        |   |   | 117,988 |   |   |   | 105,363 |   |
| Less:  Accumulated      depreciation and amortization |   |   | (77,365 | )      |   |   | (72,634 | ) |
| Property,      plant and equipment, net                         |   |   | 40,623  |   |   |   | 32,729 |   |
| Other      assets (Note 1)                                      |   |   | 7,355   |   |   |   | 7,486 |   |
| Total      assets                                               |   | $      | 112,146 |   |   | $      | 120,382 |   |
| Liabilities      and Shareholders' Equity                       |   |   |    |   |   |   |   |   |
| Current      liabilities                                        |   |   |    |   |   |   |   |   |
| Borrowings      under line of credit (Note 4)                   |   | $      | 47,200  |   |   | $      | 47,400 |   |
| Trade      payables                                             |   |   | 4,256   |   |   |   | 11,054 |   |
| Other      accrued liabilities                                  |   |   | 7,235   |   |   |   | 8,693 |   |
| Total      current liabilities                                  |   |   | 58,691  |   |   |   | 67,147 |   |
| Long-term      liabilities                                      |   |   |    |   |   |   |   |   |
| Other      long-term liabilities (Notes 1 and 5)                |   |   | 4,608   |   |   |   | 4,111 |   |
| Deferred      income taxes (Note 6)                             |   |   | 4,247   |   |   |   | 4,029 |   |
| Total      long-term liabilities                                |   |   | 8,855   |   |   |   | 8,140 |   |
| Commitments      and contingencies (Note 7)                     |   |   |    |   |   |   |   |   |
| Shareholders'      equity                                       |   |   |    |   |   |   |   |   |
| Common      stock, $100 par value; 220,000 shares authorized,   |   |   |    |   |   |   |   |   |
|  issued      and outstanding                               |   |   | 19,482  |   |   |   | 19,482 |   |
| Retained      earnings                                          |   |   | 29,167  |   |   |   | 27,905 |   |
| Accumulated      other comprehensive loss                       |   |   | (4,049  | )      |   |   | (2,292 | ) |
| Total      shareholders' equity                                 |   |   | 44,600  |   |   |   | 45,095 |   |
| Total      liabilities and shareholders' equity                 |   | $      | 112,146 |   |   | $      | 120,382 |   |

----

| (in      thousands)                                      |   | 2008   |    |   | 2007   |   |    | 2006   |   |
|----------------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|
|                                                     |   |   |    |   |   |   |    |   |   |
| Revenue                                                  |   |   |    |   |   |   |    |   |   |
| Gross      sales                                         |   | $      | 368,605 |   |   | $      | 270,336 |   |   | $ | 275,091 |   |
| Cash      discounts allowed                              |   |   | (2,648  | )      |   |   | (2,128  | )      |   |   | (2,055 | ) |
| Total      revenue                                       |   |   | 365,957 |   |   |   | 268,208 |   |   |   | 273,036 |   |
| Cost      of sales                                       |   |   | 300,493 |   |   |   | 196,392 |   |   |   | 206,180 |   |
| Lower      of cost or market adjustment                  |   |   | 9,842   |   |   |   | -       |   |   |   | - |   |
| Loading      and freight                                 |   |   | 5,695   |   |   |   | 5,322   |   |   |   | 5,520 |   |
| Total      costs of sales                                |   |   | 316,030 |   |   |   | 201,714 |   |   |   | 211,700 |   |
| Gross      profit                                        |   |   | 49,927  |   |   |   | 66,494  |   |   |   | 61,336 |   |
| General      and administrative expenses                 |   |   | 8,913   |   |   |   | 9,131   |   |   |   | 8,332 |   |
| Income      from operations                              |   |   | 41,014  |   |   |   | 57,363  |   |   |   | 53,004 |   |
| Other      expenses (income), net                        |   |   |    |   |   |   |    |   |   |   |   |   |
| Interest                                                 |   |   | 1,713   |   |   |   | 1,541   |   |   |   | 1,164 |   |
| Other                                                    |   |   | 1,824   |   |   |   | (785    | )      |   |   | (255 | ) |
| Total      other expenses                                |   |   | 3,537   |   |   |   | 756     |   |   |   | 909 |   |
| Income      before provision for income taxes            |   |   | 37,477  |   |   |   | 56,607  |   |   |   | 52,095 |   |
| Provision      for income taxes (Note 6)                 |   |   | (14,600 | )      |   |   | (22,570 | )      |   |   | (21,536 | ) |
| Net      income                                          |   |   | 22,877  |   |   |   | 34,037  |   |   |   | 30,559 |   |
| Other      comprehensive income (loss)                   |   |   |    |   |   |   |    |   |   |   |   |   |
| Defined      benefit pension plans                       |   |   |    |   |   |   |    |   |   |   |   |   |
| Minimum      pension liability adjustment                |   |   | -       |   |   |   | 1,856   |   |   |   | 1,505 |   |
| Net      pension loss during period                      |   |   | (2,812  | )      |   |   | -       |   |   |   | - |   |
| Amortization      of prior service costs included in net |   |   |    |   |   |   |    |   |   |   |   |   |
|  periodic      pension cost                         |   |   | 6       |   |   |   | 6       |   |   |   | 6 |   |
| Total      defined benefit pension plans                 |   |   | (2,806  | )      |   |   | 1,862   |   |   |   | 1,511 |   |
| Unrealized      loss on investments                      |   |   | (32     | )      |   |   | -       |   |   |   | - |   |
| Total      other comprehensive (loss) income, before tax |   |   | (2,838  | )      |   |   | 1,862   |   |   |   | 1,511 |   |
| Benefit      (provision) for income taxes related to     |   |   |    |   |   |   |    |   |   |   |   |   |
|  other      comprehensive income                    |   |   | 1,081   |   |   |   | (904    | )      |   |   | (616 | ) |
| Total      other comprehensive income, net of tax        |   |   | (1,757  | )      |   |   | 958     |   |   |   | 895 |   |
| Comprehensive      income                                |   | $      | 21,120  |   |   | $      | 34,995  |   |   | $ | 31,454 |   |

----

| (in      thousands, except shares)        |   |              |    |   |     |   |   |            |   |   |                     |   |   |   |   |   |   |   |
|-------------------------------------------|--------|-------------------|---------|--------|----------|--------|--------|-----------------|--------|--------|--------------------------|--------|--------|--------|--------|--------|--------|--------|
|                                      |   |              |    |   |     |   |   |            |   |   |                     |   |   |   |   |   |   |   |
|                                      |   |              |    |   |     |   |   |            |   |   | Accumulated      Other   |   |   |   |   |
|                                      |   |              |    |   |     |   |   |            |   |   | Comprehensive      Loss, |   |   |   |   |
|                                      |   | Common      Stock |    |   | Retained |   |   | Net      of Tax |   |   |                     |   |
|                                      |   | Shares            |    |   | Amount   |   |   | Earnings        |   |   | Pension                  |   |   | Other  |   |   | Total  |   |
|                                      |   |              |    |   |     |   |   |            |   |   |                     |   |   |   |   |   |   |   |
| Balances      at November 30, 2005        |   |              | 220,000 |   |     | $      | 19,482 |            |   | $      | 26,900                   |   |   | $      | (3,087 | )      |   | $      | - |   |   | $ | 43,295 |   |
| Net      income                           |   |              | -       |   |     |   | -      |            |   |   | 30,559                   |   |   |   | -      |   |   |   |   |   |   |   | 30,559 |   |
| Minimum      pension liability adjustment |   |              | -       |   |     |   | -      |            |   |   | -                        |   |   |   | 895    |   |   |   | - |   |   |   | 895 |   |
| Dividends      to shareholders            |   |              | -       |   |     |   | -      |            |   |   | (30,008                  | )      |   |   | -      |   |   |   | - |   |   |   | (30,008 | ) |
| Balances      at November 30, 2006        |   |              | 220,000 |   |     |   | 19,482 |            |   |   | 27,451                   |   |   |   | (2,192 | )      |   |   | - |   |   |   | 44,741 |   |
| Net      income                           |   |              | -       |   |     |   | -      |            |   |   | 34,037                   |   |   |   | -      |   |   |   |   |   |   |   | 34,037 |   |
| Minimum      pension liability adjustment |   |              | -       |   |     |   | -      |            |   |   | -                        |   |   |   | 958    |   |   |   | - |   |   |   | 958 |   |
| Adoption      of SFAS 158                 |   |              | -       |   |     |   | -      |            |   |   | -                        |   |   |   | (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 |   |

----

| (in      thousands)                                                                        |   | 2008   |    |   | 2007   |   |    | 2006   |   |
|--------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|
|                                                                                       |   |   |    |   |   |   |    |   |   |
| Cash      flows from operating activities                                                  |   |   |    |   |   |   |    |   |   |
| Net      income                                                                            |   | $      | 22,877  |   |   | $      | 34,037  |   |   | $ | 30,559 |   |
| Adjustments      to reconcile net income to net cash provided by operating      activities |   |   |    |   |   |   |    |   |   |   |   |   |
| Depreciation                                                                               |   |   | 4,984   |   |   |   | 4,378   |   |   |   | 4,426 |   |
| Lower      of cost or market adjustment                                                    |   |   | 9,842   |   |   |   | -       |   |   |   | - |   |
| Deferred      income tax expense                                                           |   |   | 2,671   |   |   |   | 397     |   |   |   | 10 |   |
| Loss      (profit) on sale/abandonment of property, plant and    equipment                 |   |   | 49      |   |   |   | (1      | )      |   |   | 187 |   |
| Changes      in operating assets and liabilities                                           |   |   |    |   |   |   |    |   |   |   |   |   |
| Receivables                                                                                |   |   | 5,835   |   |   |   | 3,246   |   |   |   | (2,741 | ) |
| Inventories                                                                                |   |   | 8,947   |   |   |   | (18,268 | )      |   |   | 4,359 |   |
| Other      current assets                                                                  |   |   | (9,873  | )      |   |   | (316    | )      |   |   | 147 |   |
| Other      assets                                                                          |   |   | 131     |   |   |   | (6,158  | )      |   |   | (1,312 | ) |
| Trade      payables                                                                        |   |   | (6,798  | )      |   |   | (2,286  | )      |   |   | (4,584 | ) |
| Other      accrued liabilities                                                             |   |   | (1,458  | )      |   |   | (401    | )      |   |   | 4,613 |   |
| Other      liabilities                                                                     |   |   | (2,465  | )      |   |   | (461    | )      |   |   | (745 | ) |
| Total      adjustments                                                                     |   |   | 11,865  |   |   |   | (19,870 | )      |   |   | 4,360 |   |
| Net      cash provided by operating activities                                             |   |   | 34,742  |   |   |   | 14,167  |   |   |   | 34,919 |   |
| Cash      flows from investing activities                                                  |   |   |    |   |   |   |    |   |   |   |   |   |
| Acquisition      of property, plant and equipment                                          |   |   | (12,933 | )      |   |   | (4,246  | )      |   |   | (9,500 | ) |
| Sale      of property, plant and equipment                                                 |   |   | 6       |   |   |   | 1       |   |   |   | 50 |   |
| Net      cash used in investing activities                                                 |   |   | (12,927 | )      |   |   | (4,245  | )      |   |   | (9,450 | ) |
| Cash      flows from financing activities                                                  |   |   |    |   |   |   |    |   |   |   |   |   |
| Net      borrowings on line of credit                                                      |   |   | (200    | )      |   |   | 23,400  |   |   |   | 4,800 |   |
| Dividends      paid to shareholders                                                        |   |   | (21,615 | )      |   |   | (33,583 | )      |   |   | (30,008 | ) |
| Net      cash used in financing activities                                                 |   |   | (21,815 | )      |   |   | (10,183 | )      |   |   | (25,208 | ) |
| Net      (decrease) increase in cash                                                       |   |   | -       |   |   |   | (261    | )      |   |   | 261 |   |
| Cash                                                                                       |   |   |    |   |   |   |    |   |   |   |   |   |
| Beginning      of year                                                                     |   |   | 3       |   |   |   | 264     |   |   |   | 3 |   |
| End      of year                                                                           |   | $      | 3       |   |   | $      | 3       |   |   | $ | 264 |   |
| Supplemental      disclosure of cash flow information                                      |   |   |    |   |   |   |    |   |   |   |   |   |
| Cash      paid during the year for                                                         |   |   |    |   |   |   |    |   |   |   |   |   |
| Interest                                                                                   |   | $      | 1,587   |   |   | $      | 1,568   |   |   | $ | 1,114 |   |
| Income      taxes, net of refunds                                                          |   | $      | 21,720  |   |   | $      | 23,125  |   |   | $ | 21,400 |   |

----

|                          |   | 2008   |   |   | 2007   |   |
|-------------------------------|--------|--------|--------|--------|--------|--------|
|                          |   |   |   |   |   |   |
| Rebar                         |   | $      | 28,779 |   |   | $      | 37,082 |   |
| Billets                       |   |   | 6,886  |   |   |   | 10,736 |   |
| Scrap      metal              |   |   | 1,235  |   |   |   | 7,924 |   |
| Supplies      and spare parts |   |   | 9,411  |   |   |   | 9,358 |   |
|                          |   | $      | 46,311 |   |   | $      | 65,100 |   |

----

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

|                   |   | (per      share) |   |
|------------------------|--------|------------------|--------|
|                   |   |             |   |
| February      13, 2008 |   | $                | 5.00   |   |
| May      20, 2008      |   | $                | 41.00  |   |
| August      19, 2008   |   | $                | 52.25  |   |

----

----

| 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, 2008 Using    |   |   |           |   |
|                                 |   |                            |   |   | Significant    |   |   |   |   |   |   |   |
|                                 |   | Quoted      Prices              |   |   | Other          |   |   | Significant |   |   |   |   |
|                                 |   | in      Active                  |   |   | Observable     |   |   | Unobservable |   |   | Total |   |
|                                 |   | Markets                         |   |   | Inputs         |   |   | Inputs |   |   | Carrying |   |
| (in      thousands)                  |   | (Level      1)                  |   |   | (Level      2) |   |   | (Level      3) |   |   | Value |   |
|                                 |   |                            |   |   |           |   |   |   |   |   |   |   |
| Cash                                 |   | $                               | 3      |   |           | $      | - |   |   | $ | - |   |   | $ | 3 |   |
| Investments                          |   |                            | 223    |   |           |   | - |   |   |   | - |   |   |   | 223 |   |
| Borrowings      under line of credit |   |                            | 47,200 |   |           |   | - |   |   |   | - |   |   |   | 47,200 |   |

----

----

|                                      |   | Prior      to Adopting SFAS No. 158 |   |   | Effect      of Adopting SFAS No. 158 |   |   | As      Reported at 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 |   |

----

|                                                        |   | 2008     |   |   | 2007   |   |   | 2006     |   |
|-------------------------------------------------------------|--------|----------|--------|--------|--------|--------|--------|----------|--------|
|                                                        |   | Salaried |   |   | Hourly |   |   | Salaried |   |   | Hourly |   |   | Salaried |   |   | Hourly |   |
|                                                        |   |     |   |   |   |   |   |     |   |   |   |   |   |   |   |   |   |   |
| Components      of net periodic                             |   |     |   |   |   |   |   |     |   |   |   |   |   |   |   |   |   |   |
|  pension      cost                                     |   |     |   |   |   |   |   |     |   |   |   |   |   |   |   |   |   |   |
| Service      cost                                           |   | $        | 385    |   |   | $      | 388    |     |   | $ | 391 |   |   | $ | 425 |   |   | $ | 436 |   |   | $ | 533 |   |
| Interest      cost                                          |   |     | 890    |   |   |   | 955    |     |   |   | 860 |   |   |   | 899 |   |   |   | 774 |   |   |   | 827 |   |
| Expected      return on market-related value of plan assets |   |     | (1,119 | )      |   |   | (1,217 | )        |   |   | (974 | ) |   |   | (1,122 | ) |   |   | (893 | ) |   |   | (1,080 | ) |
| Amortization      of unrecognized prior service cost        |   |     | -      |   |   |   | 6      |     |   |   | - |   |   |   | 6 |   |   |   | - |   |   |   | 3 |   |
| Amortization      of accumulated losses                     |   |     | 22     |   |   |   | 44     |     |   |   | 133 |   |   |   | 95 |   |   |   | 232 |   |   |   | 186 |   |
| Net      periodic pension cost                              |   | $        | 178    |   |   | $      | 176    |     |   | $ | 410 |   |   | $ | 303 |   |   | $ | 549 |   |   | $ | 469 |   |

|                                                  | 2008     |   | 2007   |   | 2006     |
|-------------------------------------------------------|----------|--------|--------|--------|----------|
|                                                  | Salaried |   | Hourly |   | Salaried |   | Hourly |   | Salaried |   | Hourly |
|                                                  |     |   |   |   |     |   |   |   |   |   |   |
| Discount      rate                                    | 6.25%    |   | 6.25%  |   | 6.125%   |   | 6.125% |   | 5.50% |   | 5.50% |
| 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% |

----

|                                                              |   | 2008     |   |   | 2007   |   |   | 2006     |   |
|-------------------------------------------------------------------|--------|----------|--------|--------|--------|--------|--------|----------|--------|
|                                                              |   | Salaried |   |   | Hourly |   |   | Salaried |   |   | Hourly |   |   | Salaried |   |   | Hourly |   |
|                                                              |   |     |   |   |   |   |   |     |   |   |   |   |   |   |   |   |   |   |
| Change      in projected benefit obligation                       |   |     |   |   |   |   |   |     |   |   |   |   |   |   |   |   |   |   |
| Projected      benefit obligation, beginning of year              |   | $        | 14,627 |   |   | $      | 15,720 |     |   | $ | 14,363 |   |   | $ | 15,018 |   |   | $ | 14,305 |   |   | $ | 15,316 |   |
| Service      cost                                                 |   |     | 385    |   |   |   | 388    |     |   |   | 391 |   |   |   | 425 |   |   |   | 436 |   |   |   | 533 |   |
| Interest      cost                                                |   |     | 890    |   |   |   | 955    |     |   |   | 860 |   |   |   | 898 |   |   |   | 774 |   |   |   | 827 |   |
| Plan      amendments                                              |   |     | -      |   |   |   | -      |     |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 26 |   |
| Actuarial      (gain) loss                                        |   |     | (819   | )      |   |   | (978   | )        |   |   | (514 | ) |   |   | 118 |   |   |   | (660 | ) |   |   | (1,037 | ) |
| Benefits      paid                                                |   |     | (536   | )      |   |   | (866   | )        |   |   | (473 | ) |   |   | (739 | ) |   |   | (492 | ) |   |   | (647 | ) |
| Projected      benefit obligation, end of year                    |   | $        | 14,547 |   |   | $      | 15,219 |     |   | $ | 14,627 |   |   | $ | 15,720 |   |   | $ | 14,363 |   |   | $ | 15,018 |   |
|                                                              |   |     |   |   |   |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Change      in plan assets                                        |   |     |   |   |   |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fair      value of plan assets, beginning of year                 |   | $        | 13,557 |   |   | $      | 14,748 |     |   | $ | 11,781 |   |   | $ | 13,533 |   |   | $ | 10,747 |   |   | $ | 12,984 |   |
| Actual      return on plan assets                                 |   |     | (1,168 | )      |   |   | (1,172 | )        |   |   | 1,515 |   |   |   | 1,726 |   |   |   | 781 |   |   |   | 929 |   |
| Employer      contribution                                        |   |     | 300    |   |   |   | 1,200  |     |   |   | 806 |   |   |   | 310 |   |   |   | 811 |   |   |   | 355 |   |
| Administrative      expenses                                      |   |     | -      |   |   |   | -      |     |   |   | (72 | ) |   |   | (82 | ) |   |   | (66 | ) |   |   | (88 | ) |
| Benefits      paid                                                |   |     | (536   | )      |   |   | (866   | )        |   |   | (473 | ) |   |   | (739 | ) |   |   | (492 | ) |   |   | (647 | ) |
| Fair      value of plan assets, end of year                       |   | $        | 12,153 |   |   | $      | 13,910 |     |   | $ | 13,557 |   |   | $ | 14,748 |   |   | $ | 11,781 |   |   | $ | 13,533 |   |
|                                                              |   |     |   |   |   |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Funded      status                                                |   |     |   |   |   |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Deficiency      of plan assets over projected benefit obligations |   | $        | (2,394 | )      |   | $      | (1,309 | )        |   | $ | (1,070 | ) |   | $ | (973 | ) |   | $ | (2,583 | ) |   | $ | (1,484 | ) |
| Unrecognized      actuarial loss                                  |   |     | -      |   |   |   | -      |     |   |   | - |   |   |   | - |   |   |   | 2,808 |   |   |   | 2,589 |   |
| Unrecognized      prior benefit service cost                      |   |     | -      |   |   |   | -      |     |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 38 |   |
| Funded      status, end of year                                   |   | $        | (2,394 | )      |   | $      | (1,309 | )        |   | $ | (1,070 | ) |   | $ | (973 | ) |   | $ | 225 |   |   | $ | 1,143 |   |
|                                                              |   |     |   |   |   |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Amounts      recognized on the balance sheet consist of           |   |     |   |   |   |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Accrued      pension liability                                    |   | $        | (2,394 | )      |   | $      | (1,309 | )        |   | $ | (1,070 | ) |   | $ | (973 | ) |   | $ | (1,149 | ) |   | $ | (1,430 | ) |
| Pension      intangible asset                                     |   |     | -      |   |   |   | -      |     |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 38 |   |
| Accumulated      other comprehensive loss                         |   |     | 3,138  |   |   |   | 3,482  |     |   |   | 1,691 |   |   |   | 2,122 |   |   |   | 1,374 |   |   |   | 2,535 |   |
| Net      amount recognized                                        |   | $        | 744    |   |   | $      | 2,173  |     |   | $ | 621 |   |   | $ | 1,149 |   |   | $ | 225 |   |   | $ | 1,143 |   |
| Accumulated      benefit obligation                               |   | $        | 13,210 |   |   | $      | 15,195 |     |   | $ | 13,225 |   |   | $ | 15,683 |   |   | $ | 12,930 |   |   | $ | 14,964 |   |

----

|                                         | 2008     |   | 2007   |   | 2006     |
|----------------------------------------------|----------|--------|--------|--------|----------|
|                                         | 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 |

|                          | 2008     |   | 2007   |   | 2006     |
|-------------------------------|----------|--------|--------|--------|----------|
|                          | Salaried |   | Hourly |   | Salaried |   | Hourly |   | Salaried |   | Hourly |
|                          |     |   |   |   |     |   |   |   |   |   |   |
| Equity      securities        | 70%      |   | 68%    |   | 73%      |   | 73% |   | 72% |   | 72% |
| Debt      securities          | 28%      |   | 26%    |   | 25%      |   | 25% |   | 24% |   | 24% |
| Real      estate              | 2%       |   | 3%     |   | 2%       |   | 2% |   | 4% |   | 4% |
| Other      (cash equivalents) | 0%       |   | 3%     |   | 0%       |   | 0% |   | 0% |   | 0% |
|                          | 100%     |   | 100%   |   | 100%     |   | 100% |   | 100% |   | 100% |

----

|                           |   | Salaried |   |   | Hourly |   |
|--------------------------------|--------|----------|--------|--------|--------|--------|
| Years      ending November 30, |   |     |   |   |   |   |
| 2009                           |   | $        | 766    |   |   | $      | 908 |   |
| 2010                           |   |     | 842    |   |   |   | 972 |   |
| 2011                           |   |     | 915    |   |   |   | 1,013 |   |
| 2012                           |   |     | 1,006  |   |   |   | 1,054 |   |
| 2013                           |   |     | 1,135  |   |   |   | 1,132 |   |
| 2014-2018                      |   |     | 8,020  |   |   |   | 6,303 |   |

|                                                   |   | 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      pension cost before SFAS No. 158          |   | $                       | (2,099 | )      |                       | $      | 5      |                   |   | $ | (2,094 | ) |

----

|     |   | 2008   |   |   | 2007   |   |   | 2006   |   |
|----------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|     |   |   |   |   |   |   |   |   |   |
| Current  |   |   |   |   |   |   |   |   |   |
| Federal  |   | $      | 8,968  |   |   | $      | 17,253 |   |   | $ | 16,879 |   |
| State    |   |   | 2,961  |   |   |   | 4,920  |   |   |   | 4,647 |   |
|     |   |   | 11,929 |   |   |   | 22,173 |   |   |   | 21,526 |   |
| Deferred |   |   |   |   |   |   |   |   |   |   |   |   |
| Federal  |   |   | 2,302  |   |   |   | 297    |   |   |   | (499 | ) |
| State    |   |   | 369    |   |   |   | 100    |   |   |   | 509 |   |
|     |   |   | 2,671  |   |   |   | 397    |   |   |   | 10 |   |
|     |   | $      | 14,600 |   |   | $      | 22,570 |   |   | $ | 21,536 |   |

|                                            | 2008    |   | 2007    |
|-------------------------------------------------|---------|--------|---------|
|                                            |    |   |    |
| Provision      at the federal statutory rate    | 35.00%  |   | 35.00%  |
| State      income taxes, net of federal benefit | 5.77%   |   | 5.76%   |
| Meals      and entertainment                    | 0.10%   |   | 0.07%   |
| Fuel      tax credit                            | (0.15)% |   | (0.06)% |
| Lobbyist      expense                           | 0.04%   |   | 0.03%   |
| Section      199 credits                        | (1.56)% |   | (0.95)% |
| Other                                           | (0.24)% |   | 0.02%   |
|                                            | 38.96%  |   | 39.87%  |

----

|                              |   | 2008   |   |   | 2007   |   |
|-----------------------------------|--------|--------|--------|--------|--------|--------|
|                              |   |   |   |   |   |   |
| Deferred      tax asset           |   |   |   |   |   |   |
| Reserve      for contingencies    |   | $      | 486    |   |   | $      | 663 |   |
| Accrued      liabilities          |   |   | 722    |   |   |   | 1,371 |   |
| Reserve      for inventories      |   |   | 344    |   |   |   | 650 |   |
| State      taxes                  |   |   | 1,239  |   |   |   | 1,874 |   |
| Additional      pension liability |   |   | 2,785  |   |   |   | 1,635 |   |
| Other                             |   |   | 93     |   |   |   | 28 |   |
| Deferred      tax asset           |   |   | 5,669  |   |   |   | 6,221 |   |
| Deferred      tax liability       |   |   |   |   |   |   |   |   |
| Depreciation                      |   |   | (6,245 | )      |   |   | (5,714 | ) |
| Pension      reserve              |   |   | (1,279 | )      |   |   | (896 | ) |
| Deferred      tax liability       |   |   | (7,524 | )      |   |   | (6,610 | ) |
|                              |   | $      | (1,855 | )      |   | $      | (389 | ) |

| Years      ending November 30, |   |   |   |
|--------------------------------|--------|--------|--------|
| 2009                           |   | $      | 516    |   |
| 2010                           |   |   | 516    |   |
| 2011                           |   |   | 516    |   |
| 2012                           |   |   | 473    |   |
| 2013                           |   |   | -      |   |
|                           |   | $      | 2,021  |   |

----

----