<PAGE>

                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM 10-K

                Annual Report Pursuant to Section 13 or 15 (d) of
                       The Securities Exchange Act of 1934

                   FOR THE FISCAL YEAR ENDED DECEMBER 31, 2003

                         Commission file number 0-15464

                               RADVA CORPORATION
                               -----------------
             (Exact name of registrant as specified in its charter)

              Virginia                                      54-0715892
              --------                                      ----------
    (State or other jurisdiction of                      (I.R.S. Employer
     incorporation or organization)                     Identification No.)

                        Drawer 2900 First Street Station
                             Radford, Virginia 24143
                                 (540) 639-2458
                        --------------------------------
               Address, including zip code, and telephone number,
                 including area code, of registrant's principal
                                executive offices

               Securities registered pursuant to Section 12(g) of
                                    the Act:

                     Common Stock, par value $.01 per share
                     --------------------------------------
                                (Title of class)

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
                                     Yes  X    No
                                         ---      ---

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405
of Regulation S-K (par. 229.405 of this chapter) is not contained herein, and
will not be contained, to the best of registrant's knowledge, in definitive
proxy or information statements incorporated by reference in Part III of this
Form 10-K or any amendment to this Form 10-K.    [ ]

Indicate by check mark whether the registration is an accelerated filer (as
defined in Exchange Act Rule 12b-2)
                                     Yes       No
                                         ---      ---

Aggregate market value of voting stock held by non-affiliates of the registrant
as of March 25, 2004 (see ITEM 5 for explanation of calculation): $ 523,577


Number of shares of common stock outstanding as of March 25, 2004:  3,987,987


                                       1
<PAGE>



                           DOCUMENTS INCORPORATED BY REFERENCE

Part III incorporates information by reference to the registrant's proxy
statement for its annual meeting of stockholders scheduled for April 22, 2004.

                                     PART I

ITEM 1.  DESCRIPTION OF BUSINESS

GENERAL DEVELOPMENT OF BUSINESS

RADVA Corporation (the "Company") was organized in 1962 as a Virginia
corporation to engage in the production of molded and fabricated products from
expandable polystyrene. Historically, the Company has specialized in the
production of customized expanded polystyrene packaging materials used to
protect products during shipment; however, the Company developed a composite
building panel produced from expanded polystyrene and steel which it sold under
the trademark THERMASTRUCTURE. During 1998, the Company sold 95% of its assets
and interest in the composite building panel system. These assets were then
transferred to a newly organized company, ThermaSteel Corporation, which
continues to market the system worldwide. During 2002, the Company reacquired an
additional 5% interest in Thermasteel Corporation, bringing its interest in
Thermasteel Corporation to 10%. The Company also has a subsidiary, Triter
Corporation, which was formed for the purpose of making the triterine referenced
to in the Annual Report letter. In March 2003, the Company transferred its
patents into Triter Corporation and sold 20% interest in Triter Corporation for
$250,000 for the purpose of obtaining funds necessary for the continued
development of the product.

PROTECTIVE PACKAGING PRODUCTS

RADVA is an industry leader in the design and manufacture of shape molded and
fabricated foam products for material handling, protective packaging, specialty
designs, point of purchase displays, insulated shipping containers, and a
variety of other needs. RADVA products are used in businesses as varied as
consumer electronics, seafood, and furniture.

RADVA's shape molded product line includes a variety of flexible and rigid,
molded and fabricated items from foam resins. RADVA products are offered as
custom-fabricated solutions to customer needs, and as standard shapes and
containers. All products share the same high quality of manufacture.

More than 400 customers, including many Fortune 500 firms, count on RADVA
solutions to help them meet their own customer's needs in a quick,
cost-effective manner.

When RADVA was incorporated in 1962, its primary production material was
expanded polystyrene (EPS). EPS remains a significant base material because of
its low cost and relatively low environmental impact. However, RADVA products
also use a variety of other materials, depending upon the customer's need.
Common materials include ARCEL(R), GECET(R), R-MER(R), EPP and EPE, PE and PU
and thermoformed PVC and styrene.

RADVA is headquartered in Radford, Virginia, and has manufacturing facilities in
Radford and Portsmouth, Virginia. These locations are within a day's drive of 75
percent of the U.S. market. Each facility includes more than 75,000 square feet
of manufacturing and warehouse space with additional off-site warehousing. More
than 30 molding presses, including new, highly efficient Kurtz & Hirsch machines
enable RADVA to meet strict customer requirements quickly and with consistent
high quality. Complete prototype and drop testing capabilities, a tool and die
shop, and very strong supplier relationships enable the firm to develop
creative, cost-effective solutions for customers.

RADVA employs approximately 100 people, and serves as one of the country's
largest three mid-Atlantic EPS recycling drop-off facilities.


                                       2
<PAGE>


RAW MATERIALS AND SUPPLIERS

The principal raw material used by the Company in the production of protective
packaging products is expandable polystyrene resin. This material may be
obtained from several major suppliers. In addition, the Company uses several
copolymer resins in the manufacture of engineered expanded foam protective
packaging. Although the copolymer resins currently used by the Company are only
available from one supplier, similar copolymer resins may be obtained from other
suppliers.

PATENTS AND TRADEMARKS

The Company holds a patent for a new construction material which the Company
plans to market in the future. The Company pursues a policy of filing for
patents on any product development that it considers to be significant.

SEASONALITY

The Company ordinarily experiences a reduction in the manufacture and sale of
protective packaging products during the winter months after filling holiday
season orders. The demand for building products is affected by the level of
activity in the construction industry and housing market and can be expected to
decrease during the fall and winter seasons when there has historically been a
decrease in construction activity and housing sales.

CUSTOMERS

The Company's protective packaging business has a broad base of customers;
however, one customer accounted for approximately 37.8% of protective packaging
revenues in 2003. See Note 13 to the Company's audited statements regarding the
loss of this customer.

BACKLOG

The Company had approximately $781,000 in backlog orders for protective
packaging products as of December 31, 2003, compared to backlog orders of
approximately $1,055,000 as of December 31, 2002. Although the Company believes
that such backlog orders are firm, the purchase orders for protective packaging
products generally may be canceled without cause by the customer. The Company
expects to fill all of these orders during 2004.

COMPETITION

The protective packaging business is highly competitive, and some of the
Company's competitors are large and have greater financial and other resources
than the Company. The Company's competition in protective packaging products is
primarily from four local and regional manufacturers with plants within or close
to the Company's market area. The principal elements of competition in the sale
of protective packaging products are price and the ability to service customers.
The Company believes that its technical design facility gives it an advantage
over competitors within its market area.

RESEARCH AND DEVELOPMENT

The Company maintains a laboratory and testing facility within its manufacturing
plant in Radford, Virginia. The laboratory and testing facilities, which consist
of 2,000 square feet is used for product testing, development of new products,
and quality control evaluations.




                                       3
<PAGE>

REGULATION

The Company is subject to state and federal laws and regulations affecting its
business, including those promulgated under the Occupational Safety and Health
Act ("OSHA") and by the Environmental Protection Agency. The Company's
manufacturing facilities are subject to compliance with comprehensive OSHA
standards. The Company believes that its manufacturing facilities and processes
are currently in compliance with OSHA and does not anticipate capital
expenditures for environmental control facilities or for compliance with OSHA
standards during 2004. The Company does not believe that its compliance with
federal and state environmental regulations has had or will have a material
effect on its capital expenditures, earnings, or competitive position.

EMPLOYEES

The Company employs approximately 100 persons. None of the Company's employees
is represented by a labor union, and the Company believes that its employee
relations are good.

EXECUTIVE OFFICERS

The following table identifies and sets forth certain information about the
executive officers of the Company

            NAME           AGE        POSITION AND YEAR OF ELECTION
            ----           ---        -----------------------------
    Luther I. Dickens      71     Chief Executive Officer (1998)
    Stephen L. Dickens     46     President and Chief Operations Officer (1998)
    William F. Fry         64     Chief Financial Officer (1989)
    Michael R. Samples     51     Vice President, Manufacturing (1999)


ITEM 2.  PROPERTIES

REAL ESTATE

The real estate owned or leased by the Company and used in the Company's primary
business operations is described below.

     (1)  The Company owns approximately 10 acres of land in Radford, Virginia,
          and a 71,000 square foot building located on the Radford property. The
          building includes approximately 5,000 square feet of office space and
          approximately 66,000 square feet of manufacturing space. The Radford
          property is subject to deeds of trust which had outstanding balances
          as of December 31, 2003 aggregating approximately $3,116,686.

     (2)  The Company owns approximately 7 acres of land in Portsmouth,
          Virginia, and a 74,000 square foot building located on the Portsmouth
          property. The building includes approximately 2,000 square feet of
          office space and approximately 42,000 square feet of manufacturing
          space. The Portsmouth property is subject to the same deed of trust
          referred to in (1) above which had an outstanding balance as of
          December 31, 2003 of approximately $3,116,686.


                                       4
<PAGE>

     (3)  The Company rents approximately 6,000 square feet of office space in
          Radford, Virginia, under a lease which requires monthly rental
          payments of $3,700. The property is rented to the Company by a
          partnership in which Mr. Dickens has an interest.

PERSONAL PROPERTY AND EQUIPMENT

The personal property and equipment at the main Radford plant and the Portsmouth
plant consist principally of machinery and equipment used to produce expanded
polystyrene products.

The Company owns 2 trucks and 14 trailers and leases 2 tractors which are used
to ship products to customers. The Company owns 1 van and 7 cars which it uses
principally for sales and sales service functions. The Company believes that its
present equipment is adequate, well maintained, and in good operating condition.

ITEM 3.  LEGAL PROCEEDINGS

         None

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

         None.

                                     PART II

                                STOCK INFORMATION

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

MARKET AND PRICE INFORMATION

The Company's common stock, par value $.01 per share (the "Common Stock"), has
been traded in the over-the-counter market since June 1986. The following table
provides the high and low bid quotations with respect to shares of the Common
Stock for the periods indicated as reported by the Dow Jones Historical Stock
Quote Reporter Service.

<TABLE>
<CAPTION>
                      2003                  2002                  2001
                      ----                  ----                  ----
                 High      Low         High      Low         High       Low
                 ----      ---         ----      ---         ----       ---
<S>             <C>        <C>        <C>       <C>          <C>      <C>
First
Quarter           .22      .18          .30      .20         7/32      13/64


Second
Quarter           .30      .15          .30      .22         19/64     11/64

Third
Quarter           .24      .18          .35      .20         21/64     17/64


Fourth
Quarter           .45      .23          .22      .15         17/64     9/64
</TABLE>


                                       5
<PAGE>

The foregoing quotations of high and low bid prices represent prices between
dealers and do not include retail mark-up, mark-down, or commissions. They do
not necessarily represent actual transactions. There was no established public
trading market for the Common Stock before June 1986.

The aggregate market value of the voting stock held by non-affiliates of the
Company as of March 25, 2004 shown on the facing page of this report was
calculated as follows: the number of shares beneficially owned by the officers
and directors of the Company as a group as of March 25, 2004 was subtracted from
3,987,987, the total number of shares outstanding on that date, and the
resulting figure was multiplied by $.31, the average of the bid and asked prices
of the Company's stock in the over-the-counter market on March 25, 2004. The
foregoing calculation should not be deemed an admission that any of the officers
or directors of the Company is an "affiliate" of the Company.

NUMBER OF STOCKHOLDERS
As of March 25, 2004 there were 279 record holders of the Common Stock.

DIVIDENDS

The Company has not declared cash dividends on the Common Stock during its three
most recent fiscal years. The declaration and payment of dividends is entirely
within the discretion of the Board of Directors of the Company and will depend
upon the earnings, capital requirements, and financial condition of the Company.
The Company anticipates that it will retain earnings for the next several years
to finance the development of its business.

ITEM 6.  SELECTED FINANCIAL DATA
SELECTED STATEMENTS OF
INCOME (LOSS) DATA:
<TABLE>
<CAPTION>
                                                      Years Ended December 31,
                                ----------------------------------------------------------------------
                                2003            2002            2001             2000             1999
                                ----            ----            ----             ----             ----
                                       (Dollar amounts in thousands except per share data)
<S>                         <C>              <C>             <C>              <C>              <C>
Net Revenues                 $  9,618         $  9,352        $  9,629         $ 10,077         $ 10,186
Income (loss) before
  income taxes or
  extraordinary items             (84)             126             (68)          (1,076)             276
Minority interest in
  Subsidiary                       19             --              --               --               --
Net income (loss)                 (66)             126             277           (1,076)             276
Net income (loss) per
  common share                   (.02)             .03             .07             (.27)             .07
</TABLE>


SELECTED BALANCE
SHEET DATA:
<TABLE>
<CAPTION>
                                                      Years Ended December 31,
                                ----------------------------------------------------------------------
                                2003            2002            2001             2000             1999
                                ----            ----            ----             ----             ----
                                          (Dollar amounts in thousands)
<S>                         <C>              <C>             <C>              <C>              <C>
Working capital              $    356        $    266        $    158        $   (800)        $    974
Net property, plant,
  and equipment                 3,540           3,765           4,242           4,844            4,945
Total assets                   10,307          10,572          10,562          11,486           11,963
Long-term debt (including
  current maturities)           3,279           3,355           3,458           4,202            4,738
Stockholders' equity            4,625           4,725           4,611           4,076            5,177
</TABLE>


                                       6
<PAGE>



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


RESULTS OF OPERATION

The following table sets forth the percentage relationship that certain items in
the statements of operations bear to the net revenues of the Company for each
year during the five-year period ended December 31, 2003.

<TABLE>
<CAPTION>
                                                                     Year Ended December 31
                                               -----------------------------------------------------------------
                                               2003           2002            2001           2000           1999
                                               ----           ----            ----           ----           ----
<S>                                          <C>            <C>            <C>            <C>            <C>
Manufacturing net revenues                    100.0%         100.0%         100.0%         100.0%         100.0%
                                              -----          -----          -----          -----          -----

Cost and expense:
Cost of sales                                  76.6%          72.0%          75.5%          86.4%          74.8%
Shipping and sales                             11.2%          10.4%           8.7%           9.2%           7.4%
General and administrative                     11.3%          13.8%          13.4%          12.8%          12.6%
Research and development                         .9%           1.2%           1.1%           0.0%           0.0%
                                              -----          -----          -----          -----          -----
                                              100.0%          97.4%          98.7%         108.4%          94.8%
                                              -----          -----          -----          -----          -----

     Operating income (loss)                    0.0%           2.6%           1.3%          (8.4%)          5.2%
                                              -----          -----          -----          -----          -----

Other income (deductions)
   Interest expense                            (3.2%)         (4.0%)         (4.9%)         (5.2%)         (4.5%)
   Interest income                              1.4 %          1.4%           1.9%           2.2%           1.7%
   Other                                         .9%           1.2%           0.4%           0.3%           0.1%
                                              -----          -----          -----          -----          -----

                                                (.9%)         (1.4%)         (2.6%)         (2.7%)         (2.7%)
                                              -----          -----          -----          -----          -----
Income (loss) before income
   taxes, extraordinary gain,
   and minority interest in subsidiary          (.9%)          1.3%           (.7%)        (10.7%)          2.7%
Income tax expense                              0.0 %          0.0%           0.0%           0.0%           0.0%
Extraordinary gain                              0.0%           0.0%           3.6%           0.0%           0.0%
                                              -----          -----          -----          -----          -----


Net income (loss)                               (.7%)          1.3%           2.9%         (10.7%)          2.7%
                                              =====          =====          =====          =====          =====
</TABLE>

                                       7
<PAGE>




2003 COMPARED TO 2002
Although revenue increased $266,000 from $9,352,000 in 2002 to $9,618,000 in
2003, the Company incurred a loss of $66,000 in 2003 compared to having reported
a net profit of $126,000 for 2002. This deterioration in operations in 2003 was
primarily the result of a write down of inventories of approximately $65,000 and
rising costs of natural gas and raw materials without a commensurate increase in
sales prices.

Cost of sales, as a percent of revenues, was up 4.6% from 72.0% in 2002 to 76.6%
in 2003. As stated above, inventories were written down approximately $65,000
and natural gas and raw material prices were up sharply. Natural gas cost for
the Company's Radford and Portsmouth plants increased $148,000 and $113,000,
respectively, accounting for approximately one half of the percentage increase
in cost of sales. Direct materials accounted for approximately another 5.8%
increase in cost of sales, offset by a reduction of labor and supervision cost
on increased sales, reducing the percentage increase in cost of sales by
approximately two percent.

Shipping and selling expenses increased $100,000 or from 10.4% of revenues in
2002 to 11.2% in 2003. This increase was due to a combination of factors,
primarily increased freight out costs of $53,000 at the Portsmouth plant
resulting from a change in sales mix and a change in shipping terms and
increased cost of warehouse labor of $75,000.

General and administrative expenses decreased $202,000 as a result of many
factors. Amortization decreased by $48,000 due to a change in generally accepted
accounting principles. Bad debts, salaries, depreciation and travel were down a
total of $81,000, all about equally.

2002 COMPARED TO 2001
Although net income in 2001, aided by an extraordinary gain of $345,000, was
higher than 2002 by $151,000, the Company's operating income doubled in 2002,
from $124,000 in 2001 to $246,000 in 2002. This increase in operating income was
achieved in spite of a decrease in sales of $278,000. Other income increased due
to the Company having provided $100,000 in managerial services to Thermasteel
Corporation in which the Company has a ten percent ownership interest.

Cost of sales, as a percentage of manufacturing revenues, decreased 3.5%, from
75.5% in 2001 to 72.0% in 2002. The most significant factor contributing to this
decrease in cost percentage was a reduction of the cost of gas and oil of
$309,000.

Shipping and selling expenses, as a percentage of manufacturing revenues,
increased 1.7%, from 8.7% in 2001 to 10.4% in 2002. Freight costs were greater
in 2002 by $239,000 due to a change in some shipping terms from FOB shipping
point to FOB destination. Partly offsetting the increase in freight costs were
reductions in sales salaries and commissions at the Company's Portsmouth plant
of $40,000 and a reduction of driver and shipping labor at the Company's Radford
plant by $51,000.

General and administrative and research and development expenses were little
changed from 2001 to 2002. The research and development expenses are incurred in
the development of a new product, triterine, referenced in the Annual Report
letter which is unrelated to the Company's primary packaging business.

2001 COMPARED TO 2000
The Company's operating income was $124,000 in 2001 compared to an operating
loss of $852,000 in 2000. This dramatic improvement in operations was a result
of many factors and was achieved in spite of a $448,000 reduction in revenues
from $10,077,000 in 2000 to $9,629,000 in 2001. Before allocating interest or
corporate overhead cost, the Radford and Portsmouth plants increased operating
income by $623,000 and $598,000, respectively. This improvement in operating
income resulted from a combination of increased sales prices, sharply lower
costs for raw materials and increased labor efficiency.


                                       8
<PAGE>


Cost of sales, as a percent of manufacturing net revenues, decreased 10.9%, from
86.4% in 2000 to 75.5% in 2001. Among the many factors contributing to this
10.9% reduction in costs were lower raw material prices and increased labor
efficiencies partly offset by increased cost for oil and gas. Raw material costs
percentages decreased from 29.8% in 2000 to 21.9% in 2001 at the Company's
Radford plant and decreased from 43.3% in 2000 to 38.6% in 2001 at the Company's
Portsmouth plant. The higher material cost at the Portsmouth plant results from
the use of a different mix of resins. Labor percentages decreased from 28.0% in
2000 to 25.4% in 2001 at the Company's Radford plant and decreased from 22.5% in
2000 to 18.7% in 2001 at the Company's Portsmouth plant.


Shipping and selling expenses decreased by .5% and general and administrative
expenses increased by .6% in 2001 as compared to 2000. The Company spent
$103,000 on research and development in 2001 in efforts to prepare the Company's
patented new heat resistant building material, Triterine, for production and
marketing which is scheduled for 2002.


The Company negotiated a $400,000 reduction in the amount owed its bank as part
of a successful refinancing effort, resulting in a net extraordinary gain of
$345,000.


IMPACT OF INFLATION

A significant increase in the rate of inflation and a concomitant increase in
interest rates could adversely affect the Company since a large portion of the
Company's indebtedness is linked to the prime interest rate.


LIQUIDITY AND CAPITAL RESOURCES

A major refinancing of the Company was accomplished in 2001 which resulted in
longer amortization of the Company's long-term debt. Working capital increased
from $266,000 at December 31, 2002 to $356,000 at December 31, 2003. The Company
had $94,000 available on its line of credit at year-end.




                                       9
<PAGE>




ITEM 8.  FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA


INDEX TO FINANCIAL STATEMENTS

                                                                        Page
                                                                        ----
Independent Auditors' Reports.......................................     14

Balance Sheets as of December 31, 2003 and 2002.....................    15-16

Statements of Operations for the Years Ended
   December 31, 2003, 2002, and 2001................................    17-18

Statements of Stockholders' Equity for the Years
   Ended December 31, 2003, 2002, and 2001..........................     19

Statements of Cash Flows for the Years
   Ended December 31, 2003, 2002, and 2001..........................    20-21

Notes to Financial Statements as of December 31,
   2003, 2002, and 2001.............................................    22-31



INDEX TO FINANCIAL STATEMENT SCHEDULES


Schedule V  - Property, Plant and Equipment.........................     32

Schedule VI - Accumulated Depreciation and
   Amortization of Property, Plant, and Equipment...................     33

Schedule VIII - Valuation and Qualifying Accounts...................     34



                                       10
<PAGE>


                          INDEPENDENT AUDITOR'S REPORT




The Board of Directors and Stockholders
RADVA Corporation

We have audited the consolidated financial statements and the consolidated
financial statement schedules of RADVA Corporation and subsidiary as of and for
the years ended December 31, 2003 and 2002 as listed in the accompanying index.
These financial statements and financial statement schedules are the
responsibility of the Company's management. Our responsibility is to express an
opinion on these financial statements and financial statement schedules based on
our audits.

We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to above present
fairly, in all material respects, the financial position of RADVA Corporation
and subsidiary as of December 31, 2003 and 2002, and the results of their
operations and their cash flows for the years then ended in conformity with
accounting principles generally accepted in the United States of America. In
addition, in our opinion, the 2003 and 2002 financial statement schedules
referred to above, when considered in relation to the basic financial statements
taken as a whole, present fairly, in all material respects, the information
required to be included therein.




Galax, Virginia
February 13, 2004


                                       11
<PAGE>



                        RADVA CORPORATION AND SUBSIDIARY

                           CONSOLIDATED BALANCE SHEETS
                           DECEMBER 31, 2003 AND 2002


<TABLE>
<CAPTION>
                                                                     2003               2002
                                                                     ----               ----
<S>                                                              <C>               <C>
                 ASSETS
Current assets:
   Cash and cash equivalents (Notes 2 and 3)                     $   251,456        $   108,306
                                                                 -----------        -----------

   Accounts and notes receivable (Notes 7 and 8)                   1,207,452          1,580,729
   Receivable - other (Notes 3)                                      244,560            171,610
   Less allowance for doubtful accounts                              112,552             57,159
                                                                 -----------        -----------
         Net receivables                                           1,339,460          1,695,180
                                                                 -----------        -----------

   Inventories (Notes 7 and 8):
     Finished goods                                                  722,637            781,601
     Raw materials and supplies                                      343,367            259,482
                                                                 -----------        -----------
         Total inventories                                         1,066,004          1,041,083
                                                                 -----------        -----------

   Prepaid expenses                                                   70,569             77,562
                                                                 -----------        -----------

         Total current assets                                      2,727,489          2,922,131
                                                                 -----------        -----------

Property, plant and equipment, at cost (Notes 5, 7 and 8)          9,708,634          9,404,006
Less accumulated depreciation and amortization                     6,168,566          5,639,458
                                                                 -----------        -----------
         Net property, plant and equipment                         3,540,068          3,764,548
                                                                 -----------        -----------

Other assets, at cost, less accumulated amortization:
   Investment in Thermasteel (Note 21)                               558,065            558,065
   Trademark, marketing and manufacturing rights                     395,013            395,013
   Note receivable - long-term                                     2,630,803          2,550,614
   Other (Note 16)                                                   455,568            381,201
                                                                 -----------        -----------
                                                                   4,039,449          3,884,893
                                                                 -----------        -----------
                                                                 $10,307,006        $10,571,572
                                                                 ===========        ===========
</TABLE>



continued


                                       12
<PAGE>




                        RADVA CORPORATION AND SUBSIDIARY

                     CONSOLIDATED BALANCE SHEETS (CONTINUED)


<TABLE>
<CAPTION>

                                                                                  2003                 2002
                                                                                  ----                 ----
<S>                                                                          <C>                  <C>
    LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
   Current installments of long-term debt (Notes 3 and 8)                     $    200,084         $    164,559
   Notes payable (Notes 7 and 11):
     Line of credit                                                              1,186,360            1,434,635
Related parties                                                                     21,308               40,000
   Accounts payable                                                                841,948              852,602
   Accrued expenses (Note 6)                                                       121,347              164,360
                                                                              ------------         ------------
         Total current liabilities                                               2,371,047            2,656,156
                                                                              ------------         ------------

Long-term liabilities:
   Long-term debt, excluding current installments
     (Notes 3 and 8)                                                             3,016,024            3,127,367
   Accrued expenses (Note 6)                                                        63,055               63,055
                                                                              ------------         ------------
         Total long-term liabilities                                             3,079,079            3,190,422
                                                                              ------------         ------------

         Total liabilities                                                       5,450,126            5,846,578
                                                                              ------------         ------------

Commitments, contingencies and other matters
   (Notes 8, 12, 16 and 17)

Minority interest in Triter Corporation                                            231,497                 --
                                                                              ------------         ------------

Stockholders' equity:
   Preferred stock, 8% cumulative convertible, par value $.01
     per share ($300,000 aggregate liquidation preference);
     authorized 1,000,000 shares; issued and outstanding 600,000
     shares in 2003 and 2002                                                         6,000                6,000
   Common stock, par value $.01 per share; authorized
     10,000,000 shares; issued and outstanding 3,987,987 and 3,987,987
     shares in 2003 and 2002                                                        39,880               39,880
   Additional paid-in capital                                                    4,735,305            4,735,305
   Retained earnings (deficit)                                                    (155,802)             (56,191)
                                                                              ------------         ------------
         Total stockholders' equity                                              4,625,383            4,724,994
                                                                              ------------         ------------
                                                                              $ 10,307,006         $ 10,571,572
                                                                              ============         ============
</TABLE>




See notes to consolidated financial statements.


                                       13
<PAGE>




                        RADVA CORPORATION AND SUBSIDIARY

                      CONSOLIDATED STATEMENTS OF OPERATIONS
                  YEARS ENDED DECEMBER 31, 2003, 2002 AND 2001


<TABLE>
<CAPTION>
                                                                                     2003              2002              2001
                                                                                     ----              ----              ----
<S>                                                                               <C>              <C>                <C>
Net revenues:
   Manufacturing net revenues                                                     $ 9,618,185       $ 9,351,621       $ 9,629,272
                                                                                  -----------       -----------       -----------
Costs and expenses:
   Cost of sales                                                                    7,370,110         6,732,897         7,269,170
   Shipping and selling expenses                                                    1,075,204           975,188           838,274
   General and administrative expenses                                              1,086,291         1,287,950         1,294,145
   Research and development expenses (Note 14)                                         85,109           109,394           103,309
                                                                                  -----------       -----------       -----------

                                                                                    9,616,714         9,105,429         9,504,898
                                                                                  -----------       -----------       -----------

         Operating income (loss)                                                        1,471           246,192           124,374
                                                                                  -----------       -----------       -----------

Other income (expense):
   Interest expense                                                                  (304,023)         (375,770)         (468,804)
   Interest income                                                                    131,739           130,401           185,138
   Other                                                                               86,110           112,656            37,291
                                                                                  -----------       -----------       -----------
                                                                                      (86,174)         (132,713)         (246,375)
                                                                                  -----------       -----------       -----------

                                                                                      (84,703)         (113,479)         (122,001)
                                                                                  -----------       -----------       -----------

Gain (loss) on sale of assets:
   Equipment                                                                             --               1,000             6,149
   Real estate                                                                           --              11,739            47,761
                                                                                  -----------       -----------       -----------
                                                                                         --              12,739            53,910
                                                                                  -----------       -----------       -----------

Income (loss) before income taxes, extraordinary item, and minority interest          (84,703)          126,218           (68,091)

Provision for income taxes (Note 9)                                                      --                --                --
                                                                                  -----------       -----------       -----------

     Net income (loss) before extraordinary item and minority interest                (84,703)          126,218           (68,091)

Extraordinary item (Note 15):
   Gain on early extinguishment of debt (less income tax benefit of $-0-)                --                --             345,283

   Minority interest in Triter Corporation                                             18,503              --                --
                                                                                  -----------       -----------       -----------

     Net income (loss)                                                            $   (66,200)      $   126,218       $   277,192
                                                                                  ===========       ===========       ===========
</TABLE>



                                       14
<PAGE>

                        RADVA CORPORATION AND SUBSIDIARY

                CONSOLIDATED STATEMENTS OF OPERATIONS (CONTINUED)


<TABLE>
<CAPTION>

                                                                            2003           2002            2001
                                                                            ----           ----            ----
<S>                                                                    <C>             <C>             <C>
Income per common share (Note 18):
Basic earnings per share:
     Income (loss) before extraordinary item and minority interest      $     (.02)     $      .03      $     (.02)
                                                                        ==========      ==========      ==========

     Extraordinary item                                                 $     --        $     --        $      .09
                                                                        ==========      ==========      ==========
     Minority interest                                                  $     --        $     --        $     --
                                                                        ==========      ==========      ==========
     Net income (loss)                                                  $     (.02)     $      .03      $      .07
                                                                        ==========      ==========      ==========
Diluted earnings per share:
     Income (loss) before extraordinary item and minority interest      $     (.02)     $      .03      $     (.02)
                                                                        ==========      ==========      ==========
     Extraordinary item                                                 $     --        $     --        $      .08
                                                                        ==========      ==========      ==========
     Minority interest                                                                  $     --        $     --
                                                                        ==========      ==========      ==========
     Net income (loss)                                                  $     (.02)     $      .03      $      .06
                                                                        ==========      ==========      ==========

Weighted average number of shares outstanding:
         Basic                                                           3,987,987       3,987,987       3,987,987
         Diluted                                                         4,587,987       4,587,987       4,187,987


</TABLE>




See notes to consolidated financial statements.


                                       15
<PAGE>




                        RADVA CORPORATION AND SUBSIDIARY

                 CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
                  YEARS ENDED DECEMBER 31, 2003, 2002 AND 2001


<TABLE>
<CAPTION>
                                                                     ADDITIONAL        RETAINED          TOTAL
                                   PREFERRED          COMMON          PAID-IN          EARNINGS       STOCKHOLDERS'
                                     STOCK            STOCK           CAPITAL         (DEFICIT)          EQUITY
                                  -----------      -----------      -----------      -----------       -----------
<S>                              <C>              <C>              <C>              <C>               <C>
Balance at December 31, 2000      $      --        $    39,880      $ 4,483,506      $  (447,335)      $ 4,076,051
Issued stock                            6,000             --            251,799             --             257,799
Net loss                                 --               --               --            277,192           277,192
                                  -----------      -----------      -----------      -----------       -----------

Balance at December 31, 2001            6,000           39,880        4,735,305         (170,143)        4,611,042
Net income                               --               --               --            126,218           126,218
Dividends paid                           --               --               --            (12,266)          (12,266)
                                  -----------      -----------      -----------      -----------       -----------

Balance at December 31, 2002            6,000           39,880        4,735,305          (56,191)
                                                                                                         4,724,994
Net loss                                 --               --               --            (66,200)          (66,200)
Dividends paid                           --               --               --            (33,411)          (33,411)
                                  -----------      -----------      -----------      -----------       -----------

Balance at December 31, 2003      $     6,000      $    39,880      $ 4,735,305      $  (155,802)      $ 4,625,383
                                  ===========      ===========      ===========      ===========       ===========
</TABLE>




See notes to consolidated financial statements.


                                       16
<PAGE>



                        RADVA CORPORATION AND SUBSIDIARY

                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                  YEARS ENDED DECEMBER 31, 2003, 2002 AND 2001

<TABLE>
<CAPTION>
                                                                        2003              2002             2001
                                                                        ----              ----             ----
<S>                                                                <C>               <C>               <C>
Cash flows from operating activities:
   Net income (loss)                                                $   (66,200)      $   126,218       $   277,192

   Adjustments to reconcile net income (loss) to net cash
     provided by operating activities:
       Depreciation                                                     529,108           592,154           654,850
       Amortization                                                      15,457            55,267            50,693
       Allowance for doubtful accounts                                   55,393           (23,519)           (2,896)
       Minority interest in net loss of Triter Corporation              (18,503)             --                --
       Gain on sale of assets                                              --             (12,739)          (53,910)
       Changes in assets and liabilities:
         Decrease (increase) in accounts and notes receivable           373,277          (408,392)          607,849
         Decrease (increase) in receivable - other                      (72,950)          (88,212)          150,498
         Decrease (increase) in inventories                             (24,921)           13,917          (191,276)
         Decrease (increase) in prepaid expenses                          6,993            76,678           (54,063)
         Increase in note receivable - noncurrent                       (80,189)          (74,598)          (43,667)
         Decrease (increase) in other assets                            (89,824)              533          (136,742)
         Decrease in accounts payable                                   (10,654)         (215,148)         (547,606)
         Decrease in accrued expenses                                   (43,013)          (23,074)          (31,564)
                                                                    -----------       -----------       -----------
           Net cash provided by operating activities                    573,974            19,085           679,358
                                                                    -----------       -----------       -----------

Cash flows from investing activities:
   Proceeds from sale of assets                                            --              58,739            83,473
   Capital expenditures on equipment                                   (304,629)         (160,894)          (81,810)
                                                                    -----------       -----------       -----------
           Net cash provided by (used in) investing activities         (304,629)         (102,155)            1,663
                                                                    -----------       -----------       -----------

Cash flows from financing activities:
   Net proceeds (payments) on notes payable                            (266,967)          295,775          (132,257)
   Proceeds from issuance of long-term debt                             106,840              --           3,450,000
   Principal payments on long-term debt                                (182,657)         (161,818)       (4,197,926)
   Minority interest in Triter Corporation contributions                250,000              --                --
   Issuance of Series A 8.00% preferred stock                              --                --             257,799
   Preferred dividend paid                                              (33,411)          (12,266)             --
                                                                    -----------       -----------       -----------
           Net cash provided by (used in) financing activities         (126,195)          121,691          (622,384)
                                                                    -----------       -----------       -----------

Net increase in cash                                                    143,150            38,621           (58,637)
Cash and cash equivalents at beginning of year                          108,306            69,685            11,048
                                                                    -----------       -----------       -----------
Cash and cash equivalents at end of year                            $   251,456       $   108,306       $    69,685
                                                                    ===========       ===========       ===========

Supplemental disclosure of cash flow information:
   Cash paid during the year for interest                           $   305,988       $   392,646       $   454,814
                                                                    ===========       ===========       ===========
   Cash paid during the year for income taxes                       $      --         $     1,500       $      --
                                                                    ===========       ===========       ===========
</TABLE>

continued


                                       17
<PAGE>

                        RADVA CORPORATION AND SUBSIDIARY

                CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)



Supplemental disclosure of noncash investing activities:

During 2002 Radva acquired an additional 5% interest in Thermasteel Corporation
by forgiveness of a certain portion of debt receivable from Thermasteel which
resulted in a transfer of the following assets:

         Assets transferred:
           Notes receivable                      $ 296,140
           Investment retained (5%)               (296,140)
                                                 ---------
                                                 $      -
                                                 =========




See notes to consolidated financial statements.


                                       18
<PAGE>

                        RADVA CORPORATION AND SUBSIDIARY

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                        DECEMBER 31, 2003, 2002 AND 2001

NOTE 1.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Operations

RADVA Corporation and subsidiary (the Company) are custom designers of material
handling solutions and manufacturers of protective packaging materials and
containers. The Company operates facilities in Radford and Portsmouth, Virginia.

Principles of Consolidation

The consolidated financial statements include the accounts of the Company and
its 80% owned subsidiary, Triter Corporation. All material intercompany
transactions have been eliminated in consolidation.

Cash and Cash Equivalents

Cash and cash equivalents consist primarily of demand deposits. For purposes of
the statements of cash flows, the Company considers all highly liquid
investments with an original maturity of less than three months to be cash
equivalents. The Company includes cash meeting this criteria whose use is
limited by restrictions contained in loan covenants.

Accounts Receivable

Accounts receivable are stated at cost less allowance for doubtful accounts. The
allowance for doubtful accounts is maintained at a level considered adequate to
provide for losses that can be reasonably anticipated.

Inventories

Inventories are stated at the lower of cost or market. Cost of raw materials,
supplies, work-in process and finished goods is determined by the first-in,
first-out method.

Investment in Thermasteel Corp.

As part of transferring certain assets and liabilities to Thermasteel Corp.,
Radva retained a 10% ownership interest. Company accounts for this investment on
the cost basis.

Other assets

Included in other assets are patents, loan costs and marketing and manufacturing
rights, which are amortized over their respective estimated lives, and trademark
rights. Under Financial Accounting Standards Board Statement No. 142, "Goodwill
and Other Intangible Assets", goodwill and intangible assets deemed to have
indefinite lives will no longer be amortized, but will be subject to periodic
impairment tests in accordance with the statement. In accordance with Statement
No. 142, the company no longer amortizes intangible assets with indefinite
lives. Accumulated amortization was $1,504,053 and $1,488,596 as of December 31,
2003 and 2002, respectively.


                                       19
<PAGE>



                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


NOTE 1.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Property, Plant and Equipment

Depreciation of plant and equipment is provided on the straight-line basis over
the estimated useful lives of the respective assets as follows:

                Buildings and improvements             5 to 30 years
                Machinery and equipment                5 to 15 years
                Automotive equipment                   3 to 5 years
                Office equipment                       3 to 10 years

Leasehold improvements are amortized on a straight-line basis over the terms of
the respective leases.

Additions to property, plant and equipment are recorded at cost. All
expenditures for repairs, renewals and replacements which do not materially
extend the useful life of the property are charged to expense. Other
improvements and betterments are capitalized. With respect to dispositions, the
asset and accumulated depreciation accounts are relieved of cost and accumulated
depreciation with any resulting gain or loss credited or charged to earnings.

Revenue Recognition

Net revenues represent sales of protective packaging materials and containers.
Revenues from sales are recognized upon completion of the transaction.

Advertising

Advertising costs are expensed as incurred and included in shipping and selling
expenses. Advertising expense amounted to $4,692, $12,128, and $6,801 for the
years ended December 31, 2003, 2002, and 2001, respectively.

Income Taxes

Deferred taxes are provided on a liability method whereby deferred tax assets
are recognized for deductible temporary differences and operating loss and tax
credit carryforwards and deferred tax liabilities are recognized for taxable
temporary differences. Temporary differences are the differences between the
reported amounts of assets and liabilities and their tax bases. Deferred tax
assets are reduced by a valuation allowance when, in the opinion of management,
it is more likely than not that some portion or all of the deferred tax assets
will not be realized. Deferred tax assets and liabilities are adjusted for the
effects of changes in tax laws and rates on the date of enactment.

Investment tax credits are accounted for by the flow-through method whereby they
reduce income taxes currently payable and the provision for income taxes in the
period the assets giving rise to such credits are placed in service. To the
extent such credits are not currently utilized on the Company's tax return,
deferred tax assets, subject to considerations about the need for a valuation
allowance, are recognized for the carryforward amount.


                                       20
<PAGE>


                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Fair value of financial instruments

Statement of Financial Accounting Standards No. 107, "Disclosures about Fair
Value of Financial Instruments," requires disclosure about the fair value of
certain instruments. Cash, receivables, accounts payable and accrued liabilities
are reflected in the financial instruments at fair value because of the
short-term maturity of these instruments. The estimated fair values of the
company's financial instruments are disclosed in Note 3.

Use of estimates

The preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could vary from the estimates that
were used.

Reclassification

Certain reclassifications have been made to prior years' financial statements to
place them on a comparable basis with the current year.

NOTE 2.  CASH AND CASH EQUIVALENTS

Cash and cash equivalents consist of the following:
<TABLE>
<CAPTION>
                                                               2003            2002             2001
                                                               ----            ----             ----
<S>                                                         <C>             <C>             <C>
Petty cash and non-interest bearing accounts                 $ 251,456       $ 108,306       $  69,685
                                                             =========       =========       =========
</TABLE>

NOTE 3.  FAIR VALUE OF FINANCIAL INSTRUMENTS

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

Cash and cash equivalents:

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

Receivable - other:

The carrying amount is a reasonable estimate of fair value since entire amount
is due within one year.

Long-term debt:

The fair value of the Company's long-term debt is estimated based on the quoted
market prices for the same or similar issues or on the current rates offered to
the Company for debt of the same remaining maturities with similar collateral
requirements.


                                       21
<PAGE>


                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 3.  FAIR VALUE OF FINANCIAL INSTRUMENTS (CONTINUED)

The estimated fair values of the Company's financial instruments as of
December 31, 2003 are as follows:

<TABLE>
<CAPTION>
                                                                                    2003
                                                                    ---------------------------------
                                                                    Carrying Amount        Fair Value
                                                                    ---------------        ----------

<S>                                                                    <C>                 <C>
Cash and cash equivalents                                              $  251,456          $  251,456
Receivable - other                                                        224,560             224,560
Notes payable                                                           1,207,668           1,207,668
Long-term debt                                                          3,216,108           3,712,267
</TABLE>

NOTE 4.  RECEIVABLES

Information about impaired receivables as of and for the years ended
December 31, 2003 and 2002 is as follows:

<TABLE>
<CAPTION>
                                                                          2003                2002
                                                                          ----                ----
<S>                                                                   <C>                 <C>
   Receivables for which there is a related
     allowance for bad debts                                           $     --            $     --
   Receivables for which there is no related
     allowance for bad debts                                                 --                  --
                                                                       ----------          ----------
       Total impaired receivables                                      $     --            $     --
                                                                       ==========          ==========
   Related allowance for possible bad debts                            $     --            $     --
                                                                       ==========          ==========
   Average balance (based on beginning and
     ending of year)                                                   $     --            $   24,000
                                                                       ==========          ==========
</TABLE>

NOTE 5.  PROPERTY, PLANT AND EQUIPMENT

A summary of property, plant and equipment follows:
<TABLE>
<CAPTION>
                                                                          2003                2002
                                                                          ----                ----
<S>                                                                    <C>                 <C>
       Land and improvements                                           $  169,565          $  169,565
       Buildings and improvements                                       3,140,772           3,119,718
       Machinery and equipment                                          5,705,017           5,425,780
       Transportation equipment                                           372,129             372,129
       Office equipment                                                   321,151             316,814
                                                                       ----------          ----------
                                                                       $9,708,634          $9,404,006
                                                                       ==========          ==========
</TABLE>

NOTE 6.  ACCRUED EXPENSES

Current accrued expenses are composed of the following:
<TABLE>
<CAPTION>
                                                                          2003                2002
                                                                          ----                ----
<S>                                                                    <C>                 <C>
       Payroll and employee benefits                                   $   91,361          $  111,161
       Commissions                                                          7,816               7,013
       Interest                                                              --                   965
       Customer deposits                                                      794                 794
       Other                                                               21,376              43,427
                                                                       ----------          ----------
                                                                       $  121,347          $  164,360
                                                                       ==========          ==========
Long-term accrued expenses are composed of the following:
         Commissions                                                   $   63,055          $   63,055
                                                                       ==========          ==========
</TABLE>

                                       22
<PAGE>

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


NOTE 7.  NOTES PAYABLE

A summary of notes payable follows:

<TABLE>
<CAPTION>
                                                                          2003                2002
                                                                          ----                ----
<S>                                                                    <C>                 <C>
       Related parties, interest at 8%, unsecured (Note 11)             $  21,308          $   40,000

       Line of credit with commercial lender, $1,500,000
       limit, interest at prime plus 2.25%, secured by all of
       the Company's assets                                             1,186,360           1,434,635
                                                                       ----------          ----------
                                                                       $1,207,668          $1,474,635
                                                                       ==========          ==========
</TABLE>

NOTE 8.  LONG-TERM DEBT

A summary of long-term debt follows:
<TABLE>
<CAPTION>
                                                                                      2003              2002
                                                                                      ----              ----

<S>                                                                                <C>               <C>
   Installment note payable to bank, due in variable monthly installments,
   including interest at prime plus 2.25% (6.25% at
   December 31, 2003); collateralized by all of the Company's assets                $1,906,850        $1,954,522

   Installment note payable to bank, due in variable monthly installments
   including interest at prime plus 2.25% (6.25% at
   December 31, 2003); collateralized by all of the Company's assets                 1,209,837         1,326,801

   Installment note payable to bank, due in variable monthly installments of
   including interest at prime plus 1.25%; (5.25% at
   December 31, 2003); collateralized by equipment                                      94,375              --

   Installment note payable to bank, due in monthly installments of
   $527, including interest at 9.5%; collateralized by equipment                         5,046            10,603
                                                                                    ----------        ----------

         Total long-term debt                                                        3,216,108         3,291,926

   Less current installments of long-term debt                                         200,084           164,559
                                                                                    ----------        ----------

         Long-term debt, excluding current installments                             $3,016,024        $3,127,367
                                                                                    ==========        ==========
</TABLE>

Substantially all real property, equipment, accounts receivable and inventory
are pledged as collateral on various debt instruments.



                                       23
<PAGE>

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


NOTE 8.  LONG-TERM DEBT (CONTINUED)

The aggregate principal maturities of long-term debt during each of the five
years subsequent to December 31, 2003 follows:

         Years Ended December 31,

               2004                         $  200,084
               2005                            207,362
               2006                            220,491
               2007                            234,446
               2008                            235,136
               Thereafter                    2,118,589
                                            ----------
                                            $3,216,108

NOTE 9. INCOME TAX MATTERS

Net deferred tax assets and liabilities consist of the following components as
of December 31, 2003 and 2002:

<TABLE>
<CAPTION>
                                                           2003          2002
                                                           ----          ----
<S>                                                    <C>          <C>

       Deferred tax assets:
         Bad debt allowance                             $  42,770    $  21,720
         Accrued expenses                                  24,136       25,097
         Bonuses                                            1,582        9,042
         Inventory allowance                               13,003       16,536
         Loss carryforward                                623,800      661,707
         Minimum tax credit carryforward                   34,133       34,133
                                                        ---------    ---------
                                                          739,423      768,235
       Less valuation allowance                           511,787      504,230
                                                        ---------    ---------
                                                        $ 227,636    $ 264,005
                                                        =========    =========
       Deferred tax liabilities:
         Property and equipment                         $ 227,636    $ 264,005
                                                        =========    =========
                                                        $       -    $       -
                                                        =========    =========

</TABLE>

As noted, the deferred tax assets equal the deferred tax liabilities resulting
in no effect on the income statement or stockholders' equity for the year.

The income tax provision differs from the amount of income tax determined by
applying the U.S. Federal income tax rate to pretax income for the years ended
December 31, 2003, 2002 and 2001 due to the following:

<TABLE>
<CAPTION>
                                                                         2003          2002          2001
                                                                         ----          ----          ----
<S>                                                                   <C>           <C>           <C>
     Computed "expected" tax benefit                                  $       -     $  32,475     $  91,355
     Non-deductible expenses                                                  -        22,134        22,882
     State income taxes, net of federal income tax benefit                    -         7,245        13,305
     Benefit of operating loss carryforward                                   -       (61,854)     (127,542)
                                                                      ---------     ---------     ---------
                                                                      $       -     $       -     $       -
                                                                      =========     =========     =========
</TABLE>


                                       24
<PAGE>

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


NOTE 10.  RETIREMENT PLANS

The Company has a profit sharing plan (the Plan) which covers all full-time
officers and employees who have at least one year of service and attained the
age of 21. Contributions to its profit sharing plan are at Company's discretion.
The Plan is a qualified plan under applicable sections of the Internal Revenue
Code. Profit sharing expense for the period ended December 31, 2003, 2002 and
2001 was $ -0-.

The Company adopted a 401K retirement plan during 1998 which covers all
full-time officers and employees who have at least one year of service and
attained the age of 21. Contributions to the plan are made at a rate of 25% of
each employee's contribution up to a maximum of 4% of each employee's earnings
for the year. The plan is a qualified plan under applicable sections of the
Internal Revenue Code. Company contributions for the year ended December 31,
2003 and 2002 were $12,890 and $13,948, respectively.

NOTE 11.  RELATED PARTY TRANSACTIONS

The Company rents office space from Chuckatuck, a partnership in which the
Company's Chief Executive Officer is a partner. The lease is for a five-year
period which ends December 31, 2008. The present lease payment is $3,700 per
month and the minimum lease obligation for 2004 is $44,400.

The Company's Chief Executive Officer is personally guaranteeing the notes
payable of the company.

On June 18, 2002, the Company issued a note to a stockholder for $25,000 in
exchange for cash. The note payable is unsecured, bearing interest at 8%
annually and is due on demand. As of December 31, 2003, the balance on this note
is $21,308. See Note 7.

On June 18, 2002, the Company issued a note to a stockholder for $25,000 in
exchange for cash. The note payable is unsecured, bearing interest at 8%
annually and is due on demand. As of December 31, 2003, the balance on this note
is $-0-. See Note 7.

NOTE 12.  OPERATING LEASES

The Company leases certain of its manufacturing and office facilities and
equipment. Rental expense for the years ended December 31, 2003, 2002 and 2001
was $158,628, $142,476, and $123,719, respectively. All leases have expired;
however, the Company continues to lease these facilities under the previous
lease schedules.

NOTE 13.  MAJOR CUSTOMER AND SUPPLIER

The percentage of net revenue attributable to the Company's major customers
(exceeding 10% of total revenues) is 37.8% for 2003, 37.0% for 2002, and 34.1%
for 2001. Prior to December 31, 2003, the Company was notified by its largest
customer that the customer would be closing its operations being serviced by the
Company. This closing will occur shortly after the first quarter of 2004. This
customer accounted for 37.8%, 26.1%, and 20.5% of the Company's net revenues for
2003, 2002, and 2001, respectively. The Company is actively pursuing other
significant customers which could replace the lost sales in future years.

The percentage of cost of sales attributable to the Company's major suppliers
(exceeding 10% of total cost of sales) is 22.1% for 2003, 30.2% for 2002, and
34.7% for 2001.


                                       25
<PAGE>

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 14. RESEARCH AND DEVELOPMENT

The Company has incurred costs in developing a patented structural material
called Triterine. The Company intends to market this to construction companies
as a fire separation wall system.

NOTE 15.  EXTRAORDINARY ITEM

During the year ended December 31, 2001, the Company extinguished debt with a
bank. As part of extinguishing this debt the Company negotiated a reduction in
the amount owed by $400,000. This resulted in a gain to the Company. The gain is
reflected in the income statement net of related cost.

The Company obtained funds to extinguish this debt by issuing preferred stock
and obtaining additional financing from another commercial lender.

NOTE 16.  OTHER ASSETS - OTHER

Other assets - other consist of the following:

<TABLE>
<CAPTION>
                                                    2003                 2002
                                                    ----                 ----
<S>                                              <C>                 <C>
       Deposits                                  $   6,295           $     6,295
       Loan costs                                  153,842               145,865
       Patent costs                                 65,335                69,569
       Investment in Pereslav                       55,000                55,000
       Material rights                             175,096               104,472
                                                 ---------           -----------
                                                 $ 455,568           $   381,201
                                                 =========           ===========
</TABLE>

NOTE 17.  CONTINGENCIES

Debt assumption:

On April 1, 1997 Company reacquired certain real estate of Thermastructure, Ltd.
by assuming obligations owed to the Industrial Development Authority (IDA)
amounting to $775,818. As of December 31, 2003 Company remains primarily liable
on this debt. Outstanding balance on this debt amounted to $426,377 as of
December 31, 2003.

NOTE 18.  NET INCOME PER COMMON SHARE AND COMMON SHARE EQUIVALENT

Basic earnings per share excludes dilution and is computed by dividing net
income by the weighted-average number of common shares outstanding for the
period. Diluted earnings per share is computed by dividing net income by the sum
of the weighted-average number of common shares outstanding for the period and
the number of equivalent shares assumed outstanding under the Company's stock
option plans and convertible preferred stock outstanding.

Options held to purchase 400,000 common shares at $.81 were not dilutive and
were outstanding at December 31, 2003 and 2002. These shares are not included in
the diluted earnings per share calculation because the options' exercise price
was greater than the average market price of the common shares. Diluted earnings
per share was calculated as follows:

The Company has 600,000 shares of 8% cumulative convertible preferred stock
outstanding. The preferred stock is convertible into common stock based on its
liquidation amount ($.50 per share of $300,000) plus any accrued and unpaid
dividends (none as of 12/31/03). The conversion price for the common stock is
$0.50 per share which equates to 600,000 shares of common stock potentially
being issued.


                                       26
<PAGE>

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 18.  NET INCOME PER COMMON SHARE AND COMMON SHARE EQUIVALENT (CONTINUED)

<TABLE>
<CAPTION>
                                                                  2003                2002
                                                                  ----                ----
<S>                                                           <C>                 <C>
Net income (loss) to common stockholders                      $   (66,200)        $    126,218
                                                              ===========         ============

Weighted average common shares outstanding                       3,987,987         3,987,987

Share equivalents, due to stock options                                  -                   -
Share equivalents, due to convertible preferred stock              600,000             600,000
                                                              ------------        ------------
                                                                 4,587,987           4,587,987
                                                              ============        ============

Net income (loss) per share-diluted                           $      (.02)        $        .03
                                                              ===========         ============
</TABLE>

NOTE 19.  STOCK OPTION PLANS

The Company has two Stock Option Plans, the 1998 Stock Option Plan and the 1998
Non-employee Directors Stock Option Plan. Both Plans contained retroactive
effective dates of July 8, 1998 and September 28, 1998, respectively.

The Company's 1998 Stock Option Plan (the Plan) authorizes the granting of stock
options, up to a total of 375,000 shares of common stock, to any employee of the
Company. Under the Plan, the exercise price of each option equals fair market
value of the Company's stock on the grant date, and an option's maximum term is
ten years. If the employee is a 10% shareholder the exercise price of each
option shall not be less than 110% of the fair market value on the grant date,
and an option's maximum term is five years.

The Company's 1998 Non-employee Directors Stock Option Plan (the Plan)
authorizes the granting of stock options, up to a total of 125,000 shares of
common stock, to the directors of the Company who are not otherwise employees of
the Company or any Subsidiary and were not employees for a period of at least
one year before the date of grant of an option under the Plan. Under the Plan,
the exercise price of each option equals fair market value of the Company's
stock on grant date, and an option's maximum term is ten years.

A summary of the status of the Company's Stock Option Plans as of December 31,
2003, and the changes during the year is presented below:

<TABLE>
<CAPTION>
                           FIXED OPTIONS                           SHARES           WEIGHTED-AVERAGE EXERCISE PRICE
                           -------------                           ------           -------------------------------
<S>                                                              <C>                       <C>
      January 1, 2003                                               400,000                   $ .81
      Granted                                                             -                       -
      Exercised                                                           -                       -
      Forfeited                                                           -                       -
                                                                  ---------
      December 31, 2003                                             400,000                   $ .81
                                                                  =========

      Exercisable at December 31, 2003                              400,000                   $ .81

      Options available for grant at December 31, 2003              100,000                   $ .81
</TABLE>

The range of option prices for options outstanding as of December 31, 2003, was
$.81 with a weighted average remaining contractual life of approximately 5
years.

                                       27
<PAGE>

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


NOTE 19.  STOCK OPTION PLANS (CONTINUED)

If the Company had used the fair value based method of accounting for its
Employee Stock Option Plan, as prescribed by Statements of Financial Accounting
Standards No. 123, compensation cost in net income for the year ended December
31, 2003 would have increased by $324,000, resulting in net loss of $(390,200)
net of tax. The basic and diluted earnings per share would have been $(.10) and
$(.09), respectively.

The fair value of each option grant of $.81 is estimated on the date of grant
using the exercise price since fair value could not be reasonably estimated at
grant date.

NOTE 20.  STOCK REPURCHASE PLAN

Board of Directors has authorized the Company to repurchase up to 200,000 shares
of the Company's common stock. The Company has purchased 179,240 shares pursuant
to the Stock Repurchase Plan.

NOTE 21.  INVESTMENT IN THERMASTEEL

During 1998, the Company acquired a 5% interest in Thermasteel Corporation. The
initial 5% interest and promissory notes from Thermasteel were received in
exchange for receivables, inventory, investments, fixed assets, licenses,
patents, and trademarks. The net investment in the 5% interest as a result of
this transaction was $261,925. During 2003, a portion of the promissory notes
from Thermasteel were forgiven in exchange for an additional 5% interest. This
transaction resulted in an increase in the investment in Thermasteel of
$000,000. The total investment in Thermasteel as of December 31, 2003 is
$558,065.

NOTE 22.  SUBSEQUENT EVENTS

Subsequent to December 31, 2003, the Company was able to negotiate a new
$1,500,000 line of credit with a different commercial lender, reducing its
interest rate by 2.25% to prime. The line of credit is secured by all the
Company's assets.


                                       28
<PAGE>


                        RADVA CORPORATION AND SUBSIDIARY

                   SCHEDULE V - PROPERTY, PLANT AND EQUIPMENT
                  YEARS ENDED DECEMBER 31, 2003, 2002 AND 2001


<TABLE>
<CAPTION>
                                                                                                  OTHER
                                       BALANCE                                                   CHANGES
                                         AT                                                        ADD               BALANCE
                                      BEGINNING          ADDITIONS                               (DEDUCT)            AT END
     CLASSIFICATION                    OF YEAR            AT COST          RETIREMENTS             (A)               OF YEAR
     --------------                  -----------        -----------        -----------         -----------         -----------
<S>                                  <C>                <C>                <C>                 <C>                 <C>
Year ended December 31, 2001:

   Land and improvements             $   171,846        $    46,000        $     6,658         $      --           $   211,188
   Buildings and improvements          3,120,520             10,333             45,314                --             3,085,539
   Machinery and equipment             5,758,819             14,833               --              (465,209)          5,308,443
   Transportation equipment              372,129               --                 --                  --               372,129
   Office equipment                      301,169             10,644               --                  --               311,813
                                     -----------        -----------        -----------         -----------         -----------

                                     $ 9,724,483        $    81,810        $    51,972         $  (465,209)        $ 9,289,112
                                     ===========        ===========        ===========         ===========         ===========

Year ended December 31, 2002:

   Land and improvements             $   211,188        $     4,378        $    46,000         $      --           $   169,566
   Buildings and improvements          3,085,539             34,179               --                  --             3,119,718
   Machinery and equipment             5,308,443            117,337               --                  --             5,425,780
   Transportation equipment              372,129               --                 --                  --               372,129
   Office equipment                      311,813              5,000               --                  --               316,813
                                     -----------        -----------        -----------         -----------         -----------
                                     $ 9,289,112        $   160,894        $    46,000         $      --           $ 9,404,006
                                     ===========        ===========        ===========         ===========         ===========


Year ended December 31, 2003:

   Land and improvements             $   169,566        $      --          $      --           $      --           $   169,566
   Buildings and improvements          3,119,718             21,054               --                  --             3,140,772
   Machinery and equipment             5,425,780            279,236               --                  --             5,705,016
   Transportation equipment              372,129               --                 --                  --               372,129
   Office equipment                      316,813              4,338               --                  --               321,151
                                     -----------        -----------        -----------         -----------         -----------
                                     $ 9,404,006        $   304,628        $      --           $      --           $ 9,708,634
                                     ===========        ===========        ===========         ===========         ===========
</TABLE>


(A) During 2001, the Company removed fully depreciated assets that were no
    longer in service.


                                       29
<PAGE>


                        RADVA CORPORATION AND SUBSIDIARY

                   SCHEDULE VI - ACCUMULATED DEPRECIATION AND
                  AMORTIZATION OF PROPERTY, PLANT AND EQUIPMENT
                  YEARS ENDED DECEMBER 31, 2003, 2002 AND 2001


<TABLE>
<CAPTION>
                                                        ADDITIONS                                OTHER
                                       BALANCE           CHARGED                                CHANGES
                                         AT              TO COST                                  ADD               BALANCE
                                      BEGINNING            AND                                  (DEDUCT)             AT END
     CLASSIFICATION                    OF YEAR           EXPENSES          RETIREMENTS            (A)               OF YEAR
     --------------                  -----------        -----------        -----------        -----------         -----------
<S>                                 <C>                <C>                <C>                <C>                <C>
Year ended December 31, 2001:

   Land and improvements             $    24,331        $      --          $     --          $      --           $    24,331
   Buildings and improvements          1,476,020            104,334            22,409               --             1,557,945
   Machinery and equipment             2,872,059            465,522              --             (465,209)          2,872,372
   Transportation equipment              276,947             57,603              --                 --               334,550
   Office equipment                      230,715             27,391              --                 --               258,106
                                     -----------        -----------        ----------        -----------         -----------

                                     $ 4,880,072        $   654,850        $   22,409        $      --           $ 5,047,304
                                     ===========        ===========        ==========        ===========         ===========
Year ended December 31, 2002:

   Land and improvements             $    24,331        $        86        $     --          $      --           $    24,417
   Buildings and improvements          1,557,945            101,310              --                 --             1,659,255
   Machinery and equipment             2,872,372            440,405              --                 --             3,312,777
   Transportation equipment              334,550             26,779              --                 --               361,329
   Office equipment                      258,106             23,574              --                 --               281,680
                                     -----------        -----------        ----------        -----------         -----------

                                     $ 5,047,304        $   592,154        $     --          $      --           $ 5,639,458
                                     ===========        ===========        ==========        ===========         ===========

Year ended December 31, 2003:

   Land and improvements             $    24,417        $       146        $     --          $      --           $    24,563
   Buildings and improvements          1,659,255             98,289              --                 --             1,757,544
   Machinery and equipment             3,312,777            402,829              --                 --             3,715,606
   Transportation equipment              361,329              8,756              --                 --               370,085
   Office equipment                      281,680             19,088              --                 --               300,768
                                     -----------        -----------        ----------        -----------         -----------

                                     $ 5,639,458        $   529,108        $     --          $      --           $ 6,168,566
                                     ===========        ===========        ==========        ===========         ===========

</TABLE>




(A) During 2001, the Company removed fully depreciated assets that were no
    longer in service.


                                       30
<PAGE>


                        RADVA CORPORATION AND SUBSIDIARY

                SCHEDULE VIII - VALUATION AND QUALIFYING ACCOUNTS
                  YEARS ENDED DECEMBER 31, 2003, 2002 AND 2001


<TABLE>
<CAPTION>
                                                             ADDITIONS
                                                     -------------------------
                                      BALANCE        CHARGED           CHARGED
                                        AT              TO               TO                             BAL
                                     BEGINNING       COST AND          OTHER                           AT END
   DESCRIPTION                        OF YEAR        EXPENSES         ACCOUNTS      DEDUCTIONS (A)     OF YR
   -----------                       ---------       --------         --------      --------------     -------
<S>                                 <C>              <C>             <C>             <C>             <C>
Year ended December 31, 2001:
   Allowance for doubtful
     accounts                        $ 83,574        $ 79,187        $    --          $ 82,083        $ 80,678
                                     ========        ========        =========        ========        ========


Year ended December 31, 2002:
   Allowance for doubtful
     accounts                        $ 80,678        $ 34,653        $    --          $ 58,172        $ 57,159
                                     ========        ========        =========        ========        ========


Year ended December 31, 2003:
   Allowance for doubtful
     accounts                        $ 57,159        $ 73,094        $    --          $ 17,701        $112,552
                                     ========        ========        =========        ========        ========

</TABLE>


(A) Represents uncollectible amounts written off, net of recoveries.


                                       31
<PAGE>




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

       None.

                                    PART III

ITEM 10.  DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT

Information as to the Company's directors is incorporated by reference to
material contained under the heading "Election of Directors" in the Company's
proxy statement for its annual meeting of stockholders scheduled for April 22,
2004.

Information as to the Company's executive officers is set forth under the
heading "Executive Officers" in ITEM 1 of this report.

ITEM 11.  EXECUTIVE COMPENSATION

Information as to executive compensation is incorporated by reference to
material contained under the headings "Cash Compensation" and "Compensation
Plans" in the Company's proxy statement for its annual meeting of stockholders
scheduled for April 22, 2004.

ITEM 12.  SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

Information as to the security ownership of certain beneficial owners and
management is incorporated by reference to material contained under the heading
"Principal Stockholders" in the Company's proxy statement for its annual meeting
of stockholders scheduled for April 22, 2004.

ITEM 13.  CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

Information as to certain relationships and related transactions is incorporated
by reference to material contained under the heading "Certain Relationships and
Related Transactions" in the Company's proxy statement for its annual meeting of
stockholders scheduled for April 22, 2004.


                                     PART IV

ITEM 14.  EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS ON FORM 8-K

(a)  (1)  Financial Statements (Included in PART II)

          See ITEM 8 in PART II

(a)  (2)  Financial Statement Schedules (Included in PART II)

          See ITEM 8 in PART II

(a)  (3)  Exhibits

The exhibits filed with this report and the documents incorporated by reference
as exhibits to this report are described below.

         (3)(a) Articles of Incorporation of the Company (Incorporated by
reference to Exhibit B to Registration Statement No. 0-15464 filed with the
Securities and Exchange Commission on March 9, 1987).


                                       32
<PAGE>

         (3)(b) Bylaws of the Company (Incorporated by reference to Exhibit C to
Registration Statement No. 0-15464 filed with the Securities and Exchange
Commission on March 9, 1987).

         (4)(f) See Article III, Section 4 of Exhibit 3(a).

         (4)(g) See Articles II, III, VI, VIII and IX of Exhibit (3)(b).

         (10)(c) Lease dated April 29, 1986 between Chuckatcuk Partnership and
the Company relating to the Company's principal executive office space in
Radford, Virginia (Incorporated by reference to Exhibit 10(d) to Registration
Statement No. 33-5319 filed with the Securities and Exchange Commission on June
25, 1986).

         (10)(g) Agreement dated as of July 1, 1985 between ARCO Chemical
Company and the Company relating to the sale of various copolymer resins
(Incorporated by reference to Exhibit 10(g) to Registration Statement No.
33-5319 filed with the Securities and Exchange Commission on June 25, 1986.)

         (10)(h) Agreement dated as of April 11, 1986 between ARCO Technology,
Inc. and the Company relating to a license of certain manufacturing rights
(Incorporated by reference to Exhibit 10(h) to Registration Statement No.
33-5319 filed with the Securities and Exchange Commission on June 5, 1986.)

         (10)(i) Bank of Virginia Trust Company Prototype Plan and Trust
Agreement and accompanying Joinder Agreement (Incorporated by reference to
Exhibit 10(i) to Registration Statement No. 33-5319 filed with the Securities
and Exchange Commission on June 24, 1986.)

         (10)(j) 1986 Stock Option Plan for employees of the Company
(Incorporated by reference to Exhibit 10(j) to Registration Statement No.
33-5319 filed with the Securities and Exchange Commission on June 24, 1986.)

         (10)(l) Purchase Agreement dated December 31, 1987 between the Company
and the Atlantic Richfield Company (Incorporated by reference to Exhibit 10 to
the Company's current report on Form 8-K filed with the Securities and Exchange
Commission on January 13, 1988.

         (11) Statement recomputation of per share earnings.

(b)     Reports on Form 8-K

        None

(c)     Exhibits

        See ITEM 14(a)(3) above.

(d)     Financial Statement Schedules

        See ITEM 14(a)(2) above.


                                       33
<PAGE>



                                   SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities and
Exchange Act of 1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned thereunto duly authorized.

                                        RADVA Corporation


Dated:           March 22, 2004         By /s/ Luther I. Dickens
                                           ------------------------------------
                                           Luther I. Dickens
                                           Chief Executive Officer and
                                           Chairman of the Board

Pursuant to the requirements of the Securities Exchange Act of 1934, this report
has been signed below by the following persons on behalf of the registrant and
in the capacities and on the dates indicated.


Dated:           March 22, 2004         By /s/   Luther I. Dickens
                                           ------------------------------------
                                           Luther I. Dickens
                                           Chief Executive Officer and
                                           Chairman of the Board


Dated:           March 22, 2004         By /s/ Rush G. Allen
                                           ------------------------------------
                                           Rush G. Allen
                                           Director

Dated:           March 22, 2004         By /s/ J. Granger Macfarlane
                                           ------------------------------------
                                           J. Granger Macfarlane
                                           Director

Dated:           March 22, 2004         By /s/ Stephen L. Dickens
                                           ------------------------------------
                                           Stephen L. Dickens
                                           President and Director


Dated:           March 22, 2004         By /s/ David B. Kinney
                                           ------------------------------------
                                           David B. Kinney
                                           Director

Dated:           March 22, 2004         By /s/ Richard W. Frizzell
                                           ------------------------------------
                                           Richard W. Frizzell
                                           Director



                                       34