<PAGE>

                                                                      EXHIBIT 13

                              [CHICAGO RIVET LOGO]
                          Chicago Rivet & Machine Co.
                               2005 Annual Report
<PAGE>
                                                                               .
                                                                               .
                                                                               .

[CHICAGO RIVET LOGO]
--------------------------------------------------------------------------------

HIGHLIGHTS

<Table>
<Caption>
------------------------------------------------------------------------------------------
                                                    2005           2004           2003
------------------------------------------------------------------------------------------
<S>                                              <C>            <C>            <C>
NET SALES AND LEASE REVENUE....................  $39,760,756    $39,232,866    $38,190,908
NET INCOME (LOSS)..............................     (398,612)     1,523,434        817,527
NET INCOME (LOSS) PER SHARE....................         (.41)          1.58            .85
DIVIDENDS PER SHARE............................          .87            .72            .97
NET CASH PROVIDED BY OPERATING ACTIVITIES......      693,152      2,320,060      3,810,415
EXPENDITURES FOR PROPERTY, PLANT AND
  EQUIPMENT....................................      647,162      1,359,582        641,715
WORKING CAPITAL................................   14,839,923     15,222,262     14,020,185
TOTAL SHAREHOLDERS' EQUITY.....................   23,578,156     24,817,303     23,989,484
COMMON SHARES OUTSTANDING AT YEAR-END..........      966,132        966,132        966,132
SHAREHOLDERS' EQUITY PER COMMON SHARE..........        24.40          25.69          24.83
</Table>

ANNUAL MEETING

The annual meeting of shareholders
will be held on May 9, 2006 at 10:00 a.m. at
901 Frontenac Road
Naperville, Illinois

Chicago Rivet & Machine Co. - 901 Frontenac Road - P.O. Box 3061 - Naperville,
Illinois 60566 - Telephone: (630) 357-8500
--------------------------------------------------------------------------------
<PAGE>

MANAGEMENT'S REPORT
ON FINANCIAL CONDITION AND RESULTS OF OPERATIONS            [CHIGAGO RIVET LOGO]
--------------------------------------------------------------------------------

TO OUR SHAREHOLDERS:

RESULTS OF OPERATIONS

    The past year was one of the more difficult years in the Company's history.
Although revenues within the fastener segment improved over 2004, this increase
reflects a partial recovery of higher raw material costs, rather than an
increase in volume. In addition, changes in our product mix had a negative
impact on our bottom line. Demand within the assembly equipment segment, where
we have traditionally enjoyed higher margins, continued to be weak, and this
segment accounted for a smaller portion of revenues than in past years. Within
the fastener segment, margins were adversely impacted by an increase in the
percentage of product produced through the screw machine process -- which has
traditionally generated lower margins than cold-headed parts.

    Results were also adversely impacted by higher than normal administrative
expenses related to legal matters and compliance with the Sarbanes-Oxley Act of
2002.

2005 COMPARED TO 2004

    Revenues within the fastener segment increased by nearly $1.5 million, or
4.5%, compared with the prior year. However, a change in product mix, combined
with ongoing competitive pressures within our markets, which adversely impacted
selling prices, contributed to the decline in gross margins within this segment.
Change in product mix was the primary factor causing material costs to increase
$1.3 million compared to 2004 and was also the main factor contributing to a
$757,000 increase in outside processing services. Labor and fringe benefit costs
increased approximately $350,000. Tooling costs increased by approximately
$518,000 compared to 2004, primarily due to costs related to the manufacture of
new parts used in a number of new automotive platform launches. The Company also
incurred an increase of $253,000 related to costs associated with expedited
delivery due to shortened customer lead-time requirements.

    Weak demand continued to characterize the assembly equipment segment of our
business, contributing to a decline in revenues of $944,000, or 14%, compared to
the prior year. We were able to reduce most manufacturing costs in direct
proportion to the decline in revenues. Labor and fringe benefit costs declined
by $305,000. Raw material costs were $91,000 lower than the prior year. Most
other elements of cost declined as a result of lower volumes. However, the net
effect of lower volume was a decline of $491,000 in gross margins.

    Selling and administrative expenses increased by $682,000 compared to 2004.
The single largest factor affecting comparisons between this year and last is
that during 2004, the Company received a refund of the Michigan single business
tax that amounted to $330,000. This refund was the result of a successful appeal
of the tax calculation for the prior four years. Professional fees and expenses
incurred, primarily related to compliance with the Sarbanes-Oxley Act of 2002,
increased by $359,000 during 2005. Legal fees increased approximately $140,000,
primarily due to protracted litigation that was resolved in 2005. Bad debt
expense increased $73,000, primarily in connection with the bankruptcy of
certain customers. These increases were partially offset by reductions in a
variety of other expenses; the most significant being a reduction in profit
sharing expense of $127,000 due to the decrease in profitability and lower
depreciation of office equipment of $57,000.

    During the fourth quarter of 2005, the Company realized a gain of $256,660
from proceeds received due to the demutualization of an insurance provider.

2004 COMPARED TO 2003

    Within the fastener segment, revenues increased by 4.7%, or nearly $1.5
million. Approximately $1.0 million of this increase represents the recovery of
higher material costs related to the increase in the price of steel wire and rod
which are our primary raw materials. The balance of the increase is primarily
due to an increase in units shipped. Increases in the price of raw materials
consumed in production amounted to $1,195,000. This was partially offset by an
increase of $205,000 in scrap recovery and purchase discounts. In addition,
perishable tooling expense increased $244,000 due to expenses related to the
initial production of a number of new parts, while wage and fringe benefit costs
increased $122,000. These higher costs were partially offset by a $317,000
reduction in outside material processing costs, due to a change in product mix,
and by savings of $193,000 realized by handling the majority of our routine
maintenance internally, rather than outsourcing as had been the practice
previously. The net effect of these changes contributed to a $693,000
improvement in gross margin for this segment compared with 2003.

    Revenues within the assembly equipment segment declined 5.7%, or $412,000,
compared to the prior year. This change was due to lower unit volumes, which
reflected lower demand for the product in this segment. Despite the reduction in
volume, gross margins improved by $138,000 compared with 2003. Factors
contributing to this improvement included: savings of $355,000 in wage and
related benefit costs arising from reductions in the workforce undertaken in the
fourth quarter of 2003; a reduction of $51,000 in material costs, primarily due
to reduced volumes; and a reduction in depreciation expense of $45,000 as more
equipment became fully depreciated.

    Selling and administrative expenses declined 3.6%, or $228,000, in 2004
compared with 2003. The largest single factor contributing to this change was a
successful appeal of

--------------------------------------------------------------------------------

                                                                               1
<PAGE>
MANAGEMENT'S REPORT
(Continued)
--------------------------------------------------------------------------------

the Michigan single business tax paid in four prior years. The amount of this
refund was $330,000. Reductions in headcount contributed to a net reduction of
$127,000 in salary and fringe benefit expense. These savings were partially
offset by an increase of $120,000 in profit sharing expense related to the
increase in pre-tax income.

DIVIDENDS

    In determining to pay dividends, the Board considers current profitability,
the outlook for longer-term profitability, known and potential cash requirements
and the overall financial condition of the Company. The Company paid four
regular quarterly dividends of $.18 per share during 2005. In addition, an extra
dividend of $.15 per share was paid during the second quarter of 2005, bringing
the total dividend distribution to $.87 per share. On February 20, 2006, your
Board of Directors declared a regular quarterly dividend of $.18 per share,
payable March 20, 2006 to shareholders of record on March 3, 2006. This
continues the uninterrupted record of consecutive quarterly dividends paid by
the Company to its shareholders that extends over 72 years.

PROPERTY, PLANT AND EQUIPMENT

    Total capital expenditures in 2005 were $647,162. Of the total, $460,000 was
invested in building improvements, including $422,495 for new roofs at two
facilities. Fastener segment equipment additions amounted to $91,000, primarily
for equipment related to plating of parts and quality control. Assembly
equipment segment additions totaled $36,000, with approximately $32,000 expended
for equipment used to manufacture perishable tooling. The remaining additions
related primarily to computer equipment and other miscellaneous equipment
benefiting both operating segments.

    Capital investments totaled $1.4 million during 2004. Capital expenditures
were concentrated within the fastener segment, where investment totaled $1.3
million. Of this total, $1.1 million was invested to purchase cold-heading
machinery and related equipment used in the manufacture of fasteners. The
remainder of the expenditures within the fastener segment was for various
building improvements, additional waste treatment equipment required to meet
environmental requirements and material handling equipment. The balance of the
Company's 2004 capital expenditures covered a variety of smaller items,
including computers and other office equipment.

    During 2003, capital expenditures amounted to $641,715, of which $535,268
was invested within the fastener segment, $89,379 was invested within the
assembly equipment segment and the remainder was expended for building
improvements that cannot be allocated between segments. Within the fastener
segment, approximately $317,000 was invested in a new solvent-based parts
cleaning system. Other expenditures were approximately $92,000 for vehicles,
including $68,000 for a new delivery truck; $32,000 for in-line wire drawing
equipment; some $21,000 for equipment related to quality control; with the
balance expended for smaller tools and equipment and building improvements.
Within the assembly equipment segment, approximately $86,000 was expended for
the purchase of new equipment related to the manufacture of perishable tooling
that is sold to customers. The balance was expended for building improvements
and office equipment.

    Depreciation expense amounted to $1,703,382 in 2005, $1,757,962 in 2004, and
$1,861,600 in 2003.

LIQUIDITY AND CAPITAL RESOURCES

    The Company's working capital declined approximately $382,000 between
December 31, 2004 and December 31, 2005. The Company's holdings in cash, cash
equivalents and certificates of deposit amounted to approximately $5.7 million
at the end of 2005, a decline of $.5 million compared with the prior year-end.
Inventories were reduced by nearly $.3 million, as higher than normal quantities
on hand at the start of the year were reduced. Accounts receivable increased
approximately $.5 million compared with the prior year-end, reflecting higher
shipments during the latter portion of 2005 compared with the same period in
2004. The accrual for profit sharing contribution decreased $.1 million compared
to the prior year, due to reduced profitability in 2005, while other accrued
expenses increased $.2 million primarily due to an increase in customer
deposits. The Company has a $1.0 million line of credit, which expires May 31,
2006. This line of credit remains unused.

OFF-BALANCE SHEET ARRANGEMENTS

    The Company has not entered into, and has no current plans to enter into,
any off-balance sheet financing arrangements.

    The following table presents a summary of the Company's contractual
obligations as of December 31, 2005:

<Table>
<Caption>
                                      PAYMENTS DUE BY PERIOD
                       ----------------------------------------------------
                                    LESS                             MORE
CONTRACTUAL                         THAN      1 - 3      4 - 5       THAN
OBLIGATION              TOTAL      1 YEAR     YEARS      YEARS     5 YEARS
-----------            --------   --------   --------   --------   --------
<S>                    <C>        <C>        <C>        <C>        <C>
Long-term Debt.......  $     --   $     --   $     --   $     --   $     --
Capital Lease
 Obligations.........        --         --         --         --         --
Operating Leases.....    68,802     28,868     39,934         --         --
Purchase
 Obligations.........   647,594    536,885    110,709         --         --
                       --------   --------   --------   --------   --------
Total................  $716,396   $565,753   $150,643   $     --   $     --
                       ========   ========   ========   ========   ========
</Table>

--------------------------------------------------------------------------------

 2
<PAGE>
MANAGEMENT'S REPORT
(Continued)                                                 [CHIGAGO RIVET LOGO]
--------------------------------------------------------------------------------

    Management believes that current cash, cash equivalents, operating cash flow
and available line of credit will be sufficient to provide adequate working
capital for the foreseeable future.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

    As of December 31, 2005, the Company did not have any outstanding debt. The
Company did not use any derivative financial instruments during 2005.

APPLICATION OF CRITICAL ACCOUNTING POLICIES

    The preparation of financial statements and related disclosures in
conformity with accounting principles generally accepted in the United States
requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities at the date of the financial statements and
the amounts of revenue and expenses during the reporting period. A summary of
critical accounting policies can be found in Note 1 of the financial statements.

NEW ACCOUNTING STANDARDS

    The Company's financial statements and financial condition were not, and are
not expected to be, materially impacted by new, or proposed, accounting
standards.

INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

    The firm of PricewaterhouseCoopers LLP served as the Company's independent
registered public accounting firm for the year ended December 31, 2004.

    On February 28, 2005, the Company was notified by PricewaterhouseCoopers LLP
that they would not stand for re-election as the Company's independent
registered public accounting firm for the year ending December 31, 2005.
PricewaterhouseCoopers LLP agreed, however, to continue to serve as the
Company's independent registered public accounting firm until completion of its
procedures on the financial statements of the Company for the year ended
December 31, 2004. On March 21, 2005, PricewaterhouseCoopers LLP completed its
procedures on the financial statements of the Company for the year ended
December 31, 2004, and ceased serving as the Company's independent registered
public accounting firm.

    On March 23, 2005, the Audit Committee engaged Grant Thornton LLP to serve
as the Company's independent registered public accounting firm for the year
ended December 31, 2005.

    The reports of PricewaterhouseCoopers LLP on the Company's financial
statements for the years ended December 31, 2004 and 2003 did not contain an
adverse opinion or a disclaimer of opinion and were not qualified or modified as
to uncertainty, audit scope or accounting principle. During the years ended
December 31, 2004 and 2003 and through March 21, 2005, there were no
disagreements with PricewaterhouseCoopers LLP on any matter of accounting
principles or practices, financial statement disclosure, or auditing scope or
procedure, which disagreements, if not resolved to the satisfaction of
PricewaterhouseCoopers LLP, would have caused PricewaterhouseCoopers LLP to make
reference thereto in its report on the Company's financial statements for such
years. During the years ended December 31, 2004 and 2003 and through March 21,
2005, there were no "reportable events" (as defined in SEC Regulation S-K Item
304(a)(1)(v)).

    Between January 1, 2003 and the engagement of Grant Thornton LLP on March
23, 2005, neither the Company nor anyone acting on behalf of the Company
consulted with Grant Thornton LLP regarding either (i) the application of
accounting principles to a specified completed or contemplated transaction or
the type of audit opinion that might be rendered on the Company's financial
statements; as such, no written or oral advice was provided or (ii) any matter
that was either the subject of a disagreement with PricewaterhouseCoopers LLP or
a "reportable event."

PERSONNEL

    On November 21, 2005, John C. Osterman, President, Chief Operating Officer
and Treasurer of the Company and a member of the Company's Board of Directors,
notified the Company of his intention to retire. Mr. Osterman's retirement from
his positions as an officer of the Company will become effective on December 31,
2006 or such earlier date as the Company designates a replacement. In connection
with his decision to retire, Mr. Osterman's term as a director will end as of
the 2006 Annual Meeting of Shareholders of the Company.

    On February 20, 2006, the Board of Directors elected Michael J. Bourg to the
position of Executive Vice President of the Company. Mr. Bourg has been an
officer of the Company and an integral part of the management team since his
employment in December 1998.

OUTLOOK FOR 2006

    Many of the challenges that contributed to poor results in 2005 remain in
evidence as we begin 2006. Increasing revenues remains critical to a return to
profitability and continues to be a key objective. Our primary market is
dominated by the activities of the "Big Three" domestic automobile

--------------------------------------------------------------------------------

                                                                               3
<PAGE>
MANAGEMENT'S REPORT
(Continued)
--------------------------------------------------------------------------------

manufacturers. Unfortunately, according to published data, their 2005 domestic
production declined by nearly 7%, the second, successive year-to-year decline.
It is too early in the year to project what their level of operations will be
for 2006. In addition, their financial condition is such that they have
announced objectives to reduce the cost of the material that they purchase. This
will likely result in continued pressure to reduce prices we charge for our
product, while simultaneously reducing demand for domestic product as they rely
more heavily on parts produced in lower cost economies. This does not auger well
for our ability to obtain much needed recovery of higher raw material costs.

    We have made efforts to increase our sales revenues in all markets. Ongoing
initiatives to have our product approved and used in foreign nameplates produced
within the United States have met with some success and we plan to continue to
pursue opportunities in this market. Our sales efforts will continue to
emphasize value over price and will focus on more complex products used by
customers for which our experience, expertise, quality and service are important
factors in purchasing decisions.

    We anticipate that selling and administrative expenses, which have been
unusually high due to costs related to litigation and compliance with the
Sarbanes-Oxley Act of 2002, will be lower in 2006. On the other hand, it is
likely that our customers will continue to demand reductions in prices without
sacrificing quality or service. As our customers increasingly look to foreign
sources to obtain product, we will be challenged to offer a level of quality and
service that cannot be matched by offshore producers. In order to meet these
challenges, we will continue to seek out creative solutions that help improve
our operations at all levels while continuing our efforts to control operating
costs.

    We wish to thank our customers, our employees and our shareholders for their
loyalty during what has been a very difficult period for the Company. We believe
that this continued support, combined with the Company's sound financial
condition, will help us as we face the challenges and pursue the opportunities
that the new year will bring.

                                     Respectfully,

<Table>
  <S>                                         <C>

      /s/ J. A. MORRISSEY                         /s/ JOHN C. OSTERMAN
       John A. Morrissey                            John C. Osterman
            Chairman                                   President
</Table>

March 23, 2006

FORWARD-LOOKING STATEMENTS

     This discussion contains certain "forward-looking statements" which are
inherently subject to risks and uncertainties that may cause actual events to
differ materially from those discussed herein. Factors which may cause such
differences in events include, those disclosed under "Risk Factors" in our
Annual Report on Form 10-K and in the other filings we make with the United
States Securities and Exchange Commission. These factors, include among other
things: conditions in the domestic automotive industry, upon which we rely for
sales revenue, the intense competition in our markets, the concentration of our
sales to two major customers, the price and availability of raw materials, labor
relations issues, losses related to product liability, warranty and recall
claims, costs relating to environmental laws and regulations, and the loss of
the services of our key employees. Many of these factors are beyond our ability
to control or predict. Readers are cautioned not to place undue reliance on
these forward-looking statements. We undertake no obligations to publish revised
forward-looking statements to reflect events or circumstances after the date
hereof or to reflect the occurrence of unanticipated events.

--------------------------------------------------------------------------------

 4
<PAGE>

                                                            [CHICAGO RIVET LOGO]
--------------------------------------------------------------------------------
CONSOLIDATED BALANCE SHEETS

<Table>
<Caption>

-----------------------------------------------------------------------------------------------
December 31                                                        2005                2004
-----------------------------------------------------------------------------------------------
<S>                                                             <C>                 <C>
                           ASSETS
Current Assets
  Cash and Cash Equivalents.................................    $ 4,730,837         $ 5,464,368
  Certificates of Deposit...................................      1,005,000             805,000
  Accounts Receivable -- Less allowances of $210,000 and
     $130,000, respectively.................................      5,370,611           4,867,615
  Inventories...............................................      5,971,695           6,242,470
  Deferred Income Taxes.....................................        560,191             554,191
  Other Current Assets......................................        232,142             219,497
                                                                -----------         -----------
  Total Current Assets......................................     17,870,476          18,153,141
Net Property, Plant and Equipment...........................     10,051,508          11,146,316
                                                                -----------         -----------
Total Assets................................................    $27,921,984         $29,299,457
                                                                ===========         ===========


            LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
  Accounts Payable..........................................    $ 1,452,314         $ 1,367,221
  Accrued Wages and Salaries................................        680,969             706,701
  Accrued Profit Sharing Plan Contribution..................        125,000             252,312
  Other Accrued Expenses....................................        772,270             604,645
                                                                -----------         -----------
  Total Current Liabilities.................................      3,030,553           2,930,879
Deferred Income Taxes.......................................      1,313,275           1,551,275
                                                                -----------         -----------
  Total Liabilities.........................................      4,343,828           4,482,154
                                                                -----------         -----------
Commitments and Contingencies (Note 10)
Shareholders' Equity
  Preferred Stock, No Par Value, 500,000 Shares Authorized:
     None Outstanding.......................................             --                  --
  Common Stock, $1.00 Par Value, 4,000,000 Shares
     Authorized: 1,138,096 Shares Issued....................      1,138,096           1,138,096
  Additional Paid-in Capital................................        447,134             447,134
  Retained Earnings.........................................     25,915,024          27,154,171
  Treasury Stock, 171,964 Shares at cost....................     (3,922,098)         (3,922,098)
                                                                -----------         -----------
  Total Shareholders' Equity................................     23,578,156          24,817,303
                                                                -----------         -----------
Total Liabilities and Shareholders' Equity..................    $27,921,984         $29,299,457
                                                                ===========         ===========
</Table>

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE CONSOLIDATED FINANCIAL
STATEMENTS.

--------------------------------------------------------------------------------
                                                                               5
<PAGE>
[CHICAGO RIVET LOGO]
--------------------------------------------------------------------------------

CONSOLIDATED STATEMENTS OF INCOME

<Table>
<Caption>

-----------------------------------------------------------------------------------------------
For the Years Ended December 31                          2005           2004           2003
-----------------------------------------------------------------------------------------------
<S>                                                   <C>            <C>            <C>
Net Sales and Lease Revenue.......................    $39,760,756    $39,232,866    $38,190,908
Cost of Goods Sold and Costs Related to Lease
  Revenue.........................................     34,060,469     30,954,797     30,744,104
                                                      -----------    -----------    -----------
Gross Profit......................................      5,700,287      8,278,069      7,446,804
Selling and Administrative Expenses...............      6,723,386      6,041,045      6,269,050
                                                      -----------    -----------    -----------
Operating Income (Loss)...........................     (1,023,099)     2,237,024      1,177,754
Other Income, net.................................        418,487         78,410         64,773
                                                      -----------    -----------    -----------
Income (Loss) Before Income Taxes.................       (604,612)     2,315,434      1,242,527
Provision for Income Taxes........................       (206,000)       792,000        425,000
                                                      -----------    -----------    -----------
Net Income (Loss).................................    $  (398,612)   $ 1,523,434    $   817,527
                                                      ===========    ===========    ===========
Net Income (Loss) Per Share.......................    $      (.41)   $      1.58    $       .85
                                                      ===========    ===========    ===========
</Table>

CONSOLIDATED STATEMENTS OF RETAINED EARNINGS

<Table>
<Caption>

-----------------------------------------------------------------------------------------------
For the Years Ended December 31                          2005           2004           2003
-----------------------------------------------------------------------------------------------
<S>                                                   <C>            <C>            <C>
Retained Earnings at Beginning of Year............    $27,154,171    $26,326,352    $26,445,973
Net Income (Loss).................................       (398,612)     1,523,434        817,527
Cash Dividends Paid, $.87 Per Share in 2005, $.72
  Per Share in 2004 and $.97 Per Share in 2003....       (840,535)      (695,615)      (937,148)
                                                      -----------    -----------    -----------
Retained Earnings at End of Year..................    $25,915,024    $27,154,171    $26,326,352
                                                      ===========    ===========    ===========
</Table>

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE CONSOLIDATED FINANCIAL
STATEMENTS.

--------------------------------------------------------------------------------
 6
<PAGE>
                                                            [CHIGAGO RIVET LOGO]
--------------------------------------------------------------------------------

CONSOLIDATED STATEMENTS OF CASH FLOWS

<Table>
<Caption>

---------------------------------------------------------------------------------------------------
For the Years Ended December 31                              2005           2004           2003
---------------------------------------------------------------------------------------------------
<S>                                                       <C>            <C>            <C>
Cash Flows from Operating Activities:
Net Income (Loss).....................................    $  (398,612)   $ 1,523,434    $   817,527
Adjustments to Reconcile Net Income (Loss) to Net Cash
  Provided by Operating Activities:
  Depreciation and Amortization.......................      1,703,382      1,757,962      1,861,600
  Net (Gain) Loss on the Sale of Properties...........         38,088          2,148        (11,405)
  Gain from Demutualization...........................       (256,660)            --             --
  Deferred Income Taxes...............................       (244,000)        19,000         12,000
  Changes in Operating Assets and Liabilities:
    Accounts Receivable, net..........................       (502,996)      (318,447)       445,529
    Inventories.......................................        270,775     (1,008,682)       856,153
    Other Current Assets..............................        (12,645)          (937)        59,423
    Accounts Payable..................................         81,239         40,501        188,849
    Accrued Wages and Salaries........................        (25,732)       (47,693)       (41,526)
    Accrued Profit Sharing Plan Contribution..........       (127,312)       119,069       (302,299)
    Other Accrued Expenses............................        167,625        233,705        (75,436)
                                                          -----------    -----------    -----------
         Net Cash Provided by Operating Activities....        693,152      2,320,060      3,810,415
                                                          -----------    -----------    -----------
Cash Flows from Investing Activities:
  Capital Expenditures................................       (643,308)    (1,342,906)      (641,715)
  Proceeds from the Sale of Properties................            500          2,730         24,144
  Proceeds from Demutualization.......................        256,660             --             --
  Proceeds from Held-to-Maturity Securities...........      1,035,000        665,000      3,207,733
  Purchases of Held-to-Maturity Securities............     (1,235,000)    (1,015,000)      (505,000)
                                                          -----------    -----------    -----------
       Net Cash (Used in) Provided by Investing
         Activities...................................       (586,148)    (1,690,176)     2,085,162
                                                          -----------    -----------    -----------
Cash Flows from Financing Activities:
  Payments under Term Loan Agreement..................             --             --     (1,632,760)
  Cash Dividends Paid.................................       (840,535)      (695,615)      (937,148)
                                                          -----------    -----------    -----------
       Net Cash Used in Financing Activities..........       (840,535)      (695,615)    (2,569,908)
                                                          -----------    -----------    -----------
Net (Decrease) Increase in Cash and Cash
  Equivalents.........................................       (733,531)       (65,731)     3,325,669
Cash and Cash Equivalents:
  Beginning of Year...................................      5,464,368      5,530,099      2,204,430
                                                          -----------    -----------    -----------
  End of Year.........................................    $ 4,730,837    $ 5,464,368    $ 5,530,099
                                                          ===========    ===========    ===========
Cash Paid During the Year for:
  Income Taxes........................................    $        --    $   573,307    $   508,213
  Interest............................................    $        --    $        --    $    20,633
Supplemental Schedule of Non-cash Investing
  Activities:
  Capital Expenditures in Accounts Payable............    $     3,854    $    16,676    $        --
</Table>

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE CONSOLIDATED FINANCIAL
STATEMENTS.

--------------------------------------------------------------------------------
                                                                               7
<PAGE>

(CHIGAGO RIVET LOGO)
--------------------------------------------------------------------------------
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1--NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES

NATURE OF BUSINESS--The Company operates in the fastener industry and is in the
business of producing and selling rivets, cold-formed fasteners, screw machine
products, automatic rivet setting machines, parts and tools for such machines,
and the leasing of automatic rivet setting machines.

A SUMMARY OF THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES FOLLOWS:

PRINCIPLES OF CONSOLIDATION--The consolidated financial statements include the
accounts of Chicago Rivet & Machine Co. and its wholly-owned subsidiary, H & L
Tool Company, Inc. (H & L Tool). All significant intercompany accounts and
transactions have been eliminated.

REVENUE RECOGNITION--Revenues from product sales are recognized upon shipment
and an allowance is provided for estimated returns and discounts based on
experience in accordance with Staff Accounting Bulletin No. 104, "Revenue
Recognition in Financial Statements." Cash received by the Company prior to
shipment is recorded as deferred revenue. The Company experiences a certain
degree of sales returns that varies over time. In accordance with Statement of
Financial Accounting Standards No. 48 ("SFAS 48"), "Revenue Recognition When
Right of Return Exists," the Company is able to make a reasonable estimation of
expected sales returns based upon history and as contemplated by the
requirements of SFAS 48. The Company records all shipping and handling fees
billed to customers as revenue, and related costs as cost of sales, when
incurred, in accordance with EITF 00-10, "Accounting for Shipping and Handling
Fees and Costs."

LEASE INCOME--Automatic rivet setting machines are available to customers on
either a sale or lease basis. The leases are generally for a quarterly or
one-year term, are cancelable at the option of the Company or the customer and
are accounted for under the operating method, which recognizes lease revenue
over the term of the lease. Rentals are billed in advance, and revenues
attributable to future periods are included in unearned revenue in the
consolidated balance sheets. Costs related to lease revenue, other than the cost
of the machines, are expensed as incurred.

CREDIT RISK--The Company extends credit on the basis of terms that are customary
within our markets to various companies doing business primarily in the
automotive industry. The Company has a concentration of credit risk primarily
within the automotive industry and in the Midwestern United States. The Company
has established an allowance for accounts that may become uncollectible in the
future. This estimated allowance is based primarily on management's evaluation
of the financial condition of the customer and historical experience. The
Company monitors its accounts receivable and charges to expense an amount equal
to its estimate of potential credit losses. The Company considers a number of
factors in determining its estimates, including the length of time its trade
accounts receivable are past due, the Company's previous loss history and the
customer's current ability to pay its obligation. Accounts receivable balances
are charged off against the allowance when it is determined that the receivable
will not be recovered.

CASH AND CASH EQUIVALENTS--The Company considers all highly liquid investments
with a maturity of three months or less when purchased to be cash equivalents.

FAIR VALUE OF FINANCIAL INSTRUMENTS--The carrying amounts reported in the
consolidated balance sheets for cash and cash equivalents and certificates of
deposit approximate fair value.

INVENTORIES--Inventories are stated at the lower of cost or net realizable
value, cost being determined by the first-in, first-out method.

PROPERTY, PLANT AND EQUIPMENT--Properties are stated at cost and are depreciated
over their estimated useful lives using the straight-line method for financial
reporting purposes. Accelerated methods of depreciation are used for income tax
purposes. Direct costs related to developing or obtaining software for internal
use are capitalized as property and equipment. Capitalized software costs are
amortized over the software's useful life when the software is ready for its
intended use. The estimated useful lives by asset category are:

<Table>
<Caption>
Asset category                              Estimated useful life
-----------------------------------------------------------------
<S>                                         <C>
Land improvements..........................        15 to 25 years
Buildings and improvements.................        10 to 35 years
Machinery and equipment....................         7 to 15 years
Automatic rivet setting machines on
  lease....................................              10 years
Capitalized software costs.................          3 to 5 years
Other equipment............................         3 to 15 years
</Table>

The Company reviews the carrying value of property, plant and equipment for
impairment whenever events and circumstances indicate that the carrying value of
an asset may not be recoverable from the estimated future cash flows expected to
result from its use and eventual disposition. In cases where undiscounted
expected future cash flows are less than the carrying value, an impairment loss
is recognized equal to an amount by which the carrying value exceeds the fair
value of assets.

When properties are retired or sold, the related cost and accumulated
depreciation are removed from the respective accounts, and any gain or loss on
disposition is recognized currently. Maintenance, repairs and minor betterments
that do not improve the related asset or extend its useful life are charged to
operations as incurred.

INCOME TAXES--Deferred income taxes are determined under the asset and liability
method in accordance with Statement of Financial Accounting Standards No. 109,
"Accounting for Income Taxes." Deferred income taxes arise from temporary
differences between the income tax basis of assets and liabilities and their
reported amounts in the financial statements.

SEGMENT INFORMATION--The Company reports segment information in accordance with
Statement of Financial Accounting Standards No. 131 ("FAS 131"), "Disclosures
about Segments of an Enterprise and Related Information." FAS 131 requires that
segments be

--------------------------------------------------------------------------------
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<PAGE>

                                                            (CHIGAGO RIVET LOGO)
--------------------------------------------------------------------------------

based on the internal structure and reporting of the Company's operations.

NET INCOME PER SHARE--Net income per share of common stock is based on the
weighted average number of shares outstanding of 966,132 in 2005, 2004 and 2003.

ESTIMATES--The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the amounts reported in the financial statements and the
accompanying notes. Actual results could differ from those estimates.

2--BALANCE SHEET DETAILS

<Table>
<Caption>
                                      2005            2004
                                  ------------    ------------
<S>                               <C>             <C>
Inventories:
  Raw materials.................  $ 1,586,744     $ 1,693,341
  Work in process...............    2,218,774       2,136,996
  Finished goods................    2,166,177       2,412,133
                                  -----------     -----------
                                  $ 5,971,695     $ 6,242,470
                                  ===========     ===========
Net Property, Plant and
  Equipment:
  Land and improvements.........  $ 1,029,035     $ 1,015,635
  Buildings and improvements....    6,251,144       5,823,984
  Production equipment, leased
    machines and other..........   29,163,667      29,272,638
                                  -----------     -----------
                                   36,443,846      36,112,257
  Accumulated depreciation......   26,392,338      24,965,941
                                  -----------     -----------
                                  $10,051,508     $11,146,316
                                  ===========     ===========
Other Accrued Expenses:
  Property taxes................  $   115,799     $   117,668
  Unearned revenue and customer
    deposits....................      339,943         113,678
  All other items...............      316,528         373,299
                                  -----------     -----------
                                  $   772,270     $   604,645
                                  ===========     ===========
</Table>

3--LEASED MACHINES--Lease revenue amounted to $107,298 in 2005, $107,976 in 2004
and $160,312 in 2003. Future minimum rentals on leases beyond one year are not
significant. The cost and carrying value of leased automatic rivet setting
machines at December 31 were:

<Table>
<Caption>
                                          2005         2004
                                        ---------    ---------
<S>                                     <C>          <C>
Cost..................................  $246,965     $264,231
Accumulated depreciation..............   233,873      246,589
                                        --------     --------
Carrying value........................  $ 13,092     $ 17,642
                                        ========     ========
</Table>

4--INCOME TAXES--The provision for income tax expense (benefit) consists of the
following:

<Table>
<Caption>
                              2005         2004         2003
                           ----------   ----------   -----------
<S>                        <C>          <C>          <C>
Current:
  Federal................  $   38,000   $  766,000   $   408,000
  State..................          --        7,000         5,000
Deferred.................    (244,000)      19,000        12,000
                           ----------   ----------   -----------
                           $ (206,000)  $  792,000   $   425,000
                           ==========   ==========   ===========
</Table>

The deferred tax liabilities and assets consist of the following:

<Table>
<Caption>
                                      2005            2004
                                  ------------    ------------
<S>                               <C>             <C>
Depreciation....................  $(1,319,998)    $(1,560,071)
                                  -----------     -----------
Inventory.......................      307,912         288,775
Accrued vacation................      176,076         163,478
Allowance for doubtful
  accounts......................       72,700          45,300
Other, net......................       10,226          65,434
                                  -----------     -----------
                                      566,914         562,987
                                  -----------     -----------
                                  $  (753,084)    $  (997,084)
                                  ===========     ===========
</Table>

The following is a reconciliation of the statutory federal income tax rate to
the actual effective tax rate:

<Table>
<Caption>
                                     2005               2004               2003
                               -----------------   ---------------   -----------------
                                AMOUNT       %      Amount     %       Amount      %
                               -----------------   ---------------   -----------------
<S>                            <C>         <C>     <C>        <C>    <C>          <C>
Expected tax at U.S.
 Statutory rate..............  $(206,000)  (34.0)  $787,000   34.0     $422,000   34.0
State taxes, net of federal
 benefit.....................         --      --      5,000     .2        3,000     .2
                               ---------   -----   --------   ----   ----------   ----
Income tax expense
 (benefit)...................  $(206,000)  (34.0)  $792,000   34.2     $425,000   34.2
                               =========   =====   ========   ====   ==========   ====
</Table>

5--NOTE PAYABLE--The Company has a $1 million line of credit, which expires May
31, 2006, and remained unused at December 31, 2005.

6--SHAREHOLDER RIGHTS AGREEMENT--On November 22, 1999, the Company adopted a
shareholder rights agreement and declared a dividend distribution of one right
for each outstanding share of Company common stock to shareholders of record at
the close of business on December 3, 1999. Each right entitles the holder, upon
occurrence of certain events, to buy one one-hundredth of a share of Series A
Junior Participating Preferred Stock at a price of $90, subject to adjustment.
The rights may only become exercisable under certain circumstances involving
acquisition of the Company's common stock, including the purchase of 10 percent
or more by any person or group. The rights will expire on December 2, 2009
unless they are extended, redeemed or exchanged.

7--PROFIT SHARING PLAN--The Company has a noncontributory profit sharing plan
covering substantially all employees. Total expenses relating to the profit
sharing plan amounted to approximately $125,000 in 2005, $252,000 in 2004 and
$133,000 in 2003.

8--OTHER INCOME, NET--consists of the following:

<Table>
<Caption>
                                 2005       2004       2003
                               --------   --------   --------
<S>                            <C>        <C>        <C>
Interest income..............  $148,049   $ 64,488   $ 72,087
Gain from demutualization....   256,660         --         --
Interest expense.............        --         --    (22,847)
Other........................    13,778     13,922     15,533
                               --------   --------   --------
                               $418,487   $ 78,410   $ 64,773
                               ========   ========   ========
</Table>

During 2005, the Company realized a gain of $256,660 from proceeds received due
to the demutualization of an insurance provider.

9--SEGMENT INFORMATION--The Company operates, primarily in the United States, in
two business segments as determined by its products. The fastener segment, which
comprises H & L Tool and the parent company's fastener operations, includes
rivets, cold-formed fasteners and screw machine products. The assembly equipment
segment includes automatic rivet setting machines, parts and tools

--------------------------------------------------------------------------------
                                                                               9
<PAGE>

(CHIGAGO RIVET LOGO)
--------------------------------------------------------------------------------

for such machines and the leasing of automatic rivet setting machines.
Information by segment is as follows:

<Table>
<Caption>
                                                  ASSEMBLY
                                   FASTENER      EQUIPMENT       OTHER      CONSOLIDATED
                                  -----------   ------------   ----------   ------------
<S>                               <C>           <C>            <C>          <C>
YEAR ENDED DECEMBER 31, 2005:
Net sales and lease revenue.....  $33,949,293    $5,811,463    $       --   $39,760,756
Depreciation....................    1,519,971       104,968        78,443     1,703,382
Segment profit..................      180,156     1,249,094            --     1,429,250
Selling and administrative
 expenses.......................                                2,438,571     2,438,571
Interest expense................                                       --            --
Interest income.................                                 (148,049)     (148,049)
Gain from demutualization.......                                 (256,660)     (256,660)
                                                                            ------------
Loss before income taxes........                                               (604,612)
                                                                            ------------
Capital expenditures............      451,601        35,555       160,006       647,162
Segment assets:
 Accounts receivable............    4,758,839       611,772            --     5,370,611
 Inventory......................    4,113,081     1,858,614            --     5,971,695
 Property, plant and
   equipment....................    7,807,711     1,283,624       960,173    10,051,508
 Other assets...................           --            --     6,528,170     6,528,170
                                                                            ------------
                                                                             27,921,984
                                                                            ------------
Year Ended December 31, 2004:
Net sales and lease revenue       $32,477,800..  $6,755,066    $       --   $39,232,866
Depreciation....................    1,513,978       112,868       131,116     1,757,962
Segment profit..................    2,884,308     1,648,034            --     4,532,342
Selling and administrative
 expenses.......................                                2,281,396     2,281,396
Interest expense................                                       --            --
Interest income.................                                  (64,488)      (64,488)
                                                                            ------------
Income before income taxes......                                              2,315,434
                                                                            ------------
Capital expenditures............    1,332,122        19,774         7,686     1,359,582
Segment assets:
 Accounts receivable............    4,318,921       548,694            --     4,867,615
 Inventory......................    4,313,907     1,928,563            --     6,242,470
 Property, plant and
   equipment....................    8,912,268     1,355,437       878,611    11,146,316
 Other assets...................           --            --     7,043,056     7,043,056
                                                                            ------------
                                                                             29,299,457
                                                                            ------------
Year Ended December 31, 2003:
Net sales and lease revenue.....  $31,024,036    $7,166,872    $       --   $38,190,908
Depreciation....................    1,490,592       161,200       209,808     1,861,600
Segment profit..................    2,084,889     1,482,888            --     3,567,777
Selling and administrative
 expenses.......................                                2,374,490     2,374,490
Interest expense................                                   22,847        22,847
Interest income.................                                  (72,087)      (72,087)
                                                                            ------------
Income before income taxes......                                              1,242,527
                                                                            ------------
Capital expenditures............      535,268        89,379        17,068       641,715
Segment assets:
 Accounts receivable............    3,836,968       712,200            --     4,549,168
 Inventory......................    3,191,132     2,042,656            --     5,233,788
 Property, plant and
   equipment....................    9,099,003     1,448,530     1,002,041    11,549,574
 Other assets...................           --            --     6,805,850     6,805,850
                                                                            ------------
                                                                             28,138,380
                                                                            ------------
</Table>

The Company does not allocate certain selling and administrative expenses for
internal reporting, thus, no allocation was made for these expenses for segment
disclosure purposes. Segment assets reported internally are limited to accounts
receivable, inventory and long-lived assets. Long-lived assets of one plant
location are allocated between the two segments based on estimated plant
utilization, as this plant serves both fastener and assembly equipment
activities. Other assets are not allocated to segments internally and to do so
would be impracticable. Sales to two customers in the fastener segment accounted
for 24, 22 and 21 percent and 13, 13 and 13 percent of consolidated revenues
during 2005, 2004 and 2003, respectively.

10--COMMITMENTS AND CONTINGENCIES--The Company recorded rent expense aggregating
approximately $38,000, $44,000 and $40,000 for 2005, 2004 and 2003,
respectively. Total future minimum rentals at December 31, 2005 are not
significant.

The Company is, from time to time involved in litigation, including
environmental claims, in the normal course of business. While it is not possible
at this time to establish the ultimate amount of liability with respect to
contingent liabilities, including those related to legal proceedings, management
is of the opinion that the aggregate amount of any such liabilities, for which
provision has not been made, will not have a material adverse effect on the
Company's financial position.

--------------------------------------------------------------------------------
 10
<PAGE>

                                                            [CHIGAGO RIVET LOGO]
--------------------------------------------------------------------------------

REPORTS OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRMS

To the Board of Directors and Shareholders of Chicago Rivet & Machine Co.

    We have audited the accompanying consolidated balance sheet of Chicago Rivet
& Machine Co. and its subsidiary (the "Company") as of December 31, 2005, and
the related consolidated statements of income, retained earnings and cash flows
for the year then ended. These financial statements are the responsibility of
the Company's management. Our responsibility is to express an opinion on these
financial statements based on our audit.

    We conducted our audit in accordance with the standards of the Public
Company Accounting Oversight Board (United States). 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
consideration of internal control over financial reporting as a basis for
designing audit procedures that are appropriate in the circumstances, but not
for the purpose of expressing an opinion on the effectiveness of the Company's
internal control over financial reporting. Accordingly, we express no such
opinion. An audit also includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, as well
as evaluating the overall financial statement presentation. We believe that our
audit provides 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 Chicago
Rivet & Machine Co. and its subsidiary as of December 31, 2005 and the results
of their operations, changes in retained earnings and cash flows for the year
ended December 31, 2005, in conformity with accounting principles generally
accepted in the United States of America.

/s/ Grant Thornton LLP

Chicago, Illinois
March 23, 2006

To the Board of Directors and Shareholders of Chicago Rivet & Machine Co.

    In our opinion, the accompanying consolidated balance sheet as of December
31, 2004 and the related consolidated statements of income, retained earnings
and cash flows for each of two years in the period ended December 31, 2004
present fairly, in all material respects, the financial position of Chicago
Rivet & Machine Co. and its subsidiary at December 31, 2004, and the results of
their operations and their cash flows for each of the two years in the period
ended December 31, 2004, in conformity with accounting principles generally
accepted in the United States of America. These financial statements are the
responsibility of the Company's management. Our responsibility is to express an
opinion on these financial statements based on our audits. We conducted our
audits of these statements in accordance with the standards of the Public
Company Accounting Oversight Board (United States). 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, assessing the accounting principles used and
significant estimates made by management, and evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.

/s/ PricewaterhouseCoopers LLP

Chicago, Illinois
March 21, 2005

--------------------------------------------------------------------------------
                                                                              11
<PAGE>

[CHIGAGO RIVET LOGO]
--------------------------------------------------------------------------------
QUARTERLY FINANCIAL DATA (UNAUDITED)

<Table>
<Caption>
                           1ST           2ND          3RD          4TH
                         QUARTER       QUARTER      QUARTER      QUARTER
                       -----------   -----------   ----------   ----------
<S>                    <C>           <C>           <C>          <C>
2005
Net Sales and Lease
 Revenue.............  $10,082,862   $10,064,392   $9,718,361   $9,895,141
Gross Profit.........    1,602,439     1,417,751    1,459,759    1,220,338
Net Income (Loss)....      (76,765)     (152,487)    (169,780)         420
Per Share Data:
 Net Income (Loss)
   Per Share.........         (.08)         (.16)        (.17)         .00
 Average Common
   Shares
   Outstanding.......      966,132       966,132      966,132      966,132

2004
Net Sales and Lease
 Revenue.............  $10,168,964   $10,237,556   $9,324,695   $9,501,651
Gross Profit.........    2,022,406     2,230,568    2,154,471    1,870,624
Net Income...........      290,988       386,276      601,615      244,555
Per Share Data:
 Net Income Per
   Share.............          .30           .40          .62          .26
 Average Common
   Shares
   Outstanding.......      966,132       966,132      966,132      966,132

2003
Net Sales and Lease
 Revenue.............  $10,236,463   $10,005,944   $8,831,742   $9,116,759
Gross Profit.........    2,385,529     1,929,633    1,539,172    1,592,470
Net Income...........      465,241       221,621        5,431      125,234
Per Share Data:
 Net Income Per
   Share.............          .48           .23          .01          .13
 Average Common
   Shares
   Outstanding.......      966,132       966,132      966,132      966,132
</Table>

INFORMATION ON COMPANY'S COMMON STOCK

The Company's common stock is traded on the American Stock Exchange (trading
privileges only, not registered.) The ticker symbol is: CVR.

At December 31, 2005, there were approximately 270 shareholders of record.

The transfer agent and registrar for the Company's common stock is:

Computershare Trust Company, N.A.
P.O. Box 43078
Providence, Rhode Island 02940-3078

The following table shows the dividends declared and the quarterly high and low
prices of the common stock for the last two years.

<Table>
<Caption>


                        Dividends
                         Declared                  Market Range
                       ----------------------------------------------------
Quarter                2005    2004          2005                2004
---------------------  ----    ----    ----------------    ----------------
<S>                    <C>     <C>     <C>       <C>       <C>       <C>
First................  $.33*   $.18    $32.69    $27.40    $31.70    $27.10
Second...............   .18     .18    $32.25    $28.60    $29.98    $27.45
Third................   .18     .18    $29.25    $24.20    $27.50    $25.25
Fourth...............   .18     .18    $24.37    $20.00    $27.61    $25.84
</Table>

---------------
* Includes an extra dividend of $.15 per share.

SELECTED FINANCIAL DATA

<Table>
<Caption>
-------------------------------------------------------------------------------------------------------------------------------
                                                           2005           2004           2003           2002           2001
-------------------------------------------------------------------------------------------------------------------------------
<S>                                                     <C>            <C>            <C>            <C>            <C>
Net Sales and Lease Revenue                             $39,760,756    $39,232,866    $38,190,908    $43,012,766    $40,443,010
-------------------------------------------------------------------------------------------------------------------------------
Income (Loss) Before Income Taxes                          (604,612)     2,315,434      1,242,527      3,961,075      2,691,270
-------------------------------------------------------------------------------------------------------------------------------
Net Income (Loss)                                          (398,612)     1,523,434        817,527      2,604,075      1,792,270
-------------------------------------------------------------------------------------------------------------------------------
Net Income (Loss) Per Share                                    (.41)          1.58            .85           2.69           1.85
-------------------------------------------------------------------------------------------------------------------------------
Dividends Per Share                                             .87            .72            .97            .87            .97
-------------------------------------------------------------------------------------------------------------------------------
Average Common Shares Outstanding                           966,132        966,132        966,132        966,537        967,132
-------------------------------------------------------------------------------------------------------------------------------
Working Capital                                          14,839,923     15,222,262     14,020,185     12,874,182     11,616,424
-------------------------------------------------------------------------------------------------------------------------------
Total Assets                                             27,921,984     29,299,457     28,138,380     30,088,173     29,678,013
-------------------------------------------------------------------------------------------------------------------------------
Total Debt                                                       --             --             --      1,632,760      3,432,760
-------------------------------------------------------------------------------------------------------------------------------
Shareholders' Equity                                     23,578,156     24,817,303     23,989,484     24,109,105     22,372,924
-------------------------------------------------------------------------------------------------------------------------------
</Table>

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 12
<PAGE>

                                                            [CHIGAGO RIVET LOGO]
--------------------------------------------------------------------------------

BOARD OF DIRECTORS

EDWARD L. CHOTT(a)(c)(n)
Chairman of the Board and
Chief Executive Officer of
The Broaster Co.
Beloit, Wisconsin

KENT H. COONEY(a)
Chief Financial Officer of
Heldon Bay Limited Partnership
Bigfork, Montana

NIRENDU DHAR
General Manager of
H & L Tool Company, Inc.

WILLIAM T. DIVANE, JR.(a)(c)(n)
Chairman of the Board and
Chief Executive Officer of
Divane Bros. Electric Co.
Franklin Park, Illinois

GEORGE P. LYNCH(c)
Attorney at Law
George Patrick Lynch, Ltd.
Lisle, Illinois

JOHN R. MADDEN(a)(c)(e)(n)
Chairman of the Board of
First National Bank
of La Grange
La Grange, Illinois

JOHN A. MORRISSEY(e)
Chairman of the Board
of the Company
President and Director of
Algonquin State Bank
Algonquin, Illinois

WALTER W. MORRISSEY(e)
Attorney at Law
Morrissey & Robinson
Oakbrook Terrace, Illinois

JOHN C. OSTERMAN(e)
President of the Company

CORPORATE OFFICERS

JOHN A. MORRISSEY
Chairman, Chief
Executive Officer

JOHN C. OSTERMAN
President, Chief Operating
Officer and Treasurer

MICHAEL J. BOURG
Executive Vice President
Controller

NIRENDU DHAR
General Manager of
H & L Tool Company, Inc.

KIMBERLY A. KIRHOFER
Secretary

CHICAGO RIVET & MACHINE CO.

ADMINISTRATIVE & SALES OFFICES
Naperville, Illinois
Norwell, Massachusetts

MANUFACTURING FACILITIES
Albia Division
Albia, Iowa

Jefferson Division
Jefferson, Iowa

Tyrone Division
Tyrone, Pennsylvania

H & L Tool Company, Inc.
Madison Heights, Michigan

WEB SITE
www.chicagorivet.com

(a) Member of Audit Committee
(c) Member of Compensation Committee
(e) Member of Executive Committee
(n) Member of Nominating Committee

Chicago Rivet & Machine Co. - 901 Frontenac Road - P.O. Box 3061 - Naperville,
Illinois 60566 - Telephone: (630) 357-8500

--------------------------------------------------------------------------------
<PAGE>

                      [CHICAGO RIVET GRAPHIC & LETTERHEAD]

--------------------------------------------------------------------------------