|UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549___________________________________________

FORM 10-Q
|------------------------------------------------------------------------------------------------------------------------------
|(Mark One)                                                                                                                    

|[X]                                                                               | Quarterly report under Section 13 or 15(d) of the Securities Exchange Act of 1934.  For the quarterly period ended MARCH 31, 2003, or                                      
|--------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|[   ]                                                                             | Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.  For the transition period from ______________________ to ______________________.
|Commission File Number:  0-4791                                                  
|PAUL MUELLER COMPANY(exact name of registrant as specified in its charter)       
|MISSOURI(state or other jurisdiction of incorporation or organization)            | 44-0520907(I.R.S. employer identification no.)                                                                                                                             
|1600 W. PHELPS ST., SPRINGFIELD, MISSOURI(address of principal executive offices) | 65802(zip code)                                                                                                                                                            

|Registrant's telephone number, including area code:  (417) 831-3000(former name, former address and former fiscal year, if changed since last report)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|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 whether the Registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).    Yes  []      No  [X]Indicate the number of shares outstanding of the issuer's Common Stock as of May 12, 2003:  1,185,071

-- 1 --

|PART I                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | -- | FINANCIAL INFORMATION
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -- | ---------------------
|The condensed financial statements included herein have been prepared by the Registrant without audit, pursuant to the rules and regulations of the Securities and Exchange Commission.  Certain information and footnote disclosures normally included in the financial statements, prepared in accordance with generally accepted accounting principles, have been condensed or omitted pursuant to such rules and regulations, although the Registrant believes that the disclosures are adequate to make the information presented not misleading.  It is suggested that these condensed financial statements be read in connection with the financial statements and the notes thereto included in the Registrant's latest annual report on Form 10-K.  This report reflects all adjustments of a normal recurring nature that are, in the opinion of management, necessary for a fair statement of the results for the interim period.

-- 2 --



|PAUL MUELLER COMPANY AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(Dollars in Thousands)
(Unaudited)
|--------------------------------------------------------------------------------------------------------------





|ASSETS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | Mar. 31, 2003                                                                                                                                             | Dec. 31,2002                                                                                                                                          
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------
|Current Assets
     Cash and cash equivalents	
     Accounts receivable, less reserve of $923 at 3-31-2003, 
           and $933 at 12-31-2002, for doubtful accounts	
     Costs and estimated earnings in excess of billings	
     Inventories --
           Raw materials and components	
           Work-in-process	
           Finished goods	
     Prepayments	
                   Total Current Assets	
Property, Plant & Equipment	
     Less -- Accumulated depreciation	
                   Net Property, Plant & Equipment	
Other Assets                                                                                                                                                                                                                                                                                                                                               | $      101 
 
23,380 
2,071 
$   7,874 
4,944 2,239 
$ 15,057 708 
$ 41,317 
$ 70,192 48,047 
$ 22,145 6,321 
$ 69,783 
======                            | $      702 
 
22,983 
2,995 
$   8,093 
2,953 1,283 
$ 12,329 770 
$ 39,779 
$ 69,433 47,239 
$ 22,194 6,364
$ 68,337 
======                         
|LIABILITIES AND SHAREHOLDERS' INVESTMENT                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                                           |                                                                                                                                                       
|Current Liabilities:
     Short-term bank borrowings	
     Current maturities of long-term debt	
     Accounts payable	
     Accrued expenses	
     Advance billings	
     Billings in excess of costs and estimated earnings	
                   Total Current Liabilities	
Long-Term Pension Liabilities	
Other Long-Term Liabilities	
Contingencies	
Shareholders' Investment:
     Common stock, par value $1 per share -- Authorized 20,000,000 
           shares -- Issued 1,360,775 shares at 3-31-2003 and 12-31-2002	
     Preferred stock, par value $1 per share -- Authorized 1,000,000 
           shares -- No shares issued	
     Paid-in surplus	
     Retained earnings	
     Less -- Treasury stock, 175,704 shares at 3-31-2003 and 
                      12-31-2002, at cost	
                 Deferred compensation	
                 Accumulated other comprehensive loss | $   1,500 
517 
8,131 
8,897 
8,541 2,345 
$ 29,931 
9,335 
1,486 
   
$   1,361 
-- 
4,858 31,868 
$ 38,087 
2,593 
296 6,167 $ 29,031 
$ 69,783 
====== | $   4,183 
517 
7,042 
8,919 
7,701 25 
$ 28,387 
9,328 
1,605 
   
$   1,361 
-- 
4,858 31,860 
$ 38,079 
2,593 
322 6,147 $ 29,017 
$ 68,337 
======





|The accompanying notes are an integral part of these consolidated condensed balance sheets.
|-------------------------------------------------------------------------------------------

-- 3 --



|PAUL MUELLER COMPANY AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(Dollars in Thousands Except Per Share Amounts)
(Unaudited)
|---------------------------------------------------------------------------------------------------------------------------------------------





|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | Three Months Ended
March 31                                                                                                                                              
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 2003                                                                                                                                                                     
|Net Sales	
Cost of Sales	
          Gross Profit	
Selling, General, and Administrative Expenses	
                    Operating Income (Loss)	
Other Income (Expense) --
          Interest income	
          Interest expense	
          Other, net	
Income (Loss) before Income Taxes	
Provision (Benefit) for Income Taxes	
Income (Loss) before Equity in Income (Loss) of Joint Venture	
Equity in Income (Loss) of Joint Venture	
                    Net Income (Loss)	
Earnings (Loss) per Common Share --
          Basic	
          Diluted | $ 27,579 21,605 
 
$   5,974 
 5,008 
 
$      966 
 
 
$          9 
(18)192 
 $      183 
 
$   1,149 
 439 
 
$      710 
 8 
 
$      718 
====== 
 
 
$ 0.61 
$ 0.61





|The accompanying notes are an integral part of these consolidated condensed statements.
|---------------------------------------------------------------------------------------

-- 4 --



|PAUL MUELLER COMPANY AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(Dollars in Thousands)
(Unaudited)
|------------------------------------------------------------------------------------------------------------------------





|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | Three Months Ended
March 31                                                                                                                                                                                                                    
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | 2003                                                                                                                                                                                                                                           
|Cash Flows from Operating Activities:  
     Net income (loss)	
     Adjustments to reconcile net income (loss) to net cash provided
               by operating activities:
          Equity in (income) loss of joint venture	
          Bad debt expense	
          Depreciation and amortization	
          Loss on sales of equipment	
          Changes in assets and liabilities --
               (Increase) in accounts receivable	
               Decrease in costs and estimated earnings in excess of billings	
               (Increase) in inventories	
               Decrease in prepayments	
               Decrease in other assets	
               Increase in accounts payable	
               (Decrease) increase in accrued expenses	
               Increase in advance billings	
               Increase in billings in excess of costs and estimated earnings	
               (Decrease) increase in long-term liabilities	
                    Net Cash Provided by Operating Activities	
Cash Flows (Requirements) from Investing Activities:
     Proceeds from maturities of investments	
     Purchases of investments	
     Proceeds from sales of equipment	
     Additions to property, plant, and equipment	
                    Net Cash (Required) by Investing Activities	
Cash Flows (Requirements) from Financing Activities:
     Short-term bank borrowing	
     Repayment of short-term borrowing	
     Repayment of long-term debt	
     Dividends paid	
                    Net Cash (Required) by Financing Activities	
Net (Decrease) in Cash and Cash Equivalents	
Cash and Cash Equivalents at Beginning of Period	
                    Cash and Cash Equivalents at End of Period	
Supplemental Disclosures of Cash Flow Information:
     Cash paid during the period for --
          Income taxes	
          Interest | $       718 
(8)
156 
920 
4 
 
(553)
924 
(2,728)
62 
31 
1,089 
(22)
840 
2,320 (7)
$    3,746 
$          -- 
-- 
1 (850)
$     (849)
$    1,300 
(3,983)(104)(711)$  (3,498)
$     (601)702 
$       101 
====== 
$       951 
$         13





|The accompanying notes are an integral part of these consolidated condensed statements.
|---------------------------------------------------------------------------------------

-- 5 --

|PAUL MUELLER COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
MARCH 31, 2003 AND 2002, AND DECEMBER 31, 2002
(Unaudited)
|-----------------------------------------------------------------------------------------------------------------------------------------------------
|1.                                                                                                                                                   

|2. | Revenue from sales of fabricated products is recognized upon passage of title to the customer.  Passage of title may occur at the time of shipment from the Registrant's dock, at the time of delivery to the customer's location, or when projects are completed at the customer's location and accepted by the customer.  For large multi-unit projects that are fabricated in the plant, revenue is recognized under the units-of-delivery method, which is a modification of the percentage-of-completion method of accounting for contracts.  The units-of-delivery method recognizes as revenue the contract price of units completed and shipped or delivered to the customer (as determined by the contract) or completed and accepted by the customer at their location.  The applicable manufacturing cost of each unit is identified and charged to cost of sales as revenue is recognized.

Revenues from long-term contracts that involve only a few deliverables and that meet the requirements of Statement of Position 81-1, "Accounting for Performance of Construction-Type and Certain Production-Type Contracts," are recognized on the percentage-of-completion method of accounting.  For plant-fabricated projects, percentage of completion is determined by comparing total manufacturing hours incurred to date for each project to estimated total manufacturing hours for each project.  For field-fabricated projects, percentage of completion is determined by comparing costs incurred to date for each contract to the estimated total costs for each contract at completion.  Estimates of total manufacturing hours and total contract costs for relevant contracts are reviewed continually and, if necessary, updated to properly state the estimates.  Provisions for estimated losses on uncompleted contracts are made in the period in which such losses are determined.  Costs and estimated earnings in excess of billings on uncompleted contracts arise when costs have been incurred and revenues have been recorded, but the amounts are not yet billable under the terms of the contracts.  Such amounts are recoverable from customers upon various measures of performance, including achievement of certain milestones, completion of specified units, or completion of the contract.  Billings in excess of costs and estimated earnings on uncompleted contracts arise as a result of advance and progress billings on contracts.

Costs and estimated earnings on uncompleted contracts and related amounts billed as of March 31, 2003, and December 31, 2002, were as follows:
|-- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |                                                                                       | March 31,   2003                                                          | December 31,2002                                                         
| | ------------------------------------------------------------------------------------- | ------------------------------------------------------------------------- | -------------------------------------------------------------------------
| | Costs incurred on uncompleted contracts	
Estimated earnings	
Less -- Billings to date | $ 25,037,727 9,990,802 
$ 35,028,529 35,302,360 
$    (273,831)
========= | $ 18,651,104 6,381,035 
$ 25,032,139 22,062,207 
$   2,969,932 
=========

-- 6 --

| | Amounts included in the accompanying Consolidated Condensed Balance Sheets at March 31, 2003, and December 31, 2002, under the following captions were:
| | -------------------------------------------------------------------------------------------------------------------------------------------------------

| |                                                                                                                                                          | March 31,    2003                                  | December 31,2002                               
| | -------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------- | -----------------------------------------------
| | Costs and estimated earnings in excess of billings on uncompleted contracts	
Billings in excess of costs and estimated earnings on uncompleted contracts | $   2,070,799 (2,344,630)
$    (273,831)
========= | $   2,994,932 (25,000)
$   2,969,932 
=========

| | Costs and estimated earnings in excess of billings and billings in excess of costs and estimated earnings relate to contracts in progress and are included in the accompanying Consolidated Condensed Balance Sheets as current assets and current liabilities, respectively, as they will be liquidated in the normal course of contract completion, although completion may require more than one year.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|3. | Inventory is recorded at the lower of cost, on a last-in, first-out (LIFO) basis, or market.

Because the inventory determination under the LIFO method can only be made at the end of each fiscal year based on the inventory levels and costs at that time, interim LIFO determinations, including those at March 31, 2003, must necessarily be based on management's estimate of expected year-end inventory levels and costs.  Since estimates of future inventory levels and prices are subject to many factors beyond the control of management, interim financial results are subject to final year-end LIFO inventory amounts.  Accordingly, LIFO inventory components reported for the period ended March 31, 2003, are estimates based on management's knowledge of the Registrant's production cycle, the costs associated with this cycle, and the sales and purchasing volume of the Registrant.
|-- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4. | The following table sets forth the computation of basic and diluted earnings (loss) per common share:
|-- | -----------------------------------------------------------------------------------------------------

| |                                                                                                                                                                                                                                                                                                                                   | Three Months Ended March 31,                                                   
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------
| |                                                                                                                                                                                                                                                                                                                                   | 2003                                                                           
| | Net income (loss)	
Shares for basic earnings per common share --
     Weighted average shares outstanding	
Effect of restricted stock and stock options granted	
Shares for diluted earnings per common share -- 
     Adjusted weighted average shares outstanding	
Earnings (loss) per common share --
     Basic	
     Diluted | $     718,000 
========= 
1,168,021 7,168 
1,175,189 
========= 
$ 0.61 
$ 0.61

|5. | As of March 31, 2003, the Registrant had stock-based compensation plans for employees and nonemployee directors.  The Registrant accounts for those plans under the recognition and measurement principles of APB Opinion No. 25, "Accounting for Stock Issued to Employees," and related interpretations.  No stock-based compensation cost has been reflected in net income, as all options granted under those plans had an exercise price equal to or greater than the market value of the underlying common stock on the date of the grants.
|-- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

-- 7 --

| | The following table illustrates the effect on net income (loss) and earnings (loss) per share if the Registrant had applied the fair value recognition provisions of Statement of Financial Accounting Standards ("SFAS") No. 123, "Accounting for Stock-Based Compensation," to stock-based employee and nonemployee director compensation.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |                                                                                                                                                                                                                                                                                                                                 | Quarter Ended March 31,                                                       
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------
| |                                                                                                                                                                                                                                                                                                                                 | 2003                                                                          
| | Net income (loss), as reported	
Less:  Stock-based compensation expense determined under 
     fair-value-based method for all awards, net of related tax	
Pro forma net income	
Earnings (loss) per common share --
     Basic -- as reported	
     Basic -- pro forma	
     Diluted -- as reported	
     Diluted -- pro forma | $     718,000 14,000 
$     704,000 
========= 
$ 0.61 
$ 0.60 
$ 0.61 
$ 0.60

|6. | The Registrant has three reportable segments:  Industrial Equipment, Dairy Farm Equipment, and Field Fabrication.  Net sales include revenues from sales to unaffiliated and affiliated customers before elimination of intersegment sales.  Intersegment eliminations are primarily sales from the Industrial Equipment segment to the Field Fabrication segment.  The "Other/Corporate" classification includes other revenues and expenses and corporate other income (expense).

Net sales and profitability for each segment for the three months ended March 31, 2003 and 2002, were as follows:
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |                                                         | Dairy Farm Equipment         | Industrial  Equipment     | Field      Fabrication     | Other /    Corporate        | IntersegmentEliminations     | Consolidated           
| | ------------------------------------------------------- | ---------------------------- | ------------------------- | -------------------------- | --------------------------- | ---------------------------- | -----------------------
| | Three Months Ended 3-31-03                              |                              |                           |                            |                             |                              |                        
| | Net sales	
    Income (loss) before 
        income tax | $   2,833    
 
$        (2) | $ 21,700    
 
$      763 | $   3,065    
 
$      214 | $      774    
 
$      174 | $    (793)   
 
$         -- | $ 27,579   
 
$   1,149

| | Three Months Ended 3-31-02                               |                            |                          |                             |                             |                              |                        
| | -------------------------------------------------------- | -------------------------- | ------------------------ | --------------------------- | --------------------------- | ---------------------------- | -----------------------
| | Net sales	
    Income (loss) before  
        income tax | $   4,257    
 
$      382 | $ 13,369    
 
$ (1,925) | $      424    
 
$    (350) | $      768    
 
$      160 | $    (221)   
 
$         -- | $ 18,597   
 
$ (1,733)

|7. | The Registrant reports comprehensive income (loss) and its components in accordance with Statement of Financial Accounting Standards No. 130, "Reporting Comprehensive Income."  Comprehensive income and its components, net of tax, are summarized below:
|-- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |                                                                                                           | Three Months Ended March 31,                   
| | --------------------------------------------------------------------------------------------------------- | -----------------------------------------------
| |                                                                                                           | 2003                                           
| | Net income (loss)	
Foreign currency translation adjustment, net of tax	
Total comprehensive income (loss) | $     718,000 (19,000)
$     699,000 
=========

-- 8 --

|8. | The Registrant has a $7,000,000 bank borrowing facility that expires on May 31, 2004.  Borrowings under the facility incur interest at the LIBOR Daily Floating Rate plus 1.75%.  At March 31, 2003, $1,500,000 was outstanding under the facility.

The Registrant also has a $2,750,000 standby letter-of-credit facility; and as of March 31, 2003, there were standby letters of credit totaling $2,180,584 issued under the facility, with all set to expire within one year.

In addition, the Registrant has a long-term note outstanding as of March 31, 2003, in the principal amount of $1,042,500.  The note is repayable in quarterly installments with the final payment due August 2, 2005, and with a variable interest rate of the LIBOR Daily Floating Rate plus 1.75%.  The note is secured by equipment with a cost of $1,563,000.
|-- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|9. | The Companies provide warranty reserves for product defects as they become known, as a significant portion of the Companies' sales are custom-fabricated products built to customer specifications.  Warranty claims tend to occur shortly after delivery of a project; and a provision for estimated warranty expense is made at the time of notification by the customer of a defect in material or workmanship.  Service department personnel handle all notifications from customers concerning warranty claims, prepare an estimate of the cost to repair or replace the defective item, and establish a reserve for each specific claim.  Warranty claim reserves are reviewed monthly; and reserves are adjusted to properly reflect the remaining estimated costs to complete the repair or replacement.

The following is a reconciliation of changes in the warranty reserve for the quarter ended March 31, 2003:
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Beginning balance -- December 31, 2002	
Costs incurred to satisfy warranty claims	
Aggregate warranty reserves made	
Aggregate changes to warranty reserves	
Ending balance -- March 31, 2003 | $     894,523 
(378,279)
190,662 40,843 
$     747,749 
=========
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -----------------------------------------------------------------

|10. | A lawsuit was filed in May 2002 against the Registrant alleging breach-of-contract/breach-of-express-warranty in connection with the sale of a heat exchanger in October 2000.  The Plaintiff alleges in the suit that it has suffered direct, consequential and incidental damages in excess of $3,100,000.  The suit is in the prediscovery stage, and it is not feasible to determine the likelihood of an unfavorable outcome or the amount of the potential liability, if any.  Management intends to vigorously defend the lawsuit.

The Registrant and its subsidiaries are involved in other legal proceedings incident to the conduct of their business.  It is management's opinion that none of these matters will have a material adverse effect on the consolidated financial position, results of operations, or cash flows.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

-- 9 --

ITEM 2.   MANAGEMENT'S DISCUSSION AND ANALYSIS OF  
                 FINANCIAL CONDITION AND RESULTS OF OPERATION

|PAUL MUELLER COMPANY AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF 
OPERATING RESULTS AND FINANCIAL CONDITION
|------------------------------------------------------------------------------------------------------------------------



The following is Management's discussion and analysis of the significant factors that have affected the Companies' earnings during the periods included in the accompanying Consolidated Condensed Statements of Income.

Safe Harbor For Forward-Looking Statements  --  This Management's Discussion and Analysis of Operating Results and Financial Condition contains certain statements that constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995.  Forward-looking statements provide current expectations of future events based on certain assumptions and include any statement that does not directly relate to any historical or current fact.  All statements regarding future performance, growth, sales and earnings projections, conditions, or developments are forward-looking statements.  Words such as "anticipates," "believes," "intends," "expects," "may," "will," "should," "could," "plans," "forecasts," "estimates," "predicts," "projects," "potential," "continue," "outlook," and similar expressions may be intended to identify forward-looking statements.

Actual future results may differ materially from those described in the forward-looking statements due to a variety of factors, including the fact that the economy generally, and the dairy farm equipment, industrial equipment and field-fabrication markets specifically, are all currently subject to uncertainty, making it difficult to determine if past experience is a good guide to the future.  A downturn in the Registrant's business segments could adversely affect the Registrant's revenues and results of operations.  Other factors affecting forward-looking statements, some of which are identified in the discussion relating to such forward-looking statements, include, but are not limited to, the following: specific economic conditions in the food, dairy, beverage, chemical, pharmaceutical, biotechnological, and other process industries, and the dairy farm equipment market and the impact of such conditions on the Registrant's customers in such markets; the cyclical nature of some of the Registrant's markets; milk prices, feed costs, weather conditions, dairy farm consolidation, and other factors affecting the profitability of dairy farmers; the price of stainless steel; the highly competitive nature of the markets for the Registrant's products, as well as pricing pressures that may result from such competitive conditions; business relationships with major customers and suppliers; the continued operation and viability of the Registrant's major customers; the Registrant's execution of internal performance plans; difficulties or delays in manufacturing; cost-reduction and productivity efforts; competing technologies and difficulties in entering new markets, both domestic and foreign; changes in product mix; future levels of indebtedness and capital spending; claims, including, without limitation, warranty claims, product liability claims, charges or dispute resolutions; ability of suppliers to provide materials as needed and the Registrant's ability to recover any price increases for materials and product pricing; the Registrant's ability to attract and retain key technical and other personnel; labor relations; the failure of customers to make timely payment; any inadequacy of the Registrant's intellectual property protection or the potential for third-party claims of infringement; global economic factors, including currency exchange rates; general economic conditions, including interest rates, the rate of inflation, and commercial and consumer confidence; energy prices; governmental laws and regulations affecting domestic and foreign operations, including tax obligations; changes in accounting standards; worldwide political stability; the effects of terrorist activities and resulting political or economic instability, including U.S. military action overseas; and the effect of acquisitions, divestitures, restructurings, product withdrawals, and other unusual events.



The Registrant cautions the reader that these lists of cautionary statements and risk factors may not be exhaustive.  The Registrant expressly disclaims any obligation or undertaking to release publicly any updates or changes to these forward-looking statements that may be made to reflect any future events or circumstances.

-- 10 --

OPERATING RESULTS



Net income for the first quarter ended March 31, 2003, was $718,000 compared to a net loss of $1,113,000 for the first quarter of 2002.  The improved performance was primarily due to the increase in sales for the first quarter of 2003 versus the first quarter of 2002.



Net sales were $8,982,000 greater for the three months ended March 31, 2003, compared to the three months ended March 31, 2002.  The increase was attributable to higher sales in the Industrial Equipment segment and the Field Fabrication segment for the first three months of 2003 versus 2002, as the Dairy Farm Equipment segment had lower sales for the first quarter of 2003 compared to the first quarter of 2002.  The improvement in sales for the Industrial Equipment segment for the first three months of 2003 compared to 2002 was due to significantly higher sales in the BioPharm product line, as the backlog was 259% higher at the beginning of 2003 versus the beginning of 2002.  Revenues from two large module projects, scheduled for completion during the second half of 2003 and for which revenues are recognized under the percentage-of-completion method, were the primary reasons for the increase in sales.  The Field Fabrication segment recorded higher sales for the three months ended March 31, 2003, versus the same period of a year ago as a result of an improved backlog level at December 31, 2002, compared to the backlog at December 31, 2001.  Dairy Farm Equipment, on the other hand, recorded a decline in sales of $1,424,000, when comparing the first quarter of 2003 to the first quarter of 2002, that was the result of a 67% lower beginning backlog for 2003 versus 2002 and a 33% lower order entry level for the first quarter of 2003 compared to the first quarter of 2002.  The lower order entry for the first quarter of 2003 occurred primarily in the domestic market and was the result of significantly lower milk prices paid to dairy farmers during the first quarter of 2003 versus 2002.  Sales to foreign markets for the Dairy Farm Equipment segment were flat when comparing the quarterly results.



The gross profit increased by $2,938,000 when comparing the first quarter of 2003 to the first quarter of 2002.  The primary reasons for the increase were the significantly higher level of sales, coupled with an improvement in the gross margin rate, which is a measure of the variable profit margin.



Selling, general, and administrative expenses were $138,000 greater for the first quarter ended March 31, 2003, versus the first quarter of 2002, as expenditures were higher for personnel and travel, and provisions were higher for depreciation and potential bad debts.



Other income (expense) was $82,000 greater for the first quarter of 2003 versus the first quarter of 2002 due to royalty income and an increase in miscellaneous income items.



On a segment basis, the Dairy Farm Equipment segment recorded a loss before tax of $2,000 for the quarter ended March 31, 2003, compared to income before tax of $382,000 for the first quarter of 2002.  The change in results between periods was due primarily to the $1,424,000 reduction in sales volume for the reasons mentioned above.  The Industrial Equipment segment recorded income before tax of $763,000 for the first quarter of 2003 compared to a loss before tax of $1,925,000 for the same period of a year ago.  The improved performance was due to the $8,331,000 increase in sales and a higher gross margin rate for the first quarter of 2003 compared to 2002.  The two large module projects mentioned above, for which fabrication began during the third quarter of 2002, contributed significantly to the results of the Industrial Equipment segment for the first quarter of 2003.  The Field Fabrication segment recorded sales of $3,065,000 for the first quarter of 2003 compared to sales of only $424,000 for the first quarter of 2002.  The higher sales level was the sole reason for the improvement in results for the Field Fabrication segment, which included income before tax of $214,000 for the first quarter of 2003 compared to a loss before tax of $350,000 for the first quarter of 2002.



The effective tax rate for the periods presented varied from the statutory tax rate (34%) primarily due to state income taxes and nondeductible meals and entertainment expenses.

-- 11 --

Market risks relating to the Registrant's operations result primarily from changes in foreign-exchange rates and stainless steel prices.  The Registrant periodically enters into foreign-exchange forward or spot contracts to hedge its exposure to foreign-currency-denominated purchase transactions.  Forward contracts generally have durations of less than three months.  Foreign-currency-denominated purchases were $76,700 and $131,300 for the three months ended March 31, 2003 and 2002, respectively.  There were no foreign-exchange forward contracts outstanding at March 31, 2003 or 2002.  There was approximately $19,000 of foreign currencies held at March 31, 2003, and none held at March 31, 2002.  The risk of an increase in stainless steel prices, which can be significant to large Industrial Equipment and Field Fabrication segment projects that extend over several months, is managed by contracting for stainless steel at the time the project is obtained.



Concentration of credit risk, with respect to receivables, is limited due to the large number of customers and their dispersion across a wide geographic area.  The Registrant performs credit evaluations on new customers and periodically reviews the financial condition of existing customers.  For Industrial Equipment orders and Field Fabrication segment projects, down payments and/or progress payments are generally required based on the dollar value of the order and customer creditworthiness.  Foreign receivables generally are secured by irrevocable letters of credit confirmed by major U.S. banks.



Looking to the balance of 2003, there are factors that could affect the results of operations.  The average price of milk paid to dairy farmers in the domestic market for the first three months of 2003 was approximately 16% lower than the average price paid for milk during the same period of 2002.  The average milk price is expected to remain low as long as milk production continues to increase.  Although feed costs are expected to remain favorable, continuation of low milk prices could have an adverse effect on order entry, sales, and profitability for the Dairy Farm Equipment segment.



The current economic conditions and the related depressed capital expenditure level in the United States are having an adverse effect on certain product lines within the Industrial Equipment segment.  For 2002, the Processing Equipment and Heat Transfer product lines, which are part of the Industrial Equipment segment, suffered a combined 23% decline in order entry from the prior year.  For the first quarter of 2003, combined order entry for Processing Equipment and Heat Transfer products was down approximately 2% from the first quarter of 2002.  Also, pricing continues to be very competitive for the projects that are available within the Industrial Equipment segment.



The price of stainless steel has increased since the beginning of 2003 due to increased surcharges.  Surcharges, which are assessed at the time of shipment from the vendor, have been implemented due to the increase in and the volatility of the market prices of nickel, chromium, and molybdenum (materials used in the production of stainless steel).  The effect of surcharges on stainless steel prices may delay projects or reduce profitability if the increases cannot be passed along in the form of higher prices.  The effect of higher stainless steel prices also may require additional increases to the LIFO reserve.



In general, the Registrant's business is not subject to seasonal variation in demand for its products.  However, because orders for certain products can be large in terms of sales dollars, a small number of large orders can have a significant impact on the Registrant's sales in any one particular quarter.  As a result, a relatively small reduction or delay in the number of orders shipped or delivered, or the percentage of completion achieved can have a material effect on the Registrant's sales for any particular quarter.  Gross margins may vary from quarter to quarter due to the variations in the profitability of large orders, as well as the mix of the various products manufactured or fabricated by the Registrant.  Accordingly, the results of operations for the Registrant for any one particular quarter are not necessarily indicative of the results that may be expected for any subsequent quarter of the calendar year.

-- 12 --

Consolidated backlog totaled $58,695,000 at March 31, 2003, compared to $35,943,000 at March 31, 2002.  The backlog for the Industrial Equipment segment (exclusive of shop work for the Field Fabrication segment) was $53,307,000 and $30,819,000 at March 31, 2003 and 2002, respectively.  The backlog for the Dairy Farm Equipment segment was $1,805,000 and $4,110,000 at March 31, 2003 and 2002, respectively.  The Field Fabrication segment backlog was $3,583,000 at March 31, 2003, versus $1,014,000 at March 31, 2002.  The increase in the Industrial Equipment segment backlog was almost exclusively due to the BioPharm product line, which consists of pure-water/pure-steam generating equipment, tanks and vessels, and modular systems for the pharmaceutical and biotechnology industries.  Approximately 96% of the March 31, 2003, consolidated backlog will be recognized as sales over the next 12 months.



The level of backlog at any particular point in time is not necessarily indicative of the future operating performance of the Registrant in the following quarter due to the long manufacturing or fabrication cycles for some projects.  Orders in backlog are subject to delays in completion and/or holds at the request of the customer, and this could have a significant impact on sales and quarterly results.



FINANCIAL CONDITION



The consolidated financial condition and the liquidity of the Registrant as of March 31, 2003, have not changed significantly since December 31, 2002.  There were no significant commitments for capital expenditures as of March 31, 2003.



Net cash provided by operating activities for the three months ended March 31, 2003, was higher than net cash provided by operating activities for the three months ended March 31, 2002, due to improved results (a net loss of $1,113,000 for the first quarter of 2002 compared to net income of $718,000 for the first quarter of 2003) and an increase in billings in excess of costs and estimated earnings.



The Registrant has a $7,000,000 bank borrowing facility that expires on May 31, 2004; and there was $1,500,000 borrowed under the facility at March 31, 2003.  Additionally, the Registrant has a facility of $2,750,000 to support standby letters of credit.  As of March 31, 2003, there was $2,180,584 of standby letters of credit issued and outstanding under the facility, and all are set to expire within one year.  The Registrant also has a $1,042,500 note outstanding (repayable in quarterly installments of $104,250 through August 2, 2005) that is secured by equipment.



NONAUDIT SERVICES OF INDEPENDENT AUDITORS -- Pursuant to Section 10A(i)(2) of the Securities Exchange Act of 1934, as added by Section 202 of the Sarbanes-Oxley Act of 2002, we are responsible for disclosing to investors the nonaudit services approved by our Audit Committee to be performed by KPMG LLP, our independent auditors.  Nonaudit services are defined in the law as services other than those provided in connection with an audit or review of the financial statements of the Registrant.  The Audit Committee approved (a) nonaudit tax compliance services in connection with the preparation of the Registrant's tax returns and (b) research and consultation on various federal, state, and local tax issues.





ITEM 3.   QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK



Certain information concerning market risk is set forth in Item 2 on page 12 and is incorporated herein by reference.  Other disclosure requirements are not submitted because they are not applicable or they are not material.

-- 13 --

ITEM 4.   CONTROLS AND PROCEDURES



Within 90 days prior to the date of this report, the Registrant carried out an evaluation, under the supervision and with the participation of the Registrant's Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of the Registrant's disclosure controls and procedures pursuant to Exchange Act Rule 13a-14.  Based upon that evaluation, the Chief Executive Officer and Chief Financial Officer have concluded that the Registrant's disclosure controls and procedures are effective to ensure that information required to be disclosed in the reports that the Registrant files or submits under the Exchange Act is recorded, processed, summarized, and reported as required and within the time periods specified in the Securities and Exchange Commission's rules and forms.  There have been no significant changes in the Registrant's internal controls or in other factors that could significantly affect these controls subsequent to the date of the evaluation discussed in this Item 4.

-- 14 --

|PART II    --OTHER INFORMATION
|------------------------------

|Item 6. | Exhibits and reports on Form 8-K.
|------- | ---------------------------------

| | a. | Exhibits                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                           
| | -- | ------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------
| |    | Exhibit
Number
---------- | Exhibit
-------------------------------------------------------------------------------------------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | Sequentially
Numbered
Page
---------------
| |    | (10)                      | The Paul Mueller Company Noncontract Employees Retirement Plan, amended and restated effective January 1, 2000, and adopted by the Board of Directors of the Registrant on January 27, 2000, was attached as Exhibit (10) on page 36 of the Registrant's Form 10-K for the year ended December 31, 1999, and is incorporated herein by reference.  Amendment Number One, adopted by the Board of Directors on January 30, 2003, was attached as Exhibit (10) on page 43 of the Registrant's Form 10-K for the year ended December 31, 2002, and is incorporated herein by reference.  Amendment Number Two was adopted by the Executive Committee of the Board of Directors on March 24, 2003, and was executed on April 2, 2003 | 18                                        

| | b. | Reports on Form 8-K -- There were no reports on Form 8-K filed for the three months ended March 31, 2003.
| | -- | ---------------------------------------------------------------------------------------------------------

|SIGNATURES                                                                                                                                                                               
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
|DATE:    May 12, 2003                                                                                                                                                                    

-- 15 --

|CERTIFICATION
|-------------

|I, Daniel C. Manna, certify that:
|---------------------------------

|1. | I have reviewed this quarterly report on Form 10-Q of Paul Mueller Company;
|-- | ---------------------------------------------------------------------------

|2. | Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|3. | Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this quarterly report;
|-- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4. | The Registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) for the Registrant and we have:
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (a) | designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared;
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | evaluated the effectiveness of the Registrant's disclosure controls and procedures as of a date within 90 days prior to the filing date of this quarterly report (the "Evaluation Date"); and
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c) | presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date;
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------

|5. | The Registrant's other certifying officer and I have disclosed, based on our most recent evaluation, to the Registrant's auditors and the audit committee of Registrant's board of directors (or persons performing the equivalent function):
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (a) | all significant deficiencies in the design or operation of internal controls which could adversely affect the Registrant's ability to record, process, summarize, and report financial data and have identified for the Registrant's auditors any material weaknesses in internal controls; and
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant's internal controls; and
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------

|6. | The Registrant's other certifying officer and I have indicated in this quarterly report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|DATE:    May 12, 2003 | /S/ DANIEL C. MANNA 
      Donald E. Golik, Senior Vice President and       
                     Chief Financial Officer
|--------------------- | -------------------------------------------------------------------------------------------------------------------------

-- 16 --

|CERTIFICATION
|-------------

|I, Donald E. Golik, certify that:
|---------------------------------

|1. | I have reviewed this quarterly report on Form 10-Q of Paul Mueller Company;
|-- | ---------------------------------------------------------------------------

|2. | Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|3. | Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this quarterly report;
|-- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4. | The Registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) for the Registrant and we have:
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (a) | designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared;
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | evaluated the effectiveness of the Registrant's disclosure controls and procedures as of a date within 90 days prior to the filing date of this quarterly report (the "Evaluation Date"); and
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c) | presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date;
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------

|5. | The Registrant's other certifying officer and I have disclosed, based on our most recent evaluation, to the Registrant's auditors and the audit committee of Registrant's board of directors (or persons performing the equivalent function):
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (a) | all significant deficiencies in the design or operation of internal controls which could adversely affect the Registrant's ability to record, process, summarize, and report financial data and have identified for the Registrant's auditors any material weaknesses in internal controls; and
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant's internal controls; and
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------

|6. | The Registrant's other certifying officer and I have indicated in this quarterly report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|DATE:    May 12, 2003 | /S/ DONALD E. GOLIK 
      Donald E. Golik, Senior Vice President and      
                     Chief Financial Officer
|--------------------- | ------------------------------------------------------------------------------------------------------------------------

-- 17 --