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

				   FORM 10-K
				 ANNUAL REPORT

		     Pursuant to Section 13 or 15(d) of the
			Securities Exchange Act of 1934

For the fiscal year ended December 31, 2002    Commission File Number 333-59541

                         GREAT LAKES ACQUISITION CORP.
             (Exact name of registrant as specified in its charter)


            DELAWARE                                    76-0576974
(State or other jurisdiction of                      (I.R.S. Employer
incorporation or organization)                       Identification No.)

551 Fifth Avenue, Suite 3600, New York, NY                 10176
(Address of principal executive office)                  (Zip Code)

                                (212) 370-5770
             (Registrant's telephone number, including area code)

	   Securities registered pursuant to Section 12(b) of the Act:
                                     None

	   Securities registered pursuant to Section 12(g) of the Act:
                  13 1/8% Senior Discount Debentures due 2009
				(Title of Class)

     Indicate by check mark whether the registrant (i) 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 regis-
trant was required to file such reports), and (ii) has been subject to such
filing requirements for the past 90 days.  Yes [X]  No [ ]

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

     There is no public market for registrant's common stock.

     As of March 14 2003, the registrant had outstanding 65,950 shares of its
Common Stock.

		      DOCUMENTS INCORPORATED BY REFERENCE
                                     None
<PAGE> 1 of 60
<TABLE>
                         GREAT LAKES ACQUISITION CORP.

         Annual Report on Form 10-K for the Year Ended December 31, 2002

                               Table of Contents
<CAPTION>
                                                                          Page
<S>                                                                       <C>
                                    PART I
Item  1.  Business.........................................................3

Item  2.  Properties.......................................................6

Item  3.  Legal Proceedings................................................7

Item  4.  Submission of Matters to Vote of Security Holders................7

                                    PART II
Item  5.  Market for Registrant's Common Equity and Related
          Stockholder Matters..............................................7

Item  6.  Selected Financial Data..........................................8

Item  7.  Management's Discussion and Analysis of Financial
          Condition and Results of Operations..............................9

Item 7A.  Quantitative and Qualitative Disclosures About Market Risk.......15

Item  8.  Financial Statements and Supplementary Data......................17

Item  9.  Changes in and Disagreements with Accountants
          on Accounting and Financial Disclosure...........................17

                                    PART III
Item 10.  Directors and Executive Officers of the Registrant...............18

Item 11.  Executive Compensation...........................................19

Item 12.  Security Ownership of Certain Beneficial Owners and Management
          and Related Stockholder Matters..................................22

Item 13.  Certain Relationships and Related Transactions...................22

Item 14.  Controls and Procedures..........................................23

                                    PART IV
Item 15.  Exhibits, Financial Statement Schedules and Reports on Form 8-K..24

Index to Financial Statements.............................................F-1

Schedule I - Parent company-only financial information....................S-1
</TABLE>
<PAGE> 2 of 60
                                    PART I

Item 1.  Business

Introduction

        Great Lakes Acquisition Corp. (the "Company" or "GLAC"), through its
wholly-owned operating subsidiary Great Lakes Carbon Corporation ("GLC"), is
the largest producer of calcined petroleum coke ("CPC") in the world.  Anode
grade CPC is the principal raw material used in the production of carbon anodes
for use in aluminum smelting.  Anode grade CPC sales represented 82% of the
Company's total 2002 sales.  The Company also sells industrial grade CPC for
use in the production of titanium dioxide, as a carbon additive in the
manufacture of steel and foundry products and for use in other specialty
materials and chemicals markets.  The Company produces CPC from raw petroleum
coke ("RPC"), a by-product of petroleum refining, utilizing a high-temperature,
rotary-kiln process developed by the Company in the 1930's.
        The Company was formed in March 1998 by American Industrial Capital
Fund II, L.P. ("AIP"), a private equity fund, which owns 98.56% of its
outstanding capital stock.
        On March 27, 2002, the Company purchased a calcining facility located
in Baton Rouge, Louisiana (the "Baton Rouge Plant") from Alcoa, Inc. ("Alcoa")
for $31.7 million, net of a purchase price adjustment.  The transaction was
financed by two $10 million promissory notes bearing interest at 5% per annum
payable to Alcoa in November 2002 and May 2003 and incremental term loan
borrowings under the Company's existing syndicated senior secured credit
facility of $12 million.
        The addition of the Baton Rouge Plant, which can produce up to 700,000
tons per year of CPC, increased the Company's total operating capacity to 2.3
million tons from 1.6 million tons.  The Company also operates plant sites
in Port Arthur, Texas; Enid, Oklahoma; and through a wholly-owned subsidiary,
Copetro S. A. ("Copetro"), at the port of La Plata, Argentina.

Description of Principal Markets

Anode Grade CPC

        Carbon anodes, which are manufactured utilizing anode grade CPC, are
used by every primary aluminum smelter in the world as a key component in
aluminum smelting pot lines.  Carbon anodes act as conductors of electricity
and as a source of carbon in the electrolytic cell that reduces alumina into
aluminum metal.  In this electrochemical aluminum smelting process, the carbon
anodes, and hence the CPC, are consumed.  Carbon anode manufacturers,
predominantly captive operations of aluminum smelting companies, purchase anode
grade CPC, mix it with pitch binders, press the mixture into blocks and then
bake the mixture to form a finished, hardened carbon anode.  The quality of the
anode grade CPC, in terms of both its physical and chemical properties, has an
effect on carbon anode life, which is an important economic factor in aluminum
production, and on the amount of impurities in the finished aluminum metal.
Anode grade CPC is approximately 97% pure carbon; however, anode grade CPC does
vary based on the content of sulfur and other trace elements in the finished
product as well as on its physical properties.  GLC produces a full range of
anode grade CPC, which is typically sold in bulk shipments, tailored to the
specific needs of its aluminum company customers.
        Worldwide demand for anode grade CPC is directly tied to the global
production of primary aluminum.  After six years of consecutive growth,
aluminum production decreased in 2001 due to shutdowns of smelting capacity,
principally in the Pacific Northwest, in response to power costs and the world
economic slowdown.  In 2002, aluminum production returned to a growth mode,
registering an increase of 3.3%.  Despite the cutbacks in 2001, the Company has
operated at near effective capacity during the periods in question.
        While there are at present no viable substitutes for CPC in carbon
anodes, in June 2000, Alcoa confirmed a financial analyst report claiming that
it was working on the development of an inert anode, which would eliminate the
use of CPC in aluminum smelting.  Alcoa stated that significant operating and
capital investment savings could be obtained with inert anodes together with
<PAGE> 3 of 60

certain environmental benefits in the form of the reduction and elimination of
certain emissions.
        Inert anode development has been pursued for decades by several
organizations, including the U.S. Department of Energy ("DOE").  Although
various compositions of inert anodes have been explored, as late as 1999 the
DOE concluded that no fully acceptable inert materials had yet been revealed.
In subsequent statements, Alcoa has indicated that even though their research
to date has been encouraging, there was no assurance that the inert anode they
are developing would be successful in commercial operation.
        While the research being conducted by Alcoa (and possibly others) is to
a large extent confidential, the Company believes that there are many technical
barriers to be overcome before this alternative technology becomes commercially
viable.

Industrial Grade CPC

        CPC is also used in a number of other (non-aluminum) applications,
which the Company refers to as industrial grade CPC.  These include sales of
CPC for use in the production of titanium dioxide, as a recarburizer, i.e.,
carbon additive, in the manufacture of steel and foundry products and for use
in other specialty materials and chemicals markets.  Titanium dioxide is a
widely used brilliant white pigment, the primary applications for which are in
paints, plastics and paper.  Industrial grade CPC is used as an energy and
carbon source in the production of titanium dioxide from titanium-bearing ores
using the chloride process and is also used as a recarburizer in the production
of steel and foundry products and as a carbon source in certain chemical
processes.
        Industrial grade CPC is generally similar to anode grade CPC in its
physical characteristics, but typically has higher chemical impurities.  In
addition, industrial grade CPC is usually further processed to meet sizing
specifications and packaged for sale to end users in smaller quantities than
is anode grade CPC.

Raw Materials and Suppliers

        CPC is sold in a world market.  However, calcining and transportation
economics dictate that producers of CPC are most efficiently located near
petroleum refining operations, which are the source of RPC, the raw material
used to produce CPC.  RPC is a by-product of the oil refining process,
constituting the solid fraction remaining after the refinery has essentially
removed all of the liquid petroleum products from the crude oil.  Many, but
not all, oil refineries produce RPC.  Sales of RPC do not constitute a material
portion of oil refiners' revenues.  Because a substantial portion of western
world petroleum refining capacity is based domestically, the United States has
a majority of western world CPC production capacity.  CPC quality, which is
extremely important to aluminum smelters, is highly dependent upon the quality
of the RPC utilized in the calcining process.  The RPC produced by different
oil refineries covers a range of physical and chemical properties depending
upon both the types of crude oils being refined and the specific process being
employed by the refinery.  Only a portion of the RPC produced by the world's
oil refineries is of suitable quality for producing anode grade or industrial
grade CPC, with anode grade requirements being generally more stringent than
industrial grade requirements. If the RPC produced by a refinery is not of
sufficient quality for calcining, it is typically sold for its fuel value at a
substantially lower price.
        The Company purchases a range of RPC from a number of domestic and
international oil refineries with the objective of blending these cokes to meet
the specific quality requirements of its customers at the lowest raw material
cost.  RPC is typically purchased by the Company under contracts with a term of
one or more years, although the Company does make some spot purchases.  In
2002, the Company purchased approximately 56.5% of its RPC requirements from
four petroleum refiners.
<PAGE> 4 of 60

Manufacturing Process

        The calcining process essentially drives off moisture, impurities and
volatile matter from the RPC at high temperatures, to produce a purer form of
carbon in the resulting CPC.  Both anode and industrial grade CPC are
manufactured by the Company to specific customer specifications. The Company
purchases RPC from a number of sources and has the capability to blend these
raw cokes specifically to meet a customer's required chemical and physical
properties.  After blending, the raw coke is fed into the higher end of a
rotating kiln, which is up to 12 feet in diameter and up to 220 feet long.  The
coke in the kiln is tumbled by rotation and moves down-kiln counter current to
the heat produced by burning natural gas or oil at the lower, firing end of the
kiln.  Kiln temperatures range from 2200 to 2500 degrees Fahrenheit.
Typically, coke is retained in the kiln for approximately one hour, with the
resident time and heating rates critical to the production of the proper
quality CPC.  The moisture, impurities and volatile matter in the coke are
driven off in the kiln.  As the coke is discharged from the kiln, it drops
into a cooling chamber, where it is quenched with water, treated with dedusting
agents and carried by conveyor to silos to be kept in covered storage until
shipped to customers by truck, rail, barge or ocean-going vessel.  In the case
of certain industrial grade products, the CPC is also crushed and screened to
meet proper sizing requirements.

Marketing

        The Company sells its CPC to end users through its direct sales staff
and exclusive sales representatives.  Substantially all sales are shipped
directly to end-users.  GLC's domestic sales activity is handled by the
Company's direct sales staff.  Internationally, GLC's direct sales staff is
supplemented by exclusive sales representatives.
        The Company typically sells anode grade CPC under contracts with terms
of one or more years, although a small percentage is sold on a spot basis. CPC
is shipped by the Company in bulk quantities to its customers via truck, rail,
barge or ocean-going vessel.  Industrial grade CPC is generally sold to
customers under annual contracts or on a purchase order basis and is shipped in
smaller quantities in bulk or packaged to meet customer requirements.
        In 2002, approximately 39% of the Company's net sales were to U.S.-
based customers and approximately 61% were to customers in international
markets.  Approximately 54.2% of the Company's 2002 net sales were made to four
customers with Alcoa accounting for 29.2% of the total.

Competition

        The Company is the largest producer of CPC in the world and competes
with domestic and foreign calciners in a worldwide market with respect to both
anode and industrial grade CPC sales.  Marketing of CPC to both anode and
industrial grade customers is based primarily on price and quality.  Worldwide
demand for anode grade CPC is tied directly to the global production of primary
aluminum.  Sales of industrial grade CPC are dependent on the particular
demands of the titanium dioxide, steel and foundry, and certain chemical
markets.  GLC is one of four major domestic calciners of anode grade CPC.  Two
calciners, GLC and Calciner Industries, Inc., are independent.  The other
calciners are BP Amoco (formerly Atlantic Richfield Co. or Arco), whose
petroleum refining operations provide its raw material supply and Venture Coke
Company (Venco), which is 50% owned by Conoco, Inc.

Employees

        As of December 31, 2002, the Company employed 315 persons.  The Company
is a party to collective bargaining agreements at three of its four facilities,
covering approximately two-fifths of its employees.  A collective bargaining
agreement with the International Association of Machinists and Aerospace
Workers, covering hourly employees at the Enid, Oklahoma facility, expires on
March 1, 2004.  A new collective bargaining agreement with the United
Steelworkers of America, that was ratified on October 27, 2002 and covers
hourly employees at the Baton Rouge, Louisiana facility, expires on September
30, 2005.  Certain employees at the La Plata, Argentina facility of Copetro are
<PAGE> 5 of 60

covered by an annual labor contract which basic terms are governed by Argentine
federal labor legislation.  The Port Arthur plant is operated with a non-union
workforce.

Patents, Trademarks

        None of the Company's business is dependent upon any patents or other
intellectual property.

Environmental Matters

        The Company's facilities and operations are subject to various federal,
state and local and foreign governmental laws and regulations with respect to
the protection of the environment, including regulations relating to air and
water quality.  The Company believes that it possesses all of the permits
required for the conduct of its operations and that it is currently in material
compliance with all relevant environmental regulations.  The Company spent
approximately $1.5 million on capital expenditures related to pollution control
facilities in 2002 and anticipates spending approximately $1.6 million and $1.8
million in 2003 and 2004, respectively.
        The Clean Air Act was amended in 1990.  While the Company believes that
its facilities meet current regulatory standards applicable to air emissions,
some of its facilities may be required to comply with new standards for air
emissions to be adopted by the United States Environmental Protection Agency
and state environmental agencies over the next several years.  At this time,
the Company cannot estimate when new standards will be imposed or what control
technologies or changes in processes the Company may be required to install or
undertake.  Based on information currently available to it, the Company
believes that attaining compliance with such regulations will not have a
material adverse effect on the financial position, results of operations or
cash flows of the Company.

Item 2.  Properties

        The Port Arthur facility has four kilns that have the capacity to
produce 700,000 tons per year of CPC.  Port Arthur is also the site of the
Company's primary laboratory and testing facility.  Port Arthur has substantial
CPC storage capacity and the capability to receive and ship product by truck,
rail, barge or ocean-going vessel.  The 115-acre Port Arthur property is leased
by the Company under a long-term lease, which was originally executed in the
1930's and the most recent renewal of which expires at the start of 2010.
Effective October 20, 2000, an agreement covering the receipt of revenue from
the delivery of flue gas to a waste heat recovery facility owned and operated
by a third party at the Company's Port Arthur, Texas plant site terminated.
The Company subsequently purchased the heat recovery assets at scrap value
and while it maintains the option of restarting the facility, should another
interested third party be found, there are no plans to do so at the present.
The revenue realized by the Company in connection with this activity, which was
treated as a reduction to cost of goods sold, was $2.2 million in 2000.
        The Enid facility has three kilns that have the capacity to produce
500,000 tons per year of CPC.  The Enid plant has the capability to receive and
ship material by truck or rail and is located on 320 acres of property that is
owned by the Company.
        The Baton Rouge facility has four kilns that have the capacity to
produce 700,000 tons per year of CPC.  Situated on 55 acres of owned property,
the facility has the capability to receive and ship material by truck or rail
and has ready access to barge or ocean-going vessel transportation.
        The La Plata, Argentina facility operated by Copetro has two kilns with
the capacity to produce 440,000 tons per year of CPC.  The plant is located on
30 acres of leased land at the port of La Plata.  The plant has the capability
to receive RPC by rail or truck and to ship CPC by truck or ocean-going vessel.
        The Company's principal business office is located at 4 Greenspoint
Plaza, Suite 2200, 16945 Northchase Drive, Houston, Texas 77060 under a lease
expiring in January 2006.
        The Company's executive office is located in leased space at 551 Fifth
Avenue, Suite 3600, New York, New York 10176.
<PAGE> 6 of 60

Item 3.  Legal Proceedings

        The Company is a party to legal proceedings that are in various stages
of resolution.  Management, after discussion with legal counsel, is of the
opinion that the ultimate resolution of these matters will not have a material
adverse effect on the results of operations or financial position of the
Company.

Item 4.  Submission of Matters to Vote of Security Holders

        No matters were submitted for vote of security holders of the Company
during the three months ended December 31, 2002.

                                    PART II

Item 5.  Market for Registrant's Common Equity and Related Stockholder Matters

        (a) There is no established market in which the Company's Common Stock,
par value $.01 per share (the "Common Stock"), is publicly traded, because all
of such Common Stock is privately held.
        (b) As of the date of this annual report there were thirteen holders of
record of the Company's common stock.
        (c) During 2002, no cash dividends were declared by the Board of
Directors.  Any future determination as to the payment of dividends will depend
upon the Company's financial condition, results of operations, capital
requirements and such other factors as the Board of Directors deems relevant.
The Company's debt instruments limit the conditions under which the Company may
pay a cash dividend on its outstanding Common Stock.
        (d) The information required by Item 201(d) of Regulation S-K
(Securities Authorized for Issuance Under Equity Compensation Plans) is
included in Item 12 of this report.
<PAGE> 7 of 60

Item 6.  Selected Financial Data

        The following table sets forth selected financial data of the Company
from May 22, 1998 to December 31, 1998 and for the period then ended and as of
and for the years ended December 31, 1999, 2000, 2001 and 2002 and for the
predecessor company from January 1, 1998 to May 21, 1998 and for the period
then ended.  The financial data set forth below should be read in conjunction
with "Management's Discussion and Analysis of Financial Condition and Results
of Operations" in Item 7 and the consolidated financial statements of the
Company and the related notes thereto included elsewhere herein.

                     Period    Period
                     Jan.1     May 22
                       to        to
                     May 21    Dec.31          Year Ended December 31,
                      1998      1998      1999      2000      2001      2002
                   --------- --------- ---------- --------- --------- ---------
Statement of
 operations data
------------------
Net sales          $ 92,928  $ 149,733  $247,998  $263,601  $270,554  $307,567
Gross Profit         23,681     39,255    62,751    60,883    54,588    54,615
Operating income     10,611     27,974    42,500    41,031    35,895    42,812
Other expense         2,248     22,071    33,054    32,332    34,077    30,925

Income before
 income tax and
 extraordinary item   8,363      5,903     9,446     8,699     1,818    11,887

Income tax expense    2,839      4,893     4,905     4,790     1,009     7,201

Extraordinary (loss)
 gain, net of tax    (7,113)         -       322     3,804     3,717         -
                   --------- --------- ---------- --------- --------- ---------
Net income (loss)  $ (1,589) $   1,010  $  4,863  $  7,713  $  4,526  $  4,686
                   ========= ========= ========== ========= ========= =========

Adjusted EBITDA(1)
-------------------
Operating income   $ 10,611  $  27,974  $ 42,500  $ 41,031  $ 35,895  $ 42,812
Depreciation and
 amortization         3,443     12,013    20,410    21,708    21,973    18,851
AIP fees & expense        -      1,185     2,305     2,568     2,179     2,032
Prior ownership:
 Fees and expenses    8,831         22         -         -         -         -
 Other related
  agreements            318          -         -         -         -         -
                   --------- --------- ---------- --------- --------- ---------
Total adjusted
 EBITDA            $ 23,203  $  41,194  $ 65,215  $ 65,307  $ 60,047  $ 63,695
                   ========= ========= ========== ========= ========= =========

Balance sheet data
-------------------
Total assets       $182,342  $ 492,886  $476,809  $459,041  $453,808  $490,991
Total long-term
 obligations       $ 31,206  $ 384,355  $365,256  $332,392  $319,094  $340,458

Statement of cash flow data
---------------------------
Cash provided (used) by
Operating
  Activities...... $ 21,844  $  10,719  $ 20,353  $ 31,817  $ 21,233  $ 47,239
Investing
  Activities...... $ (9,058) $(282,173) $ (4,280) $ (4,255) $ (4,183) $(14,191)
Financing
  Activities...... $  4,767  $ 272,751  $(19,374) $(23,425) $(16,103) $(21,791)

(1) Adjusted EBITDA represents operating income before depreciation,
amortization, fees and expenses payable to the Company's prior ownership group
under agreements which where terminated at the Company's acquisition by AIP on
May 22, 1998 and on-going AIP fees and expenses. Adjusted EBITDA should not be
considered a substitute for net income, cash flow from operating activities or
other cash flow statement data prepared in accordance with generally accepted
accounting principles or as an alternative to net income as an indicator of
operating performance or cash flows as a measure of liquidity.  Adjusted EBITDA
is presented here only to provide additional information with respect to the
Company's ability to satisfy debt service.  While Adjusted EBITDA is frequently
used by management as a measure of operations and the ability to meet debt
service requirements, it is not necessarily comparable to other similarly
titled captions of other companies due to potential inconsistencies in the
method of calculation.
<PAGE> 8 of 60

Item 7. Management's Discussion and Analysis of Financial Condition and Results
        of Operations

General

        This Form 10-K contains certain forward-looking statements, including,
without limitation, statements concerning the Company's future financial
position, business strategy, budgets, projected costs and plans and objectives
of management for future operations. These forward-looking statements are made
pursuant to the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995.  Forward-looking statements generally can be identified by
the use of forward-looking terminology such as may, will, expect, intend,
estimate, anticipate, believe, should, plans or continue, or the negative
thereof or variations thereon or similar terminology.  Although the Company
believes that the expectations reflected in such forward-looking statements are
reasonable, it can give no assurance that such expectations will prove to have
been correct. These forward-looking statements are subject to a number of risks
and uncertainties, including, the factors discussed in the Company's filings
with the Securities and Exchange Commission. Actual results could differ
materially from these forward-looking statements.

        Through its wholly-owned operating subsidiary, GLC, the Company is the
world's largest producer of CPC.  The Company produces anode grade CPC, which
is the principal raw material used in the production of carbon anodes used in
primary aluminum production, and industrial grade CPC, which is used in a
variety of specialty metals and materials applications.  CPC is produced
from RPC utilizing a high temperature, rotary kiln process.  RPC is a by-
product of petroleum refining process and constitutes the largest single
component of the Company's cost of goods sold.  The Company's principal source
of revenues and profits are sales of anode grade CPC to the aluminum industry.
Historically, the Company's profitability has been primarily a function of its
CPC sales volumes, CPC pricing and the cost of RPC.

Critical Accounting Policies

        The Company's significant accounting policies are more fully described
in Note 1 to the consolidated financial statements.
        The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the amounts and disclosures reported in the financial
statements and accompanying notes.  Actual results could differ from those
estimates.
        The Company recognizes revenue pursuant to sales contracts or purchase
orders when products are shipped, at which point title and risk of loss
typically passes to the customer.  Sales are reported net of sales discounts,
returns and allowances.
        Foreign currency financial statements have been translated into U.S.
dollars in accordance with Financial Accounting Standards Board ("FASB")
Statement of Financial Accounting Standards ("SFAS") No. 52, "Foreign Currency
Translation".  SFAS No. 52, as applied to foreign entity financial statements
where the U.S. dollar is determined to be the functional currency, as in the
Company's case, requires that monetary assets and liabilities denominated in
the local or other foreign currency be remeasured to the U.S. dollars at the
exchange rate in affect on the report date.  Exchange rate gains and losses
from remeasurement are recognized currently in results.
        Inventories are stated at the lower of cost (principally average cost
method) or market.
        Long-lived assets, including goodwill, are periodically reviewed for
impairment.  Impairment losses are recognized if expected future undiscounted
cash flows of the related assets are less than their carrying values.
        The valuation of net periodic pension costs is calculated using
actuarial assumptions, including discount rates to reflect the time value of
money, rates of increase in future compensation levels, demographic assumptions
to determine the probability and timing of benefit payments, and the long-term
rate of return on plan assets.  At December 31, 2002, the assumptions for the
discount rate and long-term rate of return on plan assets used to calculate
<PAGE> 9 of 60

the Company's pension expense were 6.75% and 9.0%, respectively.  The selection
of assumptions is based on historical trends and known economic and market
conditions at the time of valuation and can have a significant impact on
pension expense. For example, a decrease of 1% to the discount rate or to the
long-term rate of return on plan assets, would impact pension expense by
approximately $114,000 or $132,000, respectively.  The recognition of pension
assets or liabilities is subject to pension asset performance. At December 31,
2002, the Company increased its pension obligation by $5.3 million, with a
corresponding increase (after provision for deferred tax benefit) in
accumulated other comprehensive net losses. This increase represented a minimum
pension liability adjustment that was required to recognize a liability equal
to the excess of accumulated benefit obligations over the market value of the
pension assets due to continued decline in market performance.  The Company's
policy is to make pension contributions for at least the minimum annual amount
required by law, which for calendar 2003 will be $764,000.
        The valuation of net periodic postretirement benefit cost is likewise
calculated using actuarial assumptions, including discount rates to reflect
the time value of money, rates of increase in future compensation levels,
demographic assumptions to determine the probability and timing of benefit
payments, and the trend in the rate of increase of future health care costs. At
December 31, 2002, the discount rate assumption used was 6.75% and the
assumption of health care cost trend was 12.5% grading down to 5% by 2008.
These assumptions can have a significant impact on the expense recorded. To
illustrate, a decrease of 1% to the discount rate or an increase of 1% to the
assumed health care cost trend for all years would increase postretirement
expense by approximately $174,000 or $176,000, respectively.  The Company does
not fund these benefits, but rather pays these claims, whether as part of its
annual insurance program or as direct reimbursements, as they arise. The total
benefits paid in 2002 were approximately $170,000.

Results of Operations

Year Ended December 31, 2002 Versus Year Ended December 31, 2001

        The Company's net sales for the year ended December 31, 2002 increased
13.7% to $307.6 million from $270.6 million in the comparable 2001 period.  Net
sales of anode grade CPC increased 30.1% to $253.1 million, net sales of
industrial grade CPC decreased 17.4% to $44.6 million and net sales of RPC
decreased 55.4% to $8.8 million.
        The increase in anode grade CPC net sales was primarily the result of
a 38.3% increase in sales volume to 1,654,424 tons partially offset by a 5.9%
decrease in average per ton selling prices.  The increase in sales volume was
attributable to shipments, beginning April 2002, from the newly purchased Baton
Rouge Plant, which accounted for 88.9% and 103.8% of the increase in sales
volume and net sales, respectively.
        The decrease in industrial grade CPC net sales was the result of a
12.4% decrease in sales volume to 308,715 tons coupled with a 5.7% decrease in
average selling prices.  Lower shipments to titanium dioxide customers and
reduced prices across most product lines were the main factors contributing to
the decline.
        The decrease in RPC net sales was primarily the result of a 31.2%
decrease in sales volume to 164,236 tons and a 35.2% decrease in average per
ton selling prices.  Because the Baton Rouge plant is a large consumer of the
RPC product, the quantity available for resale to third parties decreased in
the periods subsequent to the purchase of the plant.  Increased internal
consumption is expected to significantly reduce or eliminate future RPC trading
activites.
        The Company's gross profit for the year, at $54.6 million, was
virtually unchanged from the amount achieved in 2001.  The 13.7% increase in
sales discussed above was outpaced by a 17.1% increase in cost of goods sold.
The increase in cost of goods sold was the result of the higher sales volume
and higher average per ton costs, due mainly to continued tight anode grade RPC
supply.  This cost increase was mitigated slightly by a one-time raw material
price adjustment related to the re-establishment on a dollar basis of an
Argentine contract automatically converted to Peso-based pricing when that
currency was devalued at the end of 2001.
PAGE> 10 of 60

         Operating income increased 19.3% to $42.8 million from $35.9 million
in 2001.  The increase in operating income was due to a 36.9% decrease in
selling, general and administrative expenses and the slight increase in gross
profit discussed above.  The decrease in selling, general and administrative
expenses was primarily the result of the elimination of goodwill amortization
expense (in accordance with Financial Accounting Standards Board ("FASB")
Statement of Financial Accounting Standards ("SFAS") No. 142, "Goodwill and
Other Intangible Assets") and lower commission, travel and employee
compensation expenses partially offset by higher insurance costs.  Goodwill
amortization expense totaled $4.5 million in 2001.
        Income before income taxes and extraordinary item increased 553.9% to
$11.9 million from $1.8 million in 2001.  The increase was due to the
improvement in operating income discussed above and lower other expense.  The
decrease in other expense was attributable mainly to the absence of a $5.0
million charge related to the settlement of a finders fee claim dating back to
the acquisition of the Company by AIP included in other expense in 2001 and a
gain on the sale of certain lease rights to a storage shed (which had been sub-
let to the buyer since the 1980's) offset in part by increased interest
expense, the imposition of Argentine export duties and reduced Argentine export
tax refunds.  The increase in interest expense related to the additional debt
(at higher base rates) incurred in connection with the acquisition of the Baton
Rouge Plant.
        The Company's effective tax rate increased to 60.6% in 2002 from 55.5%
in 2001 mainly as a result of the tax effect of foreign currency gains in the
tax provision for foreign operations.
        In addition, 2001 included the recognition of an extraordinary gain on
the repurchase of debt of approximately $3,717,000 (net of income tax expense
of $2,073,000) for which there was no comparable item in 2002.
        As a result of the factors discussed above, net income for the year
ended December 31, 2002 increased 3.5% to $4.7 million from $4.5 million in
2001.
        Adjusted EBITDA for the year increased by 6.1% to $63.7 million from
$60.0 million in 2001 due to the increase in operating income discussed above
offset by a decrease to the add-back adjustment for depreciation/amortization
of $3.1 million (mainly due to the elimination of goodwill amortization as
previously noted).

Year Ended December 31, 2001 Versus Year Ended December 31, 2000

        The Company's net sales for the year ended December 31, 2001 increased
2.6% to $270.6 million from $263.6 million in the comparable 2000 period.  Net
sales of anode grade CPC increased 0.2% to $194.5 million, net sales of
industrial grade CPC decreased 2.2% to $54.0 million and net sales of RPC
increased 67.8% to $19.8 million.
        The increase in anode grade CPC net sales was primarily the result of
a 4.8% increase in average per ton selling prices almost completely offset by a
4.4% decrease in sales volume to 1,196,685 tons.  The increase in selling
prices was attributable to market recognition of increased CPC supply costs
discussed below.  The decrease in sales volume was primarily a function of
period-to-period scheduling fluctuations.
        The decrease in industrial grade CPC net sales was the result of an
8.5% decrease in sales volume to 352,424 tons partially offset by a 6.9%
increase in average selling prices.  Volume declines in chemical and recarb
accounts out-paced greater shipments to titanium dioxide customers and higher
prices across most product lines.
        The increase in RPC net sales was primarily the result of a 89.4%
increase in the average per ton selling price offset partially by an 11.4%
decrease in sales volume to 238,674 tons.  The shipment of higher-priced anode
grade RPC, despite lower total volume levels, was the primary reason for the
change.
        The Company's gross profit for the year decreased by 10.3% to $54.6
million from $60.9 million in the prior year.  The decrease in gross profit
was due to higher cost of goods sold that was only partially offset by the
increase in sales discussed above.  The increase in cost of goods sold was due
mainly to higher average per ton raw material costs which were only partially
offset by the decline in volume.  Tight anode grade RPC supply, particularly in
the United States Gulf Coast, was the major factor impacting raw material
costs.
<PAGE> 11 of 60

        Operating income decreased 12.5% to $35.9 million from $41.0 million in
2000.  The decrease in operating income was due to the decrease in gross profit
discussed above offset in part by a 5.8% decrease in selling, general and
administrative expenses.  The decrease in selling, general and administrative
expenses was primarily the result of lower sales commissions, management fees
and travel and entertainment expenses.
        Income before income taxes and extraordinary item decreased 79.1% to
$1.8 million from $8.7 million in 2000.  The decrease was attributable to the
decline in operating income discussed above and a $5.0 million charge related
to the settlement of a finders fee claim dating back to the acquisition of the
Company by AIP included in other expenses offset in part by a $2.7 million
decrease in net interest expense.  The effects of lower general interest rates
and continued debt reduction, which more than offset the additional interest
expense incurred in connection with the 10 1/4% Senior Subordinated Notes (the
"Notes") payment-in-kind election, were the most significant factors
contributing to the lower net interest expense.
        The Company's effective tax rate of 55.5% in 2001 remained essentially
unchanged from 2000.
        An extraordinary gain on the repurchase of debt of approximately
$3,717,000 (net of income tax expense of $2,073,000) was recognized during 2001
as compared to approximately $3,804,000 (net of income tax expense of
$2,048,000) in 2000.
        As a result of the factors discussed above, net income for the year
ended December 31, 2001 decreased 41.3% to $4.5 million from $7.7 million in
2000.
        Adjusted EBITDA for the year decreased by 8.1% to $60.0 million from
$65.3 million in 2000 due to the decrease in operating income discussed above
as add-back adjustments for depreciation/amortization and AIP management fee
expenses remained basically unchanged.

Liquidity and Capital Resources

        The Company's liquidity requirements are primarily for debt service,
capital expenditures and general working capital needs.  The timing of
inventory receipts and product shipments, all of which transactions are
entirely U.S. dollar denominated, can have a substantial impact on the
Company's working capital requirements.  Capital investments generally relate
to facility maintenance and projects to improve plant throughput and product
quality.
        For purposes of evaluating its cash flow, the Company uses a measure,
which it refers to as adjusted net income to classify the income component of
cash flow from operating activities.  Adjusted net income represents net income
before depreciation, amortization, deferred taxes and other non-cash items,
including acrretions of long-term debt, reflected as reconciling adjustments
in the statement of cash flows.
        Net cash provided by operating activities was $47.2 million, $21.2
million and $31.8 million in 2002, 2001 and 2000, respectively.  The $26.0
million increase in 2002 was due mainly to a decrease in working capital
requirements of $16.3 million attributable primarily to lower levels of
restricted cash and inventories and higher taxes payable offset partially by an
increase in accounts receivable and the $10.9 million improvement in adjusted
net income.  The $10.6 million decrease in 2001 was due mainly to an increase
in working capital requirements of $17.2 million, of which an increase in
inventory of $10.3 million, in response to anticipated continued tightness of
anode grade RPC supply in the U.S. Gulf Coast, was the most significant
component, offset by the $7.7 million increase in adjusted net income.
        Capital expenditures were $5.5 million, $4.2 million and $4.3 million
in 2002, 2001 and 2000, respectively.  The increase in 2002 is primarily
attributable to capital spending at the Baton Rouge Plant in the period
subsequent to the acquisition of the facility.
        Investing activities for 2002 also includes $11.7 million (excluding
notes payable in an aggregate principal amount of $20.0 million issued by the
Company) paid in connection with the purchase of the Baton Rouge Plant.
        Financing activities for 2002 reflect a net increase in indebtedness
for borrowed money of $24.7 million (after taking into account $20.0 million of
notes payable shown as a non-cash supplemental item and $25.2 million of
<PAGE> 12 of 60

accretion on the Notes and the 13 1/8% Senior Discount Debentures (the
"Debentures") reflected as a non-cash reconciling adjustment to net income on
the statement of cash flows).  This $24.7 million net increase was made up of a
$61.0 million increase to debt obligations, of which approximately $46.6
million was incurred in connection with the acquisition of the Baton Rouge
Plant, offset by $36.4 million of debt repayments, including $5.0 million of
voluntary prepayments.
        Financing activities in 2001 reflect a net reduction in indebtedness
for borrowed money of $0.5 million (after taking into account $15.6 million of
accretion on the Notes and the Debentures reflected as a non-cash reconciling
adjustment to net income on the statement of cash flows).  This $0.5 million
net reduction was comprised of $23.9 million of debt repayments, including $4.0
million of voluntary prepayments, offset by a $23.4 million increase to debt
obligations, including $7.8 million of short-term working capital borrowings
in Argentina.
        Financing activities in 2000 reflect a net reduction in indebtedness
for borrowed money of $19.1 million (after taking into account $4.3 million of
accretion on the Debentures reflected as a non-cash reconciling adjustment to
net income on the statement of cash flows).  This $19.1 million net reduction
was comprised of $23.5 million of debt repayments, including $11.1 million of
voluntary prepayments, offset by a $4.4 million increase to debt obligations,
including additional borrowings of $0.1 million.
        The Notes were issued by GLC in May 1998 to finance the acquisition of
the Company by AIP.  The Notes are unsecured general obligations of the Company
and, although not currently guaranteed, require essentially all future domestic
subsidiaries of the Company, if any, to be guarantors of the debt.  Interest on
the Notes is payable semiannually each year on May 15 and November 15.  The
Notes will mature on May 15, 2008 and are subject to early redemption as set
forth under the terms of the indenture.  For interest payments due through
May 15, 2003, the Company may, at its option, make up to four semiannual
payments through the issuance of additional notes in an amount equal to the
interest that would be payable if the rate per annum of the Notes were equal to
11 3/4%.  The Company has elected to exercise its pay-in-kind option with
respect to the four consecutive payments ending on May 15, 2003, the last two
of which were required as a condition to obtaining incremental term loan
financing under its existing credit agreement for the acquisition of the Baton
Rouge Plant as discussed below.
        The Company is a party to a credit agreement that includes term loans
comprised of three initial single tranche loans in an original amount of $50.0
million, $31.0 million and $30.0 million maturing on May 31, 2004, 2005 and
2006, respectively, and a Revolving Credit Facility in effect until May 31,
2003 which provides for borrowings of up to $25.0 million (with a $10 million
sub-limit for letters of credit).  On March 27, 2002, the Company secured
incremental term loans under each existing tranche in the amount of $9.0
million, $1.5 million and $1.5 million, respectively, in order to finance the
acquisition of the Baton Rouge Plant.  The incremental loans amortize and
mature in conformity with the existing term loan tranches to which they were
added.  At December 31, 2002, the amount payable under each such tranche was
$19.1 million, $23.3 million and $22.6 million, respectively.  In consideration
for the issuance of the incremental term loans credit facility interest rate
margins were increased between 1.25% to 1.50%.  The credit agreement is secured
by substantially all the assets of the Company and requires that the Company
satisfy certain financial ratios.  At March 26, 2003 there were no borrowings
under the Revolving Credit Facility and approximately $0.9 million of letters
of credit were outstanding.
        The Company is currently reviewing its options with respect to a
renewal or an extension of the Revolving Credit Facility.
        The Debentures, issued in May 1998 in conjunction with the acquisition
of the Company by AIP, are unsecured general obligations of the Company,
subordinated in right of payment to essentially all subsidiary liabilities.  No
cash interest will be payable on the Debentures until November 15, 2003 but
the accreted value will increase (representing amortization of original issue
discount) to approximately $56,600,000 through May 15, 2003.  The Debentures
require the Company to make cash interest payments semiannually commencing in
November 2003 of approximately $7,432,000 per year ($3,716,000 in 2003) and a
principal payment of approximately $56,600,000 at maturity in May 2009.  The
Debentures are subject to early redemption as set forth under the terms of the
<PAGE> 13 of 60

indenture.  The Company is a holding company and its ability to pay its debt
service obligations is dependent upon the receipts of dividends and other
distributions from its direct and indirect subsidiaries.  The Company does not
have, and may not in the future have, any assets other than the common stock of
GLC.  GLC, in turn is a party to the Notes indenture and the credit agreement
each of which imposes substantial restrictions on GLC's ability to pay
dividends to the Company.
        Information regarding the Company's contractual obligations at
December 31, 2002 is set forth in the table below:

                                  Less than                        More than
(In thousands)           Total     1 year    1-3 Years  3-5 Years   5 Years
                      ---------- ---------- ---------- ---------- ----------
Long-term debt        $  307,360 $   23,677 $   40,743 $   11,017 $  231,923
Capital Leases                25         23          2          -          -
Operating Leases          10,878      1,779      3,355      2,691      3,053
                      ---------- ---------- ---------- ---------- ----------
Total                 $  318,263 $   25,479 $   44,100 $   13,708 $  234,976
                      ========== ========== ========== ========== ==========

        The Company expects to meet its liquidity needs, including debt
service, through cash from operations, its revolving credit facility and other
financing sources provided in its debt agreements.  The Company's ability to
generate cash from operations is highly dependent on revenues and profits from
sales of anode grade CPC to the aluminum industry.  Changes in anode grade CPC
selling prices and sales volumes as well as changes in RPC costs can have a
material impact on operating cash flows.
        The Company or its affiliates may, from time to time, depending on
liquidity, and market and economic conditions, purchase in open-market
transactions its Debentures or the Notes issued by GLC.
        The Company is actively considering an offering of its securities (the
"New Securities").  Although the contemplated offering would require the
retirement of substantially all of Notes and the Debentures, given current
market conditions, the Company does not anticipate that the proceeds from such
an offering and related transactions would be sufficient to repay all of the
Notes and the Debentures.  The Company believes that in order to complete these
transactions it could offer cash and newly issued junior securities of the
Company or its affiliates (the "Junior Securities") in exchange for the Notes,
and Junior Securities in exchange for the Debentures.  It is anticipated that,
as part of the transactions, the Company's existing stockholders would recieve
Junior Securities in exchange for their equity interests in the Company, and
that the Junior Securities would be exchangeable for New Securities, subject to
certain conditions.  If the Company pursues these transactions, the New
Securities and the Junior Securities will not be registered under the
Securities Act of 1933 (the "Act"), and may not be offered or sold in the
United States absent registration under the Act or an applicable exemption from
the registration requirements of the Act.  The Company has discussed, and
intends to continue to discuss, possible alternatives with holders of the Notes
and the Debentures before further pursuing the transactions.

New Accounting Pronouncements

        In August 2001, the FASB issued SFAS No. 143, "Accounting for Asset
Retirement Obligations" effective January 2003.  SFAS No. 143 establishes
accounting standards for the recognition and measurement of a liability for
asset retirement obligations and associated asset retirement costs.  The
adoption of this Statement will not have a material impact on the Company's
financial statements.

        In August 2001, the FASB issued SFAS No. 144, "Accounting for the
Impairment or Disposal of Long-Lived Assets" which is effective for fiscal
years beginning after December 15, 2001.  SFAS No. 144 addresses financial
accounting and reporting for the impairment or disposal of long-lived assets.
This statement supersedes SFAS No. 121, "Accounting for the Impairment of
Long-Lived Assets and for Long-Lived Assets to Be Disposed Of," and the
<PAGE> 14 of 60

accounting and reporting provisions of Accounting Principals Board Opinion
No. 30, "Reporting the Results of Operations-Reporting the Effects of Disposal
of a Segment of a Business, and Extraordinary, Unusual and Infrequently
Occurring Events and Transactions," for the disposal of a business (as defined
in that Opinion).  This statement also amends Account Research Bulletin
No. 51, "Consolidated Financial Statements," to eliminate the exception to
consolidation for a subsidiary for which control is likely to be temporary.
The adoption of SFAS No. 144 did not have a material impact on the Company's
financial statements.

        In April 2002, the FASB issued SFAS No. 145, "Rescission of FASB
Statements No. 4, 44 and 64, Amendment of FASB Statement No. 13, and Technical
Corrections."  This Statement rescinds FASB Statement No. 4, "Reporting Gains
and Losses from Extinguishment of Debt," and an amendment of that Statement,
FASB Statement No. 64, "Extinguishment of Debt Made to Satisfy Sinking-Fund
Requirements."  This Statement also rescinds FASB Statement No. 44, "Accounting
for Intangible Assets of Motor Carriers."  This Statement also amends other
existing authoritative pronouncements to make various technical corrections,
clarify meanings or describe their applicability under changed conditions.
SFAS No. 145 is effective for fiscal years beginning after May 15, 2002.  The
Company will adopt the provisions of this Statement upon its effective date and
reclassify gains and losses on extinguishment of debt currently treated as
extraordinary items to other income or expense.

        In June 2002, the FASB issued SFAS No. 146, "Accounting for Costs
Associated with Exit or Disposal Activities."  SFAS No. 146 addresses financial
accounting and reporting for costs associated with exit or disposal activities
and supersedes Emerging Issues Task Force ("EITF") Issue No. 94-3, "Liability
Recognition for Certain Employee Termination Benefits and Other Costs to Exit
an Activity (including Certain Costs Incurred in a Restructuring)."  SFAS No.
146 requires that a liability for a cost associated with an exit or disposal
activity be recognized when the liability is incurred.  This statement also
established that fair value is the objective for initial measurement of the
liability.  The provisions of SFAS No. 146 are effective for exit or disposal
activities that are initiated after December 31, 2002.  The Company does not
believe that the adoption of this Statement will have a material impact on its
financial statements.

        In December 2002, the FASB issued SFAS No. 148, "Accounting for Stock-
Based Compensation-Transition and Disclosure."  SFAS No. 148 provides
alternative methods of transition for a voluntary change to the fair value
method of accounting for stock-based employee compensation.  In addition, SFAS
No. 148 amends the disclosure requirements of SFAS No. 123, "Accounting for
Stock-Based Compensation," to require disclosure in both interim and annual
financial statements about the method of accounting for stock-based employee
compensation and the effect of the method used on reported results.  SFAS No.
148 is effective for the year ended December 31, 2002.  The Company has elected
not to adopt the fair value method to account for stock-based compensation.
Accordingly, except for modification to certain disclosures, the adoption of
SFAF No. 148 did not have a material impact on the Company's financial
statements.

Item 7A.  Quantitative and Qualitative Disclosures About Market Risk

        The Company has significant amounts outstanding under its credit
agreement that bear interest at variable rates.  As a result, the Company's
interest expense is sensitive to changes in the general level of interest
rates.  To illustrate, a 10% increase or decrease in the rates in effect for
the year ended December 31, 2002 would have resulted in a corresponding
increase or decrease in interest expense for the period of $376,000.
        The Company may, from time to time, enter into interest rate swap
arrangements to manage its interest cost and mitigate its exposure to
fluctuating interest rates.  There were no such arrangements outstanding at
December 31, 2002 or during the year then ended.
<PAGE> 15 of 60

        As a result of the continued decline in the Argentine economy and the
decision of the government to default on its foreign debt, all foreign currency
trading was suspended on December 22, 2001.  The government subsequently
announced the devaluation of the Argentine peso, effective January 7, 2002,
thus bringing to an end that currency's ten year one-to-one peg to the U.S.
dollar.  Convertibility to the U.S. dollar is now determined on a free-floating
basis in the foreign exchange market.
        While some of its local costs are in Argentine pesos, the Company's
Argentine subsidiary, Copetro, essentially purchases all its RPC and sells all
of its CPC in U.S. dollars.  As a result, the Company has not experienced and
does not foresee any material impact on the performance of Copetro due to the
devaluation.  Although the Argentine authorities have not imposed any measures
that have had a significant adverse effect on the Company to date, there can
be no assurance that future government actions will not have a negative impact
the Company's operations in Argentina.
<PAGE> 16 of 60

Item 8.  Financial Statements and Supplementary Data

        The following consolidated financial statements of the Company and its
subsidiaries, together with the independent auditors' reports thereon, are
filed as part of this report:

Consolidated Financial Statements:

        Independent Auditors' Report

        Consolidated Balance Sheets as of December 31, 2001 and 2002

        Consolidated Statements of Operations for the years ended
        December 31, 2000, 2001 and 2002

        Consolidated Statements of Stockholders' Equity for the years ended
        December 31, 2000, 2001 and 2002

        Consolidated Statements of Cash Flows for the years ended
        December 31, 2000, 2001 and 2002

        Notes to the Consolidated Financial Statements

Item 9. Changes in and Disagreements with Accountants on Accounting and
        Financial Disclosure

        None.
<PAGE> 17 of 60
                                    PART III

Item 10.  Directors and Executive Officers of the Registrant

        The following table sets forth the name, age as of March 26, 2003 and
position of the persons serving as directors or executive officers of the
Company:

------------------------------------------------------------------------------
Name                Age   Position
------------------  ----  ----------------------------------------------------
James D. McKenzie    58   President and Chief Executive Officer, Director
A. Frank Baca        59   Senior Vice President, Operations and Administration
Robert C. Dickie     54   Vice President, Sales
Craig L. Beilharz    48   Vice President, Raw Materials
Adela I. Robles      46   Controller, Assistant Secretary and Chief Financial
                          Officer
Theodore C. Rogers   68   Non-Executive Chairman of the Board, Director
W. Richard Bingham   67   Director
Kim A. Marvin        41   Director
------------------------------------------------------------------------------

        Each of the Company's directors and executive officers are elected
annually and holds office until his or her successor is elected and qualified.
        Mr. McKenzie has served as President and Chief Executive Officer of the
Company since June 1995.  He served as Executive Vice President of the Company
and President of the Calcined Petroleum Coke business of the Company and its
predecessor company ("Old GLC") from 1989 to June 1995.  From 1971 to 1989, he
held a number of positions with Old GLC, including Vice President, General
Counsel.
        Mr. Baca has been Senior Vice President, Operations and Administration
of the Company since September 1995 and was Vice President, Operations from
1991 to August 1995.  Since joining Old GLC in 1967, he has held a number of
operating positions, including Plant Manager of the Port Arthur, Texas
calcining facility.
        Mr. Dickie has been Vice President, Sales of the Company since
September 1995 and was Director of Sales from 1992 to August 1995.  He held the
position of Plant Manager of Enid, Oklahoma calcining facility for Old GLC from
1989 to 1992.  Prior to joining Old GLC in 1989, he spent 15 years with Alumax,
holding various positions in aluminum smelting operations.
        Mr. Beilharz has been Vice President, Raw Materials of the Company
since April 2000 and was Vice President, Commercial Development of the Company
from February 1999 to March 2000.  From March 1997 until rejoining the Company
in 1999, he served as General Manager, Supply and Trading for Koch Carbon, Inc.
Prior to that, he was Manager, Sales and Raw Materials for the Company from
1992 to March 1997.  From 1973 to 1992, he held a number of positions in
quality control with Old GLC, including Chemist of the Enid, Oklahoma calcining
facility.
        Ms. Robles has been Chief Financial Officer since September 2002 and
has served as Controller of the Company and of the Calcined Petroleum Coke
business of the Company and Old GLC since 1990.  From 1981 to 1990, she held
numerous positions in accounting and finance with Old GLC.
        Mr. Rogers has served as the Non-Executive Chairman of the Board and
Director of the Company since May 1998.  He is the Chairman of the Board, a
Director and the Secretary of American Industrial Partners Corporation.  He
co-founded AIP Management Co. and has been a director and an officer of AIP
Management Co. since 1989.  Mr. Rogers is also a director of Bucyrus
International, Inc., Stanadyne Automotive Corp. and Consoltex Group, Inc.
        Mr. Bingham has served as Director of the Company since May 1998.  He
is a Director, the President, the Treasurer and the Assistant Secretary of
American Industrial Partners Corporation.  He co-founded AIP Management Co. and
has been a director and an officer of AIP Management Co. since 1989.  Mr.
Bingham is also a director of Bucyrus International, Inc., Stanadyne Automotive
Corp., MBA Polymers, Inc., Fundimak y Subsidiaries S.A. de C.V. (Sanluis) and
Williams Controls, Inc.
<PAGE> 18 of 60

        Mr. Marvin has served as Director of the Company since May 1998.  He
joined the San Francisco office of American Industrial Partners as a Principal
in 1997.  From 1994 to 1997, he was an associate in the Mergers & Acquisitions
Department of Goldman Sachs & Co.  Mr. Marvin is also a director of Bucyrus
International, Inc., Stanadyne Automotive Corp. and Consoltex Group, Inc.
        Directors do not receive compensation for their services as directors.

Item 11.  Executive Compensation

        The following table sets forth information concerning cash compensation
paid by the Company for the years ended December 31, 2002, 2001 and 2000 to the
Company's Chief Executive Officer and each of the four other most highly
compensated executive officers of the Company.

                                                    Long-term
                                                  Compensation
                                                     Awards
                              Annual Compensation   Securities
                              -------------------   Underlying    All Other
Name and Position        Year   Salary   Bonus(1)   Options(#)  Compensation(2)
------------------------ ---- --------- --------- ------------- ---------------
James D. McKenzie        2002 $ 379,168 $ 205,000         -        $ 5,500
  President and Chief    2001   375,000   206,250         -          5,250
  Executive Officer      2000   343,750   180,000         -          5,250

A. Frank Baca            2002   212,500    88,000         -          5,500
  Senior Vice President, 2001   210,000    84,375         -          5,250
  Operations and Admin.  2000   187,500    79,313         -          5,250

Robert C. Dickie         2002   192,340    82,002         -          4,748
  Vice President, Sales  2001   190,008    77,063         -          4,513
                         2000   171,252    71,438         -          4,512

Craig L. Beilharz        2002   172,180    76,005         -          5,130
  Vice President,        2001   170,016    69,752         -          5,100
  Raw Materials          2000   155,004    57,656         -          4,525

Adela I. Robles
  Controller, Assistant  2002   118,500    35,300         -          3,555
  Secretary and Chief    2001   114,000    30,150         -          3,420
  Financial Officer      2000   100,500    28,201         -          3,015
-------------------------------------------------------------------------------
(1)  Bonuses are reported in the year paid even though earned in the previous
     year.
(2)  Amounts shown in this column represent Company contributions under the
     401(k) savings plan.
-------------------------------------------------------------------------------

Profit-Sharing Plan

        The Company's practice has been to maintain a profit-sharing plan that
is established annually.  Under the present plan, each eligible employee
receives profit-sharing distributions determined as a percentage of base salary
based on the Company's achievement of profitability targets established each
year by the Board of Directors.

Savings Plans

        The Company currently sponsors two Savings Plans for employees: one for
salaried employees and the other for hourly employees covered by the collective
bargaining agreements at the Enid, Oklahoma and Baton Rouge, Louisiana plants.
Each of the Savings Plans is qualified under section 401(k) of the Internal
Revenue Code of 1986, as amended (the "Code") and provides that employees may
contribute up to $12,000 of base wages to an account in the employee's name.
The Company makes contributions to each such employee account of up to 50% of
the employee's contributions, subject to a cap of 3% of said employee's base
salary.
<PAGE> 19 of 60

Pension Plans

        The Company currently maintains three defined benefit retirement plans
for the benefit of its employees; one plan is for hourly employees covered by
the collective bargaining agreements at the Enid, Oklahoma and Baton Rouge,
Louisiana plants, one is for salaried employees (the "Salaried Plan") and one
is a non-qualified supplemental plan for the benefit of key executives (the
"SERP").  Each of the plans provides eligible employees with certain benefits
at retirement based upon the participant's years of service and, in the case of
the Salaried Plan and the SERP, such employee's average salary, which for
purposes of the foregoing is equal to the average of the highest salary earned
in three out of the previous ten years or the average of all years of service,
if less than three.
	The following table shows the estimated annual straight-life annuity
benefit payable under the Salaried Plan and the SERP to the executives who
participate in such plans, with the specified remuneration and specified years
of service upon retirement at age 65, after giving effect to adjustments for
Social Security benefits, assuming they continue to be actively employed by the
Company until age 65.  For those executives who are participants in the SERP,
the benefit payable upon retirement at age 65 is determined based upon their
full salary and years of service.  Participation in the SERP is extended to
executives at the sole discretion of the Board of Directors.  The benefit
payable upon retirement at age 65 to executive officers who do not participate
in the SERP is determined based upon each such executive's salary (subject to
the limitations imposed by Section 401(a)(17) of the Code, currently $200,000),
and years of service.
                                     Years of
                                      Service         Annual
        Name                         at Age 65        Benefit
        ------------------------     ---------       --------
        James D. McKenzie                38          $231,400
        A. Frank Baca                    41           130,669
        Robert C. Dickie                 24            74,898
        Craig L. Beilharz                44           114,003
        Adela I. Robles                  41            77,804
        -----------------------------------------------------
        The compensation of participants used to calculate
        the retirement benefit consists solely of annual base
        salary.
        -----------------------------------------------------

Stock Option Plan

        On December 13, 1999, the Board of Directors adopted the 1999
Management Stock Option Plan (the "Plan") in order to provide equity-based
incentives to certain officers and other key employees of the Company and its
subsidiaries.
        The Plan is administered by the President and Chief Executive Officer
of the Company ("CEO"), subject to the review and approval of the Compensation
Committee of the Board of Directors or, if one has not been established, the
Board of Directors or such other committee as the Board of Directors may
designate (any such committee or the Board of Directors, the "Committee").
The CEO has authority to recommend to the Committee the employees who shall
participate in the Plan and the number of stock options to be granted to each.
        The Plan provides for the grant of stock options to purchase up to an
aggregate of 4,050 shares of the common stock of the Company at a price of
$1,000 per share with 2,800 shares being initially granted to employees.  At
the time of the grant, 16.4% of the options became vested with the remaining
options targeted to vest on the last day of plan years 1999 through 2001 at a
rate of 27.9% of the aggregate number of shares of common stock subject to the
options per year provided that the Company attains a specified target of
Adjusted EBITDA, as defined, in each plan year.  In the event that the Adjusted
EBITDA goal is not attained in any plan year, the options scheduled to vest at
the end of that plan year will vest on a pro rata basis according to a schedule
set forth in the Plan, provided that if 90% or less of the Adjusted EBITDA goal
is achieved, then no portion of the options shall vest at the end of that plan
<PAGE> 20 of 60

year.  In the event that the Adjusted EBITDA goal is surpassed in any plan
year, the surplus shall be applied first to offset any Adjusted EBITDA deficit
from prior plan years, and second to accelerate vesting of up to one-quarter of
the options scheduled to vest in 2001 in accordance with a surplus vesting
schedule set forth in the Plan.  In addition, the Plan was amended effective
December 11, 2002 to provide for the immediate accelerated vesting of an
additional 618 options.  Notwithstanding the foregoing, all options granted
under the Plan shall vest automatically on April 21, 2007, regardless of the
performance criteria.
        Granted options may be forfeited or repurchased by the Company as
provided under the term of the Plan in the event of the participating
employee's termination, and if not previously forfeited or exercised, expire
and terminate no later than ten years after the date of grant or, in the event
of the sale of the Company, upon consummation of such sale.
        The table below sets forth for the Company's most highly compensated
executive officers information regarding the grant of options under the Plan
during 1999.
                                                           Potential Realizable
                                                             Value at Assumed
              Number of   Percent of                          Annual Rates of
              Securities    Total     Exercise                 Stock Price
              Underlying   Options    or Base                Appreciation for
               Granted   Granted to   Price(2) Expiration  Ten Year Option Term
Name           Options   Employees(1) ($/share)   Date        5%        10%
------------- ---------- ----------- --------- ---------- ---------- ----------
J.D. McKenzie     1,200       42.9%  $1000.00   12/13/09  $ 754,674  $1,912,491
A.F. Baca           400       14.3%  $1000.00   12/13/09    251,558     637,497
R.C. Dickie         400       14.3%  $1000.00   12/13/09    251,558     637,497
C.L. Beilharz       400       14.3%  $1000.00   12/13/09    251,558     637,497
A.I. Robles         200        7.1%  $1000.00   12/31/09    125,779     318,748
-------------------------------------------------------------------------------
(1) A total of 2,800 options were granted to employees under the Plan in 1999.
(2) The exercise price of each option granted was equal to 100% of the fair
    value of the Company's common stock on the date of grant.  The fair value
    was established by the Company's Board of Directors as the price at which
    the Company will buy or sell its common stock.
-------------------------------------------------------------------------------

        No options were granted under the Plan during 2002.  The number of
shares of stock underlying options that vested to the benefit of the Company's
most highly compensated executive officers was 1,148, 439 and 573 in 1999, 2000
and 2002, respectively.
        The following table sets forth information related to the exercise of
stock options during 2002 and the year-end number and value of unexercised
stock options for the Company's most highly compensated executive officers.

                                   Number of Securities   Value of Unexercised
                                  Underlying Unexercised      In-the-Money
                                   Options at the End of  Options at the End of
               Shares               Calendar Year 2002    Calendar Year 2002(1)
              Acquired            ---------- ----------- ---------- -----------
                 on      Value     Exercis-  Unexercis-   Exercis-  Unexercis-
Name          Exercise  Realized     able       able        able       able
------------- -------- ---------- ---------- ----------- ---------- -----------
J.D. McKenzie       -  $       -      1,000         200  $       -  $       -
A.F. Baca           -          -        340          60          -          -
R.C. Dickie         -          -        340          60          -          -
C.L. Beilharz       -          -        310          90          -          -
A.I. Robles         -          -        170          30          -          -
-------------------------------------------------------------------------------
(1) Substantially all of the Company's common stock is held by AIP and there is
    no established public trading market therefor.  At December 31, 2002, the
    fair value of the common stock was determined to be $1,000 per share which
    is equivalent to the fair value on the date of grant.  The fair value was
    established by the Company's Board of Directors as the price at which the
    Company will buy or sell its common stock.
-------------------------------------------------------------------------------
<PAGE> 21 of 60

Item 12.  Security Ownership of Certain Beneficial Owners and Management and
          Related Stockholder Matters

        The following table sets forth information as of December 31, 2002
relating to the beneficial ownership of the common stock of the Company by the
directors and named executive officers of the Company, directors and officers
of the Company as a group and each owner of more than 5% of the common stock of
the Company.
                                                      Number of
Name                                                   Shares      Percent
--------------------------------------------------    ---------    -------
American Industrial Partners Capital Fund II, L.P.      65,000       98.6%
Theodore C. Rogers (1)                                  65,000       98.6%
W. Richard Bingham (1)                                  65,000       98.6%
All directors and officers as a group (8 persons)       65,570       99.4%
-------------------------------------------------------------------------------
(1) Messrs. Rogers and Bingham share investment and voting power with respect
    to the securities owned by AIP, which owns 98.6% of the outstanding shares
    of the Company, but each disclaims beneficial ownership of any shares of
    Company Common Stock.
-------------------------------------------------------------------------------

        The following table provies information as of December 31, 2002 related
to the Company's equity compensation plans.

                           Number of                             Number of
                          Securities                            Securities
                         to be Issued     Weighted-Average     Available for
                         Upon Exercise     Exercise Price     Future Issuance
                        of Outstanding     of Outstanding       Under Equity
Plan Category               Options            Options       Compensation Plans
---------------------  -----------------  -----------------  ------------------
Equity Compensation
 Plans Approved by
 Security Holders              -                  -                  -
---------------------  -----------------  -----------------  ------------------
Equity Compensation
 Plans Not Approved
 by Security Holders         2,330           $1,000.00             1,720
---------------------  -----------------  -----------------  ------------------
  Total                      2,330           $1,000.00             1,720
-------------------------------------------------------------------------------
The material features of the plan under which equity securities are authorized
for issuance that was adopted without the approval of security holders are
outlined above.
-------------------------------------------------------------------------------

Item 13.  Certain Relationships and Related Transactions

Financial and Management Services

        AIP provides substantial on-going financial and management services to
the Company utilizing the extensive operating and financial experience of AIP's
principals.  AIP receives an annual fee of $1.9 million for providing general
management, financial and other corporate advisory services to the Company,
payable semiannually 45 days after the scheduled interest payment date of the
Notes (and the Debentures when these begin paying cash interest in November
2003), and is reimbursed for out-of-pocket expenses incurred on behalf of the
Company.  The fees are paid to AIP pursuant to a management services agreement
among AIP and the Company and are subordinated in right of payment to the Notes
(and the Debentures when these begin paying cash interest in November 2003).
<PAGE> 22 of 60

Item 14.  Controls and Procedures

        Within the 90 days prior to the date of this report, the Company
carried out an evaluation, under the supervision and with the participation of
the Company's management, including the Company's Chief Executive Officer and
Chief Financial Officer, of the effectiveness of the design and operation of
the Company's disclosure controls and procedures pursuant to Exchange Act Rule
13a-14. Based upon that evaluation, the Chief Executive Officer and Chief
Financial Officer concluded that the Company's disclosure controls and
procedures are effective. There were no significant changes in the Company's
internal controls or in other factors that could significantly affect these
controls subsequent to the date of their evaluation.
<PAGE> 23 of 60
                                    PART IV

Item 15.  Exhibits, Financial Statement Schedules and Reports on Form 8-K

(a)(1) List of Financial Statements:

Index to Financial Statements.............................................F-1

Independent Auditors' Report..............................................F-2

Consolidated Balance Sheets -
December 31, 2001 and 2002................................................F-3

Consolidated Statements of Operations -
For the years ended December 31, 2000, 2001 and 2002......................F-5

Consolidated Statements of Stockholders' Equity -
For the years ended December 31, 2000, 2001 and 2002......................F-6

Consolidated Statements of Cash Flows -
For the years ended December 31, 2000, 2001 and 2002......................F-7

Notes to the Consolidated Financial Statements............................F-8

(a)(2)  List of Financial Statement Schedules:

Schedule I-Great Lakes Acquisition Corp. parent company-only condensed
financial information as of and for the year ended December 31, 2002......S-1

        All schedules for which provision is made in the applicable accounting
regulations of the Commission are not required under the related instructions
or are not applicable and, therefore, have been omitted.
<PAGE> 24 of 60

(a)(3)  List of Exhibits:

    Exhibit

    Number  Description

    *3.1    Certificate of Incorporation of the Company.
    *3.2    By-Laws of the Company.
    *4.1    Indenture, dated as of May 22, 1998, between the Company and State
            Street Bank and Trust Company of California, N.A. (formerly First
            Trust National Association), as Trustee, relating to the 13 1/8%
            Series B Senior Discount Debentures due 2009 of the Company (the
            "New Debentures") and the 13 1/8% Senior Discount Debentures due
            2009 of the Company (the "Old Debentures").
    *4.2    Form of New Debenture (included in Exhibit 4.1).
    *4.3    Registration Rights Agreement, dated as of May 22, 1998, between
            the Company and Donaldson, Lufkin & Jenrette Securities Corporation.
    *10.1   Credit Agreement among the Company, GLC, various banks, Bank of
            America NT&SA as co-agent, DLJ Capital Funding, Inc. as
            Documentation Agent and Bankers Trust Company, as Syndication Agent
            and as Administrative Agent dated as of May 22, 1998.
     10.2   Lease Agreement between GLC and Rice-Carden Corporation (as
            successor to Kansas City Southern Industries, Inc.), as amended
            (Incorporated herein by reference to Exhibit 10.3 to GLC's
            Registration Statement on Form S-1 (File No. 33-98522)).
     10.3a  Calcined Coke Supply Agreement between GLC and Aluminum Company of
            America.  (Replaces 10.3 filed previously) (Incorporated herein by
            reference to Exhibit 10 to the Company's 3/31/02 Quarterly Report
            on Form 10-Q (File No. 333-59541)).
     10.4a  Green Anode Coke Sales Agreement between GLC and Conoco Inc.
            (Replaces 10.4 filed previously) (Incorporated herein by reference
            to Exhibit 10 to the Company's 12/31/01 Annual Report on Form 10-K
            (File No. 333-59541)).
     10.5   Petroleum Coke Sales Agreement between Copetro S.A. and YPF S.A.
            (Incorporated herein by reference to Exhibit 10.7 to GLC's
            Registration Statement on Form S-1 (File No. 33-98522)).
    *10.6   Amendment No. 1 to the Petroleum Coke Sales Agreement between
            Copetro S.A. and YPF S.A.
     10.7a  Coke Supply Agreement between GLC and Exxon Company, U.S.A.
            (Replaces 10.7 filed previously) (Incorporated herein by reference
            to Exhibit 10 to the Company's 12/31/99 Annual Report on Form 10-K
            (File No. 333-59541)).
     10.8   Asset Purchase Agreement between GLC and Reynolds Metals Company
            dated March 27, 2002 (Incorporated herein by reference to Exhibit
            10 to the Company's 3/31/02 Quarterly Report on Form 10-Q (File
            No. 333-59541)).
    *21.1   Subsidiaries of the Company.
     24.1   Power of Attorney (included in signature page).

*   Incorporated herein by reference to the Company's Registration Statement on
    Form S-4 (File No. 333-59541).

(b) Reports on Form 8-K
    None
<PAGE> 25 of 60
                          Great Lakes Acquisition Corp.
                                and Subsidiaries

                        Consolidated Financial Statements

                  Years ended December 31, 2000, 2001 and 2002




                                    Contents

Independent Auditors' Report.............................................F-2

Consolidated Balance Sheets -
December 31, 2001 and 2002...............................................F-3

Consolidated Statements of Operations -
For the years ended December 31, 2000, 2001 and 2002.....................F-5

Consolidated Statements of Stockholders' Equity -
For the years ended December 31, 2000, 2001 and 2002.....................F-6

Consolidated Statements of Cash Flows -
For the years ended December 31, 2000, 2001 and 2002.....................F-7

Notes to the Consolidated Financial Statements...........................F-8
<PAGE> F-1 / 26 of 60



                           Independent Auditors' Report


The Board of Directors
Great Lakes Acquisition Corp.

We have audited the accompanying consolidated balance sheets of Great Lakes
Acquisition Corp. and subsidiaries as of December 31, 2002 and 2001, and the
related consolidated statements of operations, stockholders' equity, and cash
flows for each of the three years in the periods then ended.  Our audit also
included the financial statement schedule listed in the Index as Item 15(a)(2)
for the three years ended December 31, 2002.  These consolidated financial
statements and the financial statement schedule are the responsibility of the
Company's management.  Our responsibility is to express an opinion on these
consolidated financial statements based on our audits.

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

In our opinion, the consolidated financial statements referred to above present
fairly, in all material respects, the consolidated financial position of Great
Lakes Acquisition Corp. and subsidiaries at December 31, 2002 and 2001, and the
consolidated results of its operations and its cash flows for each of the three
years then ended in conformity with accounting principles generally accepted in
the United States of America.  Also, in our opinion, such financial statement
schedule, when considered in relation to the basic consolidated financial
statements taken as a whole, presents fairly in all material respects the
information set forth therein.

As discussed in Note 1 and Note 7 to the consolidated financial statements, in
2002, the Company changed its method of accounting for goodwill amortization to
conform to Statement of Financial Accounting Standards No. 142, "Goodwill and
Other Intangible Assets."

DELOITTE & TOUCHE LLP
Parsippany, New Jersey
March 26, 2003
<PAGE> F-2 / 27 of 60
<TABLE>
                          Great Lakes Acquisition Corp.
                                and Subsidiaries

                           Consolidated Balance Sheets
<CAPTION>
                 (In thousands, except share and per share data)

                                                              December 31,
                                                            2001       2002
                                                         ---------- ----------
<S>                                                      <C>        <C>
ASSETS
Current Assets
 Cash and cash equivalents                               $  12,186  $  23,443
 Restricted cash                                            10,414         27
 Accounts receivable, net of allowance for doubtful
  accounts of $600 in 2001 and 2002                         27,452     46,555
 Inventories                                                46,614     55,233
 Prepaid expenses and other current assets                   3,767      6,164
                                                         ---------- ----------
  Total Current Assets                                     100,433    131,422

Property, plant and equipment-net                          177,467    184,262

Goodwill                                                   162,799    162,799
Capitalized financing costs, net of accumulated
 amortization of $8,968 and $11,750 in 2001 and 2002        11,138      9,575
Other assets                                                 1,971      2,933
                                                         ---------- ----------
  Total Assets                                           $ 453,808  $ 490,991
                                                         ========== ==========
<FN>
See accompanying notes.
</TABLE>
<PAGE> F-3 / 28 of 60
<TABLE>
                          Great Lakes Acquisition Corp.
                                and Subsidiaries

                          Consolidated Balance Sheets
<CAPTION>
                 (In thousands, except share and per share data)

                                                              December 31,
                                                            2001       2002
                                                         ---------- ----------
<S>                                                      <C>        <C>
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
 Accounts payable                                        $  12,818  $  26,803
 Accrued expenses                                           18,835      8,999
 Income taxes payable                                          809      5,703
 Current portion of long-term debt                          19,578     23,700
                                                         ---------- ----------
  Total Current Liabilities                                 52,040     65,205

Long-term debt, less current portion                       263,135    283,685
Other long-term liabilities                                  9,764     13,293
Deferred taxes                                              46,195     43,480


Stockholders' Equity
 Common stock, par value $0.01 per share;
  authorized, 92,000 shares, issued and
  outstanding, 65,950 shares in 2001 and 2002                    1          1
 Additional paid-in capital                                 65,949     65,949
 Retained earnings                                          18,112     22,798
 Accumulated other comprehensive loss
  Minimum pension liability adjustment, net of tax
  benefit $748 and $1,841 in 2001 and 2002                  (1,388)    (3,420)
                                                         ---------- ----------
  Total Stockholders' Equity                                82,674     85,328
                                                         ---------- ----------
  Total Liabilities and Stockholders' Equity             $ 453,808  $ 490,991
                                                         ========== ==========
<FN>
See accompanying notes.
</TABLE>
<PAGE> F-4 / 29 of 60
<TABLE>
                          Great Lakes Acquisition Corp.
                                and Subsidiaries

                      Consolidated Statements of Operations
<CAPTION>
                                                   Year Ended December 31,
                                                 2000       2001       2002
                                              ---------- ---------- ----------
                                                       (In thousands)
<S>                                           <C>        <C>        <C>
Net Sales                                     $ 263,601  $ 270,554  $ 307,567
Cost of Goods Sold                              202,718    215,966    252,952
                                              ---------- ---------- ----------
        Gross Profit                             60,883     54,588     54,615

Selling, general and administrative expenses     19,852     18,693     11,803
                                              ---------- ---------- ----------
        Operating Income                         41,031     35,895     42,812
                                              ---------- ---------- ----------
Other income (expense):
 Interest, net                                  (33,380)   (30,644)   (32,982)
 Other, net                                       1,048     (3,433)     2,057
                                              ---------- ---------- ----------
                                                (32,332)   (34,077)   (30,925)
        Income Before Income Taxes
            and Extraordinary Item                8,699      1,818     11,887

Income taxes                                      4,790      1,009      7,201
                                              ---------- ---------- ----------
Income before extraordinary item                  3,909        809      4,686

Extraordinary gain on early extinguishment
 of debt, net of tax expense of $2,048 and
 $2,073 for the years ended December 31,
 2000 and 2001                                    3,804      3,717          -
                                              ---------- ---------- ----------
        Net income                            $   7,713  $   4,526  $   4,686
                                              ========== ========== ==========
<FN>
See accompanying notes.
</TABLE>
<PAGE> F-5 / 30 of 60
<TABLE>
                          Great Lakes Acquisition Corp.
                                and Subsidiaries

                  Consolidated Statements of Stockholders' Equity
<CAPTION>
                                                          Accumulated
                                                             Other     Total
                                         Add'l              Compre-    Stock-
                              Common    Paid-in   Retained  hensive   holders'
                               Stock    Capital   Earnings   Loss      Equity
                             --------- --------- --------- --------- ---------
                                               (In thousands)
<S>                          <C>       <C>       <C>       <C>       <C>
Balance at December 31, 1999 $      1  $ 65,949  $  5,873  $      -  $ 71,823
Net income                          -         -     7,713         -     7,713
                             --------- --------- --------- --------- ---------
Balance at December 31, 2000        1    65,949    13,586         -    79,536
Net income                          -         -     4,526         -     4,526
Minimum pension liability
 adjustment                         -         -         -    (1,388)   (1,388)
                                                                     ---------
Comprehensive income                                                    3,138
                             --------- --------- --------- --------- ---------
Balance at December 31, 2001        1    65,949    18,112    (1,388)   82,674
Net income                          -         -     4,686         -     4,686
Minimum pension liability
 adjustment                         -         -         -    (2,032)   (2,032)
                                                                     ---------
Comprehensive income                                                    2,654
                             --------- --------- --------- --------- ---------
Balance at December 31, 2002 $      1  $ 65,949  $ 22,798  $ (3,420) $ 85,328
                             ========= ========= ========= ========= =========
<FN>
See accompanying notes.
</TABLE>
<PAGE> F-6 / 31 of 60
<TABLE>
                          Great Lakes Acquisition Corp.
                                and Subsidiaries

                      Consolidated Statements of Cash Flows
<CAPTION>
                                                   Year Ended December 31,
                                                 2000       2001       2002
                                              ---------- ---------- ----------
                                                       (In thousands)
<S>                                           <C>        <C>        <C>
Operating activities
Net income                                    $   7,713  $   4,526  $   4,686
 Adjustments to reconcile net income to net
 cash provided by operating activities:
  Depreciation and amortization                  24,235     24,401     21,631
  Accretions of long-term debt                    4,336     15,577     25,246
  Deferred taxes                                 (3,887)    (4,529)    (1,622)
  Gain on disposal of fixed asset                   (30)         -     (2,734)
  Extraordinary gain on extinguishment of debt   (3,804)    (3,717)         -
   Changes in operating assets and liabilities:
    Restricted cash                                   -    (10,414)    10,387
    Accounts receivable                            (860)     6,146    (19,103)
    Inventories                                    (217)   (10,477)     7,058
    Prepaid expenses and other current assets       659        807     (2,397)
    Accounts payable and accrued expenses         4,240      2,101        180
    Income taxes payable                         (1,861)    (3,435)     4,894
    Other, net                                    1,293        247       (987)
                                              ---------- ---------- ----------
Net cash provided by operating activities        31,817     21,233     47,239
                                              ---------- ---------- ----------
Investing activities
 Capital expenditures                            (4,297)    (4,183)    (5,484)
 Proceeds from disposal of fixed asset               42          -      3,001
 Acquisition of Baton Rouge plant                     -          -    (11,708)
                                               ---------- ---------- ----------
Net cash used by investing activities            (4,255)    (4,183)   (14,191)
                                              ---------- ---------- ----------
Financing Activities
 Repayment of long-term debt                    (23,560)   (23,921)   (36,356)
 Additions to long-term debt                        135      7,818     15,782
 Capitalized financing costs                          -          -     (1,217)
                                              ---------- ---------- ----------
Net cash (used) provided by financing
 activities                                     (23,425)   (16,103)   (21,791)
                                              ---------- ---------- ----------
Increase in cash and cash  equivalents            4,137        947     11,257
Cash and cash equivalents at beginning
 of period                                        7,102     11,239     12,186
                                              ---------- ---------- ----------
Cash and cash equivalents at end of period    $  11,239  $  12,186  $  23,443
                                              ========== ========== ==========

Supplemental disclosure of non-cash investing and financing activities:

In connection with the acquisition of the Baton Rouge plant, the Company
issued notes payable in an aggregate principal amount of $20,000,000 on
March 27, 2002 which are not reflected in investing or financing activities
for the year ended December 31, 2002.
<FN>
See accompanying notes.
</TABLE>
<PAGE> F-7 / 32 of 60
                          Great Lakes Acquisition Corp.
                                and Subsidiaries

                    Notes to Consolidated Financial Statements
                               December 31, 2002


1.  Significant Accounting Policies

Organization

Great Lakes Acquisition Corp. (the "Company") through its wholly-owned
operating subsidiary, Great Lakes Carbon Corporation ("GLC"), is the largest
producer of calcined petroleum coke ("CPC") supplying customers principally in
the aluminum industry.  It is 98.56% owned by American Industrial Capital Fund
II, L.P. ("AIP").

The consolidated financial statements include the accounts of the Company and
its subsidiaries.  Significant intercompany accounts have been eliminated in
consolidation.

Use of Estimates

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

Foreign Currency Translation

Foreign currency financial statements have been translated into U.S. dollars in
accordance with Financial Accounting Standards Board ("FASB") Statement of
Financial Accounting Standards ("SFAS") No. 52, "Foreign Currency Translation".
SFAS No. 52, as applied to foreign entity financial statements where the U.S.
dollar is determined to be the functional currency, as in the Company's case,
requires that monetary assets and liabilities denominated in the local or other
foreign currency be remeasured to the U.S. dollar at the exchange rate in
effect on the report date.  Exchange rate gains and losses from remeasurement
are recognized currently in results.

Cash Equivalents

Investments with maturities of less than 90 days when purchased are considered
the equivalent of cash.

Inventories

Inventories are stated at the lower of cost (principally average cost method)
or market.

Property, Plant and Equipment

Property, plant and equipment are stated on the basis of cost.  Enhancements
are capitalized and depreciated over the period benefited.  The provision for
depreciation is determined by the straight-line method over the estimated
useful lives of the related assets.

Impairment of Long-Lived Assets

Long-lived assets are periodically reviewed for impairment.  Impairment losses
are recognized if expected future undiscounted cash flows of the related assets
are less than their carrying values.
<PAGE> F-8 / 33 of 60
                          Great Lakes Acquisition Corp.
                                and Subsidiaries

              Notes to Consolidated Financial Statements (continued)


Goodwill

Through December 31, 2001, goodwill was amortized using the straight-line
method over a 40 year period.  On January 1, 2002, the Company implemented SFAS
No. 142, "Goodwill and Other Intangible Assets," which ceased the amortization
method of accounting for goodwill and requires an impairment-only approach.
Accordingly, goodwill is no longer amortized and is tested for impairment at
least once annually.

Accounting for Asset Retirement Obligations

In August 2001, the FASB issued SFAS No. 143, "Accounting for Asset Retirement
Obligations" effective January 2003.  SFAS No. 143 establishes accounting
standards for the recognition and measurement of a liability for asset
retirement obligations and associated asset retirement costs.  The adoption of
this Statement will not have a material impact on the Company's financial
statements.

Accounting for the Impairment or Disposal of Long-Lived Assets

In August 2001, the FASB issued SFAS No. 144, "Accounting for the Impairment or
Disposal of Long-Lived Assets" which is effective for fiscal years beginning
after December 15, 2001.  SFAS No. 144 addresses financial accounting and
reporting for the impairment or disposal of long-lived assets.  This statement
supersedes SFAS No. 121, "Accounting for the Impairment of Long-Lived Assets
and for Long-Lived Assets to Be Disposed Of," and the accounting and reporting
provisions of Accounting Principals Board Opinion No. 30, "Reporting the
Results of Operations-Reporting the Effects of Disposal of a Segment of a
Business, and Extraordinary, Unusual and Infrequently Occurring Events and
Transactions," for the disposal of a business (as defined in that Opinion).
This statement also amends Account Research Bulletin No. 51, "Consolidated
Financial Statements," to eliminate the exception to consolidation for a
subsidiary for which control is likely to be temporary.  The adoption of SFAS
No. 144 did not have a material impact on the Company's financial statements.

Rescission of FASB Statements No. 4, 44 and 64, Amendment of FASB Statement
 No. 13, and Technical Corrections

In April 2002, the FASB issued SFAS No. 145, "Rescission of FASB Statements
No. 4, 44 and 64, Amendment of FASB Statement No. 13, and Technical
Corrections."  This Statement rescinds FASB Statement No. 4, "Reporting Gains
and Losses from Extinguishment of Debt," and an amendment of that Statement,
FASB Statement No. 64, "Extinguishment of Debt Made to Satisfy Sinking-Fund
Requirements."  This Statement also rescinds FASB Statement No. 44, "Accounting
for Intangible Assets of Motor Carriers."  This Statement also amends other
existing authoritative pronouncements to make various technical corrections,
clarify meanings or describe their applicability under changed conditions.
SFAS No. 145 is effective for fiscal years beginning after May 15, 2002.  The
Company will adopt the provisions of this Statement upon its effective date and
reclassify gains and losses on extinguishment of debt currently treated as
extraordinary items to other income or expense.
<PAGE> F-9 / 34 of 60
                          Great Lakes Acquisition Corp.
                                and Subsidiaries

              Notes to Consolidated Financial Statements (continued)


Accounting for Costs Associated with Exit or Disposal Activities

In June 2002, the FASB issued SFAS No. 146, "Accounting for Costs Associated
with Exit or Disposal Activities."  SFAS No. 146 addresses financial accounting
and reporting for costs associated with exit or disposal activities and
supersedes Emerging Issues Task Force ("EITF") Issue No. 94-3, "Liability
Recognition for Certain Employee Termination Benefits and Other Costs to Exit
an Activity (including Certain Costs Incurred in a Restructuring)."  SFAS No.
146 requires that a liability for a cost associated with an exit or disposal
activity be recognized when the liability is incurred.  This statement also
established that fair value is the objective for initial measurement of the
liability.  The provisions of SFAS No. 146 are effective for exit or disposal
activities that are initiated after December 31, 2002.  The Company does not
believe that the adoption of this Statement will have a material impact on its
financial statements.

Revenue Recognition

The Company recognizes revenue pursuant to sales contracts or purchase orders
when products are shipped, at which point title and risk of loss typically
passes to the customer.  Sales are reported net of sales discounts, returns
and allowances.

Significant Customers

The Company had two customers which represented 24.1% and 15.6% of net sales
in 2000, 24.5% and 16.7% of net sales in 2001 and one customer that represented
29.2% of net sales in 2002.

Stock-Based Compensation

In December 2002, the FASB issued SFAS No. 148, "Accounting for Stock-Based
Compensation-Transition and Disclosure."  SFAS No. 148 provides alternative
methods of transition for a voluntary change to the fair value method of
accounting for stock-based employee compensation.  In addition, SFAS No. 148
amends the disclosure requirements of SFAS No. 123, "Accounting for Stock-Based
Compensation," to require disclosure in both interim and annual financial
statements about the method of accounting for stock-based employee compensation
and the effect of the method used on reported results.  SFAS No. 148 is
effective for the year ended December 31, 2002.  The Company has elected not
to adopt the fair value method to account for stock-based compensation and
instead will continue to account for stock-based compensation using the
intrinsic value method prescribed by Accounting Principals Board Opinion
No. 25, "Accounting for Stock Issued to Employees" ("APB 25").  Compensation
expense is recognized for stock options granted below the fair market value of
the Company's stock on the date of grant.

SFAS No. 123, as modified by SFAS No. 148, requires disclosure by the Company
of the pro forma effect on net income if it continues to account for stock
options under the provisions of APB 25.  The Company used the minimum value
method to develop the pro forma information set forth below which has been
determined as if the Company had accounted for its stock options under the fair
value method of SFAS No. 123.

                                                 2000       2001       2002
                                              ---------- ---------- ----------
                                                       (In thousands)
  Net earnings:
   As reported                                $   7,713  $   4,526  $   4,686
    Fair value method stock-based
     compensation expense                            67         16         70
                                              ---------- ---------- ----------
   Pro forma                                  $   7,646  $   4,510  $   4,616
                                              ========== ========== ==========
<PAGE> F-10 / 35 of 60
                          Great Lakes Acquisition Corp.
                                and Subsidiaries

              Notes to Consolidated Financial Statements (continued)


The exercise price of these stock options was equal to the fair value of the
underlying common stock on the date of grant, which was established by the
Company's Board of Directors as the price at which the Company will buy or sell
its common stock.  The grant date fair value for the stock options was
estimated at $177.40 per option and was determined using an option pricing
model with the following weighted average assumptions: risk-free interest rate
of 6.51%; dividend yield of 0.1%; volatility factor of the expected market
price of the Company's common stock of 0.0; and expected option life of 3
years.

Option valuation models were developed for use in estimating the fair value of
traded options, which have no vesting restrictions and are fully transferable.
In addition, option valuation models require the input of highly subjective
assumptions including the expected stock price volatility.  Because the
Company's employee stock options have characteristics significantly different
from those of traded options, and because changes in the subjective input
assumptions can materially affect the fair value estimate, in the opinion of
management, the existing models do not necessarily provide a reliable single
measure of the value of its employee stock options.

Income Taxes

The Company follows SFAS No. 109, "Accounting for Income Taxes."  Under the
asset and liability method of SFAS No. 109, deferred tax assets and liabilities
are recognized for the future tax consequences attributable to differences
between the financial statement carrying amounts of existing assets and
liabilities and their respective tax bases.

Reclassifications

Certain prior year amounts have been reclassified to conform to current year
presentation.

2.  Acquisition

On March 27, 2002, the Company purchased a calcining facility located in Baton
Rouge, LA (the "Baton Rouge Plant") from Alcoa, Inc. ("Alcoa") for $31.7
million, net of a purchase price adjustment.  The transaction was financed by
two $10 million promissory notes bearing interest at 5% per annum payable to
Alcoa in November 2002 and May 2003 and incremental term loan borrowings under
the Company's existing syndicated senior secured credit facility of $12 million.
The addition of the Baton Rouge Plant, which can produce up to 700,000 tons per
year of CPC, increased the Company's total operating capacity to 2.3 million
tons from 1.6 million tons.

Results for the Baton Rouge Plant were included in the statement of operations
commencing on April 1, 2002.  The purchase price, net of the working capital
adjustment, was allocated based on the fair values of the assets acquired and
liabilities assumed as follows:

                                                  (In thousands)
      Inventories                                 $      15,677
      Property, plant and equipment                      20,000
      Accounts payable                                   (3,024)
      Accrued expenses                                     (945)
                                                  --------------
                                                  $      31,708
                                                  ==============

No goodwill was established in connection with this acquisition since the fair
value of the assets acquired exceeded the purchase price.
<PAGE> F-11 / 36 of 60
                          Great Lakes Acquisition Corp.
                                and Subsidiaries

              Notes to Consolidated Financial Statements (continued)


The unaudited pro forma information set forth below, developed as though the
acquisition had been completed as of the beginning of each of the years shown,
reflects adjustments to interest expense (for borrowings required to finance
the acquisition and certain changes to the terms of existing debt
arrangements), depreciation and amortization expense (set to reflect the new
accounting base of the assets recorded) and income tax effect based upon the
Company's historical effective rates.

                                                              December 31,
                                                            2001       2002
                                                         ---------- ----------
							     (In thousands)
Net sales                                                $ 359,421  $ 333,314
Income before income taxes
 and extraordinary item                                      7,186     11,472
Net income                                                   7,121      4,519

The pro forma information, as presented here, is not indicative of the results
that would have been obtained had the transaction occurred on January 1, 2001
or 2002, nor should it be considered indicative of future results.  It gives
effect only to the adjustments noted above, and does not reflect management's
estimate of potential cost savings or other benefits arising from the
acquisition.

3.  Restricted Cash

Funds that are legally restricted as to withdrawal or usage are shown as
restricted cash and consisted of $10,414,000 and $27,000 at December 31, 2001
and 2002, respectively. The 2001 balance related to funds set aside under an
escrow agreement with AIP to settle a finders fee claim arising from the
acquisition of the Company in 1998.  On March 22, 2002, a payment in the amount
of $10,300,000 was made to settle the claim and the remainder was closed to
income.  In October 2002, an escrow for the latter sum was established in
connection with certain reclamation costs in connection with a waste water
settling pond located at a newly purchased Baton Rouge Plant as prescribed by
state law.

4.  Inventories

Inventories consist of the following:

                                                              December 31,
                                                            2001       2002
                                                         ---------- ----------
							     (In thousands)
  Raw materials                                          $  24,696  $  34,195
  Finished goods                                            14,307     13,965
  Supplies and spare parts                                   7,611      7,073
                                                         ---------- ----------
                                                         $  46,614  $  55,233
                                                         ========== ==========
<PAGE> F-12 / 37 of 60
                          Great Lakes Acquisition Corp.
                                and Subsidiaries

              Notes to Consolidated Financial Statements (continued)


5.  Property, Plant and Equipment

Property, plant and equipment consists of the following:


                                        Range of              December 31,
                                      Useful Lives          2001       2002
                                   ------------------    ---------- ----------
							     (In thousands)
  Land and improvements                3-15 Years        $   2,932  $   4,353
  Buildings                            3-40 Years           10,618     11,709
  Machinery, equipment and other       3-20 Years          220,867    244,031
  Construction in progress                                   1,442        983
                                                         ---------- ----------
                                                           235,859    261,076
  Accumulated depreciation                                 (58,392)   (76,814)
                                                         ---------- ----------
                                                         $ 177,467  $ 184,262
                                                         ========== ==========

Depreciation expense was $16,805,000, $17,070,000 and $18,422,000 for the years
ended December 31, 2000, 2001 and 2002, respectively.

6.  Accrued Expenses

Accrued expenses included a finders fee claim payable (arising from the
acquisition of the Company in 1998) of $10,414,000 at December 31,
2001 as discussed in Note 3 above.

7.  Goodwill

In accordance with SFAS No. 142, "Goodwill and Other Intangible Assets," the
Company completed the impairment test of the valuation of goodwill as of
December 31, 2002 and based upon the results, there was no impairment.  The
carrying value of goodwill was $162,799,000 at December 31, 2001 and 2002.

Net income results excluding goodwill that is no longer being amortized to
selling, general and administrative expense is as follows:

                                                 2000       2001       2002
                                              ---------- ---------- ----------
                                                       (In thousands)
Net income as reported                        $   7,713  $   4,526  $   4,686
Goodwill amortization                             4,474      4,474          -
                                              ---------- ---------- ----------
Pro forma net income                          $  12,187  $   9,000  $   4,686
                                              ========== ========== ==========

8.  Long-Term Debt

Long-term debt and capital lease obligations consist of the following:

                                                              December 31,
                                                            2001       2002
                                                         ---------- ----------
							     (In thousands)
10.25% Senior Subordinated Notes due May 15, 2008        $ 188,048  $ 210,769
13.125% Senior Discount Debentures due May 15, 2009         18,629     21,154
Term Loan Credit Facility bearing interest at the
  Company's option at LIBOR (1.4% at December 31,
  2002) plus a margin ranging from 2.25% to 3.00%
  or Prime (4.25% at December 31, 2002) plus a margin
  ranging from 1.25% to 2.00% (subject to an interest
  reduction discount ranging from 0% to 0.75% based
  on the achievement of certain leverage ratios) due
  in varying amounts quarterly through May, 2006            70,825     65,061
5% Alcoa Seller Note Payable due May 31, 2003                    -     10,000
Various pollution control and industrial revenue bonds
  bearing interest at rates from 6.75% to 7.125% due
  in varying amounts at various dates through 2002             355          -
Capital lease obligations bearing interest at rates
  ranging from 9.3% to 10% due in varying amounts at
  various dates through February 2004                          132         25
Other                                                        4,724        376
                                                         ---------- ----------
                                                           282,713    307,385
Current portion                                            (19,578)   (23,700)
                                                         ---------- ----------
                                                         $ 263,135  $ 283,685
                                                         ========== ==========
<PAGE> F-13 / 38 of 60
                          Great Lakes Acquisition Corp.
                                and Subsidiaries

              Notes to Consolidated Financial Statements (continued)


The Senior Subordinated Notes are unsecured general obligations of the Company.
At the option of the Company, the Senior Subordinated Notes may be redeemed,
in whole or in part, commencing May 15, 2003 at various prices ranging from
105% in 2003 to par in 2006 and beyond.  Up to May 15, 2003, the Company may,
at its option, make up to four semiannual interest payments through the
issuance of additional notes for an amount equal to the amount of interest that
would be payable if the interest rate were 11.75%.  The Company has elected to
exercise its pay-in-kind option with respect to the four consecutive payments
ending on May 15, 2003, the last two of which were required as a condition to
obtaining incremental term loan financing for the acquisition of the Baton
Rouge Plant.  The Senior Subordinated Notes indenture imposes, among other
things, limitations on certain payments, including dividends.

The Senior Discount Debentures are general unsecured obligations of the
Company, subordinated in right of payment to essentially all subsidiary
liabilities.  No cash interest will be payable on the Debentures until
November 15, 2003 but the accreted value will increase (representing
amortization of original issue discount) to approximately $56,600,000 through
May 15, 2003.  The Debentures require the Company to make cash interest
payments semiannually commencing in November 2003 of approximately $7,432,000
per year and a principal payment of approximately $56,600,000 in May 2009.  At
the Company's option, the Debentures may be redeemed, in whole or in part,
commencing May 15, 2003 at various prices ranging from 106.6% in 2003 to par in
2006 and beyond.  The Senior Discount Debentures indenture imposes limitations
on certain payments, including dividends.  The outstanding common stock of GLC
has been pledged as collateral for this obligation.

The Company or its affiliates may, from time to time, depending on liquidity,
and market and economic conditions, purchase in open-market transactions Senior
Discount Debentures or Senior Subordinated Notes.  At December 31, 2002,
approximately 61% of the outstanding Debentures had been purchased by GLC with
the intention of holding them to maturity.  The Company's obligation with
respect to the Debentures is shown net of the amount held by GLC.

The term loan credit facility is comprised of three single tranche term loans
in the amount of $19,099,000, $23,336,000 and $22,626,000 at December 31, 2002
maturing on May 31, 2004, 2005 and 2006, respectively.  On March 27, 2002, the
Company secured incremental term loans under each of its three existing tranche
loans in the amount of $9.0 million, $1.5 million and $1.5 million,
respectively, in order to finance the acquisition of the Baton Rouge Plant.
The incremental loans amortize and mature in conformity with the terms of the
tranches to which they were added.  In consideration for the issuance of the
incremental term loans, credit facility interest rate margins were increased
between 1.25% to 1.50%.  The facility also includes a revolving credit
agreement in effect until May 31, 2003, which provides for borrowings of up to
$25,000,000 (with a $10,000,000 sub-limit for letters of credit).  The facility
is secured by substantially all the assets of the Company and requires that the
Company, among other things, satisfy certain financial ratios.  At December 31,
2002, there were no borrowings under the revolving credit portion of the
facility and outstanding letters of credit were $874,000.

The pollution control and industrial development revenue bonds were issued by
various state and local governmental authorities.  Under agreements with these
authorities, the Company has either leased (with nominal value purchase
options) or purchased on an installment basis the facilities constructed with
the funds financed.
<PAGE> F-14 / 39 of 60
                          Great Lakes Acquisition Corp.
                                and Subsidiaries

              Notes to Consolidated Financial Statements (continued)


Certain covenants present in the Company's credit agreements make reference to
a measure denominated as Adjusted EBITDA.  Adjusted EBITDA is defined as
operating income before depreciation, amortization and management fees and
related expenses.  Adjusted EBITDA is not a measure of performance defined by
accounting principles generally accepted in the United States of America.

The fair market value of the Company's long-term debt obligations approximated
$189,000,000 and $228,000,000 at December 31, 2001 and 2002, respectively.

Maturities of long-term debt, for the succeeding five years and thereafter are
as follows:

                                               Long-Term   Capital
                                                 Debt      Leases      Total
                                              ---------- ---------- ----------
                                                       (In thousands)
  2003                                        $  23,677  $      23  $  23,700
  2004                                           18,123          2     18,125
  2005                                           22,620          -     22,620
  2006                                           11,017          -     11,017
  2007                                                -          -          -
  Thereafter                                    231,923          -    231,923
                                              ---------- ---------- ----------
                                              $ 307,360  $      25  $ 307,385
                                              ========== ========== ==========

Interest paid amounted to $27,167,000, $14,783,000 and $4,541,000 for the years
ended December 31, 2000, 2001 and 2002, respectively.

The Company has significant amounts outstanding under its credit agreement that
bear interest at variable rates.  As a result, the Company's interest expense
is sensitive to changes in the general level of interest rates.  To illustrate,
a 10% increase or decrease in the rates in effect for the year ended
December 31, 2002 would have resulted in a corresponding increase or decrease
in interest expense for the period of $376,000.

9.  Leases

The Company leases various production equipment under capital leases, some of
which contain renewal options and/or options to purchase.  Amortization under
capital leases is included in depreciation expense.

Future minimum payments as of December 31, 2002, by year and in the aggregate,
under capital leases and non-cancelable operating leases with initial or
remaining terms of one year or more consist of the following:

                                                           Capital  Operating
                                                           Leases     Leases
                                                         ---------- ----------
                                                             (In thousands)
  2003                                                   $      25  $   1,779
  2004                                                           2      1,706
  2005                                                           -      1,649
  2006                                                           -      1,398
  2007                                                           -      1,293
  Thereafter                                                     -      3,053
                                                         ---------- ----------
  Total minimum lease payments                                  27  $  10,878
  Amounts representing interest                                ( 2) ==========
                                                         ----------
  Present value of net minimum lease payments            $      25
                                                         ==========
<PAGE> F-15 / 40 of 60
                          Great Lakes Acquisition Corp.
                                and Subsidiaries

              Notes to Consolidated Financial Statements (continued)


Rental expense for all operating leases was $2,006,000, $2,012,000 and
$2,037,000 for the years ended December 31, 2000, 2001 and 2002, respectively.

10.  Savings and Profit-Sharing Plans

The Company sponsors savings plans, which are qualified under section 401(k) of
the Internal Revenue Code and provide that participating employees may make
contributions of up to 15% of base wages, subject to statutory limitations.
The Company makes contributions for the benefit to each such employee equal to
50% of the employee's contributions, up to a maximum of 3% of the employee's
salary.  Matching contributions under the plans were $192,000, $198,000 and
$247,000 for the years ended December 31, 2000, 2001 and 2002, respectively.

The Company's practice has been to maintain a profit-sharing plan whereby
eligible employees receive profit-sharing distributions determined as a
percentage of base salary based on the Company's achievement of profitability
targets established annually.  Profit-sharing expense was $1,891,000,
$1,356,000 and $1,389,000 for the years ended December 31, 2000, 2001 and 2002,
respectively.

11.  Pension Plans

The Company has various defined benefit retirement plans, which cover
substantially all employees.  Benefits are based upon the number of years of
service and the employee's compensation under varying formulas.  The funding
policy is generally to contribute at least the minimum amount that is
acceptable under federal law for tax purposes.  Contributions are intended to
provide not only for benefits attributed to service to date, but also for those
expected to be earned in the future.  As of December 31, 2002, the assets of
the plan were invested principally in listed stocks, bonds, money market
certificates and cash.

The Company also maintains a supplemental defined benefit retirement plan for
key executives.  This plan is not presently funded nor qualified under Section
401(a) of the Internal Revenue Code.

The components of net pension expense for the plans were as follows:

                                                 2000       2001       2002
                                              ---------- ---------- ----------
                                                       (In thousands)
  Service cost                                $     391  $     425  $     537
  Interest cost                                     917      1,061      1,140
  Expected return on assets                      (1,057)    (1,140)    (1,196)
  Amortization of prior service cost                 17         40         40
  Recognized net actuarial loss                       3         77        123
                                              ---------- ---------- ----------
  Net periodic pension cost                   $     271  $     463  $     644
                                              ========== ========== ==========
<PAGE> F-16 / 41 of 60
                          Great Lakes Acquisition Corp.
                                and Subsidiaries

              Notes to Consolidated Financial Statements (continued)


The following tables set forth the change in benefit obligation and plan
assets, the funded status and amounts recognized in the Company's balance
sheets for the plans:

                                                            2001       2002
                                                         ---------- ----------
                                                             (In thousands)
  Change in benefit obligation:
   Benefit obligation at beginning of period             $  13,412  $  15,820
   Service cost                                                425        537
   Interest cost                                             1,061      1,140
   Amendments                                                  229          -
   Actuarial loss                                            1,112        876
   Benefits paid                                              (419)      (465)
                                                         ---------- ----------
   Benefit obligation at end of period                   $  15,820  $  17,908
                                                         ========== ==========
  Change in plan assets:
   Fair value of plan assets at beginning of period      $  12,612  $  11,630
   Actual return on plan assets                               (622)      (894)
   Company contribution                                        142        751
   Expenses                                                    (83)       127
   Benefits paid                                              (419)      (465)
                                                         ---------- ----------
   Fair value of plan assets at end of period            $  11,630  $  11,149
                                                         ========== ==========

   Funded status                                         $  (4,190) $  (6,759)
   Unrecognized net actuarial loss                           4,125      6,840
   Unrecognized prior service cost                             273        234
                                                         ---------- ----------
  Net pension asset recognized in the balance sheets     $     208  $     315
                                                         ========== ==========
  Amount recognized in balance sheet consists of:
   Prepaid benefit cost (accrued benefit liability)      $  (2,202)    (5,129)
   Intangible asset                                            274        183
   Accumulated other comprehensive loss                      2,136      5,261
                                                         ---------- ----------
  Net pension asset recognized in the balance sheets     $     208  $     315
                                                         ========== ==========

The expected long-term rate of return on plan assets was 9% for the periods
presented.  The weighted average discount rate and weighted average rate of
increase in future compensation levels used were 7.5% and 4.5% for 2000, 7.25%
and 4.25% for 2001 and 6.75% and 3.75% for 2002, respectively.

12.  Postretirement Obligations

The Company provides certain health care and life insurance benefits to all
full time employees who satisfy certain eligibility requirements and reach
retirement age while employed by the Company.  The Company does not fund these
benefits and accrues for the related cost generally over the employees' service
period.
<PAGE> F-17 / 42 of 60
                          Great Lakes Acquisition Corp.
                                and Subsidiaries

              Notes to Consolidated Financial Statements (continued)


The components of net periodic postretirement benefit cost ("NPPBC") were as
follows:

                                                 2000       2001       2002
                                              ---------- ---------- ----------
                                                       (In thousands)
  Service cost                                $     270        336  $     401
  Interest cost                                     319        385        404
                                              ---------- ---------- ----------
  NPPBC                                       $     589  $     721  $     805
                                              ========== ========== ==========

The following tables set forth the change in benefit obligation and plan
assets, the funded status and amounts recognized in the Company's balance
sheets:

                                                            2001       2002
                                                         ---------- ----------
                                                             (In thousands)
  Change in benefit obligation:
   Benefit obligation at beginning of period             $   4,794  $   5,954
   Service cost                                                336        401
   Interest cost                                               385        404
   Actuarial loss                                              603      1,258
   Benefits paid                                              (164)      (170)
                                                         ---------- ----------
  Benefit obligation at end of period                    $   5,954  $   7,847
                                                         ========== ==========
  Change in plan assets:
   Fair value of plan assets at beginning of period      $       -  $       -
   Company contribution                                        164        170
   Benefits paid                                              (164)      (170)
                                                         ---------- ----------
  Fair value of plan assets at end of period             $       -  $       -
                                                         ========== ==========

  Funded status                                          $  (5,954) $  (7,847)
  Unrecognized net actuarial loss                              668      1,927
                                                         ---------- ----------
  Postretirement liability recognized
   in the balance sheets                                 $  (5,286) $  (5,920)
                                                         ========== ==========

The health care cost trend used in determining the accumulated postretirement
benefit obligation ("APBO") was 12.5% grading down to 5.0% by 2008. That
assumption may have a significant effect on the amounts reported.  To
illustrate, increasing the assumed trend by 1% for all years would increase the
aggregate service and interest component of NPPBC for the year ended December
31, 2002 by $138,000 (or 17.2%) and the APBO for the year then ended by
$1,175,000 (or 15.0%).  Conversely, decreasing the assumed trend by 1% for all
years would decrease the aggregate service and interest component of NPPBC for
the year ended December 31, 2002 by $125,000 (or 15.5%) and the APBO for the
year then ended by $972,000 (or 12.4%).

Assumptions used to develop NPPBC and the actuarial present value APBO included
the weighted average rate of increase in future compensation levels and the
weighted average discount rate of 5% and 7.5% for 2000, 5% and 7.25% for 2001
and 5% and 6.75% for 2002, respectively.
<PAGE> F-18 / 43 of 60
                          Great Lakes Acquisition Corp.
                                and Subsidiaries

              Notes to Consolidated Financial Statements (continued)


13.  Stockholders' Equity

In December 1999, certain members of management of the Company purchased 620
shares of the Company's common stock for $620,000, which increased the number
of issued and outstanding common shares to 65,950.

On December 13,1999, the Board of Directors adopted the 1999 Management Stock
Option Plan (the "1999 Option Plan") which provides for the grant of stock
options to purchase up to an aggregate of 4,050 shares of the common stock of
the Company at a price of $1,000 per share with 2,800 shares being initially
granted to employees.  At the time of the grant, 16.4% of the options became
vested with the remaining options targeted to vest on the last day of plan
years 1999 through 2001 at a rate of 27.9% of the aggregate number of shares of
common stock subject to the options per year, provided that the Company attains
specified targets of Adjusted EBITDA, as defined.  If the Adjusted EBITDA goal
is not attained in any plan year, the options scheduled to vest in that year
will vest on a pro rata basis as prescribed in the 1999 Option Plan, except
that unless more than 90% of the Adjusted EBITDA goal is achieved, no portion
of the options shall vest for the year. Conversely, the 1999 Option Plan
provides for make-up vesting and accelerated vesting (of up to 25% of the
options scheduled to vest in 2001), in that order, in the event that the
Adjusted EBITDA goal is surpassed in any plan year.  In addition, the Plan was
amended effective December 11, 2002 to provide for the immediate accelerated
vesting of an additional 618 options.  Notwithstanding the foregoing, all
options granted under the 1999 Option Plan vest automatically on April 21,
2007, regardless of performance criteria and expire on the earlier of the tenth
anniversary of the date of grant or the sale of the Company.

The following table sets forth the activity and outstanding balances of options
exercisable for shares of common stock under the 1999 Option Plan:

                                                                    Available
                                                          Options   For Future
                                                        Outstanding   Grants
                                                         ---------- ----------
  At plan inception on December 13, 1999                         -      4,050
  Granted on December 13, 1999 ($1,000 per share)            2,800     (2,800)
                                                         ---------- ----------
  Balance at December 31, 1999                               2,800      1,250
  Options granted                                                -          -
                                                         ---------- ----------
  Balance at December 31, 2000                               2,800      1,250
  Options granted                                                -          -
                                                         ---------- ----------
  Balance at December 31, 2001                               2,800      1,250
  Options granted                                                -          -
                                                         ---------- ----------
  Balance at December 31, 2002                               2,800      1,250
                                                         ========== ==========

At December 31, 2002, the number of options outstanding that were vested
totaled 2,330 at an exercise price of $1,000 per share with a weighted average
remaining contractual life of 7 years.  Information regarding the method used
by the Company to account for stock-based compensation and expense reported is
duscussed further in Note 1.
<PAGE> F-19 / 44 of 60
                          Great Lakes Acquisition Corp.
                                and Subsidiaries

              Notes to Consolidated Financial Statements (continued)


14.  Other Income (Expense)

Other income (expense) consists of the following:

                                                 2000       2001       2002
                                              ---------- ---------- ----------
                                                       (In thousands)
  1998 acquisition fee settlement             $       -  $  (5,000) $     114
  Gain on sale of lease right/assets                  -          -      2,734
  Export tax refund                               1,112      1,286        685
  Export duties                                       -          -     (1,127)
  Foreign exchange gain                               -        461        653
  Other                                             (64)      (180)    (1,002)
                                              ---------- ---------- ----------
                                              $   1,048  $  (3,433) $   2,057
                                              ========== ========== ==========

15.  Income Taxes

Components of the Company's deferred tax liabilities and assets are as follows:

                                                            2001       2002
                                                         ---------- ----------
                                                             (In thousands)
  Deferred tax liabilities:
   Book over tax depreciable basis                       $  50,973  $  50,080
   Other - net                                               3,584      3,386
                                                         ---------- ----------
  Total deferred tax liabilities                            54,557     53,466
                                                         ---------- ----------
  Deferred tax assets:
   Accrued liabilities                                       7,701      6,361
   Valuation allowance                                        (475)    (1,166)
   Minimum pension liability adjustment                        748      1,841
   Other - net                                                 388      2,950
                                                         ---------- ----------
  Total deferred tax assets                                  8,362      9,986
                                                         ---------- ----------
  Net deferred tax liability                             $  46,195  $  43,480
                                                         ========== ==========

The differences between tax expense computed at the statutory federal income
tax rate and actual tax expense are as follows:

                                                 2000       2001       2002
                                              ---------- ---------- ----------
                                                       (In thousands)
  Tax expense at statutory rates applied
   to pretax earnings                         $   3,045  $     636  $   4,161
  State income tax, net of federal tax effects        9          3        (17)
  Tax exempt earnings                              (326)      (289)      (529)
  Effects of foreign operations                     233     (1,483)     3,105
  Amortization of goodwill                        1,566      1,566          -
  Change in valuation allowance                     475          -        691
  Other                                            (212)       576       (210)
                                              ---------- ---------- ----------
  Income tax expense                          $   4,790  $   1,009  $   7,201
                                              ========== ========== ==========
<PAGE> F-20 / 45 of 60
                          Great Lakes Acquisition Corp.
                                and Subsidiaries

              Notes to Consolidated Financial Statements (continued)


Income taxes consist of the following:

                                                 2000       2001       2002
                                              ---------- ---------- ----------
                                                       (In thousands)
  Current:
   Federal                                    $   3,447  $     289  $     324
   State                                            323        366         77
   Foreign                                        4,907      4,883      8,422
                                              ---------- ---------- ----------
                                                  8,677      5,538      8,823
                                              ---------- ---------- ----------
  Deferred:
   Federal                                       (3,186)    (2,687)      (582)
   State                                           (309)      (361)      (103)
   Foreign                                         (392)    (1,481)      (937)
                                              ---------- ---------- ----------
                                                 (3,887)    (4,529)    (1,622)
                                              ---------- ---------- ----------
  Total                                       $   4,790  $   1,009  $   7,201
                                              ========== ========== ==========

Income taxes paid were approximately $10,551,000, $8,557,000 and $4,051,000 for
the years ended December 31, 2000, 2001 and 2002, respectively.

U.S. income taxes have not been provided on the undistributed earnings of
Copetro S.A. ($34,437,000 as of December 31, 2002) because such earnings are
expected to be reinvested.  Upon distribution of those earnings, the Company
would be subject to U.S. income taxes (subject to an adjustment for foreign tax
credits and withholding taxes, if any).

Loss before income taxes and extraordinary item attributable to domestic
operations (which included results from export sales) was $4,221,000,
$11,251,000 and nil for the years ended December 31, 2000, 2001 and 2002,
respectively.

16.  Financial Information Relating to Segments

The Company has three reportable business segments.

  Anode Grade CPC-is produced and marketed directly to primary aluminum
  smelters world-wide for use as the principal raw material in the production
  of carbon anodes, a key component in the aluminum smelting process.

  Industrial Grade CPC-is produced and marketed for use in a variety of non-
  aluminum, industrial applications, including as a raw material in the
  production of titanium dioxide, as a recarburizer (carbon additive) in the
  manufacture of steel and foundry products and for use in other specialty
  materials and chemicals markets.

  RPC Trading-involves the world-wide marketing of raw petroleum coke ("RPC")
  for use as the raw material in the production of CPC and as a fuel source in
  a variety of other industrial applications.

The production and distribution of CPC, which is the focus of the first two
units, is accomplished utilizing the same process, plant facilities and
operating assets.  The RPC trading business, as conducted by the Company,
generally involves the use of such assets on a limited basis. Accordingly,
the Company does not segregate, or otherwise account for, the assets by
segments.
<PAGE> F-21 / 46 of 60
                          Great Lakes Acquisition Corp.
                                and Subsidiaries

              Notes to Consolidated Financial Statements (continued)


                          Anode    Industrial
                          Grade      Grade        RPC
                           CPC        CPC       Trading     Other     Total
                        ---------- ---------- ---------- ---------- ----------
                                            (In thousands)
 ---------2000----------
  Net sales             $ 194,066  $  55,224  $  11,792  $   2,519  $ 263,601
  Cost of goods sold     (144,409)   (40,882)    (9,932)    (7,495)  (202,718)
                        ---------- ---------- ---------- ---------- ----------
  Segment Profit        $  49,657  $  14,342  $   1,860  $  (4,976)    60,883
                        ========== ========== ========== ==========
  Selling, general and
   administrative expenses                                            (19,852)
  Interest expense, net                                               (33,380)
  Other income (expense)                                                1,048
                                                                    ----------
  Income before income taxes and extraordinary item                 $   8,699
                                                                    ==========

                          Anode    Industrial
                          Grade      Grade        RPC
                           CPC        CPC       Trading     Other     Total
                        ---------- ---------- ---------- ---------- ----------
                                            (In thousands)
 ---------2001----------
  Net sales             $ 194,464  $ 54,024   $  19,786  $   2,280  $ 270,554
  Cost of goods sold     (149,000)  (41,723)    (18,300)    (6,943)  (215,966)
                        ---------- ---------- ---------- ---------- ----------
  Segment Profit        $  45,464  $  12,301  $   1,486  $  (4,663)    54,588
                        ========== ========== ========== ==========
  Selling, general and
   administrative expenses                                            (18,693)
  Interest expense, net                                               (30,644)
  Other income (expense)                                               (3,433)
                                                                    ----------
  Income before income taxes and extraordinary item                 $   1,818
                                                                    ==========

                          Anode    Industrial
                          Grade      Grade        RPC
                           CPC        CPC       Trading     Other     Total
                        ---------- ---------- ---------- ---------- ----------
                                            (In thousands)
 ---------2002----------
  Net sales             $ 253,085  $  44,605  $   8,817  $   1,060  $ 307,567
  Cost of goods sold     (207,494)   (34,350)    (5,115)    (5,993)  (252,952)
                        ---------- ---------- ---------- ---------- ----------
  Segment Profit        $  45,591  $  10,255  $   3,702  $  (4,933)    54,615
                        ========== ========== ========== ==========
  Selling, general and
   administrative expenses                                            (11,803)
  Interest expense, net                                               (32,982)
  Other income (expense)                                                2,057
                                                                    ----------
  Income before income taxes                                        $  11,887
                                                                    ==========
<PAGE> F-22 / 47 of 60
                          Great Lakes Acquisition Corp.
                                and Subsidiaries

              Notes to Consolidated Financial Statements (continued)


17.  Operations by Geographic Area

The following is a summary of the Company's operations by geographic area:

                                                   Year Ended December 31,
                                                 2000       2001       2002
                                              ---------- ---------- ----------
                                                       (In thousands)
  Net Sales
   United States                              $ 192,580  $ 208,224  $ 268,110
   Foreign                                       71,021     62,330     39,457
                                              ---------- ---------- ----------
                                              $ 263,601  $ 270,554  $ 307,567
                                              ========== ========== ==========
  Operating income
   United States                              $  28,705  $  24,657  $  30,880
   Foreign                                       12,326     11,238     11,932
                                              ---------- ---------- ----------
                                              $  41,031  $  35,895  $  42,812
                                              ========== ========== ==========
  Assets
   United States                              $ 378,913  $ 383,375  $ 420,574
   Foreign                                       80,128     70,433     70,417
                                              ---------- ---------- ----------
                                              $ 459,041  $ 453,808  $ 490,991
                                              ========== ========== ==========

Exports from U.S. operations were approximately $97,023,000, $117,334,000 and
$151,798,000 for the years ended December 31, 2000, 2001 and 2002,
respectively.  Export sales to Western Europe as a percentage of United States
net sales were 26.7%, 23.0% and 25.4% for the years ended December 31, 2000,
2001 and 2002, respectively.  Export sales to the Mideast as a percentage of
United States net sales were 18.9% for the year ended December 31, 2001.
Export sales to North America (exclusive of the U.S.) as a percentage of United
States net sales were 12.9% for the year ended December 31, 2002.  The
Company's foreign operations are conducted principally in South America.
<PAGE> F-23 / 48 of 60
                          Great Lakes Acquisition Corp.
                                and Subsidiaries

              Notes to Consolidated Financial Statements (continued)


18.  Quarterly Financial Data (unaudited)

The following is a summary of Company's quarterly results of operations:

                                               2001 Quarterly Data
                                      3/31       6/30       9/30      12/31
                                   ---------- ---------- ---------- ----------
                                                 (In thousands)
  Net sales                        $  72,042  $  69,517  $  68,194  $  60,801
  Gross profit                        14,401     14,353     12,735     13,099
  Operating income                     9,841      9,301      7,891      8,862
  Other expense                        7,349      6,809      7,411     12,508
  Income before income tax and
   extraordinary expense               2,492      2,492        480     (3,646)
  Income tax expense (benefit)         1,374      1,264        480     (2,109)
  Extraordinary gain, net of tax       3,850          -          -       (133)
  Net income                           4,968      1,228          -     (1,670)
  Adjusted EBITDA (1)                 15,839     15,421     13,958     14,829


                                               2002 Quarterly Data
                                      3/31       6/30       9/30      12/31
                                   ---------- ---------- ---------- ----------
                                                 (In thousands)
  Net sales                        $  55,346  $  83,220  $  87,178  $  81,823
  Gross profit                        10,363     13,141     17,623     13,488
  Operating income                     7,419     10,432     14,551     10,410
  Other expense                        2,058      6,856     11,801     10,210
  Income before income tax and
   extraordinary expense               5,361      3,576      2,750        200
  Income tax expense (benefit)         3,210      2,510      1,443        (38)
  Net income                           2,151      1,066      1,307        162
  Adjusted EBITDA (1)                 12,484     15,832     19,862     15,517


(1)  Adjusted EBITDA should not be considered a substitute for net income,
cash flow from operating activities or other cash flow statement data
prepared in accordance with generally accepted accounting principles or as
an alternative to net income as an indicator of operating performance or
cash flows as a measure of liquidity.  Adjusted EBITDA is presented here
only to provide additional information with respect to the Company's ability
to satisfy debt service.  While Adjusted EBITDA is frequently used as a
measure of operations and the ability to meet debt service requirements, it
is not necessarily comparable to other similarly titled captions of other
companies due to potential inconsistencies in the method of calculation.

19.  Extraordinary Item

Extraordinary gains related to the repurchase of the Company's debt of
approximately $3,804,000 and $3,717,000 (net of income tax expenses of
$2,048,000 and $2,073,000) were recognized in 2000 and 2001, respectively.

20.  Litigation and Contingencies

The Company is a party to several proceedings, which are in various stages of
resolution.  Management of the Company, after discussion with legal counsel, is
of the opinion that the ultimate resolution of these matters will not have a
material effect upon the financial condition of the Company.
<PAGE> F-24 / 49 of 60
<TABLE>
                                   Schedule I
                  Condensed Financial Information of Registrant
                          Great Lakes Acquisition Corp.

                            Condensed Balance Sheets
<CAPTION>
                 (In thousands, except share and per share data)

                                                              December 31,
                                                            2001       2002
                                                         ---------- ----------
<S>                                                      <C>        <C>
ASSETS
Investments in and amounts due from wholly
 owned subsidiaries                                      $ 129,177  $ 136,617
Capitalized financing costs                                    594        514
Deferred taxes                                                 465      2,206
                                                         ---------- ----------
  Total Assets                                           $ 130,236  $ 139,337
                                                         ========== ==========

LIABILITIES AND STOCKHOLDERS' EQUITY
Long-Term Debt                                           $  47,562  $  54,009

Stockholders' Equity
 Common stock, par value $0.01 per share;
  authorized, 92,000 shares, issued and
  outstanding, 65,950 shares in 2001 and in 2002                 1          1
 Additional paid-in capital                                 65,949     65,949
 Retained earnings                                          18,112     22,798
 Accumulated other comprehensive loss                       (1,388)    (3,420)
                                                         ---------- ----------
  Total stockholders' equity                                82,674     85,328
                                                         ---------- ----------
  Total liabilities and stockholders' equity             $ 130,236  $ 139,337
                                                         ========== ==========
<FN>
See accompanying notes.
</TABLE>
<PAGE> S-1 / 50 of 60
<TABLE>
                                   Schedule I
                  Condensed Financial Information of Registrant
                          Great Lakes Acquisition Corp.

                       Condensed Statements of Operations
<CAPTION>
                                                   Year Ended December 31,
                                                 2000       2001       2002
                                              ---------- ---------- ----------
                                                       (In thousands)
<S>                                           <C>        <C>        <C>
Interest expense                              $  (5,218) $  (5,822) $  (6,550)
                                              ---------- ---------- ----------
Loss before income taxes and equity
 in net income of subsidiaries                   (5,218)    (5,822)    (6,550)

Income tax benefit                                1,683      1,979      2,293

Equity in net income of subsidiaries             11,248      8,369      8,943
                                              ---------- ---------- -----------
  Net income                                  $   7,713  $   4,526  $   4,686
                                              ========== ========== ===========
<FN>
See accompanying notes.
</TABLE>
<PAGE> S-2 / 51 of 60
<TABLE>
                                   Schedule I
                  Condensed Financial Information of Registrant
                          Great Lakes Acquisition Corp.

                   Condensed Statements of Stockholders' Equity
<CAPTION>
                                                          Accumulated
                                                             Other     Total
                                         Add'l              Compre-    Stock-
                              Common    Paid-in   Retained  hensive   holders'
                               Stock    Capital   Earnings   Loss      Equity
                             --------- --------- --------- --------- ---------
                                               (In thousands)
<S>                          <C>       <C>       <C>       <C>       <C>
Balance at December 31, 1999 $      1  $ 65,949  $  5,873  $      -  $ 71,823
Net income                          -         -     7,713         -     7,713
                             --------- --------- --------- --------- ---------
Balance at December 31, 2000        1    65,949    13,586         -    79,536
Net income                          -         -     4,526         -     4,526
Minimum pension liability
 adjustment                         -         -         -    (1,388)   (1,388)
                                                                     ---------
Comprehensive income                                                    3,138
                             --------- --------- --------- --------- ---------
Balance at December 31, 2001        1    65,949    18,112    (1,388)   82,674
Net income                          -         -     4,686         -     4,686
Minimum pension liability
 adjustment                         -         -         -    (2,032)   (2,032)
                                                                     ---------
Comprehensive income                                                    2,654
                             --------- --------- --------- --------- ---------
Balance at December 31, 2002 $      1  $ 65,949  $ 22,798  $ (3,420) $ 85,328
                             ========= ========= ========= ========= =========
<FN>
See accompanying notes.
</TABLE>
<PAGE> S-3 / 52 of 60
<TABLE>
                                   Schedule I
                  Condensed Financial Information of Registrant
                          Great Lakes Acquisition Corp.

                       Condensed Statements of Cash Flows
<CAPTION>
                                                   Year Ended December 31,
                                                 2000       2001       2002
                                              ---------- ---------- ----------
                                                       (In thousands)
<S>                                           <C>        <C>        <C>
Operating activities
Net income                                    $   7,713  $   4,526  $   4,686
 Adjustments to reconcile net income
 to net cash used by operating activities:
  Amortization                                      205        106         80
  Accretions of long-term debt                    5,000      5,678      6,447
  Deferred taxes                                   (398)     1,510     (1,741)
  Undistributed earnings of affiliates          (11,248)    (8,369)    (8,943)
  Changes in operating assets and liabilities:
    Other current assets                            620          -          -
    Other, net                                   (1,272)    (3,451)      (529)
                                              ---------- ---------- ----------
Cash used by operating activities                   620          -          -
                                              ---------- ---------- ----------
Investing activities
 Investments in subsidiaries                       (620)         -          -
                                              ---------- ---------- ----------
Net cash used by investing activities              (620)         -          -
                                              ---------- ---------- ----------
Increase (decrease) in cash                           -          -          -
Cash at beginning of period                           -          -          -
                                              ---------- ---------- ----------
Cash at end of period                         $       -  $       -  $       -
                                              ========== ========== ==========
<FN>
See accompanying notes.
</TABLE>
<PAGE> S-4 / 53 of 60
                                   Schedule I
                  Condensed Financial Information of Registrant
                    Great Lakes Acquisition Corp. (continued)

                     Notes to Condensed Financial Statements


1.  Significant Accounting Policies

Organization

Great Lakes Acquisition Corp. (the "Company") was incorporated under the laws
of Delaware on March 31, 1998.  It is 98.56% owned by American Industrial
Capital Fund II, L.P.

Through its wholly-owned operating subsidiary, Great Lakes Carbon Corporation
("GLC"), acquired on May 22, 1998, the Company is the largest producer of
calcined coke supplying customers principally in the aluminum industry.

Basis of Presentation

In the parent company-only financial statements, the Company's investment in
subsidiaries is stated at cost plus equity in undistributed earnings of
subsidiaries since the date of acquisition.  The parent company-only financial
statements should be read in conjunction with the Company's consolidated
financial statements.

Use of Estimates

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

2.  Long-Term Debt

Long-term debt consists of the following:

                                                              December 31,
                                                            2001       2002
                                                         ---------- ----------
							     (In thousands)
13.125% Senior Discount Debentures due May 15, 2009      $  47,562  $  54,009
Less current portion                                             -          -
                                                         ---------- ----------
                                                         $  47,562  $  54,009
                                                         ========== ==========

The Senior Discount Debentures are general unsecured obligations of the
Company, subordinated in right of payment to essentially all subsidiary
liabilities.  No cash interest will be payable on the Debentures until November
15, 2003 but the accreted value will increase (representing amortization of
original issue discount) to approximately $56,600,000 through May 15, 2003.
The Debentures require the Company to make cash interest payments semiannually
commencing in November 2003 of approximately $7,432,000 per year and a
principal payment of approximately $56,600,000 in May 2009.  At the Company's
option, the Debentures may be redeemed, in whole or in part, commencing May 15,
2003 at various prices ranging from 106.6% in 2003 to par in 2006 and beyond.
The Senior Discount Debentures indenture imposes limitations on certain
payments, including dividends.  The outstanding common stock of GLC has been
pledged as collateral for this obligation.
<PAGE> S-5 / 54 of 60
                                   Schedule I
                  Condensed Financial Information of Registrant
                    Great Lakes Acquisition Corp. (continued)

                     Notes to Condensed Financial Statements


There are no maturities of long-term debt until May 2009 when the Senior
Discount Debentures become payable in full.

The Company or its affiliates may, from time to time, depending on liquidity,
and market and economic conditions, purchase in open-market transactions Senior
Discount Debentures or the 10 1/4% Senior Subordinated Notes issued by GLC.  At
December 31, 2002, approximately 61% of the outstanding Debentures had been
purchased by GLC with the intention of holding them to maturity.

The fair market value of the Company's long-term debt obligation approximated
$4,800,000 and $7,600,000 at December 31, 2001 and 2002, respectively.

3.  Stockholders' Equity

On May 18, 1998, the Company canceled its previously issued shares of common
stock and issued 65,000 shares of its common stock for $65 million.  On May 22,
1998, the Company issued 330 shares of its common stock for $330,000.

In 1999, certain members of management of the Company purchased 620 shares of
the Company's common stock for $620,000, which increased the number of issued
and outstanding common shares to 65,950 shares at December 31, 1999.

On December 13,1999, the Board of Directors adopted the 1999 Management Stock
Option Plan (the "1999 Option Plan") which provides for the grant of stock
options to purchase up to an aggregate of 4,050 shares of the common stock of
the Company at a price of $1,000 per share with 2,800 shares being initially
granted to employees.  At the time of the grant, 16.4% of the options became
vested with the remaining options targeted to vest on the last day of plan
years 1999 through 2001 at a rate of 27.9% of the aggregate number of shares of
common stock subject to the options per year, provided that the Company attains
specified targets of Adjusted EBITDA, defined as operating income before
depreciation, amortization and management fees and related expenses.  If the
Adjusted EBITDA goal is not attained in any plan year, the options scheduled to
vest in that year will vest on a pro rata basis as prescribed in the 1999
Option Plan, except that unless more than 90% of the Adjusted EBITDA goal is
achieved, no portion of the options shall vest for the year.  Conversely, the
1999 Option Plan provides for make-up vesting and accelerated vesting (of up to
25% of the options scheduled to vest in 2001), in that order, in the event that
Adjusted EBITDA goal is surpassed in any plan year.  In addition, the Plan was
amended effective December 11, 2002 to provide for the immediate accelerated
vesting of an additional 618 options.  Notwithstanding the foregoing, all
options granted under the 1999 Option Plan vest automatically on April 21,
2007, regardless of performance criteria and expire on the earlier of the tenth
anniversary of the date of grant or the sale of the Company.

The following table sets forth the activity and outstanding balances of options
exercisable for shares of common stock under the 1999 Option Plan:

                                                                    Available
                                                          Options   For Future
                                                        Outstanding   Grants
                                                         ---------- ----------
  At plan inception on December 13, 1999                         -      4,050
  Granted on December 13, 1999 ($1,000 per share)            2,800     (2,800)
                                                         ---------- ----------
  Balance at December 31, 1999                               2,800      1,250
  Options granted                                                -          -
                                                         ---------- ----------
  Balance at December 31, 2000                               2,800      1,250
  Options granted                                                -          -
                                                         ---------- ----------
  Balance at December 31, 2001                               2,800      1,250
  Options granted                                                -          -
                                                         ---------- ----------
  Balance at December 31, 2002                               2,800      1,250
                                                         ========== ==========
<PAGE> S-6 / 55 of 60
                                   Schedule I
                  Condensed Financial Information of Registrant
                    Great Lakes Acquisition Corp. (continued)

                     Notes to Condensed Financial Statements


At December 31, 2002, the number of options outstanding that were vested
totaled 2,330 at an exercise price of $1,000 per share with a weighted average
remaining contractual life of 7 years.

All of the participants in the 1999 Option Plan are subsidiary-company
personnel since the Company does not itself currently have any employees.
Accordingly, all compensation related accounting in connection with the stock
options as provided for under Financial Accounting Standards Board Statement of
Financial Accounting Standards ("SFAS") No. 123, "Accounting for Stock-Based
Compensation," as amended by SFAS No. 148, "Accounting for Stock-Based
Compensation-Transition and Disclosure," is pertinent only to the Company's
consolidated financial statements and, consequently, is not discussed further
in the context of these parent company-only financial statements.

4.  Income Taxes

Components of the Company's deferred tax asset are as follows:

                                                            2001       2002
                                                         ---------- ----------
                                                             (In thousands)
  Deferred tax asset:
   Accrued liabilities                                   $     465  $   2,206
                                                         ---------- ----------
  Total deferred tax asset                               $     465  $   2,206
                                                         ========== ==========

The Company considers that a valuation allowance is not necessary in connection
with the temporary differences giving rise to its deferred tax asset.

The differences between tax expense computed at the statutory federal income
tax rate and actual tax expense are as follows:

                                                 2000       2001       2002
                                              ---------- ---------- ----------
                                                       (In thousands)
  Tax expense at statutory rates applied
   to pretax earnings                         $  (1,826) $  (2,038) $  (2,293)
  Other                                             143         59          -
                                              ---------- ---------- ----------
  Income tax benefit                          $  (1,683) $  (1,979) $  (2,293)
                                              ========== ========== ==========

Income taxes consist of the following:

                                                 2000       2001       2002
                                              ---------- ---------- ----------
                                                       (In thousands)
  Current:
   Federal                                    $  (1,285) $  (3,489) $    (552)
                                              ---------- ---------- ----------
                                                 (1,285)    (3,489)      (552)
                                              ---------- ---------- ----------
  Deferred:
   Federal                                         (398)     1,510     (1,741)
                                              ---------- ---------- ----------
                                                   (398)     1,510     (1,741)
                                              ---------- ---------- ----------
  Total                                       $  (1,683) $  (1,979) $  (2,293)
                                              ========== ========== ==========

No income taxes were paid for the years ended December 31, 2000, 2001 and 2002.
<PAGE> S-7 / 56 of 60
                                   SIGNATURES


        Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the registrant has duly caused this annual report to be
signed on its behalf by the undersigned thereunto duly authorized on the 26th
day of March 2003.

                                                 Great Lakes Acquisition Corp.

                                                 By:  /s/JAMES D. MCKENZIE
                                                 -----------------------------
                                                 James D. McKenzie, President
                                                 and Chief Executive Officer

                               Power of Attorney

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


Signature                    Title                          Date
---------------------------  -----------------------------  ------------------

/s/JAMES D. MCKENZIE         President, Chief Executive
---------------------        Officer and Director           March 26, 2003
James D. McKenzie            (Principal Executive Officer)

         *                   Senior Vice President,         March 26, 2003
---------------------        Operations and Administration
A. Frank Baca

         *                   Vice President, Sales          March 26, 2003
---------------------
Robert C. Dickie

         *                   Vice President, Raw Materials  March 26, 2003
---------------------
Craig L. Beilharz

         *                   Controller, Assistant          March 26, 2003
---------------------        Secretary and Chief
Adela I. Robles              Financial Officer

         *                   Non-Executive Chairman of      March 26, 2003
---------------------        the Board, Director
Theodore C. Rogers

         *                   Director                       March 26, 2003
---------------------
W. Richard Bingham

         *                   Director                       March 26, 2003
---------------------
Kim A. Marvin


By:  /s/JAMES D. MCKENZIE
--------------------------
James D. McKenzie
Attorney-in-Fact
<PAGE> 57 of 60
                                CERTIFICATION


Each of the undersigned hereby certifies in their capacity as an officer of
Great Lakes Acquisition Corp. (the "Company") that the Annual Report of the
Company on Form 10-K for the year ended December 31, 2002 fully complies with
the requirements of Section 13(a) of the Securities Exchange Act of 1934 and
that the information contained in such report fairly presents, in all material
respects, the financial condition of the Company at December 31, 2002 and 2001
and the results of operations of the Company for the three years then ended.

Date: 3/26/03                                  /s/JAMES D. MCKENZIE
                                               -------------------------------
                                               President and Chief Executive
                                               Officer

Date: 3/26/03                                  /s/ADELA I. ROBLES
                                               -------------------------------
                                               Controller, Assistant Secretary
                                               and Chief Financial Officer

<PAGE> 58 of 60
                                CERTIFICATION

I, James D. McKenzie, certify that:

1. I have reviewed this annual report on Form 10-K of Great Lakes Acquisition
Corp.;

2. Based on my knowledge, this annual 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 annual
report;

3. Based on my knowledge, the financial statements, and other financial
information included in this annual 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 annual report;

4. The registrant's other certifying officer(s) 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
           annual 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 annual report (the "Evaluation Date"); and
        c) presented in this annual report our conclusions about the effective-
           ness of the disclosure controls and procedures based on our evalua-
           tion as of the Evaluation Date;

5. The registrant's other certifying officer(s) 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:
        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(s) and I have indicated in this
annual 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: 3/26/03                                  /s/JAMES D. MCKENZIE
                                               -------------------------------
                                               President and Chief Executive
                                               Officer
<PAGE> 59 of 60
                                CERTIFICATION

I, Adela I. Robles, certify that:

1. I have reviewed this annual report on Form 10-K of Great Lakes Acquisition
Corp.;

2. Based on my knowledge, this annual 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 annual
report;

3. Based on my knowledge, the financial statements, and other financial
information included in this annual 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 annual report;

4. The registrant's other certifying officer(s) 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
           annual 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 annual report (the "Evaluation Date"); and
        c) presented in this annual report our conclusions about the effective-
           ness of the disclosure controls and procedures based on our evalua-
           tion as of the Evaluation Date;

5. The registrant's other certifying officer(s) 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:
        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(s) and I have indicated in this
annual 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: 3/26/03                                  /s/ADELA I. ROBLES
                                               -------------------------------
                                               Controller, Assistant Secretary
                                               and Chief Financial Officer
<PAGE> 60 of 60