| For      the quarter ended September 30,      2009                         |                                                                     Commission file      number  1-3919 |
|----------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                       |
| Keystone      Consolidated Industries, Inc.                                |
| (Exact      name of Registrant as specified in its charter)                |
|                                                                       |
| Delaware                                                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                             | 37-0364250 |
| (State      or other jurisdiction ofIncorporation      or organization)    |                                                                                                                                                                                                                                                                                                                                                                                                                                                             | (IRS      EmployerIdentification      No.) |
|                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |
| 5430      LBJ Freeway, Suite 1740,Three      Lincoln Centre, Dallas, Texas |                                                                                                                                                                                                                                                                                                                                                                                                                                                             | 75240-2697 |
| (Address      of principal executive offices)                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                             | (Zip      Code) |
|                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |
| Registrant’s      telephone number, including area code:             | (972) 458-0028                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                             |

----

| Part      I.    FINANCIAL      INFORMATION                                                                                                                        |  Page  |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------|
|                                                                                                                                                                                  |             |
| Item      1.    Financial      Statements                                                                                                                         |             |
|                                                                                                                                                                                  |             |
| Condensed      Consolidated Balance Sheets –               December 31, 2008; September 30, 2009(unaudited)                        | 3                |
|                                                                                                                                                                                  |             |
| Condensed      Consolidated Statements of Operations (unaudited) -  Three      months and nine months ended September 30, 2008 and 2009                                     | 5                |
|                                                                                                                                                                                  |             |
| Condensed      Consolidated Statements of Cash Flows (unaudited) –  Nine      months ended September 30, 2008 and 2009                                                | 6                |
|                                                                                                                                                                                  |             |
| Condensed      Consolidated Statement of Stockholders' Equity  and      Comprehensive Income (unaudited) -    Nine      months ended September 30, 2009 | 7                |
|                                                                                                                                                                                  |             |
| Notes      to Condensed Consolidated Financial Statements (unaudited)                                                                                                                 | 8                |
|                                                                                                                                                                                  |             |
| Item      2.    Management's      Discussion and Analysis of Financial  Condition and Results      of Operations                                        | 18               |
|                                                                                                                                                                                  |             |
| Item      3.    Quantitative      and Qualitative Disclosures About Market Risk                                                                                   | 31               |
|                                                                                                                                                                                  |             |
| Item      4.    Controls and      Procedures                                                                                                                      | 31               |
|                                                                                                                                                                                  |             |
| PART      II.   OTHER      INFORMATION                                                                                                                                 |             |
|                                                                                                                                                                                  |             |
| Item      1.    Legal      Proceedings                                                                                                                            | 33               |
|                                                                                                                                                                                  |             |
| Item      1A.         Risk Factors                                                                                                            | 33               |
|                                                                                                                                                                                  |             |
| Item      6.    Exhibits                                                                                                                                          | 33               |
|                                                                                                                                                                                  |             |
| Items      2, 3, 4 and 5 of Part II are omitted because there is no information to      report.                                                                                       |             |

----

|                                                           |   | December      31, |    |   | September      30, |   |
|----------------------------------------------------------------|--------|-------------------|---------|--------|--------------------|--------|
| ASSETS                                                         |   |  2008        |    |   | 2009               |   |
|                                                           |   |              |    |   | (unaudited)        |   |
|                                                           |   |              |    |   |               |   |
| Current      assets:                                           |   |              |    |   |               |   |
|   Accounts      receivable, net                      |   | $                 | 26,612  |   |               | $      | 50,681 |   |
|   Inventories                                        |   |              | 70,858  |   |               |   | 58,068 |   |
|   Deferred      income taxes                         |   |              | 14,373  |   |               |   | 14,373 |   |
|   Income      taxes receivable                       |   |              | -       |   |               |   | 2,052 |   |
|   Prepaid      expenses and other                    |   |              | 2,724   |   |               |   | 2,848 |   |
|                                                           |   |              |    |   |               |   |   |   |
|     Total      current assets              |   |              | 114,567 |   |               |   | 128,022 |   |
|                                                           |   |              |    |   |               |   |   |   |
| Property,      plant and equipment:                            |   |              |    |   |               |   |   |   |
|   Land                                               |   |              | 1,468   |   |               |   | 1,468 |   |
|   Buildings      and improvements                    |   |              | 59,598  |   |               |   | 60,850 |   |
|   Machinery      and equipment                       |   |              | 317,573 |   |               |   | 323,788 |   |
|   Construction      in progress                      |   |              | 9,421   |   |               |   | 5,751 |   |
|                                                           |   |              | 388,060 |   |               |   | 391,857 |   |
|   Less      accumulated depreciation                 |   |              | 298,073 |   |               |   | 305,703 |   |
|                                                           |   |              |    |   |               |   |   |   |
|     Net      property, plant and equipment |   |              | 89,987  |   |               |   | 86,154 |   |
|                                                           |   |              |    |   |               |   |   |   |
| Other      assets:                                             |   |              |    |   |               |   |   |   |
|   Restricted      investments                        |   |              | 2,277   |   |               |   | 250 |   |
|   Pension      asset                                 |   |              | 41,651  |   |               |   | 51,790 |   |
|   Other,      net                                    |   |              | 1,251   |   |               |   | 1,105 |   |
|                                                           |   |              |    |   |               |   |   |   |
|     Total      other assets                |   |              | 45,179  |   |               |   | 53,145 |   |
|                                                           |   |              |    |   |               |   |   |   |
|                                                           |   |              |    |   |               |   |   |   |
|     Total      assets                      |   | $                 | 249,733 |   |               | $      | 267,321 |   |
|                                                           |   |              |    |   |               |   |   |   |

----

| LIABILITIES      AND STOCKHOLDERS' EQUITY                                         |   | December 31, |     |   | September 30, |   |
|-----------------------------------------------------------------------------------|--------|--------------|----------|--------|---------------|--------|
|                                                                              |   | 2008    |     |   | 2009          |   |
|                                                                              |   |         |     |   | (unaudited)   |   |
|                                                                              |   |         |     |   |          |   |
| Current      liabilities:                                                         |   |         |     |   |          |   |
|   Notes      payable and current maturities of long-term      debt |   | $            | 18,848   |   |          | $      | 39,726 |   |
|   Accounts      payable                                                 |   |         | 7,776    |   |          |   | 11,316 |   |
|   Accrued      OPEB cost                                                |   |         | 1,372    |   |          |   | 1,372 |   |
|   Income      taxes payable                                             |   |         | 1,116    |   |          |   | - |   |
|   Other      accrued liabilities                                        |   |         | 29,569   |   |          |   | 17,202 |   |
|                                                                              |   |         |     |   |          |   |   |   |
|     Total      current liabilities                            |   |         | 58,681   |   |          |   | 69,616 |   |
|                                                                              |   |         |     |   |          |   |   |   |
| Noncurrent      liabilities:                                                      |   |         |     |   |          |   |   |   |
|   Long-term      debt                                                   |   |         | 12,782   |   |          |   | 6,588 |   |
|   Accrued      pension cost                                             |   |         | 1,319    |   |          |   | 969 |   |
|   Accrued      OPEB cost                                                |   |         | 42,560   |   |          |   | 43,657 |   |
|   Deferred      income taxes                                            |   |         | 8,284    |   |          |   | 15,602 |   |
|   Other      accrued liabilities                                        |   |         | 6,463    |   |          |   | 2,906 |   |
|                                                                              |   |         |     |   |          |   |   |   |
|     Total      noncurrent liabilities                         |   |         | 71,408   |   |          |   | 69,722 |   |
|                                                                              |   |         |     |   |          |   |   |   |
|                                                                              |   |         |     |   |          |   |   |   |
| Stockholders'      equity:                                                        |   |         |     |   |          |   |   |   |
|   Common      stock                                                     |   |         | 125      |   |          |   | 125 |   |
|   Additional      paid-in capital                                       |   |         | 100,111  |   |          |   | 100,111 |   |
|   Accumulated      other comprehensive loss                             |   |         | (160,415 | )      |          |   | (154,570 | ) |
|   Retained      earnings                                                |   |         | 180,619  |   |          |   | 183,113 |   |
|   Treasury      stock                                                   |   |         | (796     | )      |          |   | (796 | ) |
|                                                                              |   |         |     |   |          |   |   |   |
|     Total      stockholders' equity                           |   |         | 119,644  |   |          |   | 127,983 |   |
|                                                                              |   |         |     |   |          |   |   |   |
|     Total      liabilities and stockholders’ equity     |   | $            | 249,733  |   |          | $      | 267,321 |   |
|                                                                              |   |         |     |   |          |   |   |   |

----

|                                                                |   | Three      months ended  September 30, |         |   | Nine      months endedSeptember 30, |   |
|---------------------------------------------------------------------|--------|--------------------------------------------------|--------------|--------|-------------------------------------|--------|
|                                                                |   | 2008                                             |         |   | 2009                                |   |   | 2008  |   |   | 2009 |   |
|                                                                |   | (unaudited)                                      |         |
|                                                                |   |                                             |         |   |                                |   |   |   |   |   |   |   |
| Net      sales                                                      |   | $                                                | 183,209      |   |                                | $      | 100,363 |   |   | $ | 495,375 |   |   | $ | 231,349 |   |
| Cost      of goods sold                                             |   |                                             | (156,867     | )      |                                |   | (85,452 | ) |   |   | (440,170 | ) |   |   | (212,998 | ) |
|                                                                |   |                                             |         |   |                                |   |   |   |   |   |   |   |   |   |   |   |
|   Gross      margin                                       |   |                                             | 26,342       |   |                                |   | 14,911 |   |   |   | 55,205 |   |   |   | 18,351 |   |
|                                                                |   |                                             |         |   |                                |   |   |   |   |   |   |   |   |   |   |   |
| Other      operating income (expense):                              |   |                                             |         |   |                                |   |   |   |   |   |   |   |   |   |   |   |
|   Selling      expense                                    |   |                                             | (2,575       | )      |                                |   | (1,498 | ) |   |   | (6,338 | ) |   |   | (4,776 | ) |
|   General      and administrative expense                 |   |                                             | (5,187       | )      |                                |   | (3,678 | ) |   |   | (12,850 | ) |   |   | (7,539 | ) |
|   Defined      benefit pension credit (expense)           |   |                                             | 18,467       |   |                                |   | (1,515 | ) |   |   | 55,401 |   |   |   | (4,543 | ) |
|   Other      postretirement benefit credit                |   |                                             | 2,006        |   |                                |   | 1,042 |   |   |   | 6,542 |   |   |   | 3,562 |   |
|                                                                |   |                                             |         |   |                                |   |   |   |   |   |   |   |   |   |   |   |
|     Total      other operating income (expense) |   |                                             | 12,711       |   |                                |   | (5,649 | ) |   |   | 42,755 |   |   |   | (13,296 | ) |
|                                                                |   |                                             |         |   |                                |   |   |   |   |   |   |   |   |   |   |   |
| Operating      income                                               |   |                                             | 39,053       |   |                                |   | 9,262 |   |   |   | 97,960 |   |   |   | 5,055 |   |
|                                                                |   |                                             |         |   |                                |   |   |   |   |   |   |   |   |   |   |   |
| Nonoperating      income (expense):                                 |   |                                             |         |   |                                |   |   |   |   |   |   |   |   |   |   |   |
|   Interest      expense                                   |   |                                             | (879         | )      |                                |   | (474 | ) |   |   | (3,124 | ) |   |   | (1,214 | ) |
|   Other      income, net                                  |   |                                             | 306          |   |                                |   | 42 |   |   |   | 604 |   |   |   | 144 |   |
|                                                                |   |                                             |         |   |                                |   |   |   |   |   |   |   |   |   |   |   |
|     Total      nonoperating expense             |   |                                             | (573         | )      |                                |   | (432 | ) |   |   | (2,520 | ) |   |   | (1,070 | ) |
|                                                                |   |                                             |         |   |                                |   |   |   |   |   |   |   |   |   |   |   |
|   Income      before income taxes                         |   |                                             | 38,480       |   |                                |   | 8,830 |   |   |   | 95,440 |   |   |   | 3,985 |   |
|                                                                |   |                                             |         |   |                                |   |   |   |   |   |   |   |   |   |   |   |
| Income      tax expense                                             |   |                                             | (14,505      | )      |                                |   | (2,962 | ) |   |   | (35,936 | ) |   |   | (1,491 | ) |
|                                                                |   |                                             |         |   |                                |   |   |   |   |   |   |   |   |   |   |   |
|   Net      income                                         |   | $                                                | 23,975       |   |                                | $      | 5,868 |   |   | $ | 59,504 |   |   | $ | 2,494 |   |
|                                                                |   |                                             |         |   |                                |   |   |   |   |   |   |   |   |   |   |   |
| Basic      and diluted income per share                             |   | $                                                | 1.98         |   |                                | $      | 0.48 |   |   | $ | 5.25 |   |   | $ | 0.21 |   |
|                                                                |   |                                             |         |   |                                |   |   |   |   |   |   |   |   |   |   |   |
| Basic      and diluted weighted average shares outstanding     |   |                                             |  12,102 |   |                                |   | 12,102 |   |   |   | 11,336 |   |   |   | 12,102 |   |
|                                                                |   |                                             |         |   |                                |   |   |   |   |   |   |   |   |   |   |   |

----

|                                                                                         |   | Nine      months ended September 30, |    |
|----------------------------------------------------------------------------------------------|--------|-------------------------------------------|---------|
|                                                                                         |   | 2008                                      |    |   | 2009 |   |
|                                                                                         |   | (unaudited)                               |    |
|                                                                                         |   |                                      |    |   |   |   |
| Cash      flows from operating activities:                                                   |   |                                      |    |   |   |   |
|   Net      income                                                                  |   | $                                         | 59,504  |   |   | $ | 2,494 |   |
|   Depreciation      and amortization                                               |   |                                      | 11,432  |   |   |   | 10,399 |   |
|   Deferred      income taxes                                                       |   |                                      | 33,242  |   |   |   | 3,794 |   |
|   Defined      benefit pension expense (credit)                                    |   |                                      | (55,401 | ) |   |   | 4,543 |   |
|   OPEB      credit                                                                 |   |                                      | (6,542  | ) |   |   | (3,562 | ) |
|   OPEB      payments                                                               |   |                                      | (2,024  | ) |   |   | (1,005 | ) |
|   Bad      debt expense                                                            |   |                                      | 56      |   |   |   | 3,258 |   |
|   Inventory      impairment                                                        |   |                                      | -       |   |   |   | 1,495 |   |
|   Other,      net                                                                  |   |                                      | 639     |   |   |   | 346 |   |
|   Change      in assets and liabilities:                                           |   |                                      |    |   |   |   |   |   |
|     Accounts      receivable                                             |   |                                      | (27,962 | ) |   |   | (27,327 | ) |
|     Inventories                                                          |   |                                      | (20,636 | ) |   |   | 11,295 |   |
|     Accounts      payable                                                |   |                                      | 2,619   |   |   |   | 3,540 |   |
|     Accrued      environmental costs                                     |   |                                      | (505    | ) |   |   | (4,285 | ) |
|     Accrued      liabilities                                             |   |                                      | 14,849  |   |   |   | (11,639 | ) |
|     Income      taxes                                                    |   |                                      | (197    | ) |   |   | (3,168 | ) |
|     Other,      net                                                      |   |                                      | (1,013  | ) |   |   | (108 | ) |
|                                                                                         |   |                                      |    |   |   |   |   |   |
|       Net      cash provided by (used in) operating activities |   |                                      | 8,061   |   |   |   | (9,930 | ) |
|                                                                                         |   |                                      |    |   |   |   |   |   |
| Cash      flows from investing activities:                                                   |   |                                      |    |   |   |   |   |   |
|   Capital      expenditures                                                        |   |                                      | (7,776  | ) |   |   | (6,799 | ) |
|   Restricted      investments, net                                                 |   |                                      | (21     | ) |   |   | 2,027 |   |
|   Other,      net                                                                  |   |                                      | 436     |   |   |   | 72 |   |
|                                                                                         |   |                                      |    |   |   |   |   |   |
|       Net      cash used in investing activities               |   |                                      | (7,361  | ) |   |   | (4,700 | ) |
|                                                                                         |   |                                      |    |   |   |   |   |   |
| Cash      flows from financing activities:                                                   |   |                                      |    |   |   |   |   |   |
|   Issuance      of common stock                                                    |   |                                      | 24,713  |   |   |   | - |   |
|   Revolving      credit facility, net                                              |   |                                      | (10,172 | ) |   |   | 28,323 |   |
|   Principal      payments on other notes payable and long-term      debt      |   |                                      | (15,089 | ) |   |   | (13,670 | ) |
|   Deferred      financing costs paid                                               |   |                                      | (152    | ) |   |   | (23 | ) |
|                                                                                         |   |                                      |    |   |   |   |   |   |
|       Net      cash provided by (used in) financing activities |   |                                      | (700    | ) |   |   | 14,630 |   |
|                                                                                         |   |                                      |    |   |   |   |   |   |
| Net      change in cash and cash equivalents                                                 |   |                                      |    |   |   |   |   |   |
|                                                                                         |   |                                      |    |   |   |   |   |   |
| Cash      and cash equivalents, beginning of period                                          |   |                                      | -       |   |   |   | - |   |
|                                                                                         |   |                                      |    |   |   |   |   |   |
| Cash      and cash equivalents, end of period                                                |   | $                                         | -       |   |   | $ | - |   |
|                                                                                         |   |                                      |    |   |   |   |   |   |
| Supplemental      disclosures:  Cash      paid for:                                |   |                                      |    |   |   |   |   |   |
|     Interest,      net of amount capitalized                             |   | $                                         | 2,825   |   |   | $ | 903 |   |
|     Income      taxes, net                                               |   |                                      | 2,891   |   |   |   | 865 |   |
|                                                                                         |   |                                      |    |   |   |   |   |   |

----

|                                                         |   | Common      |   |   | Additionalpaid-in |   |    | Accumulated      othercomprehensive income (loss) |   |   | Retained |   |   | Treasury |   |   |   |   |    | Comprehensive |   |
|--------------------------------------------------------------|--------|-------------|--------|--------|-------------------|--------|---------|---------------------------------------------------|--------|--------|----------|--------|--------|----------|--------|--------|--------|--------|---------|---------------|--------|
|                                                         |   | stock       |   |   | capital           |   |    | Pensions                                          |   |   | OPEB     |   |   | earnings |   |   | stock  |   |    | Total         |   |   | income (loss) |   |
|                                                         |   | (unaudited) |   |
|                                                         |   |        |   |   |              |   |    |                                              |   |   |     |   |   |     |   |   |   |   |    |          |   |   |   |   |
| Balance      – December 31, 2008                       |   | $           | 125    |   |              | $      | 100,111 |                                              |   | $      | (193,258 | )      |   | $        | 32,843 |   |   | $      | 180,619 |          |   | $ | (796 | ) |   | $ | 119,644 |   |   |   |   |
|                                                         |   |        |   |   |              |   |    |                                              |   |   |     |   |   |     |   |   |   |   |    |          |   |   |   |   |   |   |   |   |   |   |   |
| Net      income                                              |   |        | -      |   |              |   | -       |                                              |   |   | -        |   |   |     | -      |   |   |   | 2,494   |          |   |   | - |   |   |   | 2,494 |   |   | $ | 2,494 |   |
|                                                         |   |        |   |   |              |   |    |                                              |   |   |     |   |   |     |   |   |   |   |    |          |   |   |   |   |   |   |   |   |   |   |   |   |
| Amortization      of prior service cost (credit), net of tax |   |        | -      |   |              |   | -       |                                              |   |   | 576      |   |   |     | (7,566 | )      |   |   | -       |          |   |   | - |   |   |   | (6,990 | ) |   |   | (6,990 | ) |
|                                                         |   |        |   |   |              |   |    |                                              |   |   |     |   |   |     |   |   |   |   |    |          |   |   |   |   |   |   |   |   |   |   |   |   |
| Amortization      of actuarial losses,      net of tax  |   |        | -      |   |              |   | -       |                                              |   |   | 8,802    |   |   |     | 4,033  |   |   |   | -       |          |   |   | - |   |   |   | 12,835 |   |   |   | 12,835 |   |
|                                                         |   |        |   |   |              |   |    |                                              |   |   |     |   |   |     |   |   |   |   |    |          |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance      – September 30, 2009                      |   | $           | 125    |   |              | $      | 100,111 |                                              |   | $      | (183,880 | )      |   | $        | 29,310 |   |   | $      | 183,113 |          |   | $ | (796 | ) |   | $ | 127,983 |   |   |   |   |   |
|                                                         |   |        |   |   |              |   |    |                                              |   |   |     |   |   |     |   |   |   |   |    |          |   |   |   |   |   |   |   |   |   |   |   |   |
|   Comprehensive      income                        |   |        |   |   |              |   |    |                                              |   |   |     |   |   |     |   |   |   |   |    |          |   |   |   |   |   |   |   |   |   | $ | 8,339 |   |

----

| ·   | Keystone      Steel & Wire (“KSW”), located in Peoria, Illinois, operates an      electric arc furnace mini-mill and manufactures and sells billets, wire      rod, coiled rebar, industrial wire and fabricated wire products to      agricultural, industrial, construction, commercial, original equipment      manufacturers and retail consumermarkets; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Engineered      Wire Products, Inc. (“EWP”), located in Upper Sandusky, Ohio, manufactures      and sells wire mesh in both roll and sheet form that is utilized in      concrete construction products including pipe, pre-cast boxes and      applications for use in roadways, buildings and bridges;    and |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ·   | Keystone-Calumet,      Inc. (“Calumet”), located in Chicago Heights, Illinois, manufactures and      sells merchant and special bar quality products and special sections in      carbon and alloy steel grades for use in agricultural, cold drawn,      construction, industrial chain, service centers and transportation      applications as well as in the production of a wide variety of products by      original equipment manufacturers. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                      |   | Three      months ended September 30, |    |   | Nine      months ended  September 30, |   |
|-----------------------------------------------------------|--------|--------------------------------------------|---------|--------|--------------------------------------------|--------|
|                                                      |   | 2008                                       |    |   | 2009                                       |   |   | 2008 |   |   | 2009 |   |
|                                                      |   | (In      thousands)                        |    |   | (In      thousands)                        |   |
|                                                      |   |                                       |    |   |                                       |   |   |   |   |   |   |   |
| Net      sales:                                           |   |                                       |    |   |                                       |   |   |   |   |   |   |   |
|   KSW                                           |   | $                                          | 179,591 |   |                                       | $      | 92,746 |   |   | $ | 483,760 |   |   | $ | 213,829 |   |
|   EWP                                           |   |                                       | 19,457  |   |                                       |   | 12,782 |   |   |   | 53,636 |   |   |   | 31,506 |   |
|   Calumet                                       |   |                                       | 4,927   |   |                                       |   | 2,841 |   |   |   | 13,632 |   |   |   | 7,197 |   |
|   Elimination      of intersegment sales   |   |                                       | (20,766 | )      |                                       |   | (8,006 | ) |   |   | (55,653 | ) |   |   | (21,183 | ) |
|                                                      |   |                                       |    |   |                                       |   |   |   |   |   |   |   |   |   |   |   |
|      Total      net sales        |   | $                                          | 183,209 |   |                                       | $      | 100,363 |   |   | $ | 495,375 |   |   | $ | 231,349 |   |
|                                                      |   |                                       |    |   |                                       |   |   |   |   |   |   |   |   |   |   |   |
| Operating      income (loss):                             |   |                                       |    |   |                                       |   |   |   |   |   |   |   |   |   |   |   |
|   KSW                                           |   | $                                          | 18,577  |   |                                       | $      | 8,629 |   |   | $ | 37,877 |   |   | $ | 7,944 |   |
|   EWP                                           |   |                                       | 3,372   |   |                                       |   | 887 |   |   |   | 8,038 |   |   |   | 801 |   |
|   Calumet                                       |   |                                       | (874    | )      |                                       |   | (187 | ) |   |   | (1,716 | ) |   |   | (3,378 | ) |
|   Pension      credit (expense)                 |   |                                       | 18,467  |   |                                       |   | (1,515 | ) |   |   | 55,401 |   |   |   | (4,543 | ) |
|   OPEB      credit                              |   |                                       | 2,006   |   |                                       |   | 1,042 |   |   |   | 6,542 |   |   |   | 3,562 |   |
|   Other(1)                                      |   |                                       | (2,495  | )      |                                       |   | 406 |   |   |   | (8,182 | ) |   |   | 669 |   |
|                                                      |   |                                       |    |   |                                       |   |   |   |   |   |   |   |   |   |   |   |
|      Total      operating income |   |                                       | 39,053  |   |                                       |   | 9,262 |   |   |   | 97,960 |   |   | $ | 5,055 |   |
|                                                      |   |                                       |    |   |                                       |   |   |   |   |   |   |   |   |   |   |   |
| Nonoperating      income (expense):                       |   |                                       |    |   |                                       |   |   |   |   |   |   |   |   |   |   |   |
|   Interest      expense                         |   |                                       | (879    | )      |                                       |   | (474 | ) |   |   | (3,124 | ) |   |   | (1,214 | ) |
|   Other      income, net                        |   |                                       | 306     |   |                                       |   | 42 |   |   |   | 604 |   |   |   | 144 |   |
|                                                      |   |                                       |    |   |                                       |   |   |   |   |   |   |   |   |   |   |   |
|   Income      before income taxes               |   | $                                          | 38,480  |   |                                       | $      | 8,830 |   |   | $ | 95,440 |   |   | $ | 3,985 |   |

----

|   |   | Increase (decrease) in LIFO      reserve          |   |
|--------|--------|---------------------------------------------------|--------|
|   |   | Three      months ended   September 30, |   |   | Nine      months ended September 30, |   |
|   |   | 2008                                              |   |   | 2009 |   |   | 2008 |   |   | 2009 |   |
|   |   | (In      thousands)                               |   |   | (In      thousands) |   |
|   |   |                                              |   |   |   |   |
| KSW    |   | $                                                 | (1,516 | ) |   | $ | (2,318 | ) |   | $ | 3,335 |   |   | $ | (9,055 | ) |
|   |   |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| EWP    |   |                                              | (123   | ) |   |   | (1,217 | ) |   |   | 1,171 |   |   |   | (4,434 | ) |
|   |   |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total  |   | $                                                 | (1,639 | ) |   | $ | (3,535 | ) |   | $ | 4,506 |   |   | $ | (13,489 | ) |

|                                           |   | December      31,   |    |   | September      30, |   |
|------------------------------------------------|--------|---------------------|---------|--------|--------------------|--------|
|                                           |   |  2008     |    |   | 2009               |   |
|                                           |   | (In      thousands) |    |
|                                           |   |                |    |   |               |   |
|   Raw      materials                 |   | $                   | 9,635   |   |               | $      | 5,601 |   |
|   Work      in process               |   |                | 6,657   |   |               |   | 6,093 |   |
|   Billets                            |   |                | 10,191  |   |               |   | 9,684 |   |
|   Wire      rod                      |   |                | 24,225  |   |               |   | 13,785 |   |
|   Other      finished products       |   |                | 33,646  |   |               |   | 22,020 |   |
|   Supplies                           |   |                | 20,938  |   |               |   | 21,830 |   |
|                                           |   |                |    |   |               |   |   |   |
|     Inventory      at FIFO |   |                | 105,292 |   |               |   | 79,013 |   |
|     Less      LIFO reserve |   |                | 34,434  |   |               |   | 20,945 |   |
|                                           |   |                |    |   |               |   |   |   |
|       Total      |   | $                   | 70,858  |   |               | $      | 58,068 |   |
|                                           |   |                |    |   |               |   |   |   |

----

|                                                 |   | December      31,   |   |   | September      30, |   |
|------------------------------------------------------|--------|---------------------|--------|--------|--------------------|--------|
|                                                 |   |  2008     |   |   | 2009               |   |
|                                                 |   | (In      thousands) |   |
|                                                 |   |                |   |   |               |   |
| Wachovia      revolving credit facility              |   | $                   | 3,264  |   |               | $      | 31,587 |   |
| 8%      Notes                                        |   |                | 9,108  |   |               |   | - |   |
| Term      loans:                                     |   |                |   |   |               |   |   |   |
|   Wachovia                                 |   |                | 10,953 |   |               |   | 6,953 |   |
|   County                                   |   |                | 7,441  |   |               |   | 6,882 |   |
| Other                                                |   |                | 864    |   |               |   | 892 |   |
|                                                 |   |                |   |   |               |   |   |   |
|     Total      debt              |   |                | 31,630 |   |               |   | 46,314 |   |
|     Less      current maturities |   |                | 18,848 |   |               |   | 39,726 |   |
|                                                 |   |                |   |   |               |   |   |   |
|     Total      long-term debt    |   | $                   | 12,782 |   |               | $      | 6,588 |   |

----

|                                                                                                      |   | Nine      months endedSeptember 30, 2009 |   |
|-----------------------------------------------------------------------------------------------------------|--------|------------------------------------------|--------|
|                                                                                                      |   | (In      thousands)                      |   |
|                                                                                                      |   |                                     |   |
| Balance      at December 31, 2008                                                                         |   | $                                        | 5,125  |   |
| Net      reduction in accrued environmental cost credited      to general and administrative expense |   |                                     | (3,978 | ) |
| Payments                                                                                                  |   |                                     | (307   | ) |
|                                                                                                      |   |                                     |   |   |
| Balance      at September 30, 2009                                                                        |   | $                                        | 840    |   |

----

----

|                                           |   | December      31,   |   |   | September      30, |   |
|------------------------------------------------|--------|---------------------|--------|--------|--------------------|--------|
|                                           |   |  2008          |   |   | 2009               |   |
|                                           |   | (In      thousands) |   |
| Current:                                       |   |                |   |   |               |   |
|   Employee      benefits             |   | $                   | 19,656 |   |               | $      | 9,301 |   |
|   Self      insurance                |   |                | 5,936  |   |               |   | 4,491 |   |
|   Environmental                      |   |                | 455    |   |               |   | 400 |   |
|   Other                              |   |                | 3,522  |   |               |   | 3,010 |   |
|                                           |   |                |   |   |               |   |   |   |
| Total                                          |   | $                   | 29,569 |   |               | $      | 17,202 |   |
|                                           |   |                |   |   |               |   |   |   |
| Noncurrent:                                    |   |                |   |   |               |   |   |   |
|   Workers      compensation payments |   | $                   | 1,621  |   |               | $      | 2,273 |   |
|   Environmental                      |   |                | 4,670  |   |               |   | 440 |   |
|   Other                              |   |                | 172    |   |               |   | 193 |   |
|                                           |   |                |   |   |               |   |   |   |
| Total                                          |   | $                   | 6,463  |   |               | $      | 2,906 |   |

----

|                                                              |   | Three      months ended  September 30, |    |   | Nine      months ended September 30, |   |
|-------------------------------------------------------------------|--------|---------------------------------------------|---------|--------|-------------------------------------------|--------|
|                                                              |   | 2008                                        |    |   | 2009                                      |   |   | 2008 |   |   | 2009 |   |
|                                                              |   | (In      thousands)                         |    |
|                                                              |   |                                        |    |   |                                      |   |   |   |   |   |   |   |   |   |   |   |
| Service      cost                                                 |   | $                                           | 860     |   |                                      | $      | 814 |   |   | $ | 2,582 |   |   | $ | 2,441 |   |
| Interest      cost                                                |   |                                        | 5,578   |   |                                      |   | 5,411 |   |   |   | 16,735 |   |   |   | 16,231 |   |
| Expected      return on plan assets                               |   |                                        | (22,518 | )      |                                      |   | (9,721 | ) |   |   | (67,553 | ) |   |   | (29,161 | ) |
| Amortization      of accumulated other comprehensive income: |   |                                        |    |   |                                      |   |   |   |   |   |   |   |   |   |   |   |
|     Prior      service cost                   |   |                                        | 308     |   |                                      |   | 308 |   |   |   | 922 |   |   |   | 924 |   |
|     Actuarial      losses (gains)             |   |                                        | (2,695  | )      |                                      |   | 4,703 |   |   |   | (8,087 | ) |   |   | 14,108 |   |
|                                                              |   |                                        |    |   |                                      |   |   |   |   |   |   |   |   |   |   |   |
| Total      expense (credit)                                       |   | $                                           | (18,467 | )      |                                      | $      | 1,515 |   |   | $ | (55,401 | ) |   | $ | 4,543 |   |

|                                                                         |   | Three      months ended September 30, |      |   | Nine      months ended September 30, |   |
|------------------------------------------------------------------------------|--------|--------------------------------------------|-----------|--------|-------------------------------------------|--------|
|                                                                         |   | 2008                                       |      |   | 2009                                      |   |   | 2008 |   |   | 2009 |   |
|                                                                         |   | (In      thousands)                        |      |
|                                                                         |   |                                       |      |   |                                      |   |   |   |   |   |   |   |   |   |   |   |
| Service      cost                                                            |   | $                                          | (31       | )      |                                      | $      | 19 |   |   | $ | 74 |   |   | $ | 67 |   |
| Interest      cost                                                           |   |                                       | 267       |   |                                      |   | 690 |   |   |   | 1,193 |   |   |   | 2,034 |   |
| Amortization      of accumulated other  comprehensive      income: |   |                                       |      |   |                                      |   |   |   |   |   |   |   |   |   |   |   |
|     Prior      service credit                            |   |                                       | (4,039    | )      |                                      |   | (4,040 | ) |   |   | (12,862 | ) |   |   | (12,128 | ) |
|     Actuarial      losses                                |   |                                       | 1,413     |   |                                      |   | 2,289 |   |   |   | 4,669 |   |   |   | 6,465 |   |
| Settlement      of 2006 1114 Agreement benefits                         |   |                                       |  384 |   |                                      |   | - |   |   |   |  384 |   |   |   | - |   |
| Total      credit                                                            |   | $                                          | (2,006    | )      |                                      | $      | (1,042 | ) |   | $ | (6,542 | ) |   | $ | (3,562 | ) |

----

|                                                |   | Nine      months ended |   |
|-----------------------------------------------------|--------|------------------------|--------|
|                                                |   | September 30,          |   |
|                                                |   | 2008                   |   |   | 2009 |   |
|                                                |   | (In      thousands)    |   |
|                                                |   |                   |   |
|                                                |   |                   |   |   |   |   |
| Expected      income tax expense, at statutory rate |   | $                      | 33,405 |   |   | $ | 1,395 |   |
| U.S.      state income tax expense, net             |   |                   | 2,441  |   |   |   | 74 |   |
| Other,      net                                     |   |                   | 90     |   |   |   | 22 |   |
|                                                |   |                   |   |   |   |   |   |   |
| Income      tax expense                             |   | $                      | 35,936 |   |   | $ | 1,491 |   |

|                                |   | December      31, 2008 |   |   | September      30, 2009 |   |
|-------------------------------------|--------|-----------------------------|--------|--------|------------------------------|--------|
|                                |   | Carrying amount        |   |   | Fairvalue                    |   |   | Carrying amount |   |   | Fairvalue |   |
|                                |   | (In      thousands)         |   |
|                                |   |                        |   |   |                         |   |   |   |   |   |   |   |
| Restricted      cash equivalents    |   | $                           | 2,277  |   |                         | $      | 2,277 |   |   | $ | 250 |   |   | $ | 250 |   |
| Accounts      receivable, net       |   |                        | 26,612 |   |                         |   | 26,612 |   |   |   | 50,681 |   |   |   | 50,681 |   |
| Accounts      payable               |   |                        | 7,776  |   |                         |   | 7,776 |   |   |   | 11,316 |   |   |   | 11,316 |   |
|                                |   |                        |   |   |                         |   |   |   |   |   |   |   |   |   |   |   |
| Long-term      debt:                |   |                        |   |   |                         |   |   |   |   |   |   |   |   |   |   |   |
|   Variable-rate      debt |   |                        | 14,217 |   |                         |   | 14,217 |   |   |   | 38,540 |   |   |   | 38,540 |   |
|   Fixed-rate      debt    |   |                        | 17,413 |   |                         |   | 14,161 |   |   |   | 7,774 |   |   |   | 7,117 |   |
|                                |   |                        |   |   |                         |   |   |   |   |   |   |   |   |   |   |   |

----

----

| ·   | Future      supply and demand for our products (including cyclicality      thereof), |
|--------------------|--------------------------------------------------------------------------------------|

| ·   | Customer      inventory levels, |
|--------------------|---------------------------------|

| ·   | Changes      in raw material and other operating costs (such as ferrous scrap and      energy), |
|--------------------|-------------------------------------------------------------------------------------------------|

| ·   | The      possibility of labor disruptions, |
|--------------------|--------------------------------------------|

| ·   | General      global economic and politicalconditions, |
|--------------------|-------------------------------------------------------|

| ·   | Competitive      products (including low-priced imports) and substitute      products, |
|--------------------|----------------------------------------------------------------------------------------|

| ·   | Customer      and competitor strategies, |
|--------------------|------------------------------------------|

| ·   | The      impact of pricing and productiondecisions, |
|--------------------|-----------------------------------------------------|

| ·   | Environmental      matters (such as those requiring emission and discharge limits for      existing and new facilities), |
|--------------------|--------------------------------------------------------------------------------------------------------------------------|

| ·   | Government      regulations and possible changesthereof, |
|--------------------|----------------------------------------------------------|

| ·   | Significant      increases in the cost of providing medical coverage to      employees, |
|--------------------|-----------------------------------------------------------------------------------------|

| ·   | The      ultimate resolution of pendinglitigation, |
|--------------------|----------------------------------------------------|

| ·   | International      trade policies of the United States and certain foreign      countries, |
|--------------------|--------------------------------------------------------------------------------------------|

| ·   | Operating      interruptions (including, but not limited to, labor disputes, fires,      explosions, unscheduled or unplanned downtime, supply disruptions and      transportation interruptions), |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Our      ability to renew or refinance creditfacilities, |
|--------------------|----------------------------------------------------------|

| ·   | The      ability of our customers to obtain adequate  credit, |
|--------------------|---------------------------------------------------------------|

| ·   | Any      possible future litigation, and |
|--------------------|------------------------------------------|

| ·   | Other      risks and uncertainties as discussed in this Quarterly Report and the 2008      Annual Report, including, without limitation, the section referenced      above. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

|                                                      |   | Three      months endedSeptember 30, |    |   | Nine      months ended September      30, |   |
|-----------------------------------------------------------|--------|--------------------------------------|---------|--------|------------------------------------------------|--------|
|                                                      |   | 2008                                 |    |   | 2009                                           |   |   | 2008 |   |   | 2009 |   |
|                                                      |   | (In      thousands)                  |    |
|                                                      |   |                                 |    |   |                                           |   |   |   |   |   |   |   |
| Operating      income as reported                         |   | $                                    | 39,053  |   |                                           | $      | 9,262 |   |   | $ | 97,960 |   |   | $ | 5,055 |   |
|   Defined      benefit pension expense (credit) |   |                                 | (18,467 | )      |                                           |   | 1,515 |   |   |   | (55,401 | ) |   |   | 4,543 |   |
|   OPEB      credit                              |   |                                 | (2,006  | )      |                                           |   | (1,042 | ) |   |   | (6,542 | ) |   |   | (3,562 | ) |
| Operating      income before pension and OPEB             |   | $                                    | 18,580  |   |                                           | $      | 9,735 |   |   | $ | 36,017 |   |   | $ | 6,036 |   |

| ·   | lower      shipment volumes as discussedabove; |
|--------------------|------------------------------------------------|

| ·   | lower      selling prices as discussed above; |
|--------------------|-----------------------------------------------|

| ·   | reduced      production volumes as discussed above, which resulted in a higher      percentage of fixed costs included in cost of goods  sold; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | increased      variable costs of production due to frequent mill changes as customers are      managing their inventory by ordering much smaller quantities of our many      different products as discussedabove; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | increased      bad debt expense during the third quarter and first nine months of 2009 of      $.7 million and $3.2 million, respectively, primarily due to the Chapter      11 proceedings of one of ourcustomers; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | decreased      cost of ferrous scrap; |
|--------------------|---------------------------------------|

| ·   | decreased      cost of electricity and naturalgas; |
|--------------------|----------------------------------------------------|

| ·   | decreased      employee incentive compensation accruals during 2009 resulting from lower      profitability; and |
|--------------------|------------------------------------------------------------------------------------------------------------------|

| ·   | decreases      in our LIFO reserve and cost of goods sold during the third quarter and      first nine months of 2009 of $3.5 million and $13.5 million, respectively      as compared to only a $1.6 million decrease in our LIFO reserve and cost      of goods sold during the third quarter of 2008 and a $4.5 million increase      in our LIFO reserve and cost of goods sold during the first nine months of      2008 as discussed in Note 2 to our Condensed Consolidated Financial      Statements. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | increased      variable costs of production as idle production facilities were difficult      to re-start given cold winter temperatures during the first quarter of      2009; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | a      $1.5 million impairment charge to reduce certain inventories to net      realizable value during the first quarter of  2009; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------|

| ·   | decreased      workers compensation accruals; and |
|--------------------|---------------------------------------------------|

| ·   | a      $4.2 million credit to general and administrative expense during the      second quarter of 2009 related to the release of accrued environmental      costs for certain inactive waste management units as discussed      above. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                      |   | Three      months ended September 30,  |   |   | Nine      months ended September 30, |   |
|-------------------------------------------|--------|--------------------------------------------------|--------|--------|-------------------------------------------|--------|
|                                      |   | 2008                                             |   |   | 2009                                      |   |   | 2008 |   |   | 2009 |   |
|                                      |   |                                             |   |   |                                      |   |   |   |   |   |   |   |
| Sales      volume (000 tons):             |   |                                             |   |   |                                      |   |   |   |   |   |   |   |
|   Fabricated      wire products |   |                                             | 20     |   |                                      |   | 14 |   |   |   | 76 |   |   |   | 54 |   |
|   Industrial      wire          |   |                                             | 17     |   |                                      |   | 9 |   |   |   | 53 |   |   |   | 25 |   |
|   Coiled      rebar             |   |                                             | 7      |   |                                      |   | 2 |   |   |   | 14 |   |   |   | 4 |   |
|   Wire      rod                 |   |                                             | 95     |   |                                      |   | 100 |   |   |   | 310 |   |   |   | 158 |   |
|   Billets                       |   |                                             | 8      |   |                                      |   | 2 |   |   |   | 9 |   |   |   | 4 |   |
|   Wire      mesh                |   |                                             | 14     |   |                                      |   | 15 |   |   |   | 47 |   |   |   | 34 |   |
|   Bar                           |   |                                             | 4      |   |                                      |   | 4 |   |   |   | 14 |   |   |   | 9 |   |
|     Total             |   |                                             | 165    |   |                                      |   | 146 |   |   |   | 523 |   |   |   | 288 |   |
|                                      |   |                                             |   |   |                                      |   |   |   |   |   |   |   |   |   |   |   |
|                                      |   |                                             |   |   |                                      |   |   |   |   |   |   |   |   |   |   |   |
| Average      per-ton selling prices:      |   |                                             |   |   |                                      |   |   |   |   |   |   |   |   |   |   |   |
|   Fabricated      wire products |   | $                                                | 1,578  |   |                                      | $      | 1,344 |   |   | $ | 1,356 |   |   | $ | 1,393 |   |
|   Industrial      wire          |   |                                             | 1,302  |   |                                      |   | 827 |   |   |   | 1,083 |   |   |   | 914 |   |
|   Coiled      rebar             |   |                                             | 921    |   |                                      |   | 541 |   |   |   | 844 |   |   |   | 543 |   |
|   Wire      rod                 |   |                                             | 965    |   |                                      |   | 564 |   |   |   | 795 |   |   |   | 574 |   |
|   Billets                       |   |                                             | 852    |   |                                      |   | 203 |   |   |   | 793 |   |   |   | 193 |   |
|   Wire      mesh                |   |                                             | 1,348  |   |                                      |   | 874 |   |   |   | 1,151 |   |   |   | 928 |   |
|   Bar                           |   |                                             | 1,147  |   |                                      |   | 772 |   |   |   | 933 |   |   |   | 796 |   |
|   All      products             |   |                                             | 1,106  |   |                                      |   | 686 |   |   |   | 943 |   |   |   | 801 |   |

| ·   | Keystone      Steel & Wire (“KSW”), located in Peoria, Illinois, operates an      electric arc furnace mini-mill and manufactures and sells billets, wire      rod, coiled rebar, industrial wire and fabricated wire products to      agricultural, industrial, construction, commercial, original equipment      manufacturers and retail consumermarkets; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Engineered      Wire Products, Inc. (“EWP”), located in Upper Sandusky, Ohio, manufactures      and sells wire mesh in both roll and sheet form that is utilized in      concrete construction products including pipe, pre-cast boxes and      applications for use in roadways, buildings and bridges;    and |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Keystone-Calumet,      Inc. (“Calumet”), located in Chicago Heights, Illinois, manufactures and      sells merchant and special bar quality products and special sections in      carbon and alloy steel grades for use in agricultural, cold drawn,      construction, industrial chain, service centers and transportation      applications as well as in the production of a wide variety of products by      original equipment manufacturers. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                             |   | KSW                 |     |   | EWP    |   |    | Calumet |   |   | Other(1)   |   |   | Total  |    |
|------------------------------------------------------------------|--------|---------------------|----------|--------|--------|--------|---------|---------|--------|--------|------------|--------|--------|--------|---------|
|                                                             |   | (In      thousands) |     |
| Three      months ended September 30, 2008:                      |   |
|                                                             |   |                |     |   |   |   |    |    |   |   |       |   |   |   |    |
|  Net      sales                                             |   | $                   | 179,591  |   |   | $      | 19,457  |    |   | $      | 4,927      |   |   | $      | (20,766 | ) |   | $ | 183,209 |   |
|  Cost      of goods sold                                    |   |                | (155,877 | )      |   |   | (14,902 | )       |   |   | (5,363     | )      |   |   | 19,275  |   |   |   | (156,867 | ) |
|    Gross      margin (loss)                       |   |                | 23,714   |   |   |   | 4,555   |    |   |   | (436       | )      |   |   | (1,491  | ) |   |   | 26,342 |   |
|                                                             |   |                |     |   |   |   |    |    |   |   |       |   |   |   |    |   |   |   |   |   |
|  Selling      and  administrative expense         |   |                | (5,137   | )      |   |   | (1,183  | )       |   |   |  (438 | )      |   |   | (1,004  | ) |   |   | (7,762 | ) |
|  Operating      income (loss) before      pension/OPEB |   | $                   | 18,577   |   |   | $      | 3,372   |    |   | $      | (874       | )      |   | $      | (2,495  | ) |   | $ | 18,580 |   |
|                                                             |   |                |     |   |   |   |    |    |   |   |       |   |   |   |    |   |   |   |   |   |
| Three      months ended September 30, 2009:                      |   |
|                                                             |   |
|  Net      sales                                             |   | $                   | 92,746   |   |   | $      | 12,782  |    |   | $      | 2,841      |   |   | $      | (8,006  | ) |   | $ | 100,363 |   |
|  Cost      of goods sold                                    |   |                | (80,143  | )      |   |   | (11,287 | )       |   |   | (2,861     | )      |   |   | 8,839   |   |   |   | (85,452 | ) |
|    Gross      margin (loss)                       |   |                | 12,603   |   |   |   | 1,495   |    |   |   | (20        | )      |   |   | 833     |   |   |   | 14,911 |   |
|                                                             |   |                |     |   |   |   |    |    |   |   |       |   |   |   |    |   |   |   |   |   |
|  Selling      and administrative      expense          |   |                | (3,974   | )      |   |   | (608    | )       |   |   | (167       | )      |   |   | (427    | ) |   |   | (5,176 | ) |
|  Operating      income (loss) before      pension/OPEB |   | $                   | 8,629    |   |   | $      | 887     |    |   | $      | (187       | )      |   | $      | 406     |   |   | $ | 9,735 |   |

| Nine      months ended September 30, 2008:                       |   |
|------------------------------------------------------------------|--------|
|                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Net      sales                                             |   | $ | 483,760 |   |   | $ | 53,636 |   |   | $ | 13,632 |   |   | $ | (55,653 | ) |   | $ | 495,375 |   |
|  Cost      of goods sold                                    |   |   | (433,400 | ) |   |   | (42,433 | ) |   |   | (14,477 | ) |   |   | 50,140 |   |   |   | (440,170 | ) |
|    Gross      margin (loss)                       |   |   | 50,360 |   |   |   | 11,203 |   |   |   | (845 | ) |   |   | (5,513 | ) |   |   | 55,205 |   |
|                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Selling      and  administrative expense         |   |   | (12,483 | ) |   |   | (3,165 | ) |   |   | (871 | ) |   |   | (2,669 | ) |   |   | (19,188 | ) |
|  Operating      income (loss) before      pension/OPEB |   | $ | 37,877 |   |   | $ | 8,038 |   |   | $ | (1,716 | ) |   | $ | (8,182 | ) |   | $ | 36,017 |   |
|                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Nine      months ended September 30, 2009:                       |   |
|                                                             |   |
|  Net      sales                                             |   | $ | 213,829 |   |   | $ | 31,506 |   |   | $ | 7,197 |   |   | $ | (21,183 | ) |   | $ | 231,349 |   |
|  Cost      of goods sold                                    |   |   | (197,668 | ) |   |   | (28,696 | ) |   |   | (10,191 | ) |   |   | 23,557 |   |   |   | (212,998 | ) |
|    Gross      margin (loss)                       |   |   | 16,161 |   |   |   | 2,810 |   |   |   | (2,994 | ) |   |   | 2,374 |   |   |   | 18,351 |   |
|                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Selling      and administrative      expense          |   |   | (8,217 | ) |   |   | (2,009 | ) |   |   | (384 | ) |   |   | (1,705 | ) |   |   | (12,315 | ) |
|  Operating      income (loss) before      pension/OPEB |   | $ | 7,944 |   |   | $ | 801 |   |   | $ | (3,378 | ) |   | $ | 669 |   |   | $ | 6,036 |   |

----

|                                      |   |  Three months ended September      30, |     |
|-------------------------------------------|--------|---------------------------------------------|----------|
|                                      |   | 2008                                        |     |   | %      ofsales |   |   | 2009 |   |   | %      ofsales |   |
|                                      |   | ($      in thousands)                       |     |
|                                      |   |                                        |     |   |   |   |   |   |   |   |   |   |
| Net      sales                            |   | $                                           | 179,591  |   |   |   | 100.0 | % |   | $ | 92,746 |   |   |   | 100.0 | % |
| Cost      of goods sold                   |   |                                        | (155,877 | ) |   |   | (86.8 | ) |   |   | (80,143 | ) |   |   | (86.4 | ) |
|    Gross      margin       |   |                                        | 23,714   |   |   |   | 13.2 |   |   |   | 12,603 |   |   |   | 13.6 |   |
|                                      |   |                                        |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Selling      and administrative expense   |   |                                        | (5,137   | ) |   |   | (2.9 | ) |   |   | (3,974 | ) |   |   | (4.3 | ) |
| Operating      income before pension/OPEB |   | $                                           | 18,577   |   |   |   | 10.3 | % |   | $ | 8,629 |   |   |   | 9.3 | % |

|                                      |   |  Nine months ended September      30, |     |
|-------------------------------------------|--------|--------------------------------------------|----------|
|                                      |   | 2008                                       |     |   | %      ofsales |   |   | 2009 |   |   | %      ofsales |   |
|                                      |   | ($      in thousands)                      |     |
|                                      |   |                                       |     |   |   |   |   |   |   |   |   |   |
| Net      sales                            |   | $                                          | 483,760  |   |   |   | 100.0 | % |   | $ | 213,829 |   |   |   | 100.0 | % |
| Cost      of goods sold                   |   |                                       | (433,400 | ) |   |   | (89.6 | ) |   |   | (197,668 | ) |   |   | (92.4 | ) |
|    Gross      margin       |   |                                       | 50,360   |   |   |   | 10.4 |   |   |   | 16,161 |   |   |   | 7.6 |   |
|                                      |   |                                       |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Selling      and administrative expense   |   |                                       | (12,483  | ) |   |   | (2.6 | ) |   |   | (8,217 | ) |   |   | (3.9 | ) |
| Operating      income before pension/OPEB |   | $                                          | 37,877   |   |   |   | 7.8 | % |   | $ | 7,944 |   |   |   | 3.7 | % |

----

|                                                      |   | Three      months ended  September 30,  |    |   | Nine      months ended  September 30, |   |
|-----------------------------------------------------------|--------|---------------------------------------------------|---------|--------|--------------------------------------------|--------|
|                                                      |   | 2008                                              |    |   | 2009                                       |   |   | 2008 |   |   | 2009 |   |
|                                                      |   |                                              |    |   |                                       |   |   |   |   |   |   |   |
| Sales      volume (000 tons):                             |   |                                              |    |   |                                       |   |   |   |   |   |   |   |
|   Fabricated      wire products                 |   |                                              | 20      |   |                                       |   | 14 |   |   |   | 76 |   |   |   | 54 |   |
|   Industrial      wire                          |   |                                              | 17      |   |                                       |   | 9 |   |   |   | 53 |   |   |   | 25 |   |
|   Coiled      rebar                             |   |                                              | 7       |   |                                       |   | 2 |   |   |   | 14 |   |   |   | 4 |   |
|   Wire      rod                                 |   |                                              | 112     |   |                                       |   | 113 |   |   |   | 366 |   |   |   | 190 |   |
|   Billets                                       |   |                                              | 14      |   |                                       |   | 5 |   |   |   | 28 |   |   |   | 8 |   |
|   Total                                         |   |                                              | 170     |   |                                       |   | 143 |   |   |   | 537 |   |   |   | 281 |   |
|                                                      |   |                                              |    |   |                                       |   |   |   |   |   |   |   |   |   |   |   |
| Average      per-ton selling prices:                      |   |                                              |    |   |                                       |   |   |   |   |   |   |   |   |   |   |   |
|   Fabricated      wire products                 |   | $                                                 | 1,578   |   |                                       | $      | 1,344 |   |   | $ | 1,356 |   |   | $ | 1,393 |   |
|   Industrial      wire                          |   |                                              | 1,302   |   |                                       |   | 827 |   |   |   | 1,083 |   |   |   | 914 |   |
|   Coiled      rebar                             |   |                                              | 921     |   |                                       |   | 541 |   |   |   | 844 |   |   |   | 543 |   |
|   Wire      rod                                 |   |                                              | 963     |   |                                       |   | 561 |   |   |   | 796 |   |   |   | 575 |   |
|   Billets                                       |   |                                              | 778     |   |                                       |   | 328 |   |   |   | 674 |   |   |   | 368 |   |
|   All      products                             |   |                                              | 1,053   |   |                                       |   | 647 |   |   |   | 898 |   |   |   | 756 |   |
|                                                      |   |                                              |    |   |                                       |   |   |   |   |   |   |   |   |   |   |   |
| Average      per-ton ferrous scrap      cost         |   | $                                                 | 449     |   |                                       | $      | 254 |   |   | $ | 361 |   |   | $ | 269 |   |
|                                                      |   |                                              |    |   |                                       |   |   |   |   |   |   |   |   |   |   |   |
| Average      electricity cost      per kilowatt hour |   | $                                                 | 0.06    |   |                                       | $      | 0.03 |   |   | $ | 0.06 |   |   | $ | 0.03 |   |
|                                                      |   |                                              |    |   |                                       |   |   |   |   |   |   |   |   |   |   |   |
| Kilowatt      hours consumed (000 hrs)                    |   |                                              | 141,109 |   |                                       |   | 122,148 |   |   |   | 418,840 |   |   |   | 253,896 |   |
|                                                      |   |                                              |    |   |                                       |   |   |   |   |   |   |   |   |   |   |   |
| Average      natural gas cost      per therm         |   | $                                                 | 1.04    |   |                                       | $      | 0.38 |   |   | $ | 1.00 |   |   | $ | 0.52 |   |
|                                                      |   |                                              |    |   |                                       |   |   |   |   |   |   |   |   |   |   |   |
| Natural      gas therms consumed (000      therms)   |   |                                              | 4,456   |   |                                       |   | 3,766 |   |   |   | 16,272 |   |   |   | 10,431 |   |

| ·   | reduced      production volumes as discussed above, which resulted in a higher      percentage of fixed costs included in cost of goods  sold; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | increased      variable costs of production due to frequent mill changes as customers are      managing their inventory by ordering much smaller quantities of our many      different product lines as discussedabove; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | increased      bad debt expense during the third quarter and first nine months of 2009 of      $.7 million and $3.2 million, respectively, primarily due to the Chapter      11 proceedings of one of KSW’scustomers; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | decreased      employee incentive compensation accruals during 2009 as discussed above;      and |
|--------------------|--------------------------------------------------------------------------------------------------|

| ·   | decreases      in KSW’s LIFO reserve and cost of goods sold during 2009 as discussed in      Note 2 to our Condensed Consolidated Financial  Statements. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ·   | increased      variable costs of production as idle production facilities were difficult      to re-start given cold winter temperatures during the first quarter of      2009; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | decreased      workers compensation accruals; and |
|--------------------|---------------------------------------------------|

| ·   | a      $4.2 million credit related to the release of accrued environmental costs      during the second quarter of 2009 as discussed  above. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------|

|                                      |   | Three months ended September      30, |    |
|-------------------------------------------|--------|---------------------------------------|---------|
|                                      |   | 2008                                  |    |   | %      of sales |   |   | 2009 |   |   | %      ofsales |   |
|                                      |   | ($      in thousands)                 |    |
|                                      |   |                                  |    |   |   |   |   |   |   |   |   |   |
| Net      sales                            |   | $                                     | 19,457  |   |   |   | 100.0 | % |   | $ | 12,782 |   |   |   | 100.0 | % |
| Cost      of goods sold                   |   |                                  | (14,902 | ) |   |   | (76.6 | ) |   |   | (11,287 | ) |   |   | (88.3 | ) |
|         Gross margin            |   |                                  | 4,555   |   |   |   | 23.4 |   |   |   | 1,495 |   |   |   | 11.7 |   |
|                                      |   |                                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Selling      and administrative expense   |   |                                  | (1,183  | ) |   |   | (6.1 | ) |   |   | (608 | ) |   |   | (4.8 | ) |
| Operating      income before pension/OPEB |   | $                                     | 3,372   |   |   |   | 17.3 | % |   | $ | 887 |   |   |   | 6.9 | % |

|                                      |   | Nine months ended September    30, |    |
|-------------------------------------------|--------|------------------------------------|---------|
|                                      |   | 2008                               |    |   | %      of sales |   |   | 2009 |   |   | %      ofSales |   |
|                                      |   | ($      in thousands)              |    |
|                                      |   |                               |    |   |   |   |   |   |   |   |   |   |
| Net      sales                            |   | $                                  | 53,636  |   |   |   | 100.0 | % |   | $ | 31,506 |   |   |   | 100.0 | % |
| Cost      of goods sold                   |   |                               | (42,433 | ) |   |   | (79.1 | ) |   |   | (28,696 | ) |   |   | (91.1 | ) |
|         Gross margin            |   |                               | 11,203  |   |   |   | 20.9 |   |   |   | 2,810 |   |   |   | 8.9 |   |
|                                      |   |                               |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Selling      and administrative expense   |   |                               | (3,165  | ) |   |   | (5.9 | ) |   |   | (2,009 | ) |   |   | (6.4 | ) |
| Operating      income before pension/OPEB |   | $                                  | 8,038   |   |   |   | 15.0 | % |   | $ | 801 |   |   |   | 2.5 | % |

|                                                             |   | Three      months ended  September 30,   |   |   | Nine      months ended September 30,  |   |
|------------------------------------------------------------------|--------|---------------------------------------------------------|--------|--------|-------------------------------------------------|--------|
|                                                             |   | 2008                                                    |   |   | 2009                                            |   |   | 2008 |   |   | 2009 |   |
|                                                             |   |                                                    |   |   |                                            |   |   |   |   |   |   |   |
| Sales      volume (000 tons) –  Wire      mesh   |   |                                                    | 14     |   |                                            |   | 15 |   |   |   | 47 |   |   |   | 34 |   |
|                                                             |   |                                                    |   |   |                                            |   |   |   |   |   |   |   |   |   |   |   |
| Average      per-ton selling prices –  Wire mesh |   | $                                                       | 1,348  |   |                                            | $      | 874 |   |   | $ | 1,151 |   |   | $ | 928 |   |
|                                                             |   |                                                    |   |   |                                            |   |   |   |   |   |   |   |   |   |   |   |
| Average      per-ton wire rod cost                               |   | $                                                       | 824    |   |                                            | $      | 660 |   |   | $ | 690 |   |   | $ | 748 |   |

----

| ·   | increased      variable costs of production due to frequent mill changes as customers are      managing their inventory by ordering much smaller quantities of our      different products as discussedabove; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | significantly      higher percentage of fixed costs included in cost of goods sold during the      first quarter of 2009 due to substantially reduced production volumes as      discussed above; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | decreased      employee incentive compensation accruals during 2009 resulting from lower      profitability; and |
|--------------------|------------------------------------------------------------------------------------------------------------------|

| ·   | decreases      in EWP’s LIFO reserve and cost of goods sold during 2009 as discussed in      Note 2 to our Condensed Consolidated Financial  Statements. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                    |   | Three months ended September      30, |       |
|-----------------------------------------|--------|---------------------------------------|------------|
|                                    |   | 2008                                  |       |   | %      of sales |   |   | 2009 |   |   | %      ofsales |   |
|                                    |   | ($      in thousands)                 |       |
|                                    |   |                                  |       |   |   |   |   |   |   |   |   |   |
| Net      sales                          |   | $                                     | 4,927      |   |   |   | 100.0 | % |   | $ | 2,841 |   |   |   | 100.0 | % |
| Cost      of goods sold                 |   |                                  | (5,363     | ) |   |   | (108.8 | ) |   |   | (2,861 | ) |   |   | (100.7 | ) |
|   Gross      margin (loss)    |   |                                  | (436       | ) |   |   | (8.8 | ) |   |   | (20 | ) |   |   | (0.7 | ) |
|                                    |   |                                  |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Selling      and administrative expense |   |                                  |  (438 | ) |   |   | (8.9 | ) |   |   | (167 | ) |   |   | (5.9 | ) |
| Operating      loss before pension/OPEB |   | $                                     | (874       | ) |   |   | (17.7 | )% |   | $ | (187 | ) |   |   | (6.6 | ) |

|                                    |   | Nine months ended September    30, |    |
|-----------------------------------------|--------|------------------------------------|---------|
|                                    |   | 2008                               |    |   | %      of sales |   |   | 2009 |   |   | %      ofsales |   |
|                                    |   | ($      in thousands)              |    |
|                                    |   |                               |    |   |   |   |   |   |   |   |   |   |
| Net      sales                          |   | $                                  | 13,632  |   |   |   | 100.0 | % |   | $ | 7,197 |   |   |   | 100.0 | % |
| Cost      of goods sold                 |   |                               | (14,477 | ) |   |   | (106.2 | ) |   |   | (10,191 | ) |   |   | (141.6 | ) |
|   Gross      margin (loss)    |   |                               | (845    | ) |   |   | (6.2 | ) |   |   | (2,994 | ) |   |   | (41.6 | ) |
|                                    |   |                               |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Selling      and administrative expense |   |                               | (871    | ) |   |   | (6.4 | ) |   |   | (384 | ) |   |   | (5.3 | ) |
| Operating      loss before pension/OPEB |   | $                                  | (1,716  | ) |   |   | (12.6 | )% |   | $ | (3,378 | ) |   |   | (46.9 | ) |

|                                           |   | Three      months endedSeptember 30, |   |   | Nine      months endedSeptember 30, |   |
|------------------------------------------------|--------|--------------------------------------|--------|--------|-------------------------------------|--------|
|                                           |   | 2008                                 |   |   | 2009                                |   |   | 2008 |   |   | 2009 |   |
|                                           |   |                                 |   |   |                                |   |   |   |   |   |   |   |
| Sales      volume (000 tons) - Bar        |   |                                 | 4      |   |                                |   | 4 |   |   |   | 14 |   |   |   | 9 |   |
|                                           |   |                                 |   |   |                                |   |   |   |   |   |   |   |   |   |   |   |
| Average      per-ton selling prices - Bar |   | $                                    | 1,147  |   |                                | $      | 772 |   |   | $ | 933 |   |   | $ | 796 |   |
|                                           |   |                                 |   |   |                                |   |   |   |   |   |   |   |   |   |   |   |
| Average      per-ton billet cost               |   | $                                    | 521    |   |                                | $      | 403 |   |   | $ | 544 |   |   | $ | 454 |   |

----

| ·   | reduced      production volumes as discussed above, which resulted in a higher      percentage of fixed costs included in cost of goods  sold; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | increased      variable costs of production due to frequent mill changes as customers are      managing their inventory by ordering much smaller quantities of Calumet’s      many different product lines; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | decreased      cost of electricity and natural gas;and |
|--------------------|--------------------------------------------------------|

| ·   | decreased      employee incentive compensation accruals during  2009. |
|--------------------|-----------------------------------------------------------------------|

| ·   | a      $1.5 million impairment charge during the first quarter of 2009 as Calumet      determined it was probable it would not be able to recover the cost of      certain inventory items (those produced when scrap prices were      substantially higher) in future selling prices;  and |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | increased      variable costs of production as idle production facilities were difficult      to re-start given cold winter temperatures during the first quarter of      2009. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                 |   | Three      months endedSeptember 30, |   |   | Nine      months ended September 30, |   |
|--------------------------------------|--------|--------------------------------------|--------|--------|-------------------------------------------|--------|
|                                 |   | 2008                                 |   |   | 2009                                      |   |   | 2008 |   |   | 2009 |   |
|                                 |   | ($      in thousands)                |   |
|                                 |   |                                 |   |   |                                      |   |   |   |   |   |   |   |
| Interest      expense                |   | $                                    | 879    |   |                                      | $      | 474 |   |   | $ | 3,124 |   |   | $ | 1,214 |   |
|                                 |   |                                 |   |   |                                      |   |   |   |   |   |   |   |   |   |   |   |
| Average      debt balance            |   | $                                    | 66,928 |   |                                      | $      | 42,810 |   |   | $ | 77,146 |   |   | $ | 35,405 |   |
|                                 |   |                                 |   |   |                                      |   |   |   |   |   |   |   |   |   |   |   |
| Weighted      average interest rates |   |                                 | 4.6    | %      |                                      |   | 4.0 | % |   |   | 5.0 | % |   |   | 3.9 | % |

----

| ·   | lower      operating income before pension/OPEB during the first nine months of 2009      of $30.0 million; |
|--------------------|-------------------------------------------------------------------------------------------------------------|

| ·   | lower      OPEB payments during 2009 of $1.0million; |
|--------------------|------------------------------------------------------|

| ·   | higher      net cash provided by relative changes in our inventory in 2009 of $31.9      million due to lower scrap and utility costs as well as a significant      reduction in inventory levels during 2009 as we adjusted production and      inventory strategies based on changes in customer order patterns during      the first nine months of 2009; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | higher      net cash used as a result of relative changes in our accrued liabilities      of $26.5 million in 2009 primarily as a result of 2008 employee incentive      compensation paid in the first quarter of 2009 which was significantly      higher than 2007 employee incentive compensation paid in the first quarter      of 2008; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | lower      interest payments during 2009 of $1.9 million;  and |
|--------------------|----------------------------------------------------------------|

| ·   | lower      tax payments during 2009 of $2.0million. |
|--------------------|-----------------------------------------------------|

| ·   | decreased      profitability during 2009; |
|--------------------|-------------------------------------------|

| ·   | the      payment of 2008’s employee incentive compensation during the first quarter      of 2009 totaling $8.7 million as discussed above;  and |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the      $25 million proceeds from our subscription rights offering during the      first quarter of 2008, which were used to reduce our indebtedness under      our revolving credit facility. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                  |   | December      31,   |   |   | September      30, |   |
|-------------------------------------------------------|--------|---------------------|--------|--------|--------------------|--------|
|                                                  |   | 2008                |   |   | 2009               |   |
|                                                  |   | (In      thousands) |   |
|                                                  |   |                |   |   |               |   |
| Working      capital                                  |   | $                   | 55,886 |   |               | $      | 58,406 |   |
| Outstanding      balance of revolving credit facility |   |                | 3,264  |   |               |   | 31,587 |   |
|                                                  |   |                |   |   |               |   |   |   |
| Additional      borrowing availability                |   |                | 46,500 |   |               |   | 22,527 |   |

----

----

|   | · | pertain      to the maintenance of records that in reasonable detail accurately and      fairly reflect our transactions and dispositions of our      assets, |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | provide      reasonable assurance that transactions are recorded as necessary to permit      preparation of financial statements in accordance with GAAP, and that our      receipts and expenditures are made only in accordance with authorizations      of our management and directors,and |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | provide      reasonable assurance regarding prevention or timely detection of      unauthorized acquisition, use or disposition of our assets that could have      a material effect on our Condensed Consolidated Financial      Statements. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (a) | We      have retained a signed original of any exhibit listed below that contains      signatures, and we will provide any such exhibit to the Commission or its      staff upon request.  The following exhibit is included      herein: |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4.1 | Amendment      No. 3 to Loan and Security Agreement dated as of October 2, 2009 by and      between the Registrant and Wachovia Capital Finance Corporation      (Central).  (Incorporated by reference to Exhibit 4.1 to the      Registrant’s Report on Form 8-K dated October 2,  2009). |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 31.1 | Certification. |
|--------|------|----------------|

|   | 31.2 | Certification. |
|--------|------|----------------|

|   | 32.1 | Certification. |
|--------|------|----------------|

----

| Date:  November      5, 2009  | By/s/ Bert E. Downing,      Jr.                                                               Bert      E. Downing, Jr.Vice      President, Chief Financial Officer,Corporate      Controller and Treasurer |
|----------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----