##### Table of Contents









SECURITIES AND EXCHANGE COMMISSION


Washington, D.C. 20549


Form 10-K


ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)


OF THE SECURITIES EXCHANGE ACT OF 1934


For the Fiscal Year Ended December 31, 2004


Commission File Number 1-8485


Milacron Inc.








|                         |  |                      
|------------------------ |  | ---------------------
|Incorporated in Delaware |  | I.R.S. No. 31-1062125




Securities Registered Pursuant to Section 12(b) of the
Act:


|                               |  |                                           
|------------------------------ |  | ------------------------------------------
|Title of Each Class:           |  | Name of Each Exchange on Which Registered:
|Common Shares  Par Value $.01 |  | New York Stock Exchange, Inc.             

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DOCUMENTS INCORPORATED BY REFERENCE: None










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MILACRON INC.


2004 FORM 10-K


TABLE OF CONTENTS


|         |  |                                                                                                                          |  |      |     | 
|-------- |  | ------------------------------------------------------------------------------------------------------------------------ |  | ---- | --- | 
|         |  |                                                                                                                          |  | Page |    
|         |  |                                                                                                                          |  |      |    
|PART I  
|Item 1.  |  | Business                                                                                                                 |  |      | 2   | 
|         |  | Executive Officers of the Registrant                                                                                     |  |      | 10  | 
|Item 2.  |  | Properties                                                                                                               |  |      | 11  | 
|Item 3.  |  | Legal Proceedings                                                                                                        |  |      | 11  | 
|Item 4.  |  | Submission of Matters to a Vote of Security
    Holders                                                                  |  |      | 12  | 
|         |  |                                                                                                                          |  |      |     | 
|PART II 
|Item 5.  |  | Market for the Registrants Common
    Equity, Related Stockholder Matters and Issuer Purchases of
    Equity Securities |  |      | 12  | 
|Item 6.  |  | Selected Financial Data                                                                                                  |  |      | 13  | 
|Item 7.  |  | Managements Discussion and Analysis
    of Financial Condition and Results of Operations                                |  |      | 14  | 
|Item 7A. |  | Quantitative and Qualitative Disclosures
    About Market Risk                                                           |  |      | 42  | 
|Item 8.  |  | Financial Statements and Supplementary
    Data                                                                          |  |      | 42  | 
|Item 9.  |  | Changes in and Disagreements with
    Accountants on Accounting and Financial Disclosure                                 |  |      | 107 | 
|Item 9A. |  | Controls and Procedures                                                                                                  |  |      | 107 | 
|Item 9B. |  | Other Information                                                                                                        |  |      | 109 | 
|         |  |                                                                                                                          |  |      |     | 
|PART III
|Item 10. |  | Directors and Executive Officers of the
    Registrant                                                                   |  |      | 109 | 
|Item 11. |  | Executive Compensation                                                                                                   |  |      | 113 | 
|Item 12. |  | Security Ownership of Certain Beneficial
    Owners and Management and Related Stockholder Matters                       |  |      | 118 | 
|Item 13. |  | Certain Relationships and Related
    Transactions                                                                       |  |      | 123 | 
|Item 14. |  | Principal Accountant Fees and Services                                                                                   |  |      | 124 | 
|         |  |                                                                                                                          |  |      |     | 
|PART IV 
|Item 15. |  | Exhibits and Financial Statement
    Schedules                                                                           |  |      | 125 | 
|         |  | Schedule II   Valuation and
    Qualifying Accounts and Reserves                                                        |  |      | 133 | 
|         |  | Signatures                                                                                                               |  |      | 134 | 
|         |  | Index to Certain Exhibits and Financial
    Statement Schedules                                                          |  |      | 135 | 
|EX-10.6 
|EX-10.10
|EX-10.13
|EX-10.19
|EX-10.20
|EX-11   
|EX-18   
|EX-21   
|EX-23   
|EX-31.1 
|EX-31.2 
|EX-32   



1



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##### Table of Contents






PART I







|        |         
|------- | --------
|Item 1. | Business

General






| |   |                                       
| | - | --------------------------------------
| |  | Machinery technologies  North America
|
| |  | Machinery technologies  Europe       
|
| |  | Mold technologies                     
|
| |  | Industrial fluids                     













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Strategic Acquisitions and Divestitures






|                          |  |      |      |  |               |                                   
|------------------------- |  | ---- | ---- |  | ------------- | ----------------------------------
|Acquisition               |  | Date |      |  | Product Lines
|                          |  |      |      |  |              
|Akron Extruders           |  |      | 2000 |  |               | Plastics single-screw extruders   
|Rite-Tek Canada           |  |      | 2000 |  |               | Plastics MRO supplies             
|Ontario Heater and Supply |  |      | 2000 |  |               | Plastics MRO supplies             
|Progress Precision        |  |      | 2001 |  |               | Plastics extrusion feed screws    
|Reform Flachstahl         |  |      | 2001 |  |               | Plastics mold bases and components
|EOC Normalien             |  |      | 2001 |  |               | Plastics mold bases and components



|                              |  |      |      |  |               |                                           
|----------------------------- |  | ---- | ---- |  | ------------- | ------------------------------------------
|Divestiture                   |  | Date |      |  | Product Lines
|                              |  |      |      |  |              
|Widia magnet engineering      |  |      | 2000 |  |               | Industrial magnets                        
|Valenite, Widia               |  |      | 2002 |  |               | Carbide metalcutting inserts, tool holders
|Werkö                         |  |      | 2002 |  |               | Round metalcutting tools                  
|Talbot, Minnesota Twist Drill |  |      | 2003 |  |               | Round metalcutting tools                  
|Cimform                       |  |      | 2004 |  |               | Vitrified and resin-bonded grinding wheels

Manufacturing Efficiency and Cost Structure








3



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Refinancing


1 2




Product Research and Development




Patents




Employees




4



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Segment Information




Plastics Technologies


Products and Services.


Machinery technologies  North America




| |   |                                                                                        
| | - | ---------------------------------------------------------------------------------------
| |  | Injection molding systems, parts and services supplied from
    North America and India
|
| |  | Blow molding systems, parts, molds and services supplied from
    North America        
|
| |  | Extrusion systems, parts and services supplied from North America                      

Machinery technologies  Europe




| |   |                                                                         
| | - | ------------------------------------------------------------------------
| |  | Injection molding systems, parts and services supplied from
    Europe  
|
| |  | Blow molding systems, parts, molds and services supplied from
    Europe

Mold technologies




| |   |                                                                            
| | - | ---------------------------------------------------------------------------
| |  | Injection mold bases, related components/tooling and services
    worldwide
|
| |  | MRO  maintenance, repair and supplies worldwide                           









5



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Markets.








Geographic Sales.


Distribution.




6



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Customers.


Production Facilities.


|                          |  |                                                                           
|------------------------- |  | --------------------------------------------------------------------------
|Facility Location         |  | Products                                                                  
|                          |  |                                                                           
|Ahmedabad, India          |  | Injection molding machines                                                
|Batavia, Ohio*            |  | Injection molding machines
    Blow molding machines
    Extrusion systems
|Charlevoix, Michigan      |  | Mold components                                                           
|Corby, England            |  | Injection molding components                                              
|Fulda, Germany            |  | Mold bases                                                                
|Greenville, Michigan*     |  | Mold bases                                                                
|Jiangyin, China*          |  | Injection molding machines                                                
|Lewistown, Pennsylvania   |  | Mold components                                                           
|Madison Heights, Michigan |  | Hot runner systems                                                        
|Magenta, Italy*           |  | Blow molding machines                                                     
|Malterdingen, Germany     |  | Injection molding machines                                                
|McPherson, Kansas*        |  | Extrusion screws and barrels                                              
|Mechelen, Belgium         |  | Mold components                                                           
|Melrose Park, Illinois    |  | Mold bases                                                                
|Mississauga, Canada*      |  | Extrusion screws                                                          
|Mt. Orab, Ohio            |  | Plastics machinery parts                                                  
|Policka, Czech Republic*  |  | Blow molding machines                                                     
|Tecumseh, Michigan*       |  | Molds for blow molding                                                    
|Windsor, Canada           |  | Mold bases                                                                
|Youngwood, Pennsylvania   |  | Mold bases and components                                                 






|  |       
|- | ------
|* | Leased





1 2


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Competition.


Industrial Fluids


Products and Services.






| |   |                                                              
| | - | -------------------------------------------------------------
| |  | Metalcutting and metalforming coolants and lubricants        
|
| |  | Process cleaners, corrosion inhibitors and specialty products







Markets.






8



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Geographic Sales.


Distribution.


Customers.




Production Facilities.


|                             |  |                                                           
|---------------------------- |  | ----------------------------------------------------------
|Facility Location            |  | Products                                                  
|                             |  |                                                           
|Cincinnati, Ohio             |  | Metalworking fluids                                       
|Corby, England*              |  | Metalworking and metalforming fluids                      
|Freiburg, Germany*           |  | Process cleaners, corrosion inhibitors, specialty products
|Livonia, Michigan            |  | Metalworking fluids                                       
|Sturgis, Michigan            |  | Metalworking fluids                                       
|Ulsan, South Korea           |  | Metalworking fluids                                       
|Vlaardingen, The Netherlands |  | Metalforming fluids                                       






|  |       
|- | ------
|* | Leased



1 2


Competition.


9



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Executive Officers of the Registrant




|                           |  |                                                                             |  |                                                                                                                                                                                                                                                                                                                  
|-------------------------- |  | --------------------------------------------------------------------------- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Name and Age               |  | Position                                                                    |  | Positions Held During Last Five Years                                                                                                                                                                                                                                                                            
|                           |  |                                                                             |  |                                                                                                                                                                                                                                                                                                                  
|Ronald D. Brown (51)       |  | Chairman, President and Chief Executive Officer                             |  | Elected Chairman, President and Chief Executive Officer in 2001.
    Elected President and Chief Operating Officer in 1999. Has
    served as a Director since 1999.                                                                                                                                             
|Robert P. Lienesch (59)    |  | Senior Vice President  Finance, Controller and Chief
    Financial Officer |  | Elected Senior Vice President  Finance and Controller
    in 2004. Elected Vice President  Finance and Chief
    Financial Officer in 1999. Elected Vice President and Treasurer
    in 1998 and served as Treasurer until 2001.                                                                               
|Hugh C. ODonnell (53)     |  | Senior Vice President, General Counsel and Secretary                        |  | Elected Senior Vice President in 2004 and elected Vice
    President, General Counsel and Secretary in 1999. Prior thereto
    was Corporate Counsel from 1992.                                                                                                                                                  
|Dr. Karlheinz Bourdon (47) |  | President  Global Plastics Machinery                                       |  | Elected President of Global Plastics Machinery business in 2004.
    Prior thereto was General Manager, Plastics Machinery
    Technologies Group from 2003 to 2004, Senior Managing Director,
    Plastics Machinery Europe from 2001 to 2003, and Managing
    Director, Ferromatik Milacron from 1999 to 2001.
|David E. Lawrence (54)     |  | President  Global Mold Technologies                                        |  | Elected President of Global Mold Technologies business in 2004.
    Prior thereto was General Manager, Global Mold Technologies from
    2003 to 2004 and General Manager, North America of D-M-E, a
    Milacron subsidiary, from 1999 to 2003.                                                                 
|Robert C. McKee (53)       |  | President  Global Industrial Fluids                                        |  | Elected President of Global Industrial Fluids business in 2004.
    Prior thereto was General Manager, Global Industrial Fluids from
    2002, General Manager, Consumable Products Division from 2000 to
    2002 and President of Talbot Holdings, a Milacron subsidiary,
    from 1995 to 2000.               

10



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|                        |  |                                  |  |                                                                                                                                                                                                                   
|----------------------- |  | -------------------------------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Name and Age            |  | Position                         |  | Positions Held During Last Five Years                                                                                                                                                                             
|                        |  |                                  |  |                                                                                                                                                                                                                   
|M. Bradley Baker (39)   |  | Vice President  Human Resources |  | Elected Vice President of Human Resources in 2004. Prior thereto
    was Director, Global Human Resources from 2002 to 2004 and Group
    Director, Human Resources  Plastics Technologies from
    1999 to 2002.
|John C. Francy
    (40) |  | Vice President and Treasurer     |  | Elected Vice President in 2004 and Treasurer in 2001. Prior
    thereto was Assistant Treasurer from 1998.                                                                                                        








| |                                                                                                                                         
| | ----------------------------------------------------------------------------------------------------------------------------------------
| | The parenthetical figure below the name of each individual
    indicates his age at most recent birthday prior to
    December 31, 2004.
|
| | There are no family relationships among the executive officers
    of the Registrant.                                                   
|
| | Officers of the company are elected each year by the Board of
    Directors.                                                            






|        |           
|------- | ----------
|Item 2. | Properties










|        |                  
|------- | -----------------
|Item 3. | Legal Proceedings



11



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|        |                                                    
|------- | ---------------------------------------------------
|Item 4. | Submission of Matters to a Vote of Security Holders






PART II







|        |                                                                                                                         
|------- | ------------------------------------------------------------------------------------------------------------------------
|Item 5. | Market for the Registrants Common Equity, Related
    Stockholder Matters and Issuer Purchases of Equity
    Securities



1 2




|                         | 
|------------------------ | 
|Common Stock Price Range | 

|                    |              |      |   |      |     |  |   |      | 
|------------------- | ------------ | ---- | - | ---- | --- |  | - | ---- | 
|                    |              | High |   |      | Low | 
|                    |              |      |   |      |     | 
|2003, quarter ended |              |      |   |      |     |  |   |     
|                    | March 31     |      | $ | 6.55 |     |  | $ | 3.76 | 
|                    | June 30      |      |   | 5.59 |     |  |   | 4.08 | 
|                    | September 30 |      |   | 5.00 |     |  |   | 2.00 | 
|                    | December 31  |      |   | 4.47 |     |  |   | 2.23 | 
|2004, quarter ended |              |      |   |      |     |  |   |     
|                    | March 31     |      | $ | 4.55 |     |  | $ | 1.86 | 
|                    | June 30      |      |   | 4.49 |     |  |   | 3.25 | 
|                    | September 30 |      |   | 4.02 |     |  |   | 2.83 | 
|                    | December 31  |      |   | 3.76 |     |  |   | 2.66 | 



|                               |  |              |        |     |               |              |      |                  |                   |  |                 |  |  |  |   | 
|------------------------------ |  | ------------ | ------ | --- | ------------- | ------------ | ---- | ---------------- | ----------------- |  | --------------- |  |  |  | - | 
|                               |  | (a)          |        |     | (b)           |              |      | (c)              |                   |  | (d)             | 
|                               |  |              |        |     |               |              |      |                  |                   |  |                 | 
|                               |  |              |        |     |               | Total Number |      |                  | Maximum Number    | 
|                               |  |              |        |     |               | of Shares    |      |                  | (or Approximate   | 
|                               |  |              |        |     |               | (or Units)   |      |                  | Dollar Value) of  | 
|                               |  |              |        |     |               | Purchased as |      |                  | Shares (or Units) | 
|                               |  | Total Number |        |     | Average Price |              |      | Part of Publicly |                   |  | that May Yet Be | 
|                               |  | of Shares    |        |     | Paid per      |              |      | Announced        |                   |  | Purchased Under | 
|                               |  | (or Units)   |        |     | Share         |              |      | Plans            |                   |  | the Plans or    | 
|Period                         |  | Purchased    |        |     | (or Unit)     |              |      | or Programs(1)   |                   |  | Programs(1)     | 
|                               |  |              |        |     |               |              |      |                  |                   |  |                 | 
|October 1 - October 31, 2004   |  |              |       |     |               |              |     |                  |                   |  |                |  |  |  |  | 
|November 1 - November 30, 2004 |  |              | 32,851 | (2) |               |              | 2.97 |                  |                   |  |                |  |  |  |  | 
|December 1 - December 31, 2004 |  |              | 3,749  | (2) |               |              | 2.99 |                  |                   |  |                |  |  |  |  | 
|Total                          |  |              | 36,600 |     |               |              | 2.97 |                  |                   |  |                |  |  |  |  | 

12



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|    |                                                                                                                                                                                    
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | As of December 31, 2004, there were no publicly announced
    plans or programs to repurchase stock.                                                                               
|   
|(2) | Represents shares issued in a rights offering that were
    cancelled to cover withholding taxes owed by certain holders of
    restricted shares who participated in the offering.






|        |                        
|------- | -----------------------
|Item 6. | Selected Financial Data

|                                                                                                             |                     |                                                 |       |       |       |      |        |      |       |      |        |      |       |      |         |       |      |      |         |       |      | 
|------------------------------------------------------------------------------------------------------------ | ------------------- | ----------------------------------------------- | ----- | ----- | ----- | ---- | ------ | ---- | ----- | ---- | ------ | ---- | ----- | ---- | ------- | ----- | ---- | ---- | ------- | ----- | ---- | 
|                                                                                                             |                     | 2004                                            |       |       | 2003  |      |        | 2002 |       |      | 2001   |      |       | 2000 |        
|                                                                                                             |                     |                                                 |       |       |       |      |        |      |       |      |        |      |       |      |        
|                                                                                                             |                     | (Dollars in millions, except per-share amounts) |      
|Summary of Operations                                                                                        |                     |                                                 |       |       |       |      |        |      |       |      |        |      |       |      |         |       |      |      |         |      
|Sales                                                                                                        |                     | $                                               | 774.2 |       |       | $    | 739.7  |      |       | $    | 693.2  |      |       | $    | 755.2   |       |      | $    | 974.5   |      
|Earnings (loss) from continuing operations before cumulative
    effect of change in method of accounting(a) |                     |                                                 | (51.3 | )(b)  |       |      | (183.7 | )(b) |       |      | (18.7  | )(b) |       |      | (28.6   | )(b)  |      |      | 48.2    | (b)  
|                                                                                                             | Per common share(c) |                                                 |       |       |       |      |        |      |       |      |        |      |       |      |         |       |      |      |         |       |     
|                                                                                                             |                     | Basic                                           |       |       | (1.33 | )    |        |      | (5.02 | )    |        |      | (.52  | )    |         |       | (.80 | )    |         |       | 1.26 | 
|                                                                                                             |                     | Diluted                                         |       |       | (1.33 | )(d) |        |      | (5.02 | )(d) |        |      | (.52  | )(d) |         |       | (.80 | )(d) |         |       | 1.25 | 
|Earnings (loss) from discontinued operations                                                                 |                     |                                                 | (.5   | )(e)  |       |      | (7.2   | )(e) |       |      | (16.8  | )(e) |       |      | (7.0    | )     |      |      | 22.8    |      
|                                                                                                             | Per common share(c) |                                                 |       |       |       |      |        |      |       |      |        |      |       |      |         |       |      |      |         |       |     
|                                                                                                             |                     | Basic                                           |       |       | (.01  | )    |        |      | (.19  | )    |        |      | (.46  | )    |         |       | (.19 | )    |         |       | .60  | 
|                                                                                                             |                     | Diluted                                         |       |       | (.01  | )(d) |        |      | (.19  | )(d) |        |      | (.46  | )(d) |         |       | (.19 | )(d) |         |       | .60  | 
|Cumulative effect of change in method of accounting                                                          |                     |                                                 |      |       |       |      |       |      |       |      | (187.7 | )(f) |       |      |        |       |      |      |        |      
|                                                                                                             | Per common share(c) |                                                 |       |       |       |      |        |      |       |      |        |      |       |      |         |       |      |      |         |       |     
|                                                                                                             |                     | Basic                                           |       |       |      |      |        |      |      |      |        |      | (5.15 | )    |         |       |     |      |         |       |     | 
|                                                                                                             |                     | Diluted                                         |       |       |      |      |        |      |      |      |        |      | (5.15 | )(d) |         |       |     |      |         |       |     | 
|Net earnings (loss)(a)                                                                                       |                     |                                                 | (51.8 | )     |       |      | (190.9 | )    |       |      | (223.2 | )    |       |      | (35.6   | )     |      |      | 71.0    |      
|                                                                                                             | Per common share(c) |                                                 |       |       |       |      |        |      |       |      |        |      |       |      |         |       |      |      |         |       |     
|                                                                                                             |                     | Basic                                           |       |       | (1.34 | )    |        |      | (5.21 | )    |        |      | (6.13 | )    |         |       | (.99 | )    |         |       | 1.86 | 
|                                                                                                             |                     | Diluted                                         |       |       | (1.34 | )(d) |        |      | (5.21 | )(d) |        |      | (6.13 | )(d) |         |       | (.99 | )(d) |         |       | 1.85 | 
|Financial Position at Year End                                                                               |                     |                                                 |       |       |       |      |        |      |       |      |        |      |       |      |         |       |      |      |         |      
|Working capital of continuing operations                                                                     |                     |                                                 | 193.4 |       |       |      | 22.2   |      |       |      | 166.9  |      |       |      | 176.5   |       |      |      | 102.5   |      
|Property, plant and equipment-net                                                                            |                     |                                                 | 128.4 |       |       |      | 140.8  |      |       |      | 149.8  |      |       |      | 165.8   |       |      |      | 165.0   |      
|Total assets                                                                                                 |                     |                                                 | 739.9 |       |       |      | 733.4  |      |       |      | 947.3  |      |       |      | 1,528.5 |       |      |      | 1,481.0 |      
|Long-term debt                                                                                               |                     |                                                 | 235.9 |       |       |      | 163.5  |      |       |      | 255.4  |      |       |      | 501.1   |       |      |      | 371.3   |      
|Total debt                                                                                                   |                     |                                                 | 253.1 |       |       |      | 323.4  |      |       |      | 301.5  |      |       |      | 576.7   |       |      |      | 457.2   |      
|Net debt (total debt less cash and cash equivalents)                                                         |                     |                                                 | 183.9 |       |       |      | 230.6  |      |       |      | 179.2  |      |       |      | 486.6   |       |      |      | 423.4   |      
|Shareholders equity (deficit)                                                                               |                     |                                                 | 50.4  |       |       |      | (23.6  | )    |       |      | 143.5  |      |       |      | 444.6   |       |      |      | 494.0   |      
|                                                                                                             | Per common share    |                                                 |       | (1.42 | )     |      |        | (.85 | )     |      |        | 4.07 |       |      |         | 13.11 |      |      |         | 14.64 |     
|Other Data                                                                                                   |                     |                                                 |       |       |       |      |        |      |       |      |        |      |       |      |         |       |      |      |         |      
|Dividends paid to common shareholders                                                                        |                     |                                                 |      |       |       |      | .7     |      |       |      | 1.4    |      |       |      | 12.4    |       |      |      | 16.8    |      
|                                                                                                             | Per common share    |                                                 |       |      |       |      |        | .02  |       |      |        | .04  |       |      |         | .37   |      |      |         | .50   |     
|Capital expenditures                                                                                         |                     |                                                 | 8.8   |       |       |      | 6.5    |      |       |      | 6.2    |      |       |      | 13.5    |       |      |      | 26.5    |      
|Depreciation and amortization                                                                                |                     |                                                 | 20.3  |       |       |      | 21.7   |      |       |      | 23.0   |      |       |      | 34.9    |       |      |      | 35.4    |      
|Backlog of unfilled orders at year-end                                                                       |                     |                                                 | 87.3  |       |       |      | 92.0   |      |       |      | 76.4   |      |       |      | 61.2    |       |      |      | 100.0   |      
|Employees (average)                                                                                          |                     |                                                 | 3,490 |       |       |      | 3,760  |      |       |      | 4,090  |      |       |      | 4,672   |       |      |      | 4,789   |      






|    |  |                                                                                                                                                                                                                       
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | In the fourth quarter of 2004, the company elected to change its
    method of accounting for certain U.S. plastics machinery
    inventories from the last-in, first-out (LIFO) method to
    the first-in, first-out

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|    |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|--- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |  | (FIFO) method, retroactive to the beginning of the year.
    The amounts presented herein for the years 2000 through 2003
    have been restated to conform to the 2004 presentation.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|   
|(b) |  | Includes restructuring costs of $13.0 million (with no tax
    benefit) in 2004, $27.1 million ($25.5 million after
    tax) in 2003, $13.9 million ($8.8 million after tax)
    in 2002, $17.5 million ($11.0 million after tax) in
    2001 and $1.4 million ($.9 million after tax) in 2000.
    In 2004 and 2003, includes refinancing costs of
    $21.4 million and $1.8 million, respectively, in both
    cases with no tax benefit. In 2003 and 2002, includes goodwill
    impairment charges of $65.6 million and $1.0 million,
    respectively, in both cases with no tax benefit.                                                                                       
|   
|(c) |  | The number of shares used to compute earnings (loss) per common
    share data for all years prior to 2004 has been restated to
    reflect the effects of a bonus element inherent in
    the rights offering that was completed in the fourth quarter of
    2004. Under the terms of the offering, holders of common shares
    were permitted to acquire additional shares at a price of
    $2.00 per share compared to a weighted-average market price
    on the closing dates of $2.91 per share. As a result of the
    bonus element, shares previously used to calculate basic and
    diluted earnings (loss) per common share were increased by a
    factor of 1.0891.
|   
|(d) |  | For 2004, 2003, 2002 and 2001, diluted earnings per common share
    is equal to basic earnings per common share because the
    inclusion of potentially dilutive securities would result in a
    smaller loss per common share.                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|   
|(e) |  | In 2004 and 2003, includes net income of $.8 million and
    net expense of $.8 million, respectively, related to
    adjustments of previously recorded gains and losses on
    divestitures of discontinued operations. In 2002, includes a net
    gain of $8.4 million on the divestitures of the Valenite
    and Widia and Werkö metalcutting tools businesses, the
    planned divestiture of the round metalcutting tools and grinding
    wheels businesses and adjustments of reserves related to the
    1998 sale of the machine tools segment.                                                                                                                           
|   
|(f) |  | Represents a goodwill impairment charge related to the adoption
    of a new accounting standard.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     






|        |                                                                                          
|------- | -----------------------------------------------------------------------------------------
|Item 7. | Managements Discussion and Analysis of Financial
    Condition and Results of Operations

Executive Summary




| |                 
| | ----------------
| | Company Overview







14



---



##### Table of Contents







| |                                                     
| | ----------------------------------------------------
| | Plastics Markets  Background and Recent
    History













| |                                   
| | ----------------------------------
| | Industrial Fluids  Recent History





15



---



##### Table of Contents







| |                          
| | -------------------------
| | Consolidated 2004 Results





| |                             
| | ----------------------------
| | Opportunities and Challenges











Consolidated 2004 Results




| |                          
| | -------------------------
| | Presence Outside the U.S.



16



---



##### Table of Contents











| |                                          
| | -----------------------------------------
| | Internal Control Over Financial Reporting





| |                                              
| | ---------------------------------------------
| | Significant Accounting Policies and Judgments





| |                                             
| | --------------------------------------------
| | Deferred Tax Assets and Valuation Allowances



17



---



##### Table of Contents

















18



---



##### Table of Contents









| |                                                         
| | --------------------------------------------------------
| | Accounts Receivable, Inventory and Warranty
    Reserves









19



---



##### Table of Contents





| |                                             
| | --------------------------------------------
| | Impairment of Goodwill and Long-Lived Assets







20



---



##### Table of Contents











| |                        
| | -----------------------
| | Self-Insurance Reserves





21



---



##### Table of Contents





| |         
| | --------
| | Pensions



1 2 1 2




1 4 1 2 1 4




22



---



##### Table of Contents







Results of Operations






| |                      
| | ---------------------
| | Basis of Presentation





| |                          
| | -------------------------
| | Earnings Per Common Share





| |                        
| | -----------------------
| | Discontinued Operations



23



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##### Table of Contents





| |                           
| | --------------------------
| | Pension Income and Expense





2004 Compared to 2003




| |                    
| | -------------------
| | New Order and Sales









| |                            
| | ---------------------------
| | Margins, Costs and Expenses





24



---



##### Table of Contents











| |                  
| | -----------------
| | Refinancing Costs

5 8




| |                    
| | -------------------
| | Restructuring Costs







25



---



##### Table of Contents











Restructuring Actions


|                                       |                                                                                              |                |  |                     |      |  |            |      |  |  |      |     |  |      |     |     |      |  |     |      |  |  |     |     |  |  |     |     | 
|-------------------------------------- | -------------------------------------------------------------------------------------------- | -------------- |  | ------------------- | ---- |  | ---------- | ---- |  |  | ---- | --- |  | ---- | --- | --- | ---- |  | --- | ---- |  |  | --- | --- |  |  | --- | --- | 
|                                       |                                                                                              |                |  | Restructuring Costs |      |  | Cash Costs |     
|                                       |                                                                                              |                |  |                     |      |  |            |     
|                                       |                                                                                              | Year Initiated |  |                     | 2004 |  |            | 2003 |  |  | 2002 |     |  | 2004 |     |     | 2003 |  |     | 2002 | 
|                                       |                                                                                              |                |  |                     |      |  |            |      |  |  |      |     |  |      |     |     |      |  |     |      | 
|                                       |                                                                                              |                |  | (In millions)       |     
|Machinery technologies  North America |                                                                                              |                |  |                     |      |  |            |      |  |  |      |     |  |      |     |     |      |  |     |      |  |  |     |     |  |  |     |    
|                                       | Injection molding and blow molding employment reductions                                     |                |  | 2003 & 2004         |      |  | $          | 2.5  |  |  | $    | 3.8 |  |      | $   |    |      |  | $   | 1.7  |  |  | $   | .7  |  |  | $   |    | 
|                                       | Blow molding machinery and mold making relocations                                           |                |  | 2002                |      |  |            | 5.5  |  |  |      | 3.9 |  |      |     | 3.4 |      |  |     | .6   |  |  |     | 3.4 |  |  |     | .4  | 
|                                       | Southwest Ohio reorganization                                                                |                |  | 2002                |      |  |            |     |  |  |      |    |  |      |     | .6  |      |  |     |     |  |  |     |    |  |  |     | .1  | 
|                                       | Injection molding and extrusion early retirement program and
    general overhead reductions |                |  | 2001                |      |  |            |     |  |  |      |    |  |      |     | 2.3 |      |  |     |     |  |  |     |    |  |  |     | .6  | 
|                                       | Injection molding and blow molding facilities product line
    rationalization               |                |  | 2001                |      |  |            |     |  |  |      |    |  |      |     | .4  |      |  |     |     |  |  |     |    |  |  |     | .2  | 
|                                       | Other 2001 actions                                                                           |                |  | 2001                |      |  |            |     |  |  |      |    |  |      |     |    |      |  |     |     |  |  |     |    |  |  |     | .2  | 
|                                       |                                                                                              |                |  |                     |      |  |            |      |  |  |      |     |  |      |     |     |      |  |     |      | 
|                                       |                                                                                              |                |  |                     |      |  | 8.0        |      |  |  | 7.7  |     |  |      | 6.7 |     |      |  | 2.3 |      |  |  | 4.1 |     |  |  | 1.5 |    
|Machinery technologies  Europe        |                                                                                              |                |  |                     |      |  |            |      |  |  |      |     |  |      |     |     |      |  |     |      |  |  |     |     |  |  |     |    
|                                       | Blow molding product line rationalization and employment
    reductions                      |                |  | 2003                |      |  |            | .2   |  |  |      | 4.5 |  |      |     |    |      |  |     | .9   |  |  |     | .7  |  |  |     |    | 
|                                       | Injection molding sales office and employment reductions                                     |                |  | 2003                |      |  |            |     |  |  |      | 2.0 |  |      |     |    |      |  |     | 1.4  |  |  |     | .5  |  |  |     |    | 
|                                       | Injection molding and blow molding overhead reductions                                       |                |  | 2001                |      |  |            |     |  |  |      |    |  |      |     | (.4 | )    |  |     |     |  |  |     | 1.3 |  |  |     | 4.0 | 
|                                       |                                                                                              |                |  |                     |      |  |            |      |  |  |      |     |  |      |     |     |      |  |     |      | 
|                                       |                                                                                              |                |  |                     |      |  | .2         |      |  |  | 6.5  |     |  |      | (.4 | )   |      |  | 2.3 |      |  |  | 2.5 |     |  |  | 4.0 |    

26



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##### Table of Contents



|                                |                                                           |                |  |                     |      |   |            |      |  |   |      |     |  |      |      |     |      |   |     |      |  |   |      |     |   |   |      |     | 
|------------------------------- | --------------------------------------------------------- | -------------- |  | ------------------- | ---- | - | ---------- | ---- |  | - | ---- | --- |  | ---- | ---- | --- | ---- | - | --- | ---- |  | - | ---- | --- | - | - | ---- | --- | 
|                                |                                                           |                |  | Restructuring Costs |      |   | Cash Costs |     
|                                |                                                           |                |  |                     |      |   |            |     
|                                |                                                           | Year Initiated |  |                     | 2004 |   |            | 2003 |  |   | 2002 |     |  | 2004 |      |     | 2003 |   |     | 2002 | 
|                                |                                                           |                |  |                     |      |   |            |      |  |   |      |     |  |      |      |     |      |   |     |      | 
|                                |                                                           |                |  | (In millions)       |     
|Mold technologies               |                                                           |                |  |                     |      |   |            |      |  |   |      |     |  |      |      |     |      |   |     |      |  |   |      |     |   |   |      |    
|                                | Downsize Fulda plant                                      |                |  | 2004                |      |   |            | 2.2  |  |   |      |    |  |      |      |    |      |   |     | .6   |  |   |      |    |   |   |      |    | 
|                                | Mahlberg plant closure                                    |                |  | 2003                |      |   |            | 1.3  |  |   |      | 5.7 |  |      |      |    |      |   |     |     |  |   |      | 2.8 |   |   |      |    | 
|                                | North American employment reductions                      |                |  | 2003                |      |   |            |     |  |   |      | 1.0 |  |      |      |    |      |   |     | .3   |  |   |      | .6  |   |   |      |    | 
|                                | European sales reorganization                             |                |  | 2003 & 2004         |      |   |            | 1.0  |  |   |      | 3.6 |  |      |      |    |      |   |     | 2.4  |  |   |      | 1.3 |   |   |      |    | 
|                                | Monterey Park plant closure                               |                |  | 2002                |      |   |            |     |  |   |      | .5  |  |      |      | .9  |      |   |     |     |  |   |      | (.2 | ) |   |      |    | 
|                                | EOC and Reform integration                                |                |  | 2001                |      |   |            | .3   |  |   |      | 1.8 |  |      |      | 4.6 |      |   |     | .2   |  |   |      | .2  |   |   |      | 7.8 | 
|                                | North American overhead and general employment reductions |                |  | 2001 & 2002         |      |   |            |     |  |   |      |    |  |      |      | .9  |      |   |     |     |  |   |      |    |   |   |      | .3  | 
|                                |                                                           |                |  |                     |      |   |            |      |  |   |      |     |  |      |      |     |      |   |     |      | 
|                                |                                                           |                |  |                     |      |   | 4.8        |      |  |   | 12.6 |     |  |      | 6.4  |     |      |   | 3.5 |      |  |   | 4.7  |     |   |   | 8.1  |    
|Industrial fluids and corporate |                                                           |                |  |                     |      |   |            |      |  |   |      |     |  |      |      |     |      |   |     |      |  |   |      |     |   |   |      |    
|                                | Early retirement program and general overhead reductions  |                |  | 2003                |      |   |            |     |  |   |      | .3  |  |      |      |    |      |   |     | .1   |  |   |      | .2  |   |   |      |    | 
|                                | Early retirement program and general overhead reductions  |                |  | 2001 & 2002         |      |   |            |     |  |   |      |    |  |      |      | 1.2 |      |   |     | .1   |  |   |      | .3  |   |   |      | .3  | 
|                                |                                                           |                |  |                     |      |   |            |      |  |   |      |     |  |      |      |     |      |   |     |      | 
|                                |                                                           |                |  |                     |      |   |           |      |  |   | .3   |     |  |      | 1.2  |     |      |   | .2  |      |  |   | .5   |     |   |   | .3   |    
|                                |                                                           |                |  |                     |      |   |            |      |  |   |      |     |  |      |      |     |      |   |     |      | 
|                                |                                                           |                |  |                     |      | $ | 13.0       |      |  | $ | 27.1 |     |  | $    | 13.9 |     |      | $ | 8.3 |      |  | $ | 11.8 |     |   | $ | 13.9 |    
|                                |                                                           |                |  |                     |      |   |            |      |  |   |      |     |  |      |      |     |      |   |     |      | 





Restructuring Actions


|                                       |                                                                                              |                |  |             |            |               |     |      |             |  |      |     |  |      |      |      |      |  |      |      |  |  |     |     | 
|-------------------------------------- | -------------------------------------------------------------------------------------------- | -------------- |  | ----------- | ---------- | ------------- | --- | ---- | ----------- |  | ---- | --- |  | ---- | ---- | ---- | ---- |  | ---- | ---- |  |  | --- | --- | 
|                                       |                                                                                              |                |  |             |            | Cost Savings  |    
|                                       |                                                                                              |                |  |             |            |               |    
|                                       |                                                                                              |                |  | Headcount   |            |               |     |      | Incremental | 
|                                       |                                                                                              | Year Initiated |  |             | Reductions |               |     | 2002 |             |  | 2003 |     |  | 2004 |      |      | 2005 | 
|                                       |                                                                                              |                |  |             |            |               |     |      |             |  |      |     |  |      |      |      |      | 
|                                       |                                                                                              |                |  |             |            | (In millions) |    
|Machinery technologies  North America |                                                                                              |                |  |             |            |               |     |      |             |  |      |     |  |      |      |      |      |  |      |      |  |  |     |    
|                                       | Injection molding and blow molding employment reductions                                     |                |  | 2003 & 2004 |            |               |     | 165  |             |  | $    |    |  |      | $    | 2.1  |      |  | $    | 8.8  |  |  | $   | 3.3 | 
|                                       | Blow molding machinery and mold making relocations                                           |                |  | 2002        |            |               |     | 42   |             |  |      |    |  |      |      | 3.7  |      |  |      | 4.7  |  |  |     |    | 
|                                       | Southwest Ohio reorganization                                                                |                |  | 2002        |            |               |     | 24   |             |  |      | .8  |  |      |      | 2.7  |      |  |      | 2.7  |  |  |     |    | 
|                                       | Injection molding and extrusion early retirement program and
    general overhead reductions |                |  | 2001        |            |               |     | 165  |             |  |      | 9.9 |  |      |      | 10.7 |      |  |      | 10.7 |  |  |     |    | 
|                                       | Injection molding and blow molding facilities product line
    rationalization               |                |  | 2001        |            |               |     | 64   |             |  |      | 4.4 |  |      |      | 4.2  |      |  |      | 4.2  |  |  |     |    | 
|                                       | Other 2001 actions                                                                           |                |  | 2001        |            |               |     | 52   |             |  |      | 5.0 |  |      |      | 5.0  |      |  |      | 5.0  |  |  |     |    | 
|                                       |                                                                                              |                |  |             |            |               |     |      |             |  |      |     |  |      |      |      |      | 
|                                       |                                                                                              |                |  |             |            |               | 512 |      |             |  | 20.1 |     |  |      | 28.4 |      |      |  | 36.1 |      |  |  | 3.3 |    

27



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##### Table of Contents



|                                |                                                                         |                |  |             |            |               |       |      |             |   |      |     |  |      |      |     |      |   |      |     |  |   |     |    | 
|------------------------------- | ----------------------------------------------------------------------- | -------------- |  | ----------- | ---------- | ------------- | ----- | ---- | ----------- | - | ---- | --- |  | ---- | ---- | --- | ---- | - | ---- | --- |  | - | --- | -- | 
|                                |                                                                         |                |  |             |            | Cost Savings  |      
|                                |                                                                         |                |  |             |            |               |      
|                                |                                                                         |                |  | Headcount   |            |               |       |      | Incremental |  
|                                |                                                                         | Year Initiated |  |             | Reductions |               |       | 2002 |             |   | 2003 |     |  | 2004 |      |     | 2005 |  
|                                |                                                                         |                |  |             |            |               |       |      |             |   |      |     |  |      |      |     |      |  
|                                |                                                                         |                |  |             |            | (In millions) |      
|Machinery technologies  Europe |                                                                         |                |  |             |            |               |       |      |             |   |      |     |  |      |      |     |      |   |      |     |  |   |     |   
|                                | Blow molding product line rationalization and employment
    reductions |                |  | 2003        |            |               |       | 47   |             |   |      |    |  |      |      | 1.0 |      |   |      | 2.8 |  |   |     |   | 
|                                | Injection molding sales office and employment reductions                |                |  | 2003        |            |               |       | 72   |             |   |      |    |  |      |      | .4  |      |   |      | 3.6 |  |   |     | .9 | 
|                                | Injection molding and blow molding overhead reductions                  |                |  | 2001        |            |               |       | 133  |             |   |      | 5.0 |  |      |      | 6.8 |      |   |      | 7.2 |  |   |     |   | 
|                                |                                                                         |                |  |             |            |               |       |      |             |   |      |     |  |      |      |     |      |  
|                                |                                                                         |                |  |             |            |               | 252   |      |             |   | 5.0  |     |  |      | 8.2  |     |      |   | 13.6 |     |  |   | .9  |   
|Mold technologies               |                                                                         |                |  |             |            |               |       |      |             |   |      |     |  |      |      |     |      |   |      |     |  |   |     |   
|                                | Downsize Fulda plant                                                    |                |  | 2004        |            |               |       | 25   |             |   |      |    |  |      |      |    |      |   |      |    |  |   |     | .8 | 
|                                | Mahlberg plant closure                                                  |                |  | 2003        |            |               |       | 64   |             |   |      |    |  |      |      | 2.1 |      |   |      | 3.8 |  |   |     | .2 | 
|                                | North American employment reductions                                    |                |  | 2003        |            |               |       | 38   |             |   |      |    |  |      |      | 1.0 |      |   |      | 3.1 |  |   |     | .1 | 
|                                | European sales reorganization                                           |                |  | 2003 & 2004 |            |               |       | 79   |             |   |      |    |  |      |      | .1  |      |   |      | 5.5 |  |   |     | .4 | 
|                                | Monterey Park plant closure                                             |                |  | 2002        |            |               |       | 12   |             |   |      |    |  |      |      | .6  |      |   |      | .8  |  |   |     |   | 
|                                | EOC and Reform integration                                              |                |  | 2001        |            |               |       | 233  |             |   |      | 3.0 |  |      |      | 5.2 |      |   |      | 5.2 |  |   |     |   | 
|                                | North American overhead and general employment reductions               |                |  | 2001 & 2002 |            |               |       | 47   |             |   |      | 1.9 |  |      |      | 2.0 |      |   |      | 1.9 |  |   |     |   | 
|                                |                                                                         |                |  |             |            |               |       |      |             |   |      |     |  |      |      |     |      |  
|                                |                                                                         |                |  |             |            |               | 498   |      |             |   | 4.9  |     |  |      | 11.0 |     |      |   | 20.3 |     |  |   | 1.5 |   
|Industrial fluids and corporate |                                                                         |                |  |             |            |               |       |      |             |   |      |     |  |      |      |     |      |   |      |     |  |   |     |   
|                                | Early retirement program and general overhead reductions                |                |  | 2003        |            |               |       | 11   |             |   |      |    |  |      |      | .5  |      |   |      | 1.4 |  |   |     |   | 
|                                | Early retirement program and general overhead reductions                |                |  | 2001 & 2002 |            |               |       | 16   |             |   |      | .5  |  |      |      | 1.0 |      |   |      | 1.0 |  |   |     |   | 
|                                |                                                                         |                |  |             |            |               |       |      |             |   |      |     |  |      |      |     |      |  
|                                |                                                                         |                |  |             |            |               | 27    |      |             |   | .5   |     |  |      | 1.5  |     |      |   | 2.4  |     |  |   |    |   
|                                |                                                                         |                |  |             |            |               |       |      |             |   |      |     |  |      |      |     |      |  
|                                |                                                                         |                |  |             |            |               | 1,289 |      |             | $ | 30.5 |     |  | $    | 49.1 |     |      | $ | 72.4 |     |  | $ | 5.7 |   
|                                |                                                                         |                |  |             |            |               |       |      |             |   |      |     |  |      |      |     |      |  



| |                           
| | --------------------------
| | Goodwill Impairment Charge





| |                   
| | ------------------
| | Results By Segment

Machinery technologies  North
America


28



---



##### Table of Contents





Machinery technologies  Europe


Mold technologies


Industrial Fluids




| |                                                    
| | ---------------------------------------------------
| | Loss From Continuing Operations Before Income Taxes



29



---



##### Table of Contents







| |             
| | ------------
| | Income Taxes









| |                                
| | -------------------------------
| | Loss From Continuing Operations





| |                        
| | -----------------------
| | Discontinued Operations







| |         
| | --------
| | Net Loss



30



---



##### Table of Contents



2003 Compared to 2002




| |                    
| | -------------------
| | New Order and Sales









| |                            
| | ---------------------------
| | Margins, Costs and Expenses









| |                    
| | -------------------
| | Restructuring Costs



31



---



##### Table of Contents













| |                           
| | --------------------------
| | Goodwill Impairment Charge





| |                   
| | ------------------
| | Results By Segment



Machinery technologies  North
America


Machinery technologies  Europe


32



---



##### Table of Contents





Mold technologies


Industrial Fluids




| |                                                    
| | ---------------------------------------------------
| | Loss From Continuing Operations Before Income Taxes





| |             
| | ------------
| | Income Taxes







| |                                
| | -------------------------------
| | Loss From Continuing Operations



33



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| |                        
| | -----------------------
| | Discontinued Operations







| |                                                    
| | ---------------------------------------------------
| | Cumulative Effect of Change in Method of Accounting





| |         
| | --------
| | Net Loss



Comparative Operating Results




|                                       |  |               |      |   |      |   |      |      |  |   |      |  
|-------------------------------------- |  | ------------- | ---- | - | ---- | - | ---- | ---- |  | - | ---- | -
|                                       |  | 2004          |      |   | 2003 |   |      | 2002 | 
|                                       |  |               |      |   |      |   |      |      | 
|                                       |  | (In millions) |     
|Machinery Technologies  North America |  |               |      |   |      |   |      |      |  |   |      |  
|Segment operating earnings as reported |  | $             | 16.0 |   |      | $ | 8.1  |      |  | $ | 7.5  |  
|Restructuring costs                    |  |               | (8.0 | ) |      |   | (7.7 | )    |  |   | (6.7 | )
|                                       |  |               |      |   |      |   |      |      | 
|Adjusted operating earnings            |  | $             | 8.0  |   |      | $ | .4   |      |  | $ | .8   |  
|                                       |  |               |      |   |      |   |      |      | 

|                                              |  |               |     |   |      |   |      |      |  |   |      |  
|--------------------------------------------- |  | ------------- | --- | - | ---- | - | ---- | ---- |  | - | ---- | -
|                                              |  | 2004          |     |   | 2003 |   |      | 2002 | 
|                                              |  |               |     |   |      |   |      |      | 
|                                              |  | (In millions) |    
|Machinery Technologies  Europe               |  |               |     |   |      |   |      |      |  |   |      |  
|Segment operating earnings (loss) as reported |  | $             | 1.9 |   |      | $ | (1.4 | )    |  | $ | (8.1 | )
|Restructuring costs                           |  |               | (.2 | ) |      |   | (6.5 | )    |  |   | .4   |  
|                                              |  |               |     |   |      |   |      |      | 
|Adjusted operating earnings (loss)            |  | $             | 1.7 |   |      | $ | (7.9 | )    |  | $ | (7.7 | )
|                                              |  |               |     |   |      |   |      |      | 

34



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|                                       |  |               |      |   |      |   |       |      |  |   |      |  
|-------------------------------------- |  | ------------- | ---- | - | ---- | - | ----- | ---- |  | - | ---- | -
|                                       |  | 2004          |      |   | 2003 |   |       | 2002 | 
|                                       |  |               |      |   |      |   |       |      | 
|                                       |  | (In millions) |     
|Mold Technologies                      |  |               |      |   |      |   |       |      |  |   |      |  
|Segment operating earnings as reported |  | $             | 4.3  |   |      | $ | 1.8   |      |  | $ | 5.3  |  
|Restructuring costs                    |  |               | (4.8 | ) |      |   | (12.6 | )    |  |   | (6.4 | )
|                                       |  |               |      |   |      |   |       |      | 
|Adjusted operating loss                |  | $             | (.5  | ) |      | $ | (10.8 | )    |  | $ | (1.1 | )
|                                       |  |               |      |   |      |   |       |      | 



Market Risk




| |                                    
| | -----------------------------------
| | Foreign Currency Exchange Rate Risk





| |                   
| | ------------------
| | Interest Rate Risk

1 2 3 8 5 8




Off-Balance Sheet Arrangements




| |                             
| | ----------------------------
| | Sales of Accounts Receivable



35



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| |                              
| | -----------------------------
| | Sales of Notes and Guarantees



Contractual Obligations




|                                         |                                    |               |       |       |      |       |      |      |       |   |      |        |  |      |      |      |  |   |       |       | 
|---------------------------------------- | ---------------------------------- | ------------- | ----- | ----- | ---- | ----- | ---- | ---- | ----- | - | ---- | ------ |  | ---- | ---- | ---- |  | - | ----- | ----- | 
|                                         |                                    |               |       |       |      | 2006- |      |      | 2008- |   |      | Beyond | 
|                                         |                                    | Total         |       |       | 2005 |       |      | 2007 |       |   | 2009 |        |  | 2009 |     
|                                         |                                    |               |       |       |      |       |      |      |       |   |      |        |  |      |     
|                                         |                                    | (In millions) |      
|Contractual Obligations                  |                                    |               |       |       |      |       |      |      |       |   |      |        |  |      |      |      |  |   |       |      
|Asset-based facility due 2008            |                                    | $             | 11.0  |       |      | $     | 11.0 |      |       | $ |     |        |  | $    |     |      |  | $ |      |      
|111/2% Senior
    Secured Notes due 2011 |                                    |               | 225.0 |       |      |       |     |      |       |   |     |        |  |      |     |      |  |   | 225.0 |      
|Other long-term debt                     |                                    |               | 5.9   |       |      |       | 4.1  |      |       |   | 1.2  |        |  |      | .4   |      |  |   | .2    |      
|Capital lease obligations                |                                    |               | 15.9  |       |      |       | 1.9  |      |       |   | 4.1  |        |  |      | 6.4  |      |  |   | 3.5   |      
|Operating leases                         |                                    |               | 32.2  |       |      |       | 11.8 |      |       |   | 14.3 |        |  |      | 5.1  |      |  |   | 1.0   |      
|Purchase obligations(a)                  |                                    |               |      |       |      |       |     |      |       |   |     |        |  |      |     |      |  |   |      |      
|Other long-term liabilities              |                                    |               |       |       |      |       |      |      |       |   |      |        |  |      |      |      |  |   |       |      
|                                         | Pension plan contributions(b)      |               |       | 62.6  |      |       |      | 2.5  |       |   |      | 44.1   |  |      |      | 16.0 |  |   |       |      | 
|                                         | Unfunded pension benefits(c)(d)    |               |       | 145.1 |      |       |      | 2.9  |       |   |      | 5.9    |  |      |      | 6.2  |  |   |       | 130.1 | 
|                                         | Postretirement medical benefits(d) |               |       | 45.9  |      |       |      | 3.1  |       |   |      | 5.8    |  |      |      | 4.5  |  |   |       | 32.5  | 
|                                         | Insurance reserves(d)              |               |       | 20.1  |      |       |      | 3.4  |       |   |      | 8.3    |  |      |      | 3.5  |  |   |       | 4.9   | 
|                                         |                                    |               |       |       |      |       |      |      |       |   |      |        |  |      |     
|Total                                    |                                    | $             | 563.7 |       |      | $     | 40.7 |      |       | $ | 83.7 |        |  | $    | 42.1 |      |  | $ | 397.2 |      
|                                         |                                    |               |       |       |      |       |      |      |       |   |      |        |  |      |     






|    |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | We did not have any significant purchase obligations as of
    December 31, 2004.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   
|(b) |  | We are required to make contributions to our defined benefit
    pension plan for certain U.S. employees. The amounts shown
    above are estimates based on the current funded status of the
    plan and discount rates required to be used for minimum funding
    purposes by the Pension Funding Act of 2004 that was enacted on
    April 10, 2004. The amounts also give effect to
    supplemental early retirement benefits that were granted in
    connection with restructuring initiatives, the sale of the
    grinding wheels business and expectations regarding future
    changes in discount rates for funding purposes. The amounts of
    actual contributions can be expected to vary based on factors
    such as returns on plan assets, changes in the plans
    discount rate and actuarial gains and losses.

36



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|    |  |                                                                                                                                                                                                                                                                                                                                                                                                                                             
|--- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(c) |  | Represents liabilities related to unfunded pension plans in the
    U.S. and Germany.                                                                                                                                                                                                                                                                                                                                                       
|   
|(d) |  | The amounts presented for unfunded pension benefits,
    postretirement medical benefits and insurance reserves are
    estimates based on current assumptions and expectations. Actual
    payments related to these obligations can be expected to differ
    from the amounts shown. The amounts shown for insurance reserves
    are net of expected recoveries from excess carriers and other
    third parties totaling $13.8 million.



Liquidity and Sources of Capital






5 8












37



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3 8




1 2


1 2




| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | purchase 114,990,000
    of
    the 115 million
    aggregate outstanding principal amount of Milacron Capital
    Holdings B.V.s
    75/8%
    Guaranteed Bonds due in April 2005 at the settlement of a tender
    offer therefor;                                                                                                                                                                                                                                  
|
| |  | terminate and repay $19 million of borrowings outstanding
    under the revolving A facility of the Credit Suisse First Boston
    facility, which included additional amounts borrowed subsequent
    to March 12, 2004. We also used $17.4 million of
    availability under our asset based facility to replace or
    provide credit support for the outstanding letters of credit
    under the revolving A facility of the Credit Suisse First Boston
    facility;
|
| |  | repay the $75 million term loan B facility of the
    Credit Suisse First Boston facility; and                                                                                                                                                                                                                                                                                                                                                                           
|
| |  | pay transaction expenses.                                                                                                                                                                                                                                                                                                                                                                                                                                                

1 2




38



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39



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1 2 1 2


1 2






40



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Cautionary Statement






| |   |                                                                                                                                                                                                                                                            
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | our ability to comply with financial and other covenants
    contained in the agreements governing our indebtedness,
    including our senior secured notes and asset based credit
    facility;                                                           
|
| |  | our ability to remediate or otherwise mitigate the identified
    material weakness in internal control over financial reporting,
    or any additional material weakness or significant deficiencies
    that may be identified;                          
|
| |  | global and regional economic conditions, consumer spending,
    capital spending levels and industrial production, particularly
    in segments related to the level of automotive production and
    spending in the plastics and construction industries;
|
| |  | fluctuations in currency exchange rates of U.S. and foreign
    countries, including countries in Europe and Asia where we have
    several principal manufacturing facilities and where many of our
    customers, competitors and suppliers are based;   
|
| |  | fluctuations in interest rates which affect the cost of
    borrowing;                                                                                                                                                                                     

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| |   |                                                                                                                                                                                                                                                                                                                          
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | production and pricing levels of important raw materials,
    including plastic resins, which are a key material used by
    purchasers of our plastics technologies products, as well as
    steel, oil and chemicals;                                                                                                  
|
| |  | lower than anticipated levels of plant utilization resulting in
    production inefficiencies and higher costs, whether related to
    the delay of new product introductions, improved production
    processes or equipment, or labor relations issues;                                                                
|
| |  | customer acceptance of new products introduced during 2004 and
    products expected to be introduced in 2005;                                                                                                                                                                                                           
|
| |  | any major disruption in production at key customer or supplier
    facilities or at our facilities;                                                                                                                                                                                                                      
|
| |  | disruptions in global or regional commerce due to wars, to
    social, civil or political unrest in the non-U.S. countries
    in which we operate and to acts of terrorism, continued threats
    of terrorism and military, political and economic responses
    (including heightened security measures) to terrorism;
|
| |  | alterations in trade conditions in and between the U.S. and
    non-U.S. countries where we do business, including export
    duties, import controls, quotas and other trade barriers;                                                                                                                                  
|
| |  | changes in tax, environmental and other laws and regulations in
    the U.S. and non-U.S. countries where we do business;                                                                                                                                                                                                
|
| |  | litigation, claims or assessments, including but not limited to
    claims or problems related to product liability, warranty or
    environmental issues; and                                                                                                                                                           
|
| |  | fluctuations in stock market valuations of pension plan assets
    or changes in interest rates that could result in increased
    pension expense and reduced shareholders equity and
    require us to make significant cash contributions in the future.                                                             






|         |                                                               
|-------- | --------------------------------------------------------------
|Item 7A. | Quantitative and Qualitative Disclosures About Market
    Risk








|        |                                            
|------- | -------------------------------------------
|Item 8. | Financial Statements and Supplementary Data



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MILACRON INC. AND SUBSIDIARIES


CONSOLIDATED STATEMENTS OF OPERATIONS


Years ended December 31, 2004, 2003 and 2002


|                                                                                                                |                                                     |                                |                       |       |       |       |        |       |       |       |        |       |       |       | 
|--------------------------------------------------------------------------------------------------------------- | --------------------------------------------------- | ------------------------------ | --------------------- | ----- | ----- | ----- | ------ | ----- | ----- | ----- | ------ | ----- | ----- | ----- | 
|                                                                                                                |                                                     | 2004                           |                       |       | 2003  |       |        | 2002  |      
|                                                                                                                |                                                     |                                |                       |       |       |       |        |       |      
|                                                                                                                |                                                     | (In millions, except per-share |                      
|                                                                                                                |                                                     | amounts)                       |                      
|Sales                                                                                                           |                                                     | $                              | 774.2                 |       |       | $     | 739.7  |       |       | $     | 693.2  |      
|                                                                                                                | Cost of products sold                               |                                |                       | 626.6 |       |       |        | 603.8 |       |       |        | 572.1 |      
|                                                                                                                | Cost of products sold related to restructuring      |                                |                       | 1.4   |       |       |        | 3.3   |       |       |        | 1.9   |      
|                                                                                                                |                                                     |                                |                       |       |       |       |        |       |      
|                                                                                                                |                                                     | Total cost of products sold    |                       |       | 628.0 |       |        |       | 607.1 |       |        |       | 574.0 |      
|                                                                                                                |                                                     |                                |                       |       |       |       |        |       |      
|                                                                                                                |                                                     |                                | Manufacturing margins |       |       | 146.2 |        |       |       | 132.6 |        |       |       | 119.2 | 
|Other costs and expenses                                                                                        |                                                     |                                |                       |       |       |       |        |       |       |       |        |      
|                                                                                                                | Selling and administrative                          |                                |                       | 126.9 |       |       |        | 129.0 |       |       |        | 121.0 |      
|                                                                                                                | Restructuring costs                                 |                                |                       | 11.6  |       |       |        | 23.8  |       |       |        | 12.0  |      
|                                                                                                                | Refinancing costs                                   |                                |                       | 21.4  |       |       |        | 1.8   |       |       |        |      |      
|                                                                                                                | Goodwill impairment charge                          |                                |                       |      |       |       |        | 65.6  |       |       |        | 1.0   |      
|                                                                                                                | Other expense  net                                 |                                |                       | 2.9   |       |       |        | (.2   | )     |       |        | (1.0  | )    
|                                                                                                                |                                                     |                                |                       |       |       |       |        |       |      
|                                                                                                                |                                                     | Total other costs and expenses |                       |       | 162.8 |       |        |       | 220.0 |       |        |       | 133.0 |      
|                                                                                                                |                                                     |                                |                       |       |       |       |        |       |      
|Operating loss                                                                                                  |                                                     |                                | (16.6                 | )     |       |       | (87.4  | )     |       |       | (13.8  | )    
|Interest                                                                                                        |                                                     |                                |                       |       |       |       |        |       |       |       |        |      
|                                                                                                                | Income                                              |                                |                       | 2.0   |       |       |        | 1.9   |       |       |        | 2.2   |      
|                                                                                                                | Expense                                             |                                |                       | (39.3 | )     |       |        | (24.9 | )     |       |        | (25.5 | )    
|                                                                                                                |                                                     |                                |                       |       |       |       |        |       |      
|                                                                                                                |                                                     | Interest  net                 |                       |       | (37.3 | )     |        |       | (23.0 | )     |        |       | (23.3 | )    
|                                                                                                                |                                                     |                                |                       |       |       |       |        |       |      
|Loss from continuing operations before income taxes and
    cumulative effect of change in method of accounting |                                                     |                                | (53.9                 | )     |       |       | (110.4 | )     |       |       | (37.1  | )    
|Provision (benefit) for income taxes                                                                            |                                                     |                                | (2.6                  | )     |       |       | 73.3   |       |       |       | (18.4  | )    
|                                                                                                                |                                                     |                                |                       |       |       |       |        |       |      
|Loss from continuing operations before cumulative effect of
    change in method of accounting                  |                                                     |                                | (51.3                 | )     |       |       | (183.7 | )     |       |       | (18.7  | )    
|Discontinued operations net of income taxes                                                                     |                                                     |                                |                       |       |       |       |        |       |       |       |        |      
|                                                                                                                | Loss from operations                                |                                |                       | (1.3  | )     |       |        | (6.4  | )     |       |        | (25.2 | )    
|                                                                                                                | Net gain (loss) on divestitures                     |                                |                       | .8    |       |       |        | (.8   | )     |       |        | 8.4   |      
|                                                                                                                |                                                     |                                |                       |       |       |       |        |       |      
|                                                                                                                |                                                     | Total discontinued operations  |                       |       | (.5   | )     |        |       | (7.2  | )     |        |       | (16.8 | )    
|Cumulative effect of change in method of accounting                                                             |                                                     |                                |                      |       |       |       |       |       |       |       | (187.7 | )    
|                                                                                                                |                                                     |                                |                       |       |       |       |        |       |      
|Net loss                                                                                                        |                                                     | $                              | (51.8                 | )     |       | $     | (190.9 | )     |       | $     | (223.2 | )    
|                                                                                                                |                                                     |                                |                       |       |       |       |        |       |      
|Loss per common share  basic and diluted                                                                       |                                                     |                                |                       |       |       |       |        |       |       |       |        |      
|                                                                                                                | Continuing operations                               |                                | $                     | (1.33 | )     |       | $      | (5.02 | )     |       | $      | (.52  | )    
|                                                                                                                | Discontinued operations                             |                                |                       | (.01  | )     |       |        | (.19  | )     |       |        | (.46  | )    
|                                                                                                                | Cumulative effect of change in method of accounting |                                |                       |      |       |       |        |      |       |       |        | (5.15 | )    
|                                                                                                                |                                                     |                                |                       |       |       |       |        |       |      
|Net loss                                                                                                        |                                                     | $                              | (1.34                 | )     |       | $     | ( 5.21 | )     |       | $     | (6.13  | )    
|                                                                                                                |                                                     |                                |                       |       |       |       |        |       |      



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MILACRON INC. AND SUBSIDIARIES


CONSOLIDATED BALANCE SHEETS


December 31, 2004 and 2003


|                                                     |                                                                                                                    |                                              |                                         |        |       |       |       |        |       |       | 
|---------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------ | -------------------------------------------- | --------------------------------------- | ------ | ----- | ----- | ----- | ------ | ----- | ----- | 
|                                                     |                                                                                                                    | 2004                                         |                                         |        | 2003  |      
|                                                     |                                                                                                                    |                                              |                                         |        |       |      
|                                                     |                                                                                                                    | (In millions, except                         |                                        
|                                                     |                                                                                                                    | par value)                                   |                                        
|ASSETS                                              
|Current assets                                       |                                                                                                                    |                                              |                                         |        |       |       |       |       
|                                                     | Cash and cash equivalents                                                                                          |                                              | $                                       | 69.2   |       |       | $     | 92.8   |      
|                                                     | Notes and accounts receivable, less allowances of $12.1 in 2004
    and $15.1 in 2003                              |                                              |                                         | 134.6  |       |       |       | 93.8   |      
|                                                     | Inventories                                                                                                        |                                              |                                         |        |       |       |       |        |      
|                                                     |                                                                                                                    | Raw materials                                |                                         |        | 8.1   |       |       |        | 8.2   |      
|                                                     |                                                                                                                    | Work-in-process and finished parts           |                                         |        | 69.2  |       |       |        | 69.4  |      
|                                                     |                                                                                                                    | Finished products                            |                                         |        | 76.6  |       |       |        | 71.9  |      
|                                                     |                                                                                                                    |                                              |                                         |        |       |      
|                                                     |                                                                                                                    |                                              | Total inventories                       |        |       | 153.9 |       |        |       | 149.5 | 
|                                                     |                                                                                                                    | Other current assets                         |                                         |        | 49.1  |       |       |        | 45.2  |      
|                                                     |                                                                                                                    |                                              |                                         |        |       |      
|                                                     |                                                                                                                    |                                              | Current assets of continuing operations |        |       | 406.8 |       |        |       | 381.3 | 
|                                                     |                                                                                                                    | Assets of discontinued operations            |                                         |        |      |       |       |        | 7.2   |      
|                                                     |                                                                                                                    |                                              |                                         |        |       |      
|                                                     |                                                                                                                    |                                              | Total current assets                    |        |       | 406.8 |       |        |       | 388.5 | 
|Property, plant and equipment  net                  |                                                                                                                    |                                              | 128.4                                   |        |       |       | 140.8 |       
|Goodwill                                             |                                                                                                                    |                                              | 86.6                                    |        |       |       | 83.8  |       
|Other noncurrent assets                              |                                                                                                                    |                                              | 118.1                                   |        |       |       | 120.3 |       
|                                                     |                                                                                                                    |                                              |                                         |        |       |      
|Total assets                                         |                                                                                                                    | $                                            | 739.9                                   |        |       | $     | 733.4 |       
|                                                     |                                                                                                                    |                                              |                                         |        |       |      
|                                                    
|LIABILITIES AND SHAREHOLDERS EQUITY (DEFICIT)      
|Current liabilities                                  |                                                                                                                    |                                              |                                         |        |       |       |       |       
|                                                     | Short-term borrowings                                                                                              |                                              | $                                       | 11.2   |       |       | $     | 42.6   |      
|                                                     | Long-term debt and capital lease obligations due within one year                                                   |                                              |                                         | 6.0    |       |       |       | 117.3  |      
|                                                     | Trade accounts payable                                                                                             |                                              |                                         | 80.3   |       |       |       | 67.9   |      
|                                                     | Advance billings and deposits                                                                                      |                                              |                                         | 18.6   |       |       |       | 15.2   |      
|                                                     | Accrued and other current liabilities                                                                              |                                              |                                         | 97.3   |       |       |       | 116.1  |      
|                                                     |                                                                                                                    |                                              |                                         |        |       |      
|                                                     |                                                                                                                    | Current liabilities of continuing operations |                                         |        | 213.4 |       |       |        | 359.1 |      
|                                                     | Liabilities of discontinued operations                                                                             |                                              |                                         |       |       |       |       | 1.8    |      
|                                                     |                                                                                                                    |                                              |                                         |        |       |      
|                                                     |                                                                                                                    | Total current liabilities                    |                                         |        | 213.4 |       |       |        | 360.9 |      
|Long-term accrued liabilities                        |                                                                                                                    |                                              | 240.2                                   |        |       |       | 232.6 |       
|Long-term debt                                       |                                                                                                                    |                                              | 235.9                                   |        |       |       | 163.5 |       
|                                                     |                                                                                                                    |                                              |                                         |        |       |      
|                                                     | Total liabilities                                                                                                  |                                              |                                         | 689.5  |       |       |       | 757.0  |      
|Commitments and contingencies                        |                                                                                                                    |                                              |                                        |        |       |       |      |       
|Shareholders equity (deficit)                       |                                                                                                                    |                                              |                                         |        |       |       |       |       
|                                                     | 4% Cumulative Preferred shares                                                                                     |                                              |                                         | 6.0    |       |       |       | 6.0    |      
|                                                     | 6% Series B Convertible Preferred Stock, $.01 par
    value (outstanding: .5 in 2004)                              |                                              |                                         | 112.9  |       |       |       |       |      
|                                                     | Common shares, $.01 par value in 2004 and $1.00 par
    value in 2003 (outstanding: 48.6 in 2004 and 34.8 in 2003) |                                              |                                         | .5     |       |       |       | 34.8   |      
|                                                     | Capital in excess of par value                                                                                     |                                              |                                         | 347.2  |       |       |       | 284.0  |      
|                                                     | Contingent warrants                                                                                                |                                              |                                         | .5     |       |       |       |       |      
|                                                     | Accumulated deficit                                                                                                |                                              |                                         | (312.7 | )     |       |       | (241.7 | )    
|                                                     | Accumulated other comprehensive loss                                                                               |                                              |                                         | (104.0 | )     |       |       | (106.7 | )    
|                                                     |                                                                                                                    |                                              |                                         |        |       |      
|                                                     |                                                                                                                    | Total shareholders equity (deficit)         |                                         |        | 50.4  |       |       |        | (23.6 | )    
|                                                     |                                                                                                                    |                                              |                                         |        |       |      
|Total liabilities and shareholders equity (deficit) |                                                                                                                    | $                                            | 739.9                                   |        |       | $     | 733.4 |       
|                                                     |                                                                                                                    |                                              |                                         |        |       |      



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MILACRON INC. AND SUBSIDIARIES


CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME AND
SHAREHOLDERS


EQUITY (DEFICIT)


Years ended December 31, 2004, 2003 and 2002


|                                                        |                                                          |                                                                   |                                         |        |        |       |        |        |        |     |        |        |        |      |  
|------------------------------------------------------- | -------------------------------------------------------- | ----------------------------------------------------------------- | --------------------------------------- | ------ | ------ | ----- | ------ | ------ | ------ | --- | ------ | ------ | ------ | ---- | -
|                                                        |                                                          | 2004                                                              |                                         |        | 2003   |       |        | 2002   |       
|                                                        |                                                          |                                                                   |                                         |        |        |       |        |        |       
|                                                        |                                                          | (In millions)                                                     |                                        
|4% Cumulative Preferred shares                          |                                                          |                                                                   |                                         |        |        |       |        |        |        |     |        |       
|                                                        | Balance at beginning and end of period                   |                                                                   | $                                       | 6.0    |        |       | $      | 6.0    |        |     | $      | 6.0    |       
|6% Series B Convertible Preferred Stock                 |                                                          |                                                                   |                                         |        |        |       |        |        |        |     |        |       
|                                                        | Balance at beginning of period                           |                                                                   |                                         |       |        |       |        |       |        |     |        |       |       
|                                                        |                                                          | Net proceeds from issuance                                        |                                         |        | 97.0   |       |        |        |       |     |        |        |       |     
|                                                        |                                                          | Beneficial conversion feature                                     |                                         |        | 15.9   |       |        |        |       |     |        |        |       |     
|                                                        |                                                          |                                                                   |                                         |        |        |       |        |        |       
|                                                        | Balance at end of period                                 |                                                                   |                                         | 112.9  |        |       |        |       |        |     |        |       |       
|Common shares                                           |                                                          |                                                                   |                                         |        |        |       |        |        |        |     |        |       
|                                                        | Balance at beginning of period                           |                                                                   |                                         | 318.8  |        |       |        | 317.3  |        |     |        | 314.9  |       
|                                                        |                                                          | Stock options exercised and net restricted stock activity         |                                         |        | 3.1    |       |        |        | .2     |     |        |        | .5     |     
|                                                        |                                                          | Reissuance of treasury shares                                     |                                         |        | 1.6    |       |        |        | 1.3    |     |        |        | 1.9    |     
|                                                        |                                                          | Beneficial conversion feature related to Series A Notes           |                                         |        | 6.6    |       |        |        |       |     |        |        |       |     
|                                                        |                                                          | Conversion of Series A Notes to common stock                      |                                         |        | 28.1   |       |        |        |       |     |        |        |       |     
|                                                        |                                                          | Conversion to Series B Convertible Preferred Stock                |                                         |        | (34.6  | )     |        |        |       |     |        |        |       |     
|                                                        |                                                          | Net proceeds from rights offering                                 |                                         |        | 24.1   |       |        |        |       |     |        |        |       |     
|                                                        |                                                          |                                                                   |                                         |        |        |       |        |        |       
|                                                        | Balance at end of period                                 |                                                                   |                                         | 347.7  |        |       |        | 318.8  |        |     |        | 317.3  |       
|Contingent warrants                                     |                                                          |                                                                   |                                         |        |        |       |        |        |        |     |        |       
|                                                        | Balance at beginning of period                           |                                                                   |                                         |       |        |       |        |       |        |     |        |       |       
|                                                        |                                                          | Issuance of contingent warrants                                   |                                         |        | .5     |       |        |        |       |     |        |        |       |     
|                                                        |                                                          |                                                                   |                                         |        |        |       |        |        |       
|                                                        | Balance at end of period                                 |                                                                   |                                         | .5     |        |       |        |       |        |     |        |       |       
|Retained earnings (accumulated deficit)                 |                                                          |                                                                   |                                         |        |        |       |        |        |        |     |        |       
|                                                        | December 31, 2001 balance as originally reported         |                                                                   |                                         |        |        |       |        |        |        |     |        | 165.0  |       
|                                                        | Effect of restatement for change in method of accounting |                                                                   |                                         |        |        |       |        |        |        |     |        | 9.8    |       
|                                                        |                                                          |                                                                   |                                         |        |        |       |        |        |       
|                                                        | Balance at beginning of period                           |                                                                   |                                         | (241.7 | )      |       |        | (50.0  | )      |     |        | 174.8  |       
|                                                        |                                                          | Net loss for the period                                           |                                         |        | (51.8  | )     |        |        | (190.9 | )   |        |        | (223.2 | )   
|                                                        |                                                          | Dividends paid and declared                                       |                                         |        |        |       |        |        |        |     |        |        |        |     
|                                                        |                                                          |                                                                   | 4% Cumulative Preferred shares          |        |        | (.4   | )      |        |        | (.1 | )      |        |        | (.2  | )
|                                                        |                                                          |                                                                   | 6% Series B Convertible Preferred Stock |        |        | (2.9  | )      |        |        |    |        |        |        |     |  
|                                                        |                                                          |                                                                   | Common shares                           |        |        |      |        |        |        | (.7 | )      |        |        | (1.4 | )
|                                                        |                                                          | Beneficial conversion feature related to Series B
    Convertible |                                         |        |        |       |        |        |        |     |        |        |        |     
|                                                        |                                                          |                                                                   | Preferred Stock                         |        |        | (15.9 | )      |        |        |    |        |        |        |     |  
|                                                        |                                                          |                                                                   |                                         |        |        |       |        |        |       
|                                                        |                                                          | Balance at end of period                                          |                                         |        | (312.7 | )     |        |        | (241.7 | )   |        |        | (50.0  | )   
|Accumulated other comprehensive income (loss)           |                                                          |                                                                   |                                         |        |        |       |        |        |        |     |        |       
|                                                        | Balance at beginning of period                           |                                                                   |                                         | (106.7 | )      |       |        | (129.8 | )      |     |        | (51.0  | )     
|                                                        |                                                          | Foreign currency translation adjustments                          |                                         |        | 15.9   |       |        |        | 8.5    |     |        |        | 5.9    |     
|                                                        |                                                          | Minimum pension liability adjustment                              |                                         |        | (13.0  | )     |        |        | 14.6   |     |        |        | (95.4  | )   
|                                                        |                                                          | Other                                                             |                                         |        | (.2    | )     |        |        |       |     |        |        | 10.7   |     
|                                                        |                                                          |                                                                   |                                         |        |        |       |        |        |       
|                                                        | Balance at end of period                                 |                                                                   |                                         | (104.0 | )      |       |        | (106.7 | )      |     |        | (129.8 | )     
|                                                        |                                                          |                                                                   |                                         |        |        |       |        |        |       
|Total shareholders equity (deficit)                    |                                                          | $                                                                 | 50.4                                    |        |        | $     | (23.6  | )      |        | $   | 143.5  |       
|                                                        |                                                          |                                                                   |                                         |        |        |       |        |        |       
|Net loss for the period                                 |                                                          | $                                                                 | (51.8                                   | )      |        | $     | (190.9 | )      |        |     | (223.2 | )     
|Change in accumulated other comprehensive income (loss) |                                                          |                                                                   | 2.7                                     |        |        |       | 23.1   |        |        |     | (78.8  | )     
|                                                        |                                                          |                                                                   |                                         |        |        |       |        |        |       
|Total comprehensive loss                                |                                                          | $                                                                 | (49.1                                   | )      |        | $     | (167.8 | )      |        | $   | (302.0 | )     
|                                                        |                                                          |                                                                   |                                         |        |        |       |        |        |       



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MILACRON INC. AND SUBSIDIARIES


CONSOLIDATED STATEMENTS OF CASH FLOWS


Years ended December 31, 2004, 2003 and 2002


|                                                                      |                                 |                                                     |                                                  |                                                  |        |      |       |      |        |       |       |   |        |        |       |  
|--------------------------------------------------------------------- | ------------------------------- | --------------------------------------------------- | ------------------------------------------------ | ------------------------------------------------ | ------ | ---- | ----- | ---- | ------ | ----- | ----- | - | ------ | ------ | ----- | -
|                                                                      |                                 | 2004                                                |                                                  |                                                  | 2003   |      |       | 2002 |       
|                                                                      |                                 |                                                     |                                                  |                                                  |        |      |       |      |       
|                                                                      |                                 | (In millions)                                       |                                                 
|Increase (decrease) in cash and cash equivalents                      |                                 |                                                     |                                                  |                                                  |        |      |       |      |        |       |       |  
|                                                                      | Operating activities cash flows |                                                     |                                                  |                                                  |        |      |       |      |        |       |       |   |       
|                                                                      |                                 | Net loss                                            |                                                  | $                                                | (51.8  | )    |       | $    | (190.9 | )     |       | $ | (223.2 | )     
|                                                                      |                                 | Cumulative effect of change in method of accounting |                                                  |                                                  |       |      |       |      |       |       |       |   | 187.7  |       
|                                                                      |                                 | Operating activities providing (using) cash         |                                                  |                                                  |        |      |       |      |        |       |       |   |        |       
|                                                                      |                                 |                                                     | Loss from discontinued operations                |                                                  |        | 1.3  |       |      |        | 6.4   |       |   |        | 25.2   |      
|                                                                      |                                 |                                                     | Net (gain) loss on divestitures                  |                                                  |        | (.8  | )     |      |        | .8    |       |   |        | (8.4   | )    
|                                                                      |                                 |                                                     | Depreciation and amortization                    |                                                  |        | 20.3 |       |      |        | 21.7  |       |   |        | 23.0   |      
|                                                                      |                                 |                                                     | Restructuring costs                              |                                                  |        | 13.0 |       |      |        | 27.1  |       |   |        | 13.9   |      
|                                                                      |                                 |                                                     | Refinancing costs                                |                                                  |        | 21.4 |       |      |        | 1.8   |       |   |        |       |      
|                                                                      |                                 |                                                     | Goodwill impairment charge                       |                                                  |        |     |       |      |        | 65.6  |       |   |        | 1.0    |      
|                                                                      |                                 |                                                     | Deferred income taxes                            |                                                  |        | 8.7  |       |      |        | 73.9  |       |   |        | (16.9  | )    
|                                                                      |                                 |                                                     | Working capital changes                          |                                                  |        |      |       |      |        |       |       |   |        |        |      
|                                                                      |                                 |                                                     |                                                  | Notes and accounts receivable                    |        |      | (36.1 | )    |        |       | 6.6   |   |        |        | 9.7   |  
|                                                                      |                                 |                                                     |                                                  | Inventories                                      |        |      | (1.1  | )    |        |       | 22.3  |   |        |        | 36.4  |  
|                                                                      |                                 |                                                     |                                                  | Other current assets                             |        |      | 3.0   |      |        |       | 13.9  |   |        |        | 2.4   |  
|                                                                      |                                 |                                                     |                                                  | Trade accounts payable                           |        |      | 9.3   |      |        |       | (6.1  | ) |        |        | 6.9   |  
|                                                                      |                                 |                                                     |                                                  | Other current liabilities                        |        |      | (30.4 | )    |        |       | (31.3 | ) |        |        | (10.9 | )
|                                                                      |                                 |                                                     | Decrease (increase) in other noncurrent assets   |                                                  |        | 3.0  |       |      |        | (.6   | )     |   |        | (7.0   | )    
|                                                                      |                                 |                                                     | Decrease in long-term accrued liabilities        |                                                  |        | (1.9 | )     |      |        | (2.7  | )     |   |        | (4.2   | )    
|                                                                      |                                 |                                                     | Other  net                                      |                                                  |        | .4   |       |      |        | 1.5   |       |   |        | .3     |      
|                                                                      |                                 |                                                     |                                                  |                                                  |        |      |       |      |       
|                                                                      |                                 |                                                     |                                                  | Net cash provided (used) by operating activities |        |      | (41.7 | )    |        |       | 10.0  |   |        |        | 35.9  |  
|                                                                      | Investing activities cash flows |                                                     |                                                  |                                                  |        |      |       |      |        |       |       |   |       
|                                                                      |                                 | Capital expenditures                                |                                                  |                                                  | (8.8   | )    |       |      | (6.5   | )     |       |   | (6.2   | )     
|                                                                      |                                 | Net disposals of property, plant and equipment      |                                                  |                                                  | .6     |      |       |      | 2.5    |       |       |   | 7.5    |       
|                                                                      |                                 | Divestitures                                        |                                                  |                                                  | 8.0    |      |       |      | (20.3  | )     |       |   | 303.9  |       
|                                                                      |                                 | Acquisitions                                        |                                                  |                                                  |       |      |       |      | (6.5   | )     |       |   | (4.3   | )     
|                                                                      |                                 |                                                     |                                                  |                                                  |        |      |       |      |       
|                                                                      |                                 |                                                     | Net cash provided (used) by investing activities |                                                  |        | (.2  | )     |      |        | (30.8 | )     |   |        | 300.9  |      
|                                                                      | Financing activities cash flows |                                                     |                                                  |                                                  |        |      |       |      |        |       |       |   |       
|                                                                      |                                 | Issuance of long-term debt                          |                                                  |                                                  | 219.8  |      |       |      |       |       |       |   | 11.5   |       
|                                                                      |                                 | Repayments of long-term debt                        |                                                  |                                                  | (261.5 | )    |       |      | (2.2   | )     |       |   | (1.3   | )     
|                                                                      |                                 | Increase (decrease) in short-term borrowings        |                                                  |                                                  | 68.5   |      |       |      | (2.6   | )     |       |   | (311.6 | )     
|                                                                      |                                 | Issuance of common shares                           |                                                  |                                                  | 25.2   |      |       |      |       |       |       |   | .4     |       
|                                                                      |                                 | Debt issuance costs                                 |                                                  |                                                  | (27.8  | )    |       |      |       |       |       |   |       |       
|                                                                      |                                 | Dividends paid                                      |                                                  |                                                  | (3.3   | )    |       |      | (.8    | )     |       |   | (1.6   | )     
|                                                                      |                                 |                                                     |                                                  |                                                  |        |      |       |      |       
|                                                                      |                                 |                                                     | Net cash provided (used) by financing activities |                                                  |        | 20.9 |       |      |        | (5.6  | )     |   |        | (302.6 | )    
|Effect of exchange rate fluctuations on cash and cash
    equivalents |                                 |                                                     | 1.6                                              |                                                  |        |      | 8.8   |      |        |       | 5.6   |  
|Cash flows related to discontinued operations                         |                                 |                                                     | (4.2                                             | )                                                |        |      | (11.9 | )    |        |       | (7.6  | )
|                                                                      |                                 |                                                     |                                                  |                                                  |        |      |       |      |       
|Increase (decrease) in cash and cash equivalents                      |                                 |                                                     | (23.6                                            | )                                                |        |      | (29.5 | )    |        |       | 32.2  |  
|Cash and cash equivalents at beginning of year                        |                                 |                                                     | 92.8                                             |                                                  |        |      | 122.3 |      |        |       | 90.1  |  
|                                                                      |                                 |                                                     |                                                  |                                                  |        |      |       |      |       
|Cash and cash equivalents at end of year                              |                                 | $                                                   | 69.2                                             |                                                  |        | $    | 92.8  |      |        | $     | 122.3 |  
|                                                                      |                                 |                                                     |                                                  |                                                  |        |      |       |      |       



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MILACRON INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


Summary of Significant Accounting Policies




| |                      
| | ---------------------
| | Basis of Presentation





| |                 
| | ----------------
| | Use of Estimates





| |              
| | -------------
| | Consolidation





| |                             
| | ----------------------------
| | Foreign Currency Translation





| |                    
| | -------------------
| | Revenue Recognition









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MILACRON INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






| |                  
| | -----------------
| | Advertising Costs





| |             
| | ------------
| | Income Taxes





| |                          
| | -------------------------
| | Earnings Per Common Share







| |                          
| | -------------------------
| | Cash and Cash Equivalents





| |                    
| | -------------------
| | Inventory Valuation





| |                              
| | -----------------------------
| | Property, Plant and Equipment



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MILACRON INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                              |  |                   |               | 
|----------------------------- |  | ----------------- | ------------- | 
|                              |  | Range of          |              
|Asset                         |  | Depreciation Life |              
|                              |  |                   |              
|Buildings (new)               |  |                   | 25  45 years | 
|Buildings (used)              |  |                   | 20  30 years | 
|Land improvements             |  |                   | 10  20 years | 
|Building components           |  |                   | 5  45 years  | 
|Factory machinery             |  |                   | 6  12 years  | 
|Vehicles                      |  |                   | 3  6 years   | 
|Office furniture and fixtures |  |                   | 5  10 years  | 
|Computers                     |  |                   | 3  5 years   | 
|Personal computers            |  |                   | 3 years       | 





| |         
| | --------
| | Goodwill





| |                  
| | -----------------
| | Long-Lived Assets





| |                  
| | -----------------
| | Warranty Reserves





| |                        
| | -----------------------
| | Self-Insurance Reserves



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MILACRON INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)








| |                         
| | ------------------------
| | Retirement Benefit Plans





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MILACRON INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




| |                         
| | ------------------------
| | Stock-Based Compensation





| |               
| | --------------
| | Pro Forma Loss

|                                                                          |             |                      |       |       |      |   |        |       |   |   |        |       |  
|------------------------------------------------------------------------- | ----------- | -------------------- | ----- | ----- | ---- | - | ------ | ----- | - | - | ------ | ----- | -
|                                                                          |             | 2004                 |       |       | 2003 |   |        | 2002  |  
|                                                                          |             |                      |       |       |      |   |        |       |  
|                                                                          |             | (In millions, except |      
|                                                                          |             | per-share amounts)   |      
|Net loss as reported                                                      |             | $                    | (51.8 | )     |      | $ | (190.9 | )     |   | $ | (223.2 | )    
|Effect on reported loss of accounting for stock options at fair
    value |             |                      | (1.2  | )     |      |   | (1.1   | )     |   |   | (2.2   | )    
|                                                                          |             |                      |       |       |      |   |        |       |  
|Pro forma net loss                                                        |             | $                    | (53.0 | )     |      | $ | (192.0 | )     |   | $ | (225.4 | )    
|                                                                          |             |                      |       |       |      |   |        |       |  
|Loss per common share  basic and diluted                                 |             |                      |       |       |      |   |        |       |   |   |        |      
|                                                                          | As reported |                      | $     | (1.34 | )    |   | $      | (5.21 | ) |   | $      | (6.13 | )
|                                                                          |             |                      |       |       |      |   |        |       |  
|                                                                          | Pro forma   |                      | $     | (1.37 | )    |   | $      | (5.24 | ) |   | $      | (6.19 | )
|                                                                          |             |                      |       |       |      |   |        |       |  









| |                                 
| | --------------------------------
| | Derivative Financial Instruments





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MILACRON INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






| |                                 
| | --------------------------------
| | Changes in Methods of Accounting









| |                               
| | ------------------------------
| | Recently Issued Pronouncements



Discontinued Operations






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MILACRON INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)













| |                                  
| | ---------------------------------
| | Loss From Discontinued Operations

|                                                                  |  |               |      |   |      |   |      |      |  |   |       |  
|----------------------------------------------------------------- |  | ------------- | ---- | - | ---- | - | ---- | ---- |  | - | ----- | -
|                                                                  |  | 2004          |      |   | 2003 |   |      | 2002 | 
|                                                                  |  |               |      |   |      |   |      |      | 
|                                                                  |  | (In millions) |     
|Sales                                                             |  | $             | 9.6  |   |      | $ | 51.6 |      |  | $ | 325.0 |  
|                                                                  |  |               |      |   |      |   |      |      | 
|Operating loss including restructuring costs                      |  |               | (1.2 | ) |      |   | (5.1 | )    |  |   | (26.8 | )
|Allocated interest expense                                        |  |               | (.1  | ) |      |   | (1.3 | )    |  |   | (10.9 | )
|                                                                  |  |               |      |   |      |   |      |      | 
|Loss before income taxes and minority shareholders
    interests |  |               | (1.3 | ) |      |   | (6.4 | )    |  |   | (37.7 | )
|Benefit for income taxes                                          |  |               |     |   |      |   |     |      |  |   | (10.4 | )
|                                                                  |  |               |      |   |      |   |      |      | 
|Loss before minority shareholders interests                      |  |               | (1.3 | ) |      |   | (6.4 | )    |  |   | (27.3 | )
|Minority shareholders interests                                  |  |               |     |   |      |   |     |      |  |   | (2.1  | )
|                                                                  |  |               |      |   |      |   |      |      | 
|Loss from discontinued operations                                 |  | $             | (1.3 | ) |      | $ | (6.4 | )    |  | $ | (25.2 | )
|                                                                  |  |               |      |   |      |   |      |      | 



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MILACRON INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






| |                                                          
| | ---------------------------------------------------------
| | Gain (Loss) on Divestiture of Discontinued
    Operations

|                                                                                 |  |               |     |   |      |   |      |      |  |   |       |  
|-------------------------------------------------------------------------------- |  | ------------- | --- | - | ---- | - | ---- | ---- |  | - | ----- | -
|                                                                                 |  | 2004          |     |   | 2003 |   |      | 2002 | 
|                                                                                 |  |               |     |   |      |   |      |      | 
|                                                                                 |  | (In millions) |    
|Gain on sale of Valenite                                                         |  | $             | (.4 | ) |      | $ | .4   |      |  | $ | 31.3  |  
|Loss on sale of Widia and Werkö                                                  |  |               | .5  |   |      |   | .9   |      |  |   | (14.9 | )
|Loss on sale of round metalcutting tools business                                |  |               | (.5 | ) |      |   | (2.2 | )    |  |   | (4.7  | )
|Loss on sale of grinding wheels business                                         |  |               | .6  |   |      |   | 1.0  |      |  |   | (5.2  | )
|Adjustment of reserves for the 1998 divestiture of the machine
    tools segment |  |               | .6  |   |      |   | (.9  | )    |  |   | 1.9   |  
|                                                                                 |  |               |     |   |      |   |      |      | 
|Net gain (loss) on divestitures                                                  |  | $             | .8  |   |      | $ | (.8  | )    |  | $ | 8.4   |  
|                                                                                 |  |               |     |   |      |   |      |      | 





| |                                                  
| | -------------------------------------------------
| | Assets and Liabilities of Discontinued Operations

|                                  |                   |               |     |     | 
|--------------------------------- | ----------------- | ------------- | --- | --- | 
|                                  |                   | 2003          |    
|                                  |                   |               |    
|                                  |                   | (In millions) |    
|Notes and accounts receivable     |                   | $             | .4  |    
|Inventories                       |                   |               | 4.1 |    
|Other current assets              |                   |               | .2  |    
|Property, plant and equipment-net |                   |               | 2.5 |    
|                                  |                   |               |    
|                                  | Total assets      |               |     | 7.2 | 
|Trade accounts payable            |                   |               | 1.1 |    
|Other current liabilities         |                   |               | .5  |    
|Long-term accrued liabilities     |                   |               | .2  |    
|                                  |                   |               |    
|                                  | Total liabilities |               |     | 1.8 | 
|                                  |                   |               |    
|Net assets                        |                   | $             | 5.4 |    
|                                  |                   |               |    

Goodwill Impairment Charge








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MILACRON INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


Restructuring Costs










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MILACRON INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)












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MILACRON INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)












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MILACRON INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






| |                    
| | -------------------
| | Restructuring Costs

|                                                   |                                      |                                                               |                |     |      |     |      |      |     |     |      |     |     |     | 
|-------------------------------------------------- | ------------------------------------ | ------------------------------------------------------------- | -------------- | --- | ---- | --- | ---- | ---- | --- | --- | ---- | --- | --- | --- | 
|                                                   |                                      | 2004                                                          |                |     | 2003 |     |      | 2002 |    
|                                                   |                                      |                                                               |                |     |      |     |      |      |    
|                                                   |                                      | (In millions)                                                 |               
|Accruals for restructuring costs                   |                                      |                                                               |                |     |      |     |      |      |     |     |      |    
|                                                   | Termination benefits                 |                                                               | $              | 2.5 |      |     | $    | 8.7  |     |     | $    | 2.0 |    
|                                                   | Facility exit costs                  |                                                               |                | .2  |      |     |      | .4   |     |     |      | .9  |    
|                                                   |                                      |                                                               |                |     |      |     |      |      |    
|                                                   |                                      |                                                               | Total accruals |     |      | 2.7 |      |      |     | 9.1 |      |     |     | 2.9 | 
|Supplemental retirement benefits                   |                                      |                                                               |               |     |      |     | 3.2  |      |     |     | 2.9  |    
|Adjustment of assets to realizable values(a)       |                                      |                                                               | 6.3            |     |      |     | 4.1  |      |     |     | .4   |    
|Other restructuring costs                          |                                      |                                                               |                |     |      |     |      |      |     |     |      |    
|                                                   | Costs charged to expense as incurred |                                                               |                |     |      |     |      |      |     |     |      |     |    
|                                                   |                                      | Inventory adjustments related to product line discontinuation |                |     | 1.4  |     |      |      | 3.3 |     |      |     | 1.9 |    
|                                                   |                                      | Inventory and machinery relocation                            |                |     | 1.2  |     |      |      | 1.5 |     |      |     | .1  |    
|                                                   |                                      | Employee relocation and other move costs                      |                |     |     |     |      |      | 1.1 |     |      |     | .1  |    
|                                                   |                                      | Severance and facility exist costs                            |                |     | .8   |     |      |      | 3.7 |     |      |     | 1.3 |    
|                                                   |                                      | Other                                                         |                |     | .5   |     |      |      | 1.1 |     |      |     | .2  |    
|                                                   | Reserve adjustments                  |                                                               |                | (.2 | )    |     |      | (1.8 | )   |     |      | (.5 | )  
|                                                   |                                      |                                                               |                |     |      |     |      |      |    
|                                                   |                                      |                                                               | 12.7           |     |      |     | 25.3 |      |     |     | 9.3  |    
|Costs related to the EOC and Reform integration(a) |                                      |                                                               | .3             |     |      |     | 1.8  |      |     |     | 4.6  |    
|                                                   |                                      |                                                               |                |     |      |     |      |      |    
|Total restructuring costs                          |                                      | $                                                             | 13.0           |     |      | $   | 27.1 |      |     | $   | 13.9 |    
|                                                   |                                      |                                                               |                |     |      |     |      |      |    






|    |  |                                                                                                                                                                                                                           
|--- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | In 2004, the amounts presented on these lines include
    $6.2 million of non-cash charges recorded in the fourth
    quarter to adjust the carrying values of idle plant and
    equipment to expected realizable values.





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MILACRON INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






| |                       
| | ----------------------
| | Restructuring Reserves

|                                                |                      |               |     |     |           |   |           |       |  |        |         |      |   |   |     |     | 
|----------------------------------------------- | -------------------- | ------------- | --- | --- | --------- | - | --------- | ----- |  | ------ | ------- | ---- | - | - | --- | --- | 
|                                                |                      | 2004          |    
|                                                |                      |               |    
|                                                |                      | Beginning     |     |     |           |   | Usage and |       |  | Ending |        
|                                                |                      | Balance       |     |     | Additions |   |           | Other |  |        | Balance |     
|                                                |                      |               |     |     |           |   |           |       |  |        |         |     
|                                                |                      | (In millions) |    
|EOC and Reform integration                      |                      |               |     |     |           |   |           |       |  |        |         |      |   |   |     |    
|                                                | Termination benefits |               | $   | 1.3 |           |   | $         |      |  |        | $       | (.3  | ) |   | $   | 1.0 | 
|                                                | Facility exit costs  |               |     | .3  |           |   |           |      |  |        |         |     |   |   |     | .3  | 
|                                                |                      |               |     |     |           |   |           |       |  |        |         |     
|                                                |                      |               | 1.6 |     |           |   |          |       |  |        | (.3     | )    |   |   | 1.3 |    
|Restructuring costs                             |                      |               |     |     |           |   |           |       |  |        |         |      |   |   |     |    
|                                                | Termination benefits |               |     | 4.5 |           |   |           | 2.5   |  |        |         | (5.7 | ) |   |     | 1.3 | 
|                                                | Facility exit costs  |               |     | .4  |           |   |           | .2    |  |        |         | (.4  | ) |   |     | .2  | 
|                                                |                      |               |     |     |           |   |           |       |  |        |         |     
|                                                |                      |               | 4.9 |     |           |   | 2.7       |       |  |        | (6.1    | )    |   |   | 1.5 |    
|                                                |                      |               |     |     |           |   |           |       |  |        |         |     
|Total reserves related to continuing operations |                      | $             | 6.5 |     |           | $ | 2.7       |       |  | $      | (6.4    | )    |   | $ | 2.8 |    
|                                                |                      |               |     |     |           |   |           |       |  |        |         |     

|                                                |                      |               |     |     |           |   |           |       |  |        |         |      |   |   |     |     | 
|----------------------------------------------- | -------------------- | ------------- | --- | --- | --------- | - | --------- | ----- |  | ------ | ------- | ---- | - | - | --- | --- | 
|                                                |                      | 2003          |    
|                                                |                      |               |    
|                                                |                      | Beginning     |     |     |           |   | Usage and |       |  | Ending |        
|                                                |                      | Balance       |     |     | Additions |   |           | Other |  |        | Balance |     
|                                                |                      |               |     |     |           |   |           |       |  |        |         |     
|                                                |                      | (In millions) |    
|EOC and Reform integration                      |                      |               |     |     |           |   |           |       |  |        |         |      |   |   |     |    
|                                                | Termination benefits |               | $   | 1.7 |           |   | $         |      |  |        | $       | (.4  | ) |   | $   | 1.3 | 
|                                                | Facility exit costs  |               |     |    |           |   |           | .3    |  |        |         |     |   |   |     | .3  | 
|                                                |                      |               |     |     |           |   |           |       |  |        |         |     
|                                                |                      |               | 1.7 |     |           |   | .3        |       |  |        | (.4     | )    |   |   | 1.6 |    
|Restructuring costs                             |                      |               |     |     |           |   |           |       |  |        |         |      |   |   |     |    
|                                                | Termination benefits |               |     | 3.1 |           |   |           | 8.7   |  |        |         | (7.3 | ) |   |     | 4.5 | 
|                                                | Facility exit costs  |               |     | .6  |           |   |           | .4    |  |        |         | (.6  | ) |   |     | .4  | 
|                                                |                      |               |     |     |           |   |           |       |  |        |         |     
|                                                |                      |               | 3.7 |     |           |   | 9.1       |       |  |        | (7.9    | )    |   |   | 4.9 |    
|                                                |                      |               |     |     |           |   |           |       |  |        |         |     
|Total reserves related to continuing operations |                      | $             | 5.4 |     |           | $ | 9.4       |       |  | $      | (8.3    | )    |   | $ | 6.5 |    
|                                                |                      |               |     |     |           |   |           |       |  |        |         |     



Refinancing Costs


5 8


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##### Table of Contents



MILACRON INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




Acquisitions










| |                               
| | ------------------------------
| | Allocation of Acquisition Cost

|                              |                   |               |     |     |      |   |    |     | 
|----------------------------- | ----------------- | ------------- | --- | --- | ---- | - | -- | --- | 
|                              |                   | 2003          |     |     | 2002 |  
|                              |                   |               |     |     |      |  
|                              |                   | (In millions) |    
|Cash and cash equivalents     |                   | $             | .4  |     |      | $ |   |    
|Accounts receivable           |                   |               | 1.5 |     |      |   | .4 |    
|Inventories                   |                   |               | .3  |     |      |   | .7 |    
|Other current assets          |                   |               | .1  |     |      |   |   |    
|Property, plant and equipment |                   |               | .2  |     |      |   | .3 |    
|Goodwill                      |                   |               |    |     |      |   | .4 |    
|                              |                   |               |     |     |      |  
|                              | Total assets      |               |     | 2.5 |      |   |    | 1.8 | 
|Current liabilities           |                   |               | 1.4 |     |      |   | .8 |    
|Long-term debt                |                   |               |    |     |      |   | .1 |    
|                              |                   |               |     |     |      |  
|                              | Total liabilities |               |     | 1.4 |      |   |    | .9  | 
|                              |                   |               |     |     |      |  
|Total acquisition cost        |                   | $             | 1.1 |     |      | $ | .9 |    
|                              |                   |               |     |     |      |  



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MILACRON INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


Research and Development






| |                         
| | ------------------------
| | Research and Development

|                         |  |               |      |  |      |   |      |      |  |   |      | 
|------------------------ |  | ------------- | ---- |  | ---- | - | ---- | ---- |  | - | ---- | 
|                         |  | 2004          |      |  | 2003 |   |      | 2002 | 
|                         |  |               |      |  |      |   |      |      | 
|                         |  | (In millions) |     
|Research and development |  | $             | 19.8 |  |      | $ | 17.8 |      |  | $ | 15.8 | 
|                         |  |               |      |  |      |   |      |      | 

Retirement Benefit Plans






| |                         
| | ------------------------
| | Pension Expense (Income)

|                                                 |  |               |       |   |      |   |       |      |  |   |       |  
|------------------------------------------------ |  | ------------- | ----- | - | ---- | - | ----- | ---- |  | - | ----- | -
|                                                 |  | 2004          |       |   | 2003 |   |       | 2002 | 
|                                                 |  |               |       |   |      |   |       |      | 
|                                                 |  | (In millions) |      
|Service cost (benefits earned during the period) |  | $             | 4.2   |   |      | $ | 4.5   |      |  | $ | 4.6   |  
|Interest cost on projected benefit obligation    |  |               | 33.8  |   |      |   | 33.4  |      |  |   | 34.5  |  
|Expected return on plan assets                   |  |               | (35.1 | ) |      |   | (38.8 | )    |  |   | (45.9 | )
|Supplemental retirement benefits(a)              |  |               |      |   |      |   | 3.2   |      |  |   | 4.7   |  
|Amortization of unrecognized prior service cost  |  |               | .8    |   |      |   | .8    |      |  |   | .8    |  
|Amortization of unrecognized gains and losses    |  |               | 7.0   |   |      |   | 3.1   |      |  |   | .5    |  
|                                                 |  |               |       |   |      |   |       |      | 
|Pension expense (income)                         |  | $             | 10.7  |   |      | $ | 6.2   |      |  | $ | (.8   | )
|                                                 |  |               |       |   |      |   |       |      | 






|    |  |                                                                                                                                                                                                                                                                                           
|--- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | In 2003, the entire amount is included in the line captioned
    Restructuring costs in the Consolidated Statement of
    Operations for that year. In 2002, $2.9 million is included
    in restructuring costs and $1.8 million is included in
    results of discontinued operations.





| |                             
| | ----------------------------
| | Projected Benefit Obligation

|                                         |  |               |        |   |      |   |        |  
|---------------------------------------- |  | ------------- | ------ | - | ---- | - | ------ | -
|                                         |  | 2004          |        |   | 2003 |  
|                                         |  |               |        |   |      |  
|                                         |  | (In millions) |       
|Balance at beginning of year             |  | $             | (537.3 | ) |      | $ | (527.2 | )
|Service cost                             |  |               | (4.2   | ) |      |   | (4.5   | )
|Interest cost                            |  |               | (33.8  | ) |      |   | (33.4  | )
|Benefits paid                            |  |               | 42.8   |   |      |   | 39.3   |  
|Actuarial gain (loss)                    |  |               | (6.1   | ) |      |   | 12.6   |  
|Merger of subsidiary plan                |  |               |       |   |      |   | (4.0   | )
|Supplemental retirement benefits         |  |               |       |   |      |   | (3.2   | )
|Changes in discount rates                |  |               | (16.6  | ) |      |   | (14.6  | )
|Foreign currency translation adjustments |  |               | (1.1   | ) |      |   | (2.3   | )
|                                         |  |               |        |   |      |  
|Balance at end of year                   |  | $             | (556.3 | ) |      | $ | (537.3 | )
|                                         |  |               |        |   |      |  

61



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MILACRON INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






| |            
| | -----------
| | Plan Assets

|                              |  |               |       |   |      |   |       |  
|----------------------------- |  | ------------- | ----- | - | ---- | - | ----- | -
|                              |  | 2004          |       |   | 2003 |  
|                              |  |               |       |   |      |  
|                              |  | (In millions) |      
|Balance at beginning of year  |  | $             | 370.9 |   |      | $ | 342.7 |  
|Actual investment gain (loss) |  |               | 44.0  |   |      |   | 61.4  |  
|Benefits and expenses paid    |  |               | (40.3 | ) |      |   | (37.0 | )
|Contributions                 |  |               | 4.2   |   |      |   |      |  
|Merger of subsidiary plan     |  |               |      |   |      |   | 3.8   |  
|                              |  |               |       |   |      |  
|Balance at end of year        |  | $             | 378.8 |   |      | $ | 370.9 |  
|                              |  |               |       |   |      |  





| |                          
| | -------------------------
| | Allocation of Plan Assets

|                          |  |      |     |   |      |  |     |  
|------------------------- |  | ---- | --- | - | ---- |  | --- | -
|                          |  | 2004 |     |   | 2003 | 
|                          |  |      |     |   |      | 
|Equity securities         |  |      | 69  | % |      |  | 65  | %
|Debt securities           |  |      | 31  | % |      |  | 34  | %
|Cash and cash equivalents |  |      |    | % |      |  | 1   | %
|                          |  |      |     |   |      | 
|                          |  |      | 100 | % |      |  | 100 | %
|                          |  |      |     |   |      | 









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MILACRON INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






| |                          
| | -------------------------
| | Funded Status at Year-End

|                                                                          |  |               |        |   |      |   |        |  
|------------------------------------------------------------------------- |  | ------------- | ------ | - | ---- | - | ------ | -
|                                                                          |  | 2004          |        |   | 2003 |  
|                                                                          |  |               |        |   |      |  
|                                                                          |  | (In millions) |       
|Vested benefit obligation                                                 |  | $             | (506.7 | ) |      | $ | (487.1 | )
|                                                                          |  |               |        |   |      |  
|Accumulated benefit obligation                                            |  | $             | (519.0 | ) |      | $ | (500.6 | )
|                                                                          |  |               |        |   |      |  
|Projected benefit obligation                                              |  | $             | (541.1 | ) |      | $ | (523.3 | )
|Plan assets at fair value                                                 |  |               | 378.8  |   |      |   | 370.9  |  
|                                                                          |  |               |        |   |      |  
|Deficiency of plan assets in relation to projected benefit
    obligation |  |               | (162.3 | ) |      |   | (152.4 | )
|Unrecognized net loss                                                     |  |               | 166.9  |   |      |   | 164.4  |  
|Unrecognized prior service cost                                           |  |               | 3.6    |   |      |   | 4.1    |  
|                                                                          |  |               |        |   |      |  
|Prepaid pension cost                                                      |  | $             | 8.2    |   |      | $ | 16.1   |  
|                                                                          |  |               |        |   |      |  





| |                           
| | --------------------------
| | Balance Sheet Presentation

|                                        |  |               |        |   |      |   |        |  
|--------------------------------------- |  | ------------- | ------ | - | ---- | - | ------ | -
|                                        |  | 2004          |        |   | 2003 |  
|                                        |  |               |        |   |      |  
|                                        |  | (In millions) |       
|Intangible asset                        |  | $             | 3.6    |   |      | $ | 3.5    |  
|Accrued pension cost                    |  |               | (140.5 | ) |      |   | (119.6 | )
|Accumulated other comprehensive loss(a) |  |               | 145.1  |   |      |   | 132.2  |  
|                                        |  |               |        |   |      |  
|                                        |  | $             | 8.2    |   |      | $ | 16.1   |  
|                                        |  |               |        |   |      |  






|    |  |                                                                                                                                                                 
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | Represents the pretax amount of cumulative after-tax charges to
    accumulated other comprehensive loss of $93.8 million in
    2004 and $80.8 million in 2003.







| |                   
| | ------------------
| | Status at Year-End

|                               |  |               |       |   |      |   |       |  
|------------------------------ |  | ------------- | ----- | - | ---- | - | ----- | -
|                               |  | 2004          |       |   | 2003 |  
|                               |  |               |       |   |      |  
|                               |  | (In millions) |      
|Vested benefit obligation      |  | $             | (11.4 | ) |      | $ | (10.4 | )
|                               |  |               |       |   |      |  
|Accumulated benefit obligation |  | $             | (13.2 | ) |      | $ | (12.1 | )
|                               |  |               |       |   |      |  
|Projected benefit obligation   |  | $             | (15.2 | ) |      | $ | (14.0 | )
|Unrecognized net (gain) loss   |  |               | (.6   | ) |      |   | .3    |  
|                               |  |               |       |   |      |  
|Accrued pension cost           |  | $             | (15.8 | ) |      | $ | (13.7 | )
|                               |  |               |       |   |      |  

63



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MILACRON INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






| |                      
| | ---------------------
| | Actuarial Assumptions

|                                                 |  |      |      |   |      |  |      |      |  |  |      |  
|------------------------------------------------ |  | ---- | ---- | - | ---- |  | ---- | ---- |  |  | ---- | -
|                                                 |  | 2004 |      |   | 2003 |  |      | 2002 | 
|                                                 |  |      |      |   |      |  |      |      | 
|Discount rate                                    |  |      | 6.24 | % |      |  | 6.49 | %    |  |  | 7.23 | %
|Expected long-term rate of return on plan assets |  |      | 9.00 | % |      |  | 9.00 | %    |  |  | 9.50 | %
|Rate of increase in future compensation levels   |  |      | 3.66 | % |      |  | 2.41 | %    |  |  | .73  | %





| |                      
| | ---------------------
| | Actuarial Assumptions

|                                               |  |      |      |   |      |  |      |  
|---------------------------------------------- |  | ---- | ---- | - | ---- |  | ---- | -
|                                               |  | 2004 |      |   | 2003 | 
|                                               |  |      |      |   |      | 
|Discount rate                                  |  |      | 6.00 | % |      |  | 6.24 | %
|Rate of increase on future compensation levels |  |      | 3.66 | % |      |  | 3.69 | %





| |                         
| | ------------------------
| | Pension Benefit Payments

|          |  |               |       | 
|--------- |  | ------------- | ----- | 
|          |  | (In millions) |      
|2005      |  | $             | 36.6  | 
|2006      |  |               | 36.1  | 
|2007      |  |               | 35.7  | 
|2008      |  |               | 35.6  | 
|2009      |  |               | 35.8  | 
|2010-2104 |  |               | 186.9 | 





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MILACRON INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






| |                                
| | -------------------------------
| | Postretirement Health Care Cost

|                                                               |  |               |     |   |      |   |     |      |  |   |     |  
|-------------------------------------------------------------- |  | ------------- | --- | - | ---- | - | --- | ---- |  | - | --- | -
|                                                               |  | 2004          |     |   | 2003 |   |     | 2002 | 
|                                                               |  |               |     |   |      |   |     |      | 
|                                                               |  | (In millions) |    
|Service cost (benefits earned during the period)               |  | $             | .1  |   |      | $ | .1  |      |  | $ | .1  |  
|Interest cost on accumulated postretirement benefit obligation |  |               | 1.4 |   |      |   | 1.5 |      |  |   | 1.7 |  
|Amortization of unrecognized gains                             |  |               | (.2 | ) |      |   | (.3 | )    |  |   | (.4 | )
|                                                               |  |               |     |   |      |   |     |      | 
|Postretirement health care cost                                |  | $             | 1.3 |   |      | $ | 1.3 |      |  | $ | 1.4 |  
|                                                               |  |               |     |   |      |   |     |      | 





| |                                              
| | ---------------------------------------------
| | Accumulated Postretirement Benefit Obligation

|                             |  |               |       |   |      |   |       |  
|---------------------------- |  | ------------- | ----- | - | ---- | - | ----- | -
|                             |  | 2004          |       |   | 2003 |  
|                             |  |               |       |   |      |  
|                             |  | (In millions) |      
|Balance at beginning of year |  | $             | (23.2 | ) |      | $ | (24.9 | )
|Service cost                 |  |               | (.1   | ) |      |   | (.1   | )
|Interest cost                |  |               | (1.4  | ) |      |   | (1.5  | )
|Participant contributions    |  |               | (5.7  | ) |      |   | (5.0  | )
|Benefits paid                |  |               | 8.4   |   |      |   | 7.9   |  
|Actuarial gain (loss)        |  |               | (.4   | ) |      |   | .8    |  
|Changes in discount rates    |  |               | (.4   | ) |      |   | (.4   | )
|                             |  |               |       |   |      |  
|Balance at end of year       |  | $             | (22.8 | ) |      | $ | (23.2 | )
|                             |  |               |       |   |      |  





| |                                            
| | -------------------------------------------
| | Accrued Postretirement Health Care Benefits

|                                              |                                    |               |       |       |      |   |       |       |  
|--------------------------------------------- | ---------------------------------- | ------------- | ----- | ----- | ---- | - | ----- | ----- | -
|                                              |                                    | 2004          |       |       | 2003 |  
|                                              |                                    |               |       |       |      |  
|                                              |                                    | (In millions) |      
|Accumulated postretirement benefit obligation |                                    |               |       |       |      |   |       |      
|                                              | Retirees                           |               | $     | (16.9 | )    |   | $     | (17.3 | )
|                                              | Fully eligible active participants |               |       | (1.6  | )    |   |       | (1.7  | )
|                                              | Other active participants          |               |       | (4.3  | )    |   |       | (4.2  | )
|                                              |                                    |               |       |       |      |  
|                                              |                                    |               | (22.8 | )     |      |   | (23.2 | )    
|Unrecognized net gain                         |                                    |               | (4.5  | )     |      |   | (5.5  | )    
|                                              |                                    |               |       |       |      |  
|Accrued postretirement health care benefits   |                                    | $             | (27.3 | )     |      | $ | (28.7 | )    
|                                              |                                    |               |       |       |      |  

65



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MILACRON INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






| |                      
| | ---------------------
| | Actuarial Assumptions

|                                              |  |      |      |   |      |  |      |      |  |  |      |  
|--------------------------------------------- |  | ---- | ---- | - | ---- |  | ---- | ---- |  |  | ---- | -
|                                              |  | 2004 |      |   | 2003 |  |      | 2002 | 
|                                              |  |      |      |   |      |  |      |      | 
|Accumulated postretirement benefit obligation |  |      | 6.00 | % |      |  | 6.25 | %    |  |  | 6.50 | %
|Postretirement health care cost               |  |      | 6.25 | % |      |  | 6.50 | %    |  |  | 7.25 | %







| |                                    
| | -----------------------------------
| | Postretirement Health Care Benefits

|          |  |               |     | 
|--------- |  | ------------- | --- | 
|          |  | (In millions) |    
|2005      |  | $             | 2.6 | 
|2006      |  |               | 2.5 | 
|2007      |  |               | 2.3 | 
|2008      |  |               | 2.2 | 
|2009      |  |               | 2.1 | 
|2010-2014 |  |               | 8.7 | 



Income Taxes




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NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)












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NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)
















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MILACRON INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






| |                                                  
| | -------------------------------------------------
| | Components of Deferred Tax Assets and Liabilities

|                         |                                                                                                             |                                |                                                 |       |        |      |      |      |        |      | 
|------------------------ | ----------------------------------------------------------------------------------------------------------- | ------------------------------ | ----------------------------------------------- | ----- | ------ | ---- | ---- | ---- | ------ | ---- | 
|                         |                                                                                                             | 2004                           |                                                 |       | 2003   |     
|                         |                                                                                                             |                                |                                                 |       |        |     
|                         |                                                                                                             | (In millions)                  |                                                
|Deferred tax assets      |                                                                                                             |                                |                                                 |       |        |      |      |     
|                         | Net operating loss carryforwards                                                                            |                                | $                                               | 111.2 |        |      | $    | 95.2 |       
|                         | Tax credit carryforwards                                                                                    |                                |                                                 | 14.2  |        |      |      | 12.4 |       
|                         | Accrued postretirement health care benefits                                                                 |                                |                                                 | 8.5   |        |      |      | 9.3  |       
|                         | Inventories, due principally to obsolescence reserves and
    additional costs inventoried for tax purposes |                                |                                                 | 4.8   |        |      |      | 6.3  |       
|                         | Accrued employee benefits other than pensions and retiree health
    care benefits                          |                                |                                                 | 1.7   |        |      |      | 3.4  |       
|                         | Accrued pension cost                                                                                        |                                |                                                 | 8.8   |        |      |      | 8.5  |       
|                         | Accrued warranty cost                                                                                       |                                |                                                 | 1.2   |        |      |      | 1.8  |       
|                         | Accrued taxes                                                                                               |                                |                                                 | 2.1   |        |      |      | 3.0  |       
|                         | Accounts receivable, due principally to allowances for doubtful
    accounts                                |                                |                                                 | 1.7   |        |      |      | 1.8  |       
|                         | Goodwill                                                                                                    |                                |                                                 | 39.2  |        |      |      | 46.0 |       
|                         | Deferred pension costs                                                                                      |                                |                                                 | 41.1  |        |      |      | 35.7 |       
|                         | Accrued liabilities and other                                                                               |                                |                                                 | 11.8  |        |      |      | 15.2 |       
|                         |                                                                                                             |                                |                                                 |       |        |     
|                         |                                                                                                             | Total deferred tax assets      |                                                 |       | 246.3  |      |      |      | 238.6  |     
|                         |                                                                                                             | Less valuation allowances      |                                                 |       | (157.1 | )    |      |      | (139.8 | )   
|                         |                                                                                                             |                                |                                                 |       |        |     
|                         |                                                                                                             |                                | Deferred tax assets net of valuation allowances |       |        | 89.2 |      |      |        | 98.8 | 
|Deferred tax liabilities |                                                                                                             |                                |                                                 |       |        |      |      |     
|                         | Property, plant and equipment, due principally to differences in
    depreciation methods                   |                                |                                                 | 8.5   |        |      |      | 8.2  |       
|                         | Inventories                                                                                                 |                                |                                                 | 9.5   |        |      |      | 12.8 |       
|                         |                                                                                                             |                                |                                                 |       |        |     
|                         |                                                                                                             | Total deferred tax liabilities |                                                 |       | 18.0   |      |      |      | 21.0   |     
|                         |                                                                                                             |                                |                                                 |       |        |     
|Net deferred tax assets  |                                                                                                             | $                              | 71.2                                            |       |        | $    | 77.8 |     
|                         |                                                                                                             |                                |                                                 |       |        |     





| |                         
| | ------------------------
| | Loss Before Income Taxes

|              |  |               |       |   |      |   |         |      |  |   |        |  
|------------- |  | ------------- | ----- | - | ---- | - | ------- | ---- |  | - | ------ | -
|              |  | 2004          |       |   | 2003 |   |         | 2002 | 
|              |  |               |       |   |      |   |         |      | 
|              |  | (In millions) |      
|United States |  | $             | (59.7 | ) |      | $ | (96.7   | )    |  | $ | (26.1  | )
|Non-U.S.      |  |               | 5.8   |   |      |   | (13.7   | )    |  |   | (11.0  | )
|              |  |               |       |   |      |   |         |      | 
|              |  | $             | (53.9 | ) |      | $ | ( 110.4 | )    |  | $ | ( 37.1 | )
|              |  |               |       |   |      |   |         |      | 



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MILACRON INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






| |                                     
| | ------------------------------------
| | Provision (Benefit) for Income Taxes

|                            |                              |                 |       |   |       |   |      |      |      |   |       |   |       |  
|--------------------------- | ---------------------------- | --------------- | ----- | - | ----- | - | ---- | ---- | ---- | - | ----- | - | ----- | -
|                            |                              | 2004            |       |   | 2003  |   |      | 2002 |     
|                            |                              |                 |       |   |       |   |      |      |     
|                            |                              | (In millions)   |      
|Current provision (benefit) |                              |                 |       |   |       |   |      |      |      |   |       |  
|                            |                              | United States   |       | $ | (12.5 | ) |      | $    | (1.8 | ) |       | $ | (4.4  | )
|                            |                              | State and local |       |   | .1    |   |      |      |     |   |       |   | .2    |  
|                            |                              | Non-U.S.        |       |   | 1.1   |   |      |      | 1.2  |   |       |   | 2.7   |  
|                            |                              |                 |       |   |       |   |      |      |     
|                            |                              |                 | (11.3 | ) |       |   | (.6  | )    |      |   | (1.5  | )
|                            | Deferred provision (benefit) |                 |       |   |       |   |      |      |      |   |       |   |      
|                            |                              | United States   |       |   | 2.7   |   |      |      | 68.7 |   |       |   | (12.5 | )
|                            |                              | Non-U.S.        |       |   | 6.0   |   |      |      | 5.2  |   |       |   | (4.4  | )
|                            |                              |                 |       |   |       |   |      |      |     
|                            |                              |                 | 8.7   |   |       |   | 73.9 |      |      |   | (16.9 | )
|                            |                              |                 |       |   |       |   |      |      |     
|                            |                              | $               | (2.6  | ) |       | $ | 73.3 |      |      | $ | (18.4 | )
|                            |                              |                 |       |   |       |   |      |      |     



| |                                                                    
| | -------------------------------------------------------------------
| | Components of the Provision (Benefit) for Deferred Income
    Taxes

|                                                                                    |  |               |       |   |      |   |       |      |  |   |       |  
|----------------------------------------------------------------------------------- |  | ------------- | ----- | - | ---- | - | ----- | ---- |  | - | ----- | -
|                                                                                    |  | 2004          |       |   | 2003 |   |       | 2002 | 
|                                                                                    |  |               |       |   |      |   |       |      | 
|                                                                                    |  | (In millions) |      
|Change in valuation allowances                                                      |  | $             | 17.3  |   |      | $ | 104.6 |      |  | $ | 19.2  |  
|Change in deferred taxes related to operating loss and tax
    credit carryforwards |  |               | (17.8 | ) |      |   | (30.5 | )    |  |   | (31.7 | )
|Depreciation and amortization                                                       |  |               | 7.1   |   |      |   | 6.0   |      |  |   | 6.3   |  
|Inventories and accounts receivable                                                 |  |               | (1.7  | ) |      |   | 1.2   |      |  |   | (4.6  | )
|Accrued pension and other employee costs                                            |  |               | (4.0  | ) |      |   | 4.7   |      |  |   | 3.1   |  
|Other                                                                               |  |               | 7.8   |   |      |   | (12.1 | )    |  |   | (9.2  | )
|                                                                                    |  |               |       |   |      |   |       |      | 
|                                                                                    |  | $             | 8.7   |   |      | $ | 73.9  |      |  | $ | (16.9 | )
|                                                                                    |  |               |       |   |      |   |       |      | 



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MILACRON INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




| |                                                                        
| | -----------------------------------------------------------------------
| | Reconciliation of the U.S. Statutory Rate to the Tax
    Provision Rate

|                                   |                                                      |      |       |       |      |  |       |      |  |  |       |       |  
|---------------------------------- | ---------------------------------------------------- | ---- | ----- | ----- | ---- |  | ----- | ---- |  |  | ----- | ----- | -
|                                   |                                                      | 2004 |       |       | 2003 |  |       | 2002 | 
|                                   |                                                      |      |       |       |      |  |       |      | 
|U.S. statutory tax rate            |                                                      |      | (35.0 | )%    |      |  | (35.0 | )%   |  |  | (35.0 | )%   
|Increase (decrease) resulting from |                                                      |      |       |       |      |  |       |      |  |  |       |      
|                                   | Effect of changes in valuation allowances            |      |       | 37.9  |      |  |       | 94.7 |  |  |       | 31.5  |  
|                                   | Losses without current tax benefits                  |      |       |      |      |  |       |     |  |  |       | (.2   | )
|                                   | Adjustment of tax reserves                           |      |       | (19.5 | )    |  |       |     |  |  |       | (4.6  | )
|                                   | Statutory tax rate changes                           |      |       | .9    |      |  |       |     |  |  |       |      |  
|                                   | Effect of operations outside the U.S.                |      |       |      |      |  |       |     |  |  |       | (37.7 | )
|                                   | State and local income taxes, net of federal benefit |      |       | .2    |      |  |       |     |  |  |       | (2.1  | )
|                                   | Foreign dividends                                    |      |       | 12.4  |      |  |       | 6.7  |  |  |       | 1.0   |  
|                                   | Other                                                |      |       | (1.7  | )    |  |       |     |  |  |       | (2.6  | )
|                                   |                                                      |      |       |       |      |  |       |      | 
|                                   |                                                      |      | (4.8  | )%    |      |  | 66.4  | %    |  |  | (49.7 | )%   
|                                   |                                                      |      |       |       |      |  |       |      | 



5 8




Earnings Per Common Share






| |                                           
| | ------------------------------------------
| | Earnings Applicable to Common Shareholders

|                                       |  |               |       |   |      |   |        |      |  |   |        |  
|-------------------------------------- |  | ------------- | ----- | - | ---- | - | ------ | ---- |  | - | ------ | -
|                                       |  | 2004          |       |   | 2003 |   |        | 2002 | 
|                                       |  |               |       |   |      |   |        |      | 
|                                       |  | (In millions) |      
|Net loss                               |  | $             | (51.8 | ) |      | $ | (190.9 | )    |  | $ | (223.2 | )
|Dividends on preferred shares          |  |               | (3.1  | ) |      |   | (.2    | )    |  |   | (.2    | )
|                                       |  |               |       |   |      |   |        |      | 
|Loss applicable to common shareholders |  | $             | (54.9 | ) |      | $ | (191.1 | )    |  | $ | (223.4 | )
|                                       |  |               |       |   |      |   |        |      | 

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MILACRON INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




| |                         
| | ------------------------
| | Reconciliation of Shares

|                                                       |  |                |        |  |      |  |        |      |  |  |        | 
|------------------------------------------------------ |  | -------------- | ------ |  | ---- |  | ------ | ---- |  |  | ------ | 
|                                                       |  | 2004           |        |  | 2003 |  |        | 2002 | 
|                                                       |  |                |        |  |      |  |        |      | 
|                                                       |  | (In thousands) |       
|Weighted-average common shares outstanding             |  |                | 40,955 |  |      |  | 36,660 |      |  |  | 36,465 | 
|Effect of dilutive stock options and restricted shares |  |                |       |  |      |  |       |      |  |  |       | 
|                                                       |  |                |        |  |      |  |        |      | 
|Weighted-average common shares assuming dilution       |  |                | 40,955 |  |      |  | 36,660 |      |  |  | 36,465 | 
|                                                       |  |                |        |  |      |  |        |      | 





Receivables








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MILACRON INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




Inventories




Goodwill and Other Intangible Assets








| |                    
| | -------------------
| | Changes in Goodwill

|                                         |  |               |      |  |              |   |    |              |  |   |            |  |  |       |      |  |  |   |      | 
|---------------------------------------- |  | ------------- | ---- |  | ------------ | - | -- | ------------ |  | - | ---------- |  |  | ----- | ---- |  |  | - | ---- | 
|                                         |  | 2004          |     
|                                         |  |               |     
|                                         |  | Machinery     |      |  |             
|                                         |  | Technologies  |      |  | Machinery    |   |    |             
|                                         |  | North         |      |  | Technologies |   |    | Mold         |  |   | Industrial |  |  |      
|                                         |  | America       |      |  | Europe       |   |    | Technologies |  |   | Fluids     |  |  | Total |     
|                                         |  |               |      |  |              |   |    |              |  |   |            |  |  |       |     
|                                         |  | (In millions) |     
|Balance at beginning of year             |  | $             | 17.5 |  |              | $ | .7 |              |  | $ | 55.4       |  |  | $     | 10.2 |  |  | $ | 83.8 | 
|Foreign currency translation adjustments |  |               | .1   |  |              |   | .1 |              |  |   | 2.6        |  |  |       |     |  |  |   | 2.8  | 
|                                         |  |               |      |  |              |   |    |              |  |   |            |  |  |       |     
|Balance at end of year                   |  | $             | 17.6 |  |              | $ | .8 |              |  | $ | 58.0       |  |  | $     | 10.2 |  |  | $ | 86.6 | 
|                                         |  |               |      |  |              |   |    |              |  |   |            |  |  |       |     

|                                         |  |               |      |  |              |   |    |              |  |   |            |   |  |       |      |  |  |   |       |  
|---------------------------------------- |  | ------------- | ---- |  | ------------ | - | -- | ------------ |  | - | ---------- | - |  | ----- | ---- |  |  | - | ----- | -
|                                         |  | 2003          |     
|                                         |  |               |     
|                                         |  | Machinery     |      |  |             
|                                         |  | Technologies  |      |  | Machinery    |   |    |             
|                                         |  | North         |      |  | Technologies |   |    | Mold         |  |   | Industrial |   |  |      
|                                         |  | America       |      |  | Europe       |   |    | Technologies |  |   | Fluids     |   |  | Total |     
|                                         |  |               |      |  |              |   |    |              |  |   |            |   |  |       |     
|                                         |  | (In millions) |     
|Balance at beginning of year             |  | $             | 17.3 |  |              | $ | .5 |              |  | $ | 115.3      |   |  | $     | 10.2 |  |  | $ | 143.3 |  
|Goodwill acquired                        |  |               |     |  |              |   |   |              |  |   | .2         |   |  |       |     |  |  |   | .2    |  
|Impairment charges                       |  |               |     |  |              |   |   |              |  |   | (65.6      | ) |  |       |     |  |  |   | (65.6 | )
|Foreign currency translation adjustments |  |               | .2   |  |              |   | .2 |              |  |   | 5.5        |   |  |       |     |  |  |   | 5.9   |  
|                                         |  |               |      |  |              |   |    |              |  |   |            |   |  |       |     
|Balance at end of year                   |  | $             | 17.5 |  |              | $ | .7 |              |  | $ | 55.4       |   |  | $     | 10.2 |  |  | $ | 83.8  |  
|                                         |  |               |      |  |              |   |    |              |  |   |            |   |  |       |     

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MILACRON INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


Property, Plant and Equipment






| |                                  
| | ---------------------------------
| | Property, Plant and Equipment-Net

|                              |  |               |        |   |      |   |        |  
|----------------------------- |  | ------------- | ------ | - | ---- | - | ------ | -
|                              |  | 2004          |        |   | 2003 |  
|                              |  |               |        |   |      |  
|                              |  | (In millions) |       
|Land                          |  | $             | 11.3   |   |      | $ | 10.7   |  
|Buildings                     |  |               | 132.5  |   |      |   | 125.2  |  
|Machinery and equipment       |  |               | 218.2  |   |      |   | 211.6  |  
|                              |  |               |        |   |      |  
|                              |  |               | 362.0  |   |      |   | 347.5  |  
|Less accumulated depreciation |  |               | (233.6 | ) |      |   | (206.7 | )
|                              |  |               |        |   |      |  
|                              |  | $             | 128.4  |   |      | $ | 140.8  |  
|                              |  |               |        |   |      |  

Other Assets






| |                     
| | --------------------
| | Other Current Assets

|                                           |  |               |      |  |      |   |      | 
|------------------------------------------ |  | ------------- | ---- |  | ---- | - | ---- | 
|                                           |  | 2004          |      |  | 2003 |  
|                                           |  |               |      |  |      |  
|                                           |  | (In millions) |     
|Deferred income taxes                      |  | $             | 26.2 |  |      | $ | 27.9 | 
|Recoverable from excess liability carriers |  |               | 4.1  |  |      |   |     | 
|Refundable income taxes                    |  |               | 3.5  |  |      |   | 2.7  | 
|Other                                      |  |               | 15.3 |  |      |   | 14.6 | 
|                                           |  |               |      |  |      |  
|                                           |  | $             | 49.1 |  |      | $ | 45.2 | 
|                                           |  |               |      |  |      |  



| |                        
| | -----------------------
| | Other Noncurrent Assets

|                                                  |  |               |       |  |      |   |       | 
|------------------------------------------------- |  | ------------- | ----- |  | ---- | - | ----- | 
|                                                  |  | 2004          |       |  | 2003 |  
|                                                  |  |               |       |  |      |  
|                                                  |  | (In millions) |      
|Deferred income taxes net of valuation allowances |  | $             | 63.1  |  |      | $ | 70.9  | 
|Recoverable from excess liability carriers        |  |               | 9.7   |  |      |   | 4.7   | 
|Intangible assets other than goodwill             |  |               | 5.1   |  |      |   | 6.5   | 
|Other                                             |  |               | 40.2  |  |      |   | 38.2  | 
|                                                  |  |               |       |  |      |  
|                                                  |  | $             | 118.1 |  |      | $ | 120.3 | 
|                                                  |  |               |       |  |      |  

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MILACRON INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


Liabilities






| |                                      
| | -------------------------------------
| | Accrued and Other Current Liabilities

|                                                                                |  |               |      |  |      |   |       | 
|------------------------------------------------------------------------------- |  | ------------- | ---- |  | ---- | - | ----- | 
|                                                                                |  | 2004          |      |  | 2003 |  
|                                                                                |  |               |      |  |      |  
|                                                                                |  | (In millions) |     
|Accrued salaries, wages and other compensation                                  |  | $             | 24.0 |  |      | $ | 20.9  | 
|Taxes payable other than income taxes                                           |  |               | 9.9  |  |      |   | 10.8  | 
|Reserves for post-closing adjustments and transaction costs on
    divestitures |  |               | 4.9  |  |      |   | 9.4   | 
|Accrued and deferred income taxes                                               |  |               | 13.2 |  |      |   | 14.8  | 
|Accrued insurance and self-insurance reserves                                   |  |               | 14.1 |  |      |   | 11.7  | 
|Other accrued expenses                                                          |  |               | 31.2 |  |      |   | 48.5  | 
|                                                                                |  |               |      |  |      |  
|                                                                                |  | $             | 97.3 |  |      | $ | 116.1 | 
|                                                                                |  |               |      |  |      |  





| |                  
| | -----------------
| | Warranty Reserves

|                                         |  |               |      |   |      |   |      |  
|---------------------------------------- |  | ------------- | ---- | - | ---- | - | ---- | -
|                                         |  | 2004          |      |   | 2003 |  
|                                         |  |               |      |   |      |  
|                                         |  | (In millions) |     
|Balance at beginning of year             |  | $             | 8.1  |   |      | $ | 5.9  |  
|Accruals                                 |  |               | 4.2  |   |      |   | 4.9  |  
|Payments                                 |  |               | (5.6 | ) |      |   | (3.0 | )
|Warranty expirations                     |  |               | (.3  | ) |      |   | (.1  | )
|Foreign currency translation adjustments |  |               | .1   |   |      |   | .4   |  
|                                         |  |               |      |   |      |  
|Balance at end of year                   |  | $             | 6.5  |   |      | $ | 8.1  |  
|                                         |  |               |      |   |      |  





| |                              
| | -----------------------------
| | Long-Term Accrued Liabilities

|                                                                                |  |               |       |  |      |   |       | 
|------------------------------------------------------------------------------- |  | ------------- | ----- |  | ---- | - | ----- | 
|                                                                                |  | 2004          |       |  | 2003 |  
|                                                                                |  |               |       |  |      |  
|                                                                                |  | (In millions) |      
|Accrued pensions and other compensation                                         |  | $             | 39.9  |  |      | $ | 42.5  | 
|Minimum pension liability                                                       |  |               | 119.8 |  |      |   | 104.3 | 
|Accrued postretirement health care benefits                                     |  |               | 28.7  |  |      |   | 31.2  | 
|Self-insurance reserves(a)                                                      |  |               | 26.8  |  |      |   | 23.0  | 
|Accrued and deferred income taxes                                               |  |               | 11.4  |  |      |   | 21.5  | 
|Reserves for post-closing adjustments and transaction costs on
    divestitures |  |               | 7.1   |  |      |   | 2.4   | 
|Other                                                                           |  |               | 6.5   |  |      |   | 7.7   | 
|                                                                                |  |               |       |  |      |  
|                                                                                |  | $             | 240.2 |  |      | $ | 232.6 | 
|                                                                                |  |               |       |  |      |  






|    |  |                                                                                                                                                                                                                                                                                               
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | As presented in the above table, self-insurance reserves exclude
    expected recoveries from excess liability carriers and other
    third parties of $13.8 million in 2004 and
    $4.7 million in 2003. These amounts are included in other
    current assets and other noncurrent assets.

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MILACRON INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




| |                         
| | ------------------------
| | Refinancing Transactions

3 8




1 2




1 2




| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | purchase 114,990,000
    of
    the 115 million
    aggregate outstanding principal amount of Milacron Capital
    Holdings B.V.s
    75/8%
    Guaranteed Bonds due in April 2005 at the settlement of a tender
    offer therefor;                                                                                                                                                                                                                                           
|
| |  | terminate and repay $19 million of borrowings outstanding
    under the revolving A facility of the Credit Suisse First Boston
    facility, which included additional amounts borrowed subsequent
    to March 12, 2004. The company also used $17.4 million
    in availability under the asset based facility to replace or
    provide credit support for the outstanding letters of credit
    under the revolving A facility of the Credit Suisse First Boston
    facility;
|
| |  | repay the $75 million term loan B facility of the
    Credit Suisse First Boston facility; and                                                                                                                                                                                                                                                                                                                                                                                    
|
| |  | pay transaction expenses.                                                                                                                                                                                                                                                                                                                                                                                                                                                         



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NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




Short-Term Borrowings






| |                      
| | ---------------------
| | Short-Term Borrowings

|                                       |  |               |      |  |      |   |      | 
|-------------------------------------- |  | ------------- | ---- |  | ---- | - | ---- | 
|                                       |  | 2004          |      |  | 2003 |  
|                                       |  |               |      |  |      |  
|                                       |  | (In millions) |     
|Asset based credit facility due 2008   |  | $             | 11.0 |  |      | $ |     | 
|Revolving credit facility due 2004     |  |               |     |  |      |   | 42.0 | 
|Borrowings under other lines of credit |  |               | .2   |  |      |   | .6   | 
|                                       |  |               |      |  |      |  
|                                       |  | $             | 11.2 |  |      | $ | 42.6 | 
|                                       |  |               |      |  |      |  

1 2






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NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




1 2 1 2 1 2




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NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)










Long-Term Debt






| |               
| | --------------
| | Long-Term Debt

|                                         |  |               |       |   |      |   |        |  
|---------------------------------------- |  | ------------- | ----- | - | ---- | - | ------ | -
|                                         |  | 2004          |       |   | 2003 |  
|                                         |  |               |       |   |      |  
|                                         |  | (In millions) |      
|111/2% Senior
    Secured Notes due 2011 |  | $             | 220.1 |   |      | $ |       |  
|83/8% Notes
    due 2004                 |  |               |      |   |      |   | 115.0  |  
|75/8% Eurobonds
    due 2005             |  |               |      |   |      |   | 142.6  |  
|Capital lease obligations                |  |               | 15.9  |   |      |   | 17.1   |  
|Other                                    |  |               | 5.9   |   |      |   | 6.1    |  
|                                         |  |               |       |   |      |  
|                                         |  |               | 241.9 |   |      |   | 280.8  |  
|Less current maturities                  |  |               | (6.0  | ) |      |   | (117.3 | )
|                                         |  |               |       |   |      |  
|                                         |  | $             | 235.9 |   |      | $ | 163.5  |  
|                                         |  |               |       |   |      |  

3 8  5 8


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NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


1 2


1 2


1 2


1 2




1 2




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NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






| |                             
| | ----------------------------
| | Maturities of Long-Term Debt

|     |  |               |     | 
|---- |  | ------------- | --- | 
|     |  | (In millions) |    
|2005 |  | $             | 4.2 | 
|2006 |  |               | .9  | 
|2007 |  |               | .2  | 
|2008 |  |               | .2  | 
|2009 |  |               | .2  | 





| |                       
| | ----------------------
| | Capital Lease Payments

|                             |  |               |      |  
|---------------------------- |  | ------------- | ---- | -
|                             |  | (In millions) |     
|2005                         |  | $             | 2.9  |  
|2006                         |  |               | 2.8  |  
|2007                         |  |               | 2.7  |  
|2008                         |  |               | 2.8  |  
|2009                         |  |               | 4.6  |  
|After 2010                   |  |               | 3.8  |  
|                             |  |               |     
|Total capital lease payments |  |               | 19.6 |  
|Less interest component(a)   |  |               | (3.7 | )
|                             |  |               |     
|Capital lease obligations    |  | $             | 15.9 |  
|                             |  |               |     






|    |  |                                          
|--- |  | -----------------------------------------
|(a) |  | Includes $1.0 million applicable to 2005.





| |                
| | ---------------
| | Rental Payments

|           |  |               |      | 
|---------- |  | ------------- | ---- | 
|           |  | (In millions) |     
|2005       |  | $             | 11.8 | 
|2006       |  |               | 8.6  | 
|2007       |  |               | 5.7  | 
|2008       |  |               | 3.4  | 
|2009       |  |               | 1.7  | 
|After 2009 |  |               | 1.0  | 

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MILACRON INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




Shareholders Equity








| |   |                                                                                                                                                               
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | an increase in the number of authorized common shares from
    50.0 million to 165.0 million;                                                                 
|
| |  | a decrease in the par value of each common share from
    $1.00 per share to $.01 per share;                                                                  
|
| |  | the issuance of a new series of Series B Preferred Stock
    that is convertible into common shares; and                                                      
|
| |  | the issuance of contingent warrants which will be exercisable to
    purchase additional shares of the companys common stock
    under certain circumstances.





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NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)












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NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)














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NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




| |                                                       
| | ------------------------------------------------------
| | Shareholders Equity  Preferred and Common
    Shares

|                                                                                                                                                                                       |  |               |     |  |      |   |      | 
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ------------- | --- |  | ---- | - | ---- | 
|                                                                                                                                                                                       |  | 2004          |     |  | 2003 |  
|                                                                                                                                                                                       |  |               |     |  |      |  
|                                                                                                                                                                                       |  | (In millions) |    
|4% Cumulative Preferred shares authorized, issued and
    outstanding, 60,000 shares at $100 par value,
    redeemable at $105 a share                                                 |  | $             | 6.0 |  |      | $ | 6.0  | 
|6% Series B Convertible Preferred Stock authorized, issued
    and outstanding, 500,000 shares at $.01 par value                                                                       |  |               |    |  |      |   |     | 
|Common shares, $.01 par value in 2004 and $1.00 par
    value in 2003, authorized 165,000,000 shares, issued and
    outstanding,
    2004: 48,559,474 shares, 2003: 34,824,025 shares |  |               | .5  |  |      |   | 34.8 | 







| |                                     
| | ------------------------------------
| | Changes in Common Shares Outstanding

|                                                                              |  |      |             |   |      |  |            |      |  |  |            | 
|----------------------------------------------------------------------------- |  | ---- | ----------- | - | ---- |  | ---------- | ---- |  |  | ---------- | 
|                                                                              |  | 2004 |             |   | 2003 |  |            | 2002 | 
|                                                                              |  |      |             |   |      |  |            |      | 
|Outstanding at beginning of year                                              |  |      | 34,824,025  |   |      |  | 33,753,781 |      |  |  | 33,467,506 | 
|Net restricted stock activity                                                 |  |      | 760,440     |   |      |  | 826,013    |      |  |  | 109,552    | 
|Stock options exercised                                                       |  |      |            |   |      |  |           |      |  |  | 29,250     | 
|Reissuance of treasury shares for employee benefit and incentive
    programs |  |      | 295,434     |   |      |  | 244,231    |      |  |  | 147,473    | 
|Conversion of Series A Notes to common stock                                  |  |      | 15,000,000  |   |      |  |           |      |  |  |           | 
|Conversion of common stock to Series B Preferred Stock                        |  |      | (15,000,000 | ) |      |  |           |      |  |  |           | 
|Net common shares issued in rights offering                                   |  |      | 12,679,575  |   |      |  |           |      |  |  |           | 
|                                                                              |  |      |             |   |      |  |            |      | 
|Outstanding at end of year                                                    |  |      | 48,559,474  |   |      |  | 34,824,025 |      |  |  | 33,753,781 | 
|                                                                              |  |      |             |   |      |  |            |      | 







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MILACRON INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






Comprehensive Loss






| |                   
| | ------------------
| | Comprehensive Loss

|                                                                                             |  |               |       |   |      |   |        |      |  |   |        |  
|-------------------------------------------------------------------------------------------- |  | ------------- | ----- | - | ---- | - | ------ | ---- |  | - | ------ | -
|                                                                                             |  | 2004          |       |   | 2003 |   |        | 2002 | 
|                                                                                             |  |               |       |   |      |   |        |      | 
|                                                                                             |  | (In millions) |      
|Net loss                                                                                     |  | $             | (51.8 | ) |      | $ | (190.9 | )    |  | $ | (223.2 | )
|Foreign currency translation adjustments                                                     |  |               | 15.9  |   |      |   | 8.5    |      |  |   | 5.9    |  
|Reclassification of foreign currency translation adjustments to
    net gain on divestitures |  |               |      |   |      |   |       |      |  |   | 10.6   |  
|Minimum pension liability adjustment(a)                                                      |  |               | (13.0 | ) |      |   | 14.6   |      |  |   | (95.4  | )
|Change in fair value of foreign currency exchange contracts                                  |  |               | (.2   | ) |      |   |       |      |  |   | .1     |  
|                                                                                             |  |               |       |   |      |   |        |      | 
|Total comprehensive loss                                                                     |  | $             | (49.1 | ) |      | $ | (167.8 | )    |  | $ | (302.0 | )
|                                                                                             |  |               |       |   |      |   |        |      | 






|    |  |                                                                                                
|--- |  | -----------------------------------------------------------------------------------------------
|(a) |  | In 2004 and 2003, includes no tax effect. In 2002, includes a
    tax benefit of $51.4 million.

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MILACRON INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






| |                                     
| | ------------------------------------
| | Accumulated Other Comprehensive Loss

|                                                  |  |               |        |   |      |   |        |  
|------------------------------------------------- |  | ------------- | ------ | - | ---- | - | ------ | -
|                                                  |  | 2004          |        |   | 2003 |  
|                                                  |  |               |        |   |      |  
|                                                  |  | (In millions) |       
|Foreign currency translation adjustments          |  | $             | (10.2  | ) |      | $ | (26.1  | )
|Minimum pension liability adjustment              |  |               | (93.8  | ) |      |   | (80.8  | )
|Fair value of foreign currency exchange contracts |  |               |       |   |      |   | .2     |  
|                                                  |  |               |        |   |      |  
|                                                  |  | $             | (104.0 | ) |      | $ | (106.7 | )
|                                                  |  |               |        |   |      |  

Contingencies






Foreign Exchange Contracts




Stock-Based Compensation




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MILACRON INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)








| |                      
| | ---------------------
| | Stock Option Activity

|                             |           |        |           |           |       |   |       |       | 
|---------------------------- | --------- | ------ | --------- | --------- | ----- | - | ----- | ----- | 
|                             |           |        |           | Weighted- |      
|                             |           |        |           | Average   |      
|                             |           |        |           | Exercise  |      
|                             |           | Shares |           |           | Price |  
|                             |           |        |           |           |       |  
|Outstanding at year-end 2001 |           |        | 4,214,775 |           |       | $ | 21.06 |      
|                             | Granted   |        |           | 829,500   |       |   |       | 13.19 | 
|                             | Exercised |        |           | (29,250   | )     |   |       | 13.97 | 
|                             | Cancelled |        |           | (397,075  | )     |   |       | 17.15 | 
|                             |           |        |           |           |       |  
|Outstanding at year-end 2002 |           |        | 4,617,950 |           |       |   | 20.03 |      
|                             | Granted   |        |           | 18,000    |       |   |       | 5.43  | 
|                             | Cancelled |        |           | (314,100  | )     |   |       | 18.65 | 
|                             | Waived    |        |           | (465,900  | )     |   |       | 22.75 | 
|                             |           |        |           |           |       |  
|Outstanding at year-end 2003 |           |        | 3,855,950 |           |       |   | 19.75 |      
|                             | Granted   |        |           | 14,000    |       |   |       | 4.30  | 
|                             | Cancelled |        |           | (345,050  | )     |   |       | 22.97 | 
|                             |           |        |           |           |       |  
|Outstanding at year-end 2004 |           |        | 3,524,900 |           |       |   | 19.37 |      
|                             |           |        |           |           |       |  





| |                                      
| | -------------------------------------
| | Exercisable Stock Options at Year-End

|     |  |         |           | 
|---- |  | ------- | --------- | 
|     |  | Stock   |          
|     |  | Options |          
|     |  |         |          
|2002 |  |         | 2,653,163 | 
|2003 |  |         | 2,723,088 | 
|2004 |  |         | 2,887,288 | 



| |                                              
| | ---------------------------------------------
| | Shares Available for Future Grant at Year-End

|     |  |        |           | 
|---- |  | ------ | --------- | 
|     |  | Shares |          
|     |  |        |          
|2002 |  |        | 969,524   | 
|2003 |  |        | 276,737   | 
|2004 |  |        | 7,127,180 | 

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MILACRON INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






| |                                        
| | ---------------------------------------
| | Components of Outstanding Stock Options

|                         |  |             |           |           |          |  |           |          |  |   |       | 
|------------------------ |  | ----------- | --------- | --------- | -------- |  | --------- | -------- |  | - | ----- | 
|                         |  |             |           | Average   |          |  | Weighted- |         
|                         |  |             |           | Remaining |          |  | Average   |         
|                         |  | Number      |           |           | Contract |  |           | Exercise | 
|Range of Exercise Prices |  | Outstanding |           |           | Life     |  |           | Price    | 
|                         |  |             |           |           |          |  |           |          | 
|$ 4.30-19.53             |  |             | 1,359,075 |           |          |  | 3.5       |          |  | $ | 13.23 | 
|20.09-27.91              |  |             | 2,165,825 |           |          |  | 2.8       |          |  |   | 23.22 | 
|                         |  |             |           |           |          |  |           |          | 
|                         |  |             | 3,524,900 |           |          |  |           |          |  |   |       | 
|                         |  |             |           |           |          |  |           |          | 



| |                                        
| | ---------------------------------------
| | Components of Exercisable Stock Options

|                         |  |             |           |           |          |   |       | 
|------------------------ |  | ----------- | --------- | --------- | -------- | - | ----- | 
|                         |  |             |           | Weighted- |         
|                         |  |             |           | Average   |         
|                         |  | Number      |           |           | Exercise |  
|Range of Exercise Prices |  | Exercisable |           |           | Price    |  
|                         |  |             |           |           |          |  
|$ 4.30-19.56             |  |             | 827,463   |           |          | $ | 13.47 | 
|20.09-27.91              |  |             | 2,059,825 |           |          |   | 23.38 | 
|                         |  |             |           |           |          |  
|                         |  |             | 2,887,288 |           |          |   |       | 
|                         |  |             |           |           |          |  





| |                       
| | ----------------------
| | Fair Value Assumptions

|                                      |  |      |      |   |      |  |      |      |  |  |            |  
|------------------------------------- |  | ---- | ---- | - | ---- |  | ---- | ---- |  |  | ---------- | -
|                                      |  | 2004 |      |   | 2003 |  |      | 2002 | 
|                                      |  |      |      |   |      |  |      |      | 
|Dividend yield                        |  |      | 0.0  | % |      |  | 1.6  | %    |  |  | .3-.7      | %
|Expected volatility                   |  |      | 74   | % |      |  | 54   | %    |  |  | 46-50      | %
|Risk free interest rate at grant date |  |      | 4.00 | % |      |  | 2.97 | %    |  |  | 2.98- 4.28 | %
|Expected life in years                |  |      | 5    |   |      |  | 5    |      |  |  | 2-5        |  



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MILACRON INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






| |                          
| | -------------------------
| | Restricted Stock Activity

|                                               |  |      |           |  |      |   |         |      |  |   |         | 
|---------------------------------------------- |  | ---- | --------- |  | ---- | - | ------- | ---- |  | - | ------- | 
|                                               |  | 2004 |           |  | 2003 |   |         | 2002 | 
|                                               |  |      |           |  |      |   |         |      | 
|Restricted stock granted                       |  |      | 1,192,572 |  |      |   | 924,300 |      |  |   | 192,000 | 
|                                               |  |      |           |  |      |   |         |      | 
|Weighted-average market value on date of grant |  | $    | 4.25      |  |      | $ | 2.74    |      |  | $ | 13.09   | 
|                                               |  |      |           |  |      |   |         |      | 







Organization










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NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






| |                       
| | ----------------------
| | Total Sales by Segment

|                      |                                      |                             |       |       |       |   |       |       |       |   |       |       |       | 
|--------------------- | ------------------------------------ | --------------------------- | ----- | ----- | ----- | - | ----- | ----- | ----- | - | ----- | ----- | ----- | 
|                      |                                      | 2004                        |       |       | 2003  |   |       | 2002  |      
|                      |                                      |                             |       |       |       |   |       |       |      
|                      |                                      | (In millions)               |      
|Plastics technologies |                                      |                             |       |       |       |   |       |       |       |   |       |      
|                      | Machinery technologies-North America |                             | $     | 334.4 |       |   | $     | 321.2 |       |   | $     | 313.6 |      
|                      | Machinery technologies-Europe        |                             |       | 167.0 |       |   |       | 151.0 |       |   |       | 117.4 |      
|                      | Mold technologies                    |                             |       | 167.1 |       |   |       | 168.7 |       |   |       | 174.7 |      
|                      | Eliminations                         |                             |       | (3.3  | )     |   |       | (5.4  | )     |   |       | (8.5  | )    
|                      |                                      |                             |       |       |       |   |       |       |      
|                      |                                      | Total plastics technologies |       |       | 665.2 |   |       |       | 635.5 |   |       |       | 597.2 | 
|Industrial fluids     |                                      |                             | 109.0 |       |       |   | 104.2 |       |       |   | 96.0  |      
|                      |                                      |                             |       |       |       |   |       |       |      
|Total sales           |                                      | $                           | 774.2 |       |       | $ | 739.7 |       |       | $ | 693.2 |      
|                      |                                      |                             |       |       |       |   |       |       |      



| |                          
| | -------------------------
| | Customer Sales by Segment

|                      |                                      |                             |       |       |       |   |       |       |       |   |       |       |       | 
|--------------------- | ------------------------------------ | --------------------------- | ----- | ----- | ----- | - | ----- | ----- | ----- | - | ----- | ----- | ----- | 
|                      |                                      | 2004                        |       |       | 2003  |   |       | 2002  |      
|                      |                                      |                             |       |       |       |   |       |       |      
|                      |                                      | (In millions)               |      
|Plastics technologies |                                      |                             |       |       |       |   |       |       |       |   |       |      
|                      | Machinery technologies-North America |                             | $     | 333.9 |       |   | $     | 319.6 |       |   | $     | 312.5 |      
|                      | Machinery technologies-Europe        |                             |       | 164.2 |       |   |       | 147.2 |       |   |       | 110.0 |      
|                      | Mold technologies                    |                             |       | 167.1 |       |   |       | 168.7 |       |   |       | 174.7 |      
|                      |                                      |                             |       |       |       |   |       |       |      
|                      |                                      | Total plastics technologies |       |       | 665.2 |   |       |       | 635.5 |   |       |       | 597.2 | 
|Industrial fluids     |                                      |                             | 109.0 |       |       |   | 104.2 |       |       |   | 96.0  |      
|                      |                                      |                             |       |       |       |   |       |       |      
|Total sales           |                                      | $                           | 774.2 |       |       | $ | 739.7 |       |       | $ | 693.2 |      
|                      |                                      |                             |       |       |       |   |       |       |      

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NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




| |                                 
| | --------------------------------
| | Operating Information by Segment

|                         |                                    |                                      |                             |       |       |       |        |       |       |       |       |       |       |       | 
|------------------------ | ---------------------------------- | ------------------------------------ | --------------------------- | ----- | ----- | ----- | ------ | ----- | ----- | ----- | ----- | ----- | ----- | ----- | 
|                         |                                    | 2004                                 |                             |       | 2003  |       |        | 2002  |      
|                         |                                    |                                      |                             |       |       |       |        |       |      
|                         |                                    | (In millions)                        |                            
|Operating profit (loss)  |                                    |                                      |                             |       |       |       |        |       |       |       |       |      
|                         | Plastics technologies(a)           |                                      |                             |       |       |       |        |       |       |       |       |       |      
|                         |                                    | Machinery technologies-North America |                             | $     | 16.0  |       |        | $     | 8.1   |       |       | $     | 7.5   |      
|                         |                                    | Machinery technologies-Europe        |                             |       | 1.9   |       |        |       | (1.4  | )     |       |       | (8.1  | )    
|                         |                                    | Mold technologies                    |                             |       | 4.3   |       |        |       | 1.8   |       |       |       | 5.3   |      
|                         |                                    |                                      |                             |       |       |       |        |       |      
|                         |                                    |                                      | Total plastics technologies |       |       | 22.2  |        |       |       | 8.5   |       |       |       | 4.7   | 
|                         | Industrial fluids                  |                                      |                             | 9.2   |       |       |        | 15.7  |       |       |       | 14.4  |      
|                         | Goodwill impairment charge(b)      |                                      |                             |      |       |       |        | (65.6 | )     |       |       |      |      
|                         | Restructuring costs(c)             |                                      |                             | (13.0 | )     |       |        | (27.1 | )     |       |       | (13.9 | )    
|                         | Refinancing costs                  |                                      |                             | (21.4 | )     |       |        | (1.8  | )     |       |       |      |      
|                         | Corporate expenses                 |                                      |                             | (11.9 | )     |       |        | (14.3 | )     |       |       | (15.4 | )    
|                         | Other unallocated expenses(d)      |                                      |                             | (1.7  | )     |       |        | (2.8  | )     |       |       | (3.6  | )    
|                         |                                    |                                      |                             |       |       |       |        |       |      
|Operating loss           |                                    |                                      | (16.6                       | )     |       |       | (87.4  | )     |       |       | (13.8 | )    
|Interest expense-net     |                                    |                                      | (37.3                       | )     |       |       | (23.0  | )     |       |       | (23.3 | )    
|                         |                                    |                                      |                             |       |       |       |        |       |      
|Loss before income taxes |                                    | $                                    | (53.9                       | )     |       | $     | (110.4 | )     |       | $     | (37.1 | )    
|                         |                                    |                                      |                             |       |       |       |        |       |      
|Segment assets(e)        |                                    |                                      |                             |       |       |       |        |       |       |       |       |      
|                         | Plastics technologies              |                                      |                             |       |       |       |        |       |       |       |       |       |      
|                         |                                    | Machinery technologies-North America |                             | $     | 183.9 |       |        | $     | 181.3 |       |       | $     | 202.5 |      
|                         |                                    | Machinery technologies-Europe        |                             |       | 116.4 |       |        |       | 110.2 |       |       |       | 97.7  |      
|                         |                                    | Mold technologies                    |                             |       | 152.9 |       |        |       | 156.4 |       |       |       | 227.6 |      
|                         |                                    | Other                                |                             |       | (.9   | )     |        |       | .7    |       |       |       | 1.1   |      
|                         |                                    |                                      |                             |       |       |       |        |       |      
|                         |                                    |                                      | Total plastics technologies |       |       | 452.3 |        |       |       | 448.6 |       |       |       | 528.9 | 
|                         | Industrial fluids                  |                                      |                             | 49.2  |       |       |        | 50.2  |       |       |       | 48.1  |      
|                         | Cash and cash equivalents          |                                      |                             | 69.2  |       |       |        | 92.8  |       |       |       | 122.3 |      
|                         | Receivables sold                   |                                      |                             |      |       |       |        | (33.0 | )     |       |       | (34.6 | )    
|                         | Deferred income taxes              |                                      |                             | 89.2  |       |       |        | 98.8  |       |       |       | 173.0 |      
|                         | Assets of discontinued operations  |                                      |                             |      |       |       |        | 7.2   |       |       |       | 16.0  |      
|                         | Unallocated corporate and other(f) |                                      |                             | 80.0  |       |       |        | 68.8  |       |       |       | 93.6  |      
|                         |                                    |                                      |                             |       |       |       |        |       |      
|Total assets             |                                    | $                                    | 739.9                       |       |       | $     | 733.4  |       |       | $     | 947.3 |      
|                         |                                    |                                      |                             |       |       |       |        |       |      

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NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




| |                                 
| | --------------------------------
| | Operating Information by Segment

|                                    |                       |                                      |                             |     |      |      |      |      |     |      |      |     |     |      | 
|----------------------------------- | --------------------- | ------------------------------------ | --------------------------- | --- | ---- | ---- | ---- | ---- | --- | ---- | ---- | --- | --- | ---- | 
|                                    |                       | 2004                                 |                             |     | 2003 |      |      | 2002 |    
|                                    |                       |                                      |                             |     |      |      |      |      |    
|                                    |                       | (In millions)                        |                            
|Capital expenditures                |                       |                                      |                             |     |      |      |      |      |     |      |      |    
|                                    | Plastics technologies |                                      |                             |     |      |      |      |      |     |      |      |     |    
|                                    |                       | Machinery technologies-North America |                             | $   | 4.0  |      |      | $    | 1.7 |      |      | $   | 2.6 |     
|                                    |                       | Machinery technologies-Europe        |                             |     | 1.6  |      |      |      | 1.1 |      |      |     | .3  |     
|                                    |                       | Mold technologies                    |                             |     | 1.7  |      |      |      | 1.6 |      |      |     | 1.7 |     
|                                    |                       |                                      |                             |     |      |      |      |      |    
|                                    |                       |                                      | Total plastics technologies |     |      | 7.3  |      |      |     | 4.4  |      |     |     | 4.6  | 
|                                    | Industrial fluids     |                                      |                             | 1.4 |      |      |      | 2.1  |     |      |      | 1.5 |    
|                                    | Unallocated corporate |                                      |                             | .1  |      |      |      |     |     |      |      | .1  |    
|                                    |                       |                                      |                             |     |      |      |      |      |    
|Total capital expenditures          |                       | $                                    | 8.8                         |     |      | $    | 6.5  |      |     | $    | 6.2  |    
|                                    |                       |                                      |                             |     |      |      |      |      |    
|Depreciation and amortization       |                       |                                      |                             |     |      |      |      |      |     |      |      |    
|                                    | Plastics technologies |                                      |                             |     |      |      |      |      |     |      |      |     |    
|                                    |                       | Machinery technologies-North America |                             | $   | 7.3  |      |      | $    | 8.7 |      |      | $   | 9.9 |     
|                                    |                       | Machinery technologies-Europe        |                             |     | 4.2  |      |      |      | 3.9 |      |      |     | 3.5 |     
|                                    |                       | Mold technologies                    |                             |     | 6.7  |      |      |      | 6.7 |      |      |     | 7.4 |     
|                                    |                       |                                      |                             |     |      |      |      |      |    
|                                    |                       |                                      | Total plastics technologies |     |      | 18.2 |      |      |     | 19.3 |      |     |     | 20.8 | 
|                                    | Industrial fluids     |                                      |                             | 1.8 |      |      |      | 2.0  |     |      |      | 1.5 |    
|                                    | Unallocated corporate |                                      |                             | .3  |      |      |      | .4   |     |      |      | .7  |    
|                                    |                       |                                      |                             |     |      |      |      |      |    
|Total depreciation and amortization |                       | $                                    | 20.3                        |     |      | $    | 21.7 |      |     | $    | 23.0 |    
|                                    |                       |                                      |                             |     |      |      |      |      |    






|    |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | In 2002, operating profit of the machinery
    technologies  North America segment includes
    $4.5 million of royalty income from the licensing of
    patented technology and the operating profit of the mold
    technologies segment includes a $1.0 million goodwill
    impairment charge.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|   
|(b) |  | Relates to the mold technologies segment.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|   
|(c) |  | In 2004, $8.0 million relates to machinery
    technologies  North America, $.2 million relates
    to machinery technologies  Europe and
    $4.8 million relates to mold technologies. In 2003,
    $7.7 million relates to machinery technologies 
    North America, $6.5 million relates to machinery
    technologies  Europe, $12.6 million relates to
    mold technologies and $.3 million relates to corporate
    expenses. In 2002, $6.7 million relates to machinery
    technologies  North America, $(.4) million
    relates to machinery technologies  Europe
    $6.4 million relates to mold technologies and
    $1.2 million relates to corporate expenses. In 2004, 2003
    and 2002, $1.4, $3.3 and $1.9 million, respectively,
    relates to product line discontinuation and is therefore
    included in cost of products sold in the Consolidated Statements
    of Operations for those years.
|   
|(d) |  | Represents financing costs, including those related to the sale
    of accounts receivable prior to March 12, 2004.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|   
|(e) |  | Segment assets consist principally of accounts receivable,
    inventories, goodwill and property, plant and equipment which
    are considered controllable assets for management reporting
    purposes.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|   
|(f) |  | Consists principally of corporate assets, nonconsolidated
    investments, certain intangible assets, expected recoveries from
    excess insurance carriers, cash surrender value of company-owned
    life insurance, prepaid expenses and deferred charges.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    

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NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




| |                       
| | ----------------------
| | Geographic Information

|                  |                                                   |                      |       |       |       |   |       |       |       |   |       |       |       | 
|----------------- | ------------------------------------------------- | -------------------- | ----- | ----- | ----- | - | ----- | ----- | ----- | - | ----- | ----- | ----- | 
|                  |                                                   | 2004                 |       |       | 2003  |   |       | 2002  |      
|                  |                                                   |                      |       |       |       |   |       |       |      
|                  |                                                   | (In millions)        |      
|Sales(a)          |                                                   |                      |       |       |       |   |       |       |       |   |       |      
|                  | United States                                     |                      | $     | 466.6 |       |   | $     | 450.8 |       |   | $     | 444.4 |      
|                  | Non-U.S. operations                               |                      |       |       |       |   |       |       |       |   |       |       |      
|                  |                                                   | Germany              |       |       | 104.5 |   |       |       | 102.3 |   |       |       | 84.3  | 
|                  |                                                   | Other Western Europe |       |       | 134.2 |   |       |       | 121.9 |   |       |       | 105.8 | 
|                  |                                                   | Asia                 |       |       | 36.4  |   |       |       | 31.0  |   |       |       | 31.7  | 
|                  |                                                   | Other                |       |       | 32.5  |   |       |       | 33.7  |   |       |       | 27.0  | 
|                  |                                                   |                      |       |       |       |   |       |       |      
|Total sales       |                                                   | $                    | 774.2 |       |       | $ | 739.7 |       |       | $ | 693.2 |      
|                  |                                                   |                      |       |       |       |   |       |       |      
|Noncurrent assets |                                                   |                      |       |       |       |   |       |       |       |   |       |      
|                  | United States                                     |                      | $     | 103.8 |       |   | $     | 103.3 |       |   | $     | 125.1 |      
|                  | Non-U.S. operations                               |                      |       |       |       |   |       |       |       |   |       |       |      
|                  |                                                   | Germany              |       |       | 45.4  |   |       |       | 46.7  |   |       |       | 45.8  | 
|                  |                                                   | Other Western Europe |       |       | 18.7  |   |       |       | 21.5  |   |       |       | 19.6  | 
|                  |                                                   | Asia                 |       |       | 6.6   |   |       |       | 5.7   |   |       |       | 5.9   | 
|                  |                                                   | Other                |       |       | 1.8   |   |       |       | 4.9   |   |       |       | 5.6   | 
|                  |                                                   |                      |       |       |       |   |       |       |      
|                  |                                                   |                      | 176.3 |       |       |   | 182.1 |       |       |   | 202.0 |      
|                  | Investments not consolidated                      |                      |       | 2.0   |       |   |       | 1.6   |       |   |       | 1.2   |      
|                  | Goodwill                                          |                      |       | 86.6  |       |   |       | 83.8  |       |   |       | 143.3 |      
|                  | Other intangible assets                           |                      |       | 5.1   |       |   |       | 6.5   |       |   |       | 7.8   |      
|                  | Deferred income taxes net of valuation allowances |                      |       | 63.1  |       |   |       | 70.9  |       |   |       | 132.4 |      
|                  |                                                   |                      |       |       |       |   |       |       |      
|                  | Total noncurrent assets                           |                      | $     | 333.1 |       |   | $     | 344.9 |       |   | $     | 486.7 |      
|                  |                                                   |                      |       |       |       |   |       |       |      






|    |  |                                                                                                        
|--- |  | -------------------------------------------------------------------------------------------------------
|(a) |  | Sales are attributed to specific countries or geographic areas
    based on the origin of the shipment.





Subsequent Events




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MILACRON INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)












1 2




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MILACRON INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




| |                                              
| | ---------------------------------------------
| | Condensed Consolidating Financial Information

1 2 This information is provided pursuant to
Rule 3-10 of Regulation S-X in lieu of separate
financial statements of each subsidiary guaranteeing the Senior
Secured Notes.


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MILACRON INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


Consolidating Statement of Operations


|                                                                                |                                                |                                            |       |           |              |   |              |              |      |                |       |       |      |              |       |       |       |   |       |       |       | 
|------------------------------------------------------------------------------- | ---------------------------------------------- | ------------------------------------------ | ----- | --------- | ------------ | - | ------------ | ------------ | ---- | -------------- | ----- | ----- | ---- | ------------ | ----- | ----- | ----- | - | ----- | ----- | ----- | 
|                                                                                |                                                | Year Ended December 31, 2004               |      
|                                                                                |                                                |                                            |      
|                                                                                |                                                |                                            |       | Guarantor |              |   | Nonguarantor |              |      | Eliminations & |       |       |     
|                                                                                |                                                | Milacron Inc.                              |       |           | Subsidiaries |   |              | Subsidiaries |      |                | Other |       |      | Consolidated |      
|                                                                                |                                                |                                            |       |           |              |   |              |              |      |                |       |       |      |              |      
|                                                                                |                                                | (In millions)                              |      
|Sales                                                                           |                                                | $                                          |      |           |              | $ | 498.0        |              |      | $              | 300.7 |       |      | $            | (24.5 | )     |       | $ | 774.2 |      
|                                                                                | Cost of products sold                          |                                            |       | 5.3       |              |   |              | 408.1        |      |                |       | 237.7 |      |              |       | (24.5 | )     |   |       | 626.6 |      
|                                                                                | Cost of products sold related to restructuring |                                            |       |          |              |   |              | 1.4          |      |                |       |      |      |              |       |      |       |   |       | 1.4   |      
|                                                                                |                                                |                                            |       |           |              |   |              |              |      |                |       |       |      |              |      
|                                                                                | Total cost of products sold                    |                                            |       | 5.3       |              |   |              | 409.5        |      |                |       | 237.7 |      |              |       | (24.5 | )     |   |       | 628.0 |      
|                                                                                |                                                |                                            |       |           |              |   |              |              |      |                |       |       |      |              |      
|                                                                                |                                                | Manufacturing margins                      |       |           | (5.3         | ) |              |              | 88.5 |                |       |       | 63.0 |              |       |       |      |   |       |       | 146.2 | 
|Other costs and expenses                                                        |                                                |                                            |       |           |              |   |              |              |      |                |       |       |      |              |       |       |       |   |       |      
|                                                                                | Selling and administrative                     |                                            |       | 17.6      |              |   |              | 52.0         |      |                |       | 57.3  |      |              |       |      |       |   |       | 126.9 |      
|                                                                                | Restructuring costs                            |                                            |       | .1        |              |   |              | 6.5          |      |                |       | 5.0   |      |              |       |      |       |   |       | 11.6  |      
|                                                                                | Refinancing costs                              |                                            |       | 15.8      |              |   |              | 5.6          |      |                |       |      |      |              |       |      |       |   |       | 21.4  |      
|                                                                                | Other expense  net                            |                                            |       | 2.0       |              |   |              | .2           |      |                |       | .7    |      |              |       |      |       |   |       | 2.9   |      
|                                                                                |                                                |                                            |       |           |              |   |              |              |      |                |       |       |      |              |      
|                                                                                |                                                | Total other costs and expenses             |       |           | 35.5         |   |              |              | 64.3 |                |       |       | 63.0 |              |       |       |      |   |       |       | 162.8 | 
|                                                                                |                                                |                                            |       |           |              |   |              |              |      |                |       |       |      |              |      
|Operating earnings (loss)                                                       |                                                |                                            | (40.8 | )         |              |   | 24.2         |              |      |                |      |       |      |              |      |       |       |   | (16.6 | )    
|Other non-operating expense (income) Intercompany management fees               |                                                |                                            | (10.9 | )         |              |   | 10.9         |              |      |                |      |       |      |              |      |       |       |   |      |      
|                                                                                | Intercompany interest                          |                                            |       | (15.4     | )            |   |              | 16.3         |      |                |       | (.9   | )    |              |       |      |       |   |       |      |      
|                                                                                | Equity in (earnings) losses of subsidiaries    |                                            |       | 14.8      |              |   |              | (4.1         | )    |                |       |      |      |              |       | (10.7 | )     |   |       |      |      
|                                                                                | Other intercompany transactions                |                                            |       | (1.2      | )            |   |              | 1.1          |      |                |       | .1    |      |              |       |      |       |   |       |      |      
|                                                                                |                                                |                                            |       |           |              |   |              |              |      |                |       |       |      |              |      
|                                                                                |                                                | Total other non-operating expense (income) |       |           | (12.7        | ) |              |              | 24.2 |                |       |       | (.8  | )            |       |       | (10.7 | ) |       |       |      | 
|                                                                                |                                                |                                            |       |           |              |   |              |              |      |                |       |       |      |              |      
|Earnings (loss) from continuing operations before interest
    and income taxes |                                                |                                            | (28.1 | )         |              |   |             |              |      |                | .8    |       |      |              | 10.7  |       |       |   | (16.6 | )    
|Interest expense  net                                                          |                                                |                                            | (32.3 | )         |              |   | (4.4         | )            |      |                | (.6   | )     |      |              |      |       |       |   | (37.3 | )    
|                                                                                |                                                |                                            |       |           |              |   |              |              |      |                |       |       |      |              |      
|Earnings (loss) from continuing operations before income
    taxes              |                                                |                                            | (60.4 | )         |              |   | (4.4         | )            |      |                | .2    |       |      |              | 10.7  |       |       |   | (53.9 | )    
|Provision (benefit) for income taxes                                            |                                                |                                            | (7.8  | )         |              |   | .8           |              |      |                | 4.4   |       |      |              |      |       |       |   | (2.6  | )    
|                                                                                |                                                |                                            |       |           |              |   |              |              |      |                |       |       |      |              |      
|Earnings (loss) from continuing operations                                      |                                                |                                            | (52.6 | )         |              |   | (5.2         | )            |      |                | (4.2  | )     |      |              | 10.7  |       |       |   | (51.3 | )    
|Discontinued operations net of income taxes                                     |                                                |                                            |       |           |              |   |              |              |      |                |       |       |      |              |       |       |       |   |       |      
|                                                                                | Loss from operations                           |                                            |       |          |              |   |              | (1.3         | )    |                |       |      |      |              |       |      |       |   |       | (1.3  | )    
|                                                                                | Net gain on divestitures                       |                                            |       | .8        |              |   |              |             |      |                |       |      |      |              |       |      |       |   |       | .8    |      
|                                                                                |                                                |                                            |       |           |              |   |              |              |      |                |       |       |      |              |      
|Total discontinued operations                                                   |                                                |                                            | .8    |           |              |   | (1.3         | )            |      |                |      |       |      |              |      |       |       |   | (.5   | )    
|                                                                                |                                                |                                            |       |           |              |   |              |              |      |                |       |       |      |              |      
|                                                                                | Net earnings (loss)                            |                                            | $     | (51.8     | )            |   | $            | (6.5         | )    |                | $     | (4.2  | )    |              | $     | 10.7  |       |   | $     | (51.8 | )    
|                                                                                |                                                |                                            |       |           |              |   |              |              |      |                |       |       |      |              |      

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MILACRON INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


Consolidating Statement of Operations


|                                                                                |                                                |                                            |        |           |              |   |              |              |       |                |       |       |      |              |       |       |       |   |        |        |       | 
|------------------------------------------------------------------------------- | ---------------------------------------------- | ------------------------------------------ | ------ | --------- | ------------ | - | ------------ | ------------ | ----- | -------------- | ----- | ----- | ---- | ------------ | ----- | ----- | ----- | - | ------ | ------ | ----- | 
|                                                                                |                                                | Year Ended December 31, 2003               |       
|                                                                                |                                                |                                            |       
|                                                                                |                                                |                                            |        | Guarantor |              |   | Nonguarantor |              |       | Eliminations & |       |       |     
|                                                                                |                                                | Milacron Inc.                              |        |           | Subsidiaries |   |              | Subsidiaries |       |                | Other |       |      | Consolidated |      
|                                                                                |                                                |                                            |        |           |              |   |              |              |       |                |       |       |      |              |      
|                                                                                |                                                | (In millions)                              |       
|Sales                                                                           |                                                | $                                          |       |           |              | $ | 482.7        |              |       | $              | 275.8 |       |      | $            | (18.8 | )     |       | $ | 739.7  |       
|                                                                                | Cost of products sold                          |                                            |        | (.9       | )            |   |              | 405.4        |       |                |       | 218.1 |      |              |       | (18.8 | )     |   |        | 603.8  |      
|                                                                                | Cost of products sold related to restructuring |                                            |        |          |              |   |              |             |       |                |       | 3.3   |      |              |       |      |       |   |        | 3.3    |      
|                                                                                |                                                |                                            |        |           |              |   |              |              |       |                |       |       |      |              |      
|                                                                                | Total cost of products sold                    |                                            |        | (.9       | )            |   |              | 405.4        |       |                |       | 221.4 |      |              |       | (18.8 | )     |   |        | 607.1  |      
|                                                                                |                                                |                                            |        |           |              |   |              |              |       |                |       |       |      |              |      
|                                                                                |                                                | Manufacturing margins                      |        |           | .9           |   |              |              | 77.3  |                |       |       | 54.4 |              |       |       |      |   |        |        | 132.6 | 
|Other costs and expenses                                                        |                                                |                                            |        |           |              |   |              |              |       |                |       |       |      |              |       |       |       |   |        |       
|                                                                                | Selling and administrative                     |                                            |        | 14.5      |              |   |              | 58.1         |       |                |       | 56.4  |      |              |       |      |       |   |        | 129.0  |      
|                                                                                | Goodwill impairment charge                     |                                            |        |          |              |   |              | 65.6         |       |                |       |      |      |              |       |      |       |   |        | 65.6   |      
|                                                                                | Restructuring costs                            |                                            |        | .7        |              |   |              | 8.8          |       |                |       | 14.3  |      |              |       |      |       |   |        | 23.8   |      
|                                                                                | Refinancing costs                              |                                            |        | 1.8       |              |   |              |             |       |                |       |      |      |              |       |      |       |   |        | 1.8    |      
|                                                                                | Other expense (income)  net                   |                                            |        | 1.6       |              |   |              | (2.1         | )     |                |       | .3    |      |              |       |      |       |   |        | (.2    | )    
|                                                                                |                                                |                                            |        |           |              |   |              |              |       |                |       |       |      |              |      
|                                                                                |                                                | Total other costs and expenses             |        |           | 18.6         |   |              |              | 130.4 |                |       |       | 71.0 |              |       |       |      |   |        |        | 220.0 | 
|                                                                                |                                                |                                            |        |           |              |   |              |              |       |                |       |       |      |              |      
|Operating loss                                                                  |                                                |                                            | (17.7  | )         |              |   | (53.1        | )            |       |                | (16.6 | )     |      |              |      |       |       |   | (87.4  | )     
|Other non-operating expense (income)                                            |                                                |                                            |        |           |              |   |              |              |       |                |       |       |      |              |       |       |       |   |        |       
|                                                                                | Intercompany management fees                   |                                            |        | (11.9     | )            |   |              | 11.9         |       |                |       |      |      |              |       |      |       |   |        |       |      
|                                                                                | Intercompany interest                          |                                            |        | (5.3      | )            |   |              | 6.1          |       |                |       | (.8   | )    |              |       |      |       |   |        |       |      
|                                                                                | Equity in (earnings) losses of subsidiaries    |                                            |        | 107.9     |              |   |              | (25.6        | )     |                |       |      |      |              |       | (82.3 | )     |   |        |       |      
|                                                                                |                                                |                                            |        |           |              |   |              |              |       |                |       |       |      |              |      
|                                                                                |                                                | Total other non-operating expense (income) |        |           | 90.7         |   |              |              | (7.6  | )              |       |       | (.8  | )            |       |       | (82.3 | ) |        |        |      | 
|                                                                                |                                                |                                            |        |           |              |   |              |              |       |                |       |       |      |              |      
|Earnings (loss) from continuing operations before interest
    and income taxes |                                                |                                            | (108.4 | )         |              |   | (45.5        | )            |       |                | (15.8 | )     |      |              | 82.3  |       |       |   | (87.4  | )     
|Interest expense  net                                                          |                                                |                                            | (13.4  | )         |              |   | (9.2         | )            |       |                | (.4   | )     |      |              |      |       |       |   | (23.0  | )     
|                                                                                |                                                |                                            |        |           |              |   |              |              |       |                |       |       |      |              |      
|Earnings (loss) from continuing operations before income
    taxes              |                                                |                                            | (121.8 | )         |              |   | (54.7        | )            |       |                | (16.2 | )     |      |              | 82.3  |       |       |   | (110.4 | )     
|Provision (benefit) for income taxes                                            |                                                |                                            | 68.3   |           |              |   | (.9          | )            |       |                | 5.9   |       |      |              |      |       |       |   | 73.3   |       
|                                                                                |                                                |                                            |        |           |              |   |              |              |       |                |       |       |      |              |      
|Earnings (loss) from continuing operations                                      |                                                |                                            | (190.1 | )         |              |   | (53.8        | )            |       |                | (22.1 | )     |      |              | 82.3  |       |       |   | (183.7 | )     
|Discontinued operations net of income taxes                                     |                                                |                                            |        |           |              |   |              |              |       |                |       |       |      |              |       |       |       |   |        |       
|                                                                                | Loss from operations                           |                                            |        |          |              |   |              | (6.4         | )     |                |       |      |      |              |       |      |       |   |        | (6.4   | )    
|                                                                                | Net loss on divestitures                       |                                            |        | (.8       | )            |   |              |             |       |                |       |      |      |              |       |      |       |   |        | (.8    | )    
|                                                                                |                                                |                                            |        |           |              |   |              |              |       |                |       |       |      |              |      
|Total discontinued operations                                                   |                                                |                                            | (.8    | )         |              |   | (6.4         | )            |       |                |      |       |      |              |      |       |       |   | (7.2   | )     
|                                                                                |                                                |                                            |        |           |              |   |              |              |       |                |       |       |      |              |      
|                                                                                | Net earnings (loss)                            |                                            | $      | (190.9    | )            |   | $            | (60.2        | )     |                | $     | (22.1 | )    |              | $     | 82.3  |       |   | $      | (190.9 | )    
|                                                                                |                                                |                                            |        |           |              |   |              |              |       |                |       |       |      |              |      

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##### Table of Contents



MILACRON INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


Consolidating Statement of Operations


|                                                                                                              |                                                |                                |        |           |              |   |              |              |      |                |       |        |      |              |       |        |   |   |        |        |       | 
|------------------------------------------------------------------------------------------------------------- | ---------------------------------------------- | ------------------------------ | ------ | --------- | ------------ | - | ------------ | ------------ | ---- | -------------- | ----- | ------ | ---- | ------------ | ----- | ------ | - | - | ------ | ------ | ----- | 
|                                                                                                              |                                                | Year Ended December 31, 2002   |       
|                                                                                                              |                                                |                                |       
|                                                                                                              |                                                |                                |        | Guarantor |              |   | Nonguarantor |              |      | Eliminations & |       |        |     
|                                                                                                              |                                                | Milacron Inc.                  |        |           | Subsidiaries |   |              | Subsidiaries |      |                | Other |        |      | Consolidated |      
|                                                                                                              |                                                |                                |        |           |              |   |              |              |      |                |       |        |      |              |      
|                                                                                                              |                                                | (In millions)                  |       
|Sales                                                                                                         |                                                | $                              |       |           |              | $ | 480.6        |              |      | $              | 236.4 |        |      | $            | (23.8 | )      |   | $ | 693.2  |       
|                                                                                                              | Cost of products sold                          |                                |        | (.3       | )            |   |              | 403.5        |      |                |       | 192.7  |      |              |       | (23.8  | ) |   |        | 572.1  |      
|                                                                                                              | Cost of products sold related to restructuring |                                |        |          |              |   |              | 1.9          |      |                |       |       |      |              |       |       |   |   |        | 1.9    |      
|                                                                                                              |                                                |                                |        |           |              |   |              |              |      |                |       |        |      |              |      
|                                                                                                              | Total cost of products sold                    |                                |        | (.3       | )            |   |              | 405.4        |      |                |       | 192.7  |      |              |       | (23.8  | ) |   |        | 574.0  |      
|                                                                                                              |                                                |                                |        |           |              |   |              |              |      |                |       |        |      |              |      
|                                                                                                              |                                                | Manufacturing margins          |        |           | .3           |   |              |              | 75.2 |                |       |        | 43.7 |              |       |        |  |   |        |        | 119.2 | 
|Other costs and expenses                                                                                      |                                                |                                |        |           |              |   |              |              |      |                |       |        |      |              |       |        |   |   |        |       
|                                                                                                              | Selling and administrative                     |                                |        | 13.9      |              |   |              | 55.8         |      |                |       | 51.3   |      |              |       |       |   |   |        | 121.0  |      
|                                                                                                              | Goodwill impairment charge                     |                                |        |          |              |   |              | 1.0          |      |                |       |       |      |              |       |       |   |   |        | 1.0    |      
|                                                                                                              | Restructuring costs                            |                                |        | .7        |              |   |              | 6.8          |      |                |       | 4.5    |      |              |       |       |   |   |        | 12.0   |      
|                                                                                                              | Other expense (income)  net                   |                                |        | 3.1       |              |   |              | (3.2         | )    |                |       | (.9    | )    |              |       |       |   |   |        | (1.0   | )    
|                                                                                                              |                                                |                                |        |           |              |   |              |              |      |                |       |        |      |              |      
|                                                                                                              |                                                | Total other costs and expenses |        |           | 17.7         |   |              |              | 60.4 |                |       |        | 54.9 |              |       |        |  |   |        |        | 133.0 | 
|                                                                                                              |                                                |                                |        |           |              |   |              |              |      |                |       |        |      |              |      
|Operating earnings (loss)                                                                                     |                                                |                                | (17.4  | )         |              |   | 14.8         |              |      |                | (11.2 | )      |      |              |      |        |   |   | (13.8  | )     
|Other non-operating expense (income)                                                                          |                                                |                                |        |           |              |   |              |              |      |                |       |        |      |              |       |        |   |   |        |       
|                                                                                                              | Intercompany management fees                   |                                |        | (14.1     | )            |   |              | 12.4         |      |                |       | 1.7    |      |              |       |       |   |   |        |       |      
|                                                                                                              | Intercompany royalties                         |                                |        |          |              |   |              | 3.6          |      |                |       | (3.6   | )    |              |       |       |   |   |        |       |      
|                                                                                                              | Intercompany interest                          |                                |        | (6.6      | )            |   |              | 7.9          |      |                |       | (1.3   | )    |              |       |       |   |   |        |       |      
|                                                                                                              | Equity in (earnings) losses of subsidiaries    |                                |        | 242.1     |              |   |              | 29.8         |      |                |       | 31.7   |      |              |       | (303.6 | ) |   |        |       |      
|Other intercompany transactions                                                                               |                                                |                                | .9     |           |              |   | .4           |              |      |                | (.4   | )      |      |              | (.9   | )      |   |   |       |       
|                                                                                                              |                                                |                                |        |           |              |   |              |              |      |                |       |        |      |              |      
|                                                                                                              | Total other non-operating expense (income)     |                                |        | 222.3     |              |   |              | 54.1         |      |                |       | 28.1   |      |              |       | (304.5 | ) |   |        |       |      
|                                                                                                              |                                                |                                |        |           |              |   |              |              |      |                |       |        |      |              |      
|Earnings (loss) from continuing operations before interest
    and income taxes                               |                                                |                                | (239.7 | )         |              |   | (39.3        | )            |      |                | (39.3 | )      |      |              | 304.5 |        |   |   | (13.8  | )     
|Interest expense  net                                                                                        |                                                |                                | (13.9  | )         |              |   | (8.6         | )            |      |                | (.8   | )      |      |              |      |        |   |   | (23.3  | )     
|                                                                                                              |                                                |                                |        |           |              |   |              |              |      |                |       |        |      |              |      
|Earnings (loss) from continuing operations before income
    taxes and cumulative effect of accounting change |                                                |                                | (253.6 | )         |              |   | (47.9        | )            |      |                | (40.1 | )      |      |              | 304.5 |        |   |   | (37.1  | )     
|Benefit for income taxes                                                                                      |                                                |                                | (8.2   | )         |              |   | (6.2         | )            |      |                | (4.0  | )      |      |              |      |        |   |   | (18.4  | )     
|                                                                                                              |                                                |                                |        |           |              |   |              |              |      |                |       |        |      |              |      
|Earnings (loss) from continuing operations before cumulative
    effect of accounting change                  |                                                |                                | (245.4 | )         |              |   | (41.7        | )            |      |                | (36.1 | )      |      |              | 304.5 |        |   |   | (18.7  | )     
|Discontinued operations net of income taxes                                                                   |                                                |                                |        |           |              |   |              |              |      |                |       |        |      |              |       |        |   |   |        |       
|                                                                                                              | Loss from operations                           |                                |        |          |              |   |              | (7.7         | )    |                |       | (17.5  | )    |              |       |       |   |   |        | (25.2  | )    
|                                                                                                              | Net gain (loss) on divestitures                |                                |        | 22.2      |              |   |              | (5.2         | )    |                |       | (8.6   | )    |              |       |       |   |   |        | 8.4    |      
|                                                                                                              |                                                |                                |        |           |              |   |              |              |      |                |       |        |      |              |      
|Total discontinued operations                                                                                 |                                                |                                | 22.2   |           |              |   | (12.9        | )            |      |                | (26.1 | )      |      |              |      |        |   |   | (16.8  | )     
|Cumulative effect of change in method of accounting                                                           |                                                |                                |       |           |              |   | (141.3       | )            |      |                | (46.4 | )      |      |              |      |        |   |   | (187.7 | )     
|                                                                                                              |                                                |                                |        |           |              |   |              |              |      |                |       |        |      |              |      
|                                                                                                              | Net earnings (loss)                            |                                | $      | (223.2    | )            |   | $            | (195.9       | )    |                | $     | (108.6 | )    |              | $     | 304.5  |   |   | $      | (223.2 | )    
|                                                                                                              |                                                |                                |        |           |              |   |              |              |      |                |       |        |      |              |      

99



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##### Table of Contents



MILACRON INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


Consolidating Balance Sheet


|                                                     |                                                                        |                                      |       |           |              |   |              |              |       |                |       |       |       |              |        |        |        |   |       |        |       | 
|---------------------------------------------------- | ---------------------------------------------------------------------- | ------------------------------------ | ----- | --------- | ------------ | - | ------------ | ------------ | ----- | -------------- | ----- | ----- | ----- | ------------ | ------ | ------ | ------ | - | ----- | ------ | ----- | 
|                                                     |                                                                        | December 31, 2004                    |      
|                                                     |                                                                        |                                      |      
|                                                     |                                                                        |                                      |       | Guarantor |              |   | Nonguarantor |              |       | Eliminations & |       |       |      
|                                                     |                                                                        | Milacron Inc.                        |       |           | Subsidiaries |   |              | Subsidiaries |       |                | Other |       |       | Consolidated |       
|                                                     |                                                                        |                                      |       |           |              |   |              |              |       |                |       |       |       |              |       
|                                                     |                                                                        | (In millions)                        |      
|ASSETS                                              
|Current assets                                       |                                                                        |                                      |       |           |              |   |              |              |       |                |       |       |       |              |        |        |        |   |       |       
|                                                     | Cash and cash equivalents                                              |                                      | $     | 23.0      |              |   | $            | 7.9          |       |                | $     | 38.3  |       |              | $      |       |        |   | $     | 69.2   |      
|                                                     | Notes and accounts receivable (excluding intercompany
    receivables) |                                      |       | 1.3       |              |   |              | 75.7         |       |                |       | 57.6  |       |              |        |       |        |   |       | 134.6  |      
|                                                     | Inventories                                                            |                                      |       | (.2       | )            |   |              | 90.2         |       |                |       | 63.9  |       |              |        |       |        |   |       | 153.9  |      
|                                                     | Other current assets                                                   |                                      |       | 12.7      |              |   |              | 16.6         |       |                |       | 19.8  |       |              |        |       |        |   |       | 49.1   |      
|                                                     | Intercompany receivables (payables)                                    |                                      |       | (331.7    | )            |   |              | 218.9        |       |                |       | 115.1 |       |              |        | (2.3   | )      |   |       |       |      
|                                                     |                                                                        |                                      |       |           |              |   |              |              |       |                |       |       |       |              |       
|                                                     |                                                                        | Total current assets                 |       |           | (294.9       | ) |              |              | 409.3 |                |       |       | 294.7 |              |        |        | (2.3   | ) |       |        | 406.8 | 
|                                                     |                                                                        |                                      |       |           |              |   |              |              |       |                |       |       |       |              |       
|Property, plant and equipment  net                  |                                                                        |                                      | 1.1   |           |              |   | 58.9         |              |       |                | 68.4  |       |       |              |       |        |        |   | 128.4 |       
|Goodwill                                             |                                                                        |                                      |      |           |              |   | 52.7         |              |       |                | 33.9  |       |       |              |       |        |        |   | 86.6  |       
|Investment in subsidiaries                           |                                                                        |                                      | 301.0 |           |              |   | 173.8        |              |       |                | (15.8 | )     |       |              | (459.0 | )      |        |   |      |       
|Intercompany advances  net                          |                                                                        |                                      | 461.6 |           |              |   | (499.3       | )            |       |                | 37.7  |       |       |              |       |        |        |   |      |       
|Other noncurrent assets                              |                                                                        |                                      | 37.8  |           |              |   | 59.7         |              |       |                | 20.6  |       |       |              |       |        |        |   | 118.1 |       
|                                                     |                                                                        |                                      |       |           |              |   |              |              |       |                |       |       |       |              |       
|                                                     |                                                                        | Total assets                         |       | $         | 506.6        |   |              | $            | 255.1 |                |       | $     | 439.5 |              |        | $      | (461.3 | ) |       | $      | 739.9 | 
|                                                     |                                                                        |                                      |       |           |              |   |              |              |       |                |       |       |       |              |       
|                                                    
|LIABILITIES AND SHAREHOLDERS EQUITY (DEFICIT)      
|Current liabilities                                  |                                                                        |                                      |       |           |              |   |              |              |       |                |       |       |       |              |        |        |        |   |       |       
|                                                     | Short-term borrowings                                                  |                                      | $     | 11.0      |              |   | $            |             |       |                | $     | .2    |       |              | $      |       |        |   | $     | 11.2   |      
|                                                     | Long-term debt and capital lease obligations due within one year       |                                      |       | 1.0       |              |   |              |             |       |                |       | 5.0   |       |              |        |       |        |   |       | 6.0    |      
|                                                     | Trade accounts payable                                                 |                                      |       | 6.8       |              |   |              | 39.2         |       |                |       | 34.3  |       |              |        |       |        |   |       | 80.3   |      
|                                                     | Advance billings and deposits                                          |                                      |       |          |              |   |              | 12.5         |       |                |       | 6.1   |       |              |        |       |        |   |       | 18.6   |      
|                                                     | Accrued and other current liabilities                                  |                                      |       | 29.4      |              |   |              | 26.9         |       |                |       | 41.0  |       |              |        |       |        |   |       | 97.3   |      
|                                                     |                                                                        |                                      |       |           |              |   |              |              |       |                |       |       |       |              |       
|                                                     |                                                                        | Total current liabilities            |       |           | 48.2         |   |              |              | 78.6  |                |       |       | 86.6  |              |        |        |       |   |       |        | 213.4 | 
|                                                     |                                                                        |                                      |       |           |              |   |              |              |       |                |       |       |       |              |       
|Long-term accrued liabilities                        |                                                                        |                                      | 179.7 |           |              |   | 7.7          |              |       |                | 52.8  |       |       |              |       |        |        |   | 240.2 |       
|Long-term debt                                       |                                                                        |                                      | 228.3 |           |              |   |             |              |       |                | 7.6   |       |       |              |       |        |        |   | 235.9 |       
|                                                     |                                                                        |                                      |       |           |              |   |              |              |       |                |       |       |       |              |       
|                                                     | Total liabilities                                                      |                                      |       | 456.2     |              |   |              | 86.3         |       |                |       | 147.0 |       |              |        |       |        |   |       | 689.5  |      
|                                                     |                                                                        |                                      |       |           |              |   |              |              |       |                |       |       |       |              |       
|Commitments and contingencies                        |                                                                        |                                      |      |           |              |   |             |              |       |                |      |       |       |              |       |        |        |   |      |       
|Shareholders equity (deficit)                       |                                                                        |                                      |       |           |              |   |              |              |       |                |       |       |       |              |        |        |        |   |       |       
|                                                     | 4% Cumulative Preferred shares                                         |                                      |       | 6.0       |              |   |              |             |       |                |       |      |       |              |        |       |        |   |       | 6.0    |      
|                                                     | 6% Series B Convertible Preferred Stock                                |                                      |       | 112.9     |              |   |              |             |       |                |       |      |       |              |        |       |        |   |       | 112.9  |      
|                                                     | Common shares, $.01 par value                                          |                                      |       | .5        |              |   |              | 25.4         |       |                |       | 12.8  |       |              |        | (38.2  | )      |   |       | .5     |      
|                                                     | Capital in excess of par value                                         |                                      |       | 347.2     |              |   |              | 316.4        |       |                |       | 78.7  |       |              |        | (395.1 | )      |   |       | 347.2  |      
|                                                     | Contingent warrants                                                    |                                      |       | .5        |              |   |              |             |       |                |       |      |       |              |        |       |        |   |       | .5     |      
|                                                     | Reinvested earnings (accumulated deficit)                              |                                      |       | (312.7    | )            |   |              | (146.2       | )     |                |       | 180.3 |       |              |        | (34.1  | )      |   |       | (312.7 | )    
|                                                     | Other comprehensive income (accumulated other comprehensive loss)      |                                      |       | (104.0    | )            |   |              | (26.8        | )     |                |       | 20.7  |       |              |        | 6.1    |        |   |       | (104.0 | )    
|                                                     |                                                                        |                                      |       |           |              |   |              |              |       |                |       |       |       |              |       
|                                                     |                                                                        | Total shareholders equity (deficit) |       |           | 50.4         |   |              |              | 168.8 |                |       |       | 292.5 |              |        |        | (461.3 | ) |       |        | 50.4  | 
|                                                     |                                                                        |                                      |       |           |              |   |              |              |       |                |       |       |       |              |       
|Total liabilities and shareholders equity (deficit) |                                                                        | $                                    | 506.6 |           |              | $ | 255.1        |              |       | $              | 439.5 |       |       | $            | (461.3 | )      |        | $ | 739.9 |       
|                                                     |                                                                        |                                      |       |           |              |   |              |              |       |                |       |       |       |              |       

100



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##### Table of Contents



MILACRON INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


Consolidating Balance Sheet


|                                                                  |                                                                        |                                              |       |           |              |   |              |              |       |                |       |       |       |              |        |        |        |   |       |        |       |  
|----------------------------------------------------------------- | ---------------------------------------------------------------------- | -------------------------------------------- | ----- | --------- | ------------ | - | ------------ | ------------ | ----- | -------------- | ----- | ----- | ----- | ------------ | ------ | ------ | ------ | - | ----- | ------ | ----- | -
|                                                                  |                                                                        | December 31, 2003                            |      
|                                                                  |                                                                        |                                              |      
|                                                                  |                                                                        |                                              |       | Guarantor |              |   | Nonguarantor |              |       | Eliminations & |       |       |      
|                                                                  |                                                                        | Milacron Inc.                                |       |           | Subsidiaries |   |              | Subsidiaries |       |                | Other |       |       | Consolidated |       
|                                                                  |                                                                        |                                              |       |           |              |   |              |              |       |                |       |       |       |              |       
|                                                                  |                                                                        | (In millions)                                |      
|ASSETS                                                           
|Current assets                                                    |                                                                        |                                              |       |           |              |   |              |              |       |                |       |       |       |              |        |        |        |   |       |       
|                                                                  | Cash and cash equivalents                                              |                                              | $     | 26.7      |              |   | $            | 14.3         |       |                | $     | 51.8  |       |              | $      |       |        |   | $     | 92.8   |      
|                                                                  | Notes and accounts receivable (excluding intercompany
    receivables) |                                              |       | 1.7       |              |   |              | 35.3         |       |                |       | 56.8  |       |              |        |       |        |   |       | 93.8   |      
|                                                                  | Inventories                                                            |                                              |       | .9        |              |   |              | 88.8         |       |                |       | 59.8  |       |              |        |       |        |   |       | 149.5  |      
|                                                                  | Other current assets                                                   |                                              |       | 13.9      |              |   |              | 11.0         |       |                |       | 20.3  |       |              |        |       |        |   |       | 45.2   |      
|                                                                  | Intercompany receivables (payables)                                    |                                              |       | (326.4    | )            |   |              | 233.9        |       |                |       | 94.8  |       |              |        | (2.3   | )      |   |       |       |      
|                                                                  |                                                                        |                                              |       |           |              |   |              |              |       |                |       |       |       |              |       
|                                                                  |                                                                        | Current assets of continuing operations      |       |           | (283.2       | ) |              |              | 383.3 |                |       |       | 283.5 |              |        |        | (2.3   | ) |       |        | 381.3 |  
|                                                                  | Assets of discontinued operations                                      |                                              |       |          |              |   |              | 7.2          |       |                |       |      |       |              |        |       |        |   |       | 7.2    |      
|                                                                  |                                                                        |                                              |       |           |              |   |              |              |       |                |       |       |       |              |       
|                                                                  |                                                                        | Total current assets                         |       |           | (283.2       | ) |              |              | 390.5 |                |       |       | 283.5 |              |        |        | (2.3   | ) |       |        | 388.5 |  
|Property, plant and equipment  net                               |                                                                        |                                              | 1.3   |           |              |   | 69.5         |              |       |                | 70.0  |       |       |              |       |        |        |   | 140.8 |       
|Goodwill                                                          |                                                                        |                                              |      |           |              |   | 52.3         |              |       |                | 31.5  |       |       |              |       |        |        |   | 83.8  |       
|Investment in subsidiaries                                        |                                                                        |                                              | 310.9 |           |              |   | 198.0        |              |       |                | (15.8 | )     |       |              | (493.1 | )      |        |   |      |       
|Intercompany advances  net                                       |                                                                        |                                              | 297.8 |           |              |   | (332.4       | )            |       |                | 34.6  |       |       |              |       |        |        |   |      |       
|Other noncurrent assets                                           |                                                                        |                                              | 32.7  |           |              |   | 72.9         |              |       |                | 14.7  |       |       |              |       |        |        |   | 120.3 |       
|                                                                  |                                                                        |                                              |       |           |              |   |              |              |       |                |       |       |       |              |       
|                                                                  |                                                                        | Total assets                                 |       | $         | 359.5        |   |              | $            | 450.8 |                |       | $     | 418.5 |              |        | $      | (495.4 | ) |       | $      | 733.4 |  
|                                                                  |                                                                        |                                              |       |           |              |   |              |              |       |                |       |       |       |              |       
|                                                                 
|LIABILITIES AND SHAREHOLDERS EQUITY (DEFICIT)                   
|Current liabilities                                               |                                                                        |                                              |       |           |              |   |              |              |       |                |       |       |       |              |        |        |        |   |       |       
|                                                                  | Short-term borrowings                                                  |                                              | $     | 42.0      |              |   | $            |             |       |                | $     | .6    |       |              | $      |       |        |   | $     | 42.6   |      
|                                                                  | Long-term debt and capital lease obligations due within one year       |                                              |       | 115.9     |              |   |              |             |       |                |       | 1.4   |       |              |        |       |        |   |       | 117.3  |      
|                                                                  | Trade accounts payable                                                 |                                              |       | 2.6       |              |   |              | 31.9         |       |                |       | 33.4  |       |              |        |       |        |   |       | 67.9   |      
|                                                                  | Advance billings and deposits                                          |                                              |       |          |              |   |              | 9.6          |       |                |       | 5.6   |       |              |        |       |        |   |       | 15.2   |      
|                                                                  | Accrued and other current liabilities                                  |                                              |       | 35.5      |              |   |              | 62.3         |       |                |       | 18.3  |       |              |        |       |        |   |       | 116.1  |      
|                                                                  |                                                                        |                                              |       |           |              |   |              |              |       |                |       |       |       |              |       
|                                                                  |                                                                        | Current liabilities of continuing operations |       |           | 196.0        |   |              |              | 103.8 |                |       |       | 59.3  |              |        |        |       |   |       |        | 359.1 |  
|                                                                  | Liabilities of discontinued operations                                 |                                              |       |          |              |   |              | 1.8          |       |                |       |      |       |              |        |       |        |   |       | 1.8    |      
|                                                                  |                                                                        |                                              |       |           |              |   |              |              |       |                |       |       |       |              |       
|                                                                  |                                                                        | Total current liabilities                    |       |           | 196.0        |   |              |              | 105.6 |                |       |       | 59.3  |              |        |        |       |   |       |        | 360.9 |  
|Long-term accrued liabilities                                     |                                                                        |                                              | 177.8 |           |              |   | 10.3         |              |       |                | 44.5  |       |       |              |       |        |        |   | 232.6 |       
|Long-term debt                                                    |                                                                        |                                              | 9.3   |           |              |   | 142.6        |              |       |                | 11.6  |       |       |              |       |        |        |   | 163.5 |       
|                                                                  |                                                                        |                                              |       |           |              |   |              |              |       |                |       |       |       |              |       
|                                                                  | Total liabilities                                                      |                                              |       | 383.1     |              |   |              | 258.5        |       |                |       | 115.4 |       |              |        |       |        |   |       | 757.0  |      
|Commitments and contingencies                                     |                                                                        |                                              |      |           |              |   |             |              |       |                |      |       |       |              |       |        |        |   |      |       
|Shareholders equity (deficit)
    4% Cumulative Preferred shares |                                                                        |                                              | 6.0   |           |              |   |             |              |       |                |      |       |       |              |       |        |        |   | 6.0   |       
|                                                                  | Common shares, $1.00 par value                                         |                                              |       | 34.8      |              |   |              | 34.4         |       |                |       | 12.8  |       |              |        | (47.2  | )      |   |       | 34.8   |      
|                                                                  | Capital in excess of par value                                         |                                              |       | 284.0     |              |   |              | 294.1        |       |                |       | 78.2  |       |              |        | (372.3 | )      |   |       | 284.0  |      
|                                                                  | Reinvested earnings (accumulated deficit)                              |                                              |       | (241.7    | )            |   |              | (111.9       | )     |                |       | 200.3 |       |              |        | (88.4  | )      |   |       | (241.7 | )    
|                                                                  | Other comprehensive income (accumulated other comprehensive loss)      |                                              |       | (106.7    | )            |   |              | (24.3        | )     |                |       | 11.8  |       |              |        | 12.5   |        |   |       | (106.7 | )    
|                                                                  |                                                                        |                                              |       |           |              |   |              |              |       |                |       |       |       |              |       
|                                                                  |                                                                        | Total shareholders equity (deficit)         |       |           | (23.6        | ) |              |              | 192.3 |                |       |       | 303.1 |              |        |        | (495.4 | ) |       |        | (23.6 | )
|                                                                  |                                                                        |                                              |       |           |              |   |              |              |       |                |       |       |       |              |       
|Total liabilities and shareholders equity (deficit)              |                                                                        | $                                            | 359.5 |           |              | $ | 450.8        |              |       | $              | 418.5 |       |       | $            | (495.4 | )      |        | $ | 733.4 |       
|                                                                  |                                                                        |                                              |       |           |              |   |              |              |       |                |       |       |       |              |       

101



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##### Table of Contents



MILACRON INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


Consolidating Statement of Cash Flows


|                                                                                     |                                                                                   |                                                           |                                                  |           |              |       |              |              |        |                |       |      |       |              |   |      |       |   |       |        |       |       |  
|------------------------------------------------------------------------------------ | --------------------------------------------------------------------------------- | --------------------------------------------------------- | ------------------------------------------------ | --------- | ------------ | ----- | ------------ | ------------ | ------ | -------------- | ----- | ---- | ----- | ------------ | - | ---- | ----- | - | ----- | ------ | ----- | ----- | -
|                                                                                     |                                                                                   | Year Ended December 31, 2004                              |                                                 
|                                                                                     |                                                                                   |                                                           |                                                 
|                                                                                     |                                                                                   |                                                           |                                                  | Guarantor |              |       | Nonguarantor |              |        | Eliminations & |       |      |      
|                                                                                     |                                                                                   | Milacron Inc.                                             |                                                  |           | Subsidiaries |       |              | Subsidiaries |        |                | Other |      |       | Consolidated |  
|                                                                                     |                                                                                   |                                                           |                                                  |           |              |       |              |              |        |                |       |      |       |              |  
|                                                                                     |                                                                                   | (In millions)                                             |                                                 
|Increase (decrease) in cash and cash equivalents Operating
    activities cash flows |                                                                                   |                                                           |                                                  |           |              |       |              |              |        |                |       |      |       |              |   |      |       |   |       |       
|                                                                                     | Net earnings (loss)                                                               |                                                           | $                                                | (51.8     | )            |       | $            | (6.5         | )      |                | $     | (4.2 | )     |              | $ | 10.7 |       |   | $     | (51.8  | )    
|                                                                                     | Operating activities providing (using) cash
    Loss from discontinued operations |                                                           |                                                  |          |              |       |              | 1.3          |        |                |       |     |       |              |   |     |       |   |       | 1.3    |      
|                                                                                     |                                                                                   | Net (gain) loss on divestiture                            |                                                  |           | (.8          | )     |              |              |       |                |       |      |      |              |   |      |      |   |       |        | (.8   | )    
|                                                                                     |                                                                                   | Depreciation                                              |                                                  |           | .2           |       |              |              | 11.2   |                |       |      | 7.5   |              |   |      |      |   |       |        | 18.9  |      
|                                                                                     |                                                                                   | Amortization of intangibles                               |                                                  |           |             |       |              |              | 1.4    |                |       |      |      |              |   |      |      |   |       |        | 1.4   |      
|                                                                                     |                                                                                   | Refinancing costs                                         |                                                  |           | 15.8         |       |              |              | 5.6    |                |       |      |      |              |   |      |      |   |       |        | 21.4  |      
|                                                                                     |                                                                                   | Restructuring costs                                       |                                                  |           | .1           |       |              |              | 7.9    |                |       |      | 5.0   |              |   |      |      |   |       |        | 13.0  |      
|                                                                                     |                                                                                   | Equity in (earnings) losses of subsidiaries               |                                                  |           | 26.8         |       |              |              | 11.6   |                |       |      |      |              |   |      | (38.4 | ) |       |        |      |      
|                                                                                     |                                                                                   | Distributions from equity subsidiaries                    |                                                  |           |             |       |              |              | (12.0  | )              |       |      | (15.7 | )            |   |      | 27.7  |   |       |        |      |      
|                                                                                     |                                                                                   | Deferred income taxes                                     |                                                  |           | .9           |       |              |              | 5.0    |                |       |      | 2.8   |              |   |      |      |   |       |        | 8.7   |      
|                                                                                     |                                                                                   | Working capital changes
    Notes and accounts receivable |                                                  |           | .6           |       |              |              | (40.1  | )              |       |      | 3.4   |              |   |      |      |   |       |        | (36.1 | )    
|                                                                                     |                                                                                   |                                                           | Inventories                                      |           |              | 1.1   |              |              |        | (2.7           | )     |      |       | .5           |   |      |       |  |       |        |       | (1.1  | )
|                                                                                     |                                                                                   |                                                           | Other current assets                             |           |              | 4.7   |              |              |        | (3.3           | )     |      |       | 1.6          |   |      |       |  |       |        |       | 3.0   |  
|                                                                                     |                                                                                   |                                                           | Trade accounts payable                           |           |              | 3.1   |              |              |        | 7.2            |       |      |       | (1.0         | ) |      |       |  |       |        |       | 9.3   |  
|                                                                                     |                                                                                   |                                                           | Other current liabilities                        |           |              | (11.4 | )            |              |        | (9.8           | )     |      |       | (9.2         | ) |      |       |  |       |        |       | (30.4 | )
|                                                                                     |                                                                                   | Decrease in other noncurrent assets                       |                                                  |           | 2.3          |       |              |              |       |                |       |      | .7    |              |   |      |      |   |       |        | 3.0   |      
|                                                                                     |                                                                                   | Increase (decrease) in long-term accrued liabilities      |                                                  |           | (2.9         | )     |              |              | (.8    | )              |       |      | 1.8   |              |   |      |      |   |       |        | (1.9  | )    
|                                                                                     |                                                                                   | Other  net                                               |                                                  |           | (.5          | )     |              |              |       |                |       |      | .9    |              |   |      |      |   |       |        | .4    |      
|                                                                                     |                                                                                   |                                                           |                                                  |           |              |       |              |              |        |                |       |      |       |              |  
|                                                                                     |                                                                                   |                                                           | Net cash provided (used) by operating activities |           |              | (11.8 | )            |              |        | (24.0          | )     |      |       | (5.9         | ) |      |       |  |       |        |       | (41.7 | )
|Investing activities cash flows                                                      |                                                                                   |                                                           |                                                  |           |              |       |              |              |        |                |       |      |       |              |   |      |       |   |       |       
|                                                                                     | Capital expenditures                                                              |                                                           |                                                  |          |              |       |              | (4.6         | )      |                |       | (4.2 | )     |              |   |     |       |   |       | (8.8   | )    
|                                                                                     | Net disposals of plant, property and equipment                                    |                                                           |                                                  |          |              |       |              | .3           |        |                |       | .3   |       |              |   |     |       |   |       | .6     |      
|                                                                                     | Divestitures                                                                      |                                                           |                                                  | 8.0       |              |       |              |             |        |                |       |     |       |              |   |     |       |   |       | 8.0    |      
|                                                                                     |                                                                                   |                                                           |                                                  |           |              |       |              |              |        |                |       |      |       |              |  
|                                                                                     |                                                                                   | Net cash provided (used) by investing activities          |                                                  |           | 8.0          |       |              |              | (4.3   | )              |       |      | (3.9  | )            |   |      |      |   |       |        | (.2   | )    
|Financing activities cash flows                                                      |                                                                                   |                                                           |                                                  |           |              |       |              |              |        |                |       |      |       |              |   |      |       |   |       |       
|                                                                                     | Issuance of long-term debt                                                        |                                                           |                                                  | 219.8     |              |       |              |             |        |                |       |     |       |              |   |     |       |   |       | 219.8  |      
|                                                                                     | Repayments of long-term debt                                                      |                                                           |                                                  | (115.7    | )            |       |              | (144.7       | )      |                |       | (1.1 | )     |              |   |     |       |   |       | (261.5 | )    
|                                                                                     | Increase (decrease) in short-term borrowings                                      |                                                           |                                                  | 69.0      |              |       |              |             |        |                |       | (.5  | )     |              |   |     |       |   |       | 68.5   |      
|                                                                                     | Issuance of common shares                                                         |                                                           |                                                  | 25.2      |              |       |              |             |        |                |       |     |       |              |   |     |       |   |       | 25.2   |      
|                                                                                     | Debt issuance costs                                                               |                                                           |                                                  | (27.8     | )            |       |              |             |        |                |       |     |       |              |   |     |       |   |       | (27.8  | )    
|                                                                                     | Dividends paid                                                                    |                                                           |                                                  | (3.3      | )            |       |              |             |        |                |       |     |       |              |   |     |       |   |       | (3.3   | )    
|                                                                                     |                                                                                   |                                                           |                                                  |           |              |       |              |              |        |                |       |      |       |              |  
|                                                                                     |                                                                                   | Net cash provided (used) by financing activities          |                                                  |           | 167.2        |       |              |              | (144.7 | )              |       |      | (1.6  | )            |   |      |      |   |       |        | 20.9  |      
|Intercompany receivables and payables                                                |                                                                                   |                                                           | (8.1                                             | )         |              |       | 6.3          |              |        |                | 1.8   |      |       |              |  |      |       |   |      |       
|Intercompany advances                                                                |                                                                                   |                                                           | (150.7                                           | )         |              |       | 156.0        |              |        |                | (5.3  | )    |       |              |  |      |       |   |      |       
|Effect of exchange rate fluctuations on cash and cash
    equivalents                |                                                                                   |                                                           |                                                 |           |              |       | .2           |              |        |                | 1.4   |      |       |              |  |      |       |   | 1.6   |       
|Cash flows related to discontinued operations                                        |                                                                                   |                                                           | (8.3                                             | )         |              |       | 4.1          |              |        |                |      |      |       |              |  |      |       |   | (4.2  | )     
|                                                                                     |                                                                                   |                                                           |                                                  |           |              |       |              |              |        |                |       |      |       |              |  
|Decrease in cash and cash equivalents                                                |                                                                                   |                                                           | (3.7                                             | )         |              |       | (6.4         | )            |        |                | (13.5 | )    |       |              |  |      |       |   | (23.6 | )     
|Cash and cash equivalents at beginning of year                                       |                                                                                   |                                                           | 26.7                                             |           |              |       | 14.3         |              |        |                | 51.8  |      |       |              |  |      |       |   | 92.8  |       
|                                                                                     |                                                                                   |                                                           |                                                  |           |              |       |              |              |        |                |       |      |       |              |  
|Cash and cash equivalents at end of year                                             |                                                                                   | $                                                         | 23.0                                             |           |              | $     | 7.9          |              |        | $              | 38.3  |      |       | $            |  |      |       | $ | 69.2  |       
|                                                                                     |                                                                                   |                                                           |                                                  |           |              |       |              |              |        |                |       |      |       |              |  

102



---



##### Table of Contents



MILACRON INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


Consolidating Statement of Cash Flows


|                                                                      |                                 |                                                      |                                                  |                                       |              |       |              |              |       |                |       |   |       |              |      |   |        |   |       |   |        |       |       |  
|--------------------------------------------------------------------- | ------------------------------- | ---------------------------------------------------- | ------------------------------------------------ | ------------------------------------- | ------------ | ----- | ------------ | ------------ | ----- | -------------- | ----- | - | ----- | ------------ | ---- | - | ------ | - | ----- | - | ------ | ----- | ----- | -
|                                                                      |                                 | Year Ended December 31, 2003                         |                                                 
|                                                                      |                                 |                                                      |                                                 
|                                                                      |                                 |                                                      |                                                  | Guarantor                             |              |       | Nonguarantor |              |       | Eliminations & |       |   |      
|                                                                      |                                 | Milacron Inc.                                        |                                                  |                                       | Subsidiaries |       |              | Subsidiaries |       |                | Other |   |       | Consolidated |     
|                                                                      |                                 |                                                      |                                                  |                                       |              |       |              |              |       |                |       |   |       |              |     
|                                                                      |                                 | (In millions)                                        |                                                 
|Increase (decrease) in cash and cash equivalents                      |                                 |                                                      |                                                  |                                       |              |       |              |              |       |                |       |   |       |              |      |   |        |   |       |  
|                                                                      | Operating activities cash flows |                                                      |                                                  |                                       |              |       |              |              |       |                |       |   |       |              |      |   |        |   |       |   |       
|                                                                      |                                 | Net loss                                             |                                                  | $                                     | (190.9       | )     |              | $            | (60.2 | )              |       | $ | (22.1 | )            |      | $ | 82.3   |   |       | $ | (190.9 | )    
|                                                                      |                                 | Operating activities providing (using) cash          |                                                  |                                       |              |       |              |              |       |                |       |   |       |              |      |   |        |   |       |   |        |      
|                                                                      |                                 | Loss from discontinued operations                    |                                                  |                                       |             |       |              |              | 6.4   |                |       |   |      |              |      |   |       |   |       |   | 6.4    |      
|                                                                      |                                 | Net loss on divestitures                             |                                                  |                                       | .8           |       |              |              |      |                |       |   |      |              |      |   |       |   |       |   | .8     |      
|                                                                      |                                 | Depreciation                                         |                                                  |                                       | .4           |       |              |              | 12.4  |                |       |   | 7.5   |              |      |   |       |   |       |   | 20.3   |      
|                                                                      |                                 | Amortization of intangibles                          |                                                  |                                       |             |       |              |              | 1.4   |                |       |   |      |              |      |   |       |   |       |   | 1.4    |      
|                                                                      |                                 | Refinancing costs                                    |                                                  |                                       | 1.8          |       |              |              |      |                |       |   |      |              |      |   |       |   |       |   | 1.8    |      
|                                                                      |                                 | Restructuring costs                                  |                                                  |                                       | .7           |       |              |              | 8.8   |                |       |   | 17.6  |              |      |   |       |   |       |   | 27.1   |      
|                                                                      |                                 | Equity in (earnings) losses of subsidiaries          |                                                  |                                       | 119.8        |       |              |              | (4.9  | )              |       |   |      |              |      |   | (114.9 | ) |       |   |       |      
|                                                                      |                                 | Distributions from equity subsidiaries               |                                                  |                                       |             |       |              |              | (11.9 | )              |       |   | (20.7 | )            |      |   | 32.6   |   |       |   |       |      
|                                                                      |                                 | Goodwill impairment charge                           |                                                  |                                       |             |       |              |              | 65.6  |                |       |   |      |              |      |   |       |   |       |   | 65.6   |      
|                                                                      |                                 | Deferred income taxes                                |                                                  |                                       | 81.3         |       |              |              | (15.7 | )              |       |   | 8.3   |              |      |   |       |   |       |   | 73.9   |      
|                                                                      |                                 | Working capital changes                              |                                                  |                                       |              |       |              |              |       |                |       |   |       |              |      |   |        |   |       |   |        |      
|                                                                      |                                 |                                                      | Notes and accounts receivable                    |                                       |              | (.5   | )            |              |       | 2.9            |       |   |       | 4.2          |      |   |        |  |       |   |        | 6.6   |      
|                                                                      |                                 |                                                      | Inventories                                      |                                       |              |      |              |              |       | 13.4           |       |   |       | 8.9          |      |   |        |  |       |   |        | 22.3  |      
|                                                                      |                                 |                                                      | Other current assets                             |                                       |              | 9.0   |              |              |       | 2.8            |       |   |       | 2.1          |      |   |        |  |       |   |        | 13.9  |      
|                                                                      |                                 |                                                      | Trade accounts payable                           |                                       |              | .4    |              |              |       | (7.3           | )     |   |       | .8           |      |   |        |  |       |   |        | (6.1  | )    
|                                                                      |                                 |                                                      | Other current liabilities                        |                                       |              | (10.6 | )            |              |       | (17.7          | )     |   |       | (3.0         | )    |   |        |  |       |   |        | (31.3 | )    
|                                                                      |                                 | Decrease (increase) in other noncurrent assets       |                                                  |                                       | (3.0         | )     |              |              | 1.6   |                |       |   | .8    |              |      |   |       |   |       |   | (.6    | )    
|                                                                      |                                 | Increase (decrease) in long-term accrued liabilities |                                                  |                                       | .3           |       |              |              | (.8   | )              |       |   | (2.2  | )            |      |   |       |   |       |   | (2.7   | )    
|                                                                      |                                 | Other  net                                          |                                                  |                                       | 7.7          |       |              |              | (3.5  | )              |       |   | (2.7  | )            |      |   |       |   |       |   | 1.5    |      
|                                                                      |                                 |                                                      |                                                  |                                       |              |       |              |              |       |                |       |   |       |              |     
|                                                                      |                                 |                                                      | Net cash provided (used) by operating activities |                                       |              | 17.2  |              |              |       | (6.7           | )     |   |       | (.5          | )    |   |        |  |       |   |        | 10.0  |      
|                                                                      | Investing activities cash flows |                                                      |                                                  |                                       |              |       |              |              |       |                |       |   |       |              |      |   |        |   |       |   |       
|                                                                      |                                 | Capital expenditures                                 |                                                  |                                       |             |       |              |              | (4.5  | )              |       |   | (2.0  | )            |      |   |       |   |       |   | (6.5   | )    
|                                                                      |                                 | Net disposals of plant, property and equipment       |                                                  |                                       | .5           |       |              |              | 1.7   |                |       |   | .3    |              |      |   |       |   |       |   | 2.5    |      
|                                                                      |                                 | Divestitures                                         |                                                  |                                       | (20.3        | )     |              |              |      |                |       |   |      |              |      |   |       |   |       |   | (20.3  | )    
|                                                                      |                                 | Acquisitions                                         |                                                  |                                       |             |       |              |              | (2.9  | )              |       |   | (3.6  | )            |      |   |       |   |       |   | (6.5   | )    
|                                                                      |                                 |                                                      |                                                  |                                       |              |       |              |              |       |                |       |   |       |              |     
|                                                                      |                                 |                                                      |                                                  | Net cash used by investing activities |              |       | (19.8        | )            |       |                | (5.7  | ) |       |              | (5.3 | ) |        |   |      |   |        |       | (30.8 | )
|                                                                      | Financing activities cash flows |                                                      |                                                  |                                       |              |       |              |              |       |                |       |   |       |              |      |   |        |   |       |   |       
|                                                                      |                                 | Repayments of long-term debt                         |                                                  |                                       | (.9          | )     |              |              |      |                |       |   | (1.3  | )            |      |   |       |   |       |   | (2.2   | )    
|                                                                      |                                 | Decrease in short-term borrowings                    |                                                  |                                       |             |       |              |              |      |                |       |   | (2.6  | )            |      |   |       |   |       |   | (2.6   | )    
|                                                                      |                                 | Dividends paid                                       |                                                  |                                       | (.8          | )     |              |              |      |                |       |   |      |              |      |   |       |   |       |   | (.8    | )    
|                                                                      |                                 |                                                      |                                                  |                                       |              |       |              |              |       |                |       |   |       |              |     
|                                                                      |                                 |                                                      |                                                  | Net cash used by financing activities |              |       | (1.7         | )            |       |                |      |   |       |              | (3.9 | ) |        |   |      |   |        |       | (5.6  | )
|Intercompany receivables and payables                                 |                                 |                                                      | 14.3                                             |                                       |              |       | 32.9         |              |       |                | (47.2 | ) |       |              |     |   |        |   |      |  
|Intercompany advances                                                 |                                 |                                                      | .7                                               |                                       |              |       | (7.5         | )            |       |                | 6.8   |   |       |              |     |   |        |   |      |  
|Effect of exchange rate fluctuations on cash and cash
    equivalents |                                 |                                                      |                                                 |                                       |              |       | .4           |              |       |                | 8.4   |   |       |              |     |   |        |   | 8.8   |  
|Cash flows related to discontinued operations                         |                                 |                                                      | (5.4                                             | )                                     |              |       | (6.5         | )            |       |                |      |   |       |              |     |   |        |   | (11.9 | )
|                                                                      |                                 |                                                      |                                                  |                                       |              |       |              |              |       |                |       |   |       |              |     
|Increase (decrease) in cash and cash equivalents                      |                                 |                                                      | 5.3                                              |                                       |              |       | 6.9          |              |       |                | (41.7 | ) |       |              |     |   |        |   | (29.5 | )
|Cash and cash equivalents at beginning of year                        |                                 |                                                      | 21.4                                             |                                       |              |       | 7.4          |              |       |                | 93.5  |   |       |              |     |   |        |   | 122.3 |  
|                                                                      |                                 |                                                      |                                                  |                                       |              |       |              |              |       |                |       |   |       |              |     
|Cash and cash equivalents at end of year                              |                                 | $                                                    | 26.7                                             |                                       |              | $     | 14.3         |              |       | $              | 51.8  |   |       | $            |     |   |        | $ | 92.8  |  
|                                                                      |                                 |                                                      |                                                  |                                       |              |       |              |              |       |                |       |   |       |              |     

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MILACRON INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


Consolidating Statement of Cash Flows


|                                                                      |                                 |                                                                                   |                                                      |                                                  |              |       |              |              |        |                |       |   |        |              |       |   |       |        |       |   |        |       |        |  
|--------------------------------------------------------------------- | ------------------------------- | --------------------------------------------------------------------------------- | ---------------------------------------------------- | ------------------------------------------------ | ------------ | ----- | ------------ | ------------ | ------ | -------------- | ----- | - | ------ | ------------ | ----- | - | ----- | ------ | ----- | - | ------ | ----- | ------ | -
|                                                                      |                                 | Year Ended December 31, 2002                                                      |                                                     
|                                                                      |                                 |                                                                                   |                                                     
|                                                                      |                                 |                                                                                   |                                                      | Guarantor                                        |              |       | Nonguarantor |              |        | Eliminations & |       |   |       
|                                                                      |                                 | Milacron Inc.                                                                     |                                                      |                                                  | Subsidiaries |       |              | Subsidiaries |        |                | Other |   |        | Consolidated |      
|                                                                      |                                 |                                                                                   |                                                      |                                                  |              |       |              |              |        |                |       |   |        |              |      
|                                                                      |                                 | (In millions)                                                                     |                                                     
|Increase (decrease) in cash and cash equivalents                      |                                 |                                                                                   |                                                      |                                                  |              |       |              |              |        |                |       |   |        |              |       |   |       |        |       |  
|                                                                      | Operating activities cash flows |                                                                                   |                                                      |                                                  |              |       |              |              |        |                |       |   |        |              |       |   |       |        |       |   |       
|                                                                      |                                 | Net earnings (loss)                                                               |                                                      | $                                                | (223.2       | )     |              | $            | (195.9 | )              |       | $ | (108.6 | )            |       | $ | 304.5 |        |       | $ | (223.2 | )    
|                                                                      |                                 | Operating activities providing (using) cash Loss from
    discontinued operations |                                                      |                                                  |             |       |              |              | 7.7    |                |       |   | 17.5   |              |       |   |      |        |       |   | 25.2   |      
|                                                                      |                                 |                                                                                   | Net gain (loss) on divestitures                      |                                                  |              | (22.2 | )            |              |        | 5.2            |       |   |        | 8.6          |       |   |       |       |       |   |        | (8.4  | )     
|                                                                      |                                 |                                                                                   | Cumulative effect on change in method of accounting  |                                                  |              |      |              |              |        | 141.3          |       |   |        | 46.4         |       |   |       |       |       |   |        | 187.7 |       
|                                                                      |                                 |                                                                                   | Depreciation                                         |                                                  |              | .7    |              |              |        | 14.3           |       |   |        | 7.0          |       |   |       |       |       |   |        | 22.0  |       
|                                                                      |                                 |                                                                                   | Amortization of intangibles                          |                                                  |              |      |              |              |        | 1.0            |       |   |        |             |       |   |       |       |       |   |        | 1.0   |       
|                                                                      |                                 |                                                                                   | Goodwill impairment charge                           |                                                  |              |      |              |              |        | 1.0            |       |   |        |             |       |   |       |       |       |   |        | 1.0   |       
|                                                                      |                                 |                                                                                   | Restructuring costs                                  |                                                  |              | .7    |              |              |        | 8.7            |       |   |        | 4.5          |       |   |       |       |       |   |        | 13.9  |       
|                                                                      |                                 |                                                                                   | Equity in (earnings) losses of subsidiaries          |                                                  |              | 300.4 |              |              |        | 30.5           |       |   |        | 32.5         |       |   |       | (363.4 | )     |   |        |      |       
|                                                                      |                                 |                                                                                   | Distributions from equity subsidiaries               |                                                  |              |      |              |              |        | (12.4          | )     |   |        | (47.4        | )     |   |       | 59.8   |       |   |        |      |       
|                                                                      |                                 |                                                                                   | Deferred income taxes                                |                                                  |              | (10.9 | )            |              |        | (.4            | )     |   |        | (5.6         | )     |   |       |       |       |   |        | (16.9 | )     
|                                                                      |                                 |                                                                                   | Working capital changes                              |                                                  |              |       |              |              |        |                |       |   |        |              |       |   |       |        |       |   |        |       |       
|                                                                      |                                 |                                                                                   |                                                      | Notes and accounts receivable                    |              |       | 1.6          |              |        |                | 1.2   |   |        |              | 6.9   |   |       |        |      |   |        |       | 9.7    |  
|                                                                      |                                 |                                                                                   |                                                      | Inventories                                      |              |       | .1           |              |        |                | 23.8  |   |        |              | 12.5  |   |       |        |      |   |        |       | 36.4   |  
|                                                                      |                                 |                                                                                   |                                                      | Other current assets                             |              |       |             |              |        |                | 2.4   |   |        |              |      |   |       |        |      |   |        |       | 2.4    |  
|                                                                      |                                 |                                                                                   |                                                      | Trade accounts payable                           |              |       | (1.4         | )            |        |                | 8.2   |   |        |              | .1    |   |       |        |      |   |        |       | 6.9    |  
|                                                                      |                                 |                                                                                   |                                                      | Other current liabilities                        |              |       | 39.8         |              |        |                | (16.0 | ) |        |              | (34.7 | ) |       |        |      |   |        |       | (10.9  | )
|                                                                      |                                 |                                                                                   | Decrease (increase) in other noncurrent assets       |                                                  |              | (3.3  | )            |              |        | (4.8           | )     |   |        | 1.1          |       |   |       |       |       |   |        | (7.0  | )     
|                                                                      |                                 |                                                                                   | Increase (decrease) in long-term accrued liabilities |                                                  |              | (4.7  | )            |              |        |               |       |   |        | .5           |       |   |       |       |       |   |        | (4.2  | )     
|                                                                      |                                 |                                                                                   | Other  net                                          |                                                  |              | 2.4   |              |              |        | (2.5           | )     |   |        | 1.3          |       |   |       | (.9    | )     |   |        | .3    |       
|                                                                      |                                 |                                                                                   |                                                      |                                                  |              |       |              |              |        |                |       |   |        |              |      
|                                                                      |                                 |                                                                                   |                                                      | Net cash provided (used) by operating activities |              |       | 80.0         |              |        |                | 13.3  |   |        |              | (57.4 | ) |       |        |      |   |        |       | 35.9   |  
|                                                                      | Investing activities cash flows |                                                                                   |                                                      |                                                  |              |       |              |              |        |                |       |   |        |              |       |   |       |        |       |   |       
|                                                                      |                                 | Capital expenditures                                                              |                                                      |                                                  |             |       |              |              | (4.6   | )              |       |   | (1.6   | )            |       |   |      |        |       |   | (6.2   | )    
|                                                                      |                                 | Net disposals of plant, property and equipment                                    |                                                      |                                                  |             |       |              |              | 5.6    |                |       |   | 1.9    |              |       |   |      |        |       |   | 7.5    |      
|                                                                      |                                 | Acquisitions                                                                      |                                                      |                                                  |             |       |              |              |       |                |       |   | (4.3   | )            |       |   |      |        |       |   | (4.3   | )    
|                                                                      |                                 | Divestitures                                                                      |                                                      |                                                  | 125.6        |       |              |              |       |                |       |   | 178.3  |              |       |   |      |        |       |   | 303.9  |      
|                                                                      |                                 |                                                                                   |                                                      |                                                  |              |       |              |              |        |                |       |   |        |              |      
|                                                                      |                                 |                                                                                   |                                                      | Net cash used by investing activities            |              |       | 125.6        |              |        |                | 1.0   |   |        |              | 174.3 |   |       |        |      |   |        |       | 300.9  |  
|                                                                      | Financing activities cash flows |                                                                                   |                                                      |                                                  |              |       |              |              |        |                |       |   |        |              |       |   |       |        |       |   |       
|                                                                      |                                 | Issuance of long-term debt                                                        |                                                      |                                                  | 11.5         |       |              |              |       |                |       |   |       |              |       |   |      |        |       |   | 11.5   |      
|                                                                      |                                 | Repayments of long-term debt                                                      |                                                      |                                                  | (.3          | )     |              |              |       |                |       |   | (1.0   | )            |       |   |      |        |       |   | (1.3   | )    
|                                                                      |                                 | Decrease in short-term borrowings                                                 |                                                      |                                                  | (232.0       | )     |              |              |       |                |       |   | (79.6  | )            |       |   |      |        |       |   | (311.6 | )    
|                                                                      |                                 | Issuance of common shares                                                         |                                                      |                                                  | .4           |       |              |              |       |                |       |   |       |              |       |   |      |        |       |   | .4     |      
|                                                                      |                                 | Dividends paid                                                                    |                                                      |                                                  | (1.6         | )     |              |              |       |                |       |   |       |              |       |   |      |        |       |   | (1.6   | )    
|                                                                      |                                 |                                                                                   |                                                      |                                                  |              |       |              |              |        |                |       |   |        |              |      
|                                                                      |                                 |                                                                                   |                                                      | Net cash provided (used) by financing activities |              |       | (222.0       | )            |        |                |      |   |        |              | (80.6 | ) |       |        |      |   |        |       | (302.6 | )
|Intercompany receivables and payables                                 |                                 |                                                                                   | 30.1                                                 |                                                  |              |       | (64.4        | )            |        |                | 34.3  |   |        |              |      |   |       |        |      |  
|Intercompany advances                                                 |                                 |                                                                                   | (44.0                                                | )                                                |              |       | 15.4         |              |        |                | 28.6  |   |        |              |      |   |       |        |      |  
|Effect of exchange rate fluctuations on cash and cash
    equivalents |                                 |                                                                                   |                                                     |                                                  |              |       | .1           |              |        |                | 5.5   |   |        |              |      |   |       |        | 5.6   |  
|Cash flows related to discontinued operations                         |                                 |                                                                                   |                                                     |                                                  |              |       | 32.3         |              |        |                | (39.9 | ) |        |              |      |   |       |        | (7.6  | )
|                                                                      |                                 |                                                                                   |                                                      |                                                  |              |       |              |              |        |                |       |   |        |              |      
|Increase (decrease) in cash and cash equivalents                      |                                 |                                                                                   | (30.3                                                | )                                                |              |       | (2.3         | )            |        |                | 64.8  |   |        |              |      |   |       |        | 32.2  |  
|Cash and cash equivalents at beginning of year                        |                                 |                                                                                   | 51.7                                                 |                                                  |              |       | 9.7          |              |        |                | 28.7  |   |        |              |      |   |       |        | 90.1  |  
|                                                                      |                                 |                                                                                   |                                                      |                                                  |              |       |              |              |        |                |       |   |        |              |      
|Cash and cash equivalents at end of year                              |                                 | $                                                                                 | 21.4                                                 |                                                  |              | $     | 7.4          |              |        | $              | 93.5  |   |        | $            |      |   |       | $      | 122.3 |  
|                                                                      |                                 |                                                                                   |                                                      |                                                  |              |       |              |              |        |                |       |   |        |              |      

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
















| |                          
| | -------------------------
| | /s/ Ernst & Young
    LLP





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SUPPLEMENTARY FINANCIAL INFORMATION


Operating
Results by Quarter (Unaudited)


|                                   |                                         |                                         |       |      |       |   |       |       |   |   |       |      |   |   |       |      |  
|---------------------------------- | --------------------------------------- | --------------------------------------- | ----- | ---- | ----- | - | ----- | ----- | - | - | ----- | ---- | - | - | ----- | ---- | -
|                                   |                                         | 2004                                    |      
|                                   |                                         |                                         |      
|                                   |                                         | Qtr 1                                   |       |      | Qtr 2 |   |       | Qtr 3 |   |   | Qtr 4 |     
|                                   |                                         |                                         |       |      |       |   |       |       |   |   |       |     
|                                   |                                         | (In millions, except per-share amounts) |      
|Sales                              |                                         | $                                       | 188.9 |      |       | $ | 191.7 |       |   | $ | 180.5 |      |   | $ | 213.1 |     
|Manufacturing margins              |                                         |                                         | 32.8  |      |       |   | 35.5  |       |   |   | 34.2  |      |   |   | 43.7  |     
|                                   | Percent of sales                        |                                         |       | 17.4 | %     |   |       | 18.5  | % |   |       | 18.9 | % |   |       | 20.5 | %
|Loss from continuing operations(a) |                                         |                                         | (16.0 | )    |       |   | (27.9 | )     |   |   | (5.5  | )    |   |   | (1.9  | )   
|                                   | Per common share  basic and diluted(b) |                                         |       | (.43 | )     |   |       | (.61  | ) |   |       | (.18 | ) |   |       | (.08 | )
|Discontinued operations            |                                         |                                         | (.6   | )    |       |   | .1    |       |   |   |      |      |   |   |      |     
|                                   | Per common share  basic and diluted(b) |                                         |       | (0.2 | )     |   |       | .01   |   |   |       |     |   |   |       |     |  
|Net loss                           |                                         |                                         | (16.6 | )    |       |   | (27.8 | )     |   |   | (5.5  | )    |   |   | (1.9  | )   
|                                   | Per common share  basic and diluted(b) |                                         |       | (.45 | )     |   |       | (.60  | ) |   |       | (.18 | ) |   |       | (.08 | )

|                                   |                                         |       |       |      |       |   |       |       |   |   |       |       |   |   |       |      |  
|---------------------------------- | --------------------------------------- | ----- | ----- | ---- | ----- | - | ----- | ----- | - | - | ----- | ----- | - | - | ----- | ---- | -
|                                   |                                         | 2003  |      
|                                   |                                         |       |      
|                                   |                                         | Qtr 1 |       |      | Qtr 2 |   |       | Qtr 3 |   |   | Qtr 4 |      
|                                   |                                         |       |       |      |       |   |       |       |   |   |       |      
|Sales                              |                                         | $     | 190.2 |      |       | $ | 181.6 |       |   | $ | 170.2 |       |   | $ | 197.7 |     
|Manufacturing margins              |                                         |       | 32.0  |      |       |   | 28.2  |       |   |   | 31.6  |       |   |   | 40.8  |     
|                                   | Percent of sales(c)                     |       |       | 16.8 | %     |   |       | 15.5  | % |   |       | 18.6  | % |   |       | 20.6 | %
|Loss from continuing operations(d) |                                         |       | (7.6  | )    |       |   | (88.1 | )     |   |   | (65.3 | )     |   |   | (22.7 | )   
|                                   | Per common share  basic and diluted(b) |       |       | (.21 | )     |   |       | (2.41 | ) |   |       | (1.78 | ) |   |       | (.62 | )
|Discontinued operations            |                                         |       | (.7   | )    |       |   | (3.0  | )     |   |   | (2.0  | )     |   |   | (1.5  | )   
|                                   | Per common share  basic and diluted(b) |       |       | (.02 | )     |   |       | (.08  | ) |   |       | (.05  | ) |   |       | (.04 | )
|Net loss(c)                        |                                         |       | (8.3  | )    |       |   | (91.1 | )     |   |   | (67.3 | )     |   |   | (24.2 | )   
|                                   | Per common share  basic and diluted(b) |       |       | (.23 | )     |   |       | (2.49 | ) |   |       | (1.83 | ) |   |       | (.66 | )






|    |  |                                                                                                                                                                                                                                                                                                                                                                                                                         
|--- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | Includes restructuring costs of $1.1 million in
    quarter 1, $1.7 million in quarter 2,
    $2.3 million in quarter 3 and $7.9 million in
    quarter 4, in all cases with no tax benefit.                                                                                                                                                                                                                            
|   
|(b) |  | As discussed more fully in the notes to the Consolidated
    Financial Statements that are included elsewhere herein, the
    number of shares used to compute earnings (loss) per common
    share data for all periods prior to the fourth quarter of 2004
    has been restated to reflect the effects of a bonus
    element inherent in a rights offering that was completed
    in that quarter.                
|   
|(c) |  | In the fourth quarter of 2004, the company elected to change its
    method of accounting for certain U.S. plastics machinery
    inventories from the last-in, first-out (LIFO) method to the
    first-in, first-out (FIFO) method, retroactive to the beginning
    of the year. The Consolidated Financial Statements for all prior
    periods have been restated to conform to the 2004 presentation.             
|   
|(d) |  | Includes restructuring costs of $6.0 million
    ($4.8 million after tax) in quarter 1,
    $6.3 million with no tax benefit in quarter 2,
    $6.4 million ($6.3 million after tax) in
    quarter 3 and $8.4 million ($8.1 million after
    tax) in quarter 4. Also includes goodwill impairment
    charges of $52.3 million in quarter 3 and
    $13.3 million in quarter 4, in both cases with no tax
    benefit.

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








|         |                        
|-------- | -----------------------
|Item 9A. | Controls and Procedures

Disclosure Controls and Procedures




Internal Control Over Financial Reporting








| |   |                                                                                                                                                                                                                                                                                                                                                                
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | pertain to the maintenance of records that, in reasonable
    detail, accurately and fairly reflect the transactions and
    dispositions of the assets of the issuer;                                                                                                                                                                                         
|
| |  | provide reasonable assurance that transactions are recorded as
    necessary to permit preparation of financial statements in
    accordance with generally accepted accounting principles, and
    that receipts and expenditures of the company are being made
    only in accordance with authorizations of management and
    directors of the company; and
|
| |  | provide reasonable assurance regarding prevention or timely
    detection of unauthorized acquisition, use or disposition of the
    companys assets that could have a material effect on the
    financial statements.                                                                                                                                       





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| |   |                                                                                                                 
| | - | ----------------------------------------------------------------------------------------------------------------
| |  | The company has increased its levels of review of complex and
    judgmental accounting issues.                 
|
| |  | The company has initiated a plan to add personnel with technical
    accounting expertise.                      
|
| |  | The company has made a commitment to increase professional
    development for finance and accounting personnel.





1 2








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|         |                  
|-------- | -----------------
|Item 9B. | Other Information






PART III







|         |                                                   
|-------- | --------------------------------------------------
|Item 10. | Directors and Executive Officers of the Registrant



Directors of the Registrant




|                      |  |                      |              |  |                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|--------------------- |  | -------------------- | ------------ |  | ------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Name and Age          |  | Committee Membership |              |  | Positions Held During Last Five Years
|                      |  |                      |              |  |                                      
|Darryl F. Allen (61)  |  |                      | AuditFinance |  |                                       | Director since 1993. Term expires 2006. Mr. Allen is the
    retired Chairman, President and Chief Executive Officer of
    Aeroquip-Vickers, Inc., Maumee, Ohio, a world-wide manufacturer
    and distributor of engineered components and systems for markets
    which include industrial, automotive, aerospace and defense.
    Director of Fifth Third Bancorp.                                                                                
|Sallie B. Bailey (45) |  |                      | Audit        |  |                                       | Director since November 18, 2004. Term expires
    2006.1Ms. Bailey is Senior Vice President, Finance and
    Controller of The Timken Company, Canton, Ohio, a global
    manufacturer of highly-engineered bearings and alloy steels, and
    has served in that capacity since January, 2003. She was
    Corporate Controller from April, 2001, to January, 2003, and
    Director, Finance and Treasurer from November, 1999, to April,
    2001.
|Ronald D. Brown (51)  |  |                      |              |  |                                       | Director since 1999. Term expires 2006. Mr. Brown is
    Chairman, President and Chief Executive Officer of the Company.
    He has served as Chairman and Chief Executive Officer since
    June 1, 2001. Prior thereto, he was President and Chief
    Operating Officer from September 20, 1999, Vice
    President-Finance and Administration and Chief Financial Officer
    from 1997. Director of A.O. Smith Corporation.                      

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|                              |  |                                                                |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|----------------------------- |  | -------------------------------------------------------------- | ------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Name and Age                  |  | Committee Membership                                           |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | Positions Held During Last Five Years
|                              |  |                                                                |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                      
|David L. Burner (65)          |  | AuditPersonnel and Compensation                                |         | Director since 1998. Term expires 2007. Mr. Burner is the
    retired Chairman and Chief Executive Officer of Goodrich
    Corporation, Charlotte, North Carolina, a provider of aircraft
    systems and services. He served in that capacity from July, 1997
    to October, 2003. He was Chief Executive Officer from December,
    1996, to July, 1997, and President from December, 1995, to
    January, 1997. Prior to 1997 he was an Executive Vice President
    of The BFGoodrich Company and the President & Chief
    Operating Officer of BFGoodrich Aerospace. Director of Progress
    Energy, Inc., Briggs & Stratton Corporation, Lance,
    Inc., and Engelhard Corporation.
|Barbara Hackman Franklin (64) |  | FinanceNominating and Corporate Governance                     |         | Director since 1996. Term expires 2005. Ms. Franklin is
    President and Chief Executive Officer of Barbara Franklin
    Enterprises, Washington, D.C., an international consulting
    and investment firm, and has served in that capacity since
    January, 1995. Prior thereto, she was an independent director,
    consultant and lecturer (1993-1995), and in 1992 she served as
    the 29th U.S. Secretary of Commerce. Director of Aetna,
    Inc., The DOW Chemical Company, MedImmune, Inc., and GenVec, Inc.                                                                                                                                                                   
|Steven N. Isaacs (41)         |  |                                                                | Finance |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                       | Director since April 5, 2004. Term expires 2007.
    Mr. Isaacs is the Chairman and Managing Director of
    Glencore Finance AG, an investment subsidiary of Glencore
    International AG, and a director of Mopani Copper Mines Limited
    (Zambia). Mr. Isaacs was selected for appointment as a
    director and selected for nomination for re-election by Glencore
    Finance AG and Mizuho International plc and is a Series B
    Director.                                                                                     
|Mark L. Segal (40)            |  |                                                                | Audit   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                       | Director since August 1, 2004. Term expires
    2006.1Mr. Segal is Chief Financial Officer of Spin Master
    Ltd., Toronto, Canada, a designer, developer, manufacturer and
    marketer of consumer products for children, and has served in
    that capacity since September, 2001. He was Vice President,
    Corporate Treasurer of Norigen Communications Inc., from
    February, 2000, to August, 2001, and Director, Treasury and
    Finance of Husky Injection Molding Systems Ltd. from February,
    1997, to February, 2000.
|Joseph A. Steger (68)         |  | Nominating and Corporate Governance Personnel and Compensation |         | Director since 1985. Term expires 2007. Dr. Steger had
    served for more than five years, until his retirement in 2003,
    as President of the University of Cincinnati, and now serves as
    President Emeritus.                                                                                                                                                                                                                                                                                                                                                                                                                                                                         

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|                         |  |                                                                |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|------------------------ |  | -------------------------------------------------------------- | ------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Name and Age             |  | Committee Membership                                           |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | Positions Held During Last Five Years
|                         |  |                                                                |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                      
|Duane K. Stullich (36)   |  | Nominating and Corporate Governance                            |         | Director since August 1, 2004. Term expires 2005.
    Mr. Stullich is Co-Founder and Managing Member of
    FocalPoint Partners, LLC, Los Angeles, California, an
    independent investment bank specializing in mergers and
    acquisitions, raising capital, and financial restructurings, and
    has served in that capacity since December, 2002. He was
    Principal of Murphy Noell Capital, LLC from March, 1999 to
    December, 2001, and consultant with Murphy Noell Capital, LLC
    from December, 2001 to July, 2002.                                                                                                        
|Charles F.C. Turner (44) |  |                                                                | Finance |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                       | Director since 2002. Term expires 2005. Mr. Turner has been
    President, Conklin Group, LLC, a real estate holding and
    management company, since 2002. Prior to his election to the
    Board in 2002, he had served in various capacities at the
    Company, his last position being Group Director of Information
    Technology for the Companys Plastics Technologies Group.
    Mr. Turner is a great-grandson of the late Fred A. Geier,
    one of the founders of the Company, and a nephew of the late
    James A.D. Geier, a former director and chief executive officer
    of the Company.
|Larry D. Yost (67)       |  | Nominating and Corporate Governance Personnel and Compensation |         | Director since August 1, 2004. Term expires 2005.
    Mr. Yost is the retired Chairman and Chief Executive
    Officer of Arvin Meritor, Inc., Troy, Michigan, a global
    supplier of components and systems for commercial, specialty and
    light vehicle original equipment manufacturers and related
    aftermarkets. He served in that capacity from October 1997 to
    August, 2004. He was President of Rockwell Automotive from
    March, 1997 to October, 1997, and President of the Heavy Vehicle
    Systems group of Rockwell Automotive from November, 1994 to
    March, 1997. Director of Kennametal, Inc. and UNOVA, Inc.






|    |                                                                                                              
|--- | -------------------------------------------------------------------------------------------------------------
|(1) | Pursuant to the Companys By-Laws, must stand for
    re-election at the 2005 annual meeting of shareholders.

Audit Committee Financial Literacy and Financial Experts




Compliance with Section 16(a) of the Exchange Act




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Code of Ethics






| |                              
| | -----------------------------
| | Milacron Inc.                
| | Attention: Investor Relations
| | 2090 Florence Avenue         
| | Cincinnati, OH 45206-2425    

Other Corporate Governance Matters






| |                              
| | -----------------------------
| | Milacron Inc.                
| | Attention: Investor Relations
| | 2090 Florence Avenue         
| | Cincinnati, OH 45206-2425    





| |                                             
| | --------------------------------------------
| | Audit Committee Charter                     
| | Personnel and Compensation Committee Charter
| | Nominating and Corporate Governance Charter 
| | and the related appendix regarding Criteria 
| | for Selecting Board of Directors Candidates 
| | Finance Committee Charter                   



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|         |                       
|-------- | ----------------------
|Item 11. | Executive Compensation

SUMMARY COMPENSATION TABLE


|                   |                                          |      |      |                        |     |        |         |         |              |                        |          |            |            |              |        |        |             |  |           |         |  |           |              |         |  |  |   |   |  |  |         |   | 
|------------------ | ---------------------------------------- | ---- | ---- | ---------------------- | --- | ------ | ------- | ------- | ------------ | ---------------------- | -------- | ---------- | ---------- | ------------ | ------ | ------ | ----------- |  | --------- | ------- |  | --------- | ------------ | ------- |  |  | - | - |  |  | ------- | - | 
|                   |                                          |      |      |                        |     |        |         |         |              | Long-Term Compensation |          |            |           
|                   |                                          |      |      |                        |     |        |         |         |              |                        |          |            |           
|                   |                                          |      |      |                        |     | Awards |         |         |              |                        |         
|                   |                                          |      |      | Annual Compensation(1) |     |        |         |         |              | Payouts                |          |            |           
|                   |                                          |      |      |                        |     |        |         |         | Shares       |                        |          |            |            |              |       
|                   |                                          |      |      |                        |     | Other  |         |         | Performance/ |                        |          | Underlying |            |              | LTIP   |        |             | 
|Name               |                                          |      |      | Salary                 |     |        | Bonus   |         |              | Annual                 |          |            | Restricted |              |        | Stock  |             |  | Payouts   |         |  | All Other |             
|Principal Position |                                          | Year |      |                        | ($) |        |         | ($)     |              |                        | Comp.($) |            |            | Stock ($)(2) |        |        | Options (#) |  |           | ($)     |  |           | Comp. ($)(3) |        
|                   |                                          |      |      |                        |     |        |         |         |              |                        |          |            |            |              |        |        |             |  |           |         |  |           |              |        
|R.D. Brown         |                                          |      | 2004 |                        |     |        | 627,500 |         |              |                        | 275,000  |            |            |              | 32,253 |        |             |  | 1,326,000 |         |  |           | 0            |         |  |  | 0 |   |  |  | 197,100 |  
|                   | Chairman, President and                  |      |      | 2003                   |     |        |         | 600,000 |              |                        |          | 0          |            |              |        | 2,238  |             |  |           | 465,040 |  |           |              | 0       |  |  |   | 0 |  |  |         | 0 | 
|                   | Chief Executive Officer                  |      |      | 2002                   |     |        |         | 562,585 |              |                        |          | 196,230    |            |              |        | 10,984 |             |  |           | 621,450 |  |           |              | 100,000 |  |  |   | 0 |  |  |         | 0 | 
|R.P. Lienesch      |                                          |      | 2004 |                        |     |        | 289,800 |         |              |                        | 85,520   |            |            |              | 74,078 | (6)    |             |  | 265,200   |         |  |           | 0            |         |  |  | 0 |   |  |  | 39,420  |  
|                   | Sr. V.P. of Finance,                     |      |      | 2003                   |     |        |         | 270,000 |              |                        |          | 0          |            |              |        | 52,194 |             |  |           | 139,088 |  |           |              | 0       |  |  |   | 0 |  |  |         | 0 | 
|                   | Controller and                           |      |      | 2002                   |     |        |         | 253,800 |              |                        |          | 60,861     |            |              |        | 11,777 |             |  |           | 248,580 |  |           |              | 58,000  |  |  |   | 0 |  |  |         | 0 | 
|                   | Chief Financial Officer                  |      |      |                        |     |        |         |         |              |                        |          |            |            |              |        |        |             |  |           |         |  |           |              |         |  |  |   |   |  |  |         |   | 
|H.C. ODonnell     |                                          |      | 2004 |                        |     |        | 246,867 |         |              |                        | 89,103   | (5)        |            |              | 17,490 |        |             |  | 265,200   |         |  |           | 0            |         |  |  | 0 |   |  |  | 29,200  |  
|                   | Sr. V.P., General Counsel                |      |      | 2003                   |     |        |         | 230,004 |              |                        |          | 11,500     | (5)        |              |        | 6,335  |             |  |           | 137,240 |  |           |              | 0       |  |  |   | 0 |  |  |         | 0 | 
|                   | and Secretary                            |      |      | 2002                   |     |        |         | 216,207 |              |                        |          | 51,846     |            |              |        | 3,267  |             |  |           | 165,720 |  |           |              | 44,000  |  |  |   | 0 |  |  |         | 0 | 
|K. Bourdon         |                                          |      | 2004 |                        |     |        | 319,610 |         |              |                        | 84,368   |            |            |              | 0      |        |             |  | 272,813   |         |  |           | 0            |         |  |  | 0 |   |  |  | 0       |  
|                   | Vice President and                       |      |      |                        |     |        |         |         |              |                        |          |            |            |              |        |        |             |  |           |         |  |           |              |         |  |  |   |   |  |  |         |   | 
|                   | President  Global Plastics Machinery(4) |      |      |                        |     |        |         |         |              |                        |          |            |            |              |        |        |             |  |           |         |  |           |              |         |  |  |   |   |  |  |         |   | 
|R.C. McKee         |                                          |      | 2004 |                        |     |        | 197,700 |         |              |                        | 63,512   |            |            |              | 9      |        |             |  | 176,800   |         |  |           | 0            |         |  |  | 0 |   |  |  | 26,280  |  
|                   | Vice President and                       |      |      |                        |     |        |         |         |              |                        |          |            |            |              |        |        |             |  |           |         |  |           |              |         |  |  |   |   |  |  |         |   | 
|                   | President  Global Industrial Fluids(4)  |      |      |                        |     |        |         |         |              |                        |          |            |            |              |        |        |             |  |           |         |  |           |              |         |  |  |   |   |  |  |         |   | 






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Includes amounts earned in fiscal year.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|   
|(2) | Performance Share Awards: On February 12, 2002,
    February 11, 2003, and June 11, 2004, the Personnel
    and Compensation Committee of the Board of Directors awarded
    performance share grants in the form of restricted stock under
    the 1997 Long-Term Incentive Plan (for the 2002 and 2003 grants)
    and under the 2004 Long-Term Incentive Plan (for the 2004
    grants). Mr. Brown was awarded 15,000 shares in 2002,
    12,000 shares in 2003 and 300,000 shares in 2004;
    Mr. Lienesch was awarded 3,000 shares in 2002,
    2,400 shares in 2003 and 60,000 shares in 2004;
    Mr. ODonnell was awarded 2,000 shares in each of
    2002 and 2003 and 60,000 shares in 2004; and Mr. McKee
    was awarded 40,000 shares in 2004. Under the terms of these
    restricted stock grants, the restricted stock vests only upon
    the achievement of certain performance targets during a
    three-year performance period; however, as described in
    footnote 3 below, the 2002 and 2003 grants were forfeited
    in exchange for a payment by the company as a result of changes
    in control of the company. Mr. Bourdon was granted a
    phantom-performance award in an amount equivalent to
    60,000 shares in 2004. The phantom-performance stock award
    will vest only if certain performance targets are met during the
    three-year performance period and can be settled either in cash
    or in stock, at the discretion of the company.





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|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(3) | These amounts reflect payments made in connection with the
    forfeiture of outstanding performance shares (in the form of
    restricted stock) as a result of a change in control of the
    company in 2004. The companys recapitalization in 2004
    constituted a change in control with respect to certain
    compensation plans, including the companys 1994 Long-Term
    Incentive Plan and the 1997 Long-Term Incentive Plan. As a
    result, all outstanding performance shares (in the form of
    restricted stock) awarded prior to January 1, 2004 were
    forfeited and employees, including the named executive officers,
    received a payment in an amount equal to twice the closing price
    of the common stock on the effective date of the change in
    control. In addition, as a result of the 2004 change in control,
    all other restricted shares granted to employees, including the
    named executive officers, prior to January 1, 2004 became
    fully vested.
|   
|(4) | Messrs. Bourdon and McKee became executive officers of the
    company on August 2, 2004.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|   
|(5) | The Board of Directors approved bonuses to certain employees in
    2003 and 2004, at the discretion of the CEO, in recognition of
    extraordinary job demands required during the companys
    refinancing process. Mr. ODonnell was paid a
    discretionary bonus in the amount of $11,500 in 2003 and $16,253
    in 2004.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|   
|(6) | Includes $20,449 for Supplemental Life Insurance benefits in
    2004 and $20,834 in 2003 and $11,393 in 2004 relative to Medical
    Expense Reimbursement received by Mr. Lienesch, which were
    the only two perquisites or other personal benefits received by
    him that exceeded 25% of the total of all perquisites and other
    personal benefits received by him.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               

Option Grants in Last Fiscal Year




Aggregated Option Exercises in Last


Year and Fiscal Year-End Option Values


|               |  |                 |   |  |              |                        |                        |             |                           |                             |               |  |  |                 |   |  |                   |   |   |  |  |   |   | 
|-------------- |  | --------------- | - |  | ------------ | ---------------------- | ---------------------- | ----------- | ------------------------- | --------------------------- | ------------- |  |  | --------------- | - |  | ----------------- | - | - |  |  | - | - | 
|               |  |                 |   |  |              | Number of              |                        |             |                          
|               |  |                 |   |  |              | Securities Underlying  |                        |             | Value (1) of Unexercised, |                            
|               |  |                 |   |  |              | Unexercised Options at |                        |             | In-the Money Options      |                            
|               |  | Number of       |   |  |              |                        | Fiscal Year-End (#)(2) |             |                           | Held at Fiscal Year-End ($) |              
|               |  | Shares Acquired |   |  | Value        |                        |                        |             |                           |                             |               | 
|Name           |  | on Exercise (#) |   |  | Realized ($) |                        |                        | Exercisable |                           |                             | Unexercisable |  |  | Exercisable ($) |   |  | Unexercisable ($) |  
|               |  |                 |   |  |              |                        |                        |             |                           |                             |               |  |  |                 |   |  |                   |  
|R.D. Brown     |  |                 | 0 |  |              | $                      | 0                      |             |                           |                             | 260,000       |  |  |                 | 0 |  |                   | $ | 0 |  |  | $ | 0 | 
|K. Bourdon     |  |                 | 0 |  |              | $                      | 0                      |             |                           |                             | 47,300        |  |  |                 | 0 |  |                   | $ | 0 |  |  | $ | 0 | 
|R.P. Lienesch  |  |                 | 0 |  |              | $                      | 0                      |             |                           |                             | 113,000       |  |  |                 | 0 |  |                   | $ | 0 |  |  | $ | 0 | 
|H.C. ODonnell |  |                 | 0 |  |              | $                      | 0                      |             |                           |                             | 85,000        |  |  |                 | 0 |  |                   | $ | 0 |  |  | $ | 0 | 
|R.C. McKee     |  |                 | 0 |  |              | $                      | 0                      |             |                           |                             | 78,050        |  |  |                 | 0 |  |                   | $ | 0 |  |  | $ | 0 | 

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|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Based on a fair market value (average of high and low market
    prices) of Company common stock on December 31, 2004, of
    $3.49.                                                                                                                                                                                                                                                                                                                                                         
|   
|(2) | The companys recapitalization in 2004 constituted a change
    in control with respect to certain compensation plans, including
    the companys 1994 Long-Term Incentive Plan and the 1997
    Long-Term Incentive Plan. As a result, all unvested outstanding
    non-qualified and incentive stock options granted to employees,
    including the named executive officers, prior to April 23,
    2003 (none of which were in-the-money on December 31, 2004)
    became fully vested.

Retirement Benefits








|                    |  |                                                                       |         |       |    |   |         |    |  |   |         |  |  |    |         |  |      |   |         |  |  |   |         | 
|------------------- |  | --------------------------------------------------------------------- | ------- | ----- | -- | - | ------- | -- |  | - | ------- |  |  | -- | ------- |  | ---- | - | ------- |  |  | - | ------- | 
|                    |  | Estimated Annual Pension for Representative Years of Credited Service |        
|Highest Consecutive |  |                                                                       |        
|Five-Year Average   |  |                                                                       |         | 35 or |   
|Compensation        |  | 10                                                                    |         |       | 15 |   |         | 20 |  |   | 25      |  |  | 30 |         |  | more |  
|                    |  |                                                                       |         |       |    |   |         |    |  |   |         |  |  |    |         |  |      |  
|$100,000            |  | $                                                                     | 15,000  |       |    | $ | 22,500  |    |  | $ | 30,000  |  |  | $  | 37,500  |  |      | $ | 45,000  |  |  | $ | 52,500  | 
|$250,000            |  | $                                                                     | 37,500  |       |    | $ | 56,250  |    |  | $ | 75,000  |  |  | $  | 93,750  |  |      | $ | 112,500 |  |  | $ | 131,250 | 
|$500,000            |  | $                                                                     | 75,000  |       |    | $ | 112,500 |    |  | $ | 150,000 |  |  | $  | 187,500 |  |      | $ | 225,000 |  |  | $ | 262,500 | 
|$750,000            |  | $                                                                     | 112,500 |       |    | $ | 168,750 |    |  | $ | 225,000 |  |  | $  | 281,250 |  |      | $ | 337,500 |  |  | $ | 393,750 | 
|$1,000,000          |  | $                                                                     | 150,000 |       |    | $ | 225,000 |    |  | $ | 300,000 |  |  | $  | 375,000 |  |      | $ | 450,000 |  |  | $ | 525,000 | 
|$1,250,000          |  | $                                                                     | 187,500 |       |    | $ | 281,250 |    |  | $ | 375,000 |  |  | $  | 468,750 |  |      | $ | 562,500 |  |  | $ | 656,250 | 





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|                    |  |                                                                      |        |            |   |   |        |   |  |   |        |  |  |   |        |  |        |   |         |  |  |   |         | 
|------------------- |  | -------------------------------------------------------------------- | ------ | ---------- | - | - | ------ | - |  | - | ------ |  |  | - | ------ |  | ------ | - | ------- |  |  | - | ------- | 
|                    |  | Estimated Annual Pension for Representative Years of Officer Service |       
|Highest Consecutive |  |                                                                      |       
|Three-Year Average  |  |                                                                      |        | 10 or more |  
|Compensation        |  | 1                                                                    |        |            | 2 |   |        | 4 |  |   | 6      |  |  | 8 |        |  | years* |  
|                    |  |                                                                      |        |            |   |   |        |   |  |   |        |  |  |   |        |  |        |  
|$100,000            |  | $                                                                    | 1,000  |            |   | $ | 2,000  |   |  | $ | 4,000  |  |  | $ | 6,000  |  |        | $ | 8,000   |  |  | $ | 10,000  | 
|$250,000            |  | $                                                                    | 2,500  |            |   | $ | 5,000  |   |  | $ | 10,000 |  |  | $ | 15,000 |  |        | $ | 20,000  |  |  | $ | 25,000  | 
|$500,000            |  | $                                                                    | 5,000  |            |   | $ | 10,000 |   |  | $ | 20,000 |  |  | $ | 30,000 |  |        | $ | 40,000  |  |  | $ | 50,000  | 
|$750,000            |  | $                                                                    | 7,500  |            |   | $ | 15,000 |   |  | $ | 30,000 |  |  | $ | 45,000 |  |        | $ | 60,000  |  |  | $ | 75,000  | 
|$1,000,000          |  | $                                                                    | 10,000 |            |   | $ | 20,000 |   |  | $ | 40,000 |  |  | $ | 60,000 |  |        | $ | 80,000  |  |  | $ | 100,000 | 
|$1,250,000          |  | $                                                                    | 12,500 |            |   | $ | 25,000 |   |  | $ | 50,000 |  |  | $ | 75,000 |  |        | $ | 100,000 |  |  | $ | 125,000 | 






|  |                                                                                                                                                                                                                                                                                                                                                                             
|- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|* | Executive officers with 10 or more years of officer service
    receive the higher of 10% of their average compensation or 52.5%
    of their average compensation reduced by benefits received from
    all other Company provided pension plans, including the
    Retirement Plan, the Milacron Supplemental Retirement Plan and
    the Milacron Europe Retirement Plan.

Compensation and Benefits for Non-Employee Directors






| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Cash Component. Each non-employee director is
    entitled to receive an annual cash retainer of $25,000 and a fee
    of $1,500 for each Board and committee meeting attended, either
    personally or via telephone conference call. Chairpersons of the
    Finance Committee, Nominating and Corporate Governance
    Committee, and Personnel and Compensation Committee are entitled
    to receive an additional retainer of $4,000, and the chairperson
    of the Audit Committee is entitled to receive an additional
    retainer of $7,000. Prior to January 1, 2005, non-employee
    directors were entitled to defer all or a portion of their fees
    under the Companys Plan for the Deferral of
    Directors Compensation. In November 2004, the Board froze
    this plan, effective for years beginning after December 31,
    2004, in response to changes in the tax rules governing deferred
    compensation plans imposed by the American Jobs Creation Act of
    2004.                                     
|
| | Equity Component. Each non-employee director is
    entitled to receive annual equity compensation with an aggregate
    value of $40,000, consisting of the following: (i) a credit
    of phantom stock units with a value of $10,000 to his or her
    account under a successor plan to the Plan for the Deferral of
    Directors Compensation that will be adopted by the Board
    and comply with the tax rules imposed by the American Jobs
    Creation Act of 2004, and (ii) an award of deferred shares
    under the 2004 Long-Term Incentive Plan with a value of $30,000.
    In addition, each non-employee director first elected to the
    Board is entitled to receive a restricted stock award (or an
    equivalent award) covering 2,000 shares. In this regard,
    the Boards newest member, Sallie Bailey, is entitled to
    receive a credit under the successor plan to the Plan for the
    Deferral of Directors Compensation of 2,000 phantom stock
    units, subject to a three-year vesting schedule.
|
| | Other Compensation. Each non-employee director may
    elect to be covered by $100,000 of company-paid group term life
    insurance.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      

Executive Agreements




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2 3










117



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Compensation Committee Interlocks and Insider
Participation









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

Securities Authorized for Issuance Under Equity Compensation
Plans




| |                                     
| | ------------------------------------
| | Equity Compensation Plan Information

|                                                           |  |                            |           |  |                               |                         |                              |                                 |  |  |           | 
|---------------------------------------------------------- |  | -------------------------- | --------- |  | ----------------------------- | ----------------------- | ---------------------------- | ------------------------------- |  |  | --------- | 
|                                                           |  |                            |           |  |                               | Number of Securities    |                             
|                                                           |  |                            |           |  |                               | Remaining Available for |                             
|                                                           |  | Number of Securities to be |           |  |                               |                         | Future Issuance Under Equity |                                
|                                                           |  | Issued Upon Exercise of    |           |  | Weighted-Average Exercise     |                         |                              | Compensation Plans [c]          | 
|                                                           |  | Outstanding Options,       |           |  | Price of Outstanding Options, |                         |                              | (Excluding Securities Reflected | 
|Plan Category                                              |  | Warrants and Rights [a]    |           |  | Warrants and Rights [b]       |                         |                              | in Column [a])                  | 
|                                                           |  |                            |           |  |                               |                         |                              |                                 | 
|Equity compensation plans not approved by security holders |  |                            |          |  |                               |                         |                             |                                 |  |  |          | 
|Equity compensation plans approved by security holders     |  |                            | 3,524,900 |  |                               | $                       | 19.37                        |                                 |  |  | 7,127,180 | 
|                                                           |  |                            |           |  |                               |                         |                              |                                 | 
|Total                                                      |  |                            | 3,524,900 |  |                               | $                       | 19.37                        |                                 |  |  | 7,127,180 | 
|                                                           |  |                            |           |  |                               |                         |                              |                                 | 

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Principal Holders of Voting Securities




Common Stock


|                                          |                                                             |        |           |            |                   |            |              |                |  |  |     |     | 
|----------------------------------------- | ----------------------------------------------------------- | ------ | --------- | ---------- | ----------------- | ---------- | ------------ | -------------- |  |  | --- | --- | 
|                                          |                                                             |        |           |            |                   | Percent of |             
|                                          |                                                             |        |           | Percent of |                   |            | Voting Power |               
|Beneficial Owner                          |                                                             | Shares |           |            | Class Outstanding |            |              | Outstanding(1) | 
|                                          |                                                             |        |           |            |                   |            |              |                | 
|Putnam, LLC d/b/a Putnam Investments(2)   |                                                             |        | 3,921,294 |            |                   |            | 7.9          |                |  |  | 3.9 |    
|                                          | One Post Office Square
    Boston, MA 02109                 |        |           |            |                   |            |              |                |  |  |     |     | 
|Pzena Investment Management, LLC(3)       |                                                             |        | 3,636,500 |            |                   |            | 7.3          |                |  |  | 3.6 |    
|                                          | 120 West 45th Street, 34th Floor
    New York, NY 10036     |        |           |            |                   |            |              |                |  |  |     |     | 
|Dimensional Fund Advisors Inc.(4)         |                                                             |        | 3,531,401 |            |                   |            | 7.1          |                |  |  | 3.5 |    
|                                          | 1299 Ocean Avenue, 11th Floor
    Santa Monica, CA 90401    |        |           |            |                   |            |              |                |  |  |     |     | 
|David G. Greene & Company, LLC(5)         |                                                             |        | 3,346,029 |            |                   |            | 6.7          |                |  |  | 3.3 |    
|                                          | 599 Lexington Avenue
    New York, NY 10022                 |        |           |            |                   |            |              |                |  |  |     |     | 
|Mellon Trust of New England               |                                                             |        | 3,323,459 |            |                   |            | 6.7          |                |  |  | 3.5 | (9)
|                                          | 525 William Penn Place, Suite 3418
    Pittsburgh, PA 15259 |        |           |            |                   |            |              |                |  |  |     |     | 
|Trustee  Milacron Employee Benefit Plans |                                                             |        |           |            |                   |            |              |                |  |  |     |    

Series B Preferred Stock


|                              |                                                                                                            |        |         |            |                   |            |              |                |  |  |      |  | 
|----------------------------- | ---------------------------------------------------------------------------------------------------------- | ------ | ------- | ---------- | ----------------- | ---------- | ------------ | -------------- |  |  | ---- |  | 
|                              |                                                                                                            |        |         |            |                   | Percent of |             
|                              |                                                                                                            |        |         | Percent of |                   |            | Voting Power |               
|Beneficial Owner              |                                                                                                            | Shares |         |            | Class Outstanding |            |              | Outstanding(1) | 
|                              |                                                                                                            |        |         |            |                   |            |              |                | 
|Glencore Finance AG(6)        |                                                                                                            |        | 350,000 |            |                   |            | 70.0         |                |  |  | 34.6 | 
|                              | Baarermattstrasse 3
    CH-6341 Baar
    Switzerland                                                       |        |         |            |                   |            |              |                |  |  |      |  | 
|Mizuho International plc(7)   |                                                                                                            |        | 150,000 |            |                   |            | 30.0         |                |  |  | 14.8 | 
|                              | Bracken House
    One Friday Street
    London EC4M 9JA
    United Kingdom                                 |        |         |            |                   |            |              |                |  |  |      |  | 
|Triage Offshore Fund, Ltd.(8) |                                                                                                            |        | 62,500  |            |                   |            | 12.5         |                |  |  | 6.2  | 
|                              | c/o International Fund Administration, Ltd.
    48 Par-la-Ville Road, Suite 464
    Hamilton, HM11 Bermuda |        |         |            |                   |            |              |                |  |  |      |  | 

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4% Cumulative Preferred Stock


|                                          |                                                                                                          |        |        |            |                   |            |              |                |  |  |     |     | 
|----------------------------------------- | -------------------------------------------------------------------------------------------------------- | ------ | ------ | ---------- | ----------------- | ---------- | ------------ | -------------- |  |  | --- | --- | 
|                                          |                                                                                                          |        |        |            |                   | Percent of |             
|                                          |                                                                                                          |        |        | Percent of |                   |            | Voting Power |               
|Beneficial Owner                          |                                                                                                          | Shares |        |            | Class Outstanding |            |              | Outstanding(1) | 
|                                          |                                                                                                          |        |        |            |                   |            |              |                | 
|Mellon Trust of New England               |                                                                                                          |        | 11,126 |            |                   |            | 18.5         |                |  |  | 3.5 | (9)
|                                          | 525 William Penn Place, Suite 3418
    Pittsburgh, PA 15259                                              |        |        |            |                   |            |              |                |  |  |     |     | 
|Trustee  Milacron Employee Benefit Plans |                                                                                                          |        | 7,285  |            |                   |            | 12.1         |                |  |  | 0.2 |    
|                                          | Bear Stearns Securities Corp                                                                             |        |        |            |                   |            |              |                |  |  |     |     | 
|                                          | One Metrotech Center North, 4th Floor
    Brooklyn, NY 11201                                             |        |        |            |                   |            |              |                |  |  |     |     | 
|Empire & Co.                              |                                                                                                          |        | 7,154  |            |                   |            | 11.9         |                |  |  | 0.2 |    
|                                          | Box 328A
    Exchange Place Station
    69 Montgomery Street
    Jersey City, NJ 07303-0328              |        |        |            |                   |            |              |                |  |  |     |     | 
|JPMorgan Chase Bank                       |                                                                                                          |        | 7,004  |            |                   |            | 11.7         |                |  |  | 0.2 |    
|                                          | c/o JP Morgan Investor Services
    14201 Dallas Parkway, 12th Floor
    Dallas, TX 75254                |        |        |            |                   |            |              |                |  |  |     |     | 
|RBC Dan Rauscher Inc.                     |                                                                                                          |        | 5,385  |            |                   |            | 8.9          |                |  |  | 0.1 |    
|                                          | 510 Marquette Avenue South
    Minneapolis, MN 55402                                                     |        |        |            |                   |            |              |                |  |  |     |     | 
|Milacron Geier Foundation                 |                                                                                                          |        | 3,913  |            |                   |            | 6.5          |                |  |  | 0.1 |    
|                                          | 2090 Florence Avenue, Cincinnati, OH 45206
    (R. D. Brown, J. A. Steger, and C. F.C. Turner, Trustees) |        |        |            |                   |            |              |                |  |  |     |     | 






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | The following chart sets forth the percentage of voting power of
    (a) the holders of the companys common stock,
    (b) the holders of the companys Series B
    Preferred Stock and (c) the holders of the companys
    4% Cumulative Preferred Stock, giving effect solely to the reset
    of the conversion price of the Series B Preferred Stock,
    the exercise of the contingent warrants and payment of
    pay-in-kind dividends on the Series B Preferred Stock
    through to its mandatory conversion date (and without giving
    effect to any other transactions that the company may enter into
    during the applicable periods that would result in additional
    dilution).

|                                           |  |          |       |                     |                    |  |       |                    |                   |  |                    |  |  |  |       | 
|------------------------------------------ |  | -------- | ----- | ------------------- | ------------------ |  | ----- | ------------------ | ----------------- |  | ------------------ |  |  |  | ----- | 
|                                           |  |          |       |                     |                    |  |       | On Series B        |                  
|                                           |  |          |       |                     |                    |  |       | Preferred Stock    |                  
|                                           |  |          |       |                     |                    |  |       | Mandatory          |                  
|                                           |  |          |       |                     |                    |  |       | Conversion Date    |                  
|                                           |  |          |       |                     |                    |  |       | (June 10, 2011)    |                  
|                                           |  |          |       | Following Reset of  |                    |  |       |                    | Assuming Pay-in-  | 
|                                           |  |          |       | Conversion Price of |                    |  |       |                    | kind Dividends on | 
|                                           |  | As of    |       |                     | Series B Preferred |  |       | Following Exercise |                   |  | Series B Preferred | 
|                                           |  | March 8, |       |                     | Stock to           |  |       | of Contingent      |                   |  | Stock Until Such   | 
|                                           |  | 2005     |       |                     | $1.75(c)(d)        |  |       | Warrants(c)(e)     |                   |  | Date(f)            | 
|                                           |  |          |       |                     |                    |  |       |                    |                   |  |                    | 
|Holders of Common Stock(a)                 |  |          | 49.1% |                     |                    |  | 45.9% |                    |                   |  | 45.5%              |  |  |  | 34.1% | 
|Holders of Series B Preferred Stock        |  |          | 49.5% |                     |                    |  | 52.8% |                    |                   |  | 53.2%              |  |  |  | 64.9% | 
|Holder of 4% Cumulative Preferred Stock(b) |  |          | 1.4%  |                     |                    |  | 1.3%  |                    |                   |  | 1.3%               |  |  |  | 1.0%  | 






| |     |                                                                                                                                                                                                                                                      
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (a) | Each holder of common stock is entitled to one vote for each
    share of common stock held. In this chart the voting power of
    common stock issued upon exercise of contingent warrants is
    attributed to holders of Series B Preferred Stock.

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| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (b) | Each holder of 4% Cumulative Preferred Stock is entitled to 24
    votes for each such share of 4% Preferred Stock held.                                                                                                                                                                                                                                                                                                                                                                 
|
| | (c) | Assumes no pay-in-kind dividends on the Series B Preferred
    Stock have been paid.                                                                                                                                                                                                                                                                                                                                                                                                     
|
| | (d) | The initial conversion price of $2.00 per share will be
    reset to $1.75 per share effective June 30, 2005
    because a test based on the companys financial performance
    for 2004 was not satisfied.                                                                                                                                                                                                                                                                             
|
| | (e) | Assumes that all contingent warrants and common stock issued
    upon exercise thereof continue to be held by holders of
    Series B Preferred Stock. The voting power of common stock
    issued upon exercise of the contingent warrants is attributed to
    holders of Series B Preferred Stock. The contingent
    warrants will be exercisable only if a test contained in the
    contingent warrants based on the companys financial
    performance for 2005 is not satisfied.
|
| | (f) | Assumes reset of the conversion price of the Series B
    Preferred Stock to $1.75, exercise of the contingent warrants
    and that all contingent warrants and common stock issued upon
    exercise thereof continue to be held by holders of Series B
    Preferred Stock.                                                                                                                                                                                                           



|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(2) | As reported in an Amendment to Schedule 13G dated
    February 4, 2005 filed with the SEC by Putnam, LLC
    (Putnam), a subsidiary of Marsh & McLennan
    Companies, Inc. (MMc), on behalf of MMc, on its own
    behalf and on behalf of its two registered investment advisory
    subsidiaries, Putnam Investment Management, LLC (advisor to the
    Putnam family of mutual funds) and The Putnam Advisory Company,
    LLC (advisor to Putnams institutional clients), with
    respect to 2,430,264 shares of Common Stock as to which
    Putnam and Putnam Investment Management, LLC reported shared
    dispositive power and with respect to 1,491,030 shares of
    Common Stock as to which Putnam and The Putnam Advisory Company,
    LLC reported shared dispositive power. Putnam and The Putnam
    Advisory Company, LLC also reported shared voting power with
    respect to 1,099,510 of the shares of Common Stock as to which
    they reported shared dispositive power.                                                                                                                                                                                                                                                                                                              
|   
|(3) | As reported in Schedule 13G dated February 11, 2005
    filed with the SEC by Pzena Investment Management, LLC
    (Pzena), a registered investment advisor, with
    respect to shares of Common Stock of which clients of Pzena have
    the right to receive and the ultimate power to direct the
    receipt of dividends, or the proceeds of sale. Pzena also
    reported sole voting power with respect to 3,210,300 of the
    shares of Common Stock as to which it reported sole dispositive
    power.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|   
|(4) | As reported in an Amendment to Schedule 13G dated
    February 9, 2005 filed with the SEC by Dimensional
    Fund Advisors Inc., an investment advisor in accordance
    with Rule 13d-1(b)(1)(ii)(E) of the Securities Exchange Act
    of 1934, with respect to shares of Common Stock held by funds as
    to which it serves as investment advisor or manager.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|   
|(5) | As reported in Schedule 13G dated February 2, 2005
    filed with the SEC by David G. Greene and Company, LLC
    (David G. Greene), a registered broker or dealer and
    an investment advisor in accordance with
    Rule 13d-1(b)(1)(ii)(E) under the Securities Exchange Act
    of 1934, with respect to shares of which clients of David G.
    Greene have the right to receive dividends and proceeds of sale.
    David G. Greene also reported shared voting power with respect
    to 3,346,029 of the shares of Common Stock as to which it
    reported shared dispositive power.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|   
|(6) | As reported in an Amendment to Schedule 13D dated
    June 21, 2004 filed with the SEC by Glencore Finance AG on
    behalf of (i) Glencore Finance AG, Glencore International
    AG, and Glencore Holding AG, and (ii) Mizuho International
    and Mizuho Securities Co., Ltd. (Glencore has disclaimed
    beneficial ownership of the shares of Series B Preferred
    Stock held by Mizuho). In the Amendment to Schedule 13D,
    Glencore Finance AG also reported the sale on March 16,
    2004 of an undivided 17.8571428% participation interest in its
    holdings of our then outstanding Series A Notes and
    Series B Notes to Triage Offshore Fund, Ltd. Glencore
    states in the amended Schedule 13D that, as of the date
    thereof, Triage Offshore, Ltd.s participation interest is
    equivalent to 62,500 shares of Series B Preferred
    Stock. This interest is reflected in the holdings of both
    Glencore and Triage in the table above. Steven N. Isaacs, the
    Chairman and Managing Director of Glencore Finance AG, has the
    right to direct dispositions and voting with respect to the
    350,000 shares of Series B Preferred Stock
    beneficially owned by Glencore Finance AG. See footnote 4
    to the Share Ownership of Directors, Nominees and Executive

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|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    | Officers table for information regarding
    Mr. Isaacss beneficial ownership of shares of
    Series B Preferred Stock.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   
|(7) | As reported in an Amendment to Schedule 13D dated
    June 21, 2004 filed with the SEC by Glencore Finance AG on
    behalf of Glencore and Mizuho (Mizuho has disclaimed beneficial
    ownership of the shares of Series B Preferred Stock held by
    Glencore).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|   
|(8) | As reported in Schedule 13D dated June 21, 2004 filed
    with the SEC by Triage Advisors, L.L.C., TRIAGE Management LLC,
    Triage Capital Management, L.P., Triage Capital Management B,
    L.P., Triage Offshore Fund, Ltd., and Leonid Frenkel
    (collectively, Triage), with respect to Triage
    Offshore Fund, Ltd.s purchase of an undivided 17.8571428%
    participation interest from Glencore Finance AG in its holdings
    of our then outstanding Series A Notes and Series B
    Notes. Triage states in the Schedule 13D that as of the
    date thereof, its participation interest is equivalent to
    62,500 shares of Series B Preferred Stock. This
    interest is reflected in the holdings of both Glencore Finance
    AG and Triage in the table above (Triage has disclaimed any
    group for purposes of Section 13(d) among itself, Glencore
    and Mizuho that may be found as a result of the participation
    agreement entered into March 16, 2004 between Triage
    Offshore Fund, Ltd. and Glencore Finance AG).
|   
|(9) | Includes both the 3,323,459 shares of Common Stock and the
    11,126 shares of 4% Cumulative Preferred Stock beneficially
    owned by Mellon Trust of New England.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             

Share Ownership of Directors and Executive Officers




|                                                         |  |          |           |            |             |  |          |           |  |            |             |  |            |           |    |            |             |  |     |  |  |  |     | 
|-------------------------------------------------------- |  | -------- | --------- | ---------- | ----------- |  | -------- | --------- |  | ---------- | ----------- |  | ---------- | --------- | -- | ---------- | ----------- |  | --- |  |  |  | --- | 
|                                                         |  |          |           |            |             |  |          |           |  | 4%         |             |  |           
|                                                         |  |          |           | Percent of |             |  | Series B |           |  | Percent of |             |  | Cumulative |           |    | Percent of |            
|                                                         |  | Common   |           |            | Class       |  |          | Preferred |  |            | Class       |  |            | Preferred |    |            | Class       | 
|Name                                                     |  | Stock(1) |           |            | Outstanding |  |          | Stock     |  |            | Outstanding |  |            | Stock     |    |            | Outstanding | 
|                                                         |  |          |           |            |             |  |          |           |  |            |             |  |            |           |    |            |             | 
|Darryl F. Allen(2)                                       |  |          | 26,012    |            |             |  | *        |           |  |            |            |  |            |           |   |            |             |  |    |  |  |  |    | 
|Sallie B. Bailey(2)                                      |  |          | 0         |            |             |  | 0        |           |  |            |            |  |            |           |   |            |             |  |    |  |  |  |    | 
|Ronald D. Brown(3)                                       |  |          | 1,247,830 |            |             |  | 2.5      |           |  |            |            |  |            |           |   |            |             |  |    |  |  |  |    | 
|David L. Burner(2)                                       |  |          | 21,560    |            |             |  | *        |           |  |            |            |  |            |           |   |            |             |  |    |  |  |  |    | 
|Barbara Hackman Franklin(2)                              |  |          | 30,076    |            |             |  | *        |           |  |            |            |  |            |           |   |            |             |  |    |  |  |  |    | 
|Steven N. Isaacs(2)(4)                                   |  |          | 5,961     |            |             |  | *        |           |  |            | 350,000     |  |            |           | 70 |            |             |  |    |  |  |  |    | 
|Mark L. Segal(2)                                         |  |          | 2,000     |            |             |  | *        |           |  |            |            |  |            |           |   |            |             |  |    |  |  |  |    | 
|Joseph A. Steger(2)(3)                                   |  |          | 27,480    |            |             |  | *        |           |  |            |            |  |            |           |   |            |             |  |    |  |  |  |    | 
|Duane K. Stullich(2)                                     |  |          | 2,904     |            |             |  | *        |           |  |            |            |  |            |           |   |            |             |  |    |  |  |  |    | 
|Charles F. C. Turner(2)(3)                               |  |          | 13,138    |            |             |  | *        |           |  |            |            |  |            |           |   |            |             |  | 342 |  |  |  | 0.6 | 
|Larry D. Yost(2)                                         |  |          | 2,000     |            |             |  | *        |           |  |            |            |  |            |           |   |            |             |  |    |  |  |  |    | 
|Karlheinz Bourdon(2)                                     |  |          | 45,950    |            |             |  | *        |           |  |            |            |  |            |           |   |            |             |  |    |  |  |  |    | 
|Robert P. Lienesch                                       |  |          | 330,732   |            |             |  | *        |           |  |            |            |  |            |           |   |            |             |  |    |  |  |  |    | 
|Robert C. McKee                                          |  |          | 223,374   |            |             |  | *        |           |  |            |            |  |            |           |   |            |             |  |    |  |  |  |    | 
|Hugh C. ODonnell                                        |  |          | 306,763   |            |             |  | *        |           |  |            |            |  |            |           |   |            |             |  |    |  |  |  |    | 
|All directors and named executive officers as a Group(5) |  |          | 2,285,780 |            |             |  | 4.6      |           |  |            | 350,000     |  |            |           | 70 |            |             |  | 342 |  |  |  | 0.6 | 






| |   |                      
| | - | ---------------------
| | * | Denotes less than 1%.



|    |                                                                                                                                                                                                                                                                                                                                                                                                                          
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | The amounts shown include (a) the following shares that may
    be acquired within 60 days pursuant to outstanding option
    grants: Mr. Bourdon 45,950 shares, Mr. Brown
    260,000 shares, Mr. Lienesch 113,000 shares,
    Mr. McKee 78,050 shares, Mr. ODonnell
    85,000 shares, Mr. Allen 13,000 shares,
    Mr. Burner 10,000 shares, Ms. Franklin
    14,000 shares, Mr. Steger 15,000 shares,
    Mr. Turner

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|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    | 3,000 shares, and 694,650 shares for all directors and
    executive officers as a group; (b) 350,000 shares of
    Series B Preferred Stock acquired by Glencore Finance AG of
    which Mr. Isaacs has the right to direct dispositions and
    voting (Mr. Isaacs has disclaimed beneficial ownership of
    the 150,000 shares of Series B Preferred Shares
    acquired by Mizuho International plc in the same transaction);
    (c) the following shares allocated to participant accounts
    under the Milacron Retirement Savings Plan, according to
    information furnished by the Plan Trustee: Mr. Brown
    3,357 shares, Mr. McKee 538 shares,
    Mr. ODonnell 3,227 shares, and
    17,825 shares for all directors and executive officers as a
    group; and (d) the following shares held by certain members
    of the individuals families as to which beneficial
    ownership is disclaimed: Mr. Brown 145 shares,
    Mr. Lienesch 82,732 shares and Mr. Turner
    901 shares.
|   
|(2) | The amounts shown do not include: (a) 193,711 Phantom Stock
    Units held by Mr. Bourdon pursuant to phantom stock
    accounts which may be settled in cash or stock at the discretion
    of the Company; (b) credits of stock units under the
    Companys deferred compensation plan for non-employee
    directors as follows: Mr. Allen 52,403 units,
    Ms. Bailey 345 units, Mr. Burner
    37,116 units, Ms. Franklin 9,230 units,
    Mr. Isaacs 1,412 units, Mr. Segal
    1,266 units, Mr. Steger 15,418 units,
    Mr. Stullich 1,266 units, Mr. Turner
    6,821 units, and Mr. Yost 1,266 units; and
    (c) 9,331 deferred shares each for Messrs. Allen,
    Burner, Isaacs, Segal, Steger, Stullich, Turner, Yost and
    Ms. Bailey and Ms. Franklin granted pursuant to the
    Milacron Inc. 2004 Long-Term Incentive Plan.                                                                                                                                                         
|   
|(3) | The amounts shown do not include 3,913 shares of 4%
    Cumulative Preferred Stock held by the Milacron Geier Foundation
    (of which Messrs. Brown, Steger, and Turner are Trustees),
    as to which shares beneficial ownership is disclaimed.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|   
|(4) | The amount shown, which is 70% of the outstanding Series B
    Preferred Stock, represents the shares owned by Glencore of
    which Mr. Isaacs has the right to direct dispositions and
    voting (Mr. Isaacs has disclaimed beneficial ownership to
    the 150,000 shares owned by Mizuho which were acquired in
    the same transaction in which Glencore acquired its shares). See
    footnotes 6 and 8 to the Principal Holders of Voting
    Securities table for information about Glencores
    sale of a participation interest in its investment in the
    Series B Preferred Stock to a third party.                                                                                                                                                                                                                                                                                                                                                                                     
|   
|(5) | Directors and executive officers beneficial
    ownership as a group is: 5.5% of the outstanding Common Stock
    (17 persons), 70% of the outstanding Series B Preferred
    Stock (1 person) and 0.6% of the outstanding 4% Cumulative
    Preferred Stock (1 person). In the event of full conversion of
    the Series B Common Stock held by Glencore and Mizuho,
    directors and executive officers beneficial ownership as a
    group of outstanding Common Stock would be 2.6% excluding
    Mr. Isaacs interest in Glencores holdings and
    40% including Mr. Isaacs interest in Glencores
    holdings.                                                                                                                                                                                                                                                                                                                                                                               






|         |                                               
|-------- | ----------------------------------------------
|Item 13. | Certain Relationships and Related Transactions





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3 8  5 8 1 2







|         |                                       
|-------- | --------------------------------------
|Item 14. | Principal Accountant Fees and Services



Principal Accountant Fees and Services


|                      |  |      |           |  |      |   |           | 
|--------------------- |  | ---- | --------- |  | ---- | - | --------- | 
|                      |  | 2004 |           |  | 2003 |  
|                      |  |      |           |  |      |  
|Audit Fees(a)         |  | $    | 4,377,000 |  |      | $ | 1,408,000 | 
|Audit-related fees(b) |  |      | 14,000    |  |      |   |          | 
|Tax fees(c)           |  |      | 336,000   |  |      |   | 322,000   | 
|All other fees(d)     |  |      | 6,000     |  |      |   | 13,000    | 
|                      |  |      |           |  |      |  
|Total                 |  | $    | 4,733,000 |  |      | $ | 1,743,000 | 
|                      |  |      |           |  |      |  






|    |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|--- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | For services related to the annual audit of the companys
    consolidated financial statements (including statutory audits of
    subsidiaries or affiliates of the company), quarterly reviews of
    Forms 10-Q, issuance of the attestation on the
    companys internal controls over financial reporting,
    issuance of consents, issuance of comfort letters and assistance
    with review of documents filed with the Securities and Exchange
    Commission.
|   
|(b) |  | For services related to the companys March 2004
    refinancing of debt.                                                                                                                                                                                                                                                                                                                                                                                                
|   
|(c) |  | For services related to tax compliance, tax return preparation
    and tax planning.                                                                                                                                                                                                                                                                                                                                                                                     
|   
|(d) |  | For miscellaneous performed services in 2004 and 2003.                                                                                                                                                                                                                                                                                                                                                                                                                   



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PART IV







|         |                                           
|-------- | ------------------------------------------
|Item 15. | Exhibits and Financial Statement Schedules

Item 15(a) (1) & (2)  List of
Financial Statements and Financial Statement Schedules




|                                                                                                                 |  |      |     | 
|---------------------------------------------------------------------------------------------------------------- |  | ---- | --- | 
|                                                                                                                 |  | Page |    
|                                                                                                                 |  |      |    
|Consolidated Statements of Operations  2004, 2003 and
    2002                                                  |  |      | 43  | 
|Consolidated Balance Sheets  2004 and 2003                                                                      |  |      | 44  | 
|Consolidated Statements of Comprehensive Income and
    Shareholders Equity (Deficit)  2004, 2003 and
    2002 |  |      | 45  | 
|Consolidated Statements of Cash Flows  2004, 2003 and
    2002                                                  |  |      | 46  | 
|Notes to Consolidated Financial Statements                                                                       |  |      | 47  | 
|Report of Independent Registered Public Accounting Firm                                                          |  |      | 105 | 
|Supplementary Financial Information                                                                              |  |      | 106 | 



|                                                                 |  |  |     | 
|---------------------------------------------------------------- |  |  | --- | 
|Schedule II  Valuation and Qualifying Accounts
    and Reserves |  |  | 133 | 





|        |                          
|------- | -------------------------
|Item 15 | (a)(3)  List of Exhibits

|            |   |    |  |                                                                                                                                                                                                                                         |  |  |  | 
|----------- | - | -- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  |  |  | 
|Exhibit No. |   |    |  |                                                                                                                                                                                                                                        
|            |   |    |  |                                                                                                                                                                                                                                        
|            | 2 | .  |  | Plan of Acquisition, Reorganization, Arrangement, Liquidation,
    or Succession  not applicable.                                                                                                                                      |  |  |  | 
|            | 3 |    |  | Articles of Incorporation and By-Laws.                                                                                                                                                                                                  |  |  |  | 
|            | 3 | .1 |  | Restated Certificate of Incorporation of Milacron Inc.                                                                                                                                                                                  |  |  |  | 
|            |   |    |  |  Incorporated by reference to the companys
    Form S-8 filed on June 11, 2004                                                                                                                                                        |  |  |  | 
|            | 3 | .2 |  | Certificate of Designation of 6.0% Series B Convertible
    Preferred Stock of Milacron Inc.                                                                                                                                            |  |  |  | 
|            |   |    |  |  Incorporated by reference to the companys
    Form S-8 filed on June 11, 2004                                                                                                                                                        |  |  |  | 
|            | 3 | .3 |  | Amended and restated By-Laws of Milacron Inc.                                                                                                                                                                                           |  |  |  | 
|            |   |    |  |  Incorporated by reference to the companys
    Form S-8 filed on June 11, 2004                                                                                                                                                        |  |  |  | 
|            | 4 |    |  | Instruments Defining the Rights of Security Holders, Including
    Indentures:                                                                                                                                                          |  |  |  | 
|            | 4 | .1 |  | Indenture dated as of May 26, 2004, between Milacron Escrow
    Corporation, to be merged with and into Milacron Inc., and
    U.S. Bank National Association, as trustee, relating to the
    111/2% Senior
    Secured Notes due 2011 |  |  |  | 
|            |   |    |  |  Incorporated by reference to the companys
    Form S-4 filed on June 25, 2004 (Registration
    No. 333-116899)                                                                                                                      |  |  |  | 
|            | 4 | .2 |  | Supplemental Indenture dated as of June 10, 2004, among
    Milacron Inc., the Guaranteeing Subsidiaries named therein and
    U.S. Bank National Association, as trustee, relating to the
    111/2% Senior
    Secured Notes due 2011 |  |  |  | 
|            |   |    |  |  Incorporated by reference to the companys
    Form S-4 filed on June 25, 2004 (Registration
    No. 333-116899)                                                                                                                      |  |  |  | 
|            | 4 | .3 |  | Form of
    111/2% Senior
    Secured Notes due 2011 (included in Exhibit 4.1)                                                                                                                                                          |  |  |  | 

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|            |   |     |  |                                                                                                                                                                                                                                                                      |  |  |  | 
|----------- | - | --- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  |  |  | 
|Exhibit No. |   |     |  |                                                                                                                                                                                                                                                                      | 
|            |   |     |  |                                                                                                                                                                                                                                                                      | 
|            | 4 | .4  |  | Registration Rights Agreement dated as of May 26, 2004,
    between Milacron Escrow Corporation and Credit Suisse First
    Boston LLC, as representative of the several purchasers listed
    therein, relating to the
    111/2% Senior
    Secured Notes due 2011 |  |  |  | 
|            |   |     |  |  Incorporated by reference to the companys
    Form S-4 filed on June 25, 2004 (Registration
    No. 333-116899)                                                                                                                                                   |  |  |  | 
|            | 4 | .5  |  | Joinder to the Registration Rights Agreement dated June 10,
    2004 by Milacron Inc. and the Guarantors listed therein                                                                                                                                              |  |  |  | 
|            |   |     |  |  Incorporated by reference to the companys
    Form S-4 filed on June 25, 2004 (Registration
    No. 333-116899)                                                                                                                                                   |  |  |  | 
|            | 4 | .6  |  | Security Agreement dated June 10, 2004, made by each of the
    Grantors listed therein in favor of U.S. Bank National
    Association                                                                                                                               |  |  |  | 
|            |   |     |  |  Incorporated by reference to the companys
    Form S-4 filed on June 25, 2004 (Registration
    No. 333-116899)                                                                                                                                                   |  |  |  | 
|            | 4 | .7  |  | Security Agreement (Canada) dated June 10, 2004, made by
    each of the Grantors listed therein in favor of U.S. Bank
    National Association                                                                                                                      |  |  |  | 
|            |   |     |  |  Incorporated by reference to the companys
    Form S-4 filed on June 25, 2004 (Registration
    No. 333-116899)                                                                                                                                                   |  |  |  | 
|            | 4 | .8  |  | Pledge and Security Agreement dated June 10, 2004, made by
    each of the Pledgors listed therein in favor of U.S. Bank
    National Association                                                                                                                    |  |  |  | 
|            |   |     |  |  Incorporated by reference to the companys
    Form S-4 filed on June 25, 2004 (Registration
    No. 333-116899)                                                                                                                                                   |  |  |  | 
|            | 4 | .9  |  | Intercreditor Agreement dated as of June 10, 2004, by and
    between JPMorgan Chase Bank and U.S. Bank National
    Association, acknowledged by Milacron Inc. and the subsidiaries
    of Milacron Inc. listed therein                                             |  |  |  | 
|            |   |     |  |  Incorporated by reference to the companys
    Form S-4 filed on June 25, 2004 (Registration
    No. 333-116899)                                                                                                                                                   |  |  |  | 
|            | 4 | .10 |  | Mortgage, Assignment of Leases and Rents, Security Agreement and
    Fixture Filing made by D-M-E Company in favor of U.S. Bank
    National Association (1975 N. 17th Avenue, Melrose
    Park, Illinois 60160), dated as of June 10, 2004                          |  |  |  | 
|            |   |     |  |  Incorporated by reference to the companys
    Form S-4 filed on June 25, 2004 (Registration
    No. 333-116899)                                                                                                                                                   |  |  |  | 
|            | 4 | .11 |  | Mortgage made by D-M-E U.S.A. Inc. in favor of U.S. Bank
    National Association (6328 Ferry Avenue, Charlevoix, Michigan
    49720), dated as of June 10, 2004                                                                                                     |  |  |  | 
|            |   |     |  |  Incorporated by reference to the companys
    Form S-4 filed on June 25, 2004 (Registration
    No. 333-116899)                                                                                                                                                   |  |  |  | 
|            | 4 | .12 |  | Mortgage made by D-M-E U.S.A. Inc. in favor of U.S. Bank
    National Association (29215 Stephenson Highway, Madison Heights,
    Michigan 48071) dated as of June 10, 2004                                                                                          |  |  |  | 
|            |   |     |  |  Incorporated by reference to the companys
    Form S-4 filed on June 25, 2004 (Registration
    No. 333-116899)                                                                                                                                                   |  |  |  | 
|            | 4 | .13 |  | Mortgage made by Oak International, Inc. in favor of
    U.S. Bank National Association (1160 White Street, Sturgis,
    Michigan 49091), dated as of June 10, 2004                                                                                                  |  |  |  | 
|            |   |     |  |  Incorporated by reference to the companys
    Form S-4 filed on June 25, 2004 (Registration
    No. 333-116899)                                                                                                                                                   |  |  |  | 
|            | 4 | .14 |  | Mortgage made by Milacron Industrial Products, Inc. in favor of
    U.S. Bank National Association (31003 Industrial Road,
    Livonia, Michigan 48150), dated as of June 10, 2004                                                                                   |  |  |  | 
|            |   |     |  |  Incorporated by reference to the companys
    Form S-4 filed on June 25, 2004 (Registration
    No. 333-116899)                                                                                                                                                   |  |  |  | 

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|            |    |     |  |                                                                                                                                                                                                                                                       |  |  |  | 
|----------- | -- | --- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  |  |  | 
|Exhibit No. |    |     |  |                                                                                                                                                                                                                                                       | 
|            |    |     |  |                                                                                                                                                                                                                                                       | 
|            | 4  | .15 |  | Mortgage made by D-M-E U.S.A. Inc. in favor of U.S. Bank
    National Association (29111 Stephenson Highway, Madison Heights,
    Michigan 48071), dated as of June 10, 2004                                                                          |  |  |  | 
|            |    |     |  |  Incorporated by reference to the companys
    Form S-4 filed on June 25, 2004 (Registration
    No. 333-116899)                                                                                                                                    |  |  |  | 
|            | 4  | .16 |  | Open-End Mortgage, Assignment of Leases and Rents, Security
    Agreement and Fixture Filing made by D-M-E Company in favor of
    U.S. Bank National Association (558 Leo Street, Dayton,
    Ohio 45404) dated as of June 10, 2004                  |  |  |  | 
|            |    |     |  |  Incorporated by reference to the companys
    Form S-4 filed on June 25, 2004 (Registration
    No. 333-116899)                                                                                                                                    |  |  |  | 
|            | 4  | .17 |  | Open-End Mortgage, Assignment of Leases and Rents, Security
    Agreement and Fixture Filing made by Milacron Inc. in favor of
    U.S. Bank National Association (418 West Main Street, Mount
    Orab, Ohio 45154) dated as of June 10, 2004        |  |  |  | 
|            |    |     |  |  Incorporated by reference to the companys
    Form S-4 filed on June 25, 2004 (Registration
    No. 333-116899)                                                                                                                                    |  |  |  | 
|            | 4  | .18 |  | Open-End Mortgage, Assignment of Leases and Rents, Security
    Agreement and Fixture Filing made by Milacron Inc. in favor of
    U.S. Bank National Association (3000 Disney Street,
    Cincinnati, Ohio 45209) dated as of June 10, 2004          |  |  |  | 
|            |    |     |  |  Incorporated by reference to the companys
    Form S-4 filed on June 25, 2004 (Registration
    No. 333-116899)                                                                                                                                    |  |  |  | 
|            | 4  | .19 |  | Open-End Mortgage, Assignment of Leases and Rents, Security
    Agreement and Fixture Filing made by Milacron Inc. in favor of
    U.S. Bank National Association (3010 Disney Street,
    Cincinnati, Ohio 45209) dated as of June 10, 2004          |  |  |  | 
|            |    |     |  |  Incorporated by reference to the companys
    Form S-4 filed on June 25, 2004 (Registration
    No. 333-116899)                                                                                                                                    |  |  |  | 
|            | 4  | .20 |  | Open-End Mortgage, Assignment of Leases and Rents, Security
    Agreement and Fixture Filing made by D-M-E Company in favor of
    U.S. Bank National Association (977 Loop road, Lewistown,
    Pennsylvania) dated as of June 10, 2004              |  |  |  | 
|            |    |     |  |  Incorporated by reference to the companys
    Form S-4 filed on June 25, 2004 (Registration
    No. 333-116899)                                                                                                                                    |  |  |  | 
|            | 4  | .21 |  | Open-End Mortgage, Assignment of Leases and Rents, Security
    Agreement and Fixture Filing made by D-M-E Company in favor of
    U.S. Bank National Association (70 East Hills Street,
    Youngwood, Pennsylvania 15697) dated as of June 10, 2004 |  |  |  | 
|            |    |     |  |  Incorporated by reference to the companys
    Form S-4 filed on June 25, 2004 (Registration
    No. 333-116899)                                                                                                                                    |  |  |  | 
|            | 9  | .   |  | Voting Trust Agreement  not applicable                                                                                                                                                                                                               |  |  |  | 
|            | 10 | .   |  | Material Contracts:                                                                                                                                                                                                                                   |  |  |  | 
|            | 10 | .1  |  | Milacron Supplemental Pension Plan, as amended                                                                                                                                                                                                        |  |  |  | 
|            |    |     |  |  Incorporated by reference to the companys Form
    10-K for the fiscal year ended December 31, 1999
    (File No. 001-08485)                                                                                                                       |  |  |  | 
|            | 10 | .2  |  | Milacron Supplemental Retirement Plan, as amended                                                                                                                                                                                                     |  |  |  | 
|            |    |     |  |  Incorporated by reference to the companys Form
    10-K for the fiscal year ended December 31, 1999
    (File No. 001-08485)                                                                                                                       |  |  |  | 
|            | 10 | .3  |  | Milacron Supplemental Executive Retirement Plan, as amended                                                                                                                                                                                           |  |  |  | 
|            |    |     |  |  Incorporated by reference to the companys Form
    10-K for the fiscal year ended December 31, 2002                                                                                                                                                |  |  |  | 
|            | 10 | .4  |  | Milacron Supplemental Retirement Plan Amended and Restated Trust
    Agreement by and between Milacron Inc. Reliance Trust Company                                                                                                                    |  |  |  | 
|            |    |     |  |  Incorporated by reference to the companys Form
    10-Q for the quarter ended June 30, 2004                                                                                                                                                        |  |  |  | 
|            | 10 | .5  |  | Milacron Supplemental Executive Pension Plan                                                                                                                                                                                                          |  |  |  | 
|            |    |     |  |  Incorporated by reference to the companys Form
    10-K for the fiscal year ended December 31, 1999
    (File No. 001-08485)                                                                                                                       |  |  |  | 

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|            |    |     |  |                                                                                                                                                                                                 |  |  |  | 
|----------- | -- | --- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  |  |  | 
|Exhibit No. |    |     |  |                                                                                                                                                                                                 | 
|            |    |     |  |                                                                                                                                                                                                 | 
|            | 10 | .6  |  | Milacron Kunststoffmaschinen Europa GmbH Pension Plan for Senior
    Managers and Executives                                                                                                    |  |  |  | 
|            |    |     |  |  Filed herewith                                                                                                                                                                                |  |  |  | 
|            | 10 | .7  |  | Milacron Compensation Deferral Plan, as amended                                                                                                                                                 |  |  |  | 
|            |    |     |  |  Incorporated by reference to the companys Form
    10-K for the fiscal year ended December 31, 1999                                                                                          |  |  |  | 
|            | 10 | .8  |  | Milacron Compensation Deferral Plan, as amended
    February 26, 2004                                                                                                                           |  |  |  | 
|            |    |     |  |  Incorporated by reference to the companys Form
    10-K for the fiscal year ended December 31, 2003                                                                                          |  |  |  | 
|            | 10 | .9  |  | Milacron Compensation Deferral Plan Trust Agreement by and
    between Milacron Inc. And Reliance Trust Company                                                                                 |  |  |  | 
|            |    |     |  |  Incorporated by reference to the companys Form
    10-K for the fiscal year ended December 31, 1999
    (File No. 001-08485)                                                                 |  |  |  | 
|            | 10 | .10 |  | Milacron Inc. Executive Life Insurance Plan                                                                                                                                                     |  |  |  | 
|            |    |     |  |  Filed herewith                                                                                                                                                                                |  |  |  | 
|            | 10 | .11 |  | Form of Tier I Executive Severance Agreement applicable to
    R. D. Brown                                                                                                                      |  |  |  | 
|            |    |     |  |  Incorporated by reference to the companys Form
    10-Q for the quarter ended September 30, 2003                                                                                             |  |  |  | 
|            | 10 | .12 |  | Form of Tier II Executive Severance Agreement applicable to
    R. P. Lienesch and H. C. ODonnell                                                                                              |  |  |  | 
|            |    |     |  |  Incorporated by reference to the companys Form
    10-Q for the quarter ended September 30, 2003                                                                                             |  |  |  | 
|            | 10 | .13 |  | Form of Tier II Executive Severance Agreement applicable to
    K. Bourdon and R. C. McKee                                                                                                      |  |  |  | 
|            |    |     |  |  Filed herewith                                                                                                                                                                                |  |  |  | 
|            | 10 | .14 |  | Amendment to Tier 1 Executive Severance Agreement with R.
    D. Brown and Tier II Executive Severance Agreements with R.
    P. Lienesch and H. C. ODonnell dated as of
    February 10, 2004 |  |  |  | 
|            |    |     |  |  Incorporated by reference to the companys Form
    10-K for the fiscal year ended December 31, 2003                                                                                          |  |  |  | 
|            | 10 | .15 |  | Temporary Enhanced Severance Plan applicable to R. D.
    Brown, R. P. Lienesch, H. C. ODonnell and R. C.
    McKee                                                                            |  |  |  | 
|            |    |     |  |  Incorporated by reference to the companys Form
    10-Q for the quarter ended September 30, 2003                                                                                             |  |  |  | 
|            | 10 | .16 |  | Award Letter re. Temporary Enhanced Severance Plan to R. D.
    Brown                                                                                                                           |  |  |  | 
|            |    |     |  |  Incorporated by reference to the companys Form
    10-Q for the quarter ended September 30, 2003                                                                                             |  |  |  | 
|            | 10 | .17 |  | Award Letter re. Temporary Enhanced Severance Plan to R. P.
    Lienesch                                                                                                                        |  |  |  | 
|            |    |     |  |  Incorporated by reference to the companys Form
    10-Q for the quarter ended September 30, 2003                                                                                             |  |  |  | 
|            | 10 | .18 |  | Award Letter re. Temporary Enhanced Severance Plan to H. C.
    ODonnell                                                                                                                       |  |  |  | 
|            |    |     |  |  Incorporated by reference to the companys Form
    10-Q for the quarter ended September 30, 2003                                                                                             |  |  |  | 
|            | 10 | .19 |  | Award Letter re. Temporary Enhanced Severance Plan to R. C.
    McKee                                                                                                                           |  |  |  | 
|            |    |     |  |  Filed herewith                                                                                                                                                                                |  |  |  | 
|            | 10 | .20 |  | Employment Agreement with Karlheinz Bourdon dated March 30,
    2005                                                                                                                            |  |  |  | 
|            |    |     |  |  Filed herewith                                                                                                                                                                                |  |  |  | 
|            | 10 | .21 |  | Executive Medical Expense Reimbursement Plan, Amended as of
    July 29, 2004                                                                                                                   |  |  |  | 
|            |    |     |  |  Incorporated by reference to the companys Form
    10-Q for the quarter ended September 30, 2004                                                                                             |  |  |  | 

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|            |    |     |  |                                                                                                                                                                                                                                                                                                                                                                                                                     |  |  |  | 
|----------- | -- | --- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  |  |  | 
|Exhibit No. |    |     |  |                                                                                                                                                                                                                                                                                                                                                                                                                     | 
|            |    |     |  |                                                                                                                                                                                                                                                                                                                                                                                                                     | 
|            | 10 | .22 |  | Milacron Inc. 2002 Short-Term Incentive Plan, as amended
    February 10, 2004                                                                                                                                                                                                                                                                                                                                      |  |  |  | 
|            |    |     |  |  Incorporated by reference to the companys Form
    10-K for the fiscal year ended December 31, 2003                                                                                                                                                                                                                                                                                                              |  |  |  | 
|            | 10 | .23 |  | Milacron Inc. 1994 Long-Term Incentive Plan, as amended
    July 29, 2004                                                                                                                                                                                                                                                                                                                                           |  |  |  | 
|            |    |     |  |  Incorporated by reference to the companys Form
    10-Q for the quarter ended September 30, 2004                                                                                                                                                                                                                                                                                                                 |  |  |  | 
|            | 10 | .24 |  | Milacron Inc. 1997 Long-Term Incentive Plan, as amended
    July 29, 2004                                                                                                                                                                                                                                                                                                                                           |  |  |  | 
|            |    |     |  |  Incorporated by reference to the companys Form
    10-Q for the quarter ended September 30, 2004                                                                                                                                                                                                                                                                                                                 |  |  |  | 
|            | 10 | .25 |  | Milacron Inc. 2004 Long-Term Incentive Plan                                                                                                                                                                                                                                                                                                                                                                         |  |  |  | 
|            |    |     |  |  Incorporated by reference to the companys
    Form S-1 filed on June 25, 2004 (Registration
    No. 333-116892)                                                                                                                                                                                                                                                                                                  |  |  |  | 
|            | 10 | .26 |  | Form of Performance Based Restricted Shares Award Agreement                                                                                                                                                                                                                                                                                                                                                         |  |  |  | 
|            |    |     |  |  Incorporated by reference to the companys Form
    8-K filed on February 17, 2005                                                                                                                                                                                                                                                                                                                                |  |  |  | 
|            | 10 | .27 |  | Form of Restricted Shares Award Agreement                                                                                                                                                                                                                                                                                                                                                                           |  |  |  | 
|            |    |     |  |  Incorporated by reference to the companys Form
    8-K filed on February 17, 2005                                                                                                                                                                                                                                                                                                                                |  |  |  | 
|            | 10 | .28 |  | Form of Notice of Award of Deferred Shares for Directors                                                                                                                                                                                                                                                                                                                                                            |  |  |  | 
|            |    |     |  |  Incorporated by reference to the companys Form
    8-K filed on February 17, 2005                                                                                                                                                                                                                                                                                                                                |  |  |  | 
|            | 10 | .29 |  | Form of Phantom Share Account Agreement: Performance                                                                                                                                                                                                                                                                                                                                                                |  |  |  | 
|            |    |     |  |  Incorporated by reference to the companys Form
    8-K filed on February 17, 2005                                                                                                                                                                                                                                                                                                                                |  |  |  | 
|            | 10 | .30 |  | Form of Phantom Share Account Agreement                                                                                                                                                                                                                                                                                                                                                                             |  |  |  | 
|            |    |     |  |  Incorporated by reference to the companys Form
    8-K filed on February 17, 2005                                                                                                                                                                                                                                                                                                                                |  |  |  | 
|            | 10 | .31 |  | Milacron Inc. Plan for the Deferral of Directors
    Compensation, as amended                                                                                                                                                                                                                                                                                                                                      |  |  |  | 
|            |    |     |  |  Incorporated by reference to the companys Form
    10-K for the fiscal year ended December 31, 1998 (File
    No. 001-08485)                                                                                                                                                                                                                                                                                     |  |  |  | 
|            | 10 | .32 |  | Milacron Inc. Retirement Plan for Non-Employee Directors, as
    amended                                                                                                                                                                                                                                                                                                                                            |  |  |  | 
|            |    |     |  |  Incorporated by reference to the companys Form
    10-K for the for the fiscal year ended December 31, 1998
    (File No. 001-08485)                                                                                                                                                                                                                                                                             |  |  |  | 
|            | 10 | .33 |  | Milacron Retirement Plan for Non-Employee Directors, as amended
    February 10, 2004                                                                                                                                                                                                                                                                                                                               |  |  |  | 
|            |    |     |  |  Incorporated by reference to the companys Form
    10-K for the fiscal year ended December 31, 2003                                                                                                                                                                                                                                                                                                              |  |  |  | 
|            | 10 | .34 |  | Rights Agreement dated as of February 5, 1999, between
    Milacron Inc. and ChaseMellon Shareholder Services, LLC, as
    Rights Agent                                                                                                                                                                                                                                                                             |  |  |  | 
|            |    |     |  |  Incorporated by reference to the companys
    Registration Statement on Form 8-A (File No. 001-08485)                                                                                                                                                                                                                                                                                                            |  |  |  | 
|            | 10 | .35 |  | Amendment No. 1 to Rights Agreement dated as of
    March 11, 2004 among Milacron Inc. and Mellon Investor
    Services LLC                                                                                                                                                                                                                                                                                         |  |  |  | 
|            |    |     |  |  Incorporated by reference to the companys Form
    10-K for the fiscal year ended December 31, 2003                                                                                                                                                                                                                                                                                                              |  |  |  | 
|            | 10 | .36 |  | Amendment No. 2 to Rights Agreement dated as of
    June 9, 2004 among Milacron Inc. and Mellon Investor
    Services LLC                                                                                                                                                                                                                                                                                           |  |  |  | 
|            |    |     |  |  Incorporated by reference to the companys
    Form S-1 filed on June 25, 2004 (Registration
    No. 333-116892)                                                                                                                                                                                                                                                                                                  |  |  |  | 
|            | 10 | .37 |  | Financing Agreement dated as of June 10, 2004 by and among
    Milacron Inc. and certain subsidiaries as Borrowers, certain
    subsidiaries as Guarantors, the Lenders from time to time party
    thereto, JPMorgan Chase Bank as Administrative and Collateral
    Agent, Wells Fargo Foothill, LLC as Documentation Agent and
    J.P. Morgan Business Credit Corp., as Sole Lead Arranger
    and Book Manager |  |  |  | 
|            |    |     |  |  Incorporated by reference to the companys
    Form S-1 filed on June 25, 2004 (Registration
    No. 333-116892)                                                                                                                                                                                                                                                                                                  |  |  |  | 

129



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|            |    |     |  |                                                                                                                                                                                                                                                                                               |  |  |  | 
|----------- | -- | --- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  |  |  | 
|Exhibit No. |    |     |  |                                                                                                                                                                                                                                                                                               | 
|            |    |     |  |                                                                                                                                                                                                                                                                                               | 
|            | 10 | .38 |  | First Amendment to Financing Agreement dated as of
    September 28, 2004 among Milacron Inc., each subsidiary of
    Milacron Inc. listed as a borrower or Guarantor, the Lenders and
    JPMorgan Chase Bank as administrative agent and collateral agent                                   |  |  |  | 
|            |    |     |  |  Incorporated by reference to the companys Form
    8-K dated September 28, 2004                                                                                                                                                                                                            |  |  |  | 
|            | 10 | .39 |  | Limited Waiver, Consent and Second Amendment to Financing
    Agreement, dated as of November 8, 2004 among Milacron
    Inc., each subsidiary of Milacron Inc. listed as a Borrower or a
    guarantor, the Lenders and JPMorgan Chase Bank as administrative
    agent and collateral agent |  |  |  | 
|            |    |     |  |  Incorporated by reference to the companys Form
    10-Q for the quarter ended September 30, 2004                                                                                                                                                                                           |  |  |  | 
|            | 10 | .40 |  | Third Amendment to Financing Agreement dated as of
    February 11, 2005 among Milacron Inc., each subsidiary
    listed as a borrower or guarantor, the Lenders and JPMorgan
    Chase Bank, National Association, as administrative agent and
    collateral agent                          |  |  |  | 
|            |    |     |  |  Incorporated by reference to the companys Form
    8-K filed on February 17, 2005                                                                                                                                                                                                          |  |  |  | 
|            | 10 | .41 |  | Limited Waiver to Financing Agreement dated as of March 14,
    2005 among Milacron Inc., each subsidiary of Milacron
    listed as a borrower or a guarantor, the Lenders and JPMorgan
    ChaseBank, National Association, as administrative agent and
    collateral agent                 |  |  |  | 
|            |    |     |  |  Incorporated by reference to the companys
    Form 8-K filed on March 17, 2005                                                                                                                                                                                                             |  |  |  | 
|            | 10 | .42 |  | Limited Waiver No. 2 to Financing Agreement dated as of
    March 16, 2005 among Milacron Inc., each subsidiary of
    Milacron listed as a borrower or a guarantor, the Lenders and
    JPMorgan ChaseBank, National Association, as administrative
    agent and collateral agent           |  |  |  | 
|            |    |     |  |  Incorporated by reference to the companys
    Form 8-K filed on March 17, 2005                                                                                                                                                                                                             |  |  |  | 
|            | 10 | .43 |  | ISDA 2002 Master Agreement dated as of July 28, 2004
    between JPMorgan Chase Bank and Milacron Inc. and the schedule
    and Swap Transaction letter agreement related thereto                                                                                                             |  |  |  | 
|            |    |     |  |  Incorporated by reference to the companys Form
    10-Q for the quarter ended September 30, 2004                                                                                                                                                                                           |  |  |  | 
|            | 10 | .44 |  | Registration Rights Agreement dated as of March 12, 2004
    among Milacron Inc., Glencore Finance AG and Mizuho
    International plc                                                                                                                                                        |  |  |  | 
|            |    |     |  |  Incorporated by reference to the companys Form
    10-K for the fiscal year ended December 31, 2003                                                                                                                                                                                        |  |  |  | 
|            | 10 | .45 |  | Note Purchase Agreement dated as of March 12, 2004 among
    Milacron Inc., Glencore Finance AG and Mizuho International plc                                                                                                                                                                  |  |  |  | 
|            |    |     |  |  Incorporated by reference to the companys Form
    10-K for the fiscal year ended December 31, 2003                                                                                                                                                                                        |  |  |  | 
|            | 10 | .46 |  | Letter Amendment to Note Purchase Agreement dated April 5,
    2004 among Milacron Inc., Glencore Finance AG and Mizuho
    International plc                                                                                                                                                 |  |  |  | 
|            |    |     |  |  Incorporated by reference to the companys
    Form S-1 filed on June 25, 2004 (Registration
    No. 333-116892)                                                                                                                                                                            |  |  |  | 
|            | 10 | .47 |  | Letter Amendment to Note Purchase Agreement dated June 7,
    2004 among Milacron Inc., Glencore Finance AG and Mizuho
    International plc                                                                                                                                                  |  |  |  | 
|            |    |     |  |  Incorporated by reference to the companys
    Form S-1 filed on June 25, 2004 (Registration
    No. 333-116892)                                                                                                                                                                            |  |  |  | 
|            | 10 | .48 |  | Contingent Warrant Agreement dated March 12, 2003 by and
    among Milacron Inc., Glencore Finance AG and Mizuho
    International plc                                                                                                                                                        |  |  |  | 
|            |    |     |  |  Incorporated by reference to the companys
    Form S-1 filed on June 25, 2004 (Registration
    No. 333-116892)                                                                                                                                                                            |  |  |  | 

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|            |    |     |  |                                                                                                                                                                                                                                                                                                                               |  |  |  | 
|----------- | -- | --- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  |  |  | 
|Exhibit No. |    |     |  |                                                                                                                                                                                                                                                                                                                               | 
|            |    |     |  |                                                                                                                                                                                                                                                                                                                               | 
|            | 10 | .49 |  | Financing Agreement dated as of March 12, 2004 among
    Milacron Inc. and certain subsidiaries as Borrowers, certain
    subsidiaries as Guarantors, the Lenders from time to time party
    thereto, and Credit Suisse First Boston, Cayman Islands Branch,
    as Administrative and Collateral Agent                      |  |  |  | 
|            |    |     |  |  Incorporated by reference to the companys form
    10-K for the fiscal year end December 31, 2003                                                                                                                                                                                                                          |  |  |  | 
|            | 10 | .50 |  | Amended and restated Financing Agreement dated as of
    March 31, 2004 among Milacron Inc. and certain subsidiaries
    as Borrowers, certain subsidiaries as Guarantors, the Lenders
    from time to time party thereto, and Credit Suisse First Boston,
    Cayman Islands Branch, as Administrative and Collateral Agent |  |  |  | 
|            |    |     |  |  Incorporated by reference to the companys Form
    8-K dated March 31, 2004                                                                                                                                                                                                                                                |  |  |  | 
|            | 10 | .51 |  | Asset Purchase Agreement dated as of January 23, 1996,
    between Cincinnati Milacron Inc., a Delaware corporation, The
    Fairchild Corporation, a Delaware Corporation, RHI Holdings,
    Inc., a Delaware corporation, and the Designated Purchasers and
    Sellers named therein                                       |  |  |  | 
|            |    |     |  |  Incorporated herein by reference to the
    companys Form 8-K dated January 26, 1996
    (File No. 001-08485)                                                                                                                                                                                                              |  |  |  | 
|            | 10 | .52 |  | Purchase and Sale Agreement between UNOVA, Inc., UNOVA
    Industrial Automation Systems, Inc., UNOVA U.K. Limited and
    Cincinnati Milacron Inc. dated August 20, 1998                                                                                                                                                     |  |  |  | 
|            |    |     |  |  Incorporated by reference to the companys Form
    8-K dated October 2, 1998 (File No. 001-08485)                                                                                                                                                                                                                          |  |  |  | 
|            | 10 | .53 |  | Purchase and Sale Agreement between Johnson Controls, Inc.,
    Hoover Universal, Inc. and Cincinnati Milacron Inc., dated
    August 3, 1998                                                                                                                                                                                 |  |  |  | 
|            |    |     |  |  Incorporated by reference to the companys Form
    8-K dated September 20, 1998 (File No. 001-08485)                                                                                                                                                                                                                       |  |  |  | 
|            | 10 | .54 |  | Stock Purchase Agreement dated as of May 3, 2002 among
    Milacron Inc., Milacron B.V., and Kennametal Inc.                                                                                                                                                                                                                  |  |  |  | 
|            |    |     |  |  Incorporated by reference to the companys Form
    8-K dated May 3, 2002                                                                                                                                                                                                                                                   |  |  |  | 
|            | 10 | .55 |  | Stock Purchase Agreement dated as of June 17, 2002 between
    Milacron Inc., and Sandvik AB                                                                                                                                                                                                                                  |  |  |  | 
|            |    |     |  |  Incorporated by reference to the companys Form
    8-K dated June 17, 2002                                                                                                                                                                                                                                                 |  |  |  | 
|            | 11 | .   |  | Statement Regarding Computation of Per-Share Earnings                                                                                                                                                                                                                                                                         |  |  |  | 
|            | 15 | .   |  | Letter Regarding Unaudited Interim Financial
    Information  not applicable                                                                                                                                                                                                                                                 |  |  |  | 
|            | 18 | .   |  | Letter Regarding Change in Accounting Principles                                                                                                                                                                                                                                                                              |  |  |  | 
|            | 19 | .   |  | Report Furnished to Security Holders  not applicable                                                                                                                                                                                                                                                                         |  |  |  | 
|            | 21 | .   |  | Subsidiaries of the Registrant                                                                                                                                                                                                                                                                                                |  |  |  | 
|            | 22 | .   |  | Published Report Regarding Matters Submitted to Vote of Security
    Holders                                                                                                                                                                                                                                                  |  |  |  | 
|            |    |     |  |  not applicable                                                                                                                                                                                                                                                                                                              |  |  |  | 
|            | 23 | .   |  | Consent of Experts and Counsel  not applicable                                                                                                                                                                                                                                                                               |  |  |  | 
|            | 24 | .   |  | Power of Attorney  not applicable                                                                                                                                                                                                                                                                                            |  |  |  | 
|            | 31 | .   |  | Certifications pursuant to Section 302 of the
    Sarbanes-Oxley Act of 2002:                                                                                                                                                                                                                                                 |  |  |  | 
|            | 31 | .1  |  | Certification pursuant to Section 302 of the Sarbanes-Oxley
    Act                                                                                                                                                                                                                                                           |  |  |  | 
|            | 31 | .2  |  | Certification pursuant to Section 302 of the Sarbanes-Oxley
    Act                                                                                                                                                                                                                                                           |  |  |  | 
|            | 32 | .   |  | Certification pursuant to 18 U.S.C. Section 1350, as
    adopted pursuant to Section 906 of the Sarbanes-Oxley Act
    of 2002                                                                                                                                                                                                |  |  |  | 
|            | 99 | .   |  | Additional Exhibits  not applicable                                                                                                                                                                                                                                                                                          |  |  |  | 



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##### Table of Contents





|        |                                                                                     
|------- | ------------------------------------------------------------------------------------
|Item 15 | (b)  Index to Certain Exhibits and Financial
    Statement Schedules Filed Herewith

|              |  |                                                                                                                               
|------------- |  | ------------------------------------------------------------------------------------------------------------------------------
|Exhibit 10.6  |  | Milacron Kunststoffmaschinen Europa GmbH Pension Plan for Senior
    Managers and Executives                                  
|Exhibit 10.10 |  | Milacron Inc. Executive Life Insurance Plan                                                                                   
|Exhibit 10.13 |  | Form of Tier II Executive Severance Agreement Applicable to
    K. Bourdon and R.C. McKee                                     
|Exhibit 10.19 |  | Award Letter re. Temporary Enhanced Severance Plan to R.C. McKee                                                              
|Exhibit 10.20 |  | Employment Agreement with Karlheinz Bourdon dated March 30,
    2005                                                          
|Exhibit 11    |  | Statement Regarding Computation of Per-Share Earnings                                                                         
|Exhibit 18    |  | Letter Regarding Change in Accounting Principles                                                                              
|Exhibit 21    |  | Subsidiaries of the Registrant                                                                                                
|Exhibit 23    |  | Consent of Experts and Counsel                                                                                                
|Exhibit 31.1  |  | Certification pursuant to Section 302 of the Sarbanes-Oxley
    Act                                                           
|Exhibit 31.2  |  | Certification pursuant to Section 302 of the Sarbanes-Oxley
    Act                                                           
|Exhibit 32    |  | Certification pursuant to 18 U.S.C. Section 1350, as
    adopted pursuant to Section 906 of the Sarbanes-Oxley Act
    of 2002

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##### Table of Contents



MILACRON INC. AND SUBSIDIARIES





SCHEDULE II  VALUATION AND QUALIFYING
ACCOUNTS AND RESERVES


Years ended 2004, 2003 and 2002


|                |                                          |                |   |           |            |  |   |          |  |  |              |         |     |           |        |         |      |  |   |        | 
|--------------- | ---------------------------------------- | -------------- | - | --------- | ---------- |  | - | -------- |  |  | ------------ | ------- | --- | --------- | ------ | ------- | ---- |  | - | ------ | 
|Col. A          |                                          | Col. B         |   |           | Col. C     |  |   | Col. D   |  |  | Col. E       |        
|                |                                          |                |   |           |            |  |   |          |  |  |              |        
|                |                                          |                |   | Additions |            |  |   |          | 
|                |                                          |                |   |           |            |  |   |          | 
|                |                                          | Balance at     |   |           | Charged to |  |   |          |  |  |              | Balance |    
|                |                                          | Beginning      |   |           | Cost and   |  |   | Other -  |  |  | Deductions - |         |     | at End    |       
|Description     |                                          | of Period      |   |           | Expenses   |  |   | Describe |  |  | Describe     |         |     | of Period |       
|                |                                          |                |   |           |            |  |   |          |  |  |              |         |     |           |       
|                |                                          | (In thousands) |  
|Year ended 2004 |                                          |                |   |           |            |  |   |          |  |  |              |         |     |           |        |         |      |  |   |       
|                | Allowance for doubtful accounts          |                | $ | 15,087    |            |  | $ | 1,742    |  |  | $            | 327     | (a) |           | $      | (5,096  | )(b) |  | $ | 12,060 | 
|                | Restructuring and consolidation reserves |                | $ | 6,505     |            |  | $ | 2,698    |  |  | $            | 69      | (a) |           | $      | (6,235  | )(b) |  | $ | 2,838  | 
|                |                                          |                |   |           |            |  |   |          |  |  |              |         |     |           | (199   | )(c)    |      |  |   |       
|                | Allowance for inventory obsolescence     |                | $ | 27,007    |            |  | $ | 7,393    |  |  | $            | 1,488   | (a) |           | $      | (6,180  | )(b) |  | $ | 29,708 | 
|Year ended 2003 |                                          |                |   |           |            |  |   |          |  |  |              |         |     |           |        |         |      |  |   |       
|                | Allowance for doubtful accounts          |                | $ | 12,354    |            |  | $ | 4,610    |  |  | $            | 1,261   | (a) |           | $      | (3,138  | )(b) |  | $ | 15,087 | 
|                | Restructuring and consolidation reserves |                | $ | 5,362     |            |  | $ | 9,387    |  |  | $            | 648     | (a) |           | $      | (7,206  | )(b) |  | $ | 6,505  | 
|                |                                          |                |   |           |            |  |   |          |  |  |              |         |     |           | (1,686 | )(c)    |      |  |   |       
|                | Allowance for inventory obsolescence     |                | $ | 24,169    |            |  | $ | 5,416    |  |  | $            | 2,738   | (a) |           | $      | (5,316  | )(b) |  | $ | 27,007 | 
|Year ended 2002 |                                          |                |   |           |            |  |   |          |  |  |              |         |     |           |        |         |      |  |   |       
|                | Allowance for doubtful accounts          |                | $ | 10,017    |            |  | $ | 3,939    |  |  | $            | 616     | (a) |           | $      | (2,218  | )(b) |  | $ | 12,354 | 
|                | Restructuring and consolidation reserves |                | $ | 12,365    |            |  | $ | 3,629    |  |  | $            | 519     | (a) |           | $      | (10,622 | )(b) |  | $ | 5,362  | 
|                |                                          |                |   |           |            |  |   |          |  |  |              |         |     |           | (529   | )(c)    |      |  |   |       
|                | Allowance for inventory obsolescence     |                | $ | 19,031    |            |  | $ | 6,916    |  |  | $            | 1,869   | (a) |           | $      | (3,647  | )(b) |  | $ | 24,169 | 






|    |                                                                         
|--- | ------------------------------------------------------------------------
|(a) | Represents foreign currency translation adjustments during the
    year.



|    |  |                                                                 
|--- |  | ----------------------------------------------------------------
|(b) |  | Represents amounts charged against the reserves during the year.
|   
|(c) |  | Represents reversals of excess reserves.                        

133



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##### Table of Contents






SIGNATURES






| |              
| | -------------
| | Milacron Inc.



| |     |                    
| | --- | -------------------
| | By: | /s/ Ronald D. Brown

| |                                                 
| | ------------------------------------------------
| |                                                 
| | Ronald D. Brown;                                
| | Chairman, President and Chief Executive Officer,
| | Director (Chief Executive Officer)              



| |     |                       
| | --- | ----------------------
| | By: | /s/ Robert P. Lienesch

| |                                                                                                                                       
| | --------------------------------------------------------------------------------------------------------------------------------------
| |                                                                                                                                       
| | Robert P. Lienesch;                                                                                                                   
| | Senior Vice President  Finance, Controller and
    Chief Financial Officer (Chief Financial Officer and Chief
    Accounting Officer)





|                                                                                                                                                                                                                                                                                                                                                                       |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                                                                                                                                                                                                                                                                                                                                                                      
|/s/ Darryl F. AllenDarryl
    F. Allen; March 30, 2005(Director)/s/ David L.
    BurnerDavid
    L. Burner; March 30, 2005(Director)/s/ Steven N.
    IsaacsSteven
    N. Isaacs; March 30, 2005(Director)/s/ Dr. Joseph A.
    StegerDr. Joseph
    A. Steger; March 30, 2005(Director)/s/ Charles F. C.
    TurnerCharles
    F. C. Turner; March 30, 2005(Director) |  | /s/ Sallie B. Bailey-----------------------------------
    Sallie B. Bailey; March 30, 2005(Director)/s/ Barbara Hackman
    Franklin-----------------------------------
    Barbara Hackman Franklin; March 30, 2005(Director)/s/ Mark L. Segal-----------------------------------
    Mark L. Segal; March 30, 2005(Director)/s/ Duane K.
    Stullich-----------------------------------
    Duane K. Stullich; March 30, 2005(Director)/s/ Larry D. Yost-----------------------------------
    Larry D. Yost; March 30, 2005(Director)

134