----

----

----

|                                   |   | 2009   |    |   | 2008   |   |    | 2007   |   |   | 2006    |   |   | 2005   |    |
|----------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|---------|
| Net      sales                         |   | $      | 132,195 |   |   | $      | 153,886 |   |   | $      | 146,770 |   |   | $      | 154,213 |   |   | $ | 141,320 |   |
|                                   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Net      income                        |   | $      | 4,685   |   |   | $      | 10,233  |   |   | $      | 15,110  |   |   | $      | 13,211  |   |   | $ | 9,722 |   |
|                                   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Net      income per share              |   |   | $1.18   |   |   |   | $2.54   |   |   |   | $3.78   |   |   |   | $3.28   |   |   |   | $2.40 |   |
|                                   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Total      assets                      |   | $      | 176,998 |   |   | $      | 174,765 |   |   | $      | 167,488 |   |   | $      | 162,504 |   |   | $ | 144,055 |   |
|                                   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Long‑term      debt obligations  |   | $      | 14,829  |   |   | $      | 17,752  |   |   | $      | 20,206  |   |   | $      | 22,083  |   |   | $ | 24,087 |   |
|                                   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Cash      dividends declared per share |   |   | $0.92   |   |   |   | $0.92   |   |   |   | $0.88   |   |   |   | $0.84   |   |   |   | $0.80 |   |
|                                   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Stockholders'      equity per share    |   |   | $25.65  |   |   |   | $24.98  |   |   |   | $24.92  |   |   |   | $22.84  |   |   |   | $22.27 |   |

----

----

|                                                                                                                        | Total    Sales |
|-----------------------------------------------------------------------------------------------------------------------------|-------------------------------|
|                                                                                                                        | December      31,             |
|                                                                                                                        | 2009                          |   | 2008 |   | 2007 |
| Cement      Business                                                                                                   | 42.1%                         |   | 45.3% |   | 46.1% |
| Ready-Mixed      Concrete      Business               | 57.9%                         |   | 54.7% |   | 53.9% |
|                                                                                                                        | 100.0%                        |   | 100.0% |   | 100.0% |

----

-    general economic and business  conditions;   
-    competition; 
-    raw material and other operating costs; 
-    costs of capital equipment; 
-    changes in business strategy or expansion  plans;  
-    demand for our Company's products; 
-    cyclical and seasonal nature of our business; 
-    the effect of weather on our business; 
-    the effect of environmental and other government  regulations;  
-    the availability of credit at reasonable prices;  and 
-    the effect of federal and state funding on demand for our  products.

|                                                                                                                                                                                                                                 |   | CementBusiness |       |   | Ready‑Mixed      ConcreteBusiness |   |       | Consolidated |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|------------|--------|-----------------------------------------|--------|------------|--------------|--------|
| For      the Year Ended December 31, 2009                                                                                                                                                                                            |   |           |       |   |                                    |   |       |         |   |
|                                 Sales      to unaffiliated customers |   | $              | 55,687,700 |   |                                    | $      | 76,506,842 |         |   | $ | 132,194,542 |   |
|                                 Income      (loss) from operations   |   |           | 7,019,307  |   |                                    |   | (2,070,723 | )            |   |   | 4,948,584 |   |
|                                                                                                                                                                                                                                 |   |           |       |   |                                    |   |       |         |   |   |   |   |
| For      the Year Ended December 31, 2008                                                                                                                                                                                            |   |           |       |   |                                    |   |       |         |   |   |   |   |
|                                 Sales      to unaffiliated customers |   | $              | 69,683,762 |   |                                    | $      | 84,202,711 |         |   | $ | 153,886,473 |   |
|                                 Income      (loss) from operations   |   |           | 18,362,170 |   |                                    |   | (1,607,168 | )            |   |   | 16,755,002 |   |
|                                                                                                                                                                                                                                 |   |           |       |   |                                    |   |       |         |   |   |   |   |
| For      the Year Ended December 31, 2007                                                                                                                                                                                            |   |           |       |   |                                    |   |       |         |   |   |   |   |
|                                Sales      to unaffiliated customers       |   | $              | 67,693,603 |   |                                    | $      | 79,075,956 |         |   | $ | 146,769,559 |   |
|                                Income      (loss) from operations         |   |           | 19,226,467 |   |                                    |   | (207,527   | )            |   |   | 19,018,940 |   |

----

----

----

----

|                            |   | 2010    |      |   | 2011   |    |                                        | 2012   |   |    | 2013                                        |   |   | 2014    |                                        |   | Thereafter |    |
|---------------------------------|--------|---------|-----------|--------|--------|---------|---------------------------------------------|--------|--------|---------|---------------------------------------------|--------|--------|---------|---------------------------------------------|--------|------------|---------|
| Long-term      debt        |   |  $ | 2,732,490 |   |   |  $ | 2,945,138                                   |   |   |  $ | 3,017,599                                   |   |   |  $ | 3,015,188                                   |   |       |  $ | 3,108,059 |   |   |  $ | 10,851 |   |
| Interest      payments          |   |    | 472,029   |   |   |    | 367,865                                     |   |   |    | 265,243                                     |   |   |    | 164,517                                     |   |       |    | 63,928 |   |   |   | -            |   |
| Pension                         |   |    | 2,335,000 |   |   |    | -        |   |   |    | -        |   |   |    | -        |   |       |    | -        |   |   |   | -       |   |
| Postretirement                  |   |    |      |   |   |    |                                        |   |   |    |                                        |   |   |    |                                        |   |       |    |   |   |   |   |   |   |
|        benefit obligations |   |    | 1,746,846 |   |   |    | 1,889,022                                   |   |   |    | 1,997,872                                   |   |   |    | 2,089,862                                   |   |       |    | 2,162,941 |   |   |   | 11,903,743 |   |
| Open      purchase orders       |   |    | 4,623,930 |   |   |    | 3,521,757                                   |   |   |    | 2,596,378                                   |   |   |    | -             |   |       |    | -             |   |   |   | -       |   |

----

----

----

 

----

----

----

----

|    |                                                                                                |        | 2009            |            | 2008     |
|---------|------------------------------------------------------------------------------------------------|--------|-----------------|------------|----------|
|    |                                                                                                |        | Price           | Dividends  |          | Price | Dividends |
|    | Quarter                                                                                        |   | Low        | High  | Declared |   | Low  | High  | Declared |
|    | First                                                                                          |   | $20.25          | $27.23     |     | $  -   |   | $28.50 | $30.50 |   | $  -   |   |
|    | Second                                                                                         |   | $23.00          | $30.75     |     | $.23 |   | $27.11 | $29.75 |   | $.23 |   |
|    | Third                                                                                          |   | $30.51          | $31.50     |     | $ 23 |   | $26.25 | $29.50 |   | $.23 |   |
|    | Fourth                                                                                         |        | $30.24          | $33.00     |          | $.46 | * | $20.35 | $30.26 |  | $.46 | * |
|    |                                                                                           |
|  * | Reflects declaration of two $0.23 dividends      payable in the first quarter of 2010 and2009. |

----

|   |                              |   |   |   |   |   |   |   |   |
|--------|-----------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|
|   |                              |   | 12/04  |   | 12/05  |   | 12/06  |   | 12/07  |   | 12/08 |   |   | 12/09 |   |
|   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Monarch      Cement Company (The) |   | 100.00 |   | 107.45 |   | 156.45 |   | 147.42 |   | 141.02 |   |   | 158.42 |   |
|   | S&P      500                  |   | 100.00 |   | 104.91 |   | 121.48 |   | 128.16 |   | 80.74 |   |   | 102.11 |   |
|   | Peer      Group                   |   | 100.00 |   | 126.98 |   | 174.27 |   | 172.26 |   | 73.79 |   |   | 94.19 |   |

----

----

----

----

----

| The Monarch Cement Company and Subsidiaries |   |
|---------------------------------------------|--------|
| ConsolidatedBalanceSheets                   |   |
| December31,      2009 and 2008         |   |

|                                                                                                                                                                              |   |         |                                  |   |         |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|---------------------------------------|--------|--------------|--------|
| ASSETS                                                                                                                                                                            |   | 2 0 0      9 |                                  |   | 2 0 0      8 |   |
| Current      Assets:                                                                                                                                                              |   |         |                                  |   |         |   |
| Cash and cash      equivalents                                                                                                                                                    |   | $            | 2,149,397                             |   |         | $      | 3,111,509 |   |
| Short-term      investments, at cost which approximates fair value                                                                                                                |   |         | -       |   |         |   | 2,100,000 |   |
| Receivables,      less allowances of $911,000 in 2009 and                                                                                                                         |   |         |                                  |   |         |   |   |   |
| $788,000 in      2008 for doubtful accounts                                                                                                                                       |   |         | 12,558,856                            |   |         |   | 15,499,638 |   |
| Inventories,      priced at cost which is not in excess of market-                                                                                                                |   |         |                                  |   |         |   |   |   |
| Finished      cement                                                                                                                                                              |   | $            | 5,345,468                             |   |         | $      | 4,507,180 |   |
| Work in      process                                                                                                                                                              |   |         | 2,050,200                             |   |         |   | 1,681,765 |   |
| Building      products                                                                                                                                                            |   |         | 5,225,431                             |   |         |   | 5,069,230 |   |
| Fuel, gypsum,      paper sacks and other                                                                                                                                          |   |         | 7,625,573                             |   |         |   | 6,312,135 |   |
| Operating and      maintenance supplies                                                                                                                                           |   |         | 11,538,788                            |   |         |   | 10,943,746 |   |
|             Total      inventories                                                                                    |   | $            | 31,785,460                            |   |         | $      | 28,514,056 |   |
| Refundable      federal and state income taxes                                                                                                                                    |   |         | 310,795                               |   |         |   | 27,102 |   |
| Deferred      income taxes                                                                                                                                                        |   |         | 775,000                               |   |         |   | 710,000 |   |
| Prepaid      expenses                                                                                                                                                             |   |         | 324,844                               |   |         |   | 508,324 |   |
|                   Total      current assets                                             |   | $            | 47,904,352                            |   |         | $      | 50,470,629 |   |
| Property,      Plant and Equipment, at cost, less accumulated      depreciation                                                                                                   |   |         |                                  |   |         |   |   |   |
| and depletion      of $162,880,507 in 2009 and $151,055,752 in 2008                                                                                                               |   |         | 90,817,394                            |   |         |   | 90,803,872 |   |
| Deferred      Income Taxes                                                                                                                                                        |   |         | 19,093,778                            |   |         |   | 19,473,540 |   |
| Investments                                                                                                                                                                       |   |         | 18,419,208                            |   |         |   | 12,740,244 |   |
| Other      Assets                                                                                                                                                                 |   |         | 762,945                               |   |         |   | 1,276,364 |   |
|                                                                                                                                                                              |   | $            | 176,997,677                           |   |         | $      | 174,764,649 |   |
| LIABILITIES      AND EQUITY                                                                                                                                                       |   |         |                                  |   |         |   |   |   |
| Current      Liabilities:                                                                                                                                                         |   |         |                                  |   |         |   |   |   |
| Accounts      payable                                                                                                                                                             |   | $            | 5,083,300                             |   |         | $      | 6,308,873 |   |
| Line of      credit payable                                                                                                                                                       |   |         | 511,944                               |   |         |   | -       |   |
| Current      portion of term loan                                                                                                                                                 |   |         | 2,732,490                             |   |         |   | 2,643,913 |   |
| Accrued      liabilities-                                                                                                                                                         |   |         |                                  |   |         |   |   |   |
| Dividends                                                                                                                                                                         |   |         | 1,851,131                             |   |         |   | 1,851,131 |   |
|       Compensation      and benefits                                                                                                                |   |         | 3,064,633                             |   |         |   | 2,895,841 |   |
|       Miscellaneous      taxes                                                                                                                      |   |         | 777,349                               |   |         |   | 845,830 |   |
|       Other                                                                                                                                         |   |         | 5,207,483                             |   |         |   | 2,960,892 |   |
|                   Total      current liabilities                                        |   | $            | 19,228,330                            |   |         | $      | 17,506,480 |   |
| Long-Term      Debt                                                                                                                                                               |   |         | 12,096,835                            |   |         |   | 15,108,016 |   |
| Accrued      Postretirement Benefits                                                                                                                                              |   |         | 30,206,610                            |   |         |   | 26,210,409 |   |
| Accrued      Pension Expense                                                                                                                                                      |   |         | 12,250,038                            |   |         |   | 14,720,952 |   |
| Equity:                                                                                                                                                                           |   |         |                                  |   |         |   |   |   |
|   Company      Stockholders' Equity:                                                                                                                                    |   |         |                                  |   |         |   |   |   |
|       Capital      Stock, par value      $2.50 per share, one vote per share ‑                                                                |   |         |                                  |   |         |   |   |   |
| Authorized      10,000,000 shares, Issued 2,532,463 shares at                                                                                                                     |   |         |                                  |   |         |   |   |   |
|     December 31,      2009 and 2,518,658 shares at December 31, 2008                                                                                          |   | $            | 6,331,158                             |   |         | $      | 6,296,645 |   |
|       Class      B Capital Stock, par value $2.50 per share, ten      votes per                                                                     |   |         |                                  |   |         |   |   |   |
|     share -      Authorized 10,000,000 shares, Issued 1,491,735 shares      at                                                                                |   |         |                                  |   |         |   |   |   |
|     December 31,      2009 and 1,505,540 shares at December 31, 2008                                                                                          |   |         | 3,729,337                             |   |         |   | 3,763,850 |   |
|       Retained      earnings                                                                                                                        |   |         | 105,989,712                           |   |         |   | 104,958,556 |   |
| Accumulated      other comprehensive loss                                                                                                                                         |   |         | (12,834,343                           | )      |         |   | (14,509,123 | ) |
|                        Total      Company Stockholders' Equity |   | $            | 103,215,864                           |   |         | $      | 100,509,928 |   |
|   Noncontrolling      Interest                                                                                                                                          |   |         | -       |   |         |   | 708,864 |   |
|                   Total      equity                                                     |   | $            | 103,215,864                           |   |         | $      | 101,218,792 |   |
|                                                                                                                                                                              |   | $            | 176,997,677                           |   |         | $      | 174,764,649 |   |
| See notes to consolidated      financial statements                                                                                                                               |   |         |                                  |   |         |   |   |   |

----

| THE MONARCH CEMENT COMPANY AND SUBSIDIARIES                                                                                                                                                                                                                                                                                                                              |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ConsolidatedStatements of Income                                                                                                                                                                                                                                                                                                                                    |
| For the YearsEndedDecember31,      2009, 2008 and 2007                                                    |

|                                                                                          |   |         |        |   |         |   |                                  |         |   |
|-----------------------------------------------------------------------------------------------|--------|--------------|-------------|--------|--------------|--------|---------------------------------------|--------------|--------|
|                                                                                          |   | 2 0 0      9 |        |   | 2 0 0      8 |   |                                  | 2 0 0      7 |   |
| NET      SALES                                                                                |   | $            | 132,194,542 |   |         | $      | 153,886,473                           |         |   | $ | 146,769,559 |   |
|                                                                                          |   |         |        |   |         |   |                                  |         |   |   |   |   |
| COST OF      SALES                                                                            |   |         | 110,646,807 |   |         |   | 120,887,764                           |         |   |   | 112,637,185 |   |
|           Gross      profit from operations |   | $            | 21,547,735  |   |         | $      | 32,998,709                            |         |   | $ | 34,132,374 |   |
|                                                                                          |   |         |        |   |         |   |                                  |         |   |   |   |   |
| SELLING,      GENERAL AND                                                                     |   |         |        |   |         |   |                                  |         |   |   |   |   |
|    ADMINISTRATIVE      EXPENSES                                                |   |         | 16,599,151  |   |         |   | 16,243,707                            |         |   |   | 15,113,434 |   |
|           Income      from operations       |   | $            | 4,948,584   |   |         | $      | 16,755,002                            |         |   | $ | 19,018,940 |   |
|                                                                                          |   |         |        |   |         |   |                                  |         |   |   |   |   |
| OTHER INCOME      (EXPENSE)                                                                   |   |         |        |   |         |   |                                  |         |   |   |   |   |
|    Interest      income                                                        |   | $            | 74,624      |   |         | $      | 175,895                               |         |   | $ | 184,541 |   |
|    Interest      expense                                                       |   |         | (631,600    | )      |         |   | (917,218                              | )            |   |   | (1,808,881 | ) |
|    Loss      on impairment of equity investments                               |   |         | (524,188    | )      |         |   | (4,157,612                            | )            |   |   | -       |   |
|    Gain      on sale of equity investments                                     |   |         | 136,853     |   |         |   | -       |         |   |   | 2,486,100 |   |
|    Dividend      income                                                        |   |         | 186,752     |   |         |   | 267,435                               |         |   |   | 231,940 |   |
|    Other,      net                                                             |   |         | 1,193,594   |   |         |   | 834,205                               |         |   |   | 947,429 |   |
|                                                                                          |   | $            | 436,035     |   |         | $      | (3,797,295                            | )            |   | $ | 2,041,129 |   |
| INCOME      BEFORE PROVISION FOR INCOME TAXES                                                 |   | $            | 5,384,619   |   |         | $      | 12,957,707                            |         |   | $ | 21,060,069 |   |
| PROVISION FOR      INCOME TAXES                                                               |   |         | 700,000     |   |         |   | 2,725,000                             |         |   |   | 5,950,000 |   |
| NET      INCOME                                                                               |   | $            | 4,684,619   |   |         | $      | 10,232,707                            |         |   | $ | 15,110,069 |   |
| Less: Net      Loss attributable to noncontrolling interest                                   |   |         | (48,799     | )      |         |   | (174                                  | )            |   |   | (124,338 | ) |
| NET      INCOME ATTRIBUTABLE TO COMPANY                                                       |   | $            | 4,733,418   |   |         | $      | 10,232,881                            |         |   | $ | 15,234,407 |   |
| Basic      earnings per share                                                                 |   |         | $1.18       |   |         |   | $2.54                                 |         |   |   | $3.78 |   |
|                                                                                          |   |         |        |   |         |   |                                  |         |   |   |   |   |
|                                                                                          |   |
| Consolidated      Statements of Comprehensive Income                                     |   |
| For      the Years Ended December31,      2009, 2008 and 2007                            |   |
|                                                                                          |   |         | 2 0 0    9  |   |         |   | 2 0 0    8                            |         |   |   | 2 0 0    7 |   |
| NET      INCOME                                                                               |   | $            | 4,684,619   |   |         | $      | 10,232,707                            |         |   | $ | 15,110,069 |   |
|                                                                                          |   |         |        |   |         |   |                                  |         |   |   |   |   |
| UNREALIZED      APPRECIATION (DEPRECIATION) ON                                                |   |         |        |   |         |   |                                  |         |   |   |   |   |
|    AVAILABLE      FOR SALE SECURITIES (Net of      deferred                    |   |         |        |   |         |   |                                  |         |   |   |   |   |
| tax (benefit)      expense of $816,000, $(3,040,000) and $(384,000)                           |   |         |        |   |         |   |                                  |         |   |
|    for 2009, 2008 and 2007,      respectively)                                 |   |         | 1,226,665   |   |         |   | (4,557,612                            | )            |   |   | (579,900 | ) |
|                                                                                          |   |         |        |   |         |   |                                  |         |   |   |   |   |
| RECLASSIFICATION      ADJUSTMENT FOR                                                          |   |         |        |   |         |   |                                  |         |   |   |   |   |
| REALIZED      (GAINS) LOSSES INCLUDED IN                                                      |   |         |        |   |         |   |                                  |         |   |   |   |   |
|         NET INCOME (Net of      deferred tax (benefit) expense of$(156,000),        |   |         |        |   |         |   |                                  |         |   |
|    $(1,664,000), and $996,000 for      2009, 2008 and 2007, respectively)      |   |         | 231,335     |   |         |   | 2,493,612                             |         |   |   | (1,490,100 | ) |
|                                                                                          |   |         |        |   |         |   |                                  |         |   |
| MINIMUM      PENSION LIABILITY (Net of deferred tax (benefit)      expense                    |   |         |        |   |         |   |                                  |         |   |
| of $1,070,000,      $(3,800,000) and      $(805,000) for 2009, 2008 and 2007,            |   |         |        |   |         |   |                                  |         |   |
|    respectively)                                                               |   |         | 1,616,189   |   |         |   | (5,705,931                            | )            |   |   | (1,199,292 | ) |
|                                                                                          |   |         |        |   |         |   |                                  |         |   |   |   |   |
| POSTRETIREMENT      LIABILITY (Net of      deferred tax (benefit)                             |   |         |        |   |         |   |                                  |         |   |   |   |   |
|    expense of $(945,000),      $975,000 and      $(20,000) for 2009, 2008 |   |         |        |   |         |   |                                  |         |   |   |   |   |
|    and 2007,      respectively)                                                |   |         | (1,399,409  | )      |         |   | 1,462,306                             |         |   |   | (23,244 | ) |
| COMPREHENSIVE      INCOME                                                                     |   | $            | 6,359,399   |   |         | $      | 3,925,082                             |         |   | $ | 11,817,533 |   |
| See      notes to consolidated financial      statements                                      |   |         |        |   |         |   |                                  |         |   |   |   |   |

----

| The Monarch Cement Company and Subsidiaries                                                                                                                                                                                                                                                                                                                                         |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ConsolidatedStatements      of Stockholders' Equity      and Noncontrolling Interests                                                                                                                                                                                                                                                                                          |
| For      the Years Ended      December 31,      2009, 2008 and 2007                                                  |

|                                                                                                                                                                                                     |   | Company      Stockholders                    |                                              |               |         |                                              |                                              |     |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------|---------------------------------------------------|--------------------|--------------|---------------------------------------------------|---------------------------------------------------|----------|--------|
|                                                                                                                                                                                                     |   |                                              |                                              |               |         |                                              |                                              |     |   |   |   |   |   | Accumu- |   |   |   |   |   |   |   |
|                                                                                                                                                                                                     |   |                                              |                                              |               | Class      B |                                              |                                              |     |   |   |   |   |   | lated      Other |   |   | Non- |   |   |   |   |
|                                                                                                                                                                                                     |   | Capital                                           |                                              |               | Capital      |                                              |                                              | Retained |   |   | Treasury |   |   | Comprehen- |   |   | Controlling |   |   |   |   |
|                                                                                                                                                                                                     |   | Stock                                             |                                              |               | Stock        |                                              |                                              | Earnings |   |   | Stock |   |   | sive Income |   |   | Interest |   |   | Total |   |
| Balance                                                                                                                                                                                                  |   |                                              |                                              |               |         |                                              |                                              |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| January      1, 2007                                                                                                                                                                                     |   | $                                                 | 6,220,713                                         |               |         | $                                                 | 3,846,682                                         |     |   | $ | 86,797,943 |   |   | $ | -              |   |   | $ | (4,908,962 | ) |   | $ | 1,023,116 |   |   | $ | 92,979,492 |   |
| Net      income                                                                                                                                                                                          |   |                                              | -              |               |         |                                              | -         |     |   |   | 15,234,407 |   |   |   | -         |   |   |   | -        |   |   |   | (124,338 | ) |   |   | 15,110,069 |   |
| Dividends      declared                                                                                                                                                                                  |   |                                              |                                              |               |         |                                              |                                              |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| ($0.88 per      share)                                                                                                                                                                                   |   |                                              | -         |               |         |                                              | -         |     |   |   | (3,543,723 | ) |   |   | -         |   |   |   | -        |   |   |   | -         |   |   |   | (3,543,723 | ) |
| Transfer of      shares                                                                                                                                                                                  |   |                                              | 56,057                                            |               |         |                                              | (56,057                                           | )        |   |   | -        |   |   |   | -         |   |   |   | -        |   |   |   | -         |   |   |   | -        |   |
| Change in      unrealized                                                                                                                                                                                |   |                                              |                                              |               |         |                                              |                                              |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|          appreciation on available-                                                                                                                                                  |   |                                              |                                              |               |         |                                              |                                              |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| for-sale      securities                                                                                                                                                                                 |   |                                              | -              |               |         |                                              | -         |     |   |   | -        |   |   |   | -              |   |   |   | (2,070,000 | ) |   |   | -         |   |   |   | (2,070,000 | ) |
| Adjustment to      recognize                                                                                                                                                                             |   |                                              |                                              |               |         |                                              |                                              |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     minimum      pension liability                                                                                                                                              |   | -         |                                              |               |         | -         |                                              |     |   | -        |   |   |   | -         |   |   |   | (1,199,292 | ) |   |   | -         |   |   |   | (1,199,292 | ) |
| Adjustment to      recognize                                                                                                                                                                             |   |                                              |                                              |               |         |                                              |                                              |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     postretirement      liability                                                                                                                                                    |   |                                              | -         |               |         |                                              | -         |     |   |   | -        |   |   |   | -         |   |   |   | (23,244 | ) |   |   | -         |   |   |   | (23,244 | ) |
| Increase      (decrease) in                                                                                                                                                                              |   |                                              |                                              |               |         |                                              |                                              |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     noncontrolling      interest                                                                                                                                                     |   |                                              | -         |               |         |                                              | -         |     |   |   | -        |   |   |   | -         |   |   |   | -        |   |   |   | (189,740 | ) |   |   | (189,740 | ) |
|                                                                                                                                                                                                     |   |                                              |                                              |               |         |                                              |                                              |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance                                                                                                                                                                                                  |   |                                              |                                              |               |         |                                              |                                              |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| December      31, 2007                                                                                                                                                                                   |   | $                                                 | 6,276,770                                         |               |         | $                                                 | 3,790,625                                         |     |   | $ | 98,488,627 |   |   | $ | -         |   |   | $ | (8,201,498 | ) |   | $ | 709,038 |   |   | $ | 101,063,562 |   |
| Net      income                                                                                                                                                                                          |   |                                              | -         |               |         |                                              | -         |     |   |   | 10,232,881 |   |   |   | -         |   |   |   | -        |   |   |   | (174 | ) |   |   | 10,232,707 |   |
| Dividends      declared                                                                                                                                                                                  |   |                                              |                                              |               |         |                                              |                                              |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     ($0.92      per share)                                                                                                                                                           |   |                                              | -         |               |         |                                              | -         |     |   |   | (3,703,531 | ) |   |   | -         |   |   |   | -        |   |   |   | -         |   |   |   | (3,703,531 | ) |
| Transfer of      shares                                                                                                                                                                                  |   |                                              | 26,775                                            |               |         |                                              | (26,775                                           | )        |   |   | -        |   |   |   | -         |   |   |   | -        |   |   |   | -         |   |   |   | -        |   |
| Purchase of      treasury stock                                                                                                                                                                          |   |                                              | -         |               |         |                                              | -         |     |   |   | -        |   |   |   | (66,321 | ) |   |   | -        |   |   |   | -         |   |   |   | (66,321 | ) |
| Retirement of      treasury stock                                                                                                                                                                        |   |                                              | (6,900                                            | )                  |         |                                              | -         |     |   |   | (59,421 | ) |   |   | 66,321 |   |   |   | -        |   |   |   | -         |   |   |   | -        |   |
| Change in      unrealized                                                                                                                                                                                |   |                                              |                                              |               |         |                                              |                                              |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     appreciation      on available-                                                                                                                                             |   |                                              |                                              |               |         |                                              |                                              |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     for-sale      securities                                                                                                                                                         |   |                                              | -         |          |         |                                              | -         |     |   |   | -        |   |   |   | -         |   |   |   | (2,064,000 | ) |   |   | -         |   |   |   | (2,064,000 | ) |
| Adjustment to      recognize                                                                                                                                                                             |   |                                              |                                              |               |         |                                              |                                              |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     minimum      pension liability                                                                                                                                              |   | -         |                                              |               |         | -         |                                              |     |   | -        |   |   |   | -         |   |   |   | (5,705,931 | ) |   |   | -         |   |   |   | (5,705,931 | ) |
| Adjustment to      recognize                                                                                                                                                                             |   |                                              |                                              |               |         |                                              |                                              |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     postretirement      liability                                                                                                                                                    |   |                                              | -         |               |         |                                              | -         |     |   |   | -        |   |   |   | -         |   |   |   | 1,462,306 |   |   |   | -         |   |   |   | 1,462,306 |   |
|                                                                                                                                                                                                     |   |                                              |                                              |               |         |                                              |                                              |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance                                                                                                                                                                                                  |   |                                              |                                              |               |         |                                              |                                              |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| December      31, 2008                                                                                                                                                                                   |   | $                                                 | 6,296,645                                         |               |         | $                                                 | 3,763,850                                         |     |   | $ | 104,958,556 |   |   | $ | -         |   |   | $ | (14,509,123 | ) |   | $ | 708,864 |   |   | $ | 101,218,792 |   |
| Net      income                                                                                                                                                                                          |   |                                              | -         |               |         |                                              | -         |     |   |   | 4,733,418 |   |   |   | -         |   |   |   | -        |   |   |   | (48,799 | ) |   |   | 4,684,619 |   |
| Dividends      declared                                                                                                                                                                                  |   |                                              |                                              |               |         |                                              |                                              |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     ($0.92      per share)                                                                                                                                                           |   |                                              | -         |               |         |                                              | -         |     |   |   | (3,702,262 | ) |   |   | -         |   |   |   | -        |   |   |   | -         |   |   |   | (3,702,262 | ) |
| Transfer of      shares                                                                                                                                                                                  |   |                                              | 34,513                                            |               |         |                                              | (34,513                                           | )        |   |   | -        |   |   |   | -         |   |   |   | -        |   |   |   | -         |   |   |   | -        |   |
| Change in      unrealized                                                                                                                                                                                |   |                                              |                                              |               |         |                                              |                                              |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     appreciation      on available-                                                                                                                                             |   |                                              |                                              |               |         |                                              |                                              |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     for-sale      securities                                                                                                                                                         |   |                                              | -         |               |         |                                              | -         |     |   |   | -        |   |   |   | -         |   |   |   | 1,458,000 |   |   |   | -         |   |   |   | 1,458,000 |   |
| Adjustment to      recognize                                                                                                                                                                             |   |                                              |                                              |               |         |                                              |                                              |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     minimum      pension liability                                                                                                                                              |   | -         |                                              |               |         | -         |                                              |     |   | -        |   |   |   | -         |   |   |   | 1,616,189 |   |   |   | -         |   |   |   | 1,616,189 |   |
| Adjustment to      recognize                                                                                                                                                                             |   |                                              |                                              |               |         |                                              |                                              |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     postretirement      liability                                                                                                                                                    |   |                                              | -         |               |         |                                              | -         |     |   |   | -        |   |   |   | -         |   |   |   | (1,399,409 | ) |   |   | -         |   |   |   | (1,399,409 | ) |
| Increase      (decrease) in                                                                                                                                                                              |   |                                              |                                              |               |         |                                              |                                              |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  noncontrolling      interest                                                                                                                                                                       |   |                                              | -         |               |         |                                              | -         |     |   |   | -        |   |   |   | -         |   |   |   | -        |   |   |   | (660,065 | ) |   |   | (660,065 | ) |
|                                                                                                                                                                                                     |   |                                              |                                              |               |         |                                              |                                              |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance                                                                                                                                                                                                  |   |                                              |                                              |               |         |                                              |                                              |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| December      31, 2009                                                                                                                                                                                   |   | $                                                 | 6,331,158                                         |               |         | $                                                 | 3,729,337                                         |     |   | $ | 105,989,712 |   |   | $ | -         |   |   | $ | (12,834,343 | ) |   | $ | -         |   |   | $ | 103,215,864 |   |
|                                                                                                                                                                                                     |   |                                              |                                              |               |         |                                              |                                              |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| See      notes to      consolidated financial statements                         |   |

----

| The Monarch Cement Company      and Subsidiaries                                                                                                                                                                                                                                                                                                                                         |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Consolidated      Statements of Cash Flows                                                                                                                                                                                                                                                                                                                                               |
| For      theYears      Ended December 31,      2009, 2008 and 2007                                                   |

|                                                                                                      |   |         |                            |   |         |   |                                  |         |   |
|-----------------------------------------------------------------------------------------------------------|--------|--------------|---------------------------------|--------|--------------|--------|---------------------------------------|--------------|--------|
|                                                                                                      |   | 2 0 0      9 |                            |   | 2 0 0      8 |   |                                  | 2 0 0      7 |   |
| OPERATING      ACTIVITIES:                                                                                |   |         |                            |   |         |   |                                  |         |   |
| Net      income                                                                                           |   | $            | 4,684,619                       |   |         | $      | 10,232,707                            |         |   | $ | 15,110,069 |   |
| Adjustments      to reconcile net income to                                                               |   |         |                            |   |         |   |                                  |         |   |   |   |   |
|    net      cash provided by operating activities:                                         |   |         |                            |   |         |   |                                  |         |   |   |   |   |
|       Depreciation,      depletion and amortization                         |   |         | 12,588,799                      |   |         |   | 12,270,723                            |         |   |   | 11,848,894 |   |
|       Deferred      income taxes                                            |   |         | (782,238                        | )      |         |   | (2,192,006                            | )            |   |   | (1,223,534 | ) |
|       Gain      on disposal of assets                                       |   |         | (69,668                         | )      |         |   | (234,940                              | )            |   |   | (574,879 | ) |
|       Realized      gain on sale of other investments                       |   |         | (136,853                        | )      |         |   | -       |         |   |   | (2,486,100 | ) |
|       Realized      loss on impairment of other investments                 |   |         | 524,188                         |   |         |   | 4,157,612                             |         |   |   | -      |   |
|       Change      in assets and liabilities:                                |   |         |                            |   |         |   |                                  |         |   |   |   |   |
|           Receivables,      net                         |   |         | 2,940,782                       |   |         |   | (1,968,417                            | )            |   |   | 1,264,260 |   |
|           Inventories                                   |   |         | (2,987,972                      | )      |         |   | (721,888                              | )            |   |   | (4,987,312 | ) |
|           Refundable      income taxes                  |   |         | (283,693                        | )      |         |   | (27,102                               | )            |   |   | 739,574 |   |
|           Prepaid      expenses                         |   |         | 183,480                         |   |         |   | (259,944                              | )            |   |   | 36,219 |   |
|           Other      assets                             |   |         | 20,447                          |   |         |   | 32,821                                |         |   |   | 58,750 |   |
|           Accounts      payable and accrued liabilities |   |         | 4,764                           |   |         |   | 2,033,813                             |         |   |   | 679,334 |   |
|           Accrued      postretirement benefits          |   |         | 1,841,792                       |   |         |   | 1,351,200                             |         |   |   | 2,090,606 |   |
|           Accrued      pension expense                  |   |         | 215,275                         |   |         |   | (633,489                              | )            |   |   | (195,995 | ) |
|       Net      cash provided by operating activities                        |   | $            | 18,743,722                      |   |         | $      | 24,041,090                            |         |   | $ | 22,359,886 |   |
|                                                                                                      |   |         |                            |   |         |   |                                  |         |   |   |   |   |
| INVESTING      ACTIVITIES:                                                                                |   |         |                            |   |         |   |                                  |         |   |   |   |   |
| Acquisition      of property, plant and equipment                                                         |   | $            | (9,830,150                      | )      |         | $      | (8,150,297                            | )            |   | $ | (9,624,187 | ) |
| Proceeds from      disposals of property, plant and equipment                                             |   |         | 130,442                         |   |         |   | 250,727                               |         |   |   | 758,634 |   |
| Payment for      acquisition of business                                                                  |   |         | (1,696,840                      | )      |         |   | (2,319,934                            | )            |   |   | -      |   |
| Payment for      purchases of equity investments                                                          |   |         | (5,225,374                      | )      |         |   | (6,869,537                            | )            |   |   | (3,819,431 | ) |
| Proceeds from      disposals of equity investments                                                        |   |         | 1,589,076                       |   |         |   | -       |         |   |   | 4,662,883 |   |
| (Increase)      decrease in short-term      investments, net                                              |   |         | 2,100,000                       |   |         |   | (2,100,000                            | )            |   |   | -      |   |
|       Net      cash used for investing activities                           |   | $            | (12,932,846                     | )      |         | $      | (19,189,041                           | )            |   | $ | (8,022,101 | ) |
|                                                                                                      |   |         |                            |   |         |   |                                  |         |   |   |   |   |
| FINANCING      ACTIVITIES:                                                                                |   |         |                            |   |         |   |                                  |         |   |   |   |   |
| Increase      (decrease) in line of credit, net                                                           |   | $            | 511,944                         |   |         | $      | -       |         |   | $ | (6,397,667 | ) |
| Payment on      bank loans                                                                                |   |         | (2,644,316                      | )      |         |   | (2,116,417                            | )            |   |   | (2,067,630 | ) |
| Payments on      other long-term debt                                                                     |   |         | (278,289                        | )      |         |   | (337,656                              | )            |   |   | (226,071 | ) |
| Cash      dividends paid                                                                                  |   |         | (3,702,262                      | )      |         |   | (3,624,262                            | )            |   |   | (3,463,183 | ) |
| Purchases of      noncontrolling interests                                                                |   |         | (660,065                        | )      |         |   | -       |         |   |   | (189,741 | ) |
| Purchase of      treasury stock                                                                           |   |         | -      |   |         |   | (66,321                               | )            |   |   | -      |   |
|       Net      cash used for financing activities                           |   | $            | (6,772,988                      | )      |         | $      | (6,144,656                            | )            |   | $ | (12,344,292 | ) |
|                                                                                                      |   |         |                            |   |         |   |                                  |         |   |   |   |   |
| Net      increase (decrease) in cash and cash equivalents                                                 |   | $            | (962,112                        | )      |         | $      | (1,292,607                            | )            |   | $ | 1,993,493 |   |
| Cash      and Cash Equivalents, beginning of year                                                         |   |         | 3,111,509                       |   |         |   | 4,404,116                             |         |   |   | 2,410,623 |   |
| Cash      and Cash Equivalents, end of year                                                               |   | $            | 2,149,397                       |   |         | $      | 3,111,509                             |         |   | $ | 4,404,116 |   |
|                                                                                                      |   |         |                            |   |         |   |                                  |         |   |   |   |   |
| Additional      Cash Flow Information:                                                                    |   |         |                            |   |         |   |                                  |         |   |   |   |   |
| Interest      paid, net of amount capitalized                                                             |   | $            | 635,939                         |   |         | $      | 939,179                               |         |   | $ | 1,812,743 |   |
| Income taxes      paid, net of refunds                                                                    |   | $            | 1,764,563                       |   |         | $      | 5,500,016                             |         |   | $ | 5,868,647 |   |
| Capital      equipment additions included in accounts payable                                             |   | $            | 748,479                         |   |         | $      | 221,914                               |         |   | $ | 546,085 |   |
| Acquisition      of business included in accrued liabilities                                              |   | $            | 400,000                         |   |         | $      | -       |         |   | $ | -      |   |
|                                                                                                      |   |         |                            |   |         |   |                                  |         |   |   |   |   |
| See      notes to consolidated financial statements                                                       |   |         |                            |   |         |   |                                  |         |   |   |   |   |

----

| The Monarch Cement Company      and SubsidiariesNotes      to Consolidated Financial StatementsDecember 31, 2009, 2008 and2007 |
|--------------------------------------------------------------------------------------------------------------------------------|

----

| The      Monarch Cement Company      and SubsidiariesNotes      to Consolidated Financial StatementsDecember 31, 2009, 2008 and2007 |
|-------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

----

----

----

----

----

|                                   |   |    |       |   | Fair Value      Measurements at Reporting Date Using:             |   |
|----------------------------------------|--------|---------|------------|--------|-------------------------------------------------------------------|--------|
| 2009                                   |   | Balance |       |   | Quoted Pricesin Active  Markets forIdentical Assets(Level 1) |   |   | SignificantOther  ObservableInputs        (Level 2) |   |   | Significant  UnobservableInput  (Level      3) |   |
| Assets:                                |   |    |       |   |                                                              |   |   |   |   |   |   |   |
| Marketable      equity securities |   | $       | 16,432,808 |   |                                                              | $      | 16,432,808 |   |   | $ | -            |   |   | $ | -             |   |
| Total                                  |   | $       | 16,432,808 |   |                                                              | $      | 16,432,808 |   |   | $ | -            |   |   | $ | -             |   |
|                                   |   |    |       |   |                                                              |   |   |   |   |   |   |   |   |   |   |   |
|  2008                             |   |    |       |   |                                                              |   |   |   |   |   |   |   |   |   |   |   |
| Assets:                 |   |    |       |   |                                                              |   |   |   |   |   |    |   |   |   |   |   |
| Marketable      equity securities      |   | $       | 10,939,044 |   |                                                              | $      | 10,939,044 |   |   | $ | -                 |   |   | $ | -             |   |
| Total                                  |   | $       | 10,939,044 |   |                                                              | $      | 10,939,044 |   |   | $ | -                 |   |   | $ | -                  |   |
|                                   |   |    |       |   |                                                              |   |   |   |   |   |   |   |   |   |   |   |

----

----

|                              |   | Less than 12      Months       |      |   | 12 Months or      Greater |    |    | Total           |   |
|-----------------------------------|--------|--------------------------------|-----------|--------|---------------------------|---------|---------|-----------------|--------|
| 2009                         |   | Fair      Value                |      |   | UnrealizedLosses          |    |    | Fair      Value |   |   | UnrealizedLosses |   |   | Fair      Value |   |   | UnrealizedLosses |   |
| Marketable      equity securities |   | $                              | 1,348,348 |   |                      | $       | 150,242 |            |   | $ | 105,300 |   |   | $ | 12,724 |   |   | $ | 1,453,648 |   |   | $ | 162,966 |   |
| Total                             |   | $                              | 1,348,348 |   |                      | $       | 150,242 |            |   | $ | 105,300 |   |   | $ | 12,724 |   |   | $ | 1,453,648 |   |   | $ | 162,966 |   |
|                              |   |                           |      |   |                      |    |    |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                              |   |                           |      |   |                      |    |    |            |   |   |   |   |   |   |   |   |   |   |
|                              |   | Less than 12      Months  |      |   | 12 Months or      Greater |    |    | Total      |   |
|  2008                        |   | Fair      Value                |      |   | UnrealizedLosses          |    |    | Fair      Value |   |   | UnrealizedLosses |   |   | Fair      Value |   |   | UnrealizedLosses |   |
| Marketable      equity securities |   | $                         | 816,872   |   |                      | $  | 157,786 |            |   | $  | -                 |   |   | $  | -           |   |   | $  | 816,872 |   |   | $  |  157,786 |   |
| Total                             |   | $                         | 816,872   |   |                      | $  | 157,786 |            |   | $  | -                 |   |   | $  | -           |   |   | $  |  816,872 |   |   | $  |  157,786 |   |

----

----

|                                                     |   | 2009   |       |   | 2008   |   |                                  | 2007   |   |
|----------------------------------------------------------|--------|--------|------------|--------|--------|--------|---------------------------------------|--------|--------|
| Fair      value of investments                           |   | $      | 18,419,208 |   |   | $      | 12,740,244                            |   |   | $ | 13,468,319 |   |
| Cost      of investments                                 |   |   | 14,009,208 |   |   |   | 10,760,244                            |   |   |   | 8,048,319 |   |
|    Net      unrealized gains              |   | $      | 4,410,000  |   |   | $      | 1,980,000                             |   |   | $ | 5,420,000 |   |
|                                                     |   |   |       |   |   |   |                                  |   |   |   |   |   |
| Unrealized      gain (loss) recorded in equity           |   |   |       |   |   |   |                                  |   |   |   |   |   |
|    Investments      carried at fair value |   | $      | 2,646,000  |   |   | $      | 1,188,000                             |   |   | $ | 3,252,000 |   |
|    Deferred      income taxes             |   |   | 1,764,000  |   |   |   | 792,000                               |   |   |   | 2,168,000 |   |
|                                                     |   | $      | 4,410,000  |   |   | $      | 1,980,000                             |   |   | $ | 5,420,000 |   |
|                                                     |   |   |       |   |   |   |                                  |   |   |   |   |   |
| Proceeds      from sale of securities                    |   | $      | 1,589,076  |   |   | $      | -       |   |   | $ | 4,662,883 |   |
| Realized      gains                                      |   | $      | 136,853    |   |   | $      | -       |   |   | $ | 2,486,100 |   |
| Realized      losses due to other-than-                  |   |   |       |   |   |   |                                  |   |   |   |   |   |
|    temporary      impairment of assets    |   | $      | (524,188   | )      |   | $      | (4,157,612                            | )      |   | $ | -        |   |

----

----

|                                              |   | Lives      (Years)          |   |   | 2009   |        |   | 2008   |   |
|---------------------------------------------------|--------|-----------------------------|--------|--------|--------|-------------|--------|--------|--------|
| Quarry      land                                  |   |                        |   |   | $      | 2,004,549   |   |   | $      | 2,004,549 |   |
| Other      land                                   |   |                        |   |   |   | 7,755,444   |   |   |   | 7,590,672 |   |
| Buildings      and improvements                   |   | 15      - 39                |   |   |   | 30,451,877  |   |   |   | 29,623,898 |   |
| Cement      manufacturing equipment               |   | 15 -      25           |   |   |   | 122,293,513 |   |   |   | 117,160,400 |   |
| Ancillary      equipment                          |   |  5 -      10      |   |   |   | 12,791,566  |   |   |   | 12,415,809 |   |
| Ready-mix      and concrete production            |   |                        |   |   |   |        |   |   |   |   |   |
|    machinery      and equipment    |   |  5      - 15           |   |   |   | 31,849,800  |   |   |   | 28,294,117 |   |
| Transportation      and mobile equipment          |   |  3      -  7 |   |   |   | 40,330,336  |   |   |   | 38,895,515 |   |
| Office      machinery, equipment,                 |   |                        |   |   |   |        |   |   |   |   |   |
|    furniture      and fixtures     |   |  3      - 10           |   |   |   | 2,199,862   |   |   |   | 2,139,774 |   |
| Construction      in process                      |   |                        |   |   |   | 4,020,954   |   |   |   | 3,734,890 |   |
|                                              |   |                        |   |   | $      | 253,697,901 |   |   | $      | 241,859,624 |   |
| Less--Accumulated      depreciation and depletion |   |                        |   |   |   | 162,880,507 |   |   |   | 151,055,752 |   |
|                                              |   |                        |   |   | $      | 90,817,394  |   |   | $      | 90,803,872 |   |

----

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |        | 2009                          |        | 2008                          |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------|--------|-------------------------------|
| Note payable,      bank (a)                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | $        14,597,231 |   | $        17,241,547 |
| Other                                                                                                                                                                                                                                                                                                                                                                                                                                                              |        | 232,094                       |        | 510,382                       |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | $   14,829,325 |   | $        17,751,929 |
| Less current      maturities                                                                                                                                                                                                                                                                                                                                                                                                                                       |        |  2,732,490               |        |  2,643,913               |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | $        12,096,835 |   | $        15,108,016 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| (a)  Due      December 31, 2014; payable $794,926 quarterly including      interest;            interest computed based on lender's national prime rate less 0.75% with      a            3.00% interest rate minimum or floor subject to a financial covenant      related            to net worth which the Company was in compliance with at year      end. |

**2010 $      2,732,4902011  2,945,1382012  3,017,5992013  3,015,1882014  3,108,059Thereafter          10,851  $    14,829,325**

|                                                                    |   | 2009   |      |   | 2008   |   |       | 2007   |   |
|-------------------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|------------|--------|--------|
| Taxes      currently payable                                            |   | $      | 1,482,000 |   |   | $      | 4,917,000  |   |   | $ | 7,174,000 |   |
| Deferred      income taxes                                              |   |   | (782,000  | )      |   |   | (2,192,000 | )      |   |   | (1,224,000 | ) |
|         Income      tax expense |   | $      | 700,000   |   |   | $      | 2,725,000  |   |   | $ | 5,950,000 |   |

|                                          |   | 2009   |                                        |   | 2008   |   |                                  | 2007   |   |
|-----------------------------------------------|--------|--------|---------------------------------------------|--------|--------|--------|---------------------------------------|--------|--------|
| Computed      at statutory rate               |   |   |                                        |   |   |   |                                  |   |   |
| (34%;      over $10 million-35%)              |   | $      | 1,831,000                                   |   |   | $      | 4,435,000                             |   |   | $ | 7,315,000 |   |
| Increase      (decrease) resulting from:      |   |   |                                        |   |   |   |                                  |   |   |   |   |   |
| State      income taxes, net of federal       |   |   |                                        |   |   |   |                                  |   |   |   |   |   |
| tax      benefit (expense)                    |   |   | (40,000                                     | )      |   |   | -       |   |   |   | 360,000 |   |
| Percentage      depletion                     |   |   | (675,000                                    | )      |   |   | (1,328,000                            | )      |   |   | (1,280,000 | ) |
| Valuation      allowance                      |   |   | (110,000                                    | )      |   |   | (40,000                               | )      |   |   | -        |   |
| Domestic      production activities deduction |   |   | (91,000                                     | )      |   |   | (284,000                              | )      |   |   | (375,000 | ) |
| Minority      interest in consolidated loss   |   |   | -        |   |   |   | -       |   |   |   | (42,000 | ) |
| Life      insurance proceeds                  |   |   | (146,000                                    | )      |   |   | -       |   |   |   | -        |   |
| Other                                         |   |   | (69,000                                     | )      |   |   | (58,000                               | )      |   |   | (28,000 | ) |
| Provision      for income taxes               |   | $      | 700,000                                     |   |   | $      | 2,725,000                             |   |   | $ | 5,950,000 |   |

----

----

|                                                                  |   | 2009   |                |    | 2008   |   |
|-----------------------------------------------------------------------|--------|--------|---------------------|---------|--------|--------|
| Current:                                                              |   |   |                |    |   |   |
|         Allowance for doubtful accounts                     |   | $      | 365,000             |    |   | $      | 315,000 |   |
|         Accrued vacation                                    |   |   | 410,000             |    |   |   | 395,000 |   |
|       Net current deferred tax      assets   |   | $      | 775,000             |    |   | $      | 710,000 |   |
|                                                                       |   |   |                |    |   |   |   |   |
| Noncurrent:                                                           |   |   |                |    |   |   |   |   |
|         Depreciation                                        |   | $      |        (65,000 | )       |   | $      | (76,000 | )  |
|         Postretirement benefits                             |   |   | 12,322,000          |    |   |   | 11,109,000 |   |
|         Pension liability                                   |   |   | 4,933,000           |    |   |   | 5,891,000 |   |
|         Unrealized holding gains                            |   |   | (1,764,000          | )  |   |   | (792,000 | ) |
|         Net operating loss carryforwards                    |   |   | 1,433,000           |    |   |   | 1,147,000 |   |
|         Alternative minimum tax credit                      |   |   | 200,000             |    |   |   | -       |   |
|         Impairment on investments                           |   |   | 1,399,775           |    |   |   | 1,663,045 |   |
|         Other, net                                          |   |   | 635,003             |    |   |   | 531,495 |   |
|       Net long-term deferred tax      assets |   | $      | 19,093,778          |    |   | $      | 19,473,540 |   |

|    ExpirationDate |         |         OperatingLoss |
|-----------------------------|--------------------------------------------|---------------------------------|
| 2024                        |                             | $   99,000            |
| 2025                        |                                       | 685,000                         |
| 2026                        |                                       | 380,000                         |
| 2027                        |                                       | 19,000                          |
| 2028                        |                                       | 136,000                         |
| 2029                        |                                       | 114,000                         |

----

----

|                                                           |   | 2009   |       |   | 2008   |   |
|----------------------------------------------------------------|--------|--------|------------|--------|--------|--------|
| Change in benefit      obligation                              |   |   |       |   |   |   |
|          Beginning of year                      |   | $      | 27,770,409 |   |   | $      | 28,856,515 |   |
|          Service cost                           |   |   | 523,914    |   |   |   | 473,443 |   |
|          Interest cost                          |   |   | 1,822,318  |   |   |   | 1,611,513 |   |
|          Actuarial (gain)/loss                  |   |   | 3,461,520  |   |   |   | (1,734,298 | ) |
|          Benefits and expenses paid*            |   |   | (1,352,568 | )      |   |   | (1,436,764 | ) |
|          Plan amendments                        |   |   | (268,983   | )      |   |   | -             |   |
|     Benefit      obligation at end of year |   | $      | 31,956,610 |   |   | $      | 27,770,409 |   |

| Change in fair value      of plan assets                                                                                                                                                         |   |   |                                              |   |   |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------------------------------------------------|--------|--------|--------|
|          Beginning of year                                                                                                                                                        |   | $      |  -        |   |   | $      |  -        |   |
|          Employer contributions*                                                                                                                                                  |   |   | 1,352,568                                         |   |   |   | 1,436,764 |   |
|          Benefits paid and expenses*                                                                                                                                              |   |   | (1,352,568                                        | )      |   |   | (1,436,764 | ) |
|     Fair      value of plan asset at end of year                                                                                                                             |   | $      |  -        |   |   | $      |        -        |   |
|                                                                                                                                                                                             |   |   |                                              |   |   |   |   |   |
|             *Amounts are      net of $ 76,128 and $72,165 retiree prescription drug subsidy received      during 2009 and 2008 fiscal years,    respectively. |
|                                                                                                                                                                                             |   |   |                                              |   |   |   |   |   |
| Funded status      = year-end benefit liability                                                                                                                                                  |   | $      | (31,956,610                                       | )      |   | $      | (27,770,409 | ) |

|                       |   | 2009   |        |   | 2008   |   |
|----------------------------|--------|--------|-------------|--------|--------|--------|
| Current    liability       |   | $      | (1,750,000  | )      |   | $      | (1,560,000 | ) |
| Noncurrent      liability  |   |   | (30,206,610 | )      |   |   | (26,210,409 | ) |
| Net amount      recognized |   | $      | (31,956,610 | )      |   | $      | (27,770,409 | ) |

|                                         |   | 2009 |       |   | 2008   |   |
|----------------------------------------------|--------|------|------------|--------|--------|--------|
|  Accumulated other comprehensive income |   | $    | (7,404,667 | )      |   | $      | (6,005,258 | ) |

|                                           |   | 2009   |      |   | 2008   |   |
|------------------------------------------------|--------|--------|-----------|--------|--------|--------|
| Current year actuarial (gain)/loss             |   | $      | 3,461,520 |   |   | $      | (1,734,298 | ) |
| Amortization of actuarial loss                 |   |   | (848,128  | )      |   |   | (703,008 | ) |
| Current year prior service (credit)/loss       |   |   | (268,983  | )      |   |   | -  |   |
| Total recognized in other comprehensive income |   | $      | 2,344,409 |   |   | $      |   (2,437,306 | ) |

----

----

| A.       | (Accrued) prepaid      postretirement benefit cost as of December 31, 2008 |   | $      | (17,760,151 | )      |
|----------|----------------------------------------------------------------------------|--------|--------|-------------|--------|
| B.  | 2009 net periodic      postretirement benefit cost                         |   |   | 3,194,360   |   |
| C.  | 2009    contributions                                                      |   |   | 1,428,696   |   |
| D.  | Retiree Drug      Subsidy                                                  |   |   | 76,128      |   |
| E.  | (Accrued) prepaid      postretirement benefit cost as of December 31, 2009 |   | $      | (19,601,943 | )      |
|     | (A) - (B) + (C) - (D)                                                 |   |   |        |   |

|                                                                   |   | 2009   |      |   | 2008   |   |      | 2007   |   |
|------------------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|-----------|--------|--------|
| Components of net periodic benefit cost                                |   |   |      |   |   |   |      |   |   |
|       Service cost                            |   | $      | 523,914   |   |   | $      | 473,443   |   |   | $ | 536,236 |   |
|       Interest cost                           |   |   | 1,822,318 |   |   |   | 1,611,513 |   |   |   | 1,656,793 |   |
|       Recognized net (gain)/loss              |   |   | 848,128   |   |   |   | 703,008   |   |   |   | 1,057,219 |   |
|       Net periodic benefit cost               |   | $      | 3,194,360 |   |   | $      | 2,787,964 |   |   | $ | 3,250,248 |   |
| Weighted-average assumptions as of December 31                         |   |   |      |   |   |   |      |   |   |   |   |   |
|       Discount rate- benefit      obligation  |   |   | 6.00%     |   |   |   | 6.00%     |   |   |   | 6.00% |   |
|       Discount rate- postretirement      cost |   |   | 6.00%     |   |   |   | 6.00%     |   |   |   | 5.75% |   |

|                                                   |   | 1 %      Increase                                               |   |  1%      Decrease                                           |
|--------------------------------------------------------|--------|----------------------------------------------------------------------|--------|------------------------------------------------------------------|
|  Effect      on interest and service cost         |   |  $              374,271 |   |  $             (302,555) |
|  Effect      on postretirement benefit obligation |   |  4,253,269                                                      |   |   (3,554,672)                                          |

| 2010      |      $       1,746,846 |
|-----------|-------------------------------------------------|
| 2011      | 1,889,022                                       |
| 2012      | 1,997,872                                       |
| 2013      | 2,089,862                                       |
| 2014      | 2,162,941                                       |
| 2015-2019 | 11,903,743                                      |

----

----

|                                                                                                      |   | 2009   |        |   | 2008   |   |
|-----------------------------------------------------------------------------------------------------------|--------|--------|-------------|--------|--------|--------|
| Change in benefit obligation                                                                              |   |   |        |   |   |   |
|          Benefit      obligation at beginning of year        |   | $      | 32,344,767  |   |   | $      | 31,718,049 |   |
|          Service cost                                             |   |   | 606,644     |   |   |   | 580,046 |   |
|          Interest cost                                                 |   |   | 1,905,750   |   |   |   | 1,878,251 |   |
|          Actuarial      (gain)/loss                          |   |   | 1,145,444   |   |   |   | 35,237 |   |
|          Plan      amendment                                 |   |   | 55,026      |   |   |   | -        |   |
|          Benefits paid      and expenses                     |   |   | (1,857,043  | )      |   |   | (1,866,816 | ) |
|          Benefit      obligation at end of year              |   | $      | 34,200,588  |   |   | $      | 32,344,767 |   |
| Change in plan assets                                                                                     |   |   |        |   |   |   |   |   |
|          Fair value of      plan assets at beginning of year |   | $      | 17,623,815  |   |   | $      | 25,869,539 |   |
|          Actual return      on plan assets                   |   |   | 4,087,805   |   |   |   | (7,806,635 | ) |
|          Employer      contribution                          |   |   | 2,095,973   |   |   |   | 1,427,727 |   |
|          Benefits paid      and expenses                     |   |   | (1,857,043  | )      |   |   | (1,866,816 | ) |
|          Fair value of      plan assets at end of year       |   | $      | 21,950,550  |   |   | $      | 17,623,815 |   |
| Funded status, end of year                                                                                |   |   |        |   |   |   |   |   |
|          Fair value of plan      assets                           |   | $      | 21,950,550  |   |   | $      | 17,623,815 |   |
|         Benefits      obligation                                       |   |   | 34,200,588  |   |   |   | 32,344,767 |   |
|         Funded      status                                                  |   | $      | (12,250,038 | )      |   | $      | (14,720,952 | ) |

|                       |   | 2009  |                                        |   | 2008  |   |
|----------------------------|--------|------------|---------------------------------------------|--------|------------|--------|
| Current      liability     |   | $          | -        |   |       | $      | -        |   |
| Noncurrent      liability  |   |       | (12,250,038                                 | )      |       |   | (14,720,952 | ) |
| Net amount      recognized |   | $          | (12,250,038                                 | )      |       | $      | (14,720,952 | ) |

|                    |   | 2009   |       |   | 2008   |   |
|-------------------------|--------|--------|------------|--------|--------|--------|
| Net actuarial      loss |   | $      | 12,407,018 |   |   | $      | 15,014,314 |   |
| Prior service      cost |   |   | 1,058,658  |   |   |   | 1,137,551 |   |
|                    |   | $      | 13,465,676 |   |   | $      | 16,151,865 |   |

|                                                      |   | 2009   |       |    | 2008   |   |
|-----------------------------------------------------------|--------|--------|------------|---------|--------|--------|
| Current year      actuarial (gain)/loss                   |   | $      | (1,586,733 | )  |   | $      | 9,838,021 |   |
| Amortization      of actuarial gain/(loss)                |   |   | (1,020,563 | )       |   |   | (196,253 | ) |
| Current year      prior service (credit)/loss             |   |   | 55,026     |    |   |   | -        |   |
| Amortization      of prior service credit/(cost)          |   |   | (133,919   | )       |   |   | (135,837 | ) |
| Total      recognized in other comprehensive income  |   | $      | (2,686,189 | )  |   | $      | 9,505,931 |   |

----

----

| Actuarial      loss                |   | $      | 788,000 |   |
|------------------------------------|--------|--------|---------|--------|
| Prior service      cost            |   |   | 111,000 |   |
| Total to be      amortized in 2010 |   | $      | 899,000 |   |

| A.       | Cumulative balance as of January 1, 2009 |   | $       | 1,430,913 |   |
|----------|-----------------------------------------------|--------|---------|-----------|--------|
| B.  | Net periodic pension cost                |   |    | 2,311,248 |   |
| C.  | Contributions                                 |   |    | 2,095,973 |   |
| D.  | Cumulative balance as of December 31, 2009    |   | $  | 1,215,638 |   |
|     | (A) - (B) +      (C)                          |   |    |      |   |

|                                                 |   | 2009 |   |   | 2008 |   |   | 2007 |   |
|------------------------------------------------------|--------|------|--------|--------|------|--------|--------|------|--------|
| Discount rate      - benefit obligation              |   | 6.00 | %      |   | 6.00 | %      |   | 6.00 | %      |
| Discount rate      - pension cost                    |   | 6.00 | %      |   | 6.00 | %      |   | 5.75 | %      |
| Expected      return on plan assets                  |   | 8.00 | %      |   | 8.00 | %      |   | 8.00 | %      |
| Rate of      compensation increase (Staff plan only) |   | 4.50 | %      |   | 4.50 | %      |   | 4.50 | %      |

|                                      |   | 2009   |       |   | 2008   |   |       | 2007   |   |
|-------------------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|--------|
| Service cost                              |   | $      | 606,644    |   |   | $      | 580,046    |   |   | $ | 569,753 |   |
| Interest cost                             |   |   | 1,905,750  |   |   |   | 1,878,251  |   |   |   | 1,768,711 |   |
| Expected return on plan      assets       |   |   | (1,355,628 | )      |   |   | (1,996,149 | )      |   |   | (2,069,794 | ) |
| Amortization of prior      service cost   |   |   | 133,919    |   |   |   | 135,837    |   |   |   | 75,123 |   |
| Recognized net actuarial      (gain)/loss |   |   | 1,020,563  |   |   |   | 196,253    |   |   |   | 126,455 |   |
| Net periodic pension      expense         |   | $      | 2,311,248  |   |   | $      | 794,238    |   |   | $ | 470,248 |   |

| Equities        |  60% |
|-----------------|-----------|
| Fixed    Income |  40% |

----

----

|                 | 2009 |        | 2008 |
|-----------------|------|--------|------|
| Equities        | 60%  |   | 54%  |
| Debt securities | 34%  |        | 41%  |
| Other           | 6%   |   | 5%   |

|                                                     |   |              |       | Fair      Value Measurements at December      31, 2009   |   |
|----------------------------------------------------------|--------|-------------------|------------|-------------------------------------------------------------------------|--------|
| Asset      Category                                      |   |        Total |       | Quoted      Pricesin ActiveMarkets forIdentical Assets(Level      1)    |   |        Significant      Observable      Inputs      (Level      2) |   |        Significant      Unobservable      Inputs      (Level      3) |   |
| Cash      and Cash Equivalents                           |   | $                 | 1,313,332  |                                                                    | $      | 1,313,332 |   | $ | -       |   | $ | -             |   |
| Equity      securities:                                  |   |              |       |                                                                    |   |   |   |   |   |   |   |   |   |
|     Materials                        |   |              | 471,040    |                                                                    |   | 471,040 |   |  | -       |   |   | -        |   |
|     Industrials                      |   |              | 1,065,459  |                                                                    |   | 1,065,459 |   |  | -       |   |   | -        |   |
|     Telecommunication                |   |              | 1,351,285  |                                                                    |   | 1,351,285 |   |  | -       |   |   | -        |   |
|     Consumer      discretion         |   |              | 2,035,289  |                                                                    |   | 2,035,289 |   |  | -       |   |   | -        |   |
|     Consumer      staples            |   |              | 759,525    |                                                                    |   | 759,525 |   |  | -       |   |   | -        |   |
|     Energy                           |   |              | 1,960,261  |                                                                    |   | 1,960,261 |   |  | -       |   |   | -        |   |
|     Financials                       |   |              | 2,635,158  |                                                                    |   | 2,635,158 |   |  | -       |   |   | -        |   |
|     Healthcare                       |   |              | 1,235,468  |                                                                    |   | 1,235,468 |   |  | -       |   |   | -        |   |
|     Information      technology      |   |              | 1,412,894  |                                                                    |   | 1,412,894 |   |  | -       |   |   | -        |   |
|     Utilities                        |   |              | 243,181    |                                                                    |   | 243,181 |   |   | -            |   |   | -             |   |
| Fixed      income securities:                            |   |              |       |                                                                    |   |   |   |   |   |   |   |   |   |
|     Corporate      bonds             |   |              | 3,480,146  |                                                                    |   | -        |   |   | 3,480,146 |   |   | -        |   |
|     Foreign      Obligations         |   |              | 586,157    |                                                                    |   | -        |   |   | 586,157 |   |   | -        |   |
|     U.S.      government obligations |   |              | 3,401,355  |                                                                    |   | -        |   |   | 3,401,355 |   |   | -        |   |
| Total                                                    |   | $                 | 21,950,550 |                                                                    | $      | 14,482,892 |   | $ | 7,467,658 |   | $ | -        |   |

| 2010                                                       | $     2,020,332 |
|------------------------------------------------------------|----------------------|
| 2011                                                       | 2,036,171            |
| 2012                                                       | 2,124,059            |
| 2013          | 2,237,518            |
| 2014               | 2,225,301            |
| 2015-2018                                                  | 12,526,185           |

----

----

----

----

|                                                                              |   | CementBusiness |       |   | Ready-MixedConcrete      Business |   |                                  | Adjustmentsand      Eliminations |   |   | Consolidated                                |   |
|-----------------------------------------------------------------------------------|--------|----------------|------------|--------|-----------------------------------|--------|---------------------------------------|----------------------------------|--------|--------|---------------------------------------------|--------|
| For the Year      Ended December 31, 2009                                         |   |           |       |   |                              |   |                                  |                             |   |   |                                        |   |
|   Sales      to unaffiliated customers                                       |   | $              | 55,687,700 |   |                              | $      | 76,506,842                            |                             |   | $      | -        |   |   | $ | 132,194,542 |   |
|        Intersegment sales                                                    |   |           | 12,478,688 |   |                              |   | -       |                             |   |   | (12,478,688                                 | )      |   |   | -        |   |
|         Total netsales                         |   | $              | 68,166,388 |   |                              | $      | 76,506,842                            |                             |   | $      | (12,478,688                                 | )      |   | $ | 132,194,542 |   |
|                                                                              |   |           |       |   |                              |   |                                  |                             |   |   |                                        |   |   |   |   |   |
|   Income      (loss) from operations                                         |   | $              | 7,019,307  |   |                              | $      | (2,070,723                            | )                                |   |   |                                        |   |   | $ |   4,948,584 |   |
|   Other      income, net                                                     |   |           |       |   |                              |   |                                  |                             |   |   |                                        |   |   |   | 436,035 |   |
|         Income before income      taxes        |   |           |       |   |                              |   |                                  |                             |   |   |                                        |   |   | $ | 5,384,619 |   |
|                                                                              |   |           |       |   |                              |   |                                  |                             |   |   |                                        |   |   |   |   |   |
|        Identifiable assets at December 31, 2009                              |   | $              | 95,490,586 |   |                              | $      | 39,995,968                            |                             |   |   |                                        |   |   | $ | 135,486,554 |   |
|        Corporate assets                                                      |   |           |       |   |                              |   |                                  |                             |   |   |                                        |   |   |   | 41,511,123 |   |
|         Total assets at December      31, 2009 |   |           |       |   |                              |   |                                  |                             |   |   |                                        |   |   | $ | 176,997,677 |   |

| For the Year      Ended December 31, 2008   |   |   |       |   |   |   |       |   |   |   |                                        |   |
|---------------------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|--------|--------|---------------------------------------------|--------|
|   Sales      to unaffiliated customers |   | $      | 69,683,762 |   |   | $      | 84,202,711 |   |   | $      | -        |   |   | $ | 153,886,473 |   |
|        Intersegment sales              |   |   | 15,873,001 |   |   |   | 1,079      |   |   |   | (15,874,080                                 | )      |   |   | -        |   |

|         Total netsales                         |   | $      | 85,556,763 |   |   | $      | 84,203,790 |   |   | $      | (15,874,080 | )      |   | $      | 153,886,473 |   |
|-----------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|--------|--------|-------------|--------|--------|--------|-------------|--------|
|                                                                              |   |   |       |   |   |   |       |   |   |   |        |   |   |   |        |   |
|   Income      (loss) from operations                                         |   | $      | 18,362,170 |   |   | $      | (1,607,168 | )      |   |   |        |   |   | $      | 16,755,002  |   |
|        Other loss, net                                                  |   |   |       |   |   |   |       |   |   |   |        |   |   |   | (3,797,295  | )      |
|         Income before income      taxes        |   |   |       |   |   |   |       |   |   |   |        |   |   | $      | 12,957,707  |   |
|                                                                              |   |   |       |   |   |   |       |   |   |   |        |   |   |   |        |   |
|        Identifiable assets at December 31, 2008                              |   | $      | 94,620,462 |   |   | $      | 40,705,428 |   |   |   |        |   |   | $      | 135,325,890 |   |
|        Corporate assets                                                      |   |   |       |   |   |   |       |   |   |   |        |   |   |   | 39,438,759  |   |
|         Total assets at December      31, 2008 |   |   |       |   |   |   |       |   |   |   |        |   |   | $      | 174,764,649 |   |

----

----

|                                        |   | CementBusiness |       |   | Ready-MixedConcrete Business |   |                                        | Adjustmentsand      Eliminations |   |   | Consolidated                           |   |
|---------------------------------------------|--------|----------------|------------|--------|------------------------------|--------|---------------------------------------------|----------------------------------|--------|--------|---------------------------------------------|--------|
| For the Year Ended December 31,      2007   |   |           |       |   |                         |   |                                        |                             |   |   |                                        |   |
|        Sales to unaffiliated customers |   | $              | 67,693,603 |   |                         | $      | 79,075,956                                  |                             |   | $      | -        |   |   | $ | 146,769,559 |   |
|   Intersegment sales                   |   |           | 14,688,880 |   |                         |   | -        |                             |   |   | (14,688,880                                 | )      |   |   | -        |   |

|              Total net sales                   |   | $      | 82,382,483 |   |   | $      | 79,075,956      |   |   | $      | (14,688,880 | )      |   | $      | 146,769,559          |   |
|-----------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|-----------------|--------|--------|--------|-------------|--------|--------|--------|----------------------|--------|
|                                                                              |   |   |       |   |   |   |            |   |   |   |        |   |   |   |                 |   |
|   Income (loss) from operations                                              |   | $      | 19,226,467 |   |   | $      |   (207,527 | )      |   |   |        |   |   | $      |      19,018,940 |   |
|   Other income, net                                                          |   |   |       |   |   |   |            |   |   |   |        |   |   |   | 2,041,129            |   |
|              Income before income taxes        |   |   |       |   |   |   |            |   |   |   |        |   |   | $      |      21,060,069 |   |
|                                                                              |   |   |       |   |   |   |            |   |   |   |        |   |   |   |                 |   |
|   Identifiable assets at December 31,      2007                              |   | $      | 98,071,562 |   |   | $      | 36,574,598      |   |   |   |        |   |   | $      | 134,646,160          |   |
|   Corporate assets                                                           |   |   |       |   |   |   |            |   |   |   |        |   |   |   | 32,842,085           |   |
|              Total assets at December 31, 2007 |   |   |       |   |   |   |            |   |   |   |        |   |   | $      | 167,488,245          |   |

|                                 |   | First   |       |   | Second  |   |       | Third   |   |   | Fourth     |   |
|--------------------------------------|--------|---------|------------|--------|---------|--------|------------|---------|--------|--------|------------|--------|
| 2009                                 |   | Quarter |       |   | Quarter |   |       | Quarter |   |   | Quarter    |   |
| Net      sales                       |   | $       | 25,330,736 |   |    | $      | 36,164,068 |    |   | $      | 42,410,390 |   |   | $ | 28,289,348 |   |
| Gross      profit from operations    |   |    | 471,912    |   |    |   | 8,230,625  |    |   |   | 10,648,719 |   |   |   | 2,196,479 |   |
| Income      (loss) from operations   |   |    | (3,649,721 | )      |    |   | 4,197,728  |    |   |   | 6,633,114  |   |   |   | (2,232,537 | ) |
| Net      income (loss)               |   |    | (2,664,491 | )      |    |   | 2,980,062  |    |   |   | 4,947,133  |   |   |   | (578,085 | ) |
| Basic      earnings (loss) per share |   |    | $(0.66     | )      |    |   | $0.75      |    |   |   | $1.23      |   |   |   | $(0.14 | ) |

----

----

|                                 |   | First   |       |   | Second  |   |       | Third   |   |   | Fourth     |   |
|--------------------------------------|--------|---------|------------|--------|---------|--------|------------|---------|--------|--------|------------|--------|
| 2008                                 |   | Quarter |       |   | Quarter |   |       | Quarter |   |   | Quarter    |   |
| Net      sales                       |   | $       | 25,089,226 |   |    | $      | 42,996,482 |    |   | $      | 48,876,781 |   |   | $ | 36,923,984 |   |
| Gross      profit from operations    |   |    | 1,280,323  |   |    |   | 9,003,783  |    |   |   | 12,801,803 |   |   |   | 9,912,800 |   |
| Income      (loss) from operations   |   |    | (2,613,876 | )      |    |   | 5,003,985  |    |   |   | 8,828,281  |   |   |   | 5,536,612 |   |
| Net      income (loss)               |   |    | (1,802,226 | )      |    |   | 3,604,348  |    |   |   | 6,404,938  |   |   |   | 2,025,647 |   |
| Basic      earnings (loss) per share |   |    | $(0.45     | )      |    |   | $0.90      |    |   |   | $1.59      |   |   |   | $0.50 |   |

|                                                          |   | 2008   |                  |   | Change |   |       | 2009   |   |
|---------------------------------------------------------------|--------|--------|-----------------------|--------|--------|--------|------------|--------|--------|
| Unrealized appreciation on      available-for-sale securities |   | $      |        1,188,000 |   |   | $      | 1,458,000  |   |   | $ | 2,646,000 |   |
| Pension liability adjustment                                  |   |   | (9,691,865            | )      |   |   | 1,616,189  |   |   |   | (8,075,676 | ) |
| Postretirement liability      adjustment                      |   |   | (6,005,258            | )      |   |   | (1,399,409 | )      |   |   | (7,404,667 | ) |
|                                                          |   | $      | (14,509,123           | )      |   | $      | 1,674,780  |   |   | $ | (12,834,343 | ) |

|                                                          |   | 2007   |       |   | Change |   |       | 2008   |   |
|---------------------------------------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|--------|
| Unrealized appreciation on      available-for-sale securities |   | $      | 3,252,000  |   |   | $      | (2,064,000 | )      |   | $ | 1,188,000 |   |
| Pension liability adjustment                                  |   |   | (3,985,934 | )      |   |   | (5,705,931 | )      |   |   | (9,691,865 | ) |
| Postretirement liability      adjustment                      |   |   | (7,467,564 | )      |   |   | 1,462,306  |   |   |   | (6,005,258 | ) |
|                                                          |   | $      | (8,201,498 | )      |   | $      | (6,307,625 | )      |   | $ | (14,509,123 | ) |

----

----

| CORPORATE INFORMATION                                         |
|---------------------------------------------------------------|
|                                                          |   |   |
| CORPORATE      OFFICE                                         |   | DIRECTORS |
| 449      1200 Street                                          |   | Jack      R. Callahan |
| P.O.      Box 1000                                            |   |  Retired President, The Monarch Cement Company |
| Humboldt, KS 66748                                            |   | Ronald E. Callaway |
| Phone:      (620) 473-2222                                    |   |  Retired feed yard      manager |
| Fax:      (620) 473-2447                                      |   | David      L. Deffner |
|                                                          |   |  Director of      Music, Davis Community Church |
| AUDITORS                                                      |   | Robert M. Kissick |
| BKD,      LLP                                                 |   |  Chairman,      Hydraulic Power Systems, Inc. |
| Kansas City, Missouri                                         |   | Gayle      C. McMillen |
|                                                          |   |  Adjunct      Professor, Kansas Wesleyan University |
| ANNUAL      MEETING                                           |   | Richard N. Nixon |
| The      annual meeting of the stockholders of                |   |  Retired      partner, Stinson Morrison Hecker LLP law firm |
| The      Monarch Cement Company is held the                   |   | Byron      J. Radcliff |
| second Wednesday in April of each year at the                 |   |  Rancher       |
| Company's corporate offices.                                  |   | Byron      K. Radcliff |
|                                                          |   |  Owner/Manager, Radcliff      Ranch |
| TRANSFER AGENT AND      REGISTRAR                             |   | Michael R. Wachter |
| The      Monarch Cement Company                               |   |  Vice      President, Civil Engineer and Director of   |
| P.O.      Box 1000                                            |   |  Operations,      Concrete Technology Corp.   |
| Humboldt, KS 66748-0900                                       |   | Walter H. Wulf, Jr.  |
| shareholder.relations@monarchcement.com                       |   |  President      and Chairman of the Board |
|                                                          |   | Walter H. Wulf, III |
|                                                          |   |  District Sales Manager, General Motors  Corporation |
| STOCK TRADING      INFORMATION                                |   |          |
| Trading Symbol: MCEM                                          |   |   |
| Over-the-Counter Market                                       |   | OFFICERS |
|                                                          |   | Walter H.      Wulf, Jr. |
|                                                          |   |  President and Chairman of the      Board |
| INVESTOR      RELATIONS                                       |   |   |
| Inquiries may be directed to Debra P. Roe,                    |   | *Byron K. Radcliff |
| Chief      Financial Officer and Assistant Secretary-         |   |  Vice Chairman of the Board, Secretary and  Treasurer |
| Treasurer, at the corporate address shown above.              |   |           |
|                                                          |   | *Robert M. Kissick |
|                                                          |   |  Vice President |
| FORM    10-K                                                  |   |           |
| The Company's Annual      Report on Form 10-K, as             |   | Rick      E. Rush  |
| filed with the      Securities and Exchange Commission,  |   |  Vice      President     |
| is available upon      request by writing to Debra P. Roe     |   |   |
| at the corporate      address shown above.  The Form     |   | Debra      P. Roe       |
| 10-K, without exhibits,      will be provided at no           |   |  Chief      Financial Officer and |
| charge, and also is      available on the Company's           |   |  Assistant      Secretary-Treasurer            |
| website,      http://www.monarchcement.com.                   |   |           |
|                                                          |   | Lisa      J. Fontaine |
|                                                          |   |  Assistant      Secretary     |
| The      Company's financial information is also available    |   |      |
| from      the SEC at their EDGAR internet address,            |   | Harvey D. Buckley     |
| http://www.sec.gov.                                           |   |  Vice President - Cement      Manufacturing |
|                                                          |   |   |
|                                                          |   | N.      Joan Perez |
| ETHICS      POLICY                                            |   |  Vice President - Sales |
| The      Company's ethics policy is available on the About    |   |   |
| Us      link of the Company's website,                        |   |   |
| http://www.monarchcement.com.                                 |   |  *Not actively involved in the      daily affairs of the Company. |
|                                                          |   |              |