Management’s Report  The accompanying consolidated financial statements of Allegheny Technologies Incorporated and subsidiaries have been prepared in accordance with generally accepted accounting principles and include some amounts that are based upon Management’s best estimates and judgments. Management has the primary responsibility for the information contained in the financial statements and in other sections of this Annual Report and for their integrity and objectivity. The Company has a system of internal controls designed to provide reasonable assurance that assets are safeguarded and transactions are properly executed and recorded for the preparation of financial information.  The concept of reasonable assurance is based on the recognition that there are inherent limitations in all systems of internal accounting control and that the cost of such systems should not exceed the benefits to be derived. The Company maintains a staff of professional internal auditors, who assist in audit coverage with the independent auditors and conduct operational and special audits. The independent auditors express their opinion on the Company’s financial statements based on procedures, including an evaluation of internal controls, which they consider to be sufficient to form their opinion. The Audit Committee of the Board of Directors is composed of five independent non-employee members. Among its principal duties, the Committee is responsible for recommending the independent auditors to conduct the annual audit of the Company’s financial statements and for reviewing the financial reporting and accounting practices. L. Patrick Hassey President and Chief Executive Officer Richard J. Harshman Executive Vice President, Finance and Chief Financial Officer Dale G. Reid Vice President – Controller, Chief Accounting Officer and Treasurer 66 Annual Report 2003 ATI