Objective #3 Protect and grow our domestic market share Objective #4 Increase CM’s penetration of international markets  Focused on Core Products Business Robert L. Montgomery, Jr. Executive Vice President and Chief Financial Officer Timothy T. Tevens President and Chief Executive Officer 3 Despite the challenges of the last three years, we remain confident in the future of Columbus McKinnon. The nearly 3,000 Associates of Columbus McKinnon continue to produce outstanding products and provide exceptional service to our customers, and this provides a very strong and valuable anchor for our business. Management and the Board remain firmly committed to strengthening Columbus McKinnon’s financial results and position. We believe these goals are achievable because we are executing a sound and conservative  strategy that leverages Columbus McKinnon’s considerable strengths in market leadership and coverage  and in product quality and service.  As always, management and the Board are mindful of the importance of good corporate governance and sound financial reporting. We performed a comprehensive evaluation of our corporate governance and reporting practices and policies early in fiscal 2003 to ensure compliance with the Sarbanes-Oxley Act and made only a few adjustments to comply. In January 2003, the Board also elected two new outside directors, Wallace Creek, Senior Vice President of Finance of Collins & Aikman and the former controller of General Motors, and Ernest Verebelyi, retired Group President, Terex Corporation. They are excellent additions to CM’s Board given their significant business expertise and experience as senior executives at leading multinational manufacturing companies. David Black, a director since 1995, is retiring from the Board following this year’s annual meeting. The former CEO of JLG Industries, David’s perspective as a senior industrial manufacturing executive was especially valuable and his expertise and guidance will be missed. Over the last three years, we have made significant progress in reducing Columbus McKinnon’s fixed costs and inventory levels. We do need some cooperation from the economy to increase volumes and have confidence that our core Products business will generate higher volumes in a stronger economic environment based on its historical sales prior to fiscal 2002. Strategically, we believe the Products Segment, which made up 86 percent of net sales in fiscal 2003, is clearly the area in which we have a leading, sustainable competitive advantage in the material handling industry. We also have a very solid foundation in place to grow our international business. Columbus McKinnon already has an established market presence in both western Europe and Latin America and our lower cost manufacturing facilities in China and Mexico are in close proximity to regions where many large global manufacturers are building offshore plants. Increasing Columbus McKinnon’s penetration of international markets will drive future top line growth as market conditions improve and there is increased awareness in global markets of the quality and functionality of our product line. Enhancing our product line to have broader global appeal was a major focus in fiscal 2002. Columbus McKinnon sales outside the United States in fiscal 2003 were 31 percent of consolidated net sales, compared with 29 percent in fiscal 2002. The expansion of our presence in key European and Latin American markets has given us a solid foothold in markets that have strong long-term growth potential. The recent weakening of the dollar also affects us favorably because it makes our products more attractive in global markets.  We will protect and grow our domestic market share by staying focused on enhancing our product line and supporting our network of over 20,000 distributors and thousands of end users. Our efforts to update and upgrade the product line and manufacture products at a lower cost have enabled us to be more competitive and maintain our leading North American market share in the hoist and chain business despite lower aggregate market demand. During fiscal 2003, we launched a new mini-lever hoist, the 602, and also introduced a European version of our Shopstar hoist, a staple of our domestic product line used for lighter load work station applications. Last year we also launched a new customer web site at www.cmindustrial.com with enhanced functionality that makes it easier for customers to identify the best product for their specific need. We continue to maintain strong service and product training support, which gives us a significant competitive advantage with distributors and end users.