Our exotic alloys business demonstrated good performance in 2003 from both a sales growth and income contribution perspective. It benefited from sustained high demand from high-energy physics  and government markets, as well as corrosion markets in Asia. We forecast attractive profitable growth for this business. We aim to continue as the premier supplier of these products to the U.S. government and meet the growing demand from the corrosion, medical imaging and biomedical markets. We plan to expand our exotic alloys business through yearly incremental investment in our Wah Chang  operations to generate increasing profitability and returns. We expect our smallest segment, Engineered Products, to contribute as a core business sector with good returns and cash generation. Importantly, this segment was profitable during the very difficult  market environment in 2003.These tungsten carbide cutting tools, forging and casting products and  processing service businesses remain key assets. We expect them to generate cash and improve returns. International growth has long been a focus of ATI. Nearly 25 percent of our total revenue in 2003  represents export sales and sales by our non-U.S. manufacturing companies. Export sales were aided during 2003 by a 20 percent increase, compared to 2002, in sales through our international offices in Asia. A combination of a weaker dollar, the industrial boom in China, and the prospects for global  recovery bodes well for our international sales. For example, production continued to ramp up at STAL, our Precision Rolled Strip ® products joint  venture in China. Orders have been strong and STAL is nearly full. As a result of the success of STAL, we are considering our options to  grow in China . Finally, two of the most important items in our strategic plan are to  We know what needs to be done and either already have the plans in place to achieve our goals, or will be initiating other new actions to achieve our goals. As I said, I joined ATI because of the many outstanding opportunities here. Accelerating the deployment of the ATI Business System and leading this Company to compete profitably in the ever-changing global economy are at the foundation of those opportunities. Jim Murdy, who retired as President and CEO on September 30, 2003, positioned ATI for a smooth and effective leadership transition with the Company on a firm financial foundation for growth. I also want to express my sincere appreciation to all of ATI’s Board of Directors for their many  contributions to the successes of ATI over the years. In May of this year, Bob Bozzone plans to retire as ATI’s Chairman of the Board. Bob has provided invaluable guidance to me, and our entire management team. He was a key factor in my decision to join ATI. Bob’s leadership has been influential to this Company. We all are grateful to him and look forward to his continuing contribution as a member of the ATI Board of Directors. Sincerely, March 2004 4 Annual Report 2003 ATI In Summary • improve the ATI balance sheet • deliver positive earnings per share growth . Pat Hassey President and Chief Executive Officer