We are not content to sit back and wait for the timing of a still-uncertain economic recovery to sustain our forward momentum. We are giving attention to permanent cost reductions throughout our businesses, and are striving for measurable margin improvement. Where necessary, we are restructuring and reorganizing operations for better market efficiency and results.  Our first full year under the formal Economic Value Added (EVA$^{®}$) system has been encouraging. There is an increased discipline being demonstrated throughout our operations toward the more efficient use of capital. The average capital employed across our four market sectors is being reduced, and we look forward to steady improvement as our EVA culture takes deeper root. The incentive compensation of all senior managers is now tied directly to EVA performance.  In 2003, we expect to generate over 55 percent of our revenues internationally and continue to grow our strong industrial services businesses to a projected 70 percent of total revenues. Our objectives include building upon our solid platform of market-leading positions and using our cash flows to accelerate a number of strategic growth initiatives in our leading sectors. The recent declaration of our 10th dividend increase in the past 11 years confirms our understanding of our stockholders' requirements and interests as well as our continued confidence in Harsco's ongoing cash generation capabilities.  Creation of value for our stockholders is the primary objective of the Harsco Board of Directors and management team. We appreciate the commitment and support of all those who join in our efforts. Derek C. Hathaway Chairman, President and Chief Executive Officer March 6, 2003 HARSCO CORPORATION 2002 ANNUAL REPORT 3