FINANCIAL HIGHLIGHTS The following selected financial data should be read in conjunction with “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and the historical Consolidated Financial Statements and Notes thereto included herein: Years Ended December 31, (In thousands, except per share amounts) 2003 2002 2001 2000 1999 Operating Data: Net sales $353,116 $325,431 $254,770 $253,129 $268,951 Operating profit $ 34,277 $ 29,213 $ 20,345 $ 17,067 $ 33,269 Income from continuing operations  before income taxes and cumulative  effect of change in accounting principle $ 31,243 $ 25,647 $ 16,194 $ 13,646 $ 30,595 Provision for income taxes $ 11,868 $ 9,883 $ 6,364 $ 5,652 $ 12,105 Income from continuing operations  before cumulative effect of change  in accounting principle $ 19,375 $ 15,764 $ 9,830 $ 7,994 $ 18,490 Discontinued operations 1 (net of taxes) $ 48 $ (200) $ (896) $ (6,447) 2 $ (1,299) Cumulative effect of change in accounting  principle for goodwill (net of taxes) $ (30,162) Net income (loss) $ 19,423 $ (14,598) $ 8,934 $ 1,547 $ 17,191 Income (loss) per common share: Income from continuing operations: Basic $ 1.92 $ 1.61 $ 1.02 $ .77 $ 1.62 Diluted $ 1.88 $ 1.57 $ 1.02 $ .77 $ 1.62 Discontinued operations: Basic $ (.02) $ (.10) $ (.62) $ (.11) Diluted $ (.02) $ (.10) $ (.62) $ (.11) Cumulative effect of change in accounting  principle for goodwill: Basic $ (3.08) Diluted $ (3.01) Net income (loss): Basic $ 1.92 $ (1.49) $ .92 $ .15 $ 1.51 Diluted $ 1.88 $ (1.46) $ .92 $ .15 $ 1.51 Financial Data: Working capital $ 29,700 $ 24,067 $ 12,816 $ 23,400 $ 42,669 Total assets $160,104 $145,396 $156,975 $159,298 $156,044 Long-term obligations $ 27,737 $ 39,102 $ 43,936 $ 58,275 $ 46,451 Stockholders’ equity $ 93,653 $ 70,104 $ 81,210 $ 72,164 3 $ 84,089 1 Refers to the operations of the Company’s discontinued axle and tire refurbishing operation. 2 After a non-cash charge of $6.9 million in 2000 to reflect an impairment related to the Company’s axle and tire refurbishing operation. 3 In 2000, the Company purchased treasury stock for $13.5 million. The closing price per share for the common stock on March 17, 2004 was $36.10. Year-End Stock Prices Year End Debt to Equity Ratio Equity Per Common Share $ 16.05 $ 10.75 $ 9.00 $ 5.75 1999 2000 2001 2002 2003 $ 27.80 0.7 0.7 0.6 0.9 1999 2000 2001 2002 2003 0.4 $ 7.06 $ 8.40 $ 7.44 $ 7.47 1999 2000 2001 2002 2003 $ 9.18 DREW INDUSTRIES INCORPORATED 2003 ANNUAL REPORT 1