Allegheny Technologies Incorporated and Subsidiaries Consolidated Statements of Cash Flows (In millions) For the Years Ended December 31, 2003) 2002) 2001) Operating Activities: Net Loss $(314.6) $0(65.8) $0(25.2) Adjustments to reconcile net loss to net cash provided by operating activities:  Cumulative effect of change in accounting principle 1.3) —) —) Depreciation and amortization 74.6) 90.0) 98.6) Non-cash restructuring costs and asset write-offs 52.6) 39.2) 79.7) Deferred income taxes 72.7) 25.6) 24.5) Gains on sales of investments and businesses (0.8) (2.6) (2.8) Change in operating assets and liabilities: Deferred pension asset  67.7) (4.2) (49.0) Accrued income taxes 44.7) (3.4) (48.5) Inventories 32.6) 99.4) 67.9) Accounts receivable (9.5) 35.6) 47.1) Accrued liabilities 31.4) (22.6) (49.9) Accounts payable 2.9) 16.5) (12.5) Other 26.4) (3.5) (7.1) Cash provided by operating activities 82.0) 204.2) 122.8) Investing Activities: Purchases of property, plant and equipment (74.4) (48.7) (104.2) Disposals of property, plant and equipment 9.8) 9.2) 4.3) Proceeds from sales of businesses and investments 0.8) 2.4) 17.9) Other (6.5) (2.7) (3.0) Cash used in investing activities (70.3) (39.8) (85.0) Financing Activities: Borrowings of other long-term debt  28.5) —) 11.5) Payments of long-term debt and capital leases (14.6) (12.4) (0.7) Net repayments under credit facilities (1.5) (73.1) (266.6) Issuance of Allegheny Technologies 8.375% Notes, net —) —) 292.5) Net borrowings (repayments) 12.4) (85.5) 36.7) Dividends paid (19.4) (53.2) (64.2) Proceeds from interest rate swap settlement 15.3) —) —) Exercises of stock options 0.2) —) 0.2) Purchases of common stock —) —) (3.0) Cash provided by (used in) financing activities 8.5) (138.7) (30.3) Increase in cash and cash equivalents 20.2) 25.7) 7.5) Cash and cash equivalents at beginning of year 59.4) 33.7) 26.2) Cash and cash equivalents at end of year $0,79.6) $0(59.4) $0(33.7) Amounts presented on the Consolidated Statements of Cash Flows may not agree to the corresponding changes in balance sheet items due to the accounting for purchases and sales of businesses and the effects of foreign currency translation. The accompanying notes are an integral part of these statements. ATI Annual Report 2003 33