Group Northwest Pipe is the leading supplier of steel, high-pressure water transmission pipe in the United States. The Company has seven water transmission facilities and is positioned to deliver water transmission pipe anywhere in North America. The Company also has the capability to produce complex piping assemblies for water, waste treatment, and power plants. These capabilities enable Northwest Pipe to provide fully engineered systems for a wide range of applications. The Company is also actively pursuing international markets, focusing on Latin America, the Caribbean and the Pacific Rim. The Water Transmission Group manufactures pipe from 4.5 inches to 156 inches in diameter. Most products are used to extend, upgrade or replace public water systems. Other products are used for structural or industrial applications. The Company offers a wide variety of coatings and linings, and produces to national standards and custom specifications. In the past five years, Water Transmission Group revenues have grown at a compound annual rate of 14.6%. In 2000, the Group generated $155 million in revenues, another record year. As expected, the first and second quarters were slow. Market conditions improved and bidding activity increased in the third and fourth quarters. Population growth, urban expansion and pipeline replacement drove these favorable market conditions. The Company expects to see continued growth in its Water Transmission Group in 2001. Northwest Pipe Company | 5