Columbus McKinnon manufactures alloy chain for use in overhead lifting, pulling and restraining applications and carbon steel welded-link chain for various load securement and other non-overhead lifting applications. Federal regulations in the United States require the use of alloy chain – which Columbus McKinnon first developed in 1933 – for overhead lifting applications because of its strength and wear characteristics. Columbus McKinnon holds the number one market share for load chain used in hoists and in high-strength carbon steel chain used in the transportation industry. We also manufacture kiln chain sold primarily to the cement manufacturing market and are the leading supplier of marine chain to the US and Canadian governments. Chain & Forgings CM, Big Orange, Hammerlok, Herc-Alloy, Dixie Industries, Midland Forge, Lister, Durbin Durco, AgWorks, ColorLinks General manufacturing, marine, agricultural, automotive parts manufacturing, entertainment, construction, mining, crane building, transportation, logging, oil and gas, primary metals production and steel processing Chain and forged attachments are distributed to the industrial and consumer markets through industrial distributors, hardware distributors and mass merchandiser outlets. Brands: End-user Markets: Distribution: **Alloy chain, which comprised 63% and 61% of our fiscal 2003 and fiscal 2002 sales, respectively. **Selected categories comprising 72% of our fiscal 2003 forged attachment revenues. Data is not available for fiscal 2002. The Number One Producer of the higher grades of Chain in North America. The Number Two Producer of Forged Attachments. Chain and Forged Attachments Product Line Performance Metrics Metric FYE 2003 FYE 2002 Sales $98.0 million $102.1 million Percentage of total sales 22% 21% Chain U.S. market share* 39% 39% Forged Attachments- U.S. market share** 39% NA Lean Manufacturing Rapid Improvement Events 80 73 Manufacturing facilities 6 8 Manufacturing square footage 464,000 688,500 Inventories $18.3 million $18.6 million ........................................................... ....................................... ................ ....................................................... ......................................................... 5 Columbus McKinnon is the second largest North American producer of forged products and rigging accessories, manufacturing a complete line of alloy and carbon steel closed-die forged attachments. These attachments are used in virtually all types of chain and wire rope rigging applications in a variety of industries. Columbus McKinnon also produces specific application forgings for a number of OEM customers. We provide prompt aftermarket service to product end-users through a network of independent distributors, including 13 chain service centers.