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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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<SEC-DOCUMENT>0000017843-01-500026.txt : 20010629
<SEC-HEADER>0000017843-01-500026.hdr.sgml : 20010629
ACCESSION NUMBER:		0000017843-01-500026
CONFORMED SUBMISSION TYPE:	11-K
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20001231
FILED AS OF DATE:		20010628

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			CARPENTER TECHNOLOGY CORP
		CENTRAL INDEX KEY:			0000017843
		STANDARD INDUSTRIAL CLASSIFICATION:	STEEL WORKS, BLAST FURNACES  ROLLING MILLS (COKE OVENS) [3312]
		IRS NUMBER:				230458500
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			0630

	FILING VALUES:
		FORM TYPE:		11-K
		SEC ACT:		
		SEC FILE NUMBER:	001-05828
		FILM NUMBER:		1670268

	BUSINESS ADDRESS:	
		STREET 1:		1047 N PARK ROAD
		CITY:			WYOMISSING
		STATE:			PA
		ZIP:			19610-1339
		BUSINESS PHONE:		6102082000

	MAIL ADDRESS:	
		STREET 1:		1047 N PARK ROAD
		CITY:			WYOMISSING
		STATE:			PA
		ZIP:			19610
</SEC-HEADER>
<DOCUMENT>
<TYPE>11-K
<SEQUENCE>1
<FILENAME>tal11k.htm
<DESCRIPTION>RETIREMENT PLAN OF TALLEY METALS TECHNOLOGY INC.
<TEXT>

<HTML>

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<!-- The following table was generated by the Internet Assistant Wizard for Microsoft Excel. -->
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<table border="0" width="356">
  <tr ALIGN="center" VALIGN="bottom"
  STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td align="center" width="350"><font face="Arial"><b>Form 11-K<br>
    </b></font></td>
  </tr>
  <tr ALIGN="center" VALIGN="bottom"
  STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td align="center" width="350"></td>
  </tr>
  <tr ALIGN="center" VALIGN="bottom"
  STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td align="center" width="350"><font face="Arial"><b>SECURITIES AND EXCHANGE COMMISSION</b></font></td>
  </tr>
  <tr ALIGN="center" VALIGN="bottom"
  STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td align="center" width="350"><font face="Arial"><b>Washington, D.C. 20549<br>
    <br>
    <br>
    </b></font></td>
  </tr>
  <tr ALIGN="center" VALIGN="bottom"
  STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td align="center" width="350"><font face="Arial">ANNUAL REPORT<br>
    <br>
    </font></td>
  </tr>
  <tr ALIGN="center" VALIGN="bottom"
  STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td align="center" width="350"></td>
  </tr>
  <tr ALIGN="center" VALIGN="bottom"
  STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td align="center" width="350"><font face="Arial">Pursuant to Section 15(d) of the</font></td>
  </tr>
  <tr ALIGN="center" VALIGN="bottom"
  STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td align="center" width="350"><font face="Arial">Securities Exchange Act of 1934<br>
    <br>
    <br>
    </font></td>
  </tr>
  <tr ALIGN="center" VALIGN="bottom"
  STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td align="center" width="350"><font face="Arial">For the year ended December 31, 2000<br>
    <br>
    <br>
    </font></td>
  </tr>
  <tr ALIGN="center" VALIGN="bottom"
  STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td align="center" width="350"><font face="Arial">Commission File Number 1-5828<br>
    <br>
    <br>
    </font></td>
  </tr>
  <tr ALIGN="center" VALIGN="bottom"
  STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td align="center" width="350"><font face="Arial">RETIREMENT PLAN OF<br>
    TALLEY METALS TECHNOLOGY, INC.<br>
    (Full title of the plan)<br>
    <br>
    <br>
    </font></td>
  </tr>
  <tr ALIGN="center" VALIGN="bottom"
  STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td align="center" width="350"><font face="Arial">CARPENTER TECHNOLOGY CORPORATION<br>
    (Name of issuer of the securities held<br>
    pursuant to the plan)<br>
    <br>
    <br>
    </font></td>
  </tr>
  <tr ALIGN="center" VALIGN="bottom"
  STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td align="center" width="350"><font face="Arial">1047 N. Park Rd.</font></td>
  </tr>
  <tr ALIGN="center" VALIGN="bottom"
  STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td align="center" width="350"><font face="Arial">Wyomissing, Pennsylvania 19610-1339</font></td>
  </tr>
  <tr ALIGN="center" VALIGN="bottom"
  STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td align="center" width="350"><font face="Arial">(Address of principal executive</font></td>
  </tr>
  <tr ALIGN="center" VALIGN="bottom"
  STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td align="center" width="350"><font face="Arial">office of the issuer)<br>
    <br>
    <br>
    </font></td>
  </tr>
  <tr ALIGN="center" VALIGN="bottom"
  STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td align="center" width="350"></td>
  </tr>
</TABLE>
</center></div><div align="center"><center>

<table border="0" width="627" height="500">
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:@">
    <td ALIGN="center" COLSPAN="4" width="621" height="55"><font face="Arial">SIGNATURES<br>
    <br>
    </font></td>
  </tr>
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td ALIGN="right" width="44" height="18"></td>
    <td ALIGN="right" width="176" height="18"></td>
    <td ALIGN="right" width="33" height="18"></td>
    <td ALIGN="right" width="350" height="18"></td>
  </tr>
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td ALIGN="left" colspan="4" width="621" height="54"><font face="Arial">Pursuant to the
    requirements of the Securities Exchange Act of 1934, Carpenter<br>
    Technology Corporation has duly caused this annual report to be signed on its behalf by<br>
    the undersigned thereunto duly authorized.<br>
    <br>
    <br>
    <br>
    <br>
    </font></td>
  </tr>
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td ALIGN="right" width="44" height="18"></td>
    <td ALIGN="right" width="176" height="18"></td>
    <td ALIGN="right" width="33" height="18"></td>
    <td ALIGN="left" width="350" height="49" rowspan="3"><font face="Arial">RETIREMENT PLAN OF<br>
    TALLEY METALS TECHNOLOGY, INC.<br>
    (Name of Plan)</font></td>
  </tr>
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td ALIGN="right" width="44" height="13"></td>
    <td ALIGN="right" width="176" height="13"></td>
    <td ALIGN="right" width="33" height="13"></td>
  </tr>
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td ALIGN="right" width="44" height="18"></td>
    <td ALIGN="right" width="176" height="18"></td>
    <td ALIGN="right" width="33" height="18"></td>
  </tr>
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td ALIGN="right" width="44" height="18"></td>
    <td ALIGN="right" width="176" height="18"></td>
    <td ALIGN="right" width="33" height="18"></td>
    <td ALIGN="right" width="350" height="18"></td>
  </tr>
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td ALIGN="right" width="44" height="18"></td>
    <td ALIGN="right" width="176" height="18"></td>
    <td ALIGN="right" width="33" height="18"></td>
    <td ALIGN="right" width="350" height="18"></td>
  </tr>
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td ALIGN="right" width="44" height="18"></td>
    <td ALIGN="right" width="176" height="18"></td>
    <td ALIGN="right" width="33" height="18"></td>
    <td ALIGN="right" width="350" height="18"></td>
  </tr>
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td ALIGN="right" width="44" height="18"></td>
    <td ALIGN="right" width="176" height="18"></td>
    <td ALIGN="right" width="33" height="18"></td>
    <td ALIGN="right" width="350" height="18"></td>
  </tr>
  <tr VALIGN="bottom">
    <td ALIGN="left" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    width="44" height="18"><font face="Arial">Date</font></td>
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    width="176" height="18"><p align="left" style="border-bottom: thin solid">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font
    face="Arial">June 28, 2001</font></td>
    <td ALIGN="left" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    width="33" height="18"><font face="Arial">&nbsp;&nbsp;By </font></td>
    <td ALIGN="left" STYLE="vnd.ms-excel.numberformat:@" width="350" height="18"><p
    style="border-bottom: thin solid"><font face="Arial">/s/ Terrence E. Geremski</font></td>
  </tr>
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td ALIGN="right" width="44" height="18"></td>
    <td ALIGN="right" width="176" height="18"></td>
    <td ALIGN="right" width="33" height="18"></td>
    <td ALIGN="left" width="350" height="54" rowspan="3"><font face="Arial">Terrence E.
    Geremski<br>
    Senior Vice President - Finance and<br>
    Chief Financial Officer</font></td>
  </tr>
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td ALIGN="right" width="44" height="18"></td>
    <td ALIGN="right" width="176" height="18"></td>
    <td ALIGN="right" width="33" height="18"></td>
  </tr>
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td ALIGN="right" width="44" height="18"></td>
    <td ALIGN="right" width="176" height="18"></td>
    <td ALIGN="right" width="33" height="18"></td>
  </tr>
</TABLE>
</center></div><div align="center"><center>

<table border="0" width="628">
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td ALIGN="left" colspan="3" width="622"><font face="Arial"><u><br>
    <br>
    Financial Statements and Exhibits<br>
    <br>
    </u></font></td>
  </tr>
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td ALIGN="left" width="34"><font face="Arial">(a)</font></td>
    <td ALIGN="left" width="576" colspan="2"><font face="Arial">Financial Statements</font></td>
  </tr>
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td ALIGN="right" width="34"></td>
    <td ALIGN="left" width="576" colspan="2" rowspan="2"><font face="Arial"><br>
    <br>
    The financial statements filed as part of this report are listed in the Index to<br>
    Financial Statements included herein.<br>
    <br>
    </font></td>
  </tr>
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td ALIGN="right" width="34"></td>
  </tr>
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td ALIGN="left" width="34"><font face="Arial">(b)<br>
    <br>
    </font></td>
    <td ALIGN="left" width="576" colspan="2"><font face="Arial">Exhibits<br>
    <br>
    </font></td>
  </tr>
  <tr VALIGN="bottom">
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    width="34"></td>
    <td ALIGN="left" STYLE="vnd.ms-excel.numberformat:@" width="36"><font face="Arial">(1)<br>
    <br>
    <br>
    </font></td>
    <td ALIGN="left" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    width="540"><font face="Arial">Consent of Independent Accountants<br>
    <br>
    <br>
    </font></td>
  </tr>
</TABLE>
</center></div><div align="center"><center>

<table border="0" width="666">
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:0.00E+00">
    <td ALIGN="center" COLSPAN="3" width="655"><font face="Arial"><b>RETIREMENT PLAN OF TALLEY
    METALS TECHNOLOGY, INC.</b></font></td>
  </tr>
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:0.00E+00">
    <td ALIGN="center" COLSPAN="3" width="655"><font face="Arial"><b>INDEX TO FINANCIAL
    STATEMENTS<br>
    </b></font></td>
  </tr>
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:0.00E+00">
    <td ALIGN="center" COLSPAN="3" width="655"><font face="Arial"><b>FORM 11-K ANNUAL REPORT</b></font></td>
  </tr>
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:0.00E+00">
    <td ALIGN="center" COLSPAN="3" width="655"></td>
  </tr>
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td ALIGN="right" width="550"></td>
    <td ALIGN="right" width="10"></td>
    <td ALIGN="center" width="94"><font face="Arial">Form 11-K</font></td>
  </tr>
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td ALIGN="right" width="550"></td>
    <td ALIGN="right" width="10"></td>
    <td ALIGN="center" width="94"><p style="border-bottom: thin solid"><font face="Arial">Pages</font></td>
  </tr>
  <tr VALIGN="bottom">
    <td ALIGN="left" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    width="550"><font face="Arial"><br>
    <a href="#Report of Independent Accountants">Report of Independent Accountants</a></font></td>
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    width="10"></td>
    <td ALIGN="center" STYLE="vnd.ms-excel.numberformat:@" width="94"><font face="Arial"><br>
    <a href="#Report of Independent Accountants">5</a></font></td>
  </tr>
  <tr VALIGN="bottom">
    <td ALIGN="left" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    width="550"><font face="Arial"><br>
    Financial Statements:</font></td>
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    width="10"></td>
    <td ALIGN="center" STYLE="vnd.ms-excel.numberformat:@" width="94"><font face="Arial"><br>
    </font></td>
  </tr>
  <tr VALIGN="bottom">
    <td ALIGN="left" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    width="550" rowspan="2"><font face="Arial"><br>
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<a
    href="#STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS">Statements of Net Assets Available
    for Benefits as of December 31, 2000<br>
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;and 1999</a></font></td>
    <td ALIGN="left" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    width="10"></td>
    <td ALIGN="center" STYLE="vnd.ms-excel.numberformat:@" width="94" rowspan="2"><br>
    <font face="Arial"><br>
    <a href="#STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS">6</a></font></td>
  </tr>
  <tr VALIGN="bottom">
    <td ALIGN="left" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    width="10"></td>
  </tr>
  <tr VALIGN="bottom">
    <td ALIGN="left" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    width="550" rowspan="2"><font face="Arial"><br>
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<a
    href="#STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS">&nbsp;&nbsp;Statements
    of Changes in Net Assets Available for Benefits for the years<br>
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ended December 31, 2000 and 1999</a></font></td>
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    width="10"></td>
    <td ALIGN="center" STYLE="vnd.ms-excel.numberformat:@" width="94" rowspan="2"><br>
    <font face="Arial"><br>
    <a href="#STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS">7</a></font></td>
  </tr>
  <tr VALIGN="bottom">
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    width="10"></td>
  </tr>
  <tr VALIGN="bottom">
    <td ALIGN="left" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    width="550"><font face="Arial"><br>
    <a href="#NOTES TO FINANCIAL STATEMENTS">Notes to Financial Statements</a></font></td>
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    width="10"></td>
    <td ALIGN="center" STYLE="vnd.ms-excel.numberformat:@" width="94"><font face="Arial"><br>
    <a href="#NOTES TO FINANCIAL STATEMENTS">8-12</a></font></td>
  </tr>
  <tr VALIGN="bottom">
    <td ALIGN="left" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    width="550"><font face="Arial"><br>
    Supplemental Schedule:</font></td>
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    width="10"></td>
    <td ALIGN="center" STYLE="vnd.ms-excel.numberformat:@" width="94"><font face="Arial"><br>
    </font></td>
  </tr>
  <tr VALIGN="bottom">
    <td ALIGN="left" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    width="550"><font face="Arial"><br>
    <a href="#Schedule of Assets Held at End of Year">Assets Held for Investment Purposes at
    End of Year</a></font></td>
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    width="10"></td>
    <td ALIGN="center" STYLE="vnd.ms-excel.numberformat:@" width="94"><font face="Arial"><br>
    <a href="#Schedule of Assets Held at End of Year">13</a></font></td>
  </tr>
  <tr VALIGN="bottom">
    <td ALIGN="left" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    width="550"><font face="Arial"><br>
    <a href="#CONSENT OF INDEPENDENT ACCOUNTANTS">Consent of Independent Accountants</a></font></td>
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    width="10"></td>
    <td ALIGN="center" STYLE="vnd.ms-excel.numberformat:@" width="94"><font face="Arial"><br>
    <a href="#CONSENT OF INDEPENDENT ACCOUNTANTS">14</a></font></td>
  </tr>
</TABLE>
</center></div><div align="center"><center>

<table border="0">
  <tr ALIGN="center" VALIGN="bottom"
  STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td><p align="center"><font face="Arial"><b><u><br>
    <br>
    <br>
    <a name="Report of Independent Accountants">Report of Independent Accountants<br>
    </a><br>
    <br>
    </u></b></font></td>
  </tr>
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td ALIGN="left"><font face="Arial"><b>To the Participants and Administrator of the
    Retirement Plan of Talley Metals<br>
    Technology, Inc.:<br>
    <br>
    </b></font></td>
  </tr>
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td ALIGN="right"></td>
  </tr>
  <tr ALIGN="left" VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:@">
    <td><font face="Arial">In our opinion, the accompanying statements of net assets available
    for benefits and the related<br>
    statements of changes in net assets available for benefits present fairly, in all material
    respects,<br>
    the net assets available for benefits of the Retirement Plan of Talley Metals Technology,
    Inc. (the<br>
    &quot;Plan&quot;) at December 31, 2000 and 1999, and the changes in net assets available
    for benefits for<br>
    the years then ended in conformity with accounting principles generally accepted in the
    United<br>
    States of America. These financial statements are the responsibility of the Plan's
    management;<br>
    our responsibility is to express an opinion on these financial statements based on our
    audits. We<br>
    conducted our audits of these statements in accordance with auditing standards generally<br>
    accepted in the United States of America, which require that we plan and perform the audit
    to<br>
    obtain reasonable assurance about whether the financial statements are free of material<br>
    misstatement. An audit includes examining, on a test basis, evidence supporting the
    amounts<br>
    and disclosures in the financial statements, assessing the accounting principles used and<br>
    significant estimates made by management, and evaluating the overall financial statement<br>
    presentation. We believe that our audits provide a reasonable basis for our opinion.<br>
    <br>
    </font></td>
  </tr>
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:@">
    <td ALIGN="right"></td>
  </tr>
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:@">
    <td ALIGN="left"><font face="Arial">Our audits were conducted for the purpose of forming
    an opinion on the basic financial<br>
    statements taken as a whole. The supplemental schedule of Assets Held for Investment<br>
    Purposes at End of Year is presented for the purpose of additional analysis and is not a
    required<br>
    part of the basic financial statements but is supplementary information required by the<br>
    Department of Labor's Rules and Regulations for Reporting and Disclosure under the
    Employee<br>
    Retirement Income Security Act of 1974. This supplemental schedule is the responsibility
    of the<br>
    Plan's management. The supplemental schedule has been subjected to the auditing procedures<br>
    applied in the audits of the basic financial statements and, in our opinion, is fairly
    stated in all<br>
    material respects in relation to the basic financial statements taken as a whole.<br>
    <br>
    <br>
    /s/PricewaterhouseCoopers LLP<br>
    </font><br>
    </td>
  </tr>
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:@">
    <td ALIGN="left"><font face="Arial">June 4, 2001<br>
    <br>
    <br>
    </font></td>
  </tr>
</TABLE>
</center></div><div align="center"><center>

<table border="0">
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td ALIGN="center" COLSPAN="4"><font face="Arial"><b>RETIREMENT PLAN OF<br>
    TALLEY METALS TECHNOLOGY, INC.<br>
    <br>
    </b></font></td>
  </tr>
  <tr VALIGN="bottom">
    <td ALIGN="center" COLSPAN="4"
    STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"><font face="Arial"><a
    name="STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS"><b>STATEMENTS OF NET ASSETS
    AVAILABLE FOR BENEFITS<br>
    </b></a>as of December 31, 2000 and 1999<br>
    (dollars in thousands)<br>
    <br>
    <br>
    </font></td>
  </tr>
  <tr VALIGN="bottom">
    <td ALIGN="left" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"><font
    face="Arial"><b>ASSETS</b></font></td>
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:0_)"><font face="Arial"><b><u>2000 </u></b></font></td>
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"></td>
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:0_)"><font face="Arial"><b><u>1999 </u></b></font></td>
  </tr>
  <tr VALIGN="bottom">
    <td ALIGN="left" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"><font
    face="Arial"><br>
    Investments, at fair value</font></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_($* #,##0_)[semicolon]_($* (#,##0)[semicolon]_($* [dquote]-[dquote]_)[semicolon]_(@_)"><font
    face="Arial"><br>
    $ 6,843 </font></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_($* #,##0_)[semicolon]_($* (#,##0)[semicolon]_($* [dquote]-[dquote]_)[semicolon]_(@_)"></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_($* #,##0_)[semicolon]_($* (#,##0)[semicolon]_($* [dquote]-[dquote]_)[semicolon]_(@_)"><font
    face="Arial"><br>
    $ 6,580 </font></td>
  </tr>
  <tr VALIGN="bottom">
    <td ALIGN="left" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"><font
    face="Arial"><br>
    Receivables:</font></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]_)[semicolon]_(@_)"><font
    face="Arial"><br>
    </font></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]_)[semicolon]_(@_)"></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]_)[semicolon]_(@_)"><font
    face="Arial"><br>
    </font></td>
  </tr>
  <tr VALIGN="bottom">
    <td ALIGN="left" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"><font
    face="Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment income receivable</font></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]_)[semicolon]_(@_)"><font
    face="Arial">12 </font></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]_)[semicolon]_(@_)"></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]_)[semicolon]_(@_)"><font
    face="Arial">9 </font></td>
  </tr>
  <tr VALIGN="bottom">
    <td ALIGN="left" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"><font
    face="Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contributions - salary deferral</font></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]_)[semicolon]_(@_)"><font
    face="Arial">- </font></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]_)[semicolon]_(@_)"></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]_)[semicolon]_(@_)"><font
    face="Arial">32 </font></td>
  </tr>
  <tr VALIGN="bottom">
    <td ALIGN="left" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"><font
    face="Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contributions - company</font></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]_)[semicolon]_(@_)"><p
    style="border-bottom: thin solid"><font face="Arial">- </font></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]_)[semicolon]_(@_)"></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]_)[semicolon]_(@_)"><p
    style="border-bottom: thin solid"><font face="Arial">47 </font></td>
  </tr>
  <tr VALIGN="bottom">
    <td ALIGN="left" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]_)[semicolon]_(@_)"></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]_)[semicolon]_(@_)"></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]_)[semicolon]_(@_)"></td>
  </tr>
  <tr VALIGN="bottom">
    <td ALIGN="left" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"><font
    face="Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total receivables</font></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]_)[semicolon]_(@_)"><p
    style="border-bottom: thin solid"><font face="Arial">12 </font></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]_)[semicolon]_(@_)"></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]_)[semicolon]_(@_)"><p
    style="border-bottom: thin solid"><font face="Arial">88 </font></td>
  </tr>
  <tr VALIGN="bottom">
    <td ALIGN="left" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]_)[semicolon]_(@_)"></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]_)[semicolon]_(@_)"></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]_)[semicolon]_(@_)"></td>
  </tr>
  <tr VALIGN="bottom">
    <td ALIGN="left" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"><font
    face="Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets</font></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]_)[semicolon]_(@_)"><p
    style="border-bottom: thin solid"><font face="Arial">6,855 </font></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]_)[semicolon]_(@_)"></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]_)[semicolon]_(@_)"><p
    style="border-bottom: thin solid"><font face="Arial">6,668 </font></td>
  </tr>
  <tr VALIGN="bottom">
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]_)[semicolon]_(@_)"></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]_)[semicolon]_(@_)"></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]_)[semicolon]_(@_)"></td>
  </tr>
  <tr VALIGN="bottom">
    <td ALIGN="left" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"><font
    face="Arial">Net assets available for benefits</font></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_($* #,##0_)[semicolon]_($* (#,##0)[semicolon]_($* [dquote]-[dquote]_)[semicolon]_(@_)"><p
    style="border-bottom: medium double"><font face="Arial">$ 6,855 </font></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]_)[semicolon]_(@_)"></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_($* #,##0_)[semicolon]_($* (#,##0)[semicolon]_($* [dquote]-[dquote]_)[semicolon]_(@_)"><p
    style="border-bottom: medium double"><font face="Arial">$ 6,668 </font></td>
  </tr>
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td ALIGN="center" COLSPAN="4"><font face="Arial"><br>
    <br>
    <br>
    The accompanying notes are an integral part of these financial statements.</font></td>
  </tr>
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td ALIGN="right"></td>
    <td ALIGN="right"></td>
    <td ALIGN="right"></td>
    <td ALIGN="right"></td>
  </tr>
</TABLE>
</center></div><div align="center"><center>

<table border="0">
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td ALIGN="center" COLSPAN="4"><font face="Arial"><b>RETIREMENT PLAN OF<br>
    TALLEY METALS TECHNOLOGY, INC.<br>
    <br>
    </b></font></td>
  </tr>
  <tr VALIGN="bottom">
    <td ALIGN="center" COLSPAN="4"
    STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"><font face="Arial"><b><a
    name="STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS">STATEMENTS OF CHANGES IN
    NET ASSETS AVAILABLE FOR BENEFITS</a><br>
    </b>for the years ended December 31, 2000 and 1999<br>
    (dollars in thousands)<br>
    <br>
    </font></td>
  </tr>
  <tr VALIGN="bottom">
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"></td>
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:0_)"><font face="Arial"><b><u>2000 </u></b></font></td>
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:0_)"></td>
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:0_)"><font face="Arial"><b><u>1999 </u></b></font></td>
  </tr>
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td ALIGN="left"><font face="Arial"><br>
    Additions to net assets attributed to:</font></td>
    <td ALIGN="right"><font face="Arial"><br>
    </font></td>
    <td ALIGN="right"></td>
    <td ALIGN="right"><font face="Arial"><br>
    </font></td>
  </tr>
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td ALIGN="left"><font face="Arial">Investment income:</font></td>
    <td ALIGN="right"></td>
    <td ALIGN="right"></td>
    <td ALIGN="right"></td>
  </tr>
  <tr VALIGN="bottom">
    <td ALIGN="left" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"><font
    face="Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net appreciation in fair value of investments</font></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_($* #,##0_)[semicolon]_($* (#,##0)[semicolon]_($* [dquote]-[dquote]_)[semicolon]_(@_)"><font
    face="Arial">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - </font></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]_)[semicolon]_(@_)"></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_($* #,##0_)[semicolon]_($* (#,##0)[semicolon]_($* [dquote]-[dquote]_)[semicolon]_(@_)"><font
    face="Arial">$ &nbsp;&nbsp;&nbsp;338 </font></td>
  </tr>
  <tr VALIGN="bottom">
    <td ALIGN="left" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"><font
    face="Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest and Dividends</font></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]_)[semicolon]_(@_)"><p
    style="border-bottom: thin solid"><font face="Arial">200 </font></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]_)[semicolon]_(@_)"></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]_)[semicolon]_(@_)"><p
    style="border-bottom: thin solid"><font face="Arial">205 </font></td>
  </tr>
  <tr VALIGN="bottom">
    <td ALIGN="left" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]_)[semicolon]_(@_)"></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]_)[semicolon]_(@_)"></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]_)[semicolon]_(@_)"></td>
  </tr>
  <tr VALIGN="bottom">
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]_)[semicolon]_(@_)"><p
    style="border-bottom: thin solid"><font face="Arial">200 </font></td>
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]_)[semicolon]_(@_)"><p
    style="border-bottom: thin solid"><font face="Arial">543 </font></td>
  </tr>
  <tr VALIGN="bottom">
    <td ALIGN="left" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"><font
    face="Arial">Contributions:</font></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]_)[semicolon]_(@_)"></td>
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]_)[semicolon]_(@_)"></td>
  </tr>
  <tr VALIGN="bottom">
    <td ALIGN="left" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"><font
    face="Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Employer</font></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]_)[semicolon]_(@_)"><font
    face="Arial">659 </font></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]_)[semicolon]_(@_)"></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]_)[semicolon]_(@_)"><font
    face="Arial">772 </font></td>
  </tr>
  <tr VALIGN="bottom">
    <td ALIGN="left" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"><font
    face="Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Participant</font></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]_)[semicolon]_(@_)"><font
    face="Arial">469 </font></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]_)[semicolon]_(@_)"></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]_)[semicolon]_(@_)"><font
    face="Arial">592 </font></td>
  </tr>
  <tr VALIGN="bottom">
    <td ALIGN="left" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"><font
    face="Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Rollover</font></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]_)[semicolon]_(@_)"><p
    style="border-bottom: thin solid"><font face="Arial">217 </font></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]_)[semicolon]_(@_)"></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]_)[semicolon]_(@_)"><p
    style="border-bottom: thin solid"><font face="Arial">1 </font></td>
  </tr>
  <tr VALIGN="bottom">
    <td ALIGN="left" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]_)[semicolon]_(@_)"></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]_)[semicolon]_(@_)"></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]_)[semicolon]_(@_)"></td>
  </tr>
  <tr VALIGN="bottom">
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]_)[semicolon]_(@_)"><p
    style="border-bottom: thin solid"><font face="Arial">1,345 </font></td>
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]_)[semicolon]_(@_)"><p
    style="border-bottom: thin solid"><font face="Arial">1,365 </font></td>
  </tr>
  <tr VALIGN="bottom">
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]_)[semicolon]_(@_)"></td>
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]_)[semicolon]_(@_)"></td>
  </tr>
  <tr VALIGN="bottom">
    <td ALIGN="left" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"><font
    face="Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total additions</font></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]_)[semicolon]_(@_)"><p
    style="border-bottom: thin solid"><font face="Arial">1,545 </font></td>
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]_)[semicolon]_(@_)"><p
    style="border-bottom: thin solid"><font face="Arial">1,908 </font></td>
  </tr>
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td ALIGN="right"></td>
    <td ALIGN="right"></td>
    <td ALIGN="right"></td>
    <td ALIGN="right"></td>
  </tr>
  <tr VALIGN="bottom">
    <td ALIGN="left" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"><font
    face="Arial">Deductions from net assets attributed to:</font></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]_)[semicolon]_(@_)"></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]_)[semicolon]_(@_)"></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]_)[semicolon]_(@_)"></td>
  </tr>
  <tr VALIGN="bottom">
    <td ALIGN="left" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"><font
    face="Arial">Net depreciation in fair value of investments</font></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]_)[semicolon]_(@_)"><font
    face="Arial">165 </font></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]_)[semicolon]_(@_)"></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]_)[semicolon]_(@_)"><font
    face="Arial">- </font></td>
  </tr>
  <tr VALIGN="bottom">
    <td ALIGN="left" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"><font
    face="Arial">Benefits paid to participants</font></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]_)[semicolon]_(@_)"><font
    face="Arial">1,188 </font></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]_)[semicolon]_(@_)"></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]_)[semicolon]_(@_)"><font
    face="Arial">1,240 </font></td>
  </tr>
  <tr VALIGN="bottom">
    <td ALIGN="left" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"><font
    face="Arial">Administrative expenses</font></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]_)[semicolon]_(@_)"><p
    style="border-bottom: thin solid"><font face="Arial">5 </font></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]_)[semicolon]_(@_)"></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]_)[semicolon]_(@_)"><p
    style="border-bottom: thin solid"><font face="Arial">7 </font></td>
  </tr>
  <tr VALIGN="bottom">
    <td ALIGN="left" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]_)[semicolon]_(@_)"></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]_)[semicolon]_(@_)"></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]_)[semicolon]_(@_)"></td>
  </tr>
  <tr VALIGN="bottom">
    <td ALIGN="left" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"><font
    face="Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total deductions</font></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]_)[semicolon]_(@_)"><p
    style="border-bottom: thin solid"><font face="Arial">1,358 </font></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]_)[semicolon]_(@_)"></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]_)[semicolon]_(@_)"><p
    style="border-bottom: thin solid"><font face="Arial">1,247 </font></td>
  </tr>
  <tr VALIGN="bottom">
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]_)[semicolon]_(@_)"></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]_)[semicolon]_(@_)"></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]_)[semicolon]_(@_)"></td>
  </tr>
  <tr VALIGN="bottom">
    <td ALIGN="left" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"><font
    face="Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
    increase</font></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]_)[semicolon]_(@_)"><font
    face="Arial">187 </font></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]_)[semicolon]_(@_)"></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]_)[semicolon]_(@_)"><font
    face="Arial">661 </font></td>
  </tr>
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td ALIGN="right"></td>
    <td ALIGN="right"></td>
    <td ALIGN="right"></td>
    <td ALIGN="right"></td>
  </tr>
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td ALIGN="left"><font face="Arial">Net assets available for benefits:</font></td>
    <td ALIGN="right"></td>
    <td ALIGN="right"></td>
    <td ALIGN="right"></td>
  </tr>
  <tr VALIGN="bottom">
    <td ALIGN="left" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"><font
    face="Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Beginning
    of year</font></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]_)[semicolon]_(@_)"><p
    style="border-bottom: thin solid"><font face="Arial">6,668 </font></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]_)[semicolon]_(@_)"></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]_)[semicolon]_(@_)"><p
    style="border-bottom: thin solid"><font face="Arial">6,007 </font></td>
  </tr>
  <tr VALIGN="bottom">
    <td ALIGN="left" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]_)[semicolon]_(@_)"></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]_)[semicolon]_(@_)"></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]_)[semicolon]_(@_)"></td>
  </tr>
  <tr VALIGN="bottom">
    <td ALIGN="left" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"><font
    face="Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;End
    of year</font></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_($* #,##0_)[semicolon]_($* (#,##0)[semicolon]_($* [dquote]-[dquote]_)[semicolon]_(@_)"><p
    style="border-bottom: medium double"><font face="Arial">$ 6,855 </font></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]_)[semicolon]_(@_)"></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_($* #,##0_)[semicolon]_($* (#,##0)[semicolon]_($* [dquote]-[dquote]_)[semicolon]_(@_)"><p
    style="border-bottom: medium double"><font face="Arial">$ 6,668 </font></td>
  </tr>
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td ALIGN="center" COLSPAN="4"><font face="Arial"><br>
    <br>
    <br>
    The accompanying notes are an integral part of these financial statements.<br>
    <br>
    </font></td>
  </tr>
</TABLE>
</center></div><div align="left">

<table border="0" width="686">
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td ALIGN="center" COLSPAN="3" width="655"><font face="Arial"><b>RETIREMENT PLAN OF<br>
    TALLEY METALS TECHNOLOGY, INC.<br>
    </b></font><p><font face="Arial"><b><a name="NOTES TO FINANCIAL STATEMENTS">NOTES TO
    FINANCIAL STATEMENTS<br>
    </a><br>
    </b></font></td>
  </tr>
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td ALIGN="left" width="23"><font face="Arial">1.</font></td>
    <td ALIGN="left" width="625"><font face="Arial"><b><u>Description of Plan:</u></b></font></td>
    <td ALIGN="right" width="26"></td>
  </tr>
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td ALIGN="right" width="23"></td>
    <td ALIGN="left" colspan="2" rowspan="3" width="628"><font face="Arial"><br>
    The following brief description of the Retirement Plan of Talley Metals Technology, Inc.
    (the<br>
    Plan) is provided for general information purposes only. Participants should refer to the<br>
    Plan document for more complete information.<br>
    <br>
    </font></td>
  </tr>
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td ALIGN="right" width="23"></td>
  </tr>
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td ALIGN="right" width="23"></td>
  </tr>
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td ALIGN="right" width="23"></td>
    <td ALIGN="right" width="625"><p align="left"><font face="Arial"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>General:</u></b></font></td>
    <td ALIGN="left" width="26"></td>
  </tr>
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td ALIGN="right" width="23"></td>
    <td ALIGN="left" colspan="2" rowspan="7" width="628"><font face="Arial"><br>
    The Plan is a defined contribution plan covering all employees of Talley Metals<br>
    Technology, Inc. and Amcan Specialty Steels, Inc. (collectively called the Company) who<br>
    have one year of service and are age eighteen or older. It is subject to provisions of the<br>
    Employee Retirement Income Security Act of 1974 (ERISA). Prior to June 1, 1998, the<br>
    Plan had been designed as a money purchase pension plan. Any contributions made<br>
    prior to that date and earnings on those contributions will be subject to the terms of
    those<br>
    plan documents.<br>
    </font></td>
  </tr>
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td ALIGN="right" width="23"></td>
  </tr>
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td ALIGN="right" width="23"></td>
  </tr>
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td ALIGN="right" width="23"></td>
  </tr>
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td ALIGN="right" width="23"></td>
  </tr>
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td ALIGN="right" width="23"></td>
  </tr>
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td ALIGN="right" width="23"></td>
  </tr>
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td ALIGN="right" width="23"></td>
    <td ALIGN="left" colspan="2" rowspan="3" width="628"><font face="Arial"><br>
    Effective July 1, 1999, Amcan Specialty Steels, Inc. was merged into Talley Metals<br>
    Technology, Inc., at which time these employees became eligible to participate in the<br>
    Plan.<br>
    <br>
    </font></td>
  </tr>
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td ALIGN="right" width="23"></td>
  </tr>
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td ALIGN="right" width="23"></td>
  </tr>
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td ALIGN="right" width="23"></td>
    <td ALIGN="right" width="625"><p align="left"><font face="Arial"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Contributions:</u></b></font></td>
    <td ALIGN="left" width="26"></td>
  </tr>
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td ALIGN="right" width="23"></td>
    <td ALIGN="left" rowspan="2" width="625"><font face="Arial"><br>
    Each participant may, at their discretion, contribute between 1% and 15% of their<br>
    compensation through elective deferrals.</font></td>
    <td ALIGN="right" width="26"></td>
  </tr>
  <tr VALIGN="bottom">
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    width="23"></td>
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    width="26"></td>
  </tr>
  <tr VALIGN="bottom">
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    width="23"></td>
    <td ALIGN="left" STYLE="vnd.ms-excel.numberformat:@" rowspan="6" width="625"><font
    face="Arial"><br>
    The Company makes annual Guaranteed Contributions to the Plan on behalf of<br>
    participants. The amount of such contributions is five percent of each participant's<br>
    earnings during the calendar year. In addition, the employer also makes a matching<br>
    contribution of 100% of the first 3% of the participant's total earnings that a
    participant<br>
    contributes to the Plan. Participants may also contribute amounts representing<br>
    contributions from other qualified defined benefit or defined contribution plans.</font></td>
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    width="26"></td>
  </tr>
  <tr VALIGN="bottom">
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    width="23"></td>
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    width="26"></td>
  </tr>
  <tr VALIGN="bottom">
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    width="23"></td>
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    width="26"></td>
  </tr>
  <tr VALIGN="bottom">
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    width="23"></td>
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    width="26"></td>
  </tr>
  <tr VALIGN="bottom">
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    width="23"></td>
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    width="26"></td>
  </tr>
  <tr VALIGN="bottom">
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    width="23"></td>
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    width="26"></td>
  </tr>
  <tr VALIGN="bottom">
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    width="23"></td>
    <td ALIGN="left" STYLE="vnd.ms-excel.numberformat:@" rowspan="4" width="625"><font
    face="Arial"><br>
    Participants may direct all contributions in one or more of the investment options in five<br>
    percent increments as directed by the participants based on their personal investment<br>
    goals. The Plan currently offers seven mutual funds, a fixed income fund, and the stock of<br>
    Carpenter Technology Corporation.<br>
    <br>
    </font></td>
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    width="26"></td>
  </tr>
  <tr VALIGN="bottom">
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    width="23"></td>
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    width="26"></td>
  </tr>
  <tr VALIGN="bottom">
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    width="23"></td>
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    width="26"></td>
  </tr>
  <tr VALIGN="bottom">
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    width="23"></td>
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    width="26"></td>
  </tr>
</TABLE>
</div><div align="center"><center>

<table border="0" width="761">
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td ALIGN="right" width="24"></td>
    <td ALIGN="right" width="725" colspan="2"><p align="left"><font face="Arial"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Participant's
    Accounts:</u></b></font></td>
  </tr>
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td ALIGN="right" width="24"></td>
    <td ALIGN="left" colspan="2" rowspan="4" width="729"><font face="Arial"><br>
    Participant accounts are maintained and updated by the recordkeeper, Marshall &amp; Ilsley<br>
    (M&amp;I), which also acts as the trustee. Each participant's account is credited with the<br>
    participant's contribution, the Company's contributions and an allocation of Plan
    investment<br>
    earnings.<br>
    <br>
    </font></td>
  </tr>
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td ALIGN="right" width="24"></td>
  </tr>
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td ALIGN="right" width="24"></td>
  </tr>
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td ALIGN="right" width="24"></td>
  </tr>
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td ALIGN="right" width="24"></td>
    <td ALIGN="right" width="725" colspan="2"><p align="left"><font face="Arial"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Vesting:</u></b></font></td>
  </tr>
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td ALIGN="right" width="24"></td>
    <td ALIGN="left" colspan="2" width="729"><font face="Arial"><br>
    Participants are 100% vested in all contributions.<br>
    <br>
    </font></td>
  </tr>
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td ALIGN="right" width="24"></td>
    <td ALIGN="right" colspan="2" width="729"><p align="left"><font face="Arial"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Participant
    Loans:</u></b></font></td>
  </tr>
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td ALIGN="right" width="24"></td>
    <td ALIGN="left" colspan="2" rowspan="6" width="729"><font face="Arial"><br>
    Loans are available to participants who are active employees of the Company.<br>
    Participants are subject to certain restrictions on their number of loans, amount and
    terms of<br>
    repayment. Interest is charged at the prime rate for commercial lenders at the time the<br>
    loan is initiated, plus one percent. Loan repayments must be made under a level<br>
    amortization schedule through regular payroll deductions, and payment in full is required
    at<br>
    the time of the participant's separation.<br>
    <br>
    </font></td>
  </tr>
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td ALIGN="right" width="24"></td>
  </tr>
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td ALIGN="right" width="24"></td>
  </tr>
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td ALIGN="right" width="24"></td>
  </tr>
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td ALIGN="right" width="24"></td>
  </tr>
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td ALIGN="right" width="24"></td>
  </tr>
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td ALIGN="right" width="24"></td>
    <td ALIGN="right" colspan="2" width="729"><p align="left"><font face="Arial"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Payment
    of Benefits:</u></b></font></td>
  </tr>
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td ALIGN="right" width="24"></td>
    <td ALIGN="left" colspan="2" rowspan="5" width="729"><font face="Arial"><br>
    On termination of service due to death, disability, or retirement, a participant is
    entitled to<br>
    full distribution of all amounts credited to his or her account. For termination of
    service due<br>
    to other reasons, a participant is entitled to the amount credited to his or her account. <br>
    Payments will be paid out in a lump sum or under a variety of annuity forms available for<br>
    election by the participant. Benefit payments are recorded upon distribution.<br>
    <br>
    </font></td>
  </tr>
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td ALIGN="right" width="24"></td>
  </tr>
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td ALIGN="right" width="24"></td>
  </tr>
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td ALIGN="right" width="24"></td>
  </tr>
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td ALIGN="right" width="24"></td>
  </tr>
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td ALIGN="left" width="24" valign="top"><font face="Arial">2.<br>
    <br>
    </font></td>
    <td ALIGN="left" colspan="2" width="729" valign="top"><font face="Arial"><b><u>Summary of
    Significant Accounting Policies:<br>
    <br>
    </u></b></font></td>
  </tr>
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td ALIGN="right" width="24"></td>
    <td ALIGN="center" width="25" valign="top"><font face="Arial">A.</font></td>
    <td ALIGN="left" width="700" rowspan="2"><font face="Arial">The financial statements of
    the Plan are prepared under the accrual method of<br>
    accounting.<br>
    <br>
    </font></td>
  </tr>
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td ALIGN="right" width="24"></td>
    <td ALIGN="center" width="25"></td>
  </tr>
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td ALIGN="right" width="24"></td>
    <td ALIGN="center" width="25" valign="top"><font face="Arial">B.</font></td>
    <td ALIGN="left" width="700" rowspan="5" valign="top"><font face="Arial">The preparation
    of financial statements in conformity with accounting principles<br>
    generally accepted in the United States of America requires management to make<br>
    estimates and assumptions that affect the reported amounts of assets, liabilities,<br>
    and changes therein, and disclosure of contingent assets and liabilities. Actual<br>
    results could differ from those estimates.<br>
    <br>
    </font></td>
  </tr>
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td ALIGN="right" width="24"></td>
    <td ALIGN="center" width="25" valign="top"></td>
  </tr>
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td ALIGN="right" width="24"></td>
    <td ALIGN="center" width="25" valign="top"></td>
  </tr>
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td ALIGN="right" width="24"></td>
    <td ALIGN="center" width="25" valign="top"></td>
  </tr>
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td ALIGN="right" width="24"></td>
    <td ALIGN="center" width="25" valign="top"></td>
  </tr>
</TABLE>
</center></div><div align="left">

<table border="0" width="720">
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td ALIGN="right" width="20"></td>
    <td ALIGN="center" width="1" valign="top"><font face="Arial">C.</font></td>
    <td ALIGN="left" width="671" colspan="3" rowspan="7" valign="top"><font face="Arial">The
    investment in the M&amp;I Stable Principal Fund is stated at contract value, which<br>
    represents contributions made under the contract, plus earnings, less participant<br>
    withdrawals and administrative expenses. The investment in the other trust funds<br>
    are stated at their fair value, based on the current market values of the underlying<br>
    assets of the funds, or as determined by the trustee. Purchases and sales of<br>
    investments are reflected on a trade-date basis. Gain or loss on sales of<br>
    investments is based on average cost. Dividend income is recorded on the<br>
    ex-dividend date. Income from other investments is recorded as earned on an<br>
    accrual basis.<br>
    <br>
    </font></td>
  </tr>
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td ALIGN="right" width="20"></td>
    <td ALIGN="center" width="1" valign="top"></td>
  </tr>
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td ALIGN="right" width="20"></td>
    <td ALIGN="center" width="1" valign="top"></td>
  </tr>
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td ALIGN="right" width="20"></td>
    <td ALIGN="center" width="1" valign="top"></td>
  </tr>
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td ALIGN="right" width="20"></td>
    <td ALIGN="center" width="1" valign="top"></td>
  </tr>
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td ALIGN="right" width="20"></td>
    <td ALIGN="center" width="1" valign="top"></td>
  </tr>
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td ALIGN="right" width="20"></td>
    <td ALIGN="center" width="1" valign="top"></td>
  </tr>
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td ALIGN="right" width="20" valign="top"></td>
    <td ALIGN="center" width="1" valign="top"><font face="Arial">D.</font></td>
    <td ALIGN="left" width="671" valign="top" colspan="3" rowspan="3"><font face="Arial">The
    net appreciation (depreciation) in the fair value of investments in the statement<br>
    of changes in net assets available for benefits consists of realized gains or losses<br>
    and unrealized appreciation (depreciation) on investments.<br>
    <br>
    </font></td>
  </tr>
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td ALIGN="right" width="20"></td>
    <td ALIGN="center" width="1"></td>
  </tr>
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td ALIGN="right" width="20"></td>
    <td ALIGN="center" width="1"></td>
  </tr>
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td ALIGN="right" width="20"></td>
    <td ALIGN="center" width="1" valign="top"><font face="Arial">E.</font></td>
    <td ALIGN="left" width="486" valign="top"><font face="Arial">Benefits are recorded when
    paid.<br>
    <br>
    </font></td>
    <td ALIGN="right" width="103"></td>
    <td ALIGN="right" width="82"></td>
  </tr>
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td ALIGN="right" width="20"></td>
    <td ALIGN="center" width="1" valign="top"><font face="Arial">F.</font></td>
    <td ALIGN="left" width="671" colspan="3" rowspan="5" valign="top"><font face="Arial">Investments
    are exposed to various risks, such as interest rate, market and credit<br>
    risks. Due to the level of risk associated with certain investments and the level of<br>
    uncertainty related to changes in the value of investments, it is reasonably possible<br>
    that changes in these risks in the near term could materially affect the amounts<br>
    reported in the statement of net assets available for benefits and the statement of<br>
    changes in net assets available for benefits.<br>
    <br>
    </font></td>
  </tr>
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td ALIGN="right" width="20"></td>
    <td ALIGN="center" width="1" valign="top"></td>
  </tr>
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td ALIGN="right" width="20"></td>
    <td ALIGN="center" width="1" valign="top"></td>
  </tr>
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td ALIGN="right" width="20"></td>
    <td ALIGN="center" width="1" valign="top"></td>
  </tr>
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td ALIGN="right" width="20"></td>
    <td ALIGN="center" width="1" valign="top"></td>
  </tr>
  <tr VALIGN="bottom">
    <td ALIGN="left" STYLE="vnd.ms-excel.numberformat:@" width="20"><font face="Arial">3.</font></td>
    <td ALIGN="left" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    width="670" colspan="4"><font face="Arial"><b><u>Investments:</u></b></font></td>
  </tr>
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td ALIGN="right" width="20"></td>
    <td ALIGN="left" width="670" colspan="4" rowspan="2"><font face="Arial"><br>
    The following presents investments that represent 5 percent or more of the Plan's net<br>
    assets. (Shares and dollars in thousands)
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
  </tr>
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td ALIGN="right" width="20"></td>
  </tr>
  <tr>
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    width="20"></td>
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    width="1"></td>
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    width="486"></td>
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:@" width="185" colspan="2"><font
    face="Arial"><b><u><p align="right"></u>at December 31</b></font></td>
  </tr>
  <tr VALIGN="bottom">
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    width="20"></td>
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    width="1"></td>
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    width="486"></td>
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:@" width="103"><font face="Arial"><b><u>2000
    </u></b></font></td>
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:@" width="82"><font face="Arial"><b><u>1999
    </u></b></font></td>
  </tr>
  <tr VALIGN="bottom">
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    width="20"></td>
    <td ALIGN="left" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    width="485" colspan="2"><font face="Arial"><br>
    M&amp;I Stable Principal Fund, 2,489 and 2,167 shares, respectively</font></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_($* #,##0_)[semicolon]_($* (#,##0)[semicolon]_($* [dquote]-[dquote]_)[semicolon]_(@_)"
    width="103"><font face="Arial"><br>
    $ 2,489 </font></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_($* #,##0_)[semicolon]_($* (#,##0)[semicolon]_($* [dquote]-[dquote]_)[semicolon]_(@_)"
    width="82"><font face="Arial"><br>
    $ 2,167 </font></td>
  </tr>
  <tr VALIGN="bottom">
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    width="20"></td>
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    width="1"></td>
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    width="486"></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_($* #,##0_)[semicolon]_($* (#,##0)[semicolon]_($* [dquote]-[dquote]_)[semicolon]_(@_)"
    width="103"></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_($* #,##0_)[semicolon]_($* (#,##0)[semicolon]_($* [dquote]-[dquote]_)[semicolon]_(@_)"
    width="82"></td>
  </tr>
  <tr VALIGN="bottom">
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    width="20"></td>
    <td ALIGN="left" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    width="485" colspan="2"><font face="Arial">Vanguard Wellington Fund, 14 and 14 shares,
    respectively</font></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_($* #,##0_)[semicolon]_($* (#,##0)[semicolon]_($* [dquote]-[dquote]_)[semicolon]_(@_)"
    width="103"><font face="Arial">$ &nbsp;&nbsp;&nbsp;400 </font></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_($* #,##0_)[semicolon]_($* (#,##0)[semicolon]_($* [dquote]-[dquote]_)[semicolon]_(@_)"
    width="82"><font face="Arial">$&nbsp;&nbsp;&nbsp; 402 </font></td>
  </tr>
  <tr VALIGN="bottom">
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    width="20"></td>
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    width="1"></td>
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    width="486"></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_($* #,##0_)[semicolon]_($* (#,##0)[semicolon]_($* [dquote]-[dquote]_)[semicolon]_(@_)"
    width="103"></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_($* #,##0_)[semicolon]_($* (#,##0)[semicolon]_($* [dquote]-[dquote]_)[semicolon]_(@_)"
    width="82"></td>
  </tr>
  <tr VALIGN="bottom">
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    width="20"></td>
    <td ALIGN="left" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    width="485" colspan="2"><font face="Arial">Vanguard Windsor II Fund, 24 and 33 shares,
    respectively</font></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_($* #,##0_)[semicolon]_($* (#,##0)[semicolon]_($* [dquote]-[dquote]_)[semicolon]_(@_)"
    width="103"><font face="Arial">$&nbsp;&nbsp;&nbsp; 656 </font></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_($* #,##0_)[semicolon]_($* (#,##0)[semicolon]_($* [dquote]-[dquote]_)[semicolon]_(@_)"
    width="82"><font face="Arial">$&nbsp;&nbsp;&nbsp; 834 </font></td>
  </tr>
  <tr VALIGN="bottom">
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    width="20"></td>
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    width="1"></td>
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    width="486"></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_($* #,##0_)[semicolon]_($* (#,##0)[semicolon]_($* [dquote]-[dquote]_)[semicolon]_(@_)"
    width="103"></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_($* #,##0_)[semicolon]_($* (#,##0)[semicolon]_($* [dquote]-[dquote]_)[semicolon]_(@_)"
    width="82"></td>
  </tr>
  <tr VALIGN="bottom">
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    width="20"></td>
    <td ALIGN="left" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    width="485" colspan="2"><font face="Arial">Vanguard Index 500 Fund, 10 and 12 shares,
    respectively</font></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_($* #,##0_)[semicolon]_($* (#,##0)[semicolon]_($* [dquote]-[dquote]_)[semicolon]_(@_)"
    width="103"><font face="Arial">$ 1,198 </font></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_($* #,##0_)[semicolon]_($* (#,##0)[semicolon]_($* [dquote]-[dquote]_)[semicolon]_(@_)"
    width="82"><font face="Arial">$ 1,675 </font></td>
  </tr>
  <tr VALIGN="bottom">
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    width="20"></td>
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    width="1"></td>
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    width="486"></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_($* #,##0_)[semicolon]_($* (#,##0)[semicolon]_($* [dquote]-[dquote]_)[semicolon]_(@_)"
    width="103"></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_($* #,##0_)[semicolon]_($* (#,##0)[semicolon]_($* [dquote]-[dquote]_)[semicolon]_(@_)"
    width="82"></td>
  </tr>
  <tr VALIGN="bottom">
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    width="20"></td>
    <td ALIGN="left" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    width="485" colspan="2"><font face="Arial">Vanguard U.S. Growth Fund, 29 and 20 shares,
    respectively</font></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_($* #,##0_)[semicolon]_($* (#,##0)[semicolon]_($* [dquote]-[dquote]_)[semicolon]_(@_)"
    width="103"><font face="Arial">$&nbsp;&nbsp;&nbsp; 794 </font></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_($* #,##0_)[semicolon]_($* (#,##0)[semicolon]_($* [dquote]-[dquote]_)[semicolon]_(@_)"
    width="82"><font face="Arial">$&nbsp;&nbsp;&nbsp; 878 </font></td>
  </tr>
</TABLE>
</div><div align="left">

<table border="0" width="700" height="942">
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td ALIGN="right" width="15" height="36"></td>
    <td ALIGN="left" width="655" height="86" rowspan="3" colspan="4"><font face="Arial"><br>
    <br>
    During 2000 and 1999, the Plan's investments (including gains and losses on investments
    bought and sold, as well as held during the year) depreciated and appreciated in value by
    $165,000 and $338,000 respectively, as follows:</font></td>
  </tr>
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td ALIGN="right" width="15" height="32"></td>
  </tr>
  <tr VALIGN="bottom">
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    width="15" height="18"></td>
  </tr>
  <tr VALIGN="bottom">
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    width="15" height="18"></td>
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    width="445" height="18"></td>
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    width="29" height="18"></td>
    <td ALIGN="center" COLSPAN="2" STYLE="vnd.ms-excel.numberformat:@" width="187" height="18"><font
    face="Arial">(in thousands)</font></td>
  </tr>
  <tr VALIGN="bottom">
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    width="15" height="19"></td>
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    width="445" height="19"></td>
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    width="29" height="19"></td>
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:@" width="99" height="19"><font
    face="Arial"><b><u>2000 </u></b></font></td>
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:@" width="82" height="19"><font
    face="Arial"><b><u>1999 </u></b></font></td>
  </tr>
  <tr VALIGN="bottom">
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    width="15" height="18"></td>
    <td ALIGN="left" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    width="445" height="18"><font face="Arial">Common stock</font></td>
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    width="29" height="18"></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_($* #,##0_)[semicolon]_($* (#,##0)[semicolon]_($* [dquote]-[dquote]_)[semicolon]_(@_)"
    width="99" height="18"><font face="Arial">$ 135&nbsp; </font></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_($* #,##0_)[semicolon]_($* (#,##0)[semicolon]_($* [dquote]-[dquote]_)[semicolon]_(@_)"
    width="82" height="18"><font face="Arial">$ (43)</font></td>
  </tr>
  <tr VALIGN="bottom">
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    width="15" height="18"></td>
    <td ALIGN="left" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    width="445" height="18"><font face="Arial">Mutual funds</font></td>
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    width="29" height="18"></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]_)[semicolon]_(@_)"
    width="99" height="18"><p style="border-bottom: thin solid"><font face="Arial">(300)</font></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]_)[semicolon]_(@_)"
    width="82" height="18"><p style="border-bottom: thin solid"><font face="Arial">381&nbsp; </font></td>
  </tr>
  <tr VALIGN="bottom">
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    width="15" height="36"></td>
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    width="445" height="36"></td>
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    width="29" height="36"></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_($* #,##0_)[semicolon]_($* (#,##0)[semicolon]_($* [dquote]-[dquote]_)[semicolon]_(@_)"
    width="99" height="36"><p style="border-bottom: medium double"><font face="Arial">$ (165)</font></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_($* #,##0_)[semicolon]_($* (#,##0)[semicolon]_($* [dquote]-[dquote]_)[semicolon]_(@_)"
    width="82" height="36"><p style="border-bottom: medium double"><font face="Arial">$
    338&nbsp; </font></td>
  </tr>
  <tr>
    <td ALIGN="left" STYLE="vnd.ms-excel.numberformat:@" width="15" height="19" valign="top"></td>
    <td ALIGN="left" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    width="445" height="19" valign="top"></td>
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    width="29" height="19" valign="top"></td>
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    width="99" height="19" valign="top"></td>
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    width="82" height="19" valign="top"></td>
  </tr>
  <tr VALIGN="bottom">
    <td ALIGN="left" STYLE="vnd.ms-excel.numberformat:@" width="15" height="19" valign="top"><font
    face="Arial">4.</font></td>
    <td ALIGN="left" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    width="445" height="19" valign="top"><font face="Arial"><b><u>Tax Status of the Plan:<br>
    </u></b></font></td>
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    width="29" height="19" valign="top"></td>
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    width="99" height="19" valign="top"></td>
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    width="82" height="19" valign="top"></td>
  </tr>
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td ALIGN="right" width="15" height="36"></td>
    <td ALIGN="left" width="655" height="38" colspan="4" rowspan="2" valign="top"><font
    face="Arial">The Internal Revenue Service has determined and informed the Company by a
    letter dated<br>
    December 20, 1999, that the Plan is qualified and that the trust established under the
    Plan<br>
    is tax-exempt, under the appropriate sections of the Internal Revenue Code (the Code). <br>
    The Plan administrator believes the Plan is currently being operated in compliance with<br>
    applicable sections of the Code.</font></td>
  </tr>
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td ALIGN="right" width="15" height="1"></td>
  </tr>
  <tr VALIGN="bottom">
    <td ALIGN="left" STYLE="vnd.ms-excel.numberformat:@" width="15" height="19" valign="top"><font
    face="Arial">5.</font></td>
    <td ALIGN="left" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    width="445" height="19" valign="top"><font face="Arial"><b><u>Administrative Expenses:<br>
    </u></b></font></td>
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    width="29" height="19" valign="top"></td>
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    width="99" height="19" valign="top"></td>
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    width="82" height="19" valign="top"></td>
  </tr>
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td ALIGN="right" width="15" height="36"></td>
    <td ALIGN="left" width="655" height="72" colspan="4" rowspan="2" valign="top"><font
    face="Arial">The participants are assessed a fee for loan originations. In addition,
    investment income<br>
    is shown net of investment management fees. All other expenses are paid by the<br>
    Company.</font></td>
  </tr>
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td ALIGN="right" width="15" height="18"></td>
  </tr>
  <tr VALIGN="bottom">
    <td ALIGN="left" STYLE="vnd.ms-excel.numberformat:@" width="15" height="19" valign="top"><font
    face="Arial">6.<br>
    </font></td>
    <td ALIGN="left" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    width="445" height="19" valign="top"><font face="Arial"><b><u>Plan Termination:<br>
    </u></b></font></td>
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    width="29" height="19"></td>
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    width="99" height="19"></td>
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    width="82" height="19"></td>
  </tr>
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td ALIGN="right" width="15" height="36"></td>
    <td ALIGN="left" width="655" height="61" colspan="4" rowspan="2" valign="top"><font
    face="Arial">Although it has not expressed any intent to do so, the Company has the right
    under the Plan<br>
    to discontinue its contributions at any time and to terminate the Plan subject to the<br>
    provisions of ERISA.</font></td>
  </tr>
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td ALIGN="right" width="15" height="7"></td>
  </tr>
  <tr VALIGN="bottom">
    <td ALIGN="left" STYLE="vnd.ms-excel.numberformat:@" width="15" height="19" valign="top"><font
    face="Arial">7.</font></td>
    <td ALIGN="left" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    width="445" height="19" valign="top"><font face="Arial"><b><u>Related Party Transactions:<br>
    </u></b></font></td>
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    width="29" height="19" valign="top"></td>
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    width="99" height="19" valign="top"></td>
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    width="82" height="19" valign="top"></td>
  </tr>
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td ALIGN="right" width="15" height="36"></td>
    <td ALIGN="left" width="655" height="73" colspan="4" rowspan="2" valign="top"><font
    face="Arial">Certain Plan investments are shares of mutual funds managed by Marshall &amp;
    Ilsley. Marshall<br>
    &amp; Ilsley is the trustee as defined by the Plan and, therefore, these transactions
    qualify as<br>
    party-in-interest. Loan origination fees paid by plan participants to Marshall &amp;
    Ilsley for the<br>
    years ended December 31, 2000 and 1999 were $5,000 and $7,000 respectively.</font></td>
  </tr>
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td ALIGN="right" width="15" height="1"></td>
  </tr>
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td ALIGN="right" width="15" height="18" valign="top">8.</td>
    <td ALIGN="right" width="655" height="18" colspan="4" valign="top"><p align="left"><font
    face="Arial"><u><strong>Subsequent Event:</strong></u><br>
    <br>
    Effective July 1, 2001, salaried exempt employees of the Company will become participants<br>
    in the Savings Plan of Carpenter Technology Corporation.&nbsp; At that time, they will be
    given the<br>
    election to retain their balance in the Plan or transfer it to the Savings Plan of
    Carpenter<br>
    Technology Corporation.</font></td>
  </tr>
</TABLE>
</div>

<table border="1" height="564">
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td ALIGN="center" COLSPAN="4" height="19"><font face="Arial" size="3"><b>Schedule H, line
    4i - <a name="Schedule of Assets Held at End of Year">Schedule of Assets Held at End of
    Year</a></b></font></td>
  </tr>
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td ALIGN="center" COLSPAN="4" height="19"><font face="Arial" size="3"><b>Retirement Plan
    of Talley Metals Technology, Inc.</b></font></td>
  </tr>
  <tr VALIGN="bottom">
    <td ALIGN="center" COLSPAN="4" STYLE="vnd.ms-excel.numberformat:@" height="19"><font
    face="Arial" size="3"><b>as of December 31, 2000</b></font></td>
  </tr>
  <tr VALIGN="bottom">
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:@" height="16"></td>
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    height="16"></td>
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    height="16"></td>
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    height="16"></td>
  </tr>
  <tr VALIGN="bottom">
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:@" height="17"></td>
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    height="17"></td>
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    height="17"></td>
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    height="17"></td>
  </tr>
  <tr VALIGN="bottom">
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:@" height="16"></td>
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    height="16"></td>
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    height="16"></td>
    <td ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    height="16"></td>
  </tr>
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td ALIGN="right" height="16"></td>
    <td ALIGN="right" height="16"></td>
    <td ALIGN="right" height="16"></td>
    <td ALIGN="right" height="16"></td>
  </tr>
  <tr ALIGN="center" VALIGN="bottom">
    <td STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)" valign="top"
    height="48"><font face="Arial" size="2"><b>(A)</b></font></td>
    <td STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)" valign="top"
    height="48"><p align="center"><font face="Arial" size="2"><b>(B)<br>
    Identity of issue, borrower, lessor or similar party</b></font></td>
    <td STYLE="vnd.ms-excel.numberformat:@" valign="top" height="48"><font face="Arial"
    size="2"><b>(C) Description of investment, including<br>
    maturity date, rate of interest, collateral,<br>
    par or maturity value</b></font></td>
    <td STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)" valign="top"
    height="48"><p align="center"><font face="Arial" size="2"><b>(E)<br>
    Current<br>
    Value</b></font></td>
  </tr>
  <tr VALIGN="bottom">
    <td ALIGN="center" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    height="16"><font face="Arial" size="2">*</font></td>
    <td ALIGN="left" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    height="16"><font face="Arial" size="2">M&amp;I Stable Principal Fund</font></td>
    <td ALIGN="left" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    height="16"><font face="Arial" size="2">Fixed income funds</font></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_($* #,##0_)[semicolon]_($* (#,##0)[semicolon]_($* [dquote]-[dquote]_)[semicolon]_(@_)"
    height="16"><font face="Arial" size="2">$ 2,488,709 </font></td>
  </tr>
  <tr VALIGN="bottom">
    <td ALIGN="center" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    height="16"></td>
    <td ALIGN="left" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    height="16"><font face="Arial" size="2">Vanguard Wellington Fund</font></td>
    <td ALIGN="left" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    height="16"><font face="Arial" size="2">Mutual fund</font></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_($* #,##0_)[semicolon]_($* (#,##0)[semicolon]_($* [dquote]-[dquote]_)[semicolon]_(@_)"
    height="16"><font face="Arial" size="2">$ &nbsp;&nbsp;&nbsp;400,212 </font></td>
  </tr>
  <tr VALIGN="bottom">
    <td ALIGN="center" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    height="16"></td>
    <td ALIGN="left" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    height="16"><font face="Arial" size="2">Vanguard Equity Income Fund</font></td>
    <td ALIGN="left" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    height="16"><font face="Arial" size="2">Mutual fund</font></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_($* #,##0_)[semicolon]_($* (#,##0)[semicolon]_($* [dquote]-[dquote]_)[semicolon]_(@_)"
    height="16"><font face="Arial" size="2">$&nbsp;&nbsp;&nbsp; 255,801 </font></td>
  </tr>
  <tr VALIGN="bottom">
    <td ALIGN="center" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    height="16"></td>
    <td ALIGN="left" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    height="16"><font face="Arial" size="2">Vanguard Windsor II Fund</font></td>
    <td ALIGN="left" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    height="16"><font face="Arial" size="2">Mutual fund</font></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_($* #,##0_)[semicolon]_($* (#,##0)[semicolon]_($* [dquote]-[dquote]_)[semicolon]_(@_)"
    height="16"><font face="Arial" size="2">$&nbsp;&nbsp;&nbsp; 655,934 </font></td>
  </tr>
  <tr VALIGN="bottom">
    <td ALIGN="center" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    height="16"></td>
    <td ALIGN="left" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    height="16"><font face="Arial" size="2">Vanguard Index Trust (500 Portfolio)</font></td>
    <td ALIGN="left" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    height="16"><font face="Arial" size="2">Mutual fund</font></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_($* #,##0_)[semicolon]_($* (#,##0)[semicolon]_($* [dquote]-[dquote]_)[semicolon]_(@_)"
    height="16"><font face="Arial" size="2">$ 1,197,524 </font></td>
  </tr>
  <tr VALIGN="bottom">
    <td ALIGN="center" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    height="16"></td>
    <td ALIGN="left" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    height="16"><font face="Arial" size="2">Vanguard U.S. Growth Portfolio</font></td>
    <td ALIGN="left" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    height="16"><font face="Arial" size="2">Mutual fund</font></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_($* #,##0_)[semicolon]_($* (#,##0)[semicolon]_($* [dquote]-[dquote]_)[semicolon]_(@_)"
    height="16"><font face="Arial" size="2">$&nbsp;&nbsp;&nbsp; 793,806 </font></td>
  </tr>
  <tr VALIGN="bottom">
    <td ALIGN="center" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    height="16"></td>
    <td ALIGN="left" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    height="16"><font face="Arial" size="2">American Century Fund</font></td>
    <td ALIGN="left" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    height="16"><font face="Arial" size="2">Mutual fund</font></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_($* #,##0_)[semicolon]_($* (#,##0)[semicolon]_($* [dquote]-[dquote]_)[semicolon]_(@_)"
    height="16"><font face="Arial" size="2">$&nbsp;&nbsp;&nbsp; 216,907 </font></td>
  </tr>
  <tr VALIGN="bottom">
    <td ALIGN="center" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    height="16"></td>
    <td ALIGN="left" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    height="16"><font face="Arial" size="2">Neuberger &amp; Berman Genesis Trust</font></td>
    <td ALIGN="left" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    height="16"><font face="Arial" size="2">Mutual fund</font></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_($* #,##0_)[semicolon]_($* (#,##0)[semicolon]_($* [dquote]-[dquote]_)[semicolon]_(@_)"
    height="16"><font face="Arial" size="2">$&nbsp;&nbsp;&nbsp; 203,457 </font></td>
  </tr>
  <tr VALIGN="bottom">
    <td ALIGN="center" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    height="16"><font face="Arial" size="2">*</font></td>
    <td ALIGN="left" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    height="16"><font face="Arial" size="2">Carpenter Technology Corporation Stock Fund</font></td>
    <td ALIGN="left" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    height="16"><font face="Arial" size="2">Corporate common stock</font></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_($* #,##0_)[semicolon]_($* (#,##0)[semicolon]_($* [dquote]-[dquote]_)[semicolon]_(@_)"
    height="16"><font face="Arial" size="2">$&nbsp;&nbsp;&nbsp; 291,030 </font></td>
  </tr>
  <tr VALIGN="bottom">
    <td ALIGN="center" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    height="48"></td>
    <td ALIGN="left" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    height="48" valign="top"><font face="Arial" size="2">Participant Loans</font></td>
    <td ALIGN="left" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"
    height="48" valign="top"><font face="Arial" size="2">Loans to Participants - interest rate
    range<br>
    8.75% to 10.5%; no loans due past 12/8/2005</font></td>
    <td ALIGN="right"
    STYLE="vnd.ms-excel.numberformat:_($* #,##0_)[semicolon]_($* (#,##0)[semicolon]_($* [dquote]-[dquote]_)[semicolon]_(@_)"
    height="48">&nbsp;<p><font face="Arial" size="2">$&nbsp;&nbsp;&nbsp; 339,769 </font></td>
  </tr>
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td ALIGN="right" height="16"></td>
    <td ALIGN="right" height="16"></td>
    <td ALIGN="right" height="16"></td>
    <td ALIGN="right" height="16"></td>
  </tr>
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td ALIGN="left" colspan="2" height="16"><font face="Arial" size="2">* Party-in-Interest</font></td>
    <td ALIGN="right" height="16"></td>
    <td ALIGN="right" height="16"></td>
  </tr>
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td ALIGN="right" height="16"></td>
    <td ALIGN="right" height="16"></td>
    <td ALIGN="right" height="16"></td>
    <td ALIGN="right" height="16"></td>
  </tr>
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td ALIGN="right" height="16"></td>
    <td ALIGN="right" height="16"></td>
    <td ALIGN="right" height="16"></td>
    <td ALIGN="right" height="16"></td>
  </tr>
</TABLE>
<div align="center"><center>

<table border="0" width="660">
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td ALIGN="right" width="654"></td>
  </tr>
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td ALIGN="right" width="654"></td>
  </tr>
  <tr ALIGN="center" VALIGN="bottom"
  STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td width="654"><p align="center"><font face="Arial"><br>
    <br>
    <a name="CONSENT OF INDEPENDENT ACCOUNTANTS">CONSENT OF INDEPENDENT ACCOUNTANTS</a></font></td>
  </tr>
  <tr ALIGN="left" VALIGN="bottom"
  STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td width="654"><font face="Arial"><br>
    <br>
    <br>
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We hereby consent to the incorporation by
    reference in the Registration Statement on Form S-8 (number 2-83780) of Carpenter
    Technology Corporation of our report dated June 7, <br>
    2001 relating to the financial statements of the Retirement Plan of Talley Metals
    Technology,<br>
    Inc., which appears in this Form 11-K.<br>
    <br>
    <br>
    <br>
    /s/PricewaterhouseCoopers LLP<br>
    <br>
    </font></td>
  </tr>
  <tr VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)">
    <td ALIGN="left" width="654"><font face="Arial">PricewaterhouseCoopers LLP<br>
    Philadelphia, PA<br>
    June 28, 2001</font></td>
  </tr>
</TABLE>
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<p><br>
Last Updated on 6/19/01 <br>
By U00954 </i><font SIZE="+0"></p>
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