<SUBMISSION>
<ACCESSION-NUMBER>0000790730-06-000004
<TYPE>10-Q
<PUBLIC-DOCUMENT-COUNT>4
<PERIOD>20060305
<FILING-DATE>20060411
<DATE-OF-FILING-DATE-CHANGE>20060411
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>AMERON INTERNATIONAL CORP
<CIK>0000790730
<ASSIGNED-SIC>3270
<IRS-NUMBER>770100596
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>1130
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>10-Q
<ACT>34
<FILE-NUMBER>001-09102
<FILM-NUMBER>06753498
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>245 S LOS ROBLES AVE
<CITY>PASADENA
<STATE>CA
<ZIP>91101
<PHONE>6266834000
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>245 S LOS ROBLES AVE
<CITY>PASADENA
<STATE>CA
<ZIP>91101
</MAIL-ADDRESS>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>AMERON INC/DE
<DATE-CHANGED>19920703
</FORMER-COMPANY>
</FILER>
<DOCUMENT>
<TYPE>10-Q
<SEQUENCE>1
<FILENAME>ameron_10q106v10.htm
<DESCRIPTION>AMERON 10Q 1Q06
<TEXT>
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<CENTER>
                                        UNITED STATES</CENTER>
</STRONG>
</FONT>
<p style="margin-top: 0; margin-bottom: 0">

<FONT SIZE=5>
<STRONG>
<CENTER>
                        SECURITIES AND EXCHANGE COMMISSION
</CENTER>
</STRONG>
</FONT>
</p>
<p style="margin-top: 0; margin-bottom: 0">

<FONT SIZE=4>
<CENTER>
								Washington, D.C. 20549</CENTER>
</FONT>

<p>

<FONT SIZE=5>
<STRONG>
<CENTER>
											FORM 10-Q</CENTER></STRONG></FONT>
<P align="center">

<font size=2>
<Strong>
            (Mark One)
</STRONG>
</FONT>
<p>

<STRONG>
<CENTER>
              /X/ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)OF </CENTER>
<CENTER>
              			THE SECURITIES EXCHANGE ACT OF 1934
</CENTER>
</STRONG>
<P>

<CENTER>
                <font size="2"><b>
                For the quarterly period ended March 5, 2006</b></font></CENTER>
<P><CENTER><font size="2"><b>or</b></font></CENTER>
<P>

<STRONG>
<CENTER>
              /&nbsp; / TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
</CENTER>
<CENTER>
						 	THE SECURITIES EXCHANGE ACT OF 1934
</CENTER>
</STRONG>
<p>

<center>
<b>
<font size=2>
 			For the transition period from _______________ to _______________
<p>

						Commission File No. 1 - 9102

</font></b>
</center>
<p style="margin-top: 0; margin-bottom: 0">&nbsp;</p>

<CENTER>
<FONT SIZE=5>
<STRONG>
					AMERON INTERNATIONAL CORPORATION
</STRONG>
</FONT>
</CENTER>
</p>
<P style="margin-top: 0; margin-bottom: 0">

<CENTER>
<font size=2>
				(Exact name of registrant as specified in its charter)</font></center>

<div align="center">

<TABLE width="600" height="65" style="border-collapse: collapse" bordercolor="#111111" cellpadding="0" cellspacing="0">
<TR>
<TD width="300" height="65" align="center">
<p style="margin-top: 0; margin-bottom: 0" align="center"><b><font size=2>DELAWARE</font></b></p>
<p style="margin-top: 0; margin-bottom: 0" align="center"><font size=2>
(State or other jurisdiction of</font></p>
<p style="margin-top: 0; margin-bottom: 0" align="center"><font size=2>
incorporation or organization)</font>
</TD>
<CENTER>
<TD width="300" height="65 align=" center">
<p style="margin-top: 0; margin-bottom: 0" align="center"><b><font size=2>77-0100596</font></b></p>
<p style="margin-top: 0; margin-bottom: 0" align="center"><font size=2>
(I.R.S. Employer</font></p>
<p style="margin-top: 0; margin-bottom: 0" align="center"><font size=2>Identification No.)</font></p>
</TD>
</TR>
</TABLE>
  </center>
</div>

<p align=center style='text-align:center'><b><font size="2">245
  South Los Robles Avenue<br>
  Pasadena, California 91101-3638</font></b><font size="2"><br>
  (Address of principal executive offices)</font></p>
  <p align=center style='text-align: center; margin-top: 0; margin-bottom: 0'><b><font size="2">(626)&nbsp;683-4000
  <br></font></b><font size="2">(Registrant's telephone number,
  including area code)</font></p>

  <p align="left"><font size="2">Indicate by check mark whether the registrant (1) has
  filed all reports required to be filed by Section 13 or 15(d) of the
  Securities Exchange Act of 1934 during the preceding 12 months (or for such
  shorter period that the registrant was required to file such reports), and (2)
  has been subject to such filing requirements for the past 90 days.&nbsp; Yes /<B>x</B>/&nbsp; No / /</font></p>

  <p align="left"><font size="2">Indicate by check mark whether the
  registrant is a large accelerated filer, an accelerated filer, or a
  non-accelerated filer (as defined in Rule 12b-2 of the Exchange Act).</font></p>
<p align="left"><font size="2">Large accelerated filer / /&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accelerated filer /<B>x</B>/&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-accelerated filer / /</p>
  <p class=Style0 style="margin-top: 0px; margin-bottom: 8px">Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).&nbsp; Yes  <b>/
/</b>&nbsp;&nbsp;No /<b>x</b>/</p>

  <p align="left">The number of shares outstanding of Common Stock, $2.50 par
  value, was 8,740,891 on March 5, 2006.&nbsp; No other class of Common Stock exists.</font></p>

<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px"><FONT size=1></FONT>&nbsp;</P>
<div style='border:none;border-top:double windowtext 9.0pt;padding:0in 0in 0in 0in'>
  <p class=Style0 style='border:none;padding:0in'>
  </p>
</div>

<P style="PAGE-BREAK-BEFORE: always">
<HR align=center width="100%" color=#999999 SIZE=3>

<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center>
<FONT face="Times New Roman" size=2><B>AMERON INTERNATIONAL CORPORATION</B></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px"><FONT size=1></FONT>&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2><B>FORM 10-Q</B></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px"><FONT size=1></FONT>&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2><B>For the Quarter Ended March 5, 2006</B></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2><B>INDEX</B></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT size=1></FONT>&nbsp;</P>

<DIV>

<DIV align="center">

<TABLE cellPadding=0 width="80%" border=0 style="border-collapse: collapse">

  <TR>
    <TD vAlign=top width="12%"><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=top width="6%"><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=top width="2%">&nbsp;</TD>
    <TD vAlign=top width="2%"><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=top width="73%"><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=top align=middle width="5%"><FONT face="Times New Roman"
      size=1><B>Page</B></FONT><BR>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    </TR>
  <TR>
    <TD vAlign=top width="12%">
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2><B><I>Part&nbsp;I.</I></B></FONT></P></TD>
    <TD vAlign=top colSpan=4>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2><B><I>Financial
      Information</I></B></FONT></P></TD>
    <TD vAlign=bottom align="center" width="5%"><FONT size=1>&nbsp;</FONT></TD>
    </TR>
  <TR>
    <TD vAlign=top width="12%"><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=top width="6%">
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Item 1.</FONT></P></TD>
    <TD vAlign=top width="2%">
      &nbsp;</TD>
    <TD vAlign=top colSpan=2>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Consolidated Financial
      Statements</FONT></P></TD>
    <TD vAlign=bottom align="center" width="5%"><FONT size=1>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top width="12%"><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=top width="6%"><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=top width="2%">&nbsp;</TD>
    <TD vAlign=top width="2%">&nbsp;</TD>
    <TD vAlign=top width="73%">
    <FONT face="Times New Roman" size=2>Consolidated Statements of Income</FONT></TD>
    <TD vAlign=bottom align=center width="5%">
    <FONT face="Times New Roman" size="2">3</FONT></TD>
    </TR>
  <TR>
    <TD vAlign=top width="12%"><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=top width="6%"><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=top width="2%">&nbsp;</TD>
    <TD vAlign=top width="2%">&nbsp;</TD>
    <TD vAlign=top width="73%">
    <FONT face="Times New Roman" size=2>Consolidated Balance Sheets</FONT></TD>
    <TD vAlign=bottom align=center width="5%">
    <FONT face="Times New Roman" size="2">4</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top width="12%"><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=top width="6%"><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=top width="2%">&nbsp;</TD>
    <TD vAlign=top width="2%">&nbsp;</TD>
    <TD vAlign=top width="73%">
    <FONT face="Times New Roman" size=2>Consolidated Statements of Cash Flows</FONT></TD>
    <TD vAlign=bottom align=center width="5%">
    <FONT face="Times New Roman" size="2">5</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top width="12%"><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=top width="6%"><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=top width="2%">&nbsp;</TD>
    <TD vAlign=top width="2%">&nbsp;</TD>
    <TD vAlign=top width="73%">
    <FONT face="Times New Roman" size=2>Notes to Consolidated Financial Statements</FONT></TD>
    <TD vAlign=bottom align=center width="5%">
    <FONT face="Times New Roman" size="2">6</FONT></TD>
  </TR>
  <TR>
    <TD width="12%"></TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="73%"></TD>
    <TD vAlign=bottom align=center width="5%">&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width="12%"><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=top width="6%">
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Item 2.</FONT></P></TD>
    <TD vAlign=top width="2%">
      &nbsp;</TD>
    <TD vAlign=top colSpan=2>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Management's Discussion and Analysis of
      Financial Condition and Results of Operations</FONT></P></TD>
    <TD height="14" align="center" width="5%"><FONT size="2">16</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top width="12%"><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=top width="6%">
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Item 3.</FONT></P></TD>
    <TD vAlign=top width="2%">
      &nbsp;</TD>
    <TD vAlign=top colSpan=2>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Quantitative
      and Qualitative Market Risk Disclosures</FONT></P></TD>
    <TD vAlign=bottom align=center width="5%"><FONT face="Times New Roman"
    size="2">22</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top width="12%"><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=top width="6%">
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Item 4.</FONT></P></TD>
    <TD vAlign=top width="2%">
      &nbsp;</TD>
    <TD vAlign=top colSpan=2>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Controls
      and Procedures</FONT></P></TD>
    <TD vAlign=bottom align=center width="5%"><FONT face="Times New Roman"
    size="2">22</FONT></TD>
  </TR>
    <TR>
    <TD width="12%">
      &nbsp;</TD>
    <TD colSpan=4>
      &nbsp;</TD>
    <TD align="center" width="5%">&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width="12%">
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2><B><I>Part&nbsp;II.</I></B></FONT></P></TD>
    <TD vAlign=top colSpan=4>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2><B><I>Other
      Information</I></B></FONT></P></TD>
    <TD vAlign=bottom align="center" width="5%"><FONT size=1>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top width="12%"><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=top width="6%">
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Item 1.</FONT></P></TD>
    <TD vAlign=top width="2%">
      &nbsp;</TD>
    <TD vAlign=top colSpan=2>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Legal
      Proceedings</FONT></P></TD>
    <TD vAlign=bottom align=center width="5%"><FONT face="Times New Roman"
    size="2">22</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top width="12%"><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=top width="6%">
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Item 2.</FONT></P></TD>
    <TD vAlign=top width="2%">
      &nbsp;</TD>
    <TD vAlign=top colSpan=2>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em">
      <FONT face="Times New Roman" size="2">Unregistered Sales of Equity
      Securities and Use of Proceeds</FONT></P></TD>
    <TD vAlign=bottom align=center width="5%"><FONT face="Times New Roman"
    size="2">23</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top width="12%"><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=top width="6%">
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Item&nbsp;6.</FONT></P></TD>
    <TD vAlign=top width="2%">
      &nbsp;</TD>
    <TD vAlign=top colSpan=2>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Exhibits and Reports on Form 8-K</FONT></P></TD>
    <TD vAlign=bottom align=center width="5%"><FONT face="Times New Roman"
    size="2">23</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top width="12%">&nbsp;</TD>
    <TD vAlign=top width="6%">
      &nbsp;</TD>
    <TD vAlign=top width="2%">
      &nbsp;</TD>
    <TD vAlign=top colSpan=2>
      &nbsp;</TD>
    <TD vAlign=bottom align=center width="5%">&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width="20%" colspan="3"><I><B><FONT size="2">Signature Page</FONT></B></I></TD>
    <TD vAlign=top colSpan=2>
      &nbsp;</TD>
    <TD vAlign=bottom align=center width="5%"><FONT size="2">24</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top width="12%">&nbsp;</TD>
    <TD vAlign=top width="6%">
      &nbsp;</TD>
    <TD vAlign=top width="2%">
      &nbsp;</TD>
    <TD vAlign=top colSpan=2>
      &nbsp;</TD>
    <TD vAlign=bottom align=center width="5%">&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width="12%"><FONT size="2"><B><I>Certifications</I></B></FONT></TD>
    <TD vAlign=top width="6%">
      &nbsp;</TD>
    <TD vAlign=top width="2%">
      &nbsp;</TD>
    <TD vAlign=top colSpan=2>
      &nbsp;</TD>
    <TD vAlign=bottom align=center width="5%">&nbsp;</TD>
  </TR>
  </TABLE>
</DIV>
</DIV>

<P style="PAGE-BREAK-BEFORE: always">
<HR align=center width="100%" color=#999999 SIZE=3>

<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center>
<FONT face="Times New Roman" size=2><B>AMERON INTERNATIONAL CORPORATION
AND SUBSIDIARIES</B></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=left>
&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=left>
&nbsp;</P>

<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">
<B><FONT face="Times New Roman" size="2">PART I.&nbsp; FINANCIAL INFORMATION</FONT></B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">
<FONT face="Times New Roman" size=2><B>Item 1. Financial Statements</B></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=left>
<font face="Times New Roman" size="2"><b>
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)</B></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>

<DIV align="center">
<TABLE style="BORDER-COLLAPSE: collapse" cellPadding=0
width="90%" border=0>

  <TR>
    <TD vAlign=top width="76%" bgcolor="#FFFFFF">
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em">&nbsp;</TD>
    <TD vAlign=bottom width="2%" bgcolor="#FFFFFF">&nbsp;</TD>
    <TD vAlign=bottom width="21%" bgcolor="#FFFFFF" colspan="5">
    <P align="center"><FONT size="1"><B>Three Months Ended</B></FONT><HR
    color="#000000" noshade size="1"></TD>
    <TD vAlign=bottom align=left width="1%" bgcolor="#FFFFFF">&nbsp;</TD>
    </TR>
  <TR>
    <TD vAlign=bottom width="76%" bgcolor="#FFFFFF">
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em">
      <FONT face="Times New Roman" size=1><B>(In thousands, except share and per share data)</B></FONT></TD>
    <TD vAlign=bottom width="2%" bgcolor="#FFFFFF"><FONT size=2><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="10%" bgcolor="#FFFFFF" colspan="2">
    <P align="center"><FONT size="1"><B>March 5,<BR>2006</B></FONT><BR>
    <HR noshade color="#000000" size="1"></TD>
    <TD vAlign=bottom width="2%" bgcolor="#FFFFFF">&nbsp;</TD>
    <TD vAlign=bottom width="9%" bgcolor="#FFFFFF" colspan="2">
    <P align="center"><FONT size="1"><B>February 27,<BR>2005</B></FONT><BR>
    <HR noshade color="#000000" size="1"></TD>
    <TD vAlign=bottom align=left width="1%" bgcolor="#FFFFFF">&nbsp;</TD>
    </TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top width="76%">
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em">
      <font face="Times New Roman" size="2">Sales</font></P></TD>
    <TD vAlign=bottom width="2%"><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="2%"><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="8%"><FONT size="2">175,292</FONT></TD>
    <TD vAlign=bottom width="2%" align="left">&nbsp;</TD>
    <TD vAlign=bottom width="2%"><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="7%"><FONT face="Times New Roman"
    size="2">138,812</FONT></TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    </TR>
  <TR>
    <TD vAlign=top width="76%">
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em">
      <font face="Times New Roman" size="2">Cost of Sales</font></P></TD>
    <TD vAlign=bottom width="2%"><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom
    style="border-bottom:1px solid #000000; " align="right"
    width="2%"><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom
    style="border-bottom:1px solid #000000; " align="right"
    width="8%"><FONT size="2">(133,377</FONT></TD>
    <TD vAlign=bottom width="2%" align="left"><FONT size="2">)</FONT></TD>
    <TD vAlign=bottom
    style="border-bottom:1px solid #000000; " align="right"
    width="2%"><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom align="right"
    width="7%" style="border-bottom: 1px solid #000000"><FONT face="Times New Roman"
      size=2>(105,800</FONT></TD>
    <TD vAlign=bottom align="left" width="1%">
    <FONT size="2">)</FONT></TD>
    </TR>
  <TR>
    <TD vAlign=top width="76%" bgcolor="#CCEEFF" height="20"><font face="Times New Roman" size="2">Gross Profit</font></TD>
    <TD vAlign=bottom width="2%" bgcolor="#CCEEFF" height="20"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="2%" bgcolor="#CCEEFF" height="20"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right width="8%" bgcolor="#CCEEFF" height="20"><FONT size="2">
    41,915</FONT></TD>
    <TD vAlign=bottom width="2%" bgcolor="#CCEEFF" align="left" height="20">&nbsp;</TD>
    <TD vAlign=bottom width="2%" bgcolor="#CCEEFF" height="20"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right width="7%" bgcolor="#CCEEFF" height="20"><FONT face="Times New Roman"
    size="2">33,012</FONT></TD>
    <TD vAlign=bottom align=left width="1%" bgcolor="#CCEEFF" height="20">&nbsp;</TD>
    </TR>
  <TR>
    <TD vAlign=top width="76%" bgcolor="#FFFFFF">
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em">&nbsp;</TD>
    <TD vAlign=bottom width="2%" bgcolor="#FFFFFF">&nbsp;</TD>
    <TD vAlign=bottom width="2%" bgcolor="#FFFFFF">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgcolor="#FFFFFF">&nbsp;</TD>
    <TD vAlign=bottom width="2%" bgcolor="#FFFFFF" align="left">&nbsp;</TD>
    <TD vAlign=bottom width="2%" bgcolor="#FFFFFF">&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgcolor="#FFFFFF">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgcolor="#FFFFFF">&nbsp;</TD>
    </TR>
  <TR>
    <TD vAlign=top width="76%" bgcolor="#CCEEFF"><FONT size=2 face="Times New Roman">Selling, General and Administrative Expenses</FONT></TD>
    <TD vAlign=bottom width="2%" bgcolor="#CCEEFF"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="2%" bgcolor="#CCEEFF"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right width="8%" bgcolor="#CCEEFF"><FONT size="2">
    (37,455</FONT></TD>
    <TD width="2%" bgcolor="#CCEEFF" align="left"><FONT size="2">)</FONT></TD>
    <TD vAlign=bottom width="2%" bgcolor="#CCEEFF"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right width="7%" bgcolor="#CCEEFF"><FONT face="Times New Roman"
    size="2">(32,975</FONT></TD>
    <TD vAlign=bottom align=left width="1%" bgcolor="#CCEEFF"><FONT size="2">)</FONT></TD>
    </TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top width="76%" bgcolor="#FFFFFF"><font face="Times New Roman" size="2">Other Income, Net</font></P></TD>
    <TD vAlign=bottom width="2%" bgcolor="#FFFFFF"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="2%"
    style="border-bottom: 1px solid #000000" bgcolor="#FFFFFF"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right width="8%"
    style="border-bottom: 1px solid #000000" bgcolor="#FFFFFF"><FONT size="2">
    957</FONT></TD>
    <TD vAlign=bottom width="2%" align="left" bgcolor="#FFFFFF">&nbsp;</TD>
    <TD vAlign=bottom width="2%"
    style="border-bottom: 1px solid #000000" bgcolor="#FFFFFF"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right width="7%"
    style="border-bottom: 1px solid #000000" bgcolor="#FFFFFF"><FONT face="Times New Roman"
    size="2">1,167</FONT></TD>
    <TD vAlign=bottom align=left width="1%" bgcolor="#FFFFFF">&nbsp;</TD>
    </TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top width="76%">
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em">
      <font face="Times New Roman" size="2">Income before Interest,
      Income Taxes and Equity in Earnings of Joint Venture</font></P></TD>
    <TD vAlign=bottom width="2%"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="2%"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right width="8%"><FONT size="2">5,417</FONT></TD>
    <TD vAlign=bottom width="2%" align="left">&nbsp;</TD>
    <TD vAlign=bottom width="2%"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right width="7%"><FONT face="Times New Roman"
    size="2">1,204</FONT></TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    </TR>
  <TR>
    <TD vAlign=top width="76%" bgcolor="#FFFFFF">
      <FONT size="2">Interest Expense, Net</FONT></TD>
    <TD vAlign=bottom width="2%" bgcolor="#FFFFFF">&nbsp;</TD>
    <TD vAlign=bottom width="2%" bgcolor="#FFFFFF"
    style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgcolor="#FFFFFF"
    style="border-bottom: 1px solid #000000"><FONT size="2">(924</FONT></TD>
    <TD vAlign=bottom width="2%" bgcolor="#FFFFFF" align="left"><FONT size="2">)</FONT></TD>
    <TD vAlign=bottom width="2%" bgcolor="#FFFFFF"
    style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgcolor="#FFFFFF"
    style="border-bottom: 1px solid #000000"><FONT size="2">(1,378</FONT></TD>
    <TD vAlign=bottom align=left width="1%" bgcolor="#FFFFFF"><FONT size="2">)</FONT></TD>
    </TR>
  <TR>
    <TD vAlign=top width="76%" bgcolor="#CCEEFF">
      <FONT size="2">Income/(Loss) before Income Taxes and Equity in Earnings of
      Joint Venture</FONT></TD>
    <TD vAlign=bottom width="2%" bgcolor="#CCEEFF">&nbsp;</TD>
    <TD vAlign=bottom width="2%" bgcolor="#CCEEFF">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgcolor="#CCEEFF"><FONT size="2">
    4,493</FONT></TD>
    <TD vAlign=bottom width="2%" bgcolor="#CCEEFF" align="left">&nbsp;</TD>
    <TD vAlign=bottom width="2%" bgcolor="#CCEEFF">&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgcolor="#CCEEFF"><FONT size="2">(174</FONT></TD>
    <TD vAlign=bottom align=left width="1%" bgcolor="#CCEEFF"><FONT size="2">)</FONT></TD>
    </TR>
  <TR>
    <TD vAlign=top width="76%" bgcolor="#FFFFFF">
      <FONT size="2">Provision for Income Taxes</FONT></TD>
    <TD vAlign=bottom width="2%" bgcolor="#FFFFFF">&nbsp;</TD>
    <TD vAlign=bottom width="2%" bgcolor="#FFFFFF"
    style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgcolor="#FFFFFF"
    style="border-bottom: 1px solid #000000"><FONT size="2">(1,662</FONT></TD>
    <TD vAlign=bottom width="2%" bgcolor="#FFFFFF" align="left"><FONT size="2">)</FONT></TD>
    <TD vAlign=bottom width="2%" bgcolor="#FFFFFF"
    style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgcolor="#FFFFFF"
    style="border-bottom: 1px solid #000000"><FONT size="2">61</FONT></TD>
    <TD vAlign=bottom align=left width="1%" bgcolor="#FFFFFF">&nbsp;</TD>
    </TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top width="76%">
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Income/(Loss) before Equity in Earnings of
      Joint Venture</FONT></P></TD>
    <TD vAlign=bottom width="2%"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="2%"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right width="8%"><FONT size="2">2,831</FONT></TD>
    <TD vAlign=bottom width="2%" align="left">&nbsp;</TD>
    <TD vAlign=bottom width="2%"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right width="7%"><FONT face="Times New Roman"
    size="2">(113</FONT></TD>
    <TD vAlign=bottom align=left width="1%"><FONT size="2">)</FONT></TD>
    </TR>
  <TR>
    <TD vAlign=top width="76%" bgcolor="#FFFFFF">
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em">
      <font face="Times New Roman" size="2">Equity in Earnings of Joint Venture,
      Net of Taxes</font></P></TD>
    <TD vAlign=bottom width="2%" bgcolor="#FFFFFF"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="2%" style="border-bottom: 1px solid #000000"
    bgcolor="#FFFFFF"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right width="8%"
    style="border-bottom: 1px solid #000000" bgcolor="#FFFFFF"><FONT size="2">
    780</FONT></TD>
    <TD vAlign=bottom width="2%" bgcolor="#FFFFFF" align="left">&nbsp;</TD>
    <TD vAlign=bottom width="2%" style="border-bottom: 1px solid #000000"
    bgcolor="#FFFFFF"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right width="7%" bgcolor="#FFFFFF"
    style="border-bottom: 1px solid #000000"><FONT face="Times New Roman"
    size="2">594</FONT></TD>
    <TD vAlign=bottom align=left width="1%" bgcolor="#FFFFFF">&nbsp;</TD>
    </TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top width="76%">
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Net Income</FONT></P></TD>
    <TD vAlign=bottom width="2%"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="2%"
    style="border-bottom: 3px double #000000; "><FONT face="Times New Roman" size=2>
    $</FONT></TD>
    <TD vAlign=bottom align=right width="8%"
    style="border-bottom: 3px double #000000; "><FONT size="2">3,611</FONT></TD>
    <TD vAlign=bottom width="2%" align="left">&nbsp;</TD>
    <TD vAlign=bottom width="2%"
    style="border-bottom: 3px double #000000; "><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="7%"
    style="border-bottom: 3px double #000000; "><FONT face="Times New Roman"
    size="2">481</FONT></TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    </TR>
  <TR>
    <TD vAlign=top width="76%" bgcolor="#FFFFFF">&nbsp;</TD>
    <TD vAlign=bottom width="2%" bgcolor="#FFFFFF"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="2%" bgcolor="#FFFFFF"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right width="8%" bgcolor="#FFFFFF">&nbsp;</TD>
    <TD vAlign=bottom width="2%" bgcolor="#FFFFFF" align="left">&nbsp;</TD>
    <TD vAlign=bottom width="2%" bgcolor="#FFFFFF"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right width="7%" bgcolor="#FFFFFF">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgcolor="#FFFFFF">&nbsp;</TD>
    </TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top width="76%">
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em">
      <font face="Times New Roman" size="2">Net Income per share:</font></P></TD>
    <TD vAlign=bottom width="2%">&nbsp;</TD>
    <TD vAlign=bottom width="2%">&nbsp;</TD>
    <TD vAlign=bottom width="8%">&nbsp;</TD>
    <TD vAlign=bottom width="2%" align="left">&nbsp;</TD>
    <TD vAlign=bottom width="2%"><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="7%">&nbsp;</TD>
    <TD vAlign=bottom width="1%" align="left">&nbsp;</TD>
    </TR>
  <TR>
    <TD vAlign=top width="76%" bgcolor="#FFFFFF">
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Basic</FONT></P></TD>
    <TD vAlign=bottom width="2%" bgcolor="#FFFFFF"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="2%" bgcolor="#FFFFFF"
    style="border-bottom: 3px double #000000; "><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="8%" bgcolor="#FFFFFF"
    style="border-bottom: 3px double #000000; "><FONT size="2">.42</FONT></TD>
    <TD vAlign=bottom width="2%" bgcolor="#FFFFFF" align="left">&nbsp;</TD>
    <TD vAlign=bottom width="2%" bgcolor="#FFFFFF"
    style="border-bottom: 3px double #000000; "><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="7%" bgcolor="#FFFFFF"
    style="border-bottom: 3px double #000000; ">
    <FONT face="Times New Roman"
    size="2">.06</FONT></TD>
    <TD vAlign=bottom align=left width="1%" bgcolor="#FFFFFF">
    &nbsp;</TD>
    </TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top width="76%">
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Diluted</FONT></P></TD>
    <TD vAlign=bottom width="2%"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="2%" style="border-bottom: 3px double #000000; "><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="8%"
    style="border-bottom: 3px double #000000; "><FONT size="2">.41</FONT></TD>
    <TD vAlign=bottom width="2%" align="left">&nbsp;</TD>
    <TD vAlign=bottom width="2%" style="border-bottom: 3px double #000000; "><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="7%"
    style="border-bottom: 3px double #000000; ">
    <FONT face="Times New Roman"
    size="2">.06</FONT></TD>
    <TD vAlign=bottom align=left width="1%">
    &nbsp;</TD>
    </TR>
  <TR>
    <TD vAlign=bottom width="76%" bgcolor="#FFFFFF">&nbsp;</TD>
    <TD vAlign=bottom width="2%" bgcolor="#FFFFFF"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="2%" bgcolor="#FFFFFF">
      &nbsp;</TD>
    <TD vAlign=bottom width="8%" bgcolor="#FFFFFF">
      &nbsp;</TD>
    <TD vAlign=bottom width="2%" bgcolor="#FFFFFF" align="left">&nbsp;</TD>
    <TD vAlign=bottom width="2%" bgcolor="#FFFFFF">
      &nbsp;</TD>
    <TD vAlign=bottom width="7%" bgcolor="#FFFFFF">
      &nbsp;</TD>
    <TD vAlign=bottom width="1%" bgcolor="#FFFFFF" align="left">
      &nbsp;</TD>
    </TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top width="76%">
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Weighted-Average Shares:</FONT></P></TD>
    <TD vAlign=bottom width="2%"><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="2%"><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="8%">&nbsp;</TD>
    <TD vAlign=bottom width="2%" align="left">&nbsp;</TD>
    <TD vAlign=bottom width="2%"><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="7%">&nbsp;</TD>
    <TD vAlign=bottom width="1%" align="left">&nbsp;</TD>
    </TR>
  <TR>
    <TD vAlign=top width="76%" bgcolor="#FFFFFF">
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Basic</FONT></P></TD>
    <TD vAlign=bottom width="2%" bgcolor="#FFFFFF">&nbsp;</TD>
    <TD vAlign=bottom width="2%" style="border-bottom: 3px double #000000; "
    bgcolor="#FFFFFF">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%"
    style="border-bottom: 3px double #000000; " bgcolor="#FFFFFF">
    <FONT size="2">8,614,269</FONT></TD>
    <TD vAlign=bottom width="2%" bgcolor="#FFFFFF" align="left">&nbsp;</TD>
    <TD vAlign=bottom width="2%" style="border-bottom: 3px double #000000; "
    bgcolor="#FFFFFF"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right width="7%" bgcolor="#FFFFFF"
    style="border-bottom: 3px double #000000; "><FONT face="Times New Roman"
    size="2">8,342,338</FONT></TD>
    <TD vAlign=bottom align=left width="1%" bgcolor="#FFFFFF">&nbsp;</TD>
    </TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top width="76%">
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Diluted</FONT></P></TD>
    <TD vAlign=bottom width="2%">&nbsp;</TD>
    <TD vAlign=bottom width="2%"
    style="border-bottom: 3px double #000000; ">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%"
    style="border-bottom: 3px double #000000; "><FONT size="2">8,786,041</FONT></TD>
    <TD vAlign=bottom width="2%" align="left">&nbsp;</TD>
    <TD vAlign=bottom width="2%"
    style="border-bottom: 3px double #000000; "><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right width="7%"
    style="border-bottom: 3px double #000000; "><FONT face="Times New Roman"
    size="2">8,519,859</FONT></TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    </TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top width="76%" bgcolor="#FFFFFF">
      &nbsp;</TD>
    <TD vAlign=bottom width="2%" bgcolor="#FFFFFF">&nbsp;</TD>
    <TD vAlign=bottom width="2%" bgcolor="#FFFFFF">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgcolor="#FFFFFF">&nbsp;</TD>
    <TD vAlign=bottom width="2%" align="left" bgcolor="#FFFFFF">&nbsp;</TD>
    <TD vAlign=bottom width="2%" bgcolor="#FFFFFF">&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgcolor="#FFFFFF">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgcolor="#FFFFFF">&nbsp;</TD>
    </TR>
  <tr>
    <TD vAlign=top width="76%" bgcolor="#CCEEFF">
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em">
      <font face="Times New Roman" size="2">Cash Dividends per Share</font></P></TD>
    <TD vAlign=bottom width="2%" bgcolor="#CCEEFF"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="2%" bgcolor="#CCEEFF"
    style="border-bottom: 3px double #000000"><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="8%" bgcolor="#CCEEFF"
    style="border-bottom: 3px double #000000"><FONT size="2">
    .20</FONT></TD>
    <TD vAlign=bottom width="2%" bgcolor="#CCEEFF" align="left">&nbsp;</TD>
    <TD vAlign=bottom width="2%" bgcolor="#CCEEFF"
    style="border-bottom: 3px double #000000"><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="7%" bgcolor="#CCEEFF"
    style="border-bottom: 3px double #000000">
    <font face="Times New Roman" size="2">.20</font></TD>
    <TD vAlign=bottom align=left width="1%" bgcolor="#CCEEFF">
    &nbsp;</TD>
  </tr>
  </TABLE>
</DIV>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>See accompanying notes to consolidated financial
statements.</FONT></P>

<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<P style="PAGE-BREAK-BEFORE: always">
<HR align=center width="100%" color=#999999 SIZE=3>

<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center>
<FONT face="Times New Roman" size=2><B>AMERON INTERNATIONAL CORPORATION
AND SUBSIDIARIES</B></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px" align="center">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=left><FONT
face="Times New Roman" size=2><B>CONSOLIDATED BALANCE SHEETS</B></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT size=1></FONT>&nbsp;</P>

<div align="center">
<TABLE style="BORDER-COLLAPSE: collapse" cellPadding=0
width="97%" border=0>

  <TR bgColor=#cceeff>
    <TD vAlign=bottom width="721" height="15" bgcolor="#FFFFFF">
      <FONT face="Times New Roman" size=1><B>(In thousands, except share and per share data)</B></FONT></TD>
    <TD vAlign=bottom width="22" height="15" bgcolor="#FFFFFF">&nbsp;</TD>
    <TD vAlign=top width="84" height="15" bgcolor="#FFFFFF" colspan="2">
    <P align="center"><FONT size="1"><B>March 5,<BR>2006<BR>(Unaudited)</B></FONT><BR>
    <HR color="#000000" noshade size="1"></TD>
    <TD vAlign=bottom width="24" height="15" bgcolor="#FFFFFF" align="left">&nbsp;</TD>
    <TD vAlign=top width="81" height="15" bgcolor="#FFFFFF" colspan="2">
    <P align="center"><FONT size="1"><B>November 30,<BR>2005<BR>&nbsp;</B></FONT><BR>
    <HR color="#000000" noshade size="1"></TD>
    <TD vAlign=bottom width="9" height="15" bgcolor="#FFFFFF" align="left">&nbsp;</TD>
    </TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top width="721">
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2><B>Assets</B></FONT></P></TD>
    <TD vAlign=bottom width="22"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="17"><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="67"><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="24" align="left"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="17"><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="64"><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="9" align="left"></TD>
    </TR>
  <TR>
    <TD vAlign=top width="721">
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Current Assets</FONT></P></TD>
    <TD vAlign=bottom width="22"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="17"><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="67"><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="24" align="left"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="17"><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="64"><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="9" align="left"></TD>
    </TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top width="721">
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Cash and Cash Equivalents</FONT></P></TD>
    <TD vAlign=bottom width="22"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="17"><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="67"><FONT size="2">43,684</FONT></TD>
    <TD vAlign=bottom width="24" align="left"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="17"><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="64">
    <FONT face="Times New Roman" size="2">44,671</FONT></TD>
    <TD vAlign=bottom align=left width="9">
    </TD>
    </TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top width="721" bgcolor="#FFFFFF">
      <p style="text-indent: -1em; margin-left: 3em">
      <font face="Times New Roman" size="2">Receivables, Less Allowances of
      $7,898 in 2006 and $7,693 in 2005</font></TD>
    <TD vAlign=bottom width="22" bgcolor="#FFFFFF"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="17" bgcolor="#FFFFFF"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right width="67" bgcolor="#FFFFFF">
    <FONT size="2">178,590</FONT></TD>
    <TD vAlign=bottom width="24" bgcolor="#FFFFFF" align="left"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="17" bgcolor="#FFFFFF"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right width="64" bgcolor="#FFFFFF">
    <FONT face="Times New Roman" size="2">180,558</FONT></TD>
    <TD vAlign=bottom align=left width="9" bgcolor="#FFFFFF">
    &nbsp;</TD>
    </TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top width="721">
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Inventories</FONT></P></TD>
    <TD vAlign=bottom width="22"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="17"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right width="67"><FONT size="2">104,927</FONT></TD>
    <TD vAlign=bottom width="24" align="left"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="17"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right width="64">
    <FONT face="Times New Roman" size="2">98,389</FONT></TD>
    <TD vAlign=bottom align=left width="9">
    </TD>
    </TR>
  <TR>
    <TD vAlign=top width="721">
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Deferred Income Taxes</FONT></P></TD>
    <TD vAlign=bottom width="22"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="17"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right width="67">
    <FONT size="2">17,598</FONT></TD>
    <TD vAlign=bottom width="24" align="left"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="17"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right width="64">
    <FONT face="Times New Roman" size="2">17,598</FONT></TD>
    <TD vAlign=bottom align=left width="9">
    </TD>
    </TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top width="721">
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Prepaid Expenses and Other Current Assets</FONT></P></TD>
    <TD vAlign=bottom width="22"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="17"
    style="border-bottom: 1px solid #000000"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right width="67"
    style="border-bottom: 1px solid #000000"><FONT size="2">12,537</FONT></TD>
    <TD vAlign=bottom width="24" align="left"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="17"
    style="border-bottom: 1px solid #000000"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right width="64"
    style="border-bottom: 1px solid #000000">
    <FONT face="Times New Roman" size="2">11,714</FONT></TD>
    <TD vAlign=bottom align=left width="9">
    </TD>
    </TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top width="721" bgcolor="#FFFFFF">
      <P style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Total Current Assets</FONT></P></TD>
    <TD vAlign=bottom width="22" bgcolor="#FFFFFF"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="17" bgcolor="#FFFFFF"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right width="67" bgcolor="#FFFFFF">
    <FONT size="2">357,336</FONT></TD>
    <TD vAlign=bottom width="24" bgcolor="#FFFFFF" align="left"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="17" bgcolor="#FFFFFF"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right width="64" bgcolor="#FFFFFF">
    <FONT face="Times New Roman" size="2">352,930</FONT></TD>
    <TD vAlign=bottom align=left width="9" bgcolor="#FFFFFF">
    &nbsp;</TD>
    </TR>
  <TR>
    <TD vAlign=top width="721" bgcolor="#CCEEFF">
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em">
      <font face="Times New Roman" size="2">Investments in Joint Ventures</font></P></TD>
    <TD vAlign=bottom width="22" bgcolor="#CCEEFF"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="17" bgcolor="#CCEEFF"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right width="67" bgcolor="#CCEEFF"></TD>
    <TD vAlign=bottom width="24" bgcolor="#CCEEFF" align="left"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="17" bgcolor="#CCEEFF"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right width="64" bgcolor="#CCEEFF"></TD>
    <TD vAlign=bottom align=left width="9" bgcolor="#CCEEFF">&nbsp;</TD>
    </TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top width="721" bgcolor="#FFFFFF">
    <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em">
      <font face="Times New Roman" size="2">Equity Method</font></TD>
    <TD vAlign=bottom width="22" bgcolor="#FFFFFF"></TD>
    <TD vAlign=bottom width="17" bgcolor="#FFFFFF"></TD>
    <TD vAlign=bottom align=right width="67" bgcolor="#FFFFFF">
    <FONT size="2">14,373</FONT></TD>
    <TD vAlign=bottom width="24" bgcolor="#FFFFFF" align="left"></TD>
    <TD vAlign=bottom width="17" bgcolor="#FFFFFF"></TD>
    <TD vAlign=bottom align=right width="64" bgcolor="#FFFFFF">
    <FONT face="Times New Roman" size="2">13,777</FONT></TD>
    <TD vAlign=bottom align=left width="9" bgcolor="#FFFFFF">
    &nbsp;</TD>
    </TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top width="721">
    <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em">
      <font face="Times New Roman" size="2">Cost Method</font></TD>
    <TD vAlign=bottom width="22"></TD>
    <TD vAlign=bottom width="17"></TD>
    <TD vAlign=bottom align=right width="67">
    <FONT size="2">5,922</FONT></TD>
    <TD vAlign=bottom width="24" align="left"></TD>
    <TD vAlign=bottom width="17"></TD>
    <TD vAlign=bottom align=right width="64">
    <font face="Times New Roman" size="2">5,922</font></TD>
    <TD vAlign=bottom align=left width="9">
    </TD>
    </TR>
  <TR>
    <TD vAlign=top width="721" bgcolor="#FFFFFF">
      <font face="Times New Roman" size="2">Property, Plant and Equipment</font></TD>
    <TD vAlign=bottom width="22" bgcolor="#FFFFFF"></TD>
    <TD vAlign=bottom width="17" bgcolor="#FFFFFF"></TD>
    <TD vAlign=bottom align=right width="67" bgcolor="#FFFFFF"></TD>
    <TD vAlign=bottom width="24" bgcolor="#FFFFFF" align="left"></TD>
    <TD vAlign=bottom width="17" bgcolor="#FFFFFF"></TD>
    <TD vAlign=bottom align=right width="64" bgcolor="#FFFFFF"></TD>
    <TD vAlign=bottom align=left width="9" bgcolor="#FFFFFF">&nbsp;</TD>
    </TR>
  <TR>
    <TD vAlign=top width="721" bgcolor="#CCEEFF">
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em">
      <font face="Times New Roman" size="2">Land</font></P></TD>
    <TD vAlign=bottom width="22" bgcolor="#CCEEFF"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="17" bgcolor="#CCEEFF"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right width="67" bgcolor="#CCEEFF">
    <FONT size="2">39,011</FONT></TD>
    <TD vAlign=bottom width="24" bgcolor="#CCEEFF" align="left"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="17" bgcolor="#CCEEFF"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right width="64" bgcolor="#CCEEFF">
    <FONT face="Times New Roman" size="2">38,959</FONT></TD>
    <TD vAlign=bottom align=left width="9" bgcolor="#CCEEFF">
    &nbsp;</TD>
    </TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top width="721" bgcolor="#FFFFFF">
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em">
      <font face="Times New Roman" size="2">Buildings</font></P></TD>
    <TD vAlign=bottom width="22" bgcolor="#FFFFFF"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="17" bgcolor="#FFFFFF"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right width="67" bgcolor="#FFFFFF">
    <FONT size="2">88,247</FONT></TD>
    <TD vAlign=bottom width="24" bgcolor="#FFFFFF" align="left"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="17" bgcolor="#FFFFFF"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right width="64" bgcolor="#FFFFFF">
    <FONT face="Times New Roman" size="2">88,606</FONT></TD>
    <TD vAlign=bottom align=left width="9" bgcolor="#FFFFFF">
    &nbsp;</TD>
    </TR>
  <TR>
    <TD vAlign=top width="721" bgcolor="#CCEEFF">
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em">
      <font face="Times New Roman" size="2">Machinery and Equipment</font></P></TD>
    <TD vAlign=bottom width="22" bgcolor="#CCEEFF"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="17" bgcolor="#CCEEFF"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right width="67" bgcolor="#CCEEFF">
    <FONT size="2">294,859</FONT></TD>
    <TD vAlign=bottom width="24" bgcolor="#CCEEFF" align="left"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="17" bgcolor="#CCEEFF"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right width="64" bgcolor="#CCEEFF">
    <FONT face="Times New Roman" size="2">284,593</FONT></TD>
    <TD vAlign=bottom align=left width="9" bgcolor="#CCEEFF">
    &nbsp;</TD>
    </TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top width="721" bgcolor="#FFFFFF">
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em">
      <font face="Times New Roman" size="2">Construction in Progress</font></P></TD>
    <TD vAlign=bottom width="22" bgcolor="#FFFFFF"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="17"
    style="border-bottom: 1px solid #000000" bgcolor="#FFFFFF"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right width="67"
    style="border-bottom: 1px solid #000000" bgcolor="#FFFFFF">
    <FONT size="2">10,862</FONT></TD>
    <TD vAlign=bottom width="24" bgcolor="#FFFFFF" align="left"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="17"
    style="border-bottom: 1px solid #000000" bgcolor="#FFFFFF"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right width="64"
    style="border-bottom: 1px solid #000000" bgcolor="#FFFFFF">
    <FONT face="Times New Roman" size="2">15,500</FONT></TD>
    <TD vAlign=bottom align=left width="9" bgcolor="#FFFFFF">
    &nbsp;</TD>
    </TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top width="721">
      <P style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Total Property, Plant and Equipment at Cost</FONT></P></TD>
    <TD vAlign=bottom width="22"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="17"></TD>
    <TD vAlign=bottom align=right width="67"><FONT size="2">432,979</FONT></TD>
    <TD vAlign=bottom width="24" align="left"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="17"></TD>
    <TD vAlign=bottom align=right width="64">
    <FONT face="Times New Roman" size="2">427,658</FONT></TD>
    <TD vAlign=bottom align=left width="9">
    </TD>
    </TR>
  <TR>
    <TD vAlign=bottom width="721"><P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em">
    <font face="Times New Roman" size="2">Accumulated Depreciation</font></TD>
    <TD vAlign=bottom width="22"></TD>
    <TD vAlign=bottom width="17"
    style="border-bottom: 1px solid #000000; ">
    </TD>
    <TD vAlign=bottom align=right width="67"
    style="border-bottom: 1px solid #000000">
    <FONT size="2">(277,947</FONT></TD>
    <TD width="24" align="left"><FONT size="2">)</FONT></TD>
    <TD vAlign=bottom width="17"
    style="border-bottom: 1px solid #000000"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right width="64"
    style="border-bottom: 1px solid #000000">
    <font face="Times New Roman" size="2">(272,993</font></TD>
    <TD align=left width="9"><FONT size="2">)</FONT></TD>
    </TR>
  <TR>
    <TD vAlign=bottom width="721" bgcolor="#CCEEFF">
    <P style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em">
    <font face="Times New Roman" size="2">Total Property, Plant and Equipment,
    Net</font></TD>
    <TD vAlign=bottom width="22" bgcolor="#CCEEFF"></TD>
    <TD vAlign=bottom width="17" bgcolor="#CCEEFF">
    </TD>
    <TD vAlign=bottom align=right width="67" bgcolor="#CCEEFF">
    <FONT size="2">155,032</FONT></TD>
    <TD vAlign=bottom width="24" bgcolor="#CCEEFF" align="left"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="17" bgcolor="#CCEEFF"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right width="64" bgcolor="#CCEEFF">
    <FONT face="Times New Roman" size="2">154,665</FONT></TD>
    <TD vAlign=bottom align=left width="9" bgcolor="#CCEEFF">
    &nbsp;</TD>
    </TR>
  <TR>
    <TD vAlign=bottom width="721" bgcolor="#FFFFFF">
    <font face="Times New Roman" size="2">Deferred Income Taxes</font></TD>
    <TD vAlign=bottom width="22" bgcolor="#FFFFFF"></TD>
    <TD vAlign=bottom width="17" bgcolor="#FFFFFF">
    </TD>
    <TD vAlign=bottom align=right width="67" bgcolor="#FFFFFF">
    <FONT size="2">80</FONT></TD>
    <TD vAlign=bottom width="24" bgcolor="#FFFFFF" align="left"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="17" bgcolor="#FFFFFF"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right width="64" bgcolor="#FFFFFF">
    <FONT face="Times New Roman" size="2">143</FONT></TD>
    <TD vAlign=bottom align=left width="9" bgcolor="#FFFFFF">
    &nbsp;</TD>
    </TR>
  <TR>
    <TD vAlign=bottom width="721" bgcolor="#CCEEFF">
    <font face="Times New Roman" size="2">Intangible Assets, Net of Accumulated
    Amortization of $10,266 in 2006 and $10,142 in 2005</font></TD>
    <TD vAlign=bottom width="22" bgcolor="#CCEEFF"></TD>
    <TD vAlign=bottom width="17" bgcolor="#CCEEFF">
    </TD>
    <TD vAlign=bottom align=right width="67" bgcolor="#CCEEFF">
    <FONT size="2">13,215</FONT></TD>
    <TD vAlign=bottom width="24" bgcolor="#CCEEFF" align="left"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="17" bgcolor="#CCEEFF"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right width="64" bgcolor="#CCEEFF">
    <FONT face="Times New Roman" size="2">13,259</FONT></TD>
    <TD vAlign=bottom align=left width="9" bgcolor="#CCEEFF">
    &nbsp;</TD>
    </TR>
  <TR>
    <TD vAlign=bottom width="721" bgcolor="#FFFFFF">
    <font face="Times New Roman" size="2">Other Assets</font></TD>
    <TD vAlign=bottom width="22" bgcolor="#FFFFFF"></TD>
    <TD vAlign=bottom width="17" bgcolor="#FFFFFF"
    style="border-bottom: 1px solid #000000">
    </TD>
    <TD vAlign=bottom align=right width="67" bgcolor="#FFFFFF"
    style="border-bottom: 1px solid #000000">
    <FONT size="2">36,602</FONT></TD>
    <TD vAlign=bottom width="24" bgcolor="#FFFFFF" align="left"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="17" bgcolor="#FFFFFF"
    style="border-bottom: 1px solid #000000"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right width="64" bgcolor="#FFFFFF"
    style="border-bottom: 1px solid #000000">
    <FONT face="Times New Roman" size="2">37,340</FONT></TD>
    <TD vAlign=bottom align=left width="9" bgcolor="#FFFFFF">
    &nbsp;</TD>
    </TR>
  <TR>
    <TD vAlign=bottom width="721" bgcolor="#CCEEFF">
    <font face="Times New Roman" size="2">Total Assets</font></TD>
    <TD vAlign=bottom width="22" bgcolor="#CCEEFF"></TD>
    <TD vAlign=bottom width="17" bgcolor="#CCEEFF"
    style="border-bottom: 3px double #000000"><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="67" bgcolor="#CCEEFF"
    style="border-bottom: 3px double #000000">
    <FONT size="2">582,560</FONT></TD>
    <TD vAlign=bottom width="24" bgcolor="#CCEEFF" align="left"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="17" bgcolor="#CCEEFF"
    style="border-bottom: 3px double #000000"><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="64" bgcolor="#CCEEFF"
    style="border-bottom: 3px double #000000">
    <FONT face="Times New Roman" size="2">578,036</FONT></TD>
    <TD vAlign=bottom align=left width="9" bgcolor="#CCEEFF">
    &nbsp;</TD>
    </TR>
  <TR>
    <TD vAlign=bottom width="721"><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="22"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="17">
    </TD>
    <TD vAlign=bottom width="67">
    </TD>
    <TD vAlign=bottom width="24" align="left"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="17">
    </TD>
    <TD vAlign=bottom width="64">
    </TD>
    <TD vAlign=bottom width="9" align="left">
    </TD>
    </TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top width="721">
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2><B>L</B></FONT><B><FONT
      face="Times New Roman" size="2">iabilities and Stockholders' Equity</FONT></B></P></TD>
    <TD vAlign=bottom width="22"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="17"><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="67"><FONT size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="24" align="left"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="17"><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="64"><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="9" align="left"></TD>
    </TR>
  <TR>
    <TD vAlign=top width="721">
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Current Liabilities</FONT></P></TD>
    <TD vAlign=bottom width="22"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="17"><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="67"><FONT size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="24" align="left"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="17"><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="64"><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="9" align="left"></TD>
    </TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top width="721">
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em">
      <font face="Times New Roman" size="2">Current Portion of Long-Term Debt</font></P></TD>
    <TD vAlign=bottom width="22"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="17"><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="67">
    <FONT size="2">18,333</FONT></TD>
    <TD vAlign=bottom width="24" align="left"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="17"><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="64">
    <font face="Times New Roman" size="2">18,333</font></TD>
    <TD vAlign=bottom align=left width="9">
    </TD>
    </TR>
  <TR>
    <TD vAlign=top width="721">
      <p style="text-indent: -1em; margin-left: 3em">
      <font face="Times New Roman" size="2">Trade Payables</font></TD>
    <TD vAlign=bottom width="22"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="17"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right width="67">
    <FONT size="2">53,974</FONT></TD>
    <TD vAlign=bottom width="24" align="left"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="17"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right width="64">
    <FONT face="Times New Roman" size="2">54,349</FONT></TD>
    <TD vAlign=bottom align=left width="9">
    </TD>
    </TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top width="721">
      <p style="text-indent: -1em; margin-left: 3em">
      <font face="Times New Roman" size="2">Accrued Liabilities</font></TD>
    <TD vAlign=bottom width="22"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="17"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right width="67">
    <FONT size="2">57,994</FONT></TD>
    <TD vAlign=bottom width="24" align="left"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="17"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right width="64">
    <FONT face="Times New Roman" size="2">63,071</FONT></TD>
    <TD vAlign=bottom align=left width="9">
    </TD>
    </TR>
  <TR>
    <TD vAlign=top width="721">
      <p style="text-indent: -1em; margin-left: 3em">
      <font face="Times New Roman" size="2">Income Taxes Payable</font></TD>
    <TD vAlign=bottom width="22"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="17"
    style="border-bottom: 1px solid #000000"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right width="67"
    style="border-bottom: 1px solid #000000">
    <FONT size="2">2,474</FONT></TD>
    <TD vAlign=bottom width="24" align="left"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="17"
    style="border-bottom: 1px solid #000000"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right width="64"
    style="border-bottom: 1px solid #000000">
    <FONT face="Times New Roman" size="2">1,051</FONT></TD>
    <TD vAlign=bottom align=left width="9">
    </TD>
    </TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top width="721">
      <P style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Total Current Liabilities</FONT></P></TD>
    <TD vAlign=bottom width="22"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="17"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right width="67">
    <FONT size="2">132,775</FONT></TD>
    <TD vAlign=bottom width="24" align="left"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="17"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right width="64">
    <FONT face="Times New Roman" size="2">136,804</FONT></TD>
    <TD vAlign=bottom align=left width="9">
    </TD>
    </TR>
  <TR>
    <TD vAlign=top width="721" bgcolor="#FFFFFF">
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Long-Term Debt, Less Current Portion</FONT></P></TD>
    <TD vAlign=bottom width="22" bgcolor="#FFFFFF"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="17" bgcolor="#FFFFFF"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right width="67" bgcolor="#FFFFFF">
    <FONT size="2">82,309</FONT></TD>
    <TD vAlign=bottom width="24" bgcolor="#FFFFFF" align="left"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="17" bgcolor="#FFFFFF"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right width="64" bgcolor="#FFFFFF">
    <FONT face="Times New Roman" size="2">77,109</FONT></TD>
    <TD vAlign=bottom align=left width="9" bgcolor="#FFFFFF">
    &nbsp;</TD>
    </TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top width="721">
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Other Long-Term Liabilities</FONT></P></TD>
    <TD vAlign=bottom width="22"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="17"
    style="border-bottom: 1px solid #000000"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right width="67"
    style="border-bottom: 1px solid #000000">
    <FONT size="2">67,690</FONT></TD>
    <TD vAlign=bottom width="24" align="left"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="17"
    style="border-bottom: 1px solid #000000"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right width="64"
    style="border-bottom: 1px solid #000000">
    <FONT face="Times New Roman" size="2">67,625</FONT></TD>
    <TD vAlign=bottom align=left width="9">
    </TD>
    </TR>
  <tr>
    <TD vAlign=bottom width="721">
    <font face="Times New Roman" size="2">Total Liabilities</font></TD>
    <TD vAlign=bottom width="22"></TD>
    <TD vAlign=bottom width="17">&nbsp;</TD>
    <TD vAlign=bottom align=right width="67">
    <FONT size="2">282,774</FONT></TD>
    <TD vAlign=bottom width="24" align="left">&nbsp;</TD>
    <TD vAlign=bottom width="17">&nbsp;</TD>
    <TD vAlign=bottom align=right width="64">
    <FONT face="Times New Roman" size="2">281,538</FONT></TD>
    <TD vAlign=bottom align=left width="9">
    </TD>
  </tr>
  <TR bgColor=#cceeff>
    <TD vAlign=top width="721">
      </TD>
    <TD vAlign=bottom width="22"></TD>
    <TD vAlign=bottom width="17">
    </TD>
    <TD vAlign=bottom width="67">
    </TD>
    <TD vAlign=bottom width="24" align="left"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="17">
    </TD>
    <TD vAlign=bottom width="64">
    </TD>
    <TD vAlign=bottom width="9" align="left">
    </TD>
    </TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top width="721" bgcolor="#FFFFFF">
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Stockholders' Equity</FONT></P></TD>
    <TD vAlign=bottom width="22" bgcolor="#FFFFFF"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="17" bgcolor="#FFFFFF"><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="67" bgcolor="#FFFFFF"><FONT size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="24" bgcolor="#FFFFFF" align="left"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="17" bgcolor="#FFFFFF"><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="64" bgcolor="#FFFFFF"><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="9" bgcolor="#FFFFFF" align="left">&nbsp;</TD>
    </TR>
  <TR>
    <TD vAlign=top width="721" bgcolor="#CCEEFF">
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Common Stock, Par Value $2.50 per Share, Authorized 24,000,000
      Shares, Outstanding</FONT></P></TD>
    <TD vAlign=bottom width="22" bgcolor="#CCEEFF"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="17" bgcolor="#CCEEFF"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right width="67" bgcolor="#CCEEFF"></TD>
    <TD vAlign=bottom width="24" bgcolor="#CCEEFF" align="left"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="17" bgcolor="#CCEEFF"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right width="64" bgcolor="#CCEEFF"></TD>
    <TD vAlign=bottom align=left width="9" bgcolor="#CCEEFF">&nbsp;</TD>
    </TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top width="721" bgcolor="#FFFFFF">
    <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em">
      <FONT
      face="Times New Roman" size=2>8,740,891 Shares in 2006 and 8,698,148 Shares in 2005, Net of
      Treasury Shares</FONT></TD>
    <TD vAlign=bottom width="22" bgcolor="#FFFFFF"></TD>
    <TD vAlign=bottom width="17" bgcolor="#FFFFFF"></TD>
    <TD vAlign=bottom align=right width="67" bgcolor="#FFFFFF">
    <FONT size="2">28,590</FONT></TD>
    <TD vAlign=bottom width="24" bgcolor="#FFFFFF" align="left"></TD>
    <TD vAlign=bottom width="17" bgcolor="#FFFFFF"></TD>
    <TD vAlign=bottom align=right width="64" bgcolor="#FFFFFF">
    <FONT face="Times New Roman" size="2">28,450</FONT></TD>
    <TD vAlign=bottom align=left width="9" bgcolor="#FFFFFF">
    &nbsp;</TD>
    </TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top width="721">
    <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em">
      <font face="Times New Roman" size="2">Additional Paid-In Capital</font></TD>
    <TD vAlign=bottom width="22"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="17"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right width="67">
    <FONT size="2">31,520</FONT></TD>
    <TD vAlign=bottom width="24" align="left"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="17"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right width="64">
    <FONT face="Times New Roman" size="2">28,936</FONT></TD>
    <TD vAlign=bottom align=left width="9">
    </TD>
    </TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top width="721" bgcolor="#FFFFFF">
    <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em">
      <font face="Times New Roman" size="2">Unearned Restricted Stock</font></TD>
    <TD vAlign=bottom width="22" bgcolor="#FFFFFF"></TD>
    <TD vAlign=bottom width="17" bgcolor="#FFFFFF"></TD>
    <TD vAlign=bottom align=right width="67" bgcolor="#FFFFFF">
    <FONT size="2">(3,229</FONT></TD>
    <TD width="24" bgcolor="#FFFFFF" align="left"><FONT size=2>)</FONT></TD>
    <TD vAlign=bottom width="17" bgcolor="#FFFFFF"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right width="64" bgcolor="#FFFFFF">
    <FONT face="Times New Roman" size="2">(2,084</FONT></TD>
    <TD vAlign=bottom align=left width="9" bgcolor="#FFFFFF">
    <FONT size="2">)</FONT></TD>
    </TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top width="721">
    <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em">
      <font face="Times New Roman" size="2">Retained Earnings</font></TD>
    <TD vAlign=bottom width="22"></TD>
    <TD vAlign=bottom width="17"></TD>
    <TD vAlign=bottom align=right width="67">
    <FONT size="2">328,657</FONT></TD>
    <TD vAlign=bottom width="24" align="left"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="17"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right width="64">
    <FONT face="Times New Roman" size="2">326,795</FONT></TD>
    <TD vAlign=bottom align=left width="9">
    </TD>
    </TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top width="721" bgcolor="#FFFFFF">
    <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em">
      <font face="Times New Roman" size="2">Accumulated Other Comprehensive Loss</font></TD>
    <TD vAlign=bottom width="22" bgcolor="#FFFFFF"></TD>
    <TD vAlign=bottom width="17" bgcolor="#FFFFFF"></TD>
    <TD vAlign=bottom align=right width="67" bgcolor="#FFFFFF">
    <FONT size="2">(35,767</FONT></TD>
    <TD width="24" bgcolor="#FFFFFF" align="left"><FONT size=2>)</FONT></TD>
    <TD vAlign=bottom width="17" bgcolor="#FFFFFF"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right width="64" bgcolor="#FFFFFF">
    <FONT face="Times New Roman" size="2">(36,324</FONT></TD>
    <TD vAlign=bottom align=left width="9" bgcolor="#FFFFFF">
    <FONT size="2">)</FONT></TD>
    </TR>
  <TR>
    <TD vAlign=bottom width="721" bgcolor="#CCEEFF">
    <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em">
    <font face="Times New Roman" size="2">Treasury Stock (2,695,068 Shares in
    2006 and 2,681,811 Shares in 2005)</font></TD>
    <TD vAlign=bottom width="22" bgcolor="#CCEEFF"></TD>
    <TD vAlign=bottom width="17" bgcolor="#CCEEFF"
    style="border-bottom: 1px solid #000000">
    </TD>
    <TD vAlign=bottom align=right width="67" bgcolor="#CCEEFF"
    style="border-bottom: 1px solid #000000">
    <FONT size="2">(49,985</FONT></TD>
    <TD width="24" bgcolor="#CCEEFF" align="left"><FONT size=2>)</FONT></TD>
    <TD vAlign=bottom width="17" bgcolor="#CCEEFF"
    style="border-bottom: 1px solid #000000"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right width="64" bgcolor="#CCEEFF"
    style="border-bottom: 1px solid #000000">
    <FONT face="Times New Roman" size="2">(49,275</FONT></TD>
    <TD vAlign=bottom align=left width="9" bgcolor="#CCEEFF">
    <FONT size="2">)</FONT></TD>
    </TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top width="721" bgcolor="#FFFFFF">
      <P style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Total Stockholders' Equity</FONT></P></TD>
    <TD vAlign=bottom width="22" bgcolor="#FFFFFF"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="17"
    style="border-bottom: 1px solid #000000" bgcolor="#FFFFFF"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right width="67"
    style="border-bottom: 1px solid #000000" bgcolor="#FFFFFF">
    <FONT size="2">299,786</FONT></TD>
    <TD vAlign=bottom width="24" bgcolor="#FFFFFF" align="left"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="17"
    style="border-bottom: 1px solid #000000" bgcolor="#FFFFFF"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right width="64"
    style="border-bottom: 1px solid #000000" bgcolor="#FFFFFF">
    <FONT face="Times New Roman" size="2">296,498</FONT></TD>
    <TD vAlign=bottom align=left width="9" bgcolor="#FFFFFF">
    &nbsp;</TD>
    </TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top width="721">
      <FONT face="Times New Roman" size=2>Total Liabilities and Stockholders'
      Equity</FONT></P></TD>
    <TD vAlign=bottom width="22"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="17"
    style="border-bottom: 3px double #000000"><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="67"
    style="border-bottom: 3px double #000000">
    <FONT size="2">582,560</FONT></TD>
    <TD vAlign=bottom width="24" align="left"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="17"
    style="border-bottom: 3px double #000000"><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="64"
    style="border-bottom: 3px double #000000">
    <FONT face="Times New Roman" size="2">578,036</FONT></TD>
    <TD vAlign=bottom align=left width="9">
    </TD>
    </TR>
  </TABLE>
  </center>
</div>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>See accompanying notes to consolidated financial
statements.</FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT size=1></FONT>&nbsp;</P>
<P style="PAGE-BREAK-BEFORE: always">
<HR align=center width="100%" color=#999999 SIZE=3>


<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center>
<FONT face="Times New Roman" size=2><B>AMERON INTERNATIONAL CORPORATION
AND SUBSIDIARIES</B></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px" align="center">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=left><FONT
face="Times New Roman" size=2><B>CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)</B></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>

<div align="center">
<TABLE style="BORDER-COLLAPSE: collapse" cellPadding=0
width="90%" border=0>

  <TR bgColor=#cceeff>
    <TD vAlign=top width="664" bgcolor="#FFFFFF">&nbsp;</TD>
    <TD vAlign=bottom width="21" bgcolor="#FFFFFF">&nbsp;</TD>
    <TD vAlign=bottom width="193" bgcolor="#FFFFFF" colspan="5" align="center">
    <FONT size="1"><B>Three Months Ended</B></FONT><HR color="#000000" noshade size="1"></TD>
    <TD width="8" align="left" bgcolor="#FFFFFF">&nbsp;</TD>
    </TR>
  <TR bgColor=#cceeff>
    <TD vAlign=bottom width="664" bgcolor="#FFFFFF">
      <FONT face="Times New Roman" size=1><B>(In thousands)</B></FONT></TD>
    <TD vAlign=bottom width="21" bgcolor="#FFFFFF">&nbsp;</TD>
    <TD vAlign=bottom width="90" bgcolor="#FFFFFF" colspan="2">
    <P align="center"><FONT size="1"><B>March 5,<BR>2006</B></FONT><BR>
    <HR color="#000000" noshade size="1"></TD></P>
    <TD vAlign=bottom width="22" bgcolor="#FFFFFF" align="left">&nbsp;</TD>
    <TD vAlign=bottom width="81" bgcolor="#FFFFFF" colspan="2">
    <P align="center"><FONT size="1"><B>February 27,<BR>2005</B></FONT><BR>
    <HR color="#000000" noshade size="1"></TD></P>
    <TD width="8" align="left" bgcolor="#FFFFFF">&nbsp;</TD>
    </TR>
  <TR bgColor=#cceeff>
    <TD width="664" bgcolor="#FFFFFF">
      <FONT face="Times New Roman" size=2><B>Cash Flows from Operating Activities</B></FONT></TD>
    <TD vAlign=bottom width="21" bgcolor="#FFFFFF">&nbsp;</TD>
    <TD vAlign=bottom width="18" bgcolor="#FFFFFF">&nbsp;</TD>
    <TD vAlign=bottom width="72" align="right" bgcolor="#FFFFFF">&nbsp;</TD>
    <TD width="22" bgcolor="#FFFFFF" align="left">&nbsp;</TD>
    <TD vAlign=bottom width="18" bgcolor="#FFFFFF">&nbsp;</TD>
    <TD vAlign=bottom width="63" align="right" bgcolor="#FFFFFF">&nbsp;</TD>
    <TD width="8" align="left" bgcolor="#FFFFFF">&nbsp;</TD>
    </TR>
  <TR bgColor=#cceeff>
    <TD width="664">
      <FONT face="Times New Roman" size=2>Net Income</FONT></TD>
    <TD vAlign=bottom width="21"></TD>
    <TD vAlign=bottom width="18"><FONT size="2">$</FONT></TD>
    <TD vAlign=bottom width="72" align="right">
    <FONT size="2">3,611</FONT></TD>
    <TD width="22" align="left">&nbsp;</TD>
    <TD vAlign=bottom width="18"><FONT size="2">$</FONT></TD>
    <TD vAlign=bottom width="63" align="right"><FONT size="2">481</FONT></TD>
    <TD width="8" align="left">&nbsp;</TD>
    </TR>
  <TR bgColor=#cceeff>
    <TD width="664" bgcolor="#FFFFFF">
      <FONT face="Times New Roman" size="2">Adjustments to Reconcile Net
      Income to Net Cash Provided by Operating Activities:</FONT></TD>
    <TD vAlign=bottom width="21" bgcolor="#FFFFFF">&nbsp;</TD>
    <TD vAlign=bottom width="18" bgcolor="#FFFFFF">&nbsp;</TD>
    <TD vAlign=bottom width="72" bgcolor="#FFFFFF" align="right">&nbsp;</TD>
    <TD vAlign=bottom width="22" bgcolor="#FFFFFF" align="left">&nbsp;</TD>
    <TD vAlign=bottom width="18" bgcolor="#FFFFFF">&nbsp;</TD>
    <TD vAlign=bottom width="63" bgcolor="#FFFFFF" align="right">&nbsp;</TD>
    <TD vAlign=bottom width="8" bgcolor="#FFFFFF" align="left">&nbsp;</TD>
    </TR>
  <TR bgColor=#cceeff>
    <TD width="664">
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size="2">Depreciation</FONT></P></TD>
    <TD vAlign=bottom width="21"><FONT size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="18"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="72" align="right"><FONT size="2">4,646</FONT></TD>
    <TD vAlign=bottom width="22" align="left">&nbsp;</TD>
    <TD vAlign=bottom width="18"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="63" align="right"><FONT size="2">4,803</FONT></TD>
    <TD vAlign=bottom width="8" align="left">&nbsp;</TD>
    </TR>
  <TR>
    <TD width="664">
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em">
      <font face="Times New Roman" size="2">Amortization</font></P></TD>
    <TD vAlign=bottom width="21"><FONT size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="18"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="72" align="right"><FONT size="2">51</FONT></TD>
    <TD vAlign=bottom width="22" align="left">&nbsp;</TD>
    <TD vAlign=bottom width="18"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="63" align="right"><FONT size="2">51</FONT></TD>
    <TD vAlign=bottom width="8" align="left">&nbsp;</TD>
    </TR>
  <TR bgColor=#cceeff>
    <TD width="664">
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em">
      <FONT face="Times New Roman" size="2">Provision (Benefit) for Deferred Income Taxes</FONT></P></TD>
    <TD vAlign=bottom width="21"><FONT size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="18"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="72" align="right"><FONT size="2">(99</FONT></TD>
    <TD vAlign=bottom width="22" align="left"><FONT size="2">)</FONT></TD>
    <TD vAlign=bottom width="18"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="63" align="right"><FONT size="2">103</FONT></TD>
    <TD vAlign=bottom width="8" align="left">&nbsp;</TD>
    </TR>
  <TR>
    <TD width="664">
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em">
      <font face="Times New Roman" size="2">Net Earnings and Distributions from
      Joint Ventures</font></TD>
    <TD vAlign=bottom width="21"><FONT size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="18"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="72" align="right"><FONT size="2">(596</FONT></TD>
    <TD vAlign=bottom width="22" align="left"><FONT size="2">)</FONT></TD>
    <TD vAlign=bottom width="18"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="63" align="right"><FONT size="2">847</FONT></TD>
    <TD vAlign=bottom width="8" align="left">&nbsp;</TD>
    </TR>
  <TR bgColor=#cceeff>
    <TD width="664">
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em">
      <font face="Times New Roman" size="2">Gain from Sale of Assets</font></TD>
    <TD vAlign=bottom width="21"><FONT size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="18"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="72" align="right"><FONT size="2">(46</FONT></TD>
    <TD vAlign=bottom width="22" align="left"><FONT size="2">)</FONT></TD>
    <TD vAlign=bottom width="18"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="63" align="right"><FONT size="2">(56</FONT></TD>
    <TD vAlign=bottom width="8" align="left"><FONT size="2">)</FONT></TD>
    </TR>
  <TR>
    <TD width="664">
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em">
      <font face="Times New Roman" size="2">Stock Compensation Expense</font></TD>
    <TD vAlign=bottom width="21"><FONT size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="18"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="72" align="right"><FONT size="2">1,366</FONT></TD>
    <TD vAlign=bottom width="22" align="left">&nbsp;</TD>
    <TD vAlign=bottom width="18"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="63" align="right"><FONT size="2">30</FONT></TD>
    <TD vAlign=bottom width="8" align="left">&nbsp;</TD>
    </TR>
  <TR bgColor=#cceeff>
    <TD width="664">
      <font face="Times New Roman" size="2">Changes in Operating Assets and
      Liabilities:</font></TD>
    <TD vAlign=bottom width="21"><FONT size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="18"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="72" align="right">&nbsp;</TD>
    <TD vAlign=bottom width="22" align="left">&nbsp;</TD>
    <TD vAlign=bottom width="18"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="63" align="right">&nbsp;</TD>
    <TD vAlign=bottom width="8" align="left">&nbsp;</TD>
    </TR>
  <TR>
    <TD width="664">
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em">
      <font face="Times New Roman" size="2">Receivables</font></TD>
    <TD vAlign=bottom width="21"><FONT size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="18"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="72" align="right"><FONT size="2">3,278</FONT></TD>
    <TD width="22" align="left">&nbsp;</TD>
    <TD vAlign=bottom width="18"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="63" align="right"><FONT size="2">11,959</FONT></TD>
    <TD vAlign=bottom width="8" align="left">&nbsp;</TD>
    </TR>
  <TR bgColor=#cceeff>
    <TD width="664">
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em">
      <font face="Times New Roman" size="2">Inventories</font></TD>
    <TD vAlign=bottom width="21"><FONT size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="18"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="72" align="right"><FONT size="2">(5,939</FONT></TD>
    <TD vAlign=bottom width="22" align="left"><FONT size="2">)</FONT></TD>
    <TD vAlign=bottom width="18"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="63" align="right"><FONT size="2">(6,383</FONT></TD>
    <TD vAlign=bottom width="8" align="left"><FONT size="2">)</FONT></TD>
    </TR>
  <TR>
    <TD width="664">
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em">
      <font face="Times New Roman" size="2">Prepaid Expenses and Other Current
      Assets</font></TD>
    <TD vAlign=bottom width="21"><FONT size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="18"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="72" align="right"><FONT size="2">(759</FONT></TD>
    <TD vAlign=bottom width="22" align="left"><FONT size="2">)</FONT></TD>
    <TD vAlign=bottom width="18"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="63" align="right"><FONT size="2">(160</FONT></TD>
    <TD vAlign=bottom width="8" align="left"><FONT size="2">)</FONT></TD>
    </TR>
  <TR bgColor=#cceeff>
    <TD width="664">
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em">
      <font face="Times New Roman" size="2">Other Assets</font></TD>
    <TD vAlign=bottom width="21"><FONT size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="18"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="72" align="right"><FONT size="2">741</FONT></TD>
    <TD vAlign=bottom width="22" align="left">&nbsp;</TD>
    <TD vAlign=bottom width="18"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="63" align="right"><FONT size="2">(4,118</FONT></TD>
    <TD vAlign=bottom width="8" align="left"><FONT size="2">)</FONT></TD>
    </TR>
  <TR>
    <TD width="664">
    <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em">
      <font face="Times New Roman" size="2">Trade Payables</font></TD>
    <TD vAlign=bottom width="21"></TD>
    <TD vAlign=bottom width="18"></TD>
    <TD vAlign=bottom width="72" align="right"><FONT size="2">(1,110</FONT></TD>
    <TD vAlign=bottom width="22" align="left"><FONT size="2">)</FONT></TD>
    <TD vAlign=bottom width="18"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="63" align="right"><FONT size="2">(1,522</FONT></TD>
    <TD vAlign=bottom width="8" align="left"><FONT size="2">)</FONT></TD>
    </TR>
  <TR>
    <TD width="664" bgcolor="#CCEEFF">
    <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em">
      <font face="Times New Roman" size="2">Accrued Liabilities and Income Taxes
      Payable</font></TD>
    <TD vAlign=bottom width="21" bgcolor="#CCEEFF"></TD>
    <TD vAlign=bottom width="18" bgcolor="#CCEEFF"></TD>
    <TD vAlign=bottom width="72" align="right" bgcolor="#CCEEFF"><FONT size="2">
    (3,788</FONT></TD>
    <TD vAlign=bottom width="22" bgcolor="#CCEEFF" align="left"><FONT size="2">)</FONT></TD>
    <TD vAlign=bottom width="18" bgcolor="#CCEEFF"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="63" align="right" bgcolor="#CCEEFF"><FONT size="2">191</FONT></TD>
    <TD vAlign=bottom width="8" align="left" bgcolor="#CCEEFF">&nbsp;</TD>
    </TR>
  <TR>
    <TD width="664">
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Other Long-Term Liabilities</FONT></P></TD>
    <TD vAlign=bottom width="21"><FONT size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="18" style="border-bottom: 1px solid #000000"><FONT face="Times New Roman" size=2>
    &nbsp;</FONT></TD>
    <TD vAlign=bottom width="72" align="right"
    style="border-bottom: 1px solid #000000"><FONT size="2">58</FONT></TD>
    <TD vAlign=bottom width="22" align="left">&nbsp;</TD>
    <TD vAlign=bottom width="18" style="border-bottom: 1px solid #000000"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="63" align="right"
    style="border-bottom: 1px solid #000000"><FONT size="2">2,845</FONT></TD>
    <TD vAlign=bottom width="8" align="left">&nbsp;</TD>
    </TR>
  <TR>
    <TD vAlign=bottom width="664" bgcolor="#CCEEFF"><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="21" bgcolor="#CCEEFF"><FONT size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="18" bgcolor="#CCEEFF">
      &nbsp;</TD>
    <TD vAlign=bottom width="72" align="right" bgcolor="#CCEEFF">&nbsp;</TD>
    <TD vAlign=bottom width="22" bgcolor="#CCEEFF" align="left">&nbsp;</TD>
    <TD vAlign=bottom width="18" bgcolor="#CCEEFF">
      &nbsp;</TD>
    <TD vAlign=bottom width="63" align="right" bgcolor="#CCEEFF">
      &nbsp;</TD>
    <TD vAlign=bottom width="8" align="left" bgcolor="#CCEEFF">
      &nbsp;</TD>
    </TR>
  <TR bgColor=#cceeff>
    <TD width="664" bgcolor="#FFFFFF">
      <P style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Net Cash Provided by Operating
      Activities</FONT></P></TD>
    <TD vAlign=bottom width="21" bgcolor="#FFFFFF"><FONT size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="18" bgcolor="#FFFFFF"
    style="border-bottom: 1px solid #000000"><FONT face="Times New Roman" size=2>
    &nbsp;</FONT></TD>
    <TD vAlign=bottom width="72" align="right" bgcolor="#FFFFFF"
    style="border-bottom: 1px solid #000000"><FONT size="2">1,414</FONT></TD>
    <TD vAlign=bottom width="22" bgcolor="#FFFFFF" align="left">&nbsp;</TD>
    <TD vAlign=bottom width="18" bgcolor="#FFFFFF"
    style="border-bottom: 1px solid #000000"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="63" align="right" bgcolor="#FFFFFF"
    style="border-bottom: 1px solid #000000"><FONT size="2">9,071</FONT></TD>
    <TD vAlign=bottom width="8" align="left" bgcolor="#FFFFFF">&nbsp;</TD>
    </TR>
  <TR>
    <TD vAlign=bottom width="664" bgcolor="#CCEEFF"><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="21" bgcolor="#CCEEFF"><FONT size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="18" bgcolor="#CCEEFF">
      &nbsp;</TD>
    <TD vAlign=bottom width="72" align="right" bgcolor="#CCEEFF">&nbsp;</TD>
    <TD vAlign=bottom width="22" bgcolor="#CCEEFF" align="left">&nbsp;</TD>
    <TD vAlign=bottom width="18" bgcolor="#CCEEFF">
      &nbsp;</TD>
    <TD vAlign=bottom width="63" align="right" bgcolor="#CCEEFF">
      &nbsp;</TD>
    <TD vAlign=bottom width="8" align="left" bgcolor="#CCEEFF">
      &nbsp;</TD>
    </TR>
  <TR bgColor=#cceeff>
    <TD width="664" bgcolor="#FFFFFF">
      <FONT face="Times New Roman" size=2><B>Cash Flows from Investing Activities</B></FONT></P></TD>
    <TD vAlign=bottom width="21" bgcolor="#FFFFFF"><FONT size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="18" bgcolor="#FFFFFF"><FONT size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="72" align="right" bgcolor="#FFFFFF">&nbsp;</TD>
    <TD vAlign=bottom width="22" bgcolor="#FFFFFF" align="left">&nbsp;</TD>
    <TD vAlign=bottom width="18" bgcolor="#FFFFFF"><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="63" align="right" bgcolor="#FFFFFF">&nbsp;</TD>
    <TD vAlign=bottom width="8" align="left" bgcolor="#FFFFFF">&nbsp;</TD>
    </TR>
  <TR>
    <TD width="664" bgcolor="#CCEEFF">
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em">
      <font face="Times New Roman" size="2">Proceeds from Sale of Assets</font></P></TD>
    <TD vAlign=bottom width="21" bgcolor="#CCEEFF"><FONT size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="18" bgcolor="#CCEEFF"><FONT face="Times New Roman" size=2>
    &nbsp;</FONT></TD>
    <TD vAlign=bottom width="72" align="right" bgcolor="#CCEEFF"><FONT size="2">
    154</FONT></TD>
    <TD vAlign=bottom width="22" bgcolor="#CCEEFF" align="left">&nbsp;</TD>
    <TD vAlign=bottom width="18" bgcolor="#CCEEFF"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="63" align="right" bgcolor="#CCEEFF"><FONT size="2">278</FONT></TD>
    <TD vAlign=bottom width="8" align="left" bgcolor="#CCEEFF">&nbsp;</TD>
    </TR>
  <TR bgColor=#cceeff>
    <TD width="664" bgcolor="#FFFFFF">
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em">
      <font face="Times New Roman" size="2">Additions to Property,
      Plant and Equipment</font></TD>
    <TD vAlign=bottom width="21" bgcolor="#FFFFFF"><FONT size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="18" bgcolor="#FFFFFF"
    style="border-bottom: 1px solid #000000"><FONT face="Times New Roman" size=2>
    &nbsp;</FONT></TD>
    <TD vAlign=bottom width="72" align="right" bgcolor="#FFFFFF"
    style="border-bottom: 1px solid #000000"><FONT size="2">(4,345</FONT></TD>
    <TD vAlign=bottom width="22" bgcolor="#FFFFFF" align="left"><FONT size="2">)</FONT></TD>
    <TD vAlign=bottom width="18" bgcolor="#FFFFFF"
    style="border-bottom: 1px solid #000000"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="63" align="right" bgcolor="#FFFFFF"
    style="border-bottom: 1px solid #000000"><FONT size="2">(4,958</FONT></TD>
    <TD vAlign=bottom width="8" align="left" bgcolor="#FFFFFF"><FONT size="2">)</FONT></TD>
    </TR>
  <TR>
    <TD vAlign=bottom width="664" bgcolor="#CCEEFF"><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="21" bgcolor="#CCEEFF"><FONT size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="18" bgcolor="#CCEEFF">
      &nbsp;</TD>
    <TD vAlign=bottom width="72" align="right" bgcolor="#CCEEFF">&nbsp;</TD>
    <TD vAlign=bottom width="22" bgcolor="#CCEEFF" align="left">&nbsp;</TD>
    <TD vAlign=bottom width="18" bgcolor="#CCEEFF">
      &nbsp;</TD>
    <TD vAlign=bottom width="63" align="right" bgcolor="#CCEEFF">
      &nbsp;</TD>
    <TD vAlign=bottom width="8" align="left" bgcolor="#CCEEFF">
      &nbsp;</TD>
    </TR>
  <TR bgColor=#cceeff>
    <TD width="664" bgcolor="#FFFFFF">
      <P style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Net Cash Used in Investing Activities</FONT></P></TD>
    <TD vAlign=bottom width="21" bgcolor="#FFFFFF"><FONT size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="18" bgcolor="#FFFFFF"
    style="border-bottom: 1px solid #000000"><FONT face="Times New Roman" size=2>
    &nbsp;</FONT></TD>
    <TD vAlign=bottom width="72" align="right" bgcolor="#FFFFFF"
    style="border-bottom: 1px solid #000000"><FONT size="2">(4,191</FONT></TD>
    <TD vAlign=bottom width="22" bgcolor="#FFFFFF" align="left"><FONT size="2">)</FONT></TD>
    <TD vAlign=bottom width="18" bgcolor="#FFFFFF"
    style="border-bottom: 1px solid #000000"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="63" align="right" bgcolor="#FFFFFF"
    style="border-bottom: 1px solid #000000"><FONT size="2">(4,680</FONT></TD>
    <TD vAlign=bottom width="8" align="left" bgcolor="#FFFFFF"><FONT size="2">)</FONT></TD>
    </TR>
  <TR>
    <TD vAlign=bottom width="664" bgcolor="#CCEEFF"><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="21" bgcolor="#CCEEFF"><FONT size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="18" bgcolor="#CCEEFF">
      &nbsp;</TD>
    <TD vAlign=bottom width="72" align="right" bgcolor="#CCEEFF">&nbsp;</TD>
    <TD vAlign=bottom width="22" bgcolor="#CCEEFF" align="left">&nbsp;</TD>
    <TD vAlign=bottom width="18" bgcolor="#CCEEFF">
      &nbsp;</TD>
    <TD vAlign=bottom width="63" align="right" bgcolor="#CCEEFF">
      &nbsp;</TD>
    <TD vAlign=bottom width="8" align="left" bgcolor="#CCEEFF">
      &nbsp;</TD>
    </TR>
  <TR bgColor=#cceeff>
    <TD width="664" bgcolor="#FFFFFF">
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2><B>Cash Flows from Financing Activities</B></FONT></P></TD>
    <TD vAlign=bottom width="21" bgcolor="#FFFFFF"><FONT size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="18" bgcolor="#FFFFFF"><FONT size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="72" align="right" bgcolor="#FFFFFF">&nbsp;</TD>
    <TD vAlign=bottom width="22" bgcolor="#FFFFFF" align="left">&nbsp;</TD>
    <TD vAlign=bottom width="18" bgcolor="#FFFFFF"><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="63" align="right" bgcolor="#FFFFFF">&nbsp;</TD>
    <TD vAlign=bottom width="8" align="left" bgcolor="#FFFFFF">&nbsp;</TD>
    </TR>
  <TR bgColor=#cceeff>
    <TD width="664">
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em">
      <font face="Times New Roman" size="2">Issuance of Debt</font></TD>
    <TD vAlign=bottom width="21"><FONT size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="18"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="72" align="right"><FONT size="2">3,888</FONT></TD>
    <TD vAlign=bottom width="22" align="left">&nbsp;</TD>
    <TD vAlign=bottom width="18"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="63" align="right"><FONT size="2">5,891</FONT></TD>
    <TD vAlign=bottom width="8" align="left">&nbsp;</TD>
    </TR>
  <TR>
    <TD width="664">
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em">
      <font face="Times New Roman" size="2">Repayment of Debt</font></TD>
    <TD vAlign=bottom width="21"><FONT size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="18"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="72" align="right"><FONT size="2">(22</FONT></TD>
    <TD vAlign=bottom width="22" align="left"><FONT size="2">)</FONT></TD>
    <TD vAlign=bottom width="18"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="63" align="right"><FONT size="2">(165</FONT></TD>
    <TD vAlign=bottom width="8" align="left"><FONT size="2">)</FONT></TD>
    </TR>
  <TR>
    <TD width="664" bgcolor="#CCEEFF">
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em">
      <font face="Times New Roman" size="2">Dividends on Common Stock</font></TD>
    <TD vAlign=bottom width="21" bgcolor="#CCEEFF"><FONT size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="18" bgcolor="#CCEEFF"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="72" align="right" bgcolor="#CCEEFF"><FONT size="2">(1,749</FONT></TD>
    <TD vAlign=bottom width="22" align="left" bgcolor="#CCEEFF"><FONT size="2">)</FONT></TD>
    <TD vAlign=bottom width="18" bgcolor="#CCEEFF"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="63" align="right" bgcolor="#CCEEFF"><FONT size="2">(1,685</FONT></TD>
    <TD vAlign=bottom width="8" align="left" bgcolor="#CCEEFF"><FONT size="2">)</FONT></TD>
    </TR>
  <tr>
    <TD width="664">
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em">
      <font face="Times New Roman" size="2">Issuance of Common Stock</font></TD>
    <TD vAlign=bottom width="21"><FONT size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="18"><FONT face="Times New Roman" size=2>
    &nbsp;</FONT></TD>
    <TD vAlign=bottom width="72" align="right"><FONT size="2">
    213</FONT></TD>
    <TD vAlign=bottom width="22" align="left">&nbsp;</TD>
    <TD vAlign=bottom width="18"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="63" align="right"><FONT size="2">67</FONT></TD>
    <TD vAlign=bottom width="8" align="left">&nbsp;</TD>
  </tr>
  <tr>
    <TD width="664" bgcolor="#CCEEFF">
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em">
      <font face="Times New Roman" size="2">Change in Treasury Stock</font></TD>
    <TD vAlign=bottom width="21" bgcolor="#CCEEFF"><FONT size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="18" style="border-bottom: 1px solid #000000"
    bgcolor="#CCEEFF"><FONT face="Times New Roman" size=2>
    &nbsp;</FONT></TD>
    <TD vAlign=bottom width="72" align="right"
    style="border-bottom: 1px solid #000000" bgcolor="#CCEEFF"><FONT size="2">(710</FONT></TD>
    <TD vAlign=bottom width="22" align="left" bgcolor="#CCEEFF"><FONT size="2">)</FONT></TD>
    <TD vAlign=bottom width="18" style="border-bottom: 1px solid #000000"
    bgcolor="#CCEEFF"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="63" align="right"
    style="border-bottom: 1px solid #000000" bgcolor="#CCEEFF"><FONT size="2">(250</FONT></TD>
    <TD vAlign=bottom width="8" align="left" bgcolor="#CCEEFF"><FONT size="2">)</FONT></TD>
  </tr>
  <TR>
    <TD vAlign=bottom width="664">&nbsp;</TD>
    <TD vAlign=bottom width="21">&nbsp;</TD>
    <TD vAlign=bottom width="18">
      &nbsp;</TD>
    <TD vAlign=bottom width="72" align="right">&nbsp;</TD>
    <TD vAlign=bottom width="22" align="left">&nbsp;</TD>
    <TD vAlign=bottom width="18">
      &nbsp;</TD>
    <TD vAlign=bottom width="63" align="right">
      &nbsp;</TD>
    <TD vAlign=bottom width="8" align="left">
      &nbsp;</TD>
    </TR>
  <TR bgColor=#cceeff>
    <TD width="664">
      <P style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Net Cash Provided by Financing
      Activities</FONT></P></TD>
    <TD vAlign=bottom width="21">&nbsp;</TD>
    <TD vAlign=bottom width="18"
    style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD vAlign=bottom width="72" align="right"
    style="border-bottom: 1px solid #000000"><FONT size="2">1,620</FONT></TD>
    <TD vAlign=bottom width="22" align="left">&nbsp;</TD>
    <TD vAlign=bottom width="18"
    style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD vAlign=bottom width="63" align="right"
    style="border-bottom: 1px solid #000000"><FONT size="2">3,858</FONT></TD>
    <TD vAlign=bottom width="8" align="left">&nbsp;</TD>
    </TR>
  <TR>
    <TD vAlign=bottom width="664"><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="21">&nbsp;</TD>
    <TD vAlign=bottom width="18">
      &nbsp;</TD>
    <TD vAlign=bottom width="72" align="right">&nbsp;</TD>
    <TD vAlign=bottom width="22" align="left">&nbsp;</TD>
    <TD vAlign=bottom width="18">
      &nbsp;</TD>
    <TD vAlign=bottom width="63" align="right">
      &nbsp;</TD>
    <TD vAlign=bottom width="8" align="left">
      &nbsp;</TD>
    </TR>
  <TR bgColor=#cceeff>
    <TD width="664">
      <font face="Times New Roman" size="2">Effect of Exchange Rate Changes on Cash and
      Cash Equivalents</font></TD>
    <TD vAlign=bottom width="21">&nbsp;</TD>
    <TD vAlign=bottom width="18"
    style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD vAlign=bottom width="72" align="right"
    style="border-bottom: 1px solid #000000"><FONT size="2">170</FONT></TD>
    <TD vAlign=bottom width="22" align="left">&nbsp;</TD>
    <TD vAlign=bottom width="18"
    style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD vAlign=bottom width="63" align="right"
    style="border-bottom: 1px solid #000000"><FONT size="2">11</FONT></TD>
    <TD vAlign=bottom width="8" align="left">&nbsp;</TD>
    </TR>
  <TR>
    <TD width="664">
      </TD>
    <TD vAlign=bottom width="21"></TD>
    <TD vAlign=bottom width="18">
      &nbsp;</TD>
    <TD vAlign=bottom width="72" align="right">&nbsp;</TD>
    <TD vAlign=bottom width="22" align="left">&nbsp;</TD>
    <TD vAlign=bottom width="18">
      &nbsp;</TD>
    <TD vAlign=bottom width="63" align="right">
      &nbsp;</TD>
    <TD vAlign=bottom width="8" align="left">
      &nbsp;</TD>
    </TR>
  <TR>
    <TD width="664" bgcolor="#CCEEFF">
      <font face="Times New Roman" size="2">Net Change in Cash and Cash
      Equivalents</font></TD>
    <TD vAlign=bottom width="21" bgcolor="#CCEEFF">&nbsp;</TD>
    <TD vAlign=bottom width="18" bgcolor="#CCEEFF">&nbsp;</TD>
    <TD vAlign=bottom width="72" align="right" bgcolor="#CCEEFF"><FONT size="2">(987</FONT></TD>
    <TD vAlign=bottom width="22" align="left" bgcolor="#CCEEFF"><FONT size="2">)</FONT></TD>
    <TD vAlign=bottom width="18" bgcolor="#CCEEFF">&nbsp;</TD>
    <TD vAlign=bottom width="63" align="right" bgcolor="#CCEEFF"><FONT size="2">8,260</FONT></TD>
    <TD vAlign=bottom width="8" align="left" bgcolor="#CCEEFF">&nbsp;</TD>
    </TR>
  <TR bgColor=#cceeff>
    <TD vAlign=bottom width="664" bgcolor="#FFFFFF"><FONT face="Times New Roman" size=2>Cash and Cash Equivalents at Beginning of
      Period</FONT></TD>
    <TD vAlign=bottom width="21" bgcolor="#FFFFFF">&nbsp;</TD>
    <TD vAlign=bottom width="18" style="border-bottom: 1px solid #000000"
    bgcolor="#FFFFFF">&nbsp;</TD>
    <TD vAlign=bottom width="72" align="right"
    style="border-bottom: 1px solid #000000" bgcolor="#FFFFFF"><FONT size="2">44,671</FONT></TD>
    <TD vAlign=bottom width="22" align="left" bgcolor="#FFFFFF">&nbsp;</TD>
    <TD vAlign=bottom width="18" style="border-bottom: 1px solid #000000"
    bgcolor="#FFFFFF">&nbsp;</TD>
    <TD vAlign=bottom width="63" align="right"
    style="border-bottom: 1px solid #000000" bgcolor="#FFFFFF"><FONT size="2">30,124</FONT></TD>
    <TD vAlign=bottom width="8" align="left" bgcolor="#FFFFFF">&nbsp;</TD>
    </TR>
  <TR>
    <TD vAlign=bottom width="664" bgcolor="#CCEEFF">&nbsp;</TD>
    <TD vAlign=bottom width="21" bgcolor="#CCEEFF">&nbsp;</TD>
    <TD vAlign=bottom width="18" bgcolor="#CCEEFF">
      &nbsp;</TD>
    <TD vAlign=bottom width="72" align="right" bgcolor="#CCEEFF">&nbsp;</TD>
    <TD vAlign=bottom width="22" align="left" bgcolor="#CCEEFF">&nbsp;</TD>
    <TD vAlign=bottom width="18" bgcolor="#CCEEFF">
      &nbsp;</TD>
    <TD vAlign=bottom width="63" align="right" bgcolor="#CCEEFF">
      &nbsp;</TD>
    <TD vAlign=bottom width="8" align="left" bgcolor="#CCEEFF">
      &nbsp;</TD>
    </TR>
  <TR bgColor=#cceeff>
    <TD width="664" bgcolor="#FFFFFF">
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Cash and Cash Equivalents at End of Period</FONT></P></TD>
    <TD vAlign=bottom width="21" bgcolor="#FFFFFF">&nbsp;</TD>
    <TD vAlign=bottom width="18" style="border-bottom: 3px double #000000"
    bgcolor="#FFFFFF"><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom width="72" align="right"
    style="border-bottom: 3px double #000000" bgcolor="#FFFFFF"><FONT size="2">43,684</FONT></TD>
    <TD vAlign=bottom width="22" align="left" bgcolor="#FFFFFF">&nbsp;</TD>
    <TD vAlign=bottom width="18" style="border-bottom: 3px double #000000"
    bgcolor="#FFFFFF"><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom width="63" align="right"
    style="border-bottom: 3px double #000000" bgcolor="#FFFFFF"><FONT size="2">38,384</FONT></TD>
    <TD vAlign=bottom width="8" align="left" bgcolor="#FFFFFF">&nbsp;</TD>
    </TR>
  </TABLE>
  </center>
</div>

<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT size=1></FONT>&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>See accompanying notes to consolidated financial
statements.</FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT size=1></FONT>&nbsp;</P>

<P style="PAGE-BREAK-BEFORE: always">
<HR align=center width="100%" color=#999999 SIZE=3>

<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center>
<FONT face="Times New Roman" size=2><B>AMERON INTERNATIONAL CORPORATION
AND SUBSIDIARIES </B></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px"><FONT size=1></FONT>&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2><B>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS </B></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2><B>(Dollars in Thousands Except Per Share Data)</B></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center>
<FONT
face="Times New Roman" size=2><B>(Unaudited)</B></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2><B>Note 1.&nbsp;  Basis of Presentation</B></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px"><FONT size=1></FONT>&nbsp;</P>
<p style="line-height: 100%; margin-top:0; margin-bottom:0">


<font size="2">Consolidated financial statements for the
 interim periods included herein are unaudited; however, they contain all
adjustments, including normal recurring accruals, which in the opinion of
management, are necessary to present fairly the consolidated financial position
of Ameron International Corporation and all wholly-owned subsidiaries (the
&quot;Company&quot; or &quot;Ameron&quot; or the &quot;Registrant&quot;) as of
March 5, 2006, and consolidated results of
  operations and cash flows for the three months ended March 5, 2006 and
  February 27, 2005.&nbsp; Accounting measurements at interim dates inherently involve greater reliance
  on estimates than at year-end.&nbsp; Results of operations for the periods
  presented are not necessarily indicative of the results to be expected for
  the full year.</font><p
style="line-height: 100%; margin-top:0; margin-bottom:0">


&nbsp;<p style="line-height: 100%; margin-top:0; margin-bottom:0"><font size="2">For accounting
  consistency, the quarter ends on the Sunday before or after the end of the relevant
  calendar month, such that each quarter consists of approximately 13 full weeks.&nbsp; Ameron's fiscal year ends on November 30, regardless of
  the day of the week.&nbsp; The number of days per quarter can change from period to period.</font></p>
<p style="line-height: 100%; margin-top:0; margin-bottom:0"><font size="2">&nbsp; </font></p>
  <p style="line-height: 100%; margin-top:0; margin-bottom:0"><font size="2">The consolidated financial statements do
  not include certain footnote disclosures and financial information normally
  included in consolidated financial statements prepared in accordance with
  accounting principles generally accepted in the United States of America and,
  therefore, should be read in conjunction with the consolidated financial
  statements and notes included in Ameron's Annual Report on Form&nbsp;10-K for
  the year ended November&nbsp;30, 2005 (&quot;2005 Annual Report&quot;).</font></p>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">
<FONT face="Times New Roman"
size=2><B>Note 2.&nbsp; New Accounting Pronouncements</B></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>

<P style="line-height: 100%; MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT size="2">In May 2005, the
Financial Accounting Standards Board (&quot;FASB&quot;) issued
Statements of Financial Accounting Standards (&quot;SFAS&quot;) No. 154, <I>Accounting Changes and Error Corrections--A Replacement of
APB Opinion No. 20 and FASB Statement No. 3</I>.&nbsp; SFAS No. 154 requires retrospective
application to prior periods' financial statements for changes in accounting
principles, unless it is impracticable to determine either the period-specific
effects or the cumulative effects of the changes.&nbsp; SFAS No. 154 also requires that
retrospective application of a change in accounting principle be limited to the
direct effects of the change. Indirect effects of a change in accounting
principle, such as a change in non-discretionary profit-sharing payments
resulting from an accounting change, should be recognized in the period of the
accounting change.&nbsp; SFAS No. 154 also requires that a change in depreciation,
amortization, or depletion method for long-lived, non-financial assets be
accounted for as a change in accounting estimate affected by a change in
accounting principle. SFAS No. 154 is effective for accounting changes and
corrections of errors made in fiscal years beginning after December 15, 2005.&nbsp; Early adoption is permitted for accounting changes and corrections of errors
made in fiscal years beginning after the date this Statement is issued.&nbsp; The
Company is required to adopt the provision of SFAS No. 154, as applicable, beginning
in fiscal year 2007.&nbsp; Management does not believe the adoption of SFAS No. 154 will
have a material impact on the Company's financial position and results of
operations.</FONT></p>
<P style="line-height: 100%; MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</p>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">
<FONT size="2">In February 2006, the
FASB issued SFAS No. 155, <I>Accounting for Certain Hybrid Financial Instruments</I>.&nbsp;
SFAS No. 155 amends FASB Statement No. 133 and FASB Statement No. 140, and improves the
financial reporting of certain hybrid financial instruments by requiring more
consistent accounting that eliminates exemptions and provides a means to
simplify the accounting for these instruments.&nbsp; Specifically, SFAS No. 155
allows financial instruments that have embedded derivatives to be accounted for
as a whole (eliminating the need to bifurcate the derivative from its host) if
the holder elects to account for the whole instrument on a fair value basis.&nbsp;
SFAS No. 155 is effective for all financial instruments acquired or issued after the
beginning of an entity's first fiscal year that begins after September 15, 2006.&nbsp;
The Company is required to adopt the provisions of SFAS No. 155, as applicable,
beginning in fiscal year 2007.&nbsp; Management does not believe the adoption of SFAS
No. 155 will have a material impact on the Company's financial position and
results of operations.</FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px">&nbsp;</P>

<P style="PAGE-BREAK-BEFORE: always">
<HR align=center width="100%" color=#999999 SIZE=3>

<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2><B>AMERON INTERNATIONAL CORPORATION
AND SUBSIDIARIES
</B></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2><B>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
</B></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2><B>(Unaudited)</B></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>

<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2><B>Note 3.&nbsp;  Inventories </B></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 0%"><FONT
face="Times New Roman" size=2>Inventories are stated at the lower of cost or
market.&nbsp; Inventories consisted of the following:</FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<DIV align="center">
<TABLE style="BORDER-COLLAPSE: collapse" cellPadding=0 width="90%" border=0>

  <TR bgColor=#cceeff>
    <TD vAlign=top width="649" bgcolor="#FFFFFF">
      &nbsp;</TD>
    <TD vAlign=bottom width="19" bgcolor="#FFFFFF">&nbsp;</TD>
    <TD vAlign=bottom width="94" bgcolor="#FFFFFF" colspan="2" align="center">
    <P align="center"><FONT size="1"><B>March 5,<BR>2006</B></FONT><BR>
    <HR color="#000000" noshade size="1"></TD>
    <TD vAlign=bottom width="29" bgcolor="#FFFFFF">&nbsp;</TD>
    <TD vAlign=bottom width="88" bgcolor="#FFFFFF" colspan="2">
    <P align="center"><FONT size="1"><B>November 30,<BR>2005</B></FONT><BR>
    <HR color="#000000" noshade size="1"></TD>
    <TD vAlign=bottom align=left width="8" bgcolor="#FFFFFF">
    &nbsp;</TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top width="649">
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Finished Products</FONT></P></TD>
    <TD vAlign=bottom width="19"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="17"><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="77">
    <FONT size="2">59,291</FONT></TD>
    <TD vAlign=bottom width="29" align="left">&nbsp;</TD>
    <TD vAlign=bottom width="17"><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="71">
    <FONT face="Times New Roman" size="2">54,661</FONT></TD>
    <TD vAlign=bottom align=left width="8">
    &nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="649">
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em">
      <font face="Times New Roman" size="2">Materials and Supplies</font></P></TD>
    <TD vAlign=bottom width="19"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="17"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right width="77">
    <FONT size="2">24,618</FONT></TD>
    <TD vAlign=bottom width="29" align="left">&nbsp;</TD>
    <TD vAlign=bottom width="17"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right width="71">
    <FONT face="Times New Roman" size="2">23,636</FONT></TD>
    <TD vAlign=bottom align=left width="8">
    &nbsp;</TD></TR>
  <tr>
    <TD vAlign=top width="649" bgcolor="#CCEEFF">
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em">
      <font face="Times New Roman" size="2">Products in Process</font></P></TD>
    <TD vAlign=bottom width="19" bgcolor="#CCEEFF"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="17" bgcolor="#CCEEFF"
    style="border-bottom: 1px solid #000000"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right width="77" bgcolor="#CCEEFF"
    style="border-bottom: 1px solid #000000">
    <FONT size="2">21,018</FONT></TD>
    <TD vAlign=bottom width="29" bgcolor="#CCEEFF" align="left">&nbsp;</TD>
    <TD vAlign=bottom width="17" bgcolor="#CCEEFF"
    style="border-bottom: 1px solid #000000"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right width="71" bgcolor="#CCEEFF"
    style="border-bottom: 1px solid #000000">
    <FONT face="Times New Roman" size="2">20,092</FONT></TD>
    <TD vAlign=bottom align=left width="8" bgcolor="#CCEEFF">
    &nbsp;</TD>
  </tr>
  <TR>
    <TD vAlign=bottom width="649">&nbsp;</TD>
    <TD vAlign=bottom width="19"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="17">
      &nbsp;</TD>
    <TD vAlign=bottom width="77">
      &nbsp;</TD>
    <TD vAlign=bottom width="29" align="left">&nbsp;</TD>
    <TD vAlign=bottom width="17">
      &nbsp;</TD>
    <TD vAlign=bottom width="71">
      &nbsp;</TD>
    <TD vAlign=bottom width="8" align="left">
      &nbsp;</TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top width="649">
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em">&nbsp;</P></TD>
    <TD vAlign=bottom width="19"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="17" style="border-bottom: 3px double #000000"><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="77"
    style="border-bottom: 3px double #000000">
    <FONT size="2">104,927</FONT></TD>
    <TD vAlign=bottom width="29" align="left">&nbsp;</TD>
    <TD vAlign=bottom width="17" style="border-bottom: 3px double #000000"><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="71"
    style="border-bottom: 3px double #000000">
    <FONT face="Times New Roman" size="2">98,389</FONT></TD>
    <TD vAlign=bottom align=left width="8">
    &nbsp;</TD></TR>
  </TABLE>


</DIV>
<P style="line-height: 100%; margin-top:0; margin-bottom:0">&nbsp;<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align="left">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align="left">
<FONT face="Times New Roman"
size=2><B>Note 4.&nbsp; Supplemental Disclosure of Cash Flow Information</B></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<div align="center">
  <center>
<TABLE style="BORDER-COLLAPSE: collapse" cellPadding=0
width="90%" border=0>

  <TR>
    <TD vAlign=top width="650" bgcolor="#FFFFFF">
      &nbsp;</TD>
    <TD vAlign=bottom width="16" bgcolor="#FFFFFF">&nbsp;</TD>
    <TD vAlign=bottom width="214" bgcolor="#FFFFFF" colspan="5" align="center">
    <FONT size="1"><B>Three Months Ended</B></FONT><HR color="#000000" noshade
    size="1"></TD>
    <TD vAlign=bottom align=left width="7" bgcolor="#FFFFFF">
    &nbsp;</TD>
    </TR>
  <TR>
    <TD vAlign=top width="650" bgcolor="#FFFFFF">
      &nbsp;</TD>
    <TD vAlign=bottom width="16" bgcolor="#FFFFFF">&nbsp;</TD>
    <TD vAlign=bottom width="97" bgcolor="#FFFFFF" colspan="2" align="center">
    <P align="center"><FONT size="1"><B>March 5,<BR>2006</B></FONT><BR>
    <HR color="#000000" noshade size="1"></TD>
    <TD vAlign=bottom noWrap width="27" bgcolor="#FFFFFF">&nbsp;</TD>
    <TD vAlign=bottom width="90" bgcolor="#FFFFFF" colspan="2" align="center">
    <P align="center"><FONT size="1"><B>February 27,<BR>2005</FONT></B><BR>
    <HR color="#000000" noshade size="1"></TD>
    <TD vAlign=bottom align=left width="7" bgcolor="#FFFFFF">&nbsp;</TD>
    </TR>
  <TR>
    <TD vAlign=top width="650" bgcolor="#CCEEFF">
      <P>
      <font face="Times New Roman" size="2">Interest Paid</font></P></TD>
    <TD vAlign=bottom width="16" bgcolor="#CCEEFF"><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="19" bgcolor="#CCEEFF"><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="78" bgcolor="#CCEEFF">
    <FONT size="2">647</FONT></TD>
    <TD vAlign=bottom noWrap width="27" bgcolor="#CCEEFF"><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="18" bgcolor="#CCEEFF"><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="72" bgcolor="#CCEEFF">
    <FONT face="Times New Roman" size="2">244</FONT></TD>
    <TD vAlign=bottom align=left width="7" bgcolor="#CCEEFF">
    &nbsp;</TD>
    </TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top width="650" bgcolor="#FFFFFF">
      &nbsp;</TD>
    <TD vAlign=bottom width="16" bgcolor="#FFFFFF">&nbsp;</TD>
    <TD vAlign=bottom width="19" bgcolor="#FFFFFF">&nbsp;</TD>
    <TD vAlign=bottom align=right width="78" bgcolor="#FFFFFF">&nbsp;</TD>
    <TD vAlign=bottom noWrap width="27" bgcolor="#FFFFFF">&nbsp;</TD>
    <TD vAlign=bottom width="18" bgcolor="#FFFFFF">&nbsp;</TD>
    <TD vAlign=bottom align=right width="72" bgcolor="#FFFFFF">&nbsp;</TD>
    <TD vAlign=bottom align=left width="7" bgcolor="#FFFFFF">&nbsp;</TD>
    </TR>
  <tr>
    <TD vAlign=top width="650" bgcolor="#CCEEFF">
      <P>
      <font face="Times New Roman" size="2">Income Taxes Paid</font></P></TD>
    <TD vAlign=bottom width="16" bgcolor="#CCEEFF"><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="19" bgcolor="#CCEEFF"><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="78" bgcolor="#CCEEFF">
    <FONT size="2">277</FONT></TD>
    <TD vAlign=bottom noWrap width="27" bgcolor="#CCEEFF"><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="18" bgcolor="#CCEEFF"><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="72" bgcolor="#CCEEFF">
    <FONT face="Times New Roman" size="2">858</FONT></TD>
    <TD vAlign=bottom align=left width="7" bgcolor="#CCEEFF">
    &nbsp;</TD>
    </tr>
  </TABLE>
  </center>
  </div>


<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2><B>Note 5.&nbsp;  Joint Ventures</B></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 0%">
<font face="Times New Roman" size="2">Operating results of TAMCO, an investment
which is accounted for under the equity method, were as follows:</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<DIV align="center">
<TABLE style="BORDER-COLLAPSE: collapse" cellPadding=0
width="90%" border=0>

  <TR bgColor=#cceeff>
    <TD vAlign=top width="650" height="20" bgcolor="#FFFFFF">
      &nbsp;</TD>
    <TD vAlign=bottom width="16" height="20" bgcolor="#FFFFFF">&nbsp;</TD>
    <TD vAlign=bottom width="213" height="20" bgcolor="#FFFFFF" colspan="5"
    align="center"><FONT size="1"><B>Three Months Ended</B></FONT><HR
    color="#000000" noshade size="1"></TD>
    <TD vAlign=bottom align=left width="8" height="20" bgcolor="#FFFFFF">
    &nbsp;</TD>
    </TR>

  <TR bgColor=#cceeff>
    <TD vAlign=top width="650" height="20" bgcolor="#FFFFFF">
      &nbsp;</TD>
    <TD vAlign=bottom width="16" height="20" bgcolor="#FFFFFF">&nbsp;</TD>
    <TD vAlign=bottom width="96" height="20" bgcolor="#FFFFFF" colspan="2">
    <P align="center"><FONT size="1"><B>March 5,<BR>2006</B></FONT><BR>
    <HR color="#000000" noshade size="1"></TD>
    <TD vAlign=bottom width="28" height="20" bgcolor="#FFFFFF">&nbsp;</TD>
    <TD vAlign=bottom width="89" height="20" bgcolor="#FFFFFF" colspan="2">
    <P align="center"><FONT size="1"><B>February 27,<BR>2005</B></FONT><BR>
    <HR color="#000000" noshade size="1"></TD>
    <TD vAlign=bottom align=left width="8" height="20" bgcolor="#FFFFFF">
    &nbsp;</TD>
    </TR>

  <TR bgColor=#cceeff>
    <TD vAlign=top width="650" height="20">
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Net Sales</FONT></P></TD>
    <TD vAlign=bottom width="16" height="20"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="19" height="20"><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="77" height="20">
    <FONT size="2">51,069</FONT></TD>
    <TD vAlign=bottom width="28" height="20"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="18" height="20"><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="71" height="20">
    <FONT face="Times New Roman" size="2">47,185</FONT></TD>
    <TD vAlign=bottom align=left width="8" height="20">
    &nbsp;</TD>
    </TR>
  <TR>
    <TD vAlign=bottom width="650" height="19">&nbsp;</TD>
    <TD vAlign=bottom width="16" height="19"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="19" height="19">
      &nbsp;</TD>
    <TD vAlign=bottom width="77" height="19">
      &nbsp;</TD>
    <TD vAlign=bottom width="28" height="19"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="18" height="19">
      &nbsp;</TD>
    <TD vAlign=bottom width="71" height="19">
      &nbsp;</TD>
    <TD vAlign=bottom width="8" height="19" align="left">
      &nbsp;</TD>
    </TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top width="650" height="15">
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em">
      <font face="Times New Roman" size="2">Gross Profit</font></P></TD>
    <TD vAlign=bottom width="16" height="15"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="19" height="15"><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="77" height="15">
    <FONT size="2">5,102</FONT></TD>
    <TD vAlign=bottom width="28" height="15"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="18" height="15"><FONT face="Times New Roman"
    size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="71" height="15">
    <FONT face="Times New Roman" size="2">4,577</FONT></TD>
    <TD vAlign=bottom align=left width="8" height="15">
    </TD>
    </TR>
  <TR>
    <TD vAlign=top width="650" height="19">
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em">&nbsp;</P></TD>
    <TD vAlign=bottom width="16" height="19"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="19" height="19"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right width="77" height="19">&nbsp;</TD>
    <TD vAlign=bottom width="28" height="19">&nbsp;</TD>
    <TD vAlign=bottom width="18" height="19">&nbsp;</TD>
    <TD vAlign=bottom align=right width="71" height="19">&nbsp;</TD>
    <TD vAlign=bottom align=left width="8" height="19">&nbsp;</TD>
    </TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top width="650" height="15">
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em">
      <font face="Times New Roman" size="2">Net Income</font></P></TD>
    <TD vAlign=bottom width="16" height="15"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="19" height="15"><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="77" height="15">
    <FONT size="2">1,741</FONT></TD>
    <TD vAlign=bottom width="28" height="15"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="18" height="15"><FONT face="Times New Roman"
    size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="71" height="15">
    <FONT face="Times New Roman" size="2">1,598</FONT></TD>
    <TD vAlign=bottom align=left width="8" height="15">
    </TD>
    </TR>
  </TABLE>
</DIV>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<font size="2">

<P style="line-height: 100%; margin-top:0; margin-bottom:0">Investments in Ameron Saudi Arabia,
Ltd. (&quot;ASAL&quot;), Bondstrand, Ltd. (&quot;BL&quot;) and
  Oasis-Ameron, Ltd. (&quot;OAL&quot;) are accounted for under the cost method due to management's
current assessment of the Company's influence over these joint ventures.</font><P style="PAGE-BREAK-BEFORE: always">
<HR align=center width="100%" color=#999999 SIZE=3>

<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2><B>AMERON INTERNATIONAL CORPORATION
AND SUBSIDIARIES
</B></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px"><FONT size=1></FONT>&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2><B>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
</B></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2><B>(Unaudited) </B></FONT></P>


<font size="2"><P style="line-height: 100%">Earnings and dividends from the
Company's&nbsp; joint ventures were as follows:</font>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>

<DIV align="center">
<TABLE style="BORDER-COLLAPSE: collapse" cellPadding=0
width="90%" border=0>

  <TR bgColor=#cceeff>
    <TD vAlign=top width="649" bgcolor="#FFFFFF">
      &nbsp;</TD>
    <TD vAlign=bottom width="19" bgcolor="#FFFFFF">&nbsp;</TD>
    <TD vAlign=bottom width="212" bgcolor="#FFFFFF" colspan="5" align="center">
    <FONT size="1"><B>Three Months Ended</B></FONT><HR color="#000000" noshade
    size="1"></TD>
    <TD vAlign=bottom align=left width="7" bgcolor="#FFFFFF">&nbsp;</TD>
    </TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top width="649" bgcolor="#FFFFFF">
      &nbsp;</TD>
    <TD vAlign=bottom width="19" bgcolor="#FFFFFF">&nbsp;</TD>
    <TD vAlign=bottom width="96" bgcolor="#FFFFFF" colspan="2">
    <P align="center"><FONT size="1"><B>March 5,<BR>2006</B></FONT><BR>
    <HR color="#000000" noshade size="1"></TD>
    <TD vAlign=bottom width="27" bgcolor="#FFFFFF">&nbsp;</TD>
    <TD vAlign=bottom width="89" bgcolor="#FFFFFF" colspan="2">
    <P align="center"><FONT size="1"><B>February 27,<BR>2005</B></FONT><BR>
    <HR color="#000000" noshade size="1"></TD>
    <TD vAlign=bottom align=left width="7" bgcolor="#FFFFFF">&nbsp;</TD>
    </TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top width="649">
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em">
      <font face="Times New Roman" size="2">Earnings from Joint Ventures</font></P></TD>
    <TD vAlign=bottom width="19">&nbsp;</TD>
    <TD vAlign=bottom width="20">&nbsp;</TD>
    <TD vAlign=bottom align=right width="76">&nbsp;</TD>
    <TD vAlign=bottom width="27">&nbsp;</TD>
    <TD vAlign=bottom width="17">&nbsp;</TD>
    <TD vAlign=bottom align=right width="72">&nbsp;</TD>
    <TD vAlign=bottom align=left width="7">&nbsp;</TD>
    </TR>
  <tr>
    <TD vAlign=top width="649">
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em">
      <font face="Times New Roman" size="2">TAMCO</font></P></TD>
    <TD vAlign=bottom width="19"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="20"><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="76">
    <FONT size="2">871</FONT></TD>
    <TD vAlign=bottom width="27"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="17"><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="72">
    <FONT face="Times New Roman" size="2">655</FONT></TD>
    <TD vAlign=bottom align=left width="7">
    &nbsp;</TD>
  </tr>
  <TR bgColor=#cceeff>
    <TD vAlign=top width="649">
      <font face="Times New Roman" size="2">Dividends Received from Joint
      Ventures</font></TD>
    <TD vAlign=bottom width="19">&nbsp;</TD>
    <TD vAlign=bottom width="20">&nbsp;</TD>
    <TD vAlign=bottom align=right width="76">&nbsp;</TD>
    <TD vAlign=bottom width="27">&nbsp;</TD>
    <TD vAlign=bottom width="17">&nbsp;</TD>
    <TD vAlign=bottom align=right width="72">&nbsp;</TD>
    <TD vAlign=bottom align=left width="7">&nbsp;</TD>
    </TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top width="649" bgcolor="#FFFFFF">
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em">
      <font face="Times New Roman" size="2">TAMCO</font></P></TD>
    <TD vAlign=bottom width="19" bgcolor="#FFFFFF"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="20" bgcolor="#FFFFFF"><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="76" bgcolor="#FFFFFF">
    <FONT size="2">275</FONT></TD>
    <TD vAlign=bottom width="27" bgcolor="#FFFFFF"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="17" bgcolor="#FFFFFF"><FONT face="Times New Roman"
    size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="72" bgcolor="#FFFFFF">
    <FONT face="Times New Roman" size="2">1,502</FONT></TD>
    <TD vAlign=bottom align=left width="7" bgcolor="#FFFFFF">
    &nbsp;</TD>
    </TR>
  <tr>
    <TD vAlign=top width="649" bgcolor="#CCEEFF">
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em">
      <font face="Times New Roman" size="2">ASAL</font></P></TD>
    <TD vAlign=bottom width="19" bgcolor="#CCEEFF">&nbsp;</TD>
    <TD vAlign=bottom width="20" bgcolor="#CCEEFF">&nbsp;</TD>
    <TD vAlign=bottom align=right width="76" bgcolor="#CCEEFF"><font size="2">-</font></TD>
    <TD vAlign=bottom width="27" bgcolor="#CCEEFF">&nbsp;</TD>
    <TD vAlign=bottom width="17" bgcolor="#CCEEFF">&nbsp;</TD>
    <TD vAlign=bottom align=right width="72" bgcolor="#CCEEFF"><font size="2">-</font></TD>
    <TD vAlign=bottom align=left width="7" bgcolor="#CCEEFF">&nbsp;</TD>
  </tr>
  <tr>
    <TD vAlign=top width="649">
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em">
      <font face="Times New Roman" size="2">BL</font></P></TD>
    <TD vAlign=bottom width="19">&nbsp;</TD>
    <TD vAlign=bottom width="20">&nbsp;</TD>
    <TD vAlign=bottom align=right width="76"><font size="2">-</font></TD>
    <TD vAlign=bottom width="27">&nbsp;</TD>
    <TD vAlign=bottom width="17">&nbsp;</TD>
    <TD vAlign=bottom align=right width="72"><font size="2">-</font></TD>
    <TD vAlign=bottom align=left width="7">&nbsp;</TD>
  </tr>
  <tr>
    <TD vAlign=top width="649" bgcolor="#CCEEFF">
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em">
      <font face="Times New Roman" size="2">OAL</font></P></TD>
    <TD vAlign=bottom width="19" bgcolor="#CCEEFF">&nbsp;</TD>
    <TD vAlign=bottom width="20" bgcolor="#CCEEFF">&nbsp;</TD>
    <TD vAlign=bottom align=right width="76" bgcolor="#CCEEFF"><font size="2">-</font></TD>
    <TD vAlign=bottom width="27" bgcolor="#CCEEFF">&nbsp;</TD>
    <TD vAlign=bottom width="17" bgcolor="#CCEEFF">&nbsp;</TD>
    <TD vAlign=bottom align=right width="72" bgcolor="#CCEEFF"><font size="2">-</font></TD>
    <TD vAlign=bottom align=left width="7" bgcolor="#CCEEFF">&nbsp;</TD>
  </tr>
</TABLE>
</DIV>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<font size="2"> <P style="line-height: 100%; margin-top:0; margin-bottom:0">
Earnings from ASAL, BL, and OAL, if any, are included in other income.</font><P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2><B>Note 6.&nbsp; Net Income Per Share </B></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font size="2">Basic net income per share is computed on
  the basis of the weighted-average number of common shares outstanding during
  the periods presented. Diluted net income per share is computed on the basis of the weighted-average number of common shares outstanding,
including restricted shares, plus the effect of
  outstanding stock options, using
  the treasury stock method.&nbsp; All outstanding common stock equivalents,
consisting of options to purchase 456,783 and 690,351 common shares, were dilutive for the
three months ended March 5, 2006 and February 27, 2005, respectively.&nbsp; Following is a reconciliation of the
  weighted-average number of shares used in the computation of basic and
  diluted net income per share:</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px">&nbsp;</P>

<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<DIV align="center">
<TABLE style="BORDER-COLLAPSE: collapse" cellPadding=0
width="90%" border=0>

  <TR bgColor=#cceeff>
    <TD vAlign=top width="650" height="20" bgcolor="#FFFFFF">
      &nbsp;</TD>
    <TD vAlign=bottom width="16" height="20" bgcolor="#FFFFFF">&nbsp;</TD>
    <TD vAlign=bottom width="213" height="20" bgcolor="#FFFFFF" colspan="5"
    align="center"><FONT size="1"><B>Three Months Ended</B></FONT><HR
    color="#000000" noshade size="1"></TD>
    <TD vAlign=bottom align=left width="8" height="20" bgcolor="#FFFFFF">
    &nbsp;</TD>
    </TR>

  <TR bgColor=#cceeff>
    <TD vAlign=bottom width="650" height="20" bgcolor="#FFFFFF">
      <P style="text-align: left; margin-left: 0in; margin-right: 0in; margin-top: 0in; margin-bottom: 0pt"
      align="center">&nbsp;</TD>
    <TD vAlign=bottom width="16" height="20" bgcolor="#FFFFFF">&nbsp;</TD>
    <TD vAlign=bottom width="96" height="20" bgcolor="#FFFFFF" colspan="2">
    <P align="center"><FONT size="1"><B>March 5,<BR>2006</B></FONT><BR>
    <HR color="#000000" noshade size="1"></TD>
    <TD vAlign=bottom width="28" height="20" bgcolor="#FFFFFF">&nbsp;</TD>
    <TD vAlign=bottom width="89" height="20" bgcolor="#FFFFFF" colspan="2">
    <P align="center"><FONT size="1"><B>February 27,<BR>2005</B></FONT><BR>
    <HR color="#000000" noshade size="1"></TD>
    <TD vAlign=bottom align=left width="8" height="20" bgcolor="#FFFFFF">
    &nbsp;</TD>
    </TR>

  <TR>
    <TD width="650" height="19"><FONT size="2">Numerator:</FONT></TD>
    <TD vAlign=bottom width="16" height="19"><FONT size=2>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="19" height="19">
      &nbsp;</TD>
    <TD vAlign=bottom width="77" height="19">
      &nbsp;</TD>
    <TD vAlign=bottom width="28" height="19"><FONT size=2>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="18" height="19">
      &nbsp;</TD>
    <TD vAlign=bottom width="71" height="19">
      &nbsp;</TD>
    <TD vAlign=bottom width="8" height="19" align="left">
      &nbsp;</TD>
    </TR>

  <TR bgColor=#cceeff>
    <TD width="650" height="15">
      <P style="MARGIN-LEFT: 10px; TEXT-INDENT: 10px">
      <FONT face="Times New Roman" size="2">Net income</FONT></P></TD>
    <TD vAlign=bottom width="16" height="15"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="19" height="15"
    style="border-bottom: 3px double #000000"><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="77" height="15"
    style="border-bottom: 3px double #000000">
    <FONT size="2">3,611</FONT></TD>
    <TD vAlign=bottom width="28" height="15"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="18" height="15"
    style="border-bottom: 3px double #000000"><FONT face="Times New Roman"
    size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="71" height="15"
    style="border-bottom: 3px double #000000">
    <FONT face="Times New Roman" size="2">481</FONT></TD>
    <TD vAlign=bottom align=left width="8" height="15">
    </TD>
    </TR>
  <TR>
    <TD width="650" height="19">
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em">&nbsp;</P></TD>
    <TD vAlign=bottom width="16" height="19"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="19" height="19"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right width="77" height="19">&nbsp;</TD>
    <TD vAlign=bottom width="28" height="19">&nbsp;</TD>
    <TD vAlign=bottom width="18" height="19">&nbsp;</TD>
    <TD vAlign=bottom align=right width="71" height="19">&nbsp;</TD>
    <TD vAlign=bottom align=left width="8" height="19">&nbsp;</TD>
    </TR>
  <TR bgColor=#cceeff>
    <TD width="650" height="15">
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em">
      <FONT face="Times New Roman" size="2">Denominator for basic income per
      share:</FONT></P></TD>
    <TD vAlign=bottom width="16" height="15"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="19" height="15"
    style="border-bottom-style: none; border-bottom-width: medium"></TD>
    <TD vAlign=bottom align=right width="77" height="15"
    style="border-bottom-style: none; border-bottom-width: medium">
    </TD>
    <TD vAlign=bottom width="28" height="15"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="18" height="15"
    style="border-bottom-style: none; border-bottom-width: medium"></TD>
    <TD vAlign=bottom align=right width="71" height="15"
    style="border-bottom-style: none; border-bottom-width: medium">
    </TD>
    <TD vAlign=bottom align=left width="8" height="15">
    </TD>
    </TR>
  <TR>
    <TD width="650" height="19" bgcolor="#CCEEFF">
    <P style="text-indent: 10px; margin-left: 10px"><FONT size="2">Weighted-average shares outstanding,
    basic</FONT></TD>
    <TD vAlign=bottom width="16" height="19"
    style="border-right-style: none; border-right-width: medium"
    bgcolor="#CCEEFF"><FONT size=2>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="19" height="19"
    style="border-left-style: none; border-left-width: medium; border-right-style: none; border-right-width: medium; border-top-style: none; border-top-width: medium; border-bottom: 3px double #000000"
    bgcolor="#CCEEFF">
      &nbsp;</TD>
    <TD vAlign=bottom width="77" height="19"
    style="border-left-style: none; border-left-width: medium; border-right-style: none; border-right-width: medium; border-top-style: none; border-top-width: medium; border-bottom: 3px double #000000"
    bgcolor="#CCEEFF">
      <P align="right"><FONT size="2">8,614,269</FONT></TD>
    <TD vAlign=bottom width="28" height="19"
    style="border-left-style: none; border-left-width: medium; border-right-style: none; border-right-width: medium"
    bgcolor="#CCEEFF"><FONT size=2>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="18" height="19"
    style="border-left-style: none; border-left-width: medium; border-right-style: none; border-right-width: medium; border-top-style: none; border-top-width: medium; border-bottom: 3px double #000000"
    bgcolor="#CCEEFF">
      &nbsp;</TD>
    <TD vAlign=bottom width="71" height="19"
    style="border-left-style: none; border-left-width: medium; border-right-style: none; border-right-width: medium; border-top-style: none; border-top-width: medium; border-bottom: 3px double #000000"
    bgcolor="#CCEEFF">
      <P align="right"><FONT size="2">8,342,338</FONT></TD>
    <TD vAlign=bottom width="8" height="19" align="left"
    style="border-left-style: none; border-left-width: medium"
    bgcolor="#CCEEFF">
      &nbsp;</TD>
    </TR>
  <TR>
    <TD width="650" height="15">
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em">
      </P></TD>
    <TD vAlign=bottom width="16" height="15"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="19" height="15"
    style="border-bottom-style: none; border-bottom-width: medium"></TD>
    <TD vAlign=bottom align=right width="77" height="15"
    style="border-bottom-style: none; border-bottom-width: medium">
    </TD>
    <TD vAlign=bottom width="28" height="15"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="18" height="15"
    style="border-bottom-style: none; border-bottom-width: medium"></TD>
    <TD vAlign=bottom align=right width="71" height="15"
    style="border-bottom-style: none; border-bottom-width: medium">
    </TD>
    <TD vAlign=bottom align=left width="8" height="15">
    </TD>
    </TR>
  <TR>
    <TD width="650" height="15" bgcolor="#CCEEFF">
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em">
      <FONT face="Times New Roman" size="2">Denominator for diluted income per
      share:</FONT></P></TD>
    <TD vAlign=bottom width="16" height="15" bgcolor="#CCEEFF"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="19" height="15"
    style="border-bottom-style: none; border-bottom-width: medium"
    bgcolor="#CCEEFF">&nbsp;</TD>
    <TD vAlign=bottom align=right width="77" height="15"
    style="border-bottom-style: none; border-bottom-width: medium"
    bgcolor="#CCEEFF">
    &nbsp;</TD>
    <TD vAlign=bottom width="28" height="15" bgcolor="#CCEEFF"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="18" height="15"
    style="border-bottom-style: none; border-bottom-width: medium"
    bgcolor="#CCEEFF">&nbsp;</TD>
    <TD vAlign=bottom align=right width="71" height="15"
    style="border-bottom-style: none; border-bottom-width: medium"
    bgcolor="#CCEEFF">
    &nbsp;</TD>
    <TD vAlign=bottom align=left width="8" height="15" bgcolor="#CCEEFF">
    </TD>
    </TR>
  <TR>
    <TD width="650" height="19">
    <P style="text-indent: 10px; margin-left: 10px"><FONT size="2">Weighted-average shares outstanding,
    basic</FONT></TD>
    <TD vAlign=bottom width="16" height="19"
    style="border-right-style: none; border-right-width: medium"><FONT size=2>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="19" height="19"
    style="border-left-style: none; border-left-width: medium; border-right-style: none; border-right-width: medium; border-top-style: none; border-top-width: medium; border-bottom: medium none #000000">
      &nbsp;</TD>
    <TD vAlign=bottom width="77" height="19"
    style="border-left-style: none; border-left-width: medium; border-right-style: none; border-right-width: medium; border-top-style: none; border-top-width: medium; border-bottom: medium none #000000">
      <P align="right"><FONT size="2">8,614,269</FONT></TD>
    <TD vAlign=bottom width="28" height="19"
    style="border-left-style: none; border-left-width: medium; border-right-style: none; border-right-width: medium">
    <FONT size=2>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="18" height="19"
    style="border-left-style: none; border-left-width: medium; border-right-style: none; border-right-width: medium; border-top-style: none; border-top-width: medium; border-bottom: medium none #000000">
      &nbsp;</TD>
    <TD vAlign=bottom width="71" height="19"
    style="border-left-style: none; border-left-width: medium; border-right-style: none; border-right-width: medium; border-top-style: none; border-top-width: medium; border-bottom: medium none #000000">
      <P align="right"><FONT size="2">8,342,338</FONT></TD>
    <TD vAlign=bottom width="8" height="19" align="left"
    style="border-left-style: none; border-left-width: medium">
      &nbsp;</TD>
    </TR>
  <TR>
    <TD width="650" height="19" bgcolor="#CCEEFF">
    <P style="text-indent: 10px; margin-left: 10px"><FONT size="2">Dilutive
    effect of stock options</FONT></TD>
    <TD vAlign=bottom width="16" height="19"
    style="border-right-style: none; border-right-width: medium"
    bgcolor="#CCEEFF"><FONT size=2>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="19" height="19"
    style="border-left-style: none; border-left-width: medium; border-right-style: none; border-right-width: medium; border-top-style: none; border-top-width: medium; border-bottom: 1px solid #000000"
    bgcolor="#CCEEFF">
      &nbsp;</TD>
    <TD vAlign=bottom width="77" height="19"
    style="border-left-style: none; border-left-width: medium; border-right-style: none; border-right-width: medium; border-top-style: none; border-top-width: medium; border-bottom: 1px solid #000000"
    bgcolor="#CCEEFF">
      <P align="right"><FONT size="2">171,772</FONT></TD>
    <TD vAlign=bottom width="28" height="19"
    style="border-left-style: none; border-left-width: medium; border-right-style: none; border-right-width: medium"
    bgcolor="#CCEEFF"><FONT size=2>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="18" height="19"
    style="border-left-style: none; border-left-width: medium; border-right-style: none; border-right-width: medium; border-top-style: none; border-top-width: medium; border-bottom: 1px solid #000000"
    bgcolor="#CCEEFF">
      &nbsp;</TD>
    <TD vAlign=bottom width="71" height="19"
    style="border-left-style: none; border-left-width: medium; border-right-style: none; border-right-width: medium; border-top-style: none; border-top-width: medium; border-bottom: 1px solid #000000"
    bgcolor="#CCEEFF">
      <P align="right"><FONT size="2">177,521</FONT></TD>
    <TD vAlign=bottom width="8" height="19" align="left"
    style="border-left-style: none; border-left-width: medium"
    bgcolor="#CCEEFF">
      &nbsp;</TD>
    </TR>
  <TR>
    <TD width="650" height="19">
    <P style="text-indent: 10px; margin-left: 10px"><FONT size="2">Weighted-average shares outstanding,
    diluted</FONT></TD>
    <TD vAlign=bottom width="16" height="19"
    style="border-right-style: none; border-right-width: medium"><FONT size=2>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="19" height="19"
    style="border-left-style: none; border-left-width: medium; border-right-style: none; border-right-width: medium; border-top-style: none; border-top-width: medium; border-bottom: 3px double #000000">
      &nbsp;</TD>
    <TD vAlign=bottom width="77" height="19"
    style="border-left-style: none; border-left-width: medium; border-right-style: none; border-right-width: medium; border-top-style: none; border-top-width: medium; border-bottom: 3px double #000000">
      <P align="right"><FONT size="2">8,786,041</FONT></TD>
    <TD vAlign=bottom width="28" height="19"
    style="border-left-style: none; border-left-width: medium; border-right-style: none; border-right-width: medium">
    <FONT size=2>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="18" height="19"
    style="border-left-style: none; border-left-width: medium; border-right-style: none; border-right-width: medium; border-top-style: none; border-top-width: medium; border-bottom: 3px double #000000">
      &nbsp;</TD>
    <TD vAlign=bottom width="71" height="19"
    style="border-left-style: none; border-left-width: medium; border-right-style: none; border-right-width: medium; border-top-style: none; border-top-width: medium; border-bottom: 3px double #000000">
      <P align="right"><FONT size="2">8,519,859</FONT></TD>
    <TD vAlign=bottom width="8" height="19" align="left"
    style="border-left-style: none; border-left-width: medium">
      &nbsp;</TD>
    </TR>
  <TR>
    <TD width="650" height="15" bgcolor="#CCEEFF">
      &nbsp;</TD>
    <TD vAlign=bottom width="16" height="15" bgcolor="#CCEEFF">&nbsp;</TD>
    <TD vAlign=bottom width="19" height="15" bgcolor="#CCEEFF"
    style="border-top-style: none; border-top-width: medium">&nbsp;</TD>
    <TD vAlign=bottom align=right width="77" height="15" bgcolor="#CCEEFF"
    style="border-top-style: none; border-top-width: medium">
    &nbsp;</TD>
    <TD vAlign=bottom width="28" height="15" bgcolor="#CCEEFF">&nbsp;</TD>
    <TD vAlign=bottom width="18" height="15" bgcolor="#CCEEFF"
    style="border-top-style: none; border-top-width: medium">&nbsp;</TD>
    <TD vAlign=bottom align=right width="71" height="15" bgcolor="#CCEEFF"
    style="border-top-style: none; border-top-width: medium">
    &nbsp;</TD>
    <TD vAlign=bottom align=left width="8" height="15" bgcolor="#CCEEFF">
    &nbsp;</TD>
    </TR>
  <TR>
    <TD width="650">
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em">
      <FONT face="Times New Roman" size="2">Basic net income per share</FONT></P></TD>
    <TD vAlign=bottom width="16"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="19"
    style="border-bottom: 3px double #000000"><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="77"
    style="border-bottom: 3px double #000000">
    <FONT size="2">.42</FONT></TD>
    <TD vAlign=bottom width="28"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="18" style="border-bottom: 3px double #000000"><FONT face="Times New Roman"
    size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="71"
    style="border-bottom: 3px double #000000">
    <FONT face="Times New Roman" size="2">.06</FONT></TD>
    <TD vAlign=bottom align=left width="8">
    </TD>
    </TR>
  <TR>
    <TD width="650" height="19" bgcolor="#CCEEFF">&nbsp;</TD>
    <TD vAlign=bottom width="16" height="19"
    style="border-right-style: none; border-right-width: medium"
    bgcolor="#CCEEFF">&nbsp;</TD>
    <TD vAlign=bottom width="19" height="19"
    style="border-left-style: none; border-left-width: medium; border-right-style: none; border-right-width: medium; border-top-style: none; border-top-width: medium; border-bottom: medium none #000000"
    bgcolor="#CCEEFF">
      &nbsp;</TD>
    <TD vAlign=bottom width="77" height="19"
    style="border-left-style: none; border-left-width: medium; border-right-style: none; border-right-width: medium; border-top-style: none; border-top-width: medium; border-bottom: medium none #000000"
    bgcolor="#CCEEFF">
      &nbsp;</TD>
    <TD vAlign=bottom width="28" height="19"
    style="border-left-style: none; border-left-width: medium; border-right-style: none; border-right-width: medium"
    bgcolor="#CCEEFF">&nbsp;</TD>
    <TD vAlign=bottom width="18" height="19"
    style="border-left-style: none; border-left-width: medium; border-right-style: none; border-right-width: medium; border-top-style: none; border-top-width: medium; border-bottom: medium none #000000"
    bgcolor="#CCEEFF">
      &nbsp;</TD>
    <TD vAlign=bottom width="71" height="19"
    style="border-left-style: none; border-left-width: medium; border-right-style: none; border-right-width: medium; border-top-style: none; border-top-width: medium; border-bottom: medium none #000000"
    bgcolor="#CCEEFF">
      &nbsp;</TD>
    <TD vAlign=bottom width="8" height="19" align="left"
    style="border-left-style: none; border-left-width: medium"
    bgcolor="#CCEEFF">
      &nbsp;</TD>
    </TR>
  <TR>
    <TD width="650">
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em">
      <FONT face="Times New Roman" size="2">Diluted net income per share</FONT></P></TD>
    <TD vAlign=bottom width="16"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="19"
    style="border-bottom: 3px double #000000"><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="77"
    style="border-bottom: 3px double #000000">
    <FONT size="2">.41</FONT></TD>
    <TD vAlign=bottom width="28"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="18" style="border-bottom: 3px double #000000"><FONT face="Times New Roman"
    size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="71"
    style="border-bottom: 3px double #000000">
    <FONT face="Times New Roman" size="2">.06</FONT></TD>
    <TD vAlign=bottom align=left width="8">
    </TD>
    </TR>
  </TABLE>
</DIV>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=left>&nbsp;</P>
<font size="2">

</font>

<P style="PAGE-BREAK-BEFORE: always">
<HR align=center width="100%" color=#999999 SIZE=3>


<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2><B>AMERON INTERNATIONAL CORPORATION
AND SUBSIDIARIES</B></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px"><FONT size=1></FONT>&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2><B>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)</B></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2><B>(Unaudited)</B></FONT></P>

<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">
<FONT face="Times New Roman"
size=2><B>Note 7.&nbsp; Comprehensive Income</B></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font size="2">Comprehensive
income was as follows:</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>

<DIV align="center">
<TABLE style="BORDER-COLLAPSE: collapse" cellPadding=0
width="90%" border=0>

  <TR bgColor=#cceeff>
    <TD vAlign=top width="668" bgcolor="#FFFFFF">&nbsp;</TD>
    <TD vAlign=bottom width="15" bgcolor="#FFFFFF">&nbsp;</TD>
    <TD vAlign=bottom width="196" bgcolor="#FFFFFF" colspan="5" align="center">
    <FONT size="1"><B>Three Months Ended</B></FONT><HR color="#000000" noshade
    size="1"></TD>
    <TD vAlign=bottom align=left width="8" bgcolor="#FFFFFF">&nbsp;</TD>
    </TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top width="668" bgcolor="#FFFFFF">&nbsp;</TD>
    <TD vAlign=bottom width="15" bgcolor="#FFFFFF">&nbsp;</TD>
    <TD vAlign=bottom width="91" bgcolor="#FFFFFF" colspan="2" align="center">
    <P align="center"><FONT size="1"><B>March 5,<BR>2006</B></FONT><BR>
    <HR color="#000000" noshade size="1"></TD>
    <TD vAlign=bottom width="22" bgcolor="#FFFFFF">&nbsp;</TD>
    <TD vAlign=bottom width="83" bgcolor="#FFFFFF" colspan="2" align="center">
    <P align="center"><FONT size="1"><B>February 27,<BR>2005</B></FONT><BR>
    <HR color="#000000" noshade size="1"></TD>
    <TD vAlign=bottom align=left width="8" bgcolor="#FFFFFF">&nbsp;</TD>
    </TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top width="668">
    <FONT face="Times New Roman" size="2">Net Income</FONT></TD>
    <TD vAlign=bottom width="15">&nbsp;</TD>
    <TD vAlign=bottom width="23"><FONT size="2">$</FONT></TD>
    <TD vAlign=bottom align=right width="68"><FONT size="2">3,611</FONT></TD>
    <TD vAlign=bottom width="22">&nbsp;</TD>
    <TD vAlign=bottom width="19"><FONT size="2">$</FONT></TD>
    <TD vAlign=bottom align=right width="64"><FONT size="2">481</FONT></TD>
    <TD vAlign=bottom align=left width="8">&nbsp;</TD>
    </TR>
  <tr>
    <TD vAlign=top width="668">
     <FONT face="Times New Roman" size="2">Foreign Currency Translation
      Adjustment</FONT></TD>
    <TD vAlign=bottom width="15"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="23">&nbsp;</TD>
    <TD vAlign=bottom align=right width="68"><FONT size="2">557</FONT></TD>
    <TD vAlign=bottom width="22"><FONT size=2>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="19">&nbsp;</TD>
    <TD vAlign=bottom align=right width="64"><FONT face="Times New Roman" size="2">424</FONT></TD>
    <TD vAlign=bottom align=left width="8">&nbsp;</TD>
  </tr>
  <TR bgColor=#cceeff>
    <TD vAlign=top width="668">
      <FONT face="Times New Roman" size="2">Comprehensive Loss from
      Joint Venture</FONT></TD>
    <TD vAlign=bottom width="15">&nbsp;</TD>
    <TD vAlign=bottom width="23" style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD vAlign=bottom align=right width="68"
    style="border-bottom: 1px solid #000000"><FONT size="2">-</FONT></TD>
    <TD vAlign=bottom width="22">&nbsp;</TD>
    <TD vAlign=bottom width="19" style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD vAlign=bottom align=right width="64"
    style="border-bottom: 1px solid #000000"><FONT size="2">(23</FONT></TD>
    <TD vAlign=bottom align=left width="8"><FONT size="2">)</FONT></TD>
    </TR>
  <tr>
    <TD vAlign=top width="668" bgcolor="#FFFFFF">&nbsp;</TD>
    <TD vAlign=bottom width="15" bgcolor="#FFFFFF">&nbsp;</TD>
    <TD vAlign=bottom width="23" bgcolor="#FFFFFF">&nbsp;</TD>
    <TD vAlign=bottom align=right width="68" bgcolor="#FFFFFF">&nbsp;</TD>
    <TD vAlign=bottom width="22" bgcolor="#FFFFFF">&nbsp;</TD>
    <TD vAlign=bottom width="19" bgcolor="#FFFFFF">&nbsp;</TD>
    <TD vAlign=bottom align=right width="64" bgcolor="#FFFFFF">&nbsp;</TD>
    <TD vAlign=bottom align=left width="8" bgcolor="#FFFFFF">&nbsp;</TD>
  </tr>
  <tr>
    <TD vAlign=top width="668" bgcolor="#CCEEFF">
     <FONT face="Times New Roman" size="2">Comprehensive Income</FONT></TD>
    <TD vAlign=bottom width="15" bgcolor="#CCEEFF">&nbsp;</TD>
    <TD vAlign=bottom width="23" bgcolor="#CCEEFF"
    style="border-bottom: 3px double #000000"><FONT size="2">$</FONT></TD>
    <TD vAlign=bottom align=right width="68" bgcolor="#CCEEFF"
    style="border-bottom: 3px double #000000"><FONT size="2">4,168</FONT></TD>
    <TD vAlign=bottom width="22" bgcolor="#CCEEFF">&nbsp;</TD>
    <TD vAlign=bottom width="19" bgcolor="#CCEEFF"
    style="border-bottom: 3px double #000000"><FONT size="2">$</FONT></TD>
    <TD vAlign=bottom align=right width="64" bgcolor="#CCEEFF"
    style="border-bottom: 3px double #000000"><FONT size="2">882</FONT></TD>
    <TD vAlign=bottom align=left width="8" bgcolor="#CCEEFF">&nbsp;</TD>
  </tr>
  </TABLE>
</DIV>

<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>
<B>Note 8.&nbsp; Debt</B></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 0%"><FONT
face="Times New Roman" size=2>The Company's long-term debt consisted of the
following:</FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="90%"
align=center border=0>

  <TR>
    <TD width="80%"></TD>
    <TD vAlign=bottom width="5%"></TD>
    <TD></TD>
    <TD></TD>
    <TD vAlign=bottom width="5%"></TD>
    <TD></TD>
    <TD></TD></TR>
  </TABLE>
<DIV align="center">
<TABLE style="BORDER-COLLAPSE: collapse" cellPadding=0 width="90%" border=0>

  <TR>
    <TD vAlign=top width="667">
      &nbsp;</TD>
    <TD vAlign=bottom width="18">&nbsp;</TD>
    <TD vAlign=bottom width="88" colspan="2">
    <P align="center"><FONT size="1"><B>March 5,<BR>2006</B></FONT><BR>
    <HR color="#000000" noshade size="1"></TD>
    <TD vAlign=bottom width="18">&nbsp;</TD>
    <TD vAlign=bottom width="87" colspan="2">
    <P align="center"><FONT size="1"><B>November 30,<BR>2005</B></FONT><BR>
    <HR color="#000000" noshade size="1"></TD>
    <TD vAlign=bottom align=left width="9">
    &nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width="667">
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em">
      <font face="Times New Roman" size="2">Fixed-rate notes:</font></P></TD>
    <TD vAlign=bottom width="18"><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="20"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right width="68">
    &nbsp;</TD>
    <TD vAlign=bottom width="18"><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="22"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right width="65">
    &nbsp;</TD>
    <TD vAlign=bottom align=left width="9">
    &nbsp;</TD>
  </TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top width="667">
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em">
      <font face="Times New Roman" size="2">7.92% senior notes, payable in annual principal installments of $8,333,
      maturing in September 2006</font></P></TD>
    <TD vAlign=bottom width="18"><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="20"><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="68">
    <FONT size="2">8,333</FONT></TD>
    <TD vAlign=bottom width="18"><FONT size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="22"><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="65">
    <FONT face="Times New Roman" size="2">8,333</FONT></TD>
    <TD vAlign=bottom align=left width="9">
    &nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="667">
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em">
      <font face="Times New Roman" size="2">5.36% senior notes, payable in annual principal installments of $10,000,
      maturing in November 2009</font></P></TD>
    <TD vAlign=bottom width="18"><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="20"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right width="68">
    <FONT size="2">40,000</FONT></TD>
    <TD vAlign=bottom width="18"><FONT size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="22"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right width="65">
    <FONT face="Times New Roman" size="2">40,000</FONT></TD>
    <TD vAlign=bottom align=left width="9">
    &nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="667" bgcolor="#CCEEFF">
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em">
      <FONT face="Times New Roman" size="2">4.25% senior notes, payable in Singapore Dollars,
      in annual principal installments of $6,293, commencing in 2008, maturing
      in November 2012</FONT></P></TD>
    <TD vAlign=bottom width="18" bgcolor="#CCEEFF"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="20" bgcolor="#CCEEFF"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right width="68" bgcolor="#CCEEFF">
    <FONT size="2">31,467</FONT></TD>
    <TD vAlign=bottom width="18" bgcolor="#CCEEFF"><FONT size=2>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="22" bgcolor="#CCEEFF"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right width="65" bgcolor="#CCEEFF">
    <FONT face="Times New Roman" size="2">30,158</FONT></TD>
    <TD vAlign=bottom align=left width="9" bgcolor="#CCEEFF">
    &nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width="667">
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em">
      <font face="Times New Roman" size="2">Variable-rate industrial development
      bonds:</font></P></TD>
    <TD vAlign=bottom width="18"><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="20"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right width="68">
    &nbsp;</TD>
    <TD vAlign=bottom width="18"><FONT size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="22"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right width="65">
    &nbsp;</TD>
    <TD vAlign=bottom align=left width="9">
    &nbsp;</TD>
  </TR>
  <tr>
    <TD vAlign=top width="667" bgcolor="#CCEEFF">
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em">
      <font face="Times New Roman" size="2">Maturing in 2016 (3.40% at March 5,
		2006)</font></P></TD>
    <TD vAlign=bottom width="18" bgcolor="#CCEEFF"><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="20" bgcolor="#CCEEFF"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right width="68" bgcolor="#CCEEFF">
    <FONT size="2">7,200</FONT></TD>
    <TD vAlign=bottom width="18" bgcolor="#CCEEFF"><FONT size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="22" bgcolor="#CCEEFF"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right width="65" bgcolor="#CCEEFF">
    <font face="Times New Roman" size="2">7,200</font></TD>
    <TD vAlign=bottom align=left width="9" bgcolor="#CCEEFF">
    &nbsp;</TD>
  </tr>
  <tr>
    <TD vAlign=top width="667">
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em">
      <font face="Times New Roman" size="2">Maturing in 2021 (3.40% at March 5,
		2006)</font></P></TD>
    <TD vAlign=bottom width="18"><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="20"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right width="68">
    <FONT size="2">8,500</FONT></TD>
    <TD vAlign=bottom width="18"><FONT size=2>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="22"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right width="65">
    <font face="Times New Roman" size="2">8,500</font></TD>
    <TD vAlign=bottom align=left width="9">
    &nbsp;</TD>
  </tr>
  <TR>
    <TD vAlign=top width="667" bgcolor="#CCEEFF">
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em">
      <font face="Times New Roman" size="2">Variable-rate bank revolving credit
      facilities:</font></P></TD>
    <TD vAlign=bottom width="18" bgcolor="#CCEEFF"><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="20" bgcolor="#CCEEFF"><FONT face="Times New Roman" size=2>
    &nbsp;</FONT></TD>
    <TD vAlign=bottom align=right width="68" bgcolor="#CCEEFF">
    &nbsp;</TD>
    <TD vAlign=bottom width="18" bgcolor="#CCEEFF"><FONT size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="22" bgcolor="#CCEEFF"><FONT face="Times New Roman" size=2>
    &nbsp;</FONT></TD>
    <TD vAlign=bottom align=right width="65" bgcolor="#CCEEFF">
    &nbsp;</TD>
    <TD vAlign=bottom align=left width="9" bgcolor="#CCEEFF">
    &nbsp;</TD>
  </TR>
  <tr>
    <TD vAlign=top width="667">
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em">
      <font face="Times New Roman" size="2">Foreign, maturing in September 2010 (4.25% at March 5, 2006)</font></P></TD>
    <TD vAlign=bottom width="18"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="20" style="border-bottom: 1px solid #000000"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right width="68"
    style="border-bottom: 1px solid #000000">
    <FONT size="2">5,142</FONT></TD>
    <TD vAlign=bottom width="18"><FONT size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="22" style="border-bottom: 1px solid #000000"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right width="65"
    style="border-bottom: 1px solid #000000">
    <FONT face="Times New Roman" size="2">1,251</FONT></TD>
    <TD vAlign=bottom align=left width="9">
    &nbsp;</TD>
  </tr>
  <TR>
    <TD vAlign=bottom width="667" bgcolor="#CCEEFF"><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="18" bgcolor="#CCEEFF"><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="20" bgcolor="#CCEEFF">
      &nbsp;</TD>
    <TD vAlign=bottom width="68" bgcolor="#CCEEFF">
      &nbsp;</TD>
    <TD vAlign=bottom width="18" bgcolor="#CCEEFF"><FONT size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="22" bgcolor="#CCEEFF">
      &nbsp;</TD>
    <TD vAlign=bottom width="65" bgcolor="#CCEEFF">
      &nbsp;</TD>
    <TD vAlign=bottom width="9" bgcolor="#CCEEFF" align="left">
      &nbsp;</TD></TR>
  <tr>
    <TD vAlign=top width="667">
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em">
      <font face="Times New Roman" size="2">Total long-term debt</font></P></TD>
    <TD vAlign=bottom width="18"><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="20"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right width="68">
    <FONT size="2">100,642</FONT></TD>
    <TD vAlign=bottom width="18"><FONT size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="22"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right width="65">
    <FONT face="Times New Roman" size="2">95,442</FONT></TD>
    <TD vAlign=bottom align=left width="9">
    &nbsp;</TD>
  </tr>
  <tr>
    <TD vAlign=top width="667" bgcolor="#CCEEFF">
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em">
      <font face="Times New Roman" size="2">Less current portion</font></P></TD>
    <TD vAlign=bottom width="18" bgcolor="#CCEEFF"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="20" bgcolor="#CCEEFF"
    style="border-bottom: 1px solid #000000"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right width="68" bgcolor="#CCEEFF"
    style="border-bottom: 1px solid #000000">
    <FONT size="2">(18,333</FONT></TD>
    <TD vAlign=bottom width="18" bgcolor="#CCEEFF"><FONT size=2>)&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="22" bgcolor="#CCEEFF"
    style="border-bottom: 1px solid #000000"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right width="65" bgcolor="#CCEEFF"
    style="border-bottom: 1px solid #000000">
    <FONT face="Times New Roman" size="2">(18,333</FONT></TD>
    <TD vAlign=bottom align=left width="9" bgcolor="#CCEEFF">
    <FONT size="2">)</FONT></TD>
  </tr>
  <tr>
    <TD vAlign=bottom width="667"><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="18"><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="20">
      &nbsp;</TD>
    <TD vAlign=bottom width="68">
      &nbsp;</TD>
    <TD vAlign=bottom width="18"><FONT size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="22">
      &nbsp;</TD>
    <TD vAlign=bottom width="65">
      &nbsp;</TD>
    <TD vAlign=bottom width="9" align="left"
    style="border-bottom-style: none; border-bottom-width: medium">
      &nbsp;</TD>
  </tr>
  <TR bgColor=#cceeff>
    <TD vAlign=top width="667">
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em">
      <font face="Times New Roman" size="2">Long-term debt, less current portion</font></P></TD>
    <TD vAlign=bottom width="18"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="20" style="border-bottom: 3px double #000000"><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="68"
    style="border-bottom: 3px double #000000">
    <FONT size="2">82,309</FONT></TD>
    <TD vAlign=bottom width="18"><FONT size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom width="22" style="border-bottom: 3px double #000000"><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="65"

    style="border-right-style: none; border-right-width: medium; border-bottom: 3px double #000000">
    <FONT face="Times New Roman" size="2">77,109</FONT></TD>
    <TD vAlign=bottom align=left width="9"

    style="border-left-style: none; border-left-width: medium; border-right-style: none; border-right-width: medium; border-top-style: none; border-top-width: medium; border-bottom: medium none #000000">
    &nbsp;</TD></TR>
  </TABLE>
</DIV>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font size="2">The Company maintains a
$100,000 revolving credit facility with six banks (the &quot;Revolver&quot;).&nbsp; Under the Revolver, the Company may, at its option,
borrow at floating interest rates (LIBOR plus a spread ranging from .75% to
1.625% determined by the Company's financial condition and performance), at any time until September 2010, when all borrowings under the Revolver
must be repaid.&nbsp; The lending agreements contain various
restrictive covenants, including the requirement to maintain specified amounts
of net worth and restrictions on cash dividends, borrowings, liens, investments, guarantees,
and financial covenants.&nbsp; The Company was in compliance with all covenants as of March
5, 2006.&nbsp; The Revolver, the&nbsp;4.25% term notes, 5.36% term notes and the 7.92% term
notes are collateralized by substantially all of the Company's assets.&nbsp; The
industrial revenue bonds are supported by standby letters of credit&nbsp; that are
issued under the Revolver.&nbsp; The interest rate on the industrial development
bonds is based on a weekly index of tax exempt issues plus a spread of .20%.&nbsp; Certain note agreements contain provisions
regarding the Company's&nbsp;ability to grant security interests or liens in
association with other debt instruments.&nbsp; If the Company grants such a
security interest or lien, then such notes will be collateralized equally and
ratably as long as such other debt shall be collateralized.</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT size="2">Borrowings under
certain bank facilities by the Company and its foreign subsidiaries are
supported by the Revolver and, accordingly, have been classified as long-term
debt and are considered payable when the Revolver is due.</FONT></P>

<P style="PAGE-BREAK-BEFORE: always">
<HR align=center width="100%" color=#999999 SIZE=3>


<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2><B>AMERON INTERNATIONAL CORPORATION
AND SUBSIDIARIES</B></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px"><FONT size=1></FONT>&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2><B>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)</B></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2><B>(Unaudited)</B></FONT></P>

<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2><B>Note 9.&nbsp; Segment Information</B></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font size="2">The Company provides certain information
  about operating segments in accordance with SFAS No. 131,
  &quot;Disclosure about Segments of an Enterprise and Related
  Information.&quot; In accordance with SFAS No. 131, the Company has
  determined that it has four operating segments: Performance
  Coatings&nbsp;&amp; Finishes, Fiberglass-Composite Pipe, Water
  Transmission, and Infrastructure Products. Each of these segments
  has a dedicated management team and is managed separately, primarily because
  of differences in products. The Company's Chief Operating Decision Maker
(&quot;CODM&quot;) is the Chief Executive Officer who primarily reviews the sales
and income before interest,
income taxes and equity in earnings of joint venture for each operating segment
in making decisions about allocating resources and assessing performance.&nbsp; The
Company allocates certain selling, general and administrative expenses to
operating segments utilizing assumptions believed to be appropriate in the
circumstances.&nbsp; Costs of shared services (e.g., costs of Company-wide
insurance programs or benefit plans) are allocated to the reportable segments based on revenue, wages,
or net assets employed.&nbsp; Other items not related to current operations or
of an unusual nature, such as adjustments to reflect inventory balances of
certain steel inventories under the last-in, first-out (&quot;LIFO&quot;) method, certain
unusual legal costs and expenses, interest expense and income taxes, are not
allocated to the reportable segments.</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font size="2">Following is information related to each operating segment included in, and in a manner consistent
  with, internal management reports:</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<DIV align="center">
<TABLE style="BORDER-COLLAPSE: collapse" cellPadding=0
width="90%" border=0>

  <TR bgColor=#cceeff>
    <TD vAlign=top width="648" bgcolor="#FFFFFF">
      &nbsp;</TD>
    <TD vAlign=bottom

width="19" bgcolor="#FFFFFF">&nbsp;</TD>
    <TD vAlign=bottom width="211" bgcolor="#FFFFFF" colspan="5" align="center">
    <FONT size="1"><B>Three Months Ended</B></FONT><HR color="#000000" noshade
    size="1"></TD>
    <TD vAlign=bottom align=left width="9" bgcolor="#FFFFFF">&nbsp;</TD>
    </TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top width="648" bgcolor="#FFFFFF">
      &nbsp;</TD>
    <TD vAlign=bottom width="19" bgcolor="#FFFFFF">&nbsp;</TD>
    <TD vAlign=bottom width="94" bgcolor="#FFFFFF" colspan="2">
    <P align="center"><FONT size="1"><B>March 5,<BR>2006</B></FONT><BR>
    <HR color="#000000" noshade size="1"></TD>
    <TD vAlign=bottom width="25" bgcolor="#FFFFFF">&nbsp;</TD>
    <TD vAlign=bottom width="92" bgcolor="#FFFFFF" colspan="2">
    <P align="center"><FONT size="1"><B>February 27,<BR>2005</B></FONT><BR>
    <HR color="#000000" noshade size="1"></TD>
    <TD vAlign=bottom align=left width="9" bgcolor="#FFFFFF">&nbsp;</TD>
    </TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top width="648">
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em">
      <B>
      <font face="Times New Roman" size="2">Sales</font></B></P></TD>
    <TD vAlign=bottom width="19">&nbsp;</TD>
    <TD vAlign=bottom width="19">&nbsp;</TD>
    <TD vAlign=bottom align=right width="75">&nbsp;</TD>
    <TD vAlign=bottom width="25">&nbsp;</TD>
    <TD vAlign=bottom width="17">&nbsp;</TD>
    <TD vAlign=bottom align=right width="75">&nbsp;</TD>
    <TD vAlign=bottom align=left width="9">&nbsp;</TD>
    </TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top width="648" bgcolor="#FFFFFF">
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em">
      <font face="Times New Roman" size="2">Performance Coatings &amp; Finishes</font></P></TD>
    <TD vAlign=bottom width="19" bgcolor="#FFFFFF">&nbsp;</TD>
    <TD vAlign=bottom width="19" bgcolor="#FFFFFF"><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="75" bgcolor="#FFFFFF">
    <FONT size="2">49,320</FONT></TD>
    <TD vAlign=bottom width="25" bgcolor="#FFFFFF">&nbsp;</TD>
    <TD vAlign=bottom width="17" bgcolor="#FFFFFF"><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="75" bgcolor="#FFFFFF">
    <FONT face="Times New Roman" size="2">41,945</FONT></TD>
    <TD vAlign=bottom align=left width="9" bgcolor="#FFFFFF">
    &nbsp;</TD>
    </TR>
  <tr>
    <TD vAlign=top width="648" bgcolor="#CCEEFF">
      <font face="Times New Roman" size="2">Fiberglass-Composite Pipe</font></TD>
    <TD vAlign=bottom width="19" bgcolor="#CCEEFF">&nbsp;</TD>
    <TD vAlign=bottom width="19" bgcolor="#CCEEFF">&nbsp;</TD>
    <TD vAlign=bottom align=right width="75" bgcolor="#CCEEFF">
    <FONT size="2">36,592</FONT></TD>
    <TD vAlign=bottom width="25" bgcolor="#CCEEFF">&nbsp;</TD>
    <TD vAlign=bottom width="17" bgcolor="#CCEEFF">&nbsp;</TD>
    <TD vAlign=bottom align=right width="75" bgcolor="#CCEEFF">
    <FONT face="Times New Roman" size="2">26,432</FONT></TD>
    <TD vAlign=bottom align=left width="9" bgcolor="#CCEEFF">
    &nbsp;</TD>
  </tr>
  <TR bgColor=#cceeff>
    <TD vAlign=top width="648" bgcolor="#FFFFFF">
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em">
      <font face="Times New Roman" size="2">Water Transmission</font></P></TD>
    <TD vAlign=bottom width="19" bgcolor="#FFFFFF">&nbsp;</TD>
    <TD vAlign=bottom width="19" bgcolor="#FFFFFF">&nbsp;</TD>
    <TD vAlign=bottom align=right width="75" bgcolor="#FFFFFF">
    <FONT size="2">43,181</FONT></TD>
    <TD vAlign=bottom width="25" bgcolor="#FFFFFF">&nbsp;</TD>
    <TD vAlign=bottom width="17" bgcolor="#FFFFFF">&nbsp;</TD>
    <TD vAlign=bottom align=right width="75" bgcolor="#FFFFFF">
    <FONT face="Times New Roman" size="2">34,978</FONT></TD>
    <TD vAlign=bottom align=left width="9" bgcolor="#FFFFFF">
    &nbsp;</TD>
    </TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top width="648">
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em">
      <font face="Times New Roman" size="2">Infrastructure Products</font></P></TD>
    <TD vAlign=bottom width="19"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="19">&nbsp;</TD>
    <TD vAlign=bottom align=right width="75">
    <FONT size="2">46,390</FONT></TD>
    <TD vAlign=bottom width="25">&nbsp;</TD>
    <TD vAlign=bottom width="17">&nbsp;</TD>
    <TD vAlign=bottom align=right width="75">
    <FONT face="Times New Roman" size="2">35,535</FONT></TD>
    <TD vAlign=bottom align=left width="9">
    &nbsp;</TD>
    </TR>
  <tr>
    <TD vAlign=top width="648">
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em">
      <font face="Times New Roman" size="2">Eliminations</font></P></TD>
    <TD vAlign=bottom width="19">&nbsp;</TD>
    <TD vAlign=bottom width="19" style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD vAlign=bottom align=right width="75"
    style="border-bottom: 1px solid #000000">
    <FONT size="2">(191</FONT></TD>
    <TD vAlign=bottom width="25"><FONT size=2>) </FONT></TD>
    <TD vAlign=bottom width="17" style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD vAlign=bottom align=right width="75"
    style="border-bottom: 1px solid #000000">
    <FONT face="Times New Roman" size="2">(78</FONT></TD>
    <TD vAlign=bottom align=left width="9">
    <FONT size="2">)</FONT></TD>
  </tr>
  <tr>
    <TD vAlign=top bgcolor="#CCEEFF">
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em">&nbsp;</P></TD>
    <TD vAlign=bottom bgcolor="#CCEEFF"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom bgcolor="#CCEEFF"
    style="border-top-style: solid; border-top-width: 1px">
      &nbsp;</TD>
    <TD vAlign=bottom bgcolor="#CCEEFF"
    style="border-top-style: solid; border-top-width: 1px">
      &nbsp;</TD>
    <TD vAlign=bottom bgcolor="#CCEEFF">&nbsp;</TD>
    <TD vAlign=bottom bgcolor="#CCEEFF">
      &nbsp;</TD>
    <TD vAlign=bottom bgcolor="#CCEEFF">
      &nbsp;</TD>
    <TD vAlign=bottom bgcolor="#CCEEFF" align="left">
      &nbsp;</TD>
    </tr>
  <tr>
    <TD vAlign=top width="648">
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em">
      <font face="Times New Roman" size="2">Total Sales</font></P></TD>
    <TD vAlign=bottom width="19"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="19" style="border-bottom: 3px double #000000"><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="75"
    style="border-bottom: 3px double #000000">
    <FONT size="2">175,292</FONT></TD>
    <TD vAlign=bottom width="25">&nbsp;</TD>
    <TD vAlign=bottom width="17" style="border-bottom: 3px double #000000"><FONT face="Times New Roman"
    size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="75"
    style="border-bottom: 3px double #000000">
    <FONT face="Times New Roman" size="2">138,812</FONT></TD>
    <TD vAlign=bottom align=left width="9">
    &nbsp;</TD>
  </tr>
  <tr>
    <TD vAlign=bottom bgcolor="#CCEEFF"><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom bgcolor="#CCEEFF"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom bgcolor="#CCEEFF">
      &nbsp;</TD>
    <TD vAlign=bottom bgcolor="#CCEEFF">
      &nbsp;</TD>
    <TD vAlign=bottom bgcolor="#CCEEFF">&nbsp;</TD>
    <TD vAlign=bottom bgcolor="#CCEEFF">
      &nbsp;</TD>
    <TD vAlign=bottom bgcolor="#CCEEFF">
      &nbsp;</TD>
    <TD vAlign=bottom bgcolor="#CCEEFF" align="left">
      &nbsp;</TD>
  </tr>
  <tr>
    <TD vAlign=top width="648">
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em">
      <B>
      <font face="Times New Roman" size="2">Income (Loss) Before Interest, Income Taxes
      and Equity in Earnings of Joint Venture</font></B></P></TD>
    <TD vAlign=bottom width="19">&nbsp;</TD>
    <TD vAlign=bottom width="19">&nbsp;</TD>
    <TD vAlign=bottom align=right width="75">&nbsp;</TD>
    <TD vAlign=bottom width="25">&nbsp;</TD>
    <TD vAlign=bottom width="17">&nbsp;</TD>
    <TD vAlign=bottom align=right width="75">&nbsp;</TD>
    <TD vAlign=bottom align=left width="9">&nbsp;</TD>
  </tr>
  <tr>
    <TD vAlign=top width="648" bgcolor="#CCEEFF">
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em">
      <font face="Times New Roman" size="2">Performance Coatings &amp; Finishes</font></P></TD>
    <TD vAlign=bottom width="19" bgcolor="#CCEEFF"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="19" bgcolor="#CCEEFF"><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="75" bgcolor="#CCEEFF">
    <FONT size="2">(316</FONT></TD>
    <TD vAlign=bottom width="25" bgcolor="#CCEEFF"><FONT size="2">)</FONT></TD>
    <TD vAlign=bottom width="17" bgcolor="#CCEEFF"><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="75" bgcolor="#CCEEFF">
    <FONT face="Times New Roman" size="2">(2,518</FONT></TD>
    <TD vAlign=bottom align=left width="9" bgcolor="#CCEEFF">
    <FONT size="2">)</FONT></TD>
  </tr>
  <tr>
    <TD vAlign=top width="648">
      <font face="Times New Roman" size="2">Fiberglass-Composite Pipe</font></TD>
    <TD vAlign=bottom width="19"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="19">&nbsp;</TD>
    <TD vAlign=bottom align=right width="75">
    <FONT size="2">5,799</FONT></TD>
    <TD vAlign=bottom width="25"><FONT size=2>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="17">&nbsp;</TD>
    <TD vAlign=bottom align=right width="75">
    <FONT face="Times New Roman" size="2">3,996</FONT></TD>
    <TD vAlign=bottom align=left width="9">
    &nbsp;</TD>
  </tr>
  <tr>
    <TD vAlign=top width="648" bgcolor="#CCEEFF">
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em">
      <font face="Times New Roman" size="2">Water Transmission</font></P></TD>
    <TD vAlign=bottom width="19" bgcolor="#CCEEFF">&nbsp;</TD>
    <TD vAlign=bottom width="19" bgcolor="#CCEEFF">&nbsp;</TD>
    <TD vAlign=bottom align=right width="75" bgcolor="#CCEEFF">
    <FONT size="2">1,898</FONT></TD>
    <TD vAlign=bottom width="25" bgcolor="#CCEEFF">&nbsp;</TD>
    <TD vAlign=bottom width="17" bgcolor="#CCEEFF">&nbsp;</TD>
    <TD vAlign=bottom align=right width="75" bgcolor="#CCEEFF">
    <FONT face="Times New Roman" size="2">2,690</FONT></TD>
    <TD vAlign=bottom align=left width="9" bgcolor="#CCEEFF">
    &nbsp;</TD>
  </tr>
  <tr>
    <TD vAlign=top width="648">
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em">
      <font face="Times New Roman" size="2">Infrastructure Products</font></P></TD>
    <TD vAlign=bottom width="19"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="19">&nbsp;</TD>
    <TD vAlign=bottom align=right width="75">
    <FONT size="2">6,863</FONT></TD>
    <TD vAlign=bottom width="25">&nbsp;</TD>
    <TD vAlign=bottom width="17">&nbsp;</TD>
    <TD vAlign=bottom align=right width="75">
    <FONT face="Times New Roman" size="2">3,419</FONT></TD>
    <TD vAlign=bottom align=left width="9">
    &nbsp;</TD>
  </tr>
  <tr>
    <TD vAlign=top width="648" bgcolor="#CCEEFF">
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em">
      <font face="Times New Roman" size="2">Corporate &amp; Unallocated</font></P></TD>
    <TD vAlign=bottom width="19" bgcolor="#CCEEFF">&nbsp;</TD>
    <TD vAlign=bottom width="19" bgcolor="#CCEEFF"
    style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD vAlign=bottom align=right width="75" bgcolor="#CCEEFF"
    style="border-bottom: 1px solid #000000">
    <FONT size="2">(8,827</FONT></TD>
    <TD vAlign=bottom width="25" bgcolor="#CCEEFF"><FONT size="2">)</FONT></TD>
    <TD vAlign=bottom width="17" bgcolor="#CCEEFF"
    style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD vAlign=bottom align=right width="75" bgcolor="#CCEEFF"
    style="border-bottom: 1px solid #000000">
    <FONT face="Times New Roman" size="2">(6,383</FONT></TD>
    <TD vAlign=bottom align=left width="9" bgcolor="#CCEEFF">
    <FONT size="2">)</FONT></TD>
  </tr>
  <tr>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em">&nbsp;</P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      &nbsp;</TD>
    <TD vAlign=bottom>
      &nbsp;</TD>
    <TD vAlign=bottom>&nbsp;</TD>
    <TD vAlign=bottom>
      &nbsp;</TD>
    <TD vAlign=bottom>
      &nbsp;</TD>
    <TD vAlign=bottom align="left">
      &nbsp;</TD>
    </tr>
  <tr>
    <TD vAlign=top width="648" bgcolor="#CCEEFF">
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em">
      <font face="Times New Roman" size="2">Total Income Before Interest,
      Income Taxes and Equity in Earnings of Joint Venture</font></P></TD>
    <TD vAlign=bottom width="19" bgcolor="#CCEEFF"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="19" bgcolor="#CCEEFF"
    style="border-bottom: 3px double #000000"><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="75" bgcolor="#CCEEFF"
    style="border-bottom: 3px double #000000">
    <FONT size="2">5,417</FONT></TD>
    <TD vAlign=bottom width="25" bgcolor="#CCEEFF"><FONT size=2>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="17" bgcolor="#CCEEFF"
    style="border-bottom: 3px double #000000"><FONT face="Times New Roman"
    size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="75" bgcolor="#CCEEFF"
    style="border-bottom: 3px double #000000">
    <FONT face="Times New Roman" size="2">1,204</FONT></TD>
    <TD vAlign=bottom align=left width="9" bgcolor="#CCEEFF">
    &nbsp;</TD>
  </tr>
  </TABLE>
</DIV>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<DIV align="center">
<TABLE style="BORDER-COLLAPSE: collapse" cellPadding=0
width="90%" border=0>

  <TR bgColor=#cceeff>
    <TD vAlign=top width="648" height="19" bgcolor="#FFFFFF">
      &nbsp;</TD>
    <TD vAlign=bottom width="19" height="19" bgcolor="#FFFFFF">&nbsp;</TD>
    <TD vAlign=bottom width="94" height="19" bgcolor="#FFFFFF" colspan="2">
    <P align="center"><FONT size="1"><B>March 5,<BR>2006</B></FONT><BR>
    <HR color="#000000" noshade size="1"></TD>
    <TD vAlign=bottom width="28" height="19" bgcolor="#FFFFFF">&nbsp;</TD>
    <TD vAlign=bottom width="88" height="19" bgcolor="#FFFFFF" colspan="2">
    <P align="center"><FONT size="1"><B>November 30,<BR>2005</B></FONT><BR>
    <HR color="#000000" noshade size="1"></TD>
    <TD vAlign=bottom align=left width="10" height="19" bgcolor="#FFFFFF">&nbsp;</TD>
    </TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top width="648">
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em">
      <B>
      <FONT face="Times New Roman" size="2">Assets</FONT></B></P></TD>
    <TD vAlign=bottom width="19">&nbsp;</TD>
    <TD vAlign=bottom width="18">&nbsp;</TD>
    <TD vAlign=bottom align=right width="76">&nbsp;</TD>
    <TD vAlign=bottom width="28">&nbsp;</TD>
    <TD vAlign=bottom width="15">&nbsp;</TD>
    <TD vAlign=bottom align=right width="73">&nbsp;</TD>
    <TD vAlign=bottom align=left width="10">&nbsp;</TD>
    </TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top width="648" bgcolor="#FFFFFF">
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em">
      <font face="Times New Roman" size="2">Performance Coatings &amp; Finishes</font></P></TD>
    <TD vAlign=bottom width="19" bgcolor="#FFFFFF">&nbsp;</TD>
    <TD vAlign=bottom width="18" bgcolor="#FFFFFF"><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="76" bgcolor="#FFFFFF">
    <FONT size="2">172,969</FONT></TD>
    <TD vAlign=bottom width="28" bgcolor="#FFFFFF">&nbsp;</TD>
    <TD vAlign=bottom width="15" bgcolor="#FFFFFF"><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="73" bgcolor="#FFFFFF">
    <FONT face="Times New Roman" size="2">170,784</FONT></TD>
    <TD vAlign=bottom align=left width="10" bgcolor="#FFFFFF">
    &nbsp;</TD>
    </TR>
  <tr>
    <TD vAlign=top width="648" bgcolor="#CCEEFF">
      <font face="Times New Roman" size="2">Fiberglass-Composite Pipe</font></TD>
    <TD vAlign=bottom width="19" bgcolor="#CCEEFF"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="18" bgcolor="#CCEEFF">&nbsp;</TD>
    <TD vAlign=bottom align=right width="76" bgcolor="#CCEEFF">
    <FONT size="2">187,447</FONT></TD>
    <TD vAlign=bottom width="28" bgcolor="#CCEEFF">&nbsp;</TD>
    <TD vAlign=bottom width="15" bgcolor="#CCEEFF">&nbsp;</TD>
    <TD vAlign=bottom align=right width="73" bgcolor="#CCEEFF">
    <FONT face="Times New Roman" size="2">176,713</FONT></TD>
    <TD vAlign=bottom align=left width="10" bgcolor="#CCEEFF">
    &nbsp;</TD>
  </tr>
  <TR bgColor=#cceeff>
    <TD vAlign=top width="648" bgcolor="#FFFFFF">
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em">
      <font face="Times New Roman" size="2">Water Transmission</font></P></TD>
    <TD vAlign=bottom width="19" bgcolor="#FFFFFF">&nbsp;</TD>
    <TD vAlign=bottom width="18" bgcolor="#FFFFFF">&nbsp;</TD>
    <TD vAlign=bottom align=right width="76" bgcolor="#FFFFFF">
    <FONT size="2">132,448</FONT></TD>
    <TD vAlign=bottom width="28" bgcolor="#FFFFFF">&nbsp;</TD>
    <TD vAlign=bottom width="15" bgcolor="#FFFFFF">&nbsp;</TD>
    <TD vAlign=bottom align=right width="73" bgcolor="#FFFFFF">
    <FONT face="Times New Roman" size="2">132,803</FONT></TD>
    <TD vAlign=bottom align=left width="10" bgcolor="#FFFFFF">
    &nbsp;</TD>
    </TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top width="648">
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em">
      <font face="Times New Roman" size="2">Infrastructure Products</font></P></TD>
    <TD vAlign=bottom width="19"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="18">&nbsp;</TD>
    <TD vAlign=bottom align=right width="76">
    <FONT size="2">83,312</FONT></TD>
    <TD vAlign=bottom width="28">&nbsp;</TD>
    <TD vAlign=bottom width="15">&nbsp;</TD>
    <TD vAlign=bottom align=right width="73">
    <FONT face="Times New Roman" size="2">83,053</FONT></TD>
    <TD vAlign=bottom align=left width="10">
    &nbsp;</TD>
    </TR>
  <tr>
    <TD vAlign=top width="648">
      <FONT size="2">Corporate &amp; Unallocated</FONT></TD>
    <TD vAlign=bottom width="19">&nbsp;</TD>
    <TD vAlign=bottom width="18">&nbsp;</TD>
    <TD vAlign=bottom align=right width="76">
    <FONT size="2">175,219</FONT></TD>
    <TD vAlign=bottom width="28">&nbsp;</TD>
    <TD vAlign=bottom width="15">&nbsp;</TD>
    <TD vAlign=bottom align=right width="73">
    <FONT size="2">162,979</FONT></TD>
    <TD vAlign=bottom align=left width="10">
    &nbsp;</TD>
  </tr>
  <tr>
    <TD vAlign=top width="648" bgcolor="#CCEEFF">
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em">
      <font face="Times New Roman" size="2">Eliminations</font></P></TD>
    <TD vAlign=bottom width="19" bgcolor="#CCEEFF">&nbsp;</TD>
    <TD vAlign=bottom width="18" bgcolor="#CCEEFF"
    style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD vAlign=bottom align=right width="76" bgcolor="#CCEEFF"
    style="border-bottom: 1px solid #000000">
    <FONT size="2">(168,835</FONT></TD>
    <TD width="28" bgcolor="#CCEEFF"><FONT size="2">)</FONT></TD>
    <TD vAlign=bottom width="15" bgcolor="#CCEEFF"
    style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD vAlign=bottom align=right width="73" bgcolor="#CCEEFF"
    style="border-bottom: 1px solid #000000">
    <FONT face="Times New Roman" size="2">(148,296</FONT></TD>
    <TD align=left width="10" bgcolor="#CCEEFF">
    <FONT size="2">)</FONT></TD>
  </tr>
  <tr>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em">&nbsp;</P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      &nbsp;</TD>
    <TD vAlign=bottom>
      &nbsp;</TD>
    <TD vAlign=bottom>&nbsp;</TD>
    <TD vAlign=bottom
    style="border-top-style: solid; border-top-width: 1px">
      &nbsp;</TD>
    <TD vAlign=bottom
    style="border-top-style: solid; border-top-width: 1px">
      &nbsp;</TD>
    <TD vAlign=bottom align="left">
      &nbsp;</TD>
    </tr>
  <tr>
    <TD vAlign=top width="648" bgcolor="#CCEEFF">
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em">
      <font face="Times New Roman" size="2">Total Assets</font></P></TD>
    <TD vAlign=bottom width="19" bgcolor="#CCEEFF"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="18" bgcolor="#CCEEFF"
    style="border-bottom: 3px double #000000"><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="76" bgcolor="#CCEEFF"
    style="border-bottom: 3px double #000000">
    <FONT size="2">582,560</FONT></TD>
    <TD vAlign=bottom width="28" bgcolor="#CCEEFF">&nbsp;</TD>
    <TD vAlign=bottom width="15" bgcolor="#CCEEFF"
    style="border-bottom: 3px double #000000"><FONT face="Times New Roman"
    size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="73" bgcolor="#CCEEFF"
    style="border-bottom: 3px double #000000">
    <FONT face="Times New Roman" size="2">578,036</FONT></TD>
    <TD vAlign=bottom align=left width="10" bgcolor="#CCEEFF">
    &nbsp;</TD>
  </tr>
  </TABLE>
</DIV>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>

<P style="PAGE-BREAK-BEFORE: always">
<HR align=center width="100%" color=#999999 SIZE=3>


<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2><B>AMERON INTERNATIONAL CORPORATION
AND SUBSIDIARIES</B></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px"><FONT size=1></FONT>&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2><B>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)</B></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2><B>(Unaudited)</B></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2><B>Note 10.&nbsp; Commitments &amp; Contingencies</B></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<font size="2">

<p align=left style="line-height: 100%; margin-top:0; margin-bottom:0">The Company is one of numerous defendants in various asbestos-related personal
injury lawsuits.&nbsp; These cases generally seek unspecified damages for
asbestos-related diseases based on alleged exposure to products previously
manufactured by the Company and others, and at this time the Company is
generally not aware of the extent of injuries allegedly suffered by the
individuals or the facts supporting the claim that injuries were caused by the
Company's products.&nbsp; Based upon the information available to it at this
time, the Company is not in a position to evaluate its potential exposure, if
any, as a result of such claims or future similar claims, if any, that may be
filed.&nbsp; Hence, no amounts have been accrued for
loss contingencies related to these lawsuits in accordance with SFAS No. 5,
&quot;Accounting for Contingencies.&quot;&nbsp; The Company continues to vigorously defend
all such lawsuits.&nbsp; As of March 5, 2006, the Company was a defendant in
asbestos-related cases involving&nbsp;2,642 claimants, compared to 8,906 claimants as of November 30,
2005.&nbsp; The Company is not in a position to estimate the number of
additional claims that may be filed against it in the future.&nbsp; For the
quarter ended March 5, 2006, there were four new claimants, dismissals and/or
settlements involving&nbsp;6,268 claimants, and no
judgments.&nbsp; No net costs and expenses  were incurred by the Company during
the quarter ended March 5, 2006 in connection
with asbestos-related claims.</p>
<p align=left style="line-height: 100%; margin-top:0; margin-bottom:0">&nbsp;</p>

<p align=left style="line-height: 100%; margin-top:0; margin-bottom:0">The
Company is one of numerous defendants in various silica-related personal injury
lawsuits.&nbsp; These cases generally seek unspecified damages for
silica-related diseases based on alleged exposure to products previously
manufactured by the Company and others, and at this time the Company is not
aware of the extent of injuries allegedly suffered by the individuals or the
facts supporting the claim that injuries were&nbsp;caused by the Company's
products.&nbsp; Based upon the information available to it at this time, the
Company is not in a position to evaluate its potential exposure, if any, as a
result of such claims
or future similar claims, if any, that may be filed.&nbsp;&nbsp;Hence, no amounts have been accrued for loss
contingencies related to these lawsuits in accordance with&nbsp; SFAS No. 5.&nbsp;
The Company continues to vigorously defend all such lawsuits.&nbsp; As of March 5,
2006,&nbsp;the Company was a defendant in silica-related cases involving&nbsp;2,543
claimants, compared to 7,447 claimants as of November 30, 2005.&nbsp; The
Company is not in a position to estimate the number of additional claims that
may be filed against it in the future.&nbsp; For the quarter ended March 5, 2006, there were
two new claimants, dismissals and/or settlements involving&nbsp;4,906 claimants, and no judgments.&nbsp;
No net costs and expenses were incurred by the Company&nbsp;during the
quarter ended March 5, 2006 in connection with silica-related claims.</p>
<p align=left style="line-height: 100%; margin-top:0; margin-bottom:0">&nbsp;</p>

<p style="line-height: 100%; margin-top:0; margin-bottom:0">In April 2003, the Company was served with
a complaint in an action brought by J. Ray McDermott, Inc., J. Ray McDermott, S.A. and SparTEC, Inc. (collectively &quot;McDermott&quot;) in the District Court of
Harris County, Texas against the Company and two co-defendants, in connection
with certain coatings supplied by the defendants in 2002 for an offshore
production facility known as a SPAR being constructed by McDermott for Dominion
Exploration and Production, Inc. and Pioneer Natural Resources USA, Inc.
(collectively &quot;Dominion&quot;).&nbsp; The
Company reached a settlement with McDermott in May 2005.&nbsp; In
May 2003, Dominion brought a separate action against the Company in Civil
District Court for the Parish of Orleans, Louisiana as owners of the SPAR
seeking damages allegedly sustained by Dominion resulting from delays in
McDermott's delivery of the SPAR caused by the removal and replacement of
coatings containing lead and/or lead chromate.&nbsp; Dominion contends that the
Company made certain misrepresentations and warranties to Dominion concerning
the lead-free nature of those coatings.&nbsp; Dominion's petition as filed
alleged a claim for damages in an unspecified amount; however, Dominion's
economic expert subsequently estimated Dominion's damages at approximately
$128,000, a figure which the Company contests.&nbsp; This matter is in discovery
and no trial date has yet been established. The Company believes that it has
meritorious defenses to this action. Based upon the information available to it
at this time, the Company is not in a position to evaluate the ultimate outcome
of this matter; and no amounts have been accrued for a loss contingency related
to this lawsuit.</p>
<p style="line-height: 100%; margin-top:0; margin-bottom:0">&nbsp;</p>

<p style="line-height: 100%; margin-top:0; margin-bottom:0">In April 2004, Sable
Offshore Energy Inc. ("Sable"), as agent for certain owners of the Sable
Offshore Energy Project, brought an action against various coatings suppliers
and application contractors, including the Company and two of its subsidiaries,
Ameron (UK) Limited and Ameron B.V. (collectively "Ameron Subsidiaries") in
the Supreme Court of Nova Scotia, Canada.&nbsp; Sable seeks damages allegedly
sustained by it resulting from performance problems with several coating systems
used on the Sable Offshore Energy Project, including coatings products furnished
by the Company and the Ameron Subsidiaries.&nbsp; Sable's originating notice and
statement of claim alleged a claim for damages in an unspecified amount; however,
Sable has since alleged that its claim for damages against all defendants is
approximately 428,000 Canadian dollars, a figure which the Company and the
Ameron Subsidiaries contest.&nbsp; This matter is in discovery, and no trial date has
yet been established.&nbsp; The Company believes that it has meritorious defenses to
this action.&nbsp; Based upon the information available to it at this time, the
Company is not in a position to evaluate the ultimate outcome of this matter.</p>
<p style="line-height: 100%; margin-top:0; margin-bottom:0">&nbsp;</p>

<p style="line-height: 100%; margin-top:0; margin-bottom:0">In addition, certain other claims, suits and
complaints that arise in the ordinary course of business, have been filed or are pending against the Company.&nbsp; Management believes that these matters are either adequately reserved, covered
by insurance, or would not have a material effect on the Company's financial
position, cash flow, or its results of operations if disposed of unfavorably.</p>
<p style="line-height: 100%; margin-top:0; margin-bottom:0">&nbsp;</p>

<p style="line-height: 100%; margin-top:0; margin-bottom:0">The
Company is subject to federal, state and local laws and regulations concerning
the environment and is currently participating in administrative proceedings at
several sites under these laws.&nbsp; While the Company finds it difficult to estimate
with any certainty the total cost of remediation at the several sites, on the
basis of currently available information and reserves provided, the Company
believes that the outcome of such environmental regulatory proceedings will not
have a material effect on the Company's financial position, cash flows, or its results of
operations.</p>

<P style="PAGE-BREAK-BEFORE: always">
<HR align=center width="100%" color=#999999 SIZE=3>


<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2><B>AMERON INTERNATIONAL CORPORATION
AND SUBSIDIARIES</B></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px"><FONT size=1></FONT>&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2><B>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)</B></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2><B>(Unaudited)</B></FONT></P>

<p align=left style="line-height: 100%">
<font size="2"><b>Note 11.&nbsp;&nbsp;Product Warranties and Guarantees</b></font></p>

<p align=left style="line-height: 100%; margin-top:0; margin-bottom:0">The Company's product warranty accrual reflects management's&nbsp;estimate of probable liability
associated with product warranties.&nbsp; Management establishes product warranty
accruals based on
historical experience and other currently available information.</p>

<p align=left style="line-height: 100%">Changes in the product warranty accrual
were as follows:</p>

<DIV align="center">
<TABLE style="BORDER-COLLAPSE: collapse" cellPadding=0 width="90%" border=0>
  <TR bgColor=#cceeff>
    <TD vAlign=top width="655" height="15" bgcolor="#FFFFFF">
      &nbsp;</TD>
    <TD vAlign=bottom width="18" height="15" bgcolor="#FFFFFF">&nbsp;</TD>
    <TD vAlign=bottom width="205" height="15" bgcolor="#FFFFFF" colspan="5"
    align="center"><FONT size="1"><B>Three Months Ended</B></FONT><HR noshade
    color="#000000" size="1"></TD>
    <TD vAlign=bottom align=left width="9" height="15" bgcolor="#FFFFFF">
    &nbsp;</TD>
    </TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top width="655" height="15" bgcolor="#FFFFFF">
      &nbsp;</TD>
    <TD vAlign=bottom width="18" height="15" bgcolor="#FFFFFF">&nbsp;</TD>
    <TD vAlign=bottom width="92" height="15" bgcolor="#FFFFFF" colspan="2">
    <P align="center"><FONT size="1"><B>March 5,<BR>2006</B></FONT><BR>
    <HR noshade color="#000000" size="1"></TD>
    <TD vAlign=bottom width="26" height="15" bgcolor="#FFFFFF" align="left">&nbsp;</TD>
    <TD vAlign=bottom width="87" height="15" bgcolor="#FFFFFF" colspan="2">
    <P align="center"><FONT size="1"><B>February 27,<BR>2005</B></FONT><BR>
    <HR noshade color="#000000" size="1"></TD>
    <TD vAlign=bottom align=left width="9" height="15" bgcolor="#FFFFFF">
    &nbsp;</TD>
    </TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top width="655" height="15">
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em">
      <FONT size="2">Balance, Beginning of Period</FONT></P></TD>
    <TD vAlign=bottom width="18" height="15"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="17" height="15"><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="75" height="15">
    <FONT size="2">4,026</FONT></TD>
    <TD vAlign=bottom width="26" height="15" align="left"></TD>
    <TD vAlign=bottom width="17" height="15"><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="70" height="15">
    <FONT size="2">4,297</FONT></TD>
    <TD vAlign=bottom align=left width="9" height="15">
    </TD>
    </TR>
  <tr>
    <TD vAlign=top width="655" height="19">
      <FONT size="2">Payments</FONT></TD>
    <TD vAlign=bottom width="18" height="19"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="17" height="19">&nbsp;</TD>
    <TD vAlign=bottom align=right width="75" height="19">
    <FONT size="2">(530</FONT></TD>
    <TD vAlign=bottom width="26" height="19" align="left"><FONT size="2">)</FONT></TD>
    <TD vAlign=bottom width="17" height="19">&nbsp;</TD>
    <TD vAlign=bottom align=right width="70" height="19">
    <FONT size="2">(699</FONT></TD>
    <TD vAlign=bottom align=left width="9" height="19">
    <FONT size="2">)</FONT></TD>
  </tr>
  <TR bgColor=#cceeff>
    <TD vAlign=top width="655" height="19">
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em">
      <FONT size="2">Warranty Accruals During the Period</FONT></P></TD>
    <TD vAlign=bottom width="18" height="19">&nbsp;</TD>
    <TD vAlign=bottom width="17" height="19"
    style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD vAlign=bottom align=right width="75" height="19"
    style="border-bottom: 1px solid #000000">
    <FONT size="2">418</FONT></TD>
    <TD vAlign=bottom width="26" height="19" align="left">&nbsp;</TD>
    <TD vAlign=bottom width="17" height="19"
    style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD vAlign=bottom align=right width="70" height="19"
    style="border-bottom: 1px solid #000000">
    <FONT size="2">945</FONT></TD>
    <TD vAlign=bottom align=left width="9" height="19">
    &nbsp;</TD>
    </TR>
  <tr>
    <TD vAlign=top height="19">
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em">&nbsp;</P></TD>
    <TD vAlign=bottom height="19"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom height="19">
      &nbsp;</TD>
    <TD vAlign=bottom height="19">
      &nbsp;</TD>
    <TD vAlign=bottom height="19" align="left">&nbsp;</TD>
    <TD vAlign=bottom height="19">
      &nbsp;</TD>
    <TD vAlign=bottom height="19">
      &nbsp;</TD>
    <TD vAlign=bottom height="19" align="left">
      &nbsp;</TD>
    </tr>
  <tr>
    <TD vAlign=top width="655" height="19" bgcolor="#CCEEFF">
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em">
      <FONT size="2">Balance, End of Period</FONT></P></TD>
    <TD vAlign=bottom width="18" height="19" bgcolor="#CCEEFF"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="17" height="19" bgcolor="#CCEEFF"
    style="border-bottom: 3px double #000000"><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="75" height="19" bgcolor="#CCEEFF"
    style="border-bottom: 3px double #000000">
    <FONT size="2">3,914</FONT></TD>
    <TD vAlign=bottom width="26" height="19" bgcolor="#CCEEFF" align="left">&nbsp;</TD>
    <TD vAlign=bottom width="17" height="19" bgcolor="#CCEEFF"
    style="border-bottom: 3px double #000000"><FONT face="Times New Roman"
    size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="70" height="19" bgcolor="#CCEEFF"
    style="border-bottom: 3px double #000000">
    <FONT size="2">4,543</FONT></TD>
    <TD vAlign=bottom align=left width="9" height="19" bgcolor="#CCEEFF">
    &nbsp;</TD>
  </tr>
  </TABLE>
</DIV>

<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>
<b>Note 12.&nbsp;&nbsp;Goodwill and Other Intangible Assets</b></font></p>

<P align="left" style="line-height: 100%"><font size="2">Changes in the
Company's carrying amount of goodwill by business segment were as follows:</font></P>
<DIV align="center">
<TABLE style="BORDER-COLLAPSE: collapse" cellPadding=0
width="90%" border=0>

  <TR>
    <TD vAlign=top width="532">
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em">
      &nbsp;</P></TD>
    <TD vAlign=bottom width="14">&nbsp;</TD>
    <TD vAlign=top width="20" align="center">&nbsp;</TD>
    <TD vAlign=top width="81" align="center">&nbsp;</TD>
    <TD vAlign=top width="18" align="center">&nbsp;</TD>
    <TD vAlign=bottom width="99" colspan="2" align="center"><FONT size="1"><B>
    Foreign Currency</B></FONT></TD>
    <TD vAlign=top width="16" align="center">&nbsp;</TD>
    <TD vAlign=top width="22" align="center">&nbsp;</TD>
    <TD vAlign=top width="74" align="center">&nbsp;</TD>
    <TD vAlign=top width="10" align="left">&nbsp;</TD>
    </TR>
  <TR>

    <TD vAlign=bottom width="532">
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align="left">
      <FONT size="1"><B>Segment</B></FONT></P>
      <HR noshade size="1" color="#000000" align="left" width="45%">
    </TD>
    <TD vAlign=bottom width="14">&nbsp;</TD>
    <TD vAlign=bottom align=middle colSpan=2 width="101"><B>
    <FONT face="Times New Roman" size="1">November 30, 2005</FONT></B><BR>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom width="18"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
<font size="2" style="font-size: 10pt" face="Times New Roman">
    <TD vAlign=bottom align=middle colSpan=2 width="99"><FONT size="1"><B>
    Translation Adjustments</B></FONT><BR>
      <HR color=#000000 noShade SIZE=1>
    </TD>
</font>
    <TD vAlign=bottom width="16">&nbsp;</TD>
    <TD vAlign=bottom align=middle colSpan=2 width="96"><FONT size="1"><B>March
    5, 2006</B></FONT><HR noshade color="#000000" size="1">
    </TD>

    <TD vAlign=bottom align=left width="10">&nbsp;</TD>

  </TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top width="532" height="15">
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em">
      <FONT size="2">Performance Coatings &amp; Finishes</FONT></P></TD>
    <TD vAlign=bottom width="14" height="15"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="20" height="15"><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="81" height="15">
    <FONT size="2">11,441</FONT></TD>
    <TD vAlign=bottom width="18" height="15"><FONT size=2>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="13" height="15"><FONT size="2">$</FONT></TD>
    <TD vAlign=bottom width="86" height="15" align="right"><FONT size="2">5</FONT></TD>
    <TD vAlign=bottom width="16" height="15"></TD>
    <TD vAlign=bottom width="22" height="15"><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="74" height="15">
    <FONT size="2">11,446</FONT></TD>
    <TD vAlign=bottom align=left width="10" height="15">
    </TD>
    </TR>
  <tr>
    <TD vAlign=top width="532" height="19">
      <FONT size="2">Fiberglass-Composite Pipe</FONT></TD>
    <TD vAlign=bottom width="14" height="19"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="20" height="19">&nbsp;</TD>
    <TD vAlign=bottom align=right width="81" height="19">
    <FONT size="2">1,440</FONT></TD>
    <TD vAlign=bottom width="18" height="19"><FONT size=2>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="13" height="19">&nbsp;</TD>
    <TD vAlign=bottom width="86" height="19" align="right"><FONT size="2">-</FONT></TD>
    <TD vAlign=bottom width="16" height="19">&nbsp;</TD>
    <TD vAlign=bottom width="22" height="19">&nbsp;</TD>
    <TD vAlign=bottom align=right width="74" height="19">
    <FONT size="2">1,440</FONT></TD>
    <TD vAlign=bottom align=left width="10" height="19">
    &nbsp;</TD>
  </tr>
  <TR bgColor=#cceeff>
    <TD vAlign=top width="532" height="19">
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em">
      <FONT size="2">Infrastructure Products</FONT></P></TD>
    <TD vAlign=bottom width="14" height="19">&nbsp;</TD>
    <TD vAlign=bottom width="20" height="19"
    style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD vAlign=bottom align=right width="81" height="19"
    style="border-bottom: 1px solid #000000">
    <FONT size="2">201</FONT></TD>
    <TD vAlign=bottom width="18" height="19"><FONT size=2>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="13" height="19"
    style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD vAlign=bottom width="86" height="19"
    style="border-bottom: 1px solid #000000" align="right"><FONT size="2">-</FONT></TD>
    <TD vAlign=bottom width="16" height="19">&nbsp;</TD>
    <TD vAlign=bottom width="22" height="19"
    style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD vAlign=bottom align=right width="74" height="19"
    style="border-bottom: 1px solid #000000">
    <FONT size="2">201</FONT></TD>
    <TD vAlign=bottom align=left width="10" height="19">
    &nbsp;</TD>
    </TR>
  <tr>
    <TD vAlign=top height="19">
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em">&nbsp;</P></TD>
    <TD vAlign=bottom height="19"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom height="19">
      &nbsp;</TD>
    <TD vAlign=bottom height="19">
      &nbsp;</TD>
    <TD vAlign=bottom height="19"><FONT size=2>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom height="19">&nbsp;</TD>
    <TD vAlign=bottom height="19" align="right">&nbsp;</TD>
    <TD vAlign=bottom height="19">&nbsp;</TD>
    <TD vAlign=bottom height="19">
      &nbsp;</TD>
    <TD vAlign=bottom height="19">
      &nbsp;</TD>
    <TD vAlign=bottom height="19" align="left">
      &nbsp;</TD>
    </tr>
  <tr>
    <TD vAlign=top width="532" height="19" bgcolor="#CCEEFF">
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em">
      <FONT size="2">Total</FONT></P></TD>
    <TD vAlign=bottom width="14" height="19" bgcolor="#CCEEFF"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="20" height="19" bgcolor="#CCEEFF"
    style="border-bottom: 3px double #000000"><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="81" height="19" bgcolor="#CCEEFF"
    style="border-bottom: 3px double #000000">
    <FONT size="2">13,082</FONT></TD>
    <TD vAlign=bottom width="18" height="19" bgcolor="#CCEEFF"><FONT size=2>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="13" height="19" bgcolor="#CCEEFF"
    style="border-bottom: 3px double #000000"><FONT size="2">$</FONT></TD>
    <TD vAlign=bottom width="86" height="19" bgcolor="#CCEEFF"
    style="border-bottom: 3px double #000000" align="right"><FONT size="2">5</FONT></TD>
    <TD vAlign=bottom width="16" height="19" bgcolor="#CCEEFF">&nbsp;</TD>
    <TD vAlign=bottom width="22" height="19" bgcolor="#CCEEFF"
    style="border-bottom: 3px double #000000"><FONT face="Times New Roman"
    size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="74" height="19" bgcolor="#CCEEFF"
    style="border-bottom: 3px double #000000">
    <FONT size="2">13,087</FONT></TD>
    <TD vAlign=bottom align=left width="10" height="19" bgcolor="#CCEEFF">
    &nbsp;</TD>
  </tr>
  </TABLE>
</DIV>

<P align="left" style="line-height: 100%"><font size="2">The Company's intangible assets,
other than goodwill, and related accumulated amortization consisted of the following:</font></P>

<DIV align="center">
<TABLE style="BORDER-COLLAPSE: collapse" cellPadding=0 width="90%" border=0>
   <TR>
    <TD vAlign=top width="426">
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em">
      &nbsp;</P></TD>
    <TD vAlign=bottom width="19">&nbsp;</TD>
    <TD vAlign=top width="213" colspan="5">
    <P align="center"><FONT size="1"><B>March 5, 2006</B></FONT><HR noshade size="1" color="#000000" align="left"></TD>
    <TD vAlign=top width="16">&nbsp;</TD>
    <TD vAlign=top width="211" colspan="5">
    <P align="center"><FONT size="1"><B>November 30, 2005</B></FONT><HR noshade color="#000000" size="1"></TD></P>
    <TD vAlign=top width="10" align="left">
    &nbsp;</TD>
    </TR>
  <TR>

    <TD vAlign=bottom width="426">
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align="left">
      &nbsp;</P>
    </TD>
    <TD vAlign=bottom width="19">&nbsp;</TD>
    <TD vAlign=bottom align=middle colSpan=2 width="93">
    <P align="center"><FONT size="1"><B>Gross Intangible Assets</FONT></B><BR>
    <HR color=#000000 noShade SIZE=1></TD>
    <TD vAlign=bottom width="21">&nbsp;</TD>
    <TD vAlign=bottom align=middle colSpan=2 width="94">
    <P align="center"><FONT size="1"><B>Accumulated Amortization</B></FONT><BR>
    <HR color=#000000 noShade SIZE=1></TD>
    <TD vAlign=bottom width="16">&nbsp;</TD>
    <TD vAlign=bottom align=middle colSpan=2 width="96">
    <FONT size="1"><B>Gross Intangible Assets</B></FONT><BR>
    <HR noshade color="#000000" size="1"></TD>
    <TD vAlign=bottom width="20">&nbsp;</TD>
    <TD vAlign=bottom align=middle colSpan=2 width="95">
    <P align="center"><FONT size="1"><B>Accumulated Amortization</B></FONT><BR>
    <HR noshade color="#000000" size="1"></TD>

    <TD vAlign=bottom align=left width="10">&nbsp;</TD>

  </TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top width="426" height="15">
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em">
      <FONT size="2">Trademarks</FONT></P></TD>
    <TD vAlign=bottom width="19" height="15"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="21" height="15"><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="73" height="15">
    <FONT size="2">2,134</FONT></TD>
    <TD vAlign=bottom width="21" height="15"></TD>
    <TD vAlign=bottom width="16" height="15"><FONT size="2">$</FONT></TD>
    <TD vAlign=bottom width="80" height="15" align="right"><FONT size="2">(2,085</FONT></TD>
    <TD vAlign=bottom width="16" height="15"><FONT size="2">)</FONT></TD>
    <TD vAlign=bottom width="26" height="15"><FONT size="2">$</FONT></TD>
    <TD vAlign=bottom width="70" height="15" align="right"><FONT size="2">2,119</FONT></TD>
    <TD vAlign=bottom width="20" height="15"></TD>
    <TD vAlign=bottom width="22" height="15"><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="73" height="15">
    <FONT size="2">(2,062</FONT></TD>
    <TD vAlign=bottom align=left width="10" height="15">
    <FONT size="2">)</FONT></TD>
    </TR>
  <tr>
    <TD vAlign=top width="426" height="19">
      <FONT size="2">Non-compete Agreements</FONT></TD>
    <TD vAlign=bottom width="19" height="19"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="21" height="19">&nbsp;</TD>
    <TD vAlign=bottom align=right width="73" height="19">
    <FONT size="2">2,105</FONT></TD>
    <TD vAlign=bottom width="21" height="19">&nbsp;</TD>
    <TD vAlign=bottom width="16" height="19">&nbsp;</TD>
    <TD vAlign=bottom width="80" height="19" align="right"><FONT size="2">(2,026</FONT></TD>
    <TD vAlign=bottom width="16" height="19"><FONT size="2">)</FONT></TD>
    <TD vAlign=bottom width="26" height="19">&nbsp;</TD>
    <TD vAlign=bottom width="70" height="19" align="right"><FONT size="2">2,105</FONT></TD>
    <TD vAlign=bottom width="20" height="19">&nbsp;</TD>
    <TD vAlign=bottom width="22" height="19">&nbsp;</TD>
    <TD vAlign=bottom align=right width="73" height="19">
    <FONT size="2">(1,985</FONT></TD>
    <TD vAlign=bottom align=left width="10" height="19">
    <FONT size="2">)</FONT></TD>
  </tr>
  <TR bgColor=#cceeff>
    <TD vAlign=top width="426" height="19">
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em">
      <FONT size="2">Patents</FONT></P></TD>
    <TD vAlign=bottom width="19" height="19">&nbsp;</TD>
    <TD vAlign=bottom width="21" height="19">&nbsp;</TD>
    <TD vAlign=bottom align=right width="73" height="19">
    <FONT size="2">212</FONT></TD>
    <TD vAlign=bottom width="21" height="19">&nbsp;</TD>
    <TD vAlign=bottom width="16" height="19">&nbsp;</TD>
    <TD vAlign=bottom width="80" height="19" align="right"><FONT size="2">(212</FONT></TD>
    <TD vAlign=bottom width="16" height="19"><FONT size="2">)</FONT></TD>
    <TD vAlign=bottom width="26" height="19">&nbsp;</TD>
    <TD vAlign=bottom width="70" height="19" align="right"><FONT size="2">212</FONT></TD>
    <TD vAlign=bottom width="20" height="19">&nbsp;</TD>
    <TD vAlign=bottom width="22" height="19">&nbsp;</TD>
    <TD vAlign=bottom align=right width="73" height="19">
    <FONT size="2">(212</FONT></TD>
    <TD vAlign=bottom align=left width="10" height="19">
    <FONT size="2">)</FONT></TD>
    </TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top width="426" height="19" bgcolor="#FFFFFF">
      <FONT size="2">Leasehold Interests</FONT></TD>
    <TD vAlign=bottom width="19" height="19" bgcolor="#FFFFFF">&nbsp;</TD>
    <TD vAlign=bottom width="21" height="19" bgcolor="#FFFFFF"
    style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD vAlign=bottom align=right width="73" height="19" bgcolor="#FFFFFF"
    style="border-bottom: 1px solid #000000">
    <FONT size="2">1,930</FONT></TD>
    <TD vAlign=bottom width="21" height="19" bgcolor="#FFFFFF">&nbsp;</TD>
    <TD vAlign=bottom width="16" height="19" bgcolor="#FFFFFF"
    style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD vAlign=bottom width="80" height="19" bgcolor="#FFFFFF"
    style="border-bottom: 1px solid #000000" align="right"><FONT size="2">(1,930</FONT></TD>
    <TD vAlign=bottom width="16" height="19" bgcolor="#FFFFFF"><FONT size="2">)</FONT></TD>
    <TD vAlign=bottom width="26" height="19" bgcolor="#FFFFFF"
    style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD vAlign=bottom width="70" height="19" bgcolor="#FFFFFF" align="right"
    style="border-bottom: 1px solid #000000">
    <FONT size="2">1,930</FONT></TD>
    <TD vAlign=bottom width="20" height="19" bgcolor="#FFFFFF">&nbsp;</TD>
    <TD vAlign=bottom width="22" height="19" bgcolor="#FFFFFF"
    style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD vAlign=bottom align=right width="73" height="19" bgcolor="#FFFFFF"
    style="border-bottom: 1px solid #000000">
    <FONT size="2">(1,930</FONT></TD>
    <TD vAlign=bottom align=left width="10" height="19" bgcolor="#FFFFFF">
    <FONT size="2">)</FONT></TD>
    </TR>
  <tr>
    <TD vAlign=top height="19" bgcolor="#CCEEFF">
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em">&nbsp;</P></TD>
    <TD vAlign=bottom height="19" bgcolor="#CCEEFF"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom height="19" bgcolor="#CCEEFF">
      &nbsp;</TD>
    <TD vAlign=bottom height="19" bgcolor="#CCEEFF">
      &nbsp;</TD>
    <TD vAlign=bottom height="19" bgcolor="#CCEEFF">&nbsp;</TD>
    <TD vAlign=bottom height="19" bgcolor="#CCEEFF">
      &nbsp;</TD>
    <TD vAlign=bottom height="19" bgcolor="#CCEEFF" align="right">
      &nbsp;</TD>
    <TD vAlign=bottom height="19" bgcolor="#CCEEFF">&nbsp;</TD>
    <TD vAlign=bottom height="19" bgcolor="#CCEEFF">
      &nbsp;</TD>
    <TD vAlign=bottom height="19" bgcolor="#CCEEFF" align="right">
      &nbsp;</TD>
    <TD vAlign=bottom height="19" bgcolor="#CCEEFF">&nbsp;</TD>
    <TD vAlign=bottom height="19" bgcolor="#CCEEFF">
      &nbsp;</TD>
    <TD vAlign=bottom height="19" bgcolor="#CCEEFF" align="right">
      &nbsp;</TD>
    <TD vAlign=bottom height="19" bgcolor="#CCEEFF" align="left">
      &nbsp;</TD>
    </tr>
  <tr>
    <TD vAlign=top width="426" height="19" bgcolor="#FFFFFF">
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em">
      <FONT size="2">Total</FONT></P></TD>
    <TD vAlign=bottom width="19" height="19" bgcolor="#FFFFFF"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="21" height="19" bgcolor="#FFFFFF"
    style="border-bottom: 3px double #000000"><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="73" height="19" bgcolor="#FFFFFF"
    style="border-bottom: 3px double #000000">
    <FONT size="2">6,381</FONT></TD>
    <TD vAlign=bottom width="21" height="19" bgcolor="#FFFFFF">&nbsp;</TD>
    <TD vAlign=bottom width="16" height="19" bgcolor="#FFFFFF"
    style="border-bottom: 3px double #000000"><FONT size="2">$</FONT></TD>
    <TD vAlign=bottom width="80" height="19" bgcolor="#FFFFFF"
    style="border-bottom: 3px double #000000" align="right"><FONT size="2">
    (6,253</FONT></TD>
    <TD width="16" height="19" bgcolor="#FFFFFF"><FONT size="2">)</FONT></TD>
    <TD vAlign=bottom width="26" height="19" bgcolor="#FFFFFF"
    style="border-bottom: 3px double #000000"><FONT size="2">$</FONT></TD>
    <TD vAlign=bottom width="70" height="19" bgcolor="#FFFFFF" align="right"
    style="border-bottom: 3px double #000000">
    <FONT size="2">6,366</FONT></TD>
    <TD vAlign=bottom width="20" height="19" bgcolor="#FFFFFF">&nbsp;</TD>
    <TD vAlign=bottom width="22" height="19" bgcolor="#FFFFFF"
    style="border-bottom: 3px double #000000"><FONT face="Times New Roman"
    size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="73" height="19" bgcolor="#FFFFFF"
    style="border-bottom: 3px double #000000">
    <FONT size="2">(6,189</FONT></TD>
    <TD vAlign=middle align=left width="10" height="19" bgcolor="#FFFFFF">
    <FONT size="2">)</FONT></TD>
  </tr>
  </TABLE>
</DIV>
</font>
</font>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>

<font size="2" style="font-size: 10pt" face="Times New Roman">

<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">All of the Company's intangible
assets, other than goodwill, are subject to amortization.&nbsp; Amortization
expense for the three months ended March 5, 2006 and February 27, 2005 was $51
and $51, respectively.&nbsp; At March 5, 2006, estimated future amortization
expense was as follows:&nbsp;
$112 for the remaining nine months of 2006 and $16 for 2007.</font><P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>

<P style="PAGE-BREAK-BEFORE: always">
<HR align=center width="100%" color=#999999 SIZE=3>


<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2><B>AMERON INTERNATIONAL CORPORATION
AND SUBSIDIARIES</B></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px"><FONT size=1></FONT>&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2><B>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)</B></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2><B>(Unaudited)</B></FONT></P>
<font size="2" style="font-size: 10pt" face="Times New Roman">

<p><b><font size="2">Note 13.&nbsp; Stock-Based Compensation</font></b></p>
<p><font size="2">As of March 5, 2006, the Company had outstanding grants under the following share-based
compensation plans:</font></p>
<ul>
	<li>
    <P style="margin-top: 0; margin-bottom: 0"><font size="2">1992 Incentive
    Stock Compensation Plan (&quot;1992 Plan&quot;) - The 1992 Plan was terminated in
    2001, except as to the outstanding options.&nbsp; 500,000 new shares of
	common stock were made available for awards to key employees.&nbsp; Key employees were granted
    options to purchase the Company's common stock at prices not less than 100%
    of market value on the date of grant.&nbsp; Such options vested in equal
    annual installments over four years and terminate fifteen years from the
    dates of grant.<br>
&nbsp;</font></li>
	<li>
    <P style="margin-top: 0; margin-bottom: 0"><font size="2">1994 Non-Employee
    Director Stock Option Plan (&quot;1994 Plan&quot;) - The 1994 Plan was terminated in
    2001, except as to the outstanding options.&nbsp; 240,000 new shares of
    common stock were made available for awards to non-employee directors.&nbsp; Non-employee
    directors were granted options to purchase the Company's common stock at
    prices not less than 100% of market value on the date of grant.&nbsp; Such
    options vested in equal annual installments over four years and terminate
    ten years from the dates of grant. <br>&nbsp;</font></li>
	<li>
    <P style="margin-top: 0; margin-bottom: 0"><font size="2">2001 Stock
    Incentive Plan (&quot;2001 Plan&quot;) - The 2001 Plan was terminated in 2004, except
    as to the outstanding stock options and restricted stock grants.&nbsp;
    380,000 new shares of common stock were made available for awards to key
    employees and non-employee directors.&nbsp; The 2001 Plan served as
    the successor to both 1992 Plan and 1994 Plan and superseded those plans.&nbsp;
    Non-employee directors were granted options under the 2001 Plan to purchase
    the Company's common stock at prices not less than 100% of market value on
    the date of grant.&nbsp; Such options vested in equal annual installments
    over four years.&nbsp; Such options terminate ten years from the date of
    grant.&nbsp; Key employees were granted restricted stock under the 2001
    Plan.&nbsp; Such restricted stock grants vested in equal annual installments
    over four years.<br>
&nbsp;</font></li>
	<li>
    <P style="margin-top: 0; margin-bottom: 0"><font size="2">2004 Stock Incentive Plan (&quot;2004 Plan&quot;) - The 2004 Plan
	serves as the successor to the 2001 Plan and supersedes that plan.&nbsp;
    525,000 new shares of common stock were made available for awards to key employees
    and non-employee directors and may include, but
    are not limited
	to, stock options and restricted stock grants.&nbsp; Non-employee directors
	were granted options under the 2004 Plan to purchase the Company's
	common stock at prices not less than 100% of market value on the date of
	grant.&nbsp; Such options vest in equal annual
	installments over four years.&nbsp; Such options terminate ten years from the date of grant.&nbsp;
	Key employees were granted restricted stock under the 2004 Plan.&nbsp;
	Such restricted stock grants vest in equal annual installments over three
	years.&nbsp; During the three months ended March 5, 2006, the Company
    granted 45,000 restricted shares to key employees with fair value of $2,461.</font></li>
</ul>
<p style="margin-top: 0; margin-bottom: 0"><font size="2">In addition to the above, on January 24, 2001, non-employee directors were granted options to
	purchase the Company's common stock at prices not less than 100% of market
	value on the dates of grant.&nbsp; Such options vested in equal annual
	installments over four years and terminate ten years from the date of grant.&nbsp;
	At March 5, 2006, there were 30,000 shares subject to
	such stock options.</font></p>
<p style="margin-top: 0; margin-bottom: 0">&nbsp;</p>
<p style="margin-top: 0; margin-bottom: 0"><font size="2">Prior to December 1, 2005, the company applied Accounting Principles Board
Opinion No. 25, &quot;Accounting for Stock Issued to Employees,&quot; and related
interpretations in accounting for its various stock option plans.&nbsp;
Effective December 1, 2005, the Company adopted SFAS No. 123 (revised 2004),
&quot;Share-Based Payments,&quot; using the Modified Prospective Application method.&nbsp;
SFAS No. 123 (R) requires the Company to measure all employee stock-based
compensation awards using the fair-value method and to record such expense in
its
consolidated financial statements.&nbsp; Under the Modified Prospective
Application method, financial results for the prior period have not been
adjusted.&nbsp; Stock-based compensation expense for the three months ended
March 5, 2006 includes: (a) compensation expense for all stock-based
compensation awards granted prior to, but not yet vested as of December 1, 2005,
based on the grant date fair value estimated in accordance with the original
provisions of SFAS No. 123, &quot;Accounting for Stock-Based Compensation,&quot; and (b)
compensation expense for all stock-based compensation awards granted subsequent
to November 30, 2005, based on the grant date fair value estimated in accordance
with the provisions of SFAS No. 123 (R).</font></p>
<p style="margin-top: 0; margin-bottom: 0">&nbsp;</p>
<p style="margin-top: 0; margin-bottom: 0"><font size="2">As a result of adopting SFAS No. 123 (R), the Company's income
before income taxes and equity in earnings of joint venture for the three months
ended March 5, 2006 included compensation
expense of $51 related to stock-based compensation arrangements.&nbsp; This
amount did not have a significant impact on either basic or diluted earnings per share,
and there were no capitalized share-based compensation costs, for the three months
ended March 5, 2006.</font></p>
<p style="margin-top: 0; margin-bottom: 0">&nbsp;</p>
<p style="margin-top: 0; margin-bottom: 0"><font size="2">Prior to the adoption of SFAS No. 123 (R), the Company
reported all tax benefits resulting from the exercise of stock options as
operating cash flows in its statements of cash flows.&nbsp; In accordance with
SFAS No. 123 (R), the Company will present excess tax benefits from the exercise
of stock options as financing cash flows.&nbsp; For the three months ended March
5, 2006, no excess tax benefits were reported as financing cash flows.</font></p>

<P style="PAGE-BREAK-BEFORE: always">
<HR align=center width="100%" color=#999999 SIZE=3>

<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2><B>AMERON INTERNATIONAL CORPORATION
AND SUBSIDIARIES</B></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2><B>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)</B></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2><B>(Unaudited)</B></FONT></P>
<p style="margin-top: 0; margin-bottom: 0">&nbsp;</p>
<p style="margin-top: 0; margin-bottom: 0">&nbsp;</p>
<p style="margin-top: 0; margin-bottom: 0"><font size="2">The following table illustrates the effect on net income and
earnings per share as if the Company had applied the fair value recognition
provisions of SFAS No. 123 to stock-based compensation during the three-month
period ended February 27, 2005:</font></p>
<p style="margin-top: 0; margin-bottom: 0">&nbsp;</p>
<DIV align="center">
<TABLE style="BORDER-COLLAPSE: collapse" cellPadding=0
width="90%" border=0>

  <TR>

    <TD vAlign=bottom width="765">
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
    </TD>
<font size="2">
    <TD vAlign=bottom width="14"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom align=middle colSpan=2 width="91"><b>
	<font face="Times New Roman" size="1">February 27,<BR>2005</font></b><BR>
	<hr noshade color="#000000" size="1"></TD>
    <TD vAlign=bottom width="7"><FONT size=1>&nbsp;</FONT></TD>
</font>

  </TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top width="765" height="15">
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em">
      <FONT size="2" face="Times New Roman">Reported Net Income</FONT></P></TD>
<font size="2">
    <TD vAlign=bottom width="14" height="15">
	<FONT size=2 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="20" height="15"><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="71" height="15">
    <font face="Times New Roman" size="2">481</font></TD>
    <TD vAlign=bottom width="7" height="15">
	<FONT size=2 face="Times New Roman">&nbsp;</FONT></TD>
</font>
    </TR>
  <tr>
    <TD vAlign=top width="765" height="19">
      <FONT size="2" face="Times New Roman">Add: Stock-based Employee Compensation Expense Included in
      Reported Net Income, Net of Tax</FONT></TD>
<font size="2">
    <TD vAlign=bottom width="14" height="19">
	<FONT size=2 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="20" height="19"
style="border-bottom-style: none; border-bottom-width: medium">&nbsp;</TD>
    <TD vAlign=bottom align=right width="71" height="19"
style="border-bottom-style: none; border-bottom-width: medium">
    <font face="Times New Roman" size="2">20</font></TD>
    <TD vAlign=bottom width="7" height="19">
	<FONT size=2 face="Times New Roman">&nbsp;</FONT></TD>
</font>
  </tr>
  <TR bgColor=#cceeff>
    <TD vAlign=top width="765" height="19">
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em">
      <FONT size="2" face="Times New Roman">Deduct: Stock-based Employee Compensation Expense
      Determined under SFAS No. 123, Net of Tax</FONT></P></TD>
<font size="2">
    <TD vAlign=bottom width="14" height="19"
style="border-right-style: none; border-right-width: medium">&nbsp;</TD>
    <TD vAlign=bottom width="20" height="19"
style="border-left-style: none; border-left-width: medium; border-right-style: none; border-right-width: medium; border-top-style: none; border-top-width: medium; border-bottom-style: solid; border-bottom-width: 1px"
bordercolor="#000000">&nbsp;</TD>
    <TD vAlign=bottom align=right width="71" height="19"
style="border-left-style: none; border-left-width: medium; border-right-style: none; border-right-width: medium; border-top-style: none; border-top-width: medium; border-bottom-style: solid; border-bottom-width: 1px"
bordercolor="#000000">
    <font face="Times New Roman" size="2">(249</font></TD>
    <TD vAlign=bottom width="7" height="19"
style="border-left-style: none; border-left-width: medium">
	<font size="2" face="Times New Roman">)</font></TD>
</font>
    </TR>
  <tr>
    <TD vAlign=top width="765" height="19">
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em">
      <FONT size="2" face="Times New Roman">Pro Forma Net Income</FONT></P></TD>
<font size="2">
    <TD vAlign=bottom width="14" height="19">
	<FONT size=2 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="20" height="19"
style="border-bottom: 3px double #000000"><FONT face="Times New Roman" size=2>
	$</FONT></TD>
    <TD vAlign=bottom align=right width="71" height="19"
style="border-bottom: 3px double #000000">
    <font face="Times New Roman" size="2">251</font></TD>
    <TD vAlign=bottom width="7" height="19">
	<FONT size=2 face="Times New Roman">&nbsp;</FONT></TD>
</font>
  </tr>
  <tr>
    <TD vAlign=bottom height="17" bgcolor="#CCEEFF"></TD>
<font size="2">
    <TD vAlign=bottom height="17" bgcolor="#CCEEFF">
	<FONT size=2 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom height="17" bgcolor="#CCEEFF">
      &nbsp;</TD>
    <TD vAlign=bottom height="17" bgcolor="#CCEEFF">
      &nbsp;</TD>
    <TD vAlign=bottom height="17" bgcolor="#CCEEFF">
	<FONT size=2 face="Times New Roman">&nbsp;</FONT></TD>
</font>
  </tr>
  <tr>
    <TD vAlign=bottom height="17"><FONT size="2" face="Times New Roman">Basic
	Net Income Per Share:</FONT></TD>
<font size="2">
    <TD vAlign=bottom height="17"></TD>
    <TD vAlign=bottom height="17">
      </TD>
    <TD vAlign=bottom height="17">
      </TD>
    <TD vAlign=bottom height="17"></TD>
</font>
  </tr>
  <tr>
    <TD vAlign=bottom height="17" bgcolor="#CCEEFF"><P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em">
    <FONT size="2" face="Times New Roman">As Reported</FONT></TD>
<font size="2">
    <TD vAlign=bottom height="17" bgcolor="#CCEEFF"></TD>
    <TD vAlign=bottom height="17" bgcolor="#CCEEFF">
      <FONT size="2" face="Times New Roman">$</FONT></TD>
    <TD vAlign=bottom height="17" align="right" bgcolor="#CCEEFF">
    <font face="Times New Roman" size="2">0.06</font></TD>
    <TD vAlign=bottom height="17" bgcolor="#CCEEFF"></TD>
</font>
  </tr>
  <tr>
    <TD vAlign=bottom height="17"><P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em">
    <FONT size="2" face="Times New Roman">Pro Forma</FONT></TD>
<font size="2">
    <TD vAlign=bottom height="17"></TD>
    <TD vAlign=bottom height="17">
      <FONT size="2" face="Times New Roman">$</FONT></TD>
    <TD vAlign=bottom height="17" align="right">
      <font face="Times New Roman" size="2">0.03</font></TD>
    <TD vAlign=bottom height="17"></TD>
</font>
  </tr>
  <tr>
    <TD vAlign=bottom height="17" bgcolor="#CCEEFF"></TD>
<font size="2">
    <TD vAlign=bottom height="17" bgcolor="#CCEEFF"></TD>
    <TD vAlign=bottom height="17" bgcolor="#CCEEFF">
    </TD>
    <TD vAlign=bottom height="17" align="right" bgcolor="#CCEEFF">
    </TD>
    <TD vAlign=bottom height="17" bgcolor="#CCEEFF"></TD>
</font>
  </tr>
  <tr>
    <TD vAlign=bottom height="17"><FONT size="2" face="Times New Roman">Diluted
	Net Income Per Share:</FONT></TD>
<font size="2">
    <TD vAlign=bottom height="17"></TD>
    <TD vAlign=bottom height="17">
      </TD>
    <TD vAlign=bottom height="17" align="right">
      </TD>
    <TD vAlign=bottom height="17"></TD>
</font>
  </tr>
  <tr>
    <TD vAlign=bottom height="17" bgcolor="#CCEEFF"><P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em">
    <FONT size="2" face="Times New Roman">As Reported</FONT></TD>
<font size="2">
    <TD vAlign=bottom height="17" bgcolor="#CCEEFF"></TD>
    <TD vAlign=bottom height="17" bgcolor="#CCEEFF">
      <FONT size="2" face="Times New Roman">$</FONT></TD>
    <TD vAlign=bottom height="17" align="right" bgcolor="#CCEEFF">
    <font face="Times New Roman" size="2">0.06</font></TD>
    <TD vAlign=bottom height="17" bgcolor="#CCEEFF"></TD>
</font>
  </tr>
  <tr>
    <TD vAlign=bottom height="17"><P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em">
    <FONT size="2" face="Times New Roman">Pro Forma</FONT></TD>
<font size="2">
    <TD vAlign=bottom height="17"></TD>
    <TD vAlign=bottom height="17">
      <FONT size="2" face="Times New Roman">$</FONT></TD>
    <TD vAlign=bottom height="17" align="right">
      <font face="Times New Roman" size="2">0.03</font></TD>
    <TD vAlign=bottom height="17"></TD>
</font>
  </tr>
</TABLE>
</DIV>
<p style="margin-top: 0; margin-bottom: 0">&nbsp;</p>
<p style="margin-top: 0; margin-bottom: 0">&nbsp;</p>
<p style="margin-top: 0; margin-bottom: 0"><font size="2">The following table summarizes the stock option activity for
the three months ended March 5, 2006:</font></p>
<p style="margin-top: 0; margin-bottom: 0">&nbsp;</p>
<DIV align="center">
<table border="0" width="90%" cellpadding="0" style="border-collapse: collapse">
	<tr>
		<td width="46%" valign="bottom" bordercolor="#000000"
        style="border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium; border-bottom-style:none; border-bottom-width:medium">
		<font size="1"><b>Options</b></font><HR noshade color="#000000"
        size="1"></td>
		<td width="3%" style="border-style: none; border-width: medium">&nbsp;</td>
		<td width="11%" valign="bottom" align="center">
		<P align="center"><font size="1"><b>Number of<br>Options</b></font><BR>
		<HR noshade color="#000000" size="1"></td>
		<td style="border-style: none; border-width: medium" width="2%" valign="bottom">&nbsp;</td>
		<td width="11%" colspan="2"
        valign="bottom" align="center">
		<P align="center"><font size="1"><b>Weighted-Average<br>Exercise Price per Share</b></font><BR>
		<HR noshade color="#000000" size="1"></td>
		<td width="2%" valign="bottom" style="border-style: none; border-width: medium">&nbsp;</td>

		<td valign="bottom" align="center">
		<P align="center"><font size="1"><b>Weighted-Average<br>Remaining<br>Contractual Term (Years)</b></font><BR>
		<HR noshade color="#000000" size="1"></td>
		<td width="2%" align="center" valign="bottom" style="border-style: none; border-width: medium">&nbsp;</td>
		<td colspan="2" align="center" valign="bottom">
		<P align="center"><font size="1"><b>Aggregate<br>Intrinsic Value</b></font><BR>
		<HR noshade color="#000000" size="1"></td>
	</tr>
	<tr>
		<td width="46%" bgcolor="#CCEEFF">
		<font size="2">Outstanding at November 30, 2005</font></td>
		<td width="3%" bgcolor="#CCEEFF"
        style="border-top-style: none; border-top-width: medium">&nbsp;</td>
		<td width="11%" align="right" bgcolor="#CCEEFF" bordercolor="#000000">
		<font size="2">467,783</font></td>
		<td width="2%" bgcolor="#CCEEFF" bordercolor="#000000" style="border-top-style: none; border-top-width: medium; border-bottom-style:none; border-bottom-width:medium">&nbsp;</td>
		<td width="2%" bgcolor="#CCEEFF" bordercolor="#000000">
		<font size="2">$</font></td>
		<td width="9%" bgcolor="#CCEEFF" align="right" bordercolor="#000000">
		<font size="2">24.11</font></td>
		<td width="2%" bgcolor="#CCEEFF" bordercolor="#000000" style="border-top-style: none; border-top-width: medium">&nbsp;</td>
		<td width="11%" bgcolor="#CCEEFF" align="right" bordercolor="#000000">&nbsp;</td>
		<td width="2%" bgcolor="#CCEEFF" bordercolor="#000000" style="border-top-style: none; border-top-width: medium">&nbsp;</td>
		<td width="2%" bgcolor="#CCEEFF" bordercolor="#000000">
		<p align="right">&nbsp;</td>
		<td width="9%" bgcolor="#CCEEFF" align="right" bordercolor="#000000">&nbsp;</td>
	</tr>
	<tr>
		<td width="46%"
        style="border-bottom-style: none; border-bottom-width: medium">
		<font size="2">&nbsp;&nbsp;&nbsp; Exercised</font></td>
		<td width="3%"
        style="border-bottom-style: none; border-bottom-width: medium">&nbsp;</td>
		<td width="11%" align="right" bordercolor="#000000"
        style="border-bottom-style: solid; border-bottom-width: 1px; border-right-style:none; border-right-width:medium">
		<font size="2">(11,000</font></td>
		<td width="2%" bordercolor="#000000" style="border-style:none; border-width:medium; ">
		<font size="2">)</font></td>
		<td width="2%" bordercolor="#000000" style="border-bottom-style: none; border-bottom-width: medium; border-left-style:none; border-left-width:medium">&nbsp;</td>
		<td width="9%" align="right" bordercolor="#000000"
        style="border-bottom-style: none; border-bottom-width: medium">
		<font size="2">19.30</font></td>
		<td width="2%" bordercolor="#000000" style="border-bottom-style: none; border-bottom-width: medium">&nbsp;</td>
		<td width="11%" align="right" bordercolor="#000000"
        style="border-bottom-style: none; border-bottom-width: medium">&nbsp;</td>
		<td width="2%" bordercolor="#000000" style="border-bottom-style: none; border-bottom-width: medium">&nbsp;</td>
		<td width="2%" bordercolor="#000000" style="border-bottom-style: none; border-bottom-width: medium">&nbsp;</td>
		<td width="9%" align="right" bordercolor="#000000"
        style="border-bottom-style: none; border-bottom-width: medium">&nbsp;</td>
	</tr>
	<tr>
		<td width="46%" bgcolor="#CCEEFF"
        style="border-style: none; border-width: medium">
		<font size="2">Outstanding at March 5, 2006</font></td>
		<td width="3%" bgcolor="#CCEEFF"
        style="border-style: none; border-width: medium">&nbsp;</td>
		<td width="11%" align="right" bgcolor="#CCEEFF"
        style="border-left-style: none; border-left-width: medium; border-right-style: none; border-right-width: medium; border-bottom-style: double; border-bottom-width: 3px"
        bordercolor="#000000">
		<font size="2">456,783</font>
		</td>
		<td width="2%" bgcolor="#CCEEFF" bordercolor="#000000" style="border-style: none; border-width: medium">&nbsp;</td>
		<td width="2%" bgcolor="#CCEEFF">
		&nbsp;</td>
		<td width="9%" bgcolor="#CCEEFF" align="right">
		<font size="2">24.22</font></td>
		<td width="2%" bgcolor="#CCEEFF" bordercolor="#000000" style="border-style: none; border-width: medium">&nbsp;</td>
		<td width="11%" bgcolor="#CCEEFF" align="right"
        style="border-bottom:3px double #000000; ">
		<font size="2">5.91</font>
		</td>
		<td width="2%" bgcolor="#CCEEFF" bordercolor="#000000" style="border-style: none; border-width: medium">&nbsp;</td>
		<td width="2%" bgcolor="#CCEEFF" style="border-left-style: none; border-left-width: medium; border-right-style: none; border-right-width: medium; border-top-style: none; border-top-width: medium; border-bottom: 3px double #000000">
		<font size="2">$</font></td>
		<td width="9%" bgcolor="#CCEEFF" align="right"
        style="border-left-style: none; border-left-width: medium; border-right-style: none; border-right-width: medium; border-top-style: none; border-top-width: medium; border-bottom: 3px double #000000">
		<font size="2">17,169</font></td>
	</tr>
	<tr>
		<td width="46%"
        style="border-top-style: none; border-top-width: medium; border-bottom-style: none; border-bottom-width: medium">&nbsp;</td>
		<td width="3%"
        style="border-top-style: none; border-top-width: medium; border-bottom-style: none; border-bottom-width: medium">&nbsp;</td>
		<td width="11%"
        style="border-top-style: none; border-top-width: medium; border-bottom-style: none; border-bottom-width: medium"
        bordercolor="#000000">&nbsp;</td>
		<td width="2%" bordercolor="#000000" style="border-top-style: none; border-top-width: medium; border-bottom-style: none; border-bottom-width: medium">&nbsp;</td>
		<td width="2%" bordercolor="#000000" style="border-top-style: none; border-top-width: medium; border-bottom-style: none; border-bottom-width: medium">&nbsp;</td>
		<td width="9%" align="right" bordercolor="#000000"
        style="border-top-style: none; border-top-width: medium; border-bottom-style: none; border-bottom-width: medium">&nbsp;</td>
		<td width="2%" bordercolor="#000000" style="border-top-style: none; border-top-width: medium; border-bottom-style: none; border-bottom-width: medium">&nbsp;</td>
		<td width="11%" align="right" bordercolor="#000000"

        style="border-top-style: none; border-top-width: medium; border-bottom-style: none; border-bottom-width: medium">&nbsp;</td>
		<td width="2%" bordercolor="#000000" style="border-top-style: none; border-top-width: medium; border-bottom-style: none; border-bottom-width: medium">&nbsp;</td>
		<td width="2%" bordercolor="#000000" style="border-top-style: none; border-top-width: medium; border-bottom-style: none; border-bottom-width: medium">&nbsp;</td>
		<td width="9%" align="right" bordercolor="#000000"
        style="border-top-style: none; border-top-width: medium; border-bottom-style: none; border-bottom-width: medium">&nbsp;</td>
	</tr>
	<tr>
		<td width="46%" bgcolor="#CCEEFF"
        style="border-style: none; border-width: medium">
		<font size="2">Options exercisable at March 5, 2006</font></td>
		<td width="3%" bgcolor="#CCEEFF"
        style="border-style: none; border-width: medium">&nbsp;</td>
		<td width="11%" align="right" bgcolor="#CCEEFF"
        style="border-left-style: none; border-left-width: medium; border-right-style: none; border-right-width: medium; border-bottom-style: double; border-bottom-width: 3px"
        bordercolor="#000000">
		<font size="2">413,283</font>
		</td>
		<td width="2%" bgcolor="#CCEEFF" bordercolor="#000000" style="border-style: none; border-width: medium">&nbsp;</td>
				<td width="2%" bgcolor="#CCEEFF">
		&nbsp;</td>
		<td width="9%" bgcolor="#CCEEFF" align="right">
		<font size="2">23.35</font></td>
		<td width="2%" bgcolor="#CCEEFF" bordercolor="#000000" style="border-style: none; border-width: medium">&nbsp;</td>
		<td width="11%" bgcolor="#CCEEFF" align="right"
        style="border-bottom:3px double #000000; ">
		<font size="2">5.67</font></td>
		<td width="2%" bgcolor="#CCEEFF" bordercolor="#000000" style="border-style: none; border-width: medium">&nbsp;</td>
				<td width="2%" bgcolor="#CCEEFF" style="border-left-style: none; border-left-width: medium; border-right-style: none; border-right-width: medium; border-top-style: none; border-top-width: medium; border-bottom: 3px double #000000">
		<font size="2">$</font></td>
		<td width="9%" bgcolor="#CCEEFF" align="right"
        style="border-left-style: none; border-left-width: medium; border-right-style: none; border-right-width: medium; border-top-style: none; border-top-width: medium; border-bottom: 3px double #000000">
		<font size="2">15,896</font></td>
	</tr>
</table>
    </DIV>
<p style="margin-top: 0; margin-bottom: 0">&nbsp;</p>
<p style="margin-top: 0; margin-bottom: 0"><font size="2">For the three months ended March 5, 2006, no options were
granted, were forfeited or expired.</font></p>
<p style="margin-top: 0; margin-bottom: 0">&nbsp;</p>


<p style="margin-top: 0; margin-bottom: 0"><font size="2">The aggregate intrinsic value in the table above represents
the total pretax intrinsic value, which is the difference between the Company's
closing stock price on the last trading day of the first quarter of 2006 and the
exercise price times the number of shares that would have been received by the
option holders if they had exercised their options on March 5, 2006.&nbsp; This
amount will change based on the fair market value of the Company's stock.&nbsp;
As of March 5, 2006, there was $272 of total unrecognized compensation cost
related to stock-based compensation arrangements. That cost is expected to be
recognized over a weighted-average period of 3.1 years.</font></p>
<p style="margin-top: 0; margin-bottom: 0">&nbsp;</p>
<p style="margin-top: 0; margin-bottom: 0"><font size="2">Net cash proceeds from stock option exercises were $213 and
$67 for the three months ended March 5, 2006 and February 27, 2005,
respectively.&nbsp; The Company's policy is to issue shares from its authorized
shares upon the exercise of stock options.</font></p>

<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>

<P style="PAGE-BREAK-BEFORE: always">

<HR align=center width="100%" color=#999999 SIZE=3>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2><B>AMERON INTERNATIONAL CORPORATION
AND SUBSIDIARIES</B></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px"><FONT size=1></FONT>&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2><B>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)</B></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2><B>(Unaudited)</B></FONT></P>


<p align=left style="line-height: 100%"><b>Note 14.&nbsp; Employee Benefit Plans</b></p>
<font size="2">
<font size="2" style="font-size: 10pt" face="Times New Roman">
<p style="LINE-HEIGHT: 100%" align="left">For the three months ended
March 5, 2006 and February 27, 2005, net pension and postretirement costs were
comprised of the following:</p>
</font>
<DIV align="center">
<TABLE style="BORDER-COLLAPSE: collapse" cellPadding=0
width="90%" border=0>

  <TR>
<font size="2" style="font-size: 10pt" face="Times New Roman">
    <TD vAlign=bottom>&nbsp;</TD>
<font size="2">
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
<font size="2" style="font-size: 10pt" face="Times New Roman">
    <TD vAlign=bottom colspan="11" align="center"><FONT size="1"><B>Pension Benefits</B></FONT>
      <HR noshade size="1" color="#000000" align="left"></TD>
<font size="2">
    <TD vAlign=bottom>&nbsp;</TD>
    <TD vAlign=bottom colspan="5" align="center"><FONT size="1"><B>U.S.
    Postretirement Benefits</B></FONT><HR noshade color="#000000" size="1"></TD>
</font>
</font>
</font>
</font>
    <TD vAlign=bottom align="left">&nbsp;</TD>
  </TR>
  <TR>
<font size="2" style="font-size: 10pt" face="Times New Roman">
    <TD vAlign=bottom>&nbsp;</TD>
<font size="2">
    <TD vAlign=bottom>&nbsp;</TD>
<font size="2" style="font-size: 10pt" face="Times New Roman">
    <TD vAlign=bottom colspan="5" align="center"><FONT size="1"><B>U.S.
    Plans</B></FONT><HR noshade size="1" color="#000000" align="left"></TD>
<font size="2">
    <TD vAlign=bottom>&nbsp;</TD>
    <TD vAlign=bottom colspan="5" align="center"><FONT size="1"><B>Non U.S.
    Plans</B></FONT><HR noshade size="1" color="#000000" align="left"></TD>
    <TD vAlign=bottom>&nbsp;</TD>
    <TD vAlign=bottom>&nbsp;</TD>
    <TD vAlign=bottom>&nbsp;</TD>
    <TD vAlign=bottom>&nbsp;</TD>
    <TD vAlign=bottom>
      &nbsp;</TD>
    <TD vAlign=bottom>
      &nbsp;</TD>
</font>
</font>
</font>
</font>
    <TD vAlign=bottom align="left">
      &nbsp;</TD>
  </TR>

  <TR>
    <TD vAlign=top width="318">
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em">
      &nbsp;</P></TD>
    <TD vAlign=bottom width="21">&nbsp;</TD>
    <TD vAlign=top width="548" align="center" colspan="18"><FONT size="1"><B>
    Three Months Ended March 5 and February 27,</B></FONT></TD>
    </TR>
  <TR>

    <TD vAlign=bottom width="318">
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
    </TD>
    <TD vAlign=bottom width="21"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom align=middle colSpan=2 width="67"><B>
    <FONT face="Times New Roman" size="1">2006</FONT></B><BR>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom width="20"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom align=middle colSpan=2 width="70"><B>
    <FONT face="Times New Roman" size="1">2005</FONT></B><HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom width="25">&nbsp;</TD>
    <TD vAlign=bottom align=middle colSpan=2 width="71"><B>
    <FONT face="Times New Roman" size="1">2006</FONT></B><HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom width="20">&nbsp;</TD>
    <TD vAlign=bottom align=middle colSpan=2 width="74"><B>
    <FONT face="Times New Roman" size="1">2005</FONT></B><HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom width="24">&nbsp;</TD>
    <TD vAlign=bottom align=middle colSpan=2 width="73"><B>
    <FONT face="Times New Roman" size="1">2006</FONT></B><HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom width="16">&nbsp;</TD>
    <TD vAlign=bottom align=middle colSpan=2 width="73"><FONT size="1"><B>2005</B></FONT><HR
    noshade color="#000000" size="1">
    </TD>

    <TD vAlign=bottom align=left width="10">&nbsp;</TD>

  </TR>
  <TR bgColor=#cceeff>
    <TD width="318">
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em">
      <FONT size="2">Service Cost</FONT></P></TD>
    <TD vAlign=bottom width="21"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="19"><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="49">
    <FONT size="2">852</FONT></TD>
    <TD vAlign=bottom width="20">&nbsp;</TD>
    <TD vAlign=bottom width="17"><FONT size="2">$</FONT></TD>
    <TD vAlign=bottom width="54" align="right"><FONT size="2">781</FONT></TD>
    <TD vAlign=bottom width="25">&nbsp;</TD>
    <TD vAlign=bottom width="17"><FONT size="2">$</FONT></TD>
    <TD vAlign=bottom width="55" align="right"><FONT size="2">332</FONT></TD>
    <TD vAlign=bottom width="20">&nbsp;</TD>
    <TD vAlign=bottom width="17"><FONT size="2">$</FONT></TD>
    <TD vAlign=bottom width="58" align="right"><FONT size="2">349</FONT></TD>
    <TD vAlign=bottom width="24">&nbsp;</TD>
    <TD vAlign=bottom width="18"><FONT size="2">$</FONT></TD>
    <TD vAlign=bottom width="56" align="right"><FONT size="2">20</FONT></TD>
    <TD vAlign=bottom width="16">&nbsp;</TD>
    <TD vAlign=bottom width="21"><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="53">
    <FONT size="2">30</FONT></TD>
    <TD vAlign=bottom align=left width="10">
    &nbsp;</TD>
    </TR>
  <tr>
    <TD width="318">
      <FONT size="2">Interest Cost</FONT></TD>
    <TD vAlign=bottom width="21"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="19">&nbsp;</TD>
    <TD vAlign=bottom align=right width="49">
    <FONT size="2">2,510</FONT></TD>
    <TD vAlign=bottom width="20">&nbsp;</TD>
    <TD vAlign=bottom width="17">&nbsp;</TD>
    <TD vAlign=bottom width="54" align="right"><FONT size="2">2,519</FONT></TD>
    <TD vAlign=bottom width="25">&nbsp;</TD>
    <TD vAlign=bottom width="17">&nbsp;</TD>
    <TD vAlign=bottom width="55" align="right"><FONT size="2">426</FONT></TD>
    <TD vAlign=bottom width="20">&nbsp;</TD>
    <TD vAlign=bottom width="17">&nbsp;</TD>
    <TD vAlign=bottom width="58" align="right"><FONT size="2">484</FONT></TD>
    <TD vAlign=bottom width="24">&nbsp;</TD>
    <TD vAlign=bottom width="18">&nbsp;</TD>
    <TD vAlign=bottom width="56" align="right"><FONT size="2">45</FONT></TD>
    <TD vAlign=bottom width="16">&nbsp;</TD>
    <TD vAlign=bottom width="21">&nbsp;</TD>
    <TD vAlign=bottom align=right width="53">
    <FONT size="2">51</FONT></TD>
    <TD vAlign=bottom align=left width="10">
    &nbsp;</TD>
  </tr>
  <TR bgColor=#cceeff>
    <TD width="318">
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em">
      <FONT size="2">Expected Return on Plan Assets</FONT></P></TD>
    <TD vAlign=bottom width="21">&nbsp;</TD>
    <TD vAlign=bottom width="19">&nbsp;</TD>
    <TD vAlign=bottom align=right width="49">
    <FONT size="2">(3,013</FONT></TD>
    <TD vAlign=bottom width="20"><FONT size=2>)&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="17">&nbsp;</TD>
    <TD vAlign=bottom width="54" align="right"><FONT size="2">(2,801</FONT></TD>
    <TD vAlign=bottom width="25"><FONT size="2">)</FONT></TD>
    <TD vAlign=bottom width="17">&nbsp;</TD>
    <TD vAlign=bottom width="55" align="right"><FONT size="2">(325</FONT></TD>
    <TD vAlign=bottom width="20"><FONT size="2">)</FONT></TD>
    <TD vAlign=bottom width="17">&nbsp;</TD>
    <TD vAlign=bottom width="58" align="right"><FONT size="2">(362</FONT></TD>
    <TD vAlign=bottom width="24"><FONT size="2">)</FONT></TD>
    <TD vAlign=bottom width="18">&nbsp;</TD>
    <TD vAlign=bottom width="56" align="right"><FONT size="2">(7</FONT></TD>
    <TD vAlign=bottom width="16"><FONT size="2">)</FONT></TD>
    <TD vAlign=bottom width="21">&nbsp;</TD>
    <TD vAlign=bottom align=right width="53">
    <FONT size="2">(8</FONT></TD>
    <TD vAlign=bottom align=left width="10">
    <FONT size="2">)</FONT></TD>
    </TR>
  <tr>
    <TD>
      <FONT size="2">Amortization of Unrecognized</FONT></TD>
    <TD vAlign=bottom>&nbsp;</TD>
    <TD vAlign=bottom>
      &nbsp;</TD>
    <TD vAlign=bottom align="right">
      &nbsp;</TD>
    <TD vAlign=bottom>&nbsp;</TD>
    <TD vAlign=bottom>&nbsp;</TD>
    <TD vAlign=bottom align="right">&nbsp;</TD>
    <TD vAlign=bottom>&nbsp;</TD>
    <TD vAlign=bottom>&nbsp;</TD>
    <TD vAlign=bottom align="right">&nbsp;</TD>
    <TD vAlign=bottom>&nbsp;</TD>
    <TD vAlign=bottom>&nbsp;</TD>
    <TD vAlign=bottom align="right">&nbsp;</TD>
    <TD vAlign=bottom>&nbsp;</TD>
    <TD vAlign=bottom>&nbsp;</TD>
    <TD vAlign=bottom align="right">&nbsp;</TD>
    <TD vAlign=bottom>&nbsp;</TD>
    <TD vAlign=bottom>
      &nbsp;</TD>
    <TD vAlign=bottom align="right">
      &nbsp;</TD>
    <TD vAlign=bottom align="left">
      &nbsp;</TD>
    </tr>
  <tr>
    <TD bgcolor="#CCEEFF">
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT size="2">Prior
      Service Cost</FONT></P></TD>
    <TD vAlign=bottom bgcolor="#CCEEFF"><FONT size=2>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom bgcolor="#CCEEFF">
      &nbsp;</TD>
    <TD vAlign=bottom bgcolor="#CCEEFF" align="right">
      <FONT size="2">25</FONT></TD>
    <TD vAlign=bottom bgcolor="#CCEEFF"><FONT size=2>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom bgcolor="#CCEEFF">&nbsp;</TD>
    <TD vAlign=bottom bgcolor="#CCEEFF" align="right"><FONT size="2">25</FONT></TD>
    <TD vAlign=bottom bgcolor="#CCEEFF">&nbsp;</TD>
    <TD vAlign=bottom bgcolor="#CCEEFF">&nbsp;</TD>
    <TD vAlign=bottom bgcolor="#CCEEFF" align="right"><FONT size="2">145</FONT></TD>
    <TD vAlign=bottom bgcolor="#CCEEFF">&nbsp;</TD>
    <TD vAlign=bottom bgcolor="#CCEEFF">&nbsp;</TD>
    <TD vAlign=bottom bgcolor="#CCEEFF" align="right"><FONT size="2">172</FONT></TD>
    <TD vAlign=bottom bgcolor="#CCEEFF">&nbsp;</TD>
    <TD vAlign=bottom bgcolor="#CCEEFF">&nbsp;</TD>
    <TD vAlign=bottom bgcolor="#CCEEFF" align="right"><FONT size="2">(4</FONT></TD>
    <TD vAlign=bottom bgcolor="#CCEEFF"><FONT size="2">)</FONT></TD>
    <TD vAlign=bottom bgcolor="#CCEEFF">
      &nbsp;</TD>
    <TD vAlign=bottom bgcolor="#CCEEFF" align="right">
      <FONT size="2">(4</FONT></TD>
    <TD vAlign=bottom bgcolor="#CCEEFF" align="left">
      <FONT size="2">)</FONT></TD>
    </tr>
  <TR>
<font size="2" style="font-size: 10pt" face="Times New Roman">
    <TD><FONT size="2">Amortization of Unrecognized</FONT></TD>
<font size="2">
    <TD vAlign=bottom><FONT size=2>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      &nbsp;</TD>
    <TD vAlign=bottom align="right">
      &nbsp;</TD>
    <TD vAlign=bottom>&nbsp;</TD>
    <TD vAlign=bottom>&nbsp;</TD>
    <TD vAlign=bottom align="right">&nbsp;</TD>
    <TD vAlign=bottom>&nbsp;</TD>
    <TD vAlign=bottom>&nbsp;</TD>
    <TD vAlign=bottom align="right">&nbsp;</TD>
    <TD vAlign=bottom>&nbsp;</TD>
    <TD vAlign=bottom>&nbsp;</TD>
    <TD vAlign=bottom align="right">&nbsp;</TD>
    <TD vAlign=bottom>&nbsp;</TD>
    <TD vAlign=bottom>&nbsp;</TD>
    <TD vAlign=bottom align="right">&nbsp;</TD>
    <TD vAlign=bottom>&nbsp;</TD>
    <TD vAlign=bottom>
      &nbsp;</TD>
    <TD vAlign=bottom align="right">
      &nbsp;</TD>
</font>
</font>
    <TD vAlign=bottom align="left">
      &nbsp;</TD>
  </TR>
  <tr>
    <TD width="318" bgcolor="#CCEEFF">
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em">
      <FONT size="2">Net Transition Obligation</FONT></P></TD>
    <TD vAlign=bottom width="21" bgcolor="#CCEEFF"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="19" bgcolor="#CCEEFF">&nbsp;</TD>
    <TD vAlign=bottom align=right width="49" bgcolor="#CCEEFF">
    <FONT size="2">-</FONT></TD>
    <TD vAlign=bottom width="20" bgcolor="#CCEEFF">&nbsp;</TD>
    <TD vAlign=bottom width="17" bgcolor="#CCEEFF">&nbsp;</TD>
    <TD vAlign=bottom width="54" bgcolor="#CCEEFF" align="right"><FONT size="2">
    -</FONT></TD>
    <TD vAlign=bottom width="25" bgcolor="#CCEEFF">&nbsp;</TD>
    <TD vAlign=bottom width="17" bgcolor="#CCEEFF">&nbsp;</TD>
    <TD vAlign=bottom width="55" bgcolor="#CCEEFF" align="right"><FONT size="2">
    -</FONT></TD>
    <TD vAlign=bottom width="20" bgcolor="#CCEEFF">&nbsp;</TD>
    <TD vAlign=bottom width="17" bgcolor="#CCEEFF">&nbsp;</TD>
    <TD vAlign=bottom width="58" bgcolor="#CCEEFF" align="right"><FONT size="2">
    -</FONT></TD>
    <TD vAlign=bottom width="24" bgcolor="#CCEEFF">&nbsp;</TD>
    <TD vAlign=bottom width="18" bgcolor="#CCEEFF">&nbsp;</TD>
    <TD vAlign=bottom width="56" bgcolor="#CCEEFF" align="right"><FONT size="2">
    12</FONT></TD>
    <TD vAlign=bottom width="16" bgcolor="#CCEEFF">&nbsp;</TD>
    <TD vAlign=bottom width="21" bgcolor="#CCEEFF">&nbsp;</TD>
    <TD vAlign=bottom align=right width="53" bgcolor="#CCEEFF">
    <FONT size="2">18</FONT></TD>
    <TD vAlign=bottom align=left width="10" bgcolor="#CCEEFF">
    &nbsp;</TD>
  </tr>
  <TR>
<font size="2" style="font-size: 10pt" face="Times New Roman">
    <TD>
      <FONT size="2" style="font-size: 10pt" face="Times New Roman">Amortization of Accumulated Loss</FONT></TD>
<font size="2">
    <TD vAlign=bottom>&nbsp;</TD>
    <TD vAlign=bottom>
      &nbsp;</TD>
    <TD vAlign=bottom align="right">
      <FONT size="2">1,235</FONT></TD>
    <TD vAlign=bottom>&nbsp;</TD>
    <TD vAlign=bottom>&nbsp;</TD>
    <TD vAlign=bottom align="right"><FONT size="2">1,239</FONT></TD>
    <TD vAlign=bottom>&nbsp;</TD>
    <TD vAlign=bottom>&nbsp;</TD>
    <TD vAlign=bottom align="right"><FONT size="2">114</FONT></TD>
    <TD vAlign=bottom>&nbsp;</TD>
    <TD vAlign=bottom>&nbsp;</TD>
    <TD vAlign=bottom align="right"><FONT size="2">20</FONT></TD>
    <TD vAlign=bottom>&nbsp;</TD>
    <TD vAlign=bottom>&nbsp;</TD>
    <TD vAlign=bottom align="right"><FONT size="2">10</FONT></TD>
    <TD vAlign=bottom>&nbsp;</TD>
    <TD vAlign=bottom>
      &nbsp;</TD>
    <TD vAlign=bottom align="right">
      <FONT size="2">15</FONT></TD>
    <TD vAlign=bottom align="left">
      &nbsp;</TD>
</font>
</font>
  </TR>
  <TR>
<font size="2" style="font-size: 10pt" face="Times New Roman">
    <TD width="318" bgcolor="#CCEEFF">
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em">
      <FONT size="2">Settlement</FONT></P></TD>
<font size="2">
    <TD vAlign=bottom width="21" bgcolor="#CCEEFF"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="19" bgcolor="#CCEEFF">&nbsp;</TD>
    <TD vAlign=bottom align=right width="49" bgcolor="#CCEEFF">
    <FONT size="2">-</FONT></TD>
    <TD vAlign=bottom width="20" bgcolor="#CCEEFF">&nbsp;</TD>
    <TD vAlign=bottom width="17" bgcolor="#CCEEFF">&nbsp;</TD>
    <TD vAlign=bottom width="54" bgcolor="#CCEEFF" align="right"><FONT size="2">
    -</FONT></TD>
    <TD vAlign=bottom width="25" bgcolor="#CCEEFF">&nbsp;</TD>
    <TD vAlign=bottom width="17" bgcolor="#CCEEFF">&nbsp;</TD>
    <TD vAlign=bottom width="55" bgcolor="#CCEEFF" align="right"><FONT size="2">
    2,275</FONT></TD>
    <TD vAlign=bottom width="20" bgcolor="#CCEEFF">&nbsp;</TD>
    <TD vAlign=bottom width="17" bgcolor="#CCEEFF">&nbsp;</TD>
    <TD vAlign=bottom width="58" bgcolor="#CCEEFF" align="right"><FONT size="2">
    -</FONT></TD>
    <TD vAlign=bottom width="24" bgcolor="#CCEEFF">&nbsp;</TD>
    <TD vAlign=bottom width="18" bgcolor="#CCEEFF">&nbsp;</TD>
    <TD vAlign=bottom width="56" bgcolor="#CCEEFF" align="right"><FONT size="2">
    -</FONT></TD>
    <TD vAlign=bottom width="16" bgcolor="#CCEEFF">&nbsp;</TD>
    <TD vAlign=bottom width="21" bgcolor="#CCEEFF">&nbsp;</TD>
    <TD vAlign=bottom align=right width="53" bgcolor="#CCEEFF">
    <FONT size="2">-</FONT></TD>
    <TD vAlign=bottom align=left width="10" bgcolor="#CCEEFF">
    &nbsp;</TD>
</font>
</font>
  </TR>
  <TR>
<font size="2" style="font-size: 10pt" face="Times New Roman">
    <TD><FONT size="2">Curtailment</FONT></TD>
<font size="2">
    <TD vAlign=bottom><FONT size=2>&nbsp;&nbsp;</FONT></TD>
<font size="2" style="font-size: 10pt" face="Times New Roman">
    <TD vAlign=bottom style="border-bottom: 1px solid #000000">
      &nbsp;</TD>
<font size="2">
    <TD vAlign=bottom style="border-bottom: 1px solid #000000" align="right">
      <FONT size="2">-</FONT></TD>
    <TD vAlign=bottom>&nbsp;</TD>
    <TD vAlign=bottom style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD vAlign=bottom align="right" style="border-bottom: 1px solid #000000">
    <FONT size="2">-</FONT></TD>
    <TD vAlign=bottom>&nbsp;</TD>
    <TD vAlign=bottom style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD vAlign=bottom align="right" style="border-bottom: 1px solid #000000">
    <FONT size="2">(1,918</FONT></TD>
    <TD vAlign=bottom><FONT size="2">)</FONT></TD>
    <TD vAlign=bottom style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD vAlign=bottom align="right" style="border-bottom: 1px solid #000000">
    <FONT size="2">-</FONT></TD>
    <TD vAlign=bottom>&nbsp;</TD>
    <TD vAlign=bottom style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD vAlign=bottom align="right" style="border-bottom: 1px solid #000000">
    <FONT size="2">-</FONT></TD>
    <TD vAlign=bottom>&nbsp;</TD>
    <TD vAlign=bottom style="border-bottom: 1px solid #000000">
      &nbsp;</TD>
    <TD vAlign=bottom align="right" style="border-bottom: 1px solid #000000">
      <FONT size="2">-</FONT></TD>
</font>
</font>
</font>
</font>
    <TD vAlign=bottom align="left">
      &nbsp;</TD>
  </TR>
  <tr>
<font size="2" style="font-size: 10pt" face="Times New Roman">
    <TD bgcolor="#CCEEFF">&nbsp;</TD>
</font>
    <TD vAlign=bottom bgcolor="#CCEEFF">&nbsp;</TD>
<font size="2" style="font-size: 10pt" face="Times New Roman">
    <TD vAlign=bottom bgcolor="#CCEEFF">
      &nbsp;</TD>
<font size="2">
    <TD vAlign=bottom bgcolor="#CCEEFF" align="right">
      &nbsp;</TD>
</font>
</font>
    <TD vAlign=bottom bgcolor="#CCEEFF"></TD>
<font size="2" style="font-size: 10pt" face="Times New Roman">
    <TD vAlign=bottom bgcolor="#CCEEFF">
      &nbsp;</TD>
<font size="2">
    <TD vAlign=bottom bgcolor="#CCEEFF" align="right">
      &nbsp;</TD>
</font>
</font>
    <TD vAlign=bottom bgcolor="#CCEEFF">&nbsp;</TD>
<font size="2" style="font-size: 10pt" face="Times New Roman">
    <TD vAlign=bottom bgcolor="#CCEEFF">
      &nbsp;</TD>
<font size="2">
    <TD vAlign=bottom bgcolor="#CCEEFF" align="right">
      &nbsp;</TD>
</font>
</font>
    <TD vAlign=bottom bgcolor="#CCEEFF">&nbsp;</TD>
<font size="2" style="font-size: 10pt" face="Times New Roman">
    <TD vAlign=bottom bgcolor="#CCEEFF">
      &nbsp;</TD>
<font size="2">
    <TD vAlign=bottom bgcolor="#CCEEFF" align="right">
      &nbsp;</TD>
</font>
</font>
    <TD vAlign=bottom bgcolor="#CCEEFF">&nbsp;</TD>
<font size="2" style="font-size: 10pt" face="Times New Roman">
    <TD vAlign=bottom bgcolor="#CCEEFF">
      &nbsp;</TD>
<font size="2">
    <TD vAlign=bottom bgcolor="#CCEEFF" align="right">
      &nbsp;</TD>
</font>
</font>
    <TD vAlign=bottom bgcolor="#CCEEFF">&nbsp;</TD>
<font size="2" style="font-size: 10pt" face="Times New Roman">
    <TD vAlign=bottom bgcolor="#CCEEFF">
      &nbsp;</TD>
<font size="2">
    <TD vAlign=bottom bgcolor="#CCEEFF">
      &nbsp;</TD>
</font>
</font>
    <TD vAlign=bottom bgcolor="#CCEEFF" align="left">
      &nbsp;</TD>
  </tr>
  <TR>
<font size="2" style="font-size: 10pt" face="Times New Roman">
    <TD width="318">
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em">
      <FONT size="2">Net Periodic Cost</FONT></P></TD>
<font size="2">
    <TD vAlign=bottom width="21"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="19" style="border-bottom: 3px double #000000"><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="49"
style="border-bottom: 3px double #000000">
    <FONT size="2">1,609</FONT></TD>
    <TD vAlign=bottom width="20">&nbsp;</TD>
    <TD vAlign=bottom width="17" style="border-bottom: 3px double #000000"><FONT size="2">$</FONT></TD>
    <TD vAlign=bottom width="54" align="right"
style="border-bottom: 3px double #000000"><FONT size="2">1,763</FONT></TD>
    <TD vAlign=bottom width="25">&nbsp;</TD>
    <TD vAlign=bottom width="17" style="border-bottom: 3px double #000000"><FONT size="2">$</FONT></TD>
    <TD vAlign=bottom width="55" align="right"
style="border-bottom: 3px double #000000"><FONT size="2">1,049</FONT></TD>
    <TD vAlign=bottom width="20">&nbsp;</TD>
    <TD vAlign=bottom width="17" style="border-bottom: 3px double #000000"><FONT size="2">$</FONT></TD>
    <TD vAlign=bottom width="58" align="right"
style="border-bottom: 3px double #000000"><FONT size="2">663</FONT></TD>
    <TD vAlign=bottom width="24">&nbsp;</TD>
    <TD vAlign=bottom width="18" style="border-bottom: 3px double #000000"><FONT size="2">$</FONT></TD>
    <TD vAlign=bottom width="56" align="right"
style="border-bottom: 3px double #000000"><FONT size="2">76</FONT></TD>
    <TD vAlign=bottom width="16">&nbsp;</TD>
    <TD vAlign=bottom width="21" style="border-bottom: 3px double #000000"><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="53"
style="border-bottom: 3px double #000000">
    <FONT size="2">102</FONT></TD>
</font>
</font>
    <TD vAlign=bottom align=left width="10">
    &nbsp;</TD>
  </TR>
  </TABLE>
</DIV>
</font>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font size="2"
style="font-size: 10pt" face="Times New Roman">The
Company's policy is to make pension plan contributions to the extent such
contributions are mandatory, actuarially determined and tax deductible.&nbsp;
The Company expects to contribute $16,627 to the U.S. pension
plan and $1,260 to the non-U.S. pension plan in 2006.</FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>

<P style="PAGE-BREAK-BEFORE: always">
<HR align=center width="100%" color=#999999 SIZE=3>

<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2><B>AMERON INTERNATIONAL CORPORATION
AND SUBSIDIARIES</B></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px"><FONT size=1></FONT>&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align="center">
&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">
<FONT face="Times New Roman"
size=2><B>Item 2.&nbsp; Management's Discussion and Analysis of
Financial Condition and Results of Operations</B></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px">&nbsp;</P>
<font style="FONT-SIZE: 10pt" face="Times New Roman" size="2">


  <p style="margin-top: 0; margin-bottom: 0"><b><font size="2">INTRODUCTION<br>
  <br>
  </font></b>Ameron International Corporation
  (&quot;Ameron&quot; or the &quot;<font size="2">Company&quot;) is a multinational manufacturer of
  highly-engineered products and materials for the chemical, industrial, energy,
  transportation and infrastructure markets.&nbsp; Ameron is a leading producer of water transmission lines;
  high-performance coatings and finishes for the protection of metals and
  structures; fiberglass-composite pipe for transporting oil, chemicals and
  corrosive fluids and specialized materials and products used in infrastructure
  projects.&nbsp; The Company operates
  businesses in North America, South America, Europe, Australasia and Asia.&nbsp;
  The Company has four operating segments.&nbsp; The Performance Coatings &amp; Finishes Group manufactures and markets
  high-performance industrial and marine coatings.&nbsp; The Fiberglass-Composite Pipe Group manufactures and markets
  filament-wound and molded composite fiberglass pipe, tubing, fittings and well
  screens.&nbsp; The Water Transmission
  Group manufactures and supplies concrete and steel pressure pipe, concrete
  non-pressure pipe, protective linings for pipe, and fabricated steel products.&nbsp; The Infrastructure Products Group manufactures and sells ready-mix
  concrete, sand and aggregates, concrete pipe and culverts, and concrete and
  steel lighting and traffic poles.&nbsp; The
  markets served by the Performance Coatings &amp; Finishes Group and the
  Fiberglass-Composite Pipe Group are worldwide in scope.&nbsp; The Water Transmission Group serves primarily the western U.S.&nbsp; The Infrastructure Products Group's quarry and ready-mix
  business operates exclusively in Hawaii, and poles are sold throughout the
  U.S.&nbsp; Ameron also participates in
  several joint-venture companies, directly in the U.S. and Saudi Arabia, and
  indirectly in Egypt.</font></p>
<p style="margin-top: 0; margin-bottom: 0">&nbsp;</p>
  <p style="margin-top: 0; margin-bottom: 0">Management's Discussion and Analysis should
  be read in conjunction with the same discussion included in the Company's 2005 Annual Report,
  <FONT size="2">under Part II, Item 7</FONT>.&nbsp; Reference should
  also be made to the
  financial statements included in this Form 10-Q for comparative consolidated
  balance sheets and statements of income and cash flows.</p>
<p><b><font size="2">CRITICAL ACCOUNTING POLICIES AND ESTIMATES</font></b></p>
<p style="margin-top: 0; margin-bottom: 0"><font size="2">Management's Discussion and Analysis of Liquidity and Capital Resources and
Results of Operations are based upon the Company's consolidated
financial statements, which have been prepared in accordance with accounting
principles generally accepted in the United States of America.&nbsp; The preparation of these financial
statements requires management to make certain estimates and assumptions that
affect the reported amounts of assets, liabilities, revenues and expenses, and
related disclosure of contingent assets and liabilities during the reporting
periods.&nbsp; Management bases its estimates on historical experience and on
various other assumptions that are believed to be reasonable under the
circumstances, the results of which form the basis for making judgments about
the carrying values of assets and liabilities that are not readily apparent from
other sources.&nbsp; Actual results could differ from those</font> <font size="2">estimates.</font><p
style="margin-top: 0; margin-bottom: 0">&nbsp;<p
style="margin-top: 0; margin-bottom: 0">
A summary of the<font size="2"> Company's significant accounting policies is
provided in Note (1) of
the Notes to Consolidated Financial Statements, in the Company's 2005 Annual
Report.&nbsp; In addition, Management believes the following accounting policies affect the
more significant estimates used in preparing the consolidated financial
statements.</font></p>
<p style="margin-top: 0; margin-bottom: 0">
&nbsp;</p>
<p style="margin-top: 0; margin-bottom: 0"><font size="2">The consolidated financial statements include the accounts of
Ameron International Corporation and all wholly-owned subsidiaries.&nbsp; All material intercompany accounts and
transactions have been eliminated.&nbsp; The functional currencies for the
Company's foreign operations are the applicable local currencies.&nbsp; The
translation from the applicable foreign currencies to U.S. dollars is performed
for balance sheet accounts using current exchange rates in effect at the balance
sheet date and for revenue and expense accounts using a weighted-average
exchange rate during the period.&nbsp; The resulting translation adjustments are
recorded in accumulated other comprehensive income/(loss).&nbsp; The Company advances
funds to certain foreign subsidiaries that are not expected to be repaid in the
foreseeable future.&nbsp; Translation adjustments arising from these advances
are also included in accumulated other comprehensive income/(loss).&nbsp; The timing of
repayments of intercompany advances could materially impact the
Company's consolidated financial statements.&nbsp; Additionally,
earnings of foreign subsidiaries are often reinvested outside the U.S.&nbsp; Unforeseen
repatriation of such earnings could result in significant unrecognized U.S. tax liability.&nbsp;
Gains or losses
resulting from foreign currency transactions are included in other income, net.</font></p>
<p style="margin-top: 0; margin-bottom: 0">&nbsp;</p>
<p style="margin-top: 0; margin-bottom: 0"><font size="2">Revenue for the
Performance Coatings &amp; Finishes, Fiberglass-Composite Pipe, and Infrastructure
Products segments is recognized when risk of ownership and title pass, primarily
at the time goods are shipped, provided that an agreement exists between the
customer and the Company, the price is fixed or determinable and collection is
reasonably assured.&nbsp; In limited circumstances within the Performance
Coatings &amp; Finishes Group, revenue recognition associated with shipment of
coatings for marine dry dockings is delayed until product returns are processed.&nbsp;
Revenue is recognized for the Water Transmission Group primarily under the
percentage-of-completion method, typically based on completed units of
production, since products are manufactured under enforceable and binding
construction contracts, typically are designed for specific applications, are
not interchangeable between projects, and are not manufactured for stock.&nbsp;
Revenue for the period is estimated by multiplying total estimated contract
revenue by the percentage of completion and then subtracting the amount of
previously recognized revenue.&nbsp; Cost of earned revenue is computed by
multiplying estimated contract completion cost by the percentage-of-completion
of the contract and then subtracting the amount of previously recognized cost.&nbsp;
In some cases, if products are manufactured for stock or are not related to
specific construction contracts, revenue is recognized under the same criteria
used by the other three segments.&nbsp;&nbsp;Revenue under the percentage-of-completion
method is subject to a greater level of estimation, which affects the timing of
revenue recognition, costs and profits.&nbsp; Estimates are reviewed on a </p></font>

<P style="PAGE-BREAK-BEFORE: always">
<HR align=center width="100%" color=#999999 SIZE=3>

<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2><B>AMERON INTERNATIONAL CORPORATION
AND SUBSIDIARIES</B></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px"><FONT size=1></FONT>&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2><B>MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued)</B></FONT></P>

<p style="margin-top: 0; margin-bottom: 0">&nbsp;</p>
<p style="margin-top: 0; margin-bottom: 0">&nbsp;</p>
<p style="margin-top: 0; margin-bottom: 0">
<font size="2" style="font-size: 10pt" face="Times New Roman">consistent basis
and are adjusted periodically to reflect current expectations.&nbsp;
Costs attributable to unpriced change orders are treated as costs of contract
performance in the period, and contract revenue is recognized if recovery is
probable.&nbsp; Disputed or unapproved change orders
are treated as claims.&nbsp; Recognition of amounts of additional contract
revenue relating to claims occurs when amounts have been received or awarded
with recognition based on the percentage of completion methodolgy.</font></p>
<p style="margin-top: 0; margin-bottom: 0">&nbsp;</p>
<p style="margin-top: 0; margin-bottom: 0"><font size="2">The
Company expenses environmental clean-up costs related to existing conditions
resulting from past or current operations on a site-by-site basis.&nbsp;
Liabilities and costs associated with these matters, as well as other
pending litigation and asserted claims arising in the ordinary course of
business, require estimates of future costs and judgments based on the knowledge
and experience of management and its legal counsel.&nbsp;
When the Company's exposures can be reasonably estimated
and are probable, liabilities and expenses are recorded.&nbsp;
The ultimate resolution of any such exposure to the Company may differ
due to subsequent developments.</font></p>
<p style="margin-top: 0; margin-bottom: 0">&nbsp;</p>
<p style="margin-top: 0; margin-bottom: 0"><font size="2">Inventories are stated at the lower of cost or market with cost determined
principally on the first-in, first-out (&quot;FIFO&quot;) method.&nbsp; Certain steel inventories
used by the Water Transmission Group are valued using the last-in, first-out (&quot;LIFO&quot;) method.&nbsp;
Significant changes in steel levels or costs could materially impact the
Company's financial statements.&nbsp; Reserves are established for excess, obsolete and rework inventories based on
age, estimates of salability and forecasted future demand.&nbsp; Management records an allowance for doubtful accounts receivable based on
historical experience and expected trends.&nbsp; A significant reduction in
demand or a significant worsening of customer credit quality could materially
impact the Company's consolidated financial statements.</font></p>
<p style="margin-top: 0; margin-bottom: 0">&nbsp;</p>
<p style="margin-top: 0; margin-bottom: 0"><font size="2">Investments in unconsolidated joint ventures or affiliates (&quot;joint ventures&quot;) over
which the Company has significant influence are accounted for under the equity
method of accounting, whereby the investment is carried at the cost of
acquisition, plus the Company's equity in undistributed earnings or losses
since acquisition.&nbsp; Investments in joint ventures over which the Company
does not have the ability to exert significant influence over the investees' operating and financing activities are accounted for under the cost method of
accounting.&nbsp; The Company's investment in TAMCO, a steel mini-mill in
California, is accounted for under the
equity method.&nbsp; Investments in Ameron Saudi Arabia, Ltd., Bondstrand, Ltd.
and Oasis-Ameron, Ltd. are accounted for under the cost method due to
management's current assessment of the Company's&nbsp;influence over these
joint ventures.</font></p>
<p style="margin-top: 0; margin-bottom: 0">&nbsp;</p>
<p style="margin-top: 0; margin-bottom: 0"><font size="2" style="font-size: 10pt" face="Times New Roman">Property, plant
and equipment is stated on the basis of cost and depreciated principally using a
straight-line method based on the estimated useful lives of the related assets,
generally three to 40 years.</font><font size="2">&nbsp; The Company reviews long-lived assets for
impairment whenever events or changes in circumstances indicate that the
carrying value of such assets may not be recoverable.&nbsp; If the estimated
future, undiscounted cash flows from the use of an asset are less than its
carrying value, a write-down is recorded to reduce the related assets to
estimated fair value.</font>&nbsp;&nbsp;<font size="2">The Company also reviews intangible assets for
impairment at least annually, based on the estimated future, discounted cash
flows associated with such assets.&nbsp; Actual cash flows may differ significantly
from estimated cash flows.&nbsp; Additionally, current estimates of future cash flows
may differ from subsequent estimates of future cash flows.&nbsp; Changes in estimated
or actual cash flows could materially impact the Company's consolidated
financial statements.</font></p>
<p style="margin-top: 0; margin-bottom: 0">&nbsp;</p>
<p style="margin-top: 0; margin-bottom: 0"><font size="2">The Company is self insured for a portion of the losses and liabilities primarily associated
with workers' compensation claims and general, product and vehicle
liability.&nbsp; Losses are accrued based upon the Company's estimates of the
aggregate liability for claims incurred using historical experience and certain actuarial assumptions
followed in the insurance industry.&nbsp; The estimate of self-insurance
liability includes an estimate of incurred but not reported claims, based on
data compiled from historical experience.&nbsp; Actual experience could differ significantly
from these estimates and could materially impact the Company's
consolidated financial statements.&nbsp; The Company purchases insurance to cover losses
in excess of the self-insured limits.&nbsp; Currently, the Company's self-insurance
limits are
$1.0 million per workers' compensation claim, $.1 million per general
or product liability claim, and $.25 million per vehicle liability claim.</font></p>
<p style="margin-top: 0; margin-bottom: 0">&nbsp;</p>
<p style="margin-top: 0; margin-bottom: 0"><font size="2">The
Company follows the guidance of Statement of Financial Accounting Standards (&quot;SFAS&quot;)
No. 87, &quot;Employers' Accounting for Pensions,&quot; and SFAS No. 106,
&quot;Employers' Accounting for Postretirement Benefits Other Than
Pensions,&quot; when accounting for pension and other postretirement benefits.&nbsp;
Under these accounting standards, assumptions are made regarding the valuation
of benefit obligations and the performance of plan assets that are controlled
and invested by third-party fiduciaries.&nbsp; Delayed recognition of differences
between actual results and expected or estimated results is a guiding principle
of these standards.&nbsp; Such delayed recognition provides a gradual recognition of
benefit obligations and investment performance over the working lives of the
employees who benefit under the plans, based on various assumptions.&nbsp; Assumed
discount rates are used to calculate the present values of benefit payments which
are projected to be made in
the future, including projections of increases in employees' annual
compensation and health care costs.&nbsp; Management also projects the future return on invested assets based
principally on prior performance.&nbsp; These projected returns reduce the net benefit
costs the Company records in the current period.&nbsp; Actual results could vary
significantly from projected results, and such deviation could materially impact
the Company's consolidated financial statements.&nbsp; Management
consults with its actuaries when determining these assumptions.&nbsp; Unforecasted
program changes, including termination, freezing of benefits or acceleration of
benefits, could result in an immediate recognition of unrecognized benefit
obligations and such recognition could materially impact the Company's
consolidated financial statements.</font></p>
<p style="margin-top: 0; margin-bottom: 0">&nbsp;</p>
<p style="margin-top: 0; margin-bottom: 0"><font size="2">Management incentive compensation is accrued based on current estimates of
the Company's ability to achieve short-term and long-term performance targets.</font></p>

<P style="PAGE-BREAK-BEFORE: always">
<HR align=center width="100%" color=#999999 SIZE=3>

<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2><B>AMERON INTERNATIONAL CORPORATION
AND SUBSIDIARIES</B></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px"><FONT size=1></FONT>&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2><B>MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued)</B></FONT></P>
<p style="margin-top: 0; margin-bottom: 0">&nbsp;</p>
<p style="margin-top: 0; margin-bottom: 0">&nbsp;</p>
<p style="margin-top: 0; margin-bottom: 0"><font size="2">Deferred income tax assets and liabilities
are computed for differences between the financial statement and income tax
bases of assets and liabilities.&nbsp; Such deferred income tax asset and
liability computations are based on enacted tax laws and rates applicable to
periods in which the differences are expected to reverse.&nbsp; Valuation
allowances are established, when necessary, to reduce deferred income
tax assets to the amounts expected to be realized.&nbsp; Quarterly income taxes
are estimated based on the mix of income by jurisdiction forecasted for the full
fiscal year.&nbsp; The Company believes that it has adequately provided for
tax-related matters.&nbsp; The Company is subject to examination by taxing
authorities in various jurisdictions.&nbsp; Matters raised upon audit may
involve substantial amounts, and an adverse finding could have a material impact
on the Company's consolidated financial statements.</font></p>

<p><b>LIQUIDITY AND CAPITAL RESOURCES</b></p>


<p style="margin-top: 0; margin-bottom: 0">As of March 5, 2006, the Company's working capital totaled $224.6 million, an
increase of $8.5 million from working capital of $216.1 million as of November
30, 2005.&nbsp; The increase was related to seasonality and project timing.</p>
<p style="margin-top: 0; margin-bottom: 0">&nbsp;</p>
<p style="margin-top: 0; margin-bottom: 0">During the three months ended March 5, 2006, the Company generated $1.4 million
of cash from operating activities compared to $9.1 million generated in
the three months ended February 27, 2005.&nbsp; The lower operating cash flow in
2006 was primarily due to lower dividends from TAMCO, payment of wages and
benefits, and the timing of collections, offset by higher earnings.</p>
<p style="margin-top: 0; margin-bottom: 0">&nbsp;</p>
<p style="margin-top: 0; margin-bottom: 0">Net
cash used in investing activities totaled $4.2 million during the three months
ended March 5, 2006, compared to $4.7 million in the three months ended
February 27, 2005.&nbsp; In 2006, net cash used
in investing activities consisted of capital expenditures of $4.3 million.&nbsp;&nbsp; Capital expenditures were primarily for normal replacement and
upgrades of machinery and equipment and for a new fiberglass pipe plant in
Malaysia.&nbsp; During the year ending
November 30, 2006, the Company anticipates spending between
$25 and $35 million on capital expenditures.&nbsp; Capital expenditures are expected to be funded
by existing cash balances, cash generated from operations or additional
borrowings.</p>
<p style="margin-top: 0; margin-bottom: 0">&nbsp;</p>
<p style="margin-top: 0; margin-bottom: 0">Net cash provided by financing activities totaled
$1.6 million during the three months ended March 5, 2006, compared to
$3.9 million in the three months ended February 27, 2005.&nbsp; The net cash provided by
financing activities in 2006 consisted of net borrowings of $3.9 million,
common stock dividends of $1.7 million, and treasury stock purchases of $.7
million.&nbsp;
The issuance of common stock related to


  exercised stock options generated cash of $.2 million in 2006.</p>
<p style="margin-top: 0; margin-bottom: 0">&nbsp;</p>
<FONT size=2>
<p class=MsoNormal style="margin-top: 0; margin-bottom: 0">The Company utilizes a $100.0
million revolving credit facility with six banks (the &quot;Revolver&quot;).&nbsp;
Under the Revolver, the Company may, at its option, borrow at floating interest
rates based on specified margins over money market rates, at any time until
September 2010, when all borrowings under the Revolver must be repaid.</p>
<p class=MsoNormal style="margin-top: 0; margin-bottom: 0">&nbsp;</p>
<p class=MsoNormal style="margin-top: 0; margin-bottom: 0">The Company's lending agreements contain various restrictive
covenants, including the requirement to maintain specified amounts of net worth
and restrictions on cash dividends, borrowings, liens, investments,
guarantees, and financial covenants. The Company is required to maintain consolidated net worth of
$181.4 million plus 50% of net income and 75% of proceeds from any equity
issued after January 24, 2003. The Company's consolidated net worth exceeded
the covenant amount by $80.6 million as of March 5, 2006. The Company is required to maintain a consolidated leverage ratio of consolidated funded
indebtedness to earnings before interest, taxes, depreciation and amortization
(&quot;EBITDA&quot;) of no more than 2.5 times. As of March 5, 2006, the Company maintained a consolidated leverage ratio of
1.33 times EBITDA. Lending agreements
require that the Company maintain qualified consolidated tangible assets at
least equal to the outstanding secured funded indebtedness. As of March 5, 2006, qualifying tangible assets equaled
1.95 times funded indebtedness. Under
the most restrictive fixed charge coverage ratio, the sum of EBITDA and rental
expense less cash taxes must be at least 1.25 times the sum of interest expense,
rental expense, dividends and scheduled funded debt payments. As of March 5,
2006, the Company maintained such a fixed charge coverage ratio of
1.83 times.</p>
<p class=MsoNormal style="margin-top: 0; margin-bottom: 0">&nbsp;</p>
</font>
<p style="margin-top: 0; margin-bottom: 0">Cash
and cash equivalents at March 5, 2006 totaled $43.7 million, a decrease of
$1.0 million from November 30, 2005.&nbsp; At
March 5, 2006, the Company had
total debt outstanding of $100.6 million, compared to $95.4 million at November
30, 2005, and approximately $115.5 million in
unused committed and uncommitted credit lines available from foreign and
domestic banks.&nbsp; The Company's highest borrowing and the average borrowing
levels during 2006 were $100.8 million and $99.6 million, respectively.</p>
<p style="margin-top: 0; margin-bottom: 0">&nbsp;</p>
<p style="margin-top: 0; margin-bottom: 0">Management believes that cash flow from operations and current cash balances,
together with currently available lines of credit, will be sufficient to meet
operating requirements in 2006.&nbsp; The Company expects to contribute $16.6
million to the U.S. pension plan and $1.3 million for the non-U.S. pension plan
in 2006.&nbsp; The amount of contribution to the U.S. pension plan reflects
application of an Additional Funding Charge (&quot;AFC&quot;) requirement and the timing of
contributions.&nbsp; Assuming no change in pension assumptions or legislation,
it is anticipated that the AFC requirement would be in effect for another three
years.&nbsp; Thereafter, annual pension contributions would decline to under
$5.0 million.&nbsp; Cash available from operations could be affected by any
general economic


downturn or any decline or adverse changes in the Company's
business, such as a loss of customers or significant raw material price
increases.&nbsp; Management does not believe it likely that business or economic
conditions will worsen or that costs will increase sufficiently to impact
short-term liquidity.</p>

<P style="PAGE-BREAK-BEFORE: always">
<HR align=center width="100%" color=#999999 SIZE=3>

<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2><B>AMERON INTERNATIONAL CORPORATION
AND SUBSIDIARIES</B></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px"><FONT size=1></FONT>&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2><B>MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued)</B></FONT></P>

<p style="margin-top: 0; margin-bottom: 0">&nbsp;</p>
<p style="margin-top: 0; margin-bottom: 0">&nbsp;</p>
<p style="margin-top: 0; margin-bottom: 0">The Company's contractual obligations and commercial commitments at
March 5, 2006 are summarized as follows (in thousands):</p>
<p style="margin-top: 0; margin-bottom: 0">&nbsp;</p>
<font size="2" style="font-size: 10pt" face="Times New Roman">
<DIV align="center">
<TABLE style="BORDER-COLLAPSE: collapse" cellPadding=0
width="90%" border=0>

  <TR>
    <TD vAlign=bottom>&nbsp;</TD>
<font size="2">
    <TD vAlign=bottom><FONT size=2>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom colspan="15" align="center">
      <FONT size="1"><B>Payments Due by Period</B></FONT><HR noshade size="1"
      color="#000000" align="left"></TD>
</font>
  </TR>
  <TR>

    <TD vAlign=bottom width="381">
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT size="1"><B>
      Contractual Obligations</B></FONT></P>
      <HR noshade size="1" color="#000000" align="left" width="45%">
    </TD>
    <TD vAlign=bottom width="21"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom align=middle colSpan=2 width="77"><FONT size="1"><B>Total</B></FONT><BR>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom width="21"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom align=middle colSpan=2 width="76"><FONT size="1"><B>Less
    than 1 Year</B></FONT><HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom width="21">&nbsp;</TD>
    <TD vAlign=bottom align=middle colSpan=2 width="78"><FONT size="1"><B>1-3
    Years</B></FONT><HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom width="22">&nbsp;</TD>
    <TD vAlign=bottom align=middle colSpan=2 width="76"><FONT size="1"><B>3-5
    Years</B></FONT><HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom width="21">&nbsp;</TD>
    <TD vAlign=bottom align=middle colSpan=2 width="79"><FONT size="1"><B>After
    5 Years</B></FONT><HR noshade color="#000000" size="1">
    </TD>

    <TD vAlign=bottom align=left width="10">&nbsp;</TD>

  </TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top width="381">
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em">
      <FONT size="2">Long-Term Debt (a)</FONT></P></TD>
    <TD vAlign=bottom width="21"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="20"><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="58">
    <FONT size="2">100,642</FONT></TD>
    <TD vAlign=bottom width="21">&nbsp;</TD>
    <TD vAlign=bottom width="18"><FONT size="2">$</FONT></TD>
    <TD vAlign=bottom width="59" align="right"><FONT size="2">18,333</FONT></TD>
    <TD vAlign=bottom width="21">&nbsp;</TD>
    <TD vAlign=bottom width="17"><FONT size="2">$</FONT></TD>
    <TD vAlign=bottom width="62" align="right"><FONT size="2">26,293</FONT></TD>
    <TD vAlign=bottom width="22">&nbsp;</TD>
    <TD vAlign=bottom width="19"><FONT size="2">$</FONT></TD>
    <TD vAlign=bottom width="58" align="right"><FONT size="2">27,728</FONT></TD>
    <TD vAlign=bottom width="21">&nbsp;</TD>
    <TD vAlign=bottom width="20"><FONT size="2">$</FONT></TD>
    <TD vAlign=bottom width="61" align="right"><FONT size="2">28,288</FONT></TD>
    <TD vAlign=bottom width="10" align="left">&nbsp;</TD>
    </TR>
  <TR>
    <TD vAlign=top width="381" height="20">
      <FONT size="2">Interest Payments on Debt (b)</FONT></TD>
    <TD vAlign=bottom width="21" height="20"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="20" height="20">&nbsp;</TD>
    <TD vAlign=bottom align=right width="58" height="20">
    <FONT size="2">12,368</FONT></TD>
    <TD vAlign=bottom width="21" height="20">&nbsp;</TD>
    <TD vAlign=bottom width="18" height="20">&nbsp;</TD>
    <TD vAlign=bottom width="59" align="right" height="20"><FONT size="2">3,810</FONT></TD>
    <TD vAlign=bottom width="21" height="20">&nbsp;</TD>
    <TD vAlign=bottom width="17" height="20">&nbsp;</TD>
    <TD vAlign=bottom width="62" align="right" height="20"><FONT size="2">4,816</FONT></TD>
    <TD vAlign=bottom width="22" height="20">&nbsp;</TD>
    <TD vAlign=bottom width="19" height="20">&nbsp;</TD>
    <TD vAlign=bottom width="58" align="right" height="20"><FONT size="2">2,941</FONT></TD>
    <TD vAlign=bottom width="21" height="20">&nbsp;</TD>
    <TD vAlign=bottom width="20" height="20">&nbsp;</TD>
    <TD vAlign=bottom width="61" align="right" height="20"><FONT size="2">801</FONT></TD>
    <TD vAlign=bottom width="10" align="left" height="20">&nbsp;</TD>
  </TR>
  <tr>
    <TD vAlign=top width="381" height="20" bgcolor="#CCEEFF">
      <FONT size="2">Operating Leases</FONT></TD>
    <TD vAlign=bottom width="21" height="20" bgcolor="#CCEEFF"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="20" height="20" bgcolor="#CCEEFF">&nbsp;</TD>
    <TD vAlign=bottom align=right width="58" height="20" bgcolor="#CCEEFF">
    <FONT size="2">42,326</FONT></TD>
    <TD vAlign=bottom width="21" height="20" bgcolor="#CCEEFF">&nbsp;</TD>
    <TD vAlign=bottom width="18" height="20" bgcolor="#CCEEFF">&nbsp;</TD>
    <TD vAlign=bottom width="59" align="right" height="20" bgcolor="#CCEEFF"><FONT size="2">5,166</FONT></TD>
    <TD vAlign=bottom width="21" height="20" bgcolor="#CCEEFF">&nbsp;</TD>
    <TD vAlign=bottom width="17" height="20" bgcolor="#CCEEFF">&nbsp;</TD>
    <TD vAlign=bottom width="62" align="right" height="20" bgcolor="#CCEEFF"><FONT size="2">8,547</FONT></TD>
    <TD vAlign=bottom width="22" height="20" bgcolor="#CCEEFF">&nbsp;</TD>
    <TD vAlign=bottom width="19" height="20" bgcolor="#CCEEFF">&nbsp;</TD>
    <TD vAlign=bottom width="58" align="right" height="20" bgcolor="#CCEEFF"><FONT size="2">8,459</FONT></TD>
    <TD vAlign=bottom width="21" height="20" bgcolor="#CCEEFF">&nbsp;</TD>
    <TD vAlign=bottom width="20" height="20" bgcolor="#CCEEFF">&nbsp;</TD>
    <TD vAlign=bottom width="61" align="right" height="20" bgcolor="#CCEEFF"><FONT size="2">20,154</FONT></TD>
    <TD vAlign=bottom width="10" align="left" height="20" bgcolor="#CCEEFF">&nbsp;</TD>
  </tr>
  <TR bgColor=#cceeff>
    <TD vAlign=top width="381" bgcolor="#FFFFFF">
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em">
      <FONT size="2">Purchase Obligation (c)</FONT></P></TD>
    <TD vAlign=bottom width="21" bgcolor="#FFFFFF">&nbsp;</TD>
    <TD vAlign=bottom width="20" style="border-bottom: 1px solid #000000"
    bgcolor="#FFFFFF">&nbsp;</TD>
    <TD vAlign=bottom align=right width="58"
    style="border-bottom: 1px solid #000000" bgcolor="#FFFFFF">
    <FONT size="2">833</FONT></TD>
    <TD vAlign=bottom width="21" bgcolor="#FFFFFF"><FONT size=2>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="18" style="border-bottom: 1px solid #000000"
    bgcolor="#FFFFFF">&nbsp;</TD>
    <TD vAlign=bottom width="59" align="right"
    style="border-bottom: 1px solid #000000" bgcolor="#FFFFFF"><FONT size="2">833</FONT></TD>
    <TD vAlign=bottom width="21" bgcolor="#FFFFFF">&nbsp;</TD>
    <TD vAlign=bottom width="17" style="border-bottom: 1px solid #000000"
    bgcolor="#FFFFFF">&nbsp;</TD>
    <TD vAlign=bottom width="62" align="right"
    style="border-bottom: 1px solid #000000" bgcolor="#FFFFFF"><FONT size="2">-</FONT></TD>
    <TD vAlign=bottom width="22" bgcolor="#FFFFFF">&nbsp;</TD>
    <TD vAlign=bottom width="19" style="border-bottom: 1px solid #000000"
    bgcolor="#FFFFFF">&nbsp;</TD>
    <TD vAlign=bottom width="58" align="right"
    style="border-bottom: 1px solid #000000" bgcolor="#FFFFFF"><FONT size="2">-</FONT></TD>
    <TD vAlign=bottom width="21" bgcolor="#FFFFFF">&nbsp;</TD>
    <TD vAlign=bottom width="20" style="border-bottom: 1px solid #000000"
    bgcolor="#FFFFFF">&nbsp;</TD>
    <TD vAlign=bottom width="61" align="right"
    style="border-bottom: 1px solid #000000" bgcolor="#FFFFFF"><FONT size="2">-</FONT></TD>
    <TD vAlign=bottom width="10" align="left" bgcolor="#FFFFFF">&nbsp;</TD>
    </TR>
  <TR>
    <TD vAlign=top width="381" bgcolor="#CCEEFF">
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em">
      <FONT size="2">Total Contractual Obligations (d)</FONT></P></TD>
<font size="2">
    <TD vAlign=bottom width="21" bgcolor="#CCEEFF"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="20" style="border-bottom: 3px double #000000"
    bgcolor="#CCEEFF"><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="58"
    style="border-bottom: 3px double #000000" bgcolor="#CCEEFF">
    <FONT size="2">156,169</FONT></TD>
    <TD vAlign=bottom width="21" bgcolor="#CCEEFF">&nbsp;</TD>
    <TD vAlign=bottom width="18" style="border-bottom: 3px double #000000"
    bgcolor="#CCEEFF"><FONT size="2">$</FONT></TD>
    <TD vAlign=bottom width="59" align="right"
    style="border-bottom: 3px double #000000" bgcolor="#CCEEFF"><FONT size="2">
    28,142</FONT></TD>
    <TD vAlign=bottom width="21" bgcolor="#CCEEFF">&nbsp;</TD>
    <TD vAlign=bottom width="17" style="border-bottom: 3px double #000000"
    bgcolor="#CCEEFF"><FONT size="2">$</FONT></TD>
    <TD vAlign=bottom width="62" align="right"
    style="border-bottom: 3px double #000000" bgcolor="#CCEEFF"><FONT size="2">
    39,656</FONT></TD>
    <TD vAlign=bottom width="22" bgcolor="#CCEEFF">&nbsp;</TD>
    <TD vAlign=bottom width="19" style="border-bottom: 3px double #000000"
    bgcolor="#CCEEFF"><FONT size="2">$</FONT></TD>
    <TD vAlign=bottom width="58" align="right"
    style="border-bottom: 3px double #000000" bgcolor="#CCEEFF"><FONT size="2">
    39,128</FONT></TD>
    <TD vAlign=bottom width="21" bgcolor="#CCEEFF">&nbsp;</TD>
    <TD vAlign=bottom width="20" style="border-bottom: 3px double #000000"
    bgcolor="#CCEEFF"><FONT size="2">$</FONT></TD>
    <TD vAlign=bottom width="61" align="right"
    style="border-bottom: 3px double #000000" bgcolor="#CCEEFF"><FONT size="2">
    49,243</FONT></TD>
</font>
    <TD vAlign=bottom width="10" align="left" bgcolor="#CCEEFF">&nbsp;</TD>
  </TR>
  </TABLE>
</DIV>
</font>
<p>&nbsp;</p>

<font size="2" style="font-size: 10pt" face="Times New Roman">
<DIV align="center">
<TABLE style="BORDER-COLLAPSE: collapse" cellPadding=0
width="90%" border=0>

  <TR>
    <TD vAlign=bottom>&nbsp;</TD>
<font size="2">
    <TD vAlign=bottom><FONT size=2>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom colspan="15" align="center">
      <FONT size="1"><B>Commitments Expiring Per Period</B></FONT><HR noshade
      size="1" color="#000000" align="left"></TD>
</font>
  </TR>
  <TR>
    <TD vAlign=bottom width="379">
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT size="1"><B>
      Commercial Obligations</B></FONT></P>
      <HR noshade size="1" color="#000000" align="left" width="45%">
    </TD>
    <TD vAlign=bottom width="19"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom align=middle colSpan=2 width="76"><FONT size="1"><B>Total</B></FONT><BR>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom width="19"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom align=middle colSpan=2 width="80"><FONT size="1"><B>Less
    than 1 Year</B></FONT><HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom width="22">&nbsp;</TD>
    <TD vAlign=bottom align=middle colSpan=2 width="77"><FONT size="1"><B>1-3
    Years</B></FONT><HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom width="22">&nbsp;</TD>
    <TD vAlign=bottom align=middle colSpan=2 width="77"><FONT size="1"><B>3-5
    Years</B></FONT><HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom width="21">&nbsp;</TD>
    <TD vAlign=bottom align=middle colSpan=2 width="81"><FONT size="1"><B>After
    5 Years</B></FONT><HR noshade color="#000000" size="1">
    </TD>

    <TD vAlign=bottom align=left width="9">&nbsp;</TD>

  </TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top width="379">
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em">
      <FONT size="2">Standby Letters of Credit (e)</FONT></P></TD>
    <TD vAlign=bottom width="19"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="22" style="border-bottom: 1px solid #000000"><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="55"
    style="border-bottom: 1px solid #000000">
    <FONT size="2">2,012</FONT></TD>
    <TD vAlign=bottom width="19">&nbsp;</TD>
    <TD vAlign=bottom width="21" style="border-bottom: 1px solid #000000"><FONT size="2">$</FONT></TD>
    <TD vAlign=bottom width="60" align="right"
    style="border-bottom: 1px solid #000000"><FONT size="2">1,912</FONT></TD>
    <TD vAlign=bottom width="22">&nbsp;</TD>
    <TD vAlign=bottom width="15" style="border-bottom: 1px solid #000000"><FONT size="2">$</FONT></TD>
    <TD vAlign=bottom width="63" align="right"
    style="border-bottom: 1px solid #000000"><FONT size="2">100</FONT></TD>
    <TD vAlign=bottom width="22">&nbsp;</TD>
    <TD vAlign=bottom width="19" style="border-bottom: 1px solid #000000"><FONT size="2">$</FONT></TD>
    <TD vAlign=bottom width="59" align="right"
    style="border-bottom: 1px solid #000000"><FONT size="2">-</FONT></TD>
    <TD vAlign=bottom width="21">&nbsp;</TD>
    <TD vAlign=bottom width="22" style="border-bottom: 1px solid #000000"><FONT size="2">$</FONT></TD>
    <TD vAlign=bottom width="61" align="right"
    style="border-bottom: 1px solid #000000"><FONT size="2">-</FONT></TD>
    <TD vAlign=bottom width="9" align="left">&nbsp;</TD>
    </TR>
  <TR>
    <TD vAlign=top width="379">
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em">
      <FONT size="2">Total Commercial Commitments (d)</FONT></P></TD>
<font size="2">
    <TD vAlign=bottom width="19"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom width="22"
    style="border-bottom: 3px double #000000"><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="55"
    style="border-bottom: 3px double #000000">
    <FONT size="2">2,012</FONT></TD>
    <TD vAlign=bottom width="19">&nbsp;</TD>
    <TD vAlign=bottom width="21"
    style="border-bottom: 3px double #000000"><FONT size="2">$</FONT></TD>
    <TD vAlign=bottom width="60" align="right"
    style="border-bottom: 3px double #000000"><FONT size="2">1,912</FONT></TD>
    <TD vAlign=bottom width="22">&nbsp;</TD>
    <TD vAlign=bottom width="15"
    style="border-bottom: 3px double #000000"><FONT size="2">$</FONT></TD>
    <TD vAlign=bottom width="63" align="right"
    style="border-bottom: 3px double #000000"><FONT size="2">100</FONT></TD>
    <TD vAlign=bottom width="22">&nbsp;</TD>
    <TD vAlign=bottom width="19"
    style="border-bottom: 3px double #000000"><FONT size="2">$</FONT></TD>
    <TD vAlign=bottom width="59" align="right"
    style="border-bottom: 3px double #000000"><FONT size="2">-</FONT></TD>
    <TD vAlign=bottom width="21">&nbsp;</TD>
    <TD vAlign=bottom width="22"
    style="border-bottom: 3px double #000000"><FONT size="2">$</FONT></TD>
    <TD vAlign=bottom width="61" align="right"
    style="border-bottom: 3px double #000000"><FONT size="2">-</FONT></TD>
</font>
    <TD vAlign=bottom width="9" align="left">&nbsp;</TD>
  </TR>
  </TABLE>
<BR>
<P align="left" style="margin-left: 45px; margin-top: 0; margin-bottom: 0"><FONT size="2">(a) Included in long-term
    debt is $5,142 outstanding under a revolving credit facility which is supported by
    the Revolver.</FONT></P>
<P align="left" style="margin-left: 45px; margin-top: 0; margin-bottom: 0">(b)
Future interest payments related to debt obligations,
excluding the Revolver and the industrial development bonds.</P>
<P align="left" style="margin-left: 45px; margin-top: 0; margin-bottom: 0">
<FONT size="2">(c) Obligation to
    purchase sand used in the Company's ready-mix operations in Hawaii.</FONT></P>
<P align="left" style="margin-left: 45px; margin-top: 0; margin-bottom: 0"><FONT size="2">(d) The Company has no
    capitalized lease obligations, guarantees, or standby repurchase
    obligations.</FONT></P>
<P align="left" style="margin-left: 45px; margin-top: 0; margin-bottom: 0"><FONT size="2">(e) Not included are
    standby letters of credit totaling $16,067 supporting industrial development
    bonds with principal of $15,700.&nbsp; The principal amount of the
    industrial development bonds is included in long-term debt.&nbsp; The
standby letters of credit are issued under the Revolver.</FONT></P>
<P align="left" style="margin-left: 45px; margin-top: 0; margin-bottom: 0">&nbsp;</P></DIV>

  <FONT size="2"><p style="line-height: 100%">&nbsp;</p>
<p style="line-height: 100%"><b>RESULTS OF OPERATIONS</b></p>

<p><u><b>General</b></u></p>

<P style="margin-top: 0; margin-bottom: 0">

  Net income totaled $3.6 million, or $.41 per diluted share, on sales of $175.3
  million for the quarter ended March 5, 2006, compared to net income of $.5
  million, or $.06 per diluted share, on sales of $138.8 million for the same
  period in 2005.&nbsp; Sales increased in all groups due to improving business
  conditions and project timing in the Water Transmission Group.&nbsp; Net income was
  higher due primarily to sales growth. &nbsp;Equity in earnings of TAMCO,
  Ameron's 50%-owned steel venture in California, increased by $.2 million,
  compared to the first quarter of 2005.</P>

  <FONT size="2" style="font-size: 10pt" face="Times New Roman">

<p><u><b>Sales</b></u></p>

</font>
<P class="MsoNormal" style="margin-top: 0; margin-bottom: 0">Sales increased $36.5 million in the first quarter of
2006, compared to the similar period in 2005. &nbsp;All operating segments had higher
sales in 2006 due to improved demand, project timing and price increases, offset
partially by the impact of changing foreign exchange rates on the Company's
foreign coatings and fiberglass pipe operations.</P>

<P style="PAGE-BREAK-BEFORE: always">
<HR align=center width="100%" color=#999999 SIZE=3>

<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2><B>AMERON INTERNATIONAL CORPORATION
AND SUBSIDIARIES</B></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px"><FONT size=1></FONT>&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2><B>MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued)</B></FONT></P>

<FONT size="2" style="font-size: 10pt" face="Times New Roman">

<p style="margin-top:0; margin-bottom:14">&nbsp;</p>
<P class="MsoNormal" style="margin-top: 0; margin-bottom: 0"><FONT size="2">Sales of the Performance Coatings &amp; Finishes
Group increased $7.4 million, or 17.6%, in the first quarter of 2006, compared
to the first quarter of 2005.&nbsp; The sales improvement was due to volume
growth and price increases.&nbsp; Sales of coatings in the U.S. and Europe
increased
$7.1 million, while sales of lighter-duty product finishes in Australia and New
Zealand increased slightly.&nbsp; U.S. sales improved in nearly every marine and
protective coatings market segment.&nbsp; European volume growth was positive in most
markets and regions.&nbsp; Looking forward, market conditions have been
improving, and the Performance Coatings &amp; Finishes Group should continue to
recover.</FONT></P>
<P class="MsoNormal" style="margin-top: 0; margin-bottom: 0">&nbsp;</P>
<P class="MsoNormal" style="margin-top: 0; margin-bottom: 0"><FONT size="2">Fiberglass-Composite Pipe's sales increased
$10.2 million, or 38.4%, in the first quarter of 2006, compared to the similar
period in 2005.&nbsp; Sales from operations in the U.S. increased $6.2 million due
to significant demand for onshore oilfield piping and increased activity in the
marine and offshore business segments.&nbsp; Sales from Asian operations
increased $2.0 million and were driven mainly by growth in the Middle Eastern
industrial sector.&nbsp; Sales in Europe increased $2.0 million due to volume
growth in&nbsp; industrial and marine markets.&nbsp; The strong demand for oilfield and
marine piping continues to be driven by high oil prices and the high cost of
steel piping, the principal substitute for fiberglass pipe.&nbsp; The outlook
for the Fiberglass Composite Pipe Group remains favorable.</FONT></P>
<P class="MsoNormal" style="margin-top: 0; margin-bottom: 0">&nbsp;</P>
<P class="MsoNormal" style="margin-top: 0; margin-bottom: 0"><FONT size="2">The Water Transmission Group's sales
increased $8.2 million in the first quarter of 2006, compared to the similar
period in 2005.&nbsp; Timing of domestic project work and increased activity at the
Group's operation in Columbia contributed $5.7 million of the revenue growth.&nbsp;
Higher demand for protective lining products and wind towers increased
sales by $2.5 million.&nbsp; Revenue is recognized in the Water Transmission Group
primarily under the percentage of completion method and is subject to a certain
level of estimation, which affects the timing of revenue recognition, costs and
profits.&nbsp; Estimates are reviewed on a consistent basis and are adjusted when
actual results are expected to significantly differ from those estimates.&nbsp; The
Water Transmission Group entered 2006 with a lower backlog due to completion of
most of a major sewer project in Northern California in 2005.&nbsp; Market conditions
remain soft due to fiscal constraints and continuation of a short-term cyclical
slowdown in water infrastructure projects in the Company's markets.</FONT></P>
<P class="MsoNormal" style="margin-top: 0; margin-bottom: 0">&nbsp;</P>
<P class="MsoNormal" style="margin-top: 0; margin-bottom: 0"><FONT size="2">Infrastructure Products' sales increased
$10.9 million, or 30.5%, in the first quarter of 2006, compared to the similar
period in 2005.&nbsp; Higher demand for concrete and steel poles was due principally
to the continued strong housing market and improved market penetration, particularly in the southeast U.S.&nbsp; Ameron's Hawaiian operation had higher sales
due to the continued strength of the commercial and residential construction
markets on Oahu and Maui.&nbsp; The forecast for the Infrastructure Products
Group remains favorable.</FONT></P>

</font>

<p><u><b>Gross Profit</b></u></p>

<P class="MsoNormal" style="margin-top: 0; margin-bottom: 0">Gross profit in the first quarter of 2006 was $41.9 million,
or 23.9% of sales, compared to $33.0 million, or 23.8% of sales, in the first
quarter of 2005.&nbsp; Gross profit increased $8.9 million in the first quarter of
2006 due to higher sales.</P>
<P class="MsoNormal" style="margin-top: 0; margin-bottom: 0">&nbsp;</P>
<P class="MsoNormal" style="margin-top: 0; margin-bottom: 0">The Performance Coatings &amp; Finishes Group had increased
gross profit of $3.3 million in the first quarter of 2006, compared to the first
quarter of 2005.&nbsp; Profit margins improved to 27% in the quarter compared to 24%
in the similar period in 2005.&nbsp; Increased sales volume generated $1.7 million in
additional gross profit, while higher margins due principally to price increases
generated $1.6 million in additional gross profit.</P>
<P class="MsoNormal" style="margin-top: 0; margin-bottom: 0">&nbsp;</P>
<P class="MsoNormal" style="margin-top: 0; margin-bottom: 0">The Fiberglass-Composite Pipe Group's gross profit
increased $1.9 million in the first quarter of 2006, compared to the same
period in 2005.&nbsp; However, due to a change in product and market mix, profit
margins declined from 34% to 30%.&nbsp; Increased sales generated additional gross
profit of $3.5 million, while lower margins reduced gross profit $1.6
million.&nbsp; The unfavorable mix effect was primarily due to volume growth in
the international industrial markets and higher sales in the onshore oilfield
market.</P>
<P class="MsoNormal" style="margin-top: 0; margin-bottom: 0">&nbsp;</P>
<P class="MsoNormal" style="margin-top: 0; margin-bottom: 0">Water Transmission Group's gross profit decreased $.3
million in the first quarter of 2006, compared to 2005.&nbsp; Profit margins declined
from 20% to 16%.&nbsp; Increased sales generated $1.6 million in additional gross
profit, while lower margins reduced gross profit $1.9 million.&nbsp; Margins were
unfavorably impacted by the mix of contract margins and start-up costs
associated with the introduction of wind towers.</P>
<P class="MsoNormal" style="margin-top: 0; margin-bottom: 0">&nbsp;</P>
<P class="MsoNormal" style="margin-top: 0; margin-bottom: 0">Gross profit in the Infrastructure Products Group increased
$4.1 million in the first quarter of 2006, compared to the same period in
2005.&nbsp; Profit margins increased from 19% to 23%.&nbsp; Increased sales generated $2.1
million in additional gross profit, while higher margins increased gross profit
$2.0 million.&nbsp; Higher margins were driven by price increases and operating
efficiencies due to increased production levels.</P>

</font>

<P style="PAGE-BREAK-BEFORE: always">
<HR align=center width="100%" color=#999999 SIZE=3>

<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2><B>AMERON INTERNATIONAL CORPORATION
AND SUBSIDIARIES</B></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px"><FONT size=1></FONT>&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2><B>MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued)</B></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center>&nbsp;</P>

<p><u><b>Selling, General and Administrative Expenses</b></u></p>

<p style="margin-top: 0; margin-bottom: 0">Selling, general and administrative (&quot;SG&amp;A&quot;) expenses totaled $37.5 million,
or 21.4% of sales, in the first quarter of 2006, compared to $33.0 million, or
23.8% of sales, in the first quarter of 2005.&nbsp; The $4.5 million increase
included higher incentive and stock compensation expenses of $2.7 million, and
higher commission and administrative expenses of $1.8 million associated with
higher sales.</p>
<p><u><b>Other Income</b></u></p>
<p style="margin-top: 0; margin-bottom: 0">Other income decreased from $1.2 million in the
first quarter of 2005 to $1.0 million in the first quarter of 2006.&nbsp; Other
income included royalties and fees from licensees, foreign currency transaction
losses, and other miscellaneous income.&nbsp; Higher royalties and income from
affiliates were offset by foreign currency transaction losses in the first
quarter of 2006.<p><u><b>Interest</b></u></p>
<p style="margin-top: 0; margin-bottom: 0">Net interest expense totaled $.9 million in the
first quarter of 2006, compared to $1.4 million in the first quarter of 2005.&nbsp;
The decrease in net interest expense was due to higher interest income from
short-term investments.</p>
<p><u><b>Provision for Income Taxes</b></u></p>
  <p style="margin-top: 0; margin-bottom: 0">Income
  taxes increased to $1.7 million in the first quarter of 2006 from a benefit of $.1
	million in the first quarter of 2005.&nbsp;
  The effective tax rate was 37% in 2006.&nbsp; The
  effective tax rate is based on forecasted full-year earnings and the anticipated mix of domestic and foreign earnings.&nbsp; Income from certain foreign operations and joint ventures is taxed at
  rates that are lower than the U.S. statutory tax rates.</p>

<p><u><b>Equity in Earnings of Joint Venture, Net of Taxes</b></u></p>
  <p style="margin-top: 0; margin-bottom: 0">Equity in earnings of joint venture increased to $.8 million in the first
  quarter of 2006, compared to $.6 million in 2005.&nbsp; Equity income increased due to TAMCO,&nbsp;
  Ameron's 50%-owned mini-mill in California.&nbsp; TAMCO's first quarter
  profits rose due to increased demand for steel rebar and higher selling
	prices.&nbsp; The outlook for TAMCO remains positive.</font></p>

<P style="PAGE-BREAK-BEFORE: always">
<HR align=center width="100%" color=#999999 SIZE=3>

<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2><B>AMERON INTERNATIONAL CORPORATION
AND SUBSIDIARIES</B></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px"><FONT size=1></FONT>&nbsp;</P>

  <p style="line-height: 100%"><b><font face="Times New Roman">
  Item 3.&nbsp;&nbsp;Quantitative and Qualitative Market Risk Disclosure</font></b></p>
  <p style="line-height: 100%"><font size="2">No material changes have occurred
  in the quantitative and qualitative market risk disclosure of the Company as
  presented in Ameron's&nbsp;2005 Annual Report.</font></p>
<font face="Times New Roman">

  <p style="line-height: 100%"><b>Item 4.&nbsp; Controls and Procedures</b></p>
</font>

<p style="line-height: 100%; margin-top:0; margin-bottom:0"><font size="2"><B>Evaluation of Disclosure
    Controls and Procedure - </B>Management has established disclosure controls and
    procedures to ensure that material information relating to the Company,
    including its consolidated subsidiaries, is made known to the officers who
    certify the Company's financial reports and to other members of senior
    management and the Board of Directors.</font></p>
<p style="line-height: 100%; margin-top:0; margin-bottom:0">&nbsp;</p>

<p style="line-height: 100%; margin-top:0; margin-bottom:0"><font size="2">Based on their evaluation as of
    March 5, 2006, the principal executive officer and principal financial
    officer of the Company have concluded that the Company's disclosure controls
    and procedures (as defined in Rules&nbsp;13a-15(e) and 15d-15(e) under the
    Securities Exchange Act of 1934) are effective to ensure that the
    information required to be disclosed by the Company in the reports that it
    files or submits under the Securities Exchange Act of 1934 is recorded,
    processed, summarized and reported within the time periods specified in SEC
    rules and forms, and is accumulated and communicated to management,
including the Chief Executive Officer and Chief Financial Officer, as
appropriate to allow timely decisions regarding required disclosure.</font></p>
<p style="line-height: 100%; margin-top:0; margin-bottom:0">&nbsp;</p>
<p style="line-height: 100%; margin-top:0; margin-bottom:0">There has been no
change in the Company's internal control over financial reporting that occurred
during the last fiscal quarter covered by this report that has materially
affected, or is reasonably likely to materially affect, the Company's internal
control over financial reporting.</p>

  <p style="line-height: 100%"><i>CAUTIONARY STATEMENT FOR PURPOSES OF THE
  &quot;SAFE HARBOR&quot; PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM
  ACT OF 1995</i></p>
  <p style="line-height: 100%; margin-top:0; margin-bottom:0"><font size="2">Any of the above statements that refer to the
  Company's forecasted, estimated or anticipated future results are forward-looking and
  reflect the Company's current analysis of existing trends and
  information.&nbsp; Actual results may differ from current expectations based
  on a number of factors affecting Ameron's businesses, including competitive
  conditions and changing market conditions.&nbsp; Matters affecting the economy
  generally, including the state of economies worldwide, can affect the
  Company's results.&nbsp; These forward-looking statements represent the
  Company's judgment only as of the date of this report.&nbsp; Since actual
  results could differ materially, the reader is cautioned not to rely on these
  forward-looking statements.&nbsp; Moreover, the Company disclaims any intent
  or obligation to update these forward looking
  statements.</p>

<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=left>
&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=left>
&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=left>
<FONT face="Times New Roman" size=2><B>PART II.&nbsp; OTHER INFORMATION </B></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT size=1></FONT>&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">
<FONT face="Times New Roman" size=2><B>Item 1.&nbsp; Legal Proceedings</B></FONT></P>

<font size="2" face="Times New Roman">
<p style='line-height: 100%><font size="2">The
Company is one of numerous defendants in various asbestos-related personal
injury lawsuits.&nbsp; These cases generally seek unspecified damages for
asbestos-related diseases based on alleged exposure to products previously
manufactured by the Company and others, and at this time the Company is
generally not aware of the extent of injuries allegedly suffered by the
individuals or the facts supporting the claim that injuries were caused by the
Company's products.&nbsp; Based upon the information available to it at this
time, the Company is not in a position to evaluate its potential exposure, if
any, as a result of such claims.&nbsp; Hence, no amounts have been accrued for
loss contingencies related to these lawsuits in accordance with SFAS No. 5,
&quot;Accounting for Contingencies.&quot; The Company continues to vigorously
defend all such lawsuits.&nbsp; As of August 28, 2005, the Company was a
defendant in asbestos-related cases involving 9,855
claimants, compared to 10,378 claimants as of May&nbsp; 29, 2005.&nbsp; The
Company is not in a position to estimate the number of additional claims that
may be filed against it in the future.&nbsp; For the quarter ended August 28, 2005, there were
58 new claimants; dismissals and/or settlements involving 581 claimants; and no judgments.&nbsp; Net
costs and expenses incurred by the Company during the quarter ended August 28, 2005 in connection
with asbestos-related claims were less than $.2 million.</font></p>
<font size="2">

<p align=left style="line-height: 100%; margin-top:0; margin-bottom:0">&nbsp;<p
align=left style="line-height: 100%; margin-top:0; margin-bottom:0">
<font style="FONT-SIZE: 10pt" face="Times New Roman" size="2">
The Company is one of numerous defendants in various asbestos-related personal
injury lawsuits.&nbsp; These cases generally seek unspecified damages for
asbestos-related diseases based on alleged exposure to products previously
manufactured by the Company and others, and at this time the Company is
generally not aware of the extent of injuries allegedly suffered by the
individuals or the facts supporting the claim that injuries were caused by the
Company's products.&nbsp; Based upon the information available to it at this
time, the Company is not in a position to evaluate its potential exposure, if
any, as a result of such claims or future similar claims, if any, that may be
filed.&nbsp; Hence, no amounts have been accrued for
loss contingencies related to these lawsuits in accordance with SFAS No. 5,
&quot;Accounting for Contingencies.&quot;&nbsp; The Company continues to vigorously defend
all such lawsuits.&nbsp; As of March 5, 2006, the Company was a defendant in
asbestos-related cases involving&nbsp;2,642<font color="#FF00FF">
</font>claimants, compared to 8,906 claimants as of November 30,
2005.&nbsp; The Company is not in a position to estimate the number of
additional claims that may be filed against it in the future.&nbsp; For the
quarter ended March 5, 2006, there were four new claimants, dismissals and/or
settlements involving&nbsp;6,268 claimants, and no
judgments.&nbsp; No net costs and expenses  were incurred by the Company during
the quarter ended March 5, 2006 in connection
with asbestos-related claims.</font><p align=left
style="line-height: 100%; margin-top:0; margin-bottom:0">&nbsp;<p align=left
style="line-height: 100%; margin-top:0; margin-bottom:0"><font style="FONT-SIZE: 10pt" face="Times New Roman" size="2">The
Company is one of numerous defendants in various silica-related personal injury
lawsuits.&nbsp; These cases generally seek unspecified damages for
silica-related diseases based on alleged exposure to products previously
manufactured by the Company and others, and at this time the Company is not
aware of the extent of injuries allegedly suffered by the individuals or the
facts supporting the claim that injuries were&nbsp;caused by the Company's
products.&nbsp; Based upon the information available to it at this time, the
Company is not in a position to evaluate its potential exposure, if any, as a
result of such claims or future similar claims, if any, that may be filed.&nbsp;&nbsp;Hence, no amounts have been accrued for loss
contingencies related to these lawsuits in accordance with&nbsp; SFAS No. 5.&nbsp;
The
Company continues to vigorously defend all such lawsuits.&nbsp; As of March 5,
2006,&nbsp;
the Company was a defendant in silica-related cases involving&nbsp;2,543
claimants, compared to 7,447 claimants as of November 30, 2005.&nbsp; The
Company is not in a position to estimate the number of additional claims that
may be filed against it in the future.&nbsp; For the quarter ended March 5, 2006, there were
two new claimants, dismissals and/or settlements involving&nbsp;4,906 claimants, and no judgments.&nbsp;
No net costs and expenses were incurred by the Company&nbsp;during the
quarter ended March 5, 2006 in connection with silica-related claims</font><font size="2" style="font-size: 10pt" face="Times New Roman">.</font></font></font><P style="PAGE-BREAK-BEFORE: always">
<HR align=center width="100%" color=#999999 SIZE=3>

<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2><B>AMERON INTERNATIONAL CORPORATION
AND SUBSIDIARIES</B></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px"><FONT size=1></FONT>&nbsp;</P>

<font size="2" style="font-size: 10pt" face="Times New Roman">

<p align=left style="line-height: 100%">&nbsp;<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">
<FONT face="Times New Roman"
size=2><B>Item 2.&nbsp; </B></FONT><B>Unregistered Sales of Equity Securities
and Use of Proceeds</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">
<font size="2">Terms of
  lending agreements place restrictions on cash dividends, stock repurchases,
  borrowings, investments and guarantees. Under the most restrictive provisions
  of these agreements, approximately $16.4&nbsp;million of consolidated retained
  earnings were not restricted at March 5, 2006</font>.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align="center"><FONT
face="Times New Roman" size=2>ISSUER PURCHASES OF EQUITY SECURITIES</FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<DIV align="center">
<TABLE style="BORDER-COLLAPSE: collapse" cellPadding=0
width="95%" border=0>

  <TR>
    <TD vAlign=bottom>
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT
      face="Times New Roman" size=1><B>Period</B></FONT></P>
      <HR align=left width="45%" color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom align=middle><FONT face="Times New Roman"
      size=1><B>(a)&nbsp;Total&nbsp;Number<BR>of
      Shares (or Units)<BR>Purchased</B></FONT><BR>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom align=middle><FONT face="Times New Roman"
      size=1><B>(b) Average<BR>Price&nbsp;Paid&nbsp;per<BR>Share (or Unit)</B></FONT><BR>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom align=middle><FONT face="Times New Roman" size=1><B>(c)
      Number of<BR>Shares (or Units)&nbsp;Purchased&nbsp;as<BR>Part of
      Publicly<BR>Announced Plans or<BR>Programs</B></FONT><BR>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom align=middle><FONT face="Times New Roman"
      size=1><B>(d)&nbsp;Maximum&nbsp;Number&nbsp;(or
      Approximate Dollar Value)<BR>of Shares (or Units) that May Yet Be<BR>Purchased under
      the Plans or<BR>Programs*</B></FONT><BR>
      <HR color=#000000 noShade SIZE=1>
    </TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em">
      <FONT
      face="Times New Roman" size=2>12/1/05&nbsp;thru&nbsp;</FONT><FONT size="2">1/1/06</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom align=center><FONT size="2">-</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom align="center"><FONT size="2">N/A</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom align=center><FONT size="2">-</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom align=center><FONT size="2">40,774</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em">
      <FONT
      face="Times New Roman" size=2>1/2/06&nbsp;thru&nbsp;</FONT><FONT size="2">2/5/06</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom align=center><FONT size="2">13,257</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom align="center"><FONT size="2">$53.58</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom align=center><FONT size="2">-</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom align=center><FONT size="2">45,047</FONT></TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em">
      <FONT
      face="Times New Roman" size=2>2/6/06&nbsp;thru&nbsp;</FONT><FONT size="2">3/5/06</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom align=center><FONT size="2">-</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom align="center"><FONT size="2">N/A</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom align=center><FONT size="2">-</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom align=center><FONT size="2">45,047</FONT></TD></TR>
  </TABLE>
<font size="2"; face="Times New Roman">
<P align="left" style="margin-left: 25px; margin-top: 0; margin-bottom: 0"><BR>*&nbsp; Shares
    may be repurchased by the Company  to pay taxes
    applicable to the vesting of employee's restricted stock.&nbsp;
<FONT size="2">The number of shares does not include shares which may be
repurchased to pay social security taxes applicable to the vesting of such
restricted stock</FONT>.</FONT>
    </DIV>

    </FONT>

<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">
<FONT face="Times New Roman" size=2><B>Item 6.&nbsp; Exhibits and Reports on
Form 8-K</B></FONT></P>

<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">
&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">
(a) <FONT face="Times New Roman" size=2>EXHIBITS:</FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align="center">
&nbsp;</P>
<DIV align="center">
<table class=MsoNormalTable border=0 cellpadding=0 width="92%"
 style='width:90%;border-collapse:collapse'>
  <tr style='page-break-inside:avoid'>
    <td colspan=2 vAlign=bottom align="center" style='width:7%;padding:0in'>
    <b><font size="2">EXHIBIT</font></b><HR noshade color="#000000" size="1"></td>
    <TD vAlign=bottom>&nbsp;</TD>
    <td vAlign=bottom align="center" style='width:7%;padding:0in'>
    <b><font size="2">EXHIBITS OF AMERON</font></b><HR noshade color="#000000" size="1">
    </td>
  </tr>
  <tr>
    <td width="3%" valign=top style='width:3.94%;padding:0in 0in 0in 0in'>
    <p class=Style0>&nbsp;</p></td>
    <td valign=top style='width:4%;padding:0in; '>
    <p class=Style0><font size="2">31.1</font></p></td>
    <td valign=bottom style='width:2%;padding:0in; '>
    <p class=Style0>&nbsp;</p></td>
    <td valign=top style='width:91%;padding:0in; '>
    <p class=Style0><font size="2">Section&nbsp;302 Certification of Chief Executive Officer</font></p>
    </td>
  </tr>
  <tr>
    <td width="3%" valign=top style='width:3.94%;padding:0in 0in 0in 0in'>
    <p class=Style0>&nbsp;</p></td>
    <td valign=top style='width:4%;padding:0in; '>
    <p class=Style0><font size="2">31.2</font></p></td>
    <td valign=bottom style='width:2%;padding:0in; '>
    <p class=Style0>&nbsp;</p></td>
    <td valign=top style='width:91%;padding:0in; '>
    <p class=Style0><font size="2">Section&nbsp;302 Certification of Chief Financial Officer</font></p>
    </td>
  </tr>
  <tr>
    <td width="3%" valign=top style='width:3.94%;padding:0in 0in 0in 0in'>
    <p class=Style0>&nbsp;</p></td>
    <td valign=top style='width:4%;padding:0in; '>
    <p class=Style0><font size="2">32</font></p></td>
    <td valign=bottom style='width:2%;padding:0in; '>
    <p class=Style0>&nbsp;</p></td>
    <td valign=top style='width:91%;padding:0in; '>
    <p class=Style0><font size="2">Section&nbsp;906 Certification of Chief Executive Officer and
  Chief Financial Officer *</font></p></td>
  </tr>
  </table>
</DIV>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<p class=Style0 style="margin-top: 10px; margin-bottom: 10px">(b) REPORTS ON FORM 8-K</p>
<p class=Style0 style="margin-top: 10px; margin-bottom: 10px">Two reports on Form 8-K were filed by the Company during the
first quarter of 2006 as follows:</p>
<p class=Style0 style="margin-top: 10px; margin-bottom: 10px">
<FONT style="FONT-SIZE: 10pt" face="Times New Roman" size="2">January 12, 2006
reporting the Company's quarterly dividend of $.20 per share, as reported in a
press release dated January 12, 2006.</FONT></p>
<p class=Style0 style="margin-top: 10px; margin-bottom: 10px">
<FONT style="FONT-SIZE: 10pt" face="Times New Roman" size="2">January 27, 2006
reporting changes to the compensation payable to the Company's executive
officers, and to report the Company's results of operations for the fiscal year
ended November 30, 2005, as reported in a press release dated January 26, 2006.</FONT></p>
<p class=Style0 style="margin-top: 10px; margin-bottom: 10px">&nbsp;</p>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">* A signed original of this
written statement required by Section 906 has been provided to Ameron
International Corporation and will be retained by Ameron International
Corporation and furnished to the Securities and Exchange Commission or its staff
upon request.</P>
<P style="PAGE-BREAK-BEFORE: always">
<HR align=center width="100%" color=#999999 SIZE=3>


<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center>
<FONT
face="Times New Roman" size=2><B>SIGNATURE PAGE</B></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT size=1></FONT>&nbsp;</P>
<p class=Style0>Pursuant to the requirements of the
Securities Exchange Act of 1934, the Registrant has duly caused this report to
be signed on its behalf by the undersigned, thereunto duly authorized.</p>
<p class=Style0 align=center style='text-align:center'><b>AMERON INTERNATIONAL
CORPORATION</b></p>
<table class=MsoNormalTable border=0 cellpadding=0 width="100%"
 style='width:95%;border-collapse:collapse'>
  <tr>
    <td valign=top style='width:4%;padding:0in; '>
    <p class=Style0 align=right style='text-align:left'><i><font size="2">By:
    </font></i></p></td>
    <td valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; width:65%;border-bottom:
  1.0pt solid windowtext;padding:0in; '>
    <p class=Style0><i><font size="2">&nbsp;</font></i><FONT size=2><i>/s/ James R.
  McLaughlin</i></p>
    </td>
    <td valign=top style='width:30%;padding:0in; '>
    <p class=Style0>&nbsp;</p></td>
  </tr>
  <tr>
    <td valign=top style='width:4%;padding:0in; '>
    <p class=Style0><i><font size="2">&nbsp;</font></i></p></td>
    <td colspan=2 valign=top style='width:96%;padding:0in; '>
    <p class=Style0>
<FONT size=2 style="font-size: 10pt" face="Times New Roman">
    <i>James R.
  McLaughlin</i></FONT><i><font size="2">, </font></i>
<FONT size=2>
    <i>Senior Vice President,
    Chief Financial Officer &amp; Treasurer</i></p>
    </td>
  </tr>
</table>
<p class=Style0>Date: April 11, 2006</p>

</BODY></HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31.1
<SEQUENCE>2
<FILENAME>amn_exhibit311v01.htm
<DESCRIPTION>CERTIFICATION BY CEO
<TEXT>
<HTML>

<HEAD>
<META content="text/html; charset=windows-1252">
<TITLE>EXHIBIT 31</TITLE>
</HEAD>

<BODY>

<p class=Style0 align=right style='text-align:right'><b><FONT size="2">EXHIBIT 31.1</FONT></b></p>

<p class=Style0 align=center style='text-align:center'><b><u><FONT size="2">SECTION&nbsp;302
CERTIFICATION OF CHIEF EXECUTIVE OFFICER</FONT></u></b></p>

<p class=Style0><FONT size="2">I, James S. Marlen, certify that:</FONT></p>

<p class=Style0><FONT size="2">1. I have reviewed this quarterly report on Form 10-Q of Ameron
International Corporation;</FONT></p>

<p class=Style0><FONT size="2">2. Based on my knowledge, this report does not contain
any untrue statement of a material fact or omit to state a material fact
necessary to make the statements made, in light of the circumstances under
which such statements were made, not misleading with respect to the period
covered by this report;</FONT></p>

<p class=Style0><FONT size="2">3. Based on my knowledge, the financial statements, and other
financial information included in this report, fairly present in all
material respects the financial condition, results of operations and cash flows
of the Registrant as of, and for, the periods presented in this report;</FONT></p>

<p class=Style0><FONT size="2">4. The Registrant's other certifying officers and I are
responsible for establishing and maintaining disclosure controls and procedures
(as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control
over financial reporting (as defined in Exchange Act Rules 13a-15(f) and
15(d)-15(f)) for the Registrant and have:</FONT></p>

<p class=Style0><FONT size="2">a) designed such disclosure controls and procedures,
or caused such disclosure controls and procedures to be designed under our
supervision, to ensure
that material information relating to the Registrant, including its
consolidated subsidiaries, is made known to us by others within those entities,
particularly during the period in which this report is being prepared;</FONT></p>

<p class=Style0><FONT size="2">b) designed such internal control over financial reporting, or
caused such internal control over financial reporting to be designed under our
supervision, to provide reasonable assurance regarding the reliability of
financial reporting and the preparation of financial statements for external
purposes in accordance with generally accepted accounting principles;</FONT></p>

<p class=Style0><FONT size="2">c) evaluated the effectiveness of the
Registrant's disclosure
controls and procedures; and presented in this report our conclusions
about the effectiveness of the disclosure controls and procedures, as of the end
of the period covered by this report based on such evaluation, and;</FONT></p>

<p class=Style0><FONT size="2">d) disclosed in this report any change in the
Registrant's
internal control over financial reporting that occurred during the Registrant's
most recent fiscal quarter (the Registrant's fourth fiscal quarter in the case
of an annual report) that has materially affected, or is reasonably
likely to materially affect, the Registrant's internal control over financial
reporting; and</FONT></p>

<p class=Style0><FONT size="2">5. The Registrant's other certifying officers and I have
disclosed, based on our most recent evaluation of internal control over
financial reporting, to the Registrant's auditors and
the audit committee of Registrant's board of directors (or persons performing
the equivalent functions):</FONT></p>

<p class=Style0><FONT size="2">a) all significant deficiencies and material
weaknesses in the design or operation of
internal control over financial reporting which are reasonably likely to
adversely affect the Registrant's ability to record, process, summarize and
report financial information; and</FONT></p>

<p class=Style0><FONT size="2">b) any fraud, whether or not material, that involves management
or other employees who have a significant role in the Registrant's internal
control over financial reporting.</FONT></p>

<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width="100%"
 style='width:100.0%;border-collapse:collapse'>
 <tr>
  <td width="100%" colspan=2 valign=top style='width:100.0%;padding:0in 0in 0in 0in'>
  <p class=Style0><FONT size="2">April 11, 2006</FONT></p>
  </td>
 </tr>
 <tr>
  <td width="100%" colspan=2 valign=top style='width:100.0%;padding:0in 0in 0in 0in'>
  <p class=Style0>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="70%" valign=top style='width:70.36%;padding:0in 0in 0in 0in'>
  <p class=Style0><i><FONT size="2">&nbsp;</FONT></i></p>
  </td>
  <td width="29%" valign=top style='width:29.64%;border:none;border-bottom:
  solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
  <p class=Style0><i><FONT size="2">/s/ James S. Marlen</FONT></i></p>
  </td>
 </tr>
 <tr>
  <td width="70%" valign=top style='width:70.36%;padding:0in 0in 0in 0in'>
  <p class=Style0>&nbsp;</p>
  </td>
  <td width="29%" valign=top style='width:29.64%;padding:0in 0in 0in 0in'>
  <p class=Style0><i><FONT size="2">James S. Marlen</FONT></i></p>
  </td>
 </tr>
 <tr>
  <td width="70%" valign=top style='width:70.36%;padding:0in 0in 0in 0in'>
  <p class=Style0>&nbsp;</p>
  </td>
  <td width="29%" valign=top style='width:29.64%;padding:0in 0in 0in 0in'>
  <p class=Style0><i><FONT size="2">President &amp; Chief Executive Officer</FONT></i></p>
  </td>
 </tr>
 <tr>
  <td width="70%" valign=top style='width:70.36%;padding:0in 0in 0in 0in'>
  <p class=Style0>&nbsp;</p>
  </td>
  <td width="29%" valign=top style='width:29.64%;padding:0in 0in 0in 0in'>
  <p class=Style0>&nbsp;</p>
  </td>
 </tr>
</table>

</BODY>

</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31.2
<SEQUENCE>3
<FILENAME>amn_exhibit312v01.htm
<DESCRIPTION>CERTIFICATION BY CFO
<TEXT>
<HTML>

<HEAD>
<META content="en-us">
<META content="text/html; charset=windows-1252">
<TITLE>EXHIBIT 31</TITLE>

</HEAD>

<BODY>

<p class=Style0 align=right style='text-align:right'><b><FONT size="2">EXHIBIT 31.2</FONT></b></p>

<p class=Style0 align=center style='text-align:center'><b><u><FONT size="2">SECTION&nbsp;302
CERTIFICATION OF CHIEF FINANCIAL OFFICER</FONT></u></b></p>

<p class=Style0><FONT size="2">I, James R. McLaughlin, certify that:</FONT></p>

<p class=Style0><FONT size="2">1. I have reviewed this quarterly report on Form 10-Q of Ameron
International Corporation;</FONT></p>

<p class=Style0><FONT size="2">2. Based on my knowledge, this report does not contain
any untrue statement of a material fact or omit to state a material fact
necessary to make the statements made, in light of the circumstances under
which such statements were made, not misleading with respect to the period
covered by this report;</FONT></p>

<p class=Style0><FONT size="2">3. Based on my knowledge, the financial statements, and other
financial information included in this report, fairly present in all
material respects the financial condition, results of operations and cash flows
of the Registrant as of, and for, the periods presented in this report;</FONT></p>

<p class=Style0><FONT size="2">4. The Registrant's other certifying officers and I are
responsible for establishing and maintaining disclosure controls and procedures
(as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control
over financial reporting (as defined in Exchange Act Rules 13a-15(f) and
15(d)-15(f)) for the Registrant and have:</FONT></p>

<p class=Style0><FONT size="2">a) designed such disclosure controls and procedures,
or caused such disclosure controls and procedures to be designed under our
supervision, to ensure
that material information relating to the Registrant, including its
consolidated subsidiaries, is made known to us by others within those entities,
particularly during the period in which this report is being prepared;</FONT></p>

<p class=Style0><FONT size="2">b) designed such internal control over financial reporting, or
caused such internal control over financial reporting to be designed under our
supervision, to provide reasonable assurance regarding the reliability of
financial reporting and the preparation of financial statements for external
purposes in accordance with generally accepted accounting principles;</FONT></p>

<p class=Style0><FONT size="2">c) evaluated the effectiveness of the
Registrant's disclosure
controls and procedures; and presented in this report our conclusions
about the effectiveness of the disclosure controls and procedures, as of the end
of the period covered by this report based on such evaluation, and;</FONT></p>

<p class=Style0><FONT size="2">d) disclosed in this report any change in the
Registrant's
internal control over financial reporting that occurred during the Registrant's
most recent fiscal quarter (the Registrant's fourth fiscal quarter in the case
of an annual report) that has materially affected, or is reasonably
likely to materially affect, the Registrant's internal control over financial
reporting; and</FONT></p>

<p class=Style0><FONT size="2">5. The Registrant's other certifying officers and I have
disclosed, based on our most recent evaluation of internal control over
financial reporting, to the Registrant's auditors and
the audit committee of Registrant's board of directors (or persons performing
the equivalent functions):</FONT></p>

<p class=Style0><FONT size="2">a) all significant deficiencies and material
weaknesses in the design or operation of
internal control over financial reporting which are reasonably likely to
adversely affect the Registrant's ability to record, process, summarize and
report financial information; and</FONT></p>

<p class=Style0><FONT size="2">b) any fraud, whether or not material, that involves management
or other employees who have a significant role in the Registrant's internal
control over financial reporting.</FONT></p>

<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width="100%"
 style='width:100.0%;border-collapse:collapse'>
 <tr>
  <td width="100%" colspan=2 valign=top style='width:100.0%;padding:0in 0in 0in 0in'>
  <p class=Style0><FONT size="2">April 11, 2006</FONT></p>
  </td>
 </tr>
 <tr>
  <td width="100%" colspan=2 valign=top style='width:100.0%;padding:0in 0in 0in 0in'>
  <p class=Style0>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top style='width:65%;padding:0in'>
  <p class=Style0><i><FONT size="2">&nbsp;</FONT></i></p>
  </td>
  <td valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; width:35%;border-bottom:
  1.0pt solid windowtext;padding:0in'>
  <p class=Style0><i><FONT size="2">/s/ James R. McLaughlin</FONT></i></p>
  </td>
 </tr>
 <tr>
  <td valign=top style='width:65%;padding:0in'>
  <p class=Style0>&nbsp;</p>
  </td>
  <td valign=top style='width:35%;padding:0in'>
  <p class=Style0><I><FONT size="2">James R. McLaughlin</FONT></I></p>
  </td>
 </tr>
 <tr>
  <td valign=top style='width:65%;padding:0in'>
  <p class=Style0>&nbsp;</p>
  </td>
  <td valign=top style='width:35%;padding:0in'>
  <p class=Style0><i><FONT size="2">Senior Vice President-Chief Financial
  Officer</FONT></i></p>
  </td>
 </tr>
 <tr>
  <td valign=top style='width:65%;padding:0in'>
  <p class=Style0>&nbsp;</p>
  </td>
  <td valign=top style='width:35%;padding:0in'>
  <p class=Style0><i><FONT size="2">&amp; Treasurer</FONT></i></p>
  </td>
 </tr>
</table>

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<DOCUMENT>
<TYPE>EX-32
<SEQUENCE>4
<FILENAME>amn_exhibit32v01.htm
<DESCRIPTION>CERTIFICATION BY CEO AND CFO
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<TITLE>Ameron International 10K 2005 - Exhibit 32</TITLE>

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<p class=Style0 align=right style='text-align:right'><b><FONT size="2">EXHIBIT 32</FONT></b></p>

<p class=Style0 align=center style='text-align:center'><b><u><FONT size="2">CERTIFICATION OF
CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER<br>
PURSUANT TO 18 U.S.C. ss. 1350, AS ADOPTED PURSUANT TO SECTION&nbsp;906 OF THE<br>
SARBANES-OXLEY ACT OF 2002*</FONT></u></b></p>

<p class=Style0><FONT size="2">In connection with the report of Ameron International
Corporation (the &quot;Company&quot;) on Form 10-Q for the fiscal quarter ended
March 5, 2006 as filed with the Securities and Exchange Commission on
the date hereof (the &quot;Report&quot;), I, James S. Marlen, President, Chief Executive
Officer of the Company and I, James R. McLaughlin, Chief Financial Officer of the
Company, certify, pursuant to 18 U.S.C. ss. 1350, as adopted pursuant to
<FONT face="Times New Roman">Section </FONT>906 of the Sarbanes-Oxley Act of 2002, that,
to my knowledge:</FONT></p>

<p class=Style0><FONT size="2">1. The Report fully complies with the requirements of
Section&nbsp;13(a) or 15(d) of the Securities Act of 1934; and</FONT></p>

<p class=Style0><FONT size="2">2. The information contained in the Report fairly presents, in
all material respects, the financial condition and results of operations of the
Company.</FONT></p>

<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width="100%"
 style='width:100.0%;border-collapse:collapse'>
 <tr>
  <td width="73%" valign=top style='width:73.04%;padding:0in 0in 0in 0in'>
  <p class=Style0>&nbsp;</p>
  </td>
  <td width="26%" valign=top style='width:26.96%;border:none;border-bottom:
  solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
  <p class=Style0 align=right style='text-align:right'><i><FONT size="2">/s/ James S. Marlen</FONT></i></p>
  </td>
 </tr>
 <tr>
  <td width="73%" valign=top style='width:73.04%;padding:0in 0in 0in 0in'>
  <p class=Style0>&nbsp;</p>
  </td>
  <td width="26%" valign=top style='width:26.96%;border:none;padding:0in 0in 0in 0in'>
  <p class=Style0 align=right style='text-align:right'><FONT size="2">James S. Marlen</FONT></p>
  </td>
 </tr>
 <tr style='page-break-inside:avoid'>
  <td width="100%" colspan=2 valign=top style='width:100.0%;padding:0in 0in 0in 0in'>
  <p class=Style0 align=right style='text-align:right'><FONT size="2">President &amp; Chief
  Executive Officer </FONT> </p>
  </td>
 </tr>
 <tr style='page-break-inside:avoid'>
  <td width="100%" colspan=2 valign=top style='width:100.0%;padding:0in 0in 0in 0in'>
  <p class=Style0 align=right style='text-align:right'><FONT size="2">April 11, 2006</FONT></p>
  </td>
 </tr>
 <tr>
  <td width="73%" valign=top style='width:73.04%;padding:0in 0in 0in 0in'>
  <p class=Style0>&nbsp;</p>
  </td>
  <td width="26%" valign=top style='width:26.96%;padding:0in 0in 0in 0in'>
  <p class=Style0 align=right style='text-align:right'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="73%" valign=top style='width:73.04%;padding:0in 0in 0in 0in'>
  <p class=Style0>&nbsp;</p>
  </td>
  <td width="26%" valign=top style='width:26.96%;padding:0in 0in 0in 0in'>
  <p class=Style0 align=right style='text-align:right'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="73%" valign=top style='width:73.04%;padding:0in 0in 0in 0in'>
  <p class=Style0>&nbsp;</p>
  </td>
  <td width="26%" valign=top style='width:26.96%;border:none;border-bottom:
  solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
  <p class=Style0 align=right style='text-align:right'><i><FONT size="2">/s/ James R.
  McLaughlin</FONT></i></p>
  </td>
 </tr>
 <tr>
  <td width="73%" valign=top style='width:73.04%;padding:0in 0in 0in 0in'>
  <p class=Style0>&nbsp;</p>
  </td>
  <td width="26%" valign=top style='width:26.96%;border:none;padding:0in 0in 0in 0in'>
  <p class=Style0 align=right style='text-align:right'><FONT size="2">James R. McLaughlin</FONT></p>
  </td>
 </tr>
 <tr>
  <td width="73%" valign=top style='width:73.04%;padding:0in 0in 0in 0in'>
  <p class=Style0>&nbsp;</p>
  </td>
  <td width="26%" valign=top style='width:26.96%;padding:0in 0in 0in 0in'>
  <p class=Style0 align=right style='text-align:right'><FONT size="2">Senior Vice President-Chief
  Financial Officer</FONT></p>
  </td>
 </tr>
 <tr>
  <td width="73%" valign=top style='width:73.04%;padding:0in 0in 0in 0in'>
  <p class=Style0>&nbsp;</p>
  </td>
  <td width="26%" valign=top style='width:26.96%;padding:0in 0in 0in 0in'>
  <p class=Style0 align=right style='text-align:right'><FONT size="2">&amp;
  Treasurer</FONT></p>
  </td>
 </tr>
 <tr>
  <td width="73%" valign=top style='width:73.04%;padding:0in 0in 0in 0in'>
  <p class=Style0>&nbsp;</p>
  </td>
  <td width="26%" valign=top style='width:26.96%;padding:0in 0in 0in 0in'>
  <p class=Style0 align=right style='text-align:right'><FONT size="2">April 11, 2006</FONT></p>
  </td>
 </tr>
</table>

<P class="Style0" align="right">&nbsp;</P>
<P class="Style0" align="left"><FONT size="2">* A signed original of this
written statement required by <FONT face="Times New Roman">Section </FONT>906 has been provided to Ameron
International Corporation and will be retained by Ameron International
Corporation and furnished to the Securities and Exchange Commission or its staff
upon request.</FONT></P>

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