This disclosure is applicable to G. O. Carlson Inc. and it's two operating divisions; Steel Division and the Electralloy Division.

The Company began its planning in 1998 and began remediation of its systems in 1999.

As of October 25, 1999, the company has completed an inventory of internal systems that had potential Year 2000 issues. Internal systems include both information technology and non-information technology systems (HVAC, Security, etc).

The Company has undertaken a comprehensive approach to address its potential exposure to the Year 2000 issues. Potentially affected areas included software applications, databases, computers, networking equipment, facilities, manufacturing equipment, and suppliers at all locations.

We have completed the Year 2000 remediation of all critical functions. We have replaced, upgraded, or re-programmed all systems that could significantly impact our ability to process orders, produce goods, provide services, ensure product quality, and perform other critical administrative functions.

All mission-critical infrastructure and applications have been tested and implemented as Year 2000 ready or their risks have been minimized to an appropriate level.

The Company continues to evaluate the readiness of its key suppliers. Starting in September 1998, the company surveyed key suppliers, outside processors, vendors and partners. We are assessing the Year 2000 readiness of all our suppliers who are deemed to be critical to each of our operating locations.

The Company is requiring suppliers of new software or equipment and third parties who develop or modify software to provide written certification that their products are Year 2000 ready and have been tested accordingly.

The Company currently has in place operating procedures and business continuity plans at its operating locations for responding to unusual, disruptive situations such as power shortages, failures by major suppliers and natural disasters. These existing procedures and plans provide a solid foundation for addressing many Year 2000 issues.

As a result of this remediation project completed by G. O. Carlson Inc., it is our position at this time that the Year 2000 challenge should not have any significant impact on the performance and quality of previous, present, or future products.

While the Company believes it has prepared substantially all of its information and non-information systems for the advent of the Year 2000, we cannot guarantee that internal systems failures will not occur on any given day on or after January 1, 2000. Also, there can be no guarantee that other companies with which the Company does business will be converted on a timely basis or their failure to be Year 2000 ready will not have an adverse effect on the Company.

The magnitude, complexity, and general nature of the Year 2000 problem (particularly as it relates to third parties, including governmental entities, utilities, whom we may rely to maintain our operations) prevents us from providing certifications, assurances, or warranties that all of our systems will be Year 2000 compliant or that we will have no business interruptions.

Any significant updates to our status will be posted on the internet at: http://www.gocarlson.com

Year 2000 Contact:
Peter Santucci
Manager Information Systems
Voice: 610-383-3420, Fax: 610-383-6032