CHARTER STEEL

&

CHARTER SPECIALTY STEEL

AWPA Annual MeetingFebruary 27, 2002

Getting To Know Us BetterSome Background Information

FAQ

• “Which analyst do you want? Tax, stock, or psycho?”

There Is A Better Way

• Numerous Chapter 11 Bankruptcy Proceedings in the past 24 months.

• At Charter Steel, We Completed a $186 million Expansion and Improvement phase and have Embarked on the Next Phase that will Exceed $130 million Over the Next 3 Yrs.– We will do this primarily with earnings, not debt.

– We will continue to Invest in people, technologies, and facilities that provide the lowest cost, highest quality and highest level of service to our customers.

– We are investing in a lean, flexible, capability that can be married to a customer’s manufacturing process. One entity, one process, one inventory.

We Want to be DifferentRedefine the Customer - Supplier Relationship in Steel

• Privately Held, Family Owned, Non-Union, Investing– The Luxury of the Longer View

• This is A Service Business. The Key is Distribution– One Stop Shop, From Start to Finish

• Focused. Smaller, Faster, Smarter– We Can’t Be All Things to All People – 85% is Cold Headed or Cold Formed

• Approach the Market as A Supply Chain Manager– One Entity, One Inventory

• Building Strategic Relationships– The Timken Company

“Up the Ladder “More Specialty Grades, Properties and Value

Bearing

Stainless Steels

Specialty Spring

High Formability CHQ

Cold Heading Quality

Special Quality

Cold Finishing

Industrial

Financial StrengthNew Investment Is the Key to Lower Cost

• Net Sales Ended 2001 at $272 million– Average of 10% per year Growth (internal) for Last 5 Yrs.

• 36 Consecutive Profitable Quarters Through 12-31-01

• Net Worth up 138% in six years.

• Leverage (Liabilities/Net Worth)– .66 at the end of 2001

• Capital Expenditures: $186.2 M In Last 5 Yrs – $134.4 million planned for next three years

• D&B Rating of 5A2

Corporate Structure

• Charter Manufacturing– Charter Wire :Profiled Steel Shapes– Milwaukee Wire Products :Tier 1 Auto – Charter Steel :Carbon producer– Charter Specialty Steel :Stainless

rod/processed.

Charter Steel Facilities

• Saukville, Wisconsin– Carbon and Alloy Steel Manufacture and Distribution

• Melt, Hot Roll

• Clean, Anneal, Draw, Coat

• Distribute

• Rising Sun, Ohio– Full Service Processing and Distribution Facility

• Clean, Anneal, Draw, Coat

• Distribute

Charter SteelSteel Manufacturing, Coil Processing and Distribution

Saukville, Wisconsin

Melt ShopRolling Mill

Coil Processing

100 Ton DC Electric Arc Furnace / VADCarbon and Alloy Chemistries

4-Strand Continuous Casting5.5 inch Square Billet, Surface Quality is Born Here

Danielli Re-Heat FurnaceHigh Efficiency, Walking Beam Design for Superior Surface

Danielli-Morgardshammer Rolling MillHighly Automated, No-Twist, Orbis (dia.) and Eddy Current (surface)

Rolling Mill: Stelmor Laying DeckControlled Cooling to Optimize Metallurgical Structure

Rolling Mill: Sizes From 7/32 to 1-1/324,400 lbs. Coils, Sizes to 1.4375 inches Diameter by March, 2002

Bar Mill Y Split

Bar Sizing Mill

Carbon and Alloy Coil Processing (4 Lines)

Chemical Cleaning: Hydrochloric and Sulfuric and Coating: Polymers, Phosphorus, Lube and Lime

Carbon and Alloy Coil Processing Mechanical Cleaning: Shot Blasting Unit

Carbon and Alloy Coil ProcessingEndothermic Annealing: 2 Salem-Daido Continuous Furnaces

Carbon and Alloy Coil Processing Endothermic Annealing: 3 Salem-Daido STC, and 22 Box Furnaces

Coil Processing ExpansionIndoor Coil Storage

Charter Specialty Steel

• Fond du Lac, Wisconsin– Stainless Steel Coil Processing

• Clean, Anneal, Coat• Distribute

Danielli-Morgardshammer Rolling MillHighly Automated, No-Twist, Orbis (dia.) and Eddy Current (surface)

Stainless Steel Cleaning / Coating Line

New Stainless Annealing Furnaces

Stainless Coil Quench

Charter Specialty Steel (P5)

Conclusion

• Charter Steel is a Different Kind of Steel Supplier– A Service Organization First– Privately Held, Family Owned– Financially Sound and Investing In the Business– A Supply Chain Manager / Partner

• We Are Better Today than We Were One Year Ago and

One Year From Now• We will Better Than We Are Today

Questions ?