We at AMERICAN are proud that the company delivers orders on time more than 99 percent of the time. I can't take credit for that, but as the company's new Works Manager, I'm responsible for it. That and a lot more. Among other things, I'm responsible for manufacturing operations at the largest ductile iron pipe production facility in the world: a 3-mile stretch with 60 manufacturing acres under roof and 1,600 manufacturing employees. I'm responsible for upholding the traditions of a soon-to-be 98-year-old company that is consistently ranked by FORTUNE magazine as one of the best places to work in America. As only the fourth Works Manager at AMERICAN in the past 29 years, I feel a responsibility to my predecessors and the knowledge, skills and commitment they possessed. Each was a talented manager who raised the bar in terms of expectations and performance. Fortunately, I have a lot of experienced people to help me. Just as there has been little turnover with our Works Managers, the turnover rate within AMERICAN is less than 1 percent — compared with 10 to 15 percent in our industry. What's more, the average tenure of service of AMERICAN employees is 20 years, and 75 percent of our work force has more than 10 years of experience. And we're learning more all the time. Roughly 40 percent of our work force is enrolled in technical training of some kind at any given time. Our apprentice program requires four hours of training a week plus 8,000 hours of on-the-job training. In short, your product is made by highly trained people who really know what they're doing. It has been 28 years since I began working for AMERICAN as a research engineer, and I've known for a long time now that the company's attitude toward and respect for manufacturing excellence is very real. Although it might be natural to associate manufacturing with machines and equipment, here at AMERICAN it revolves around people — innovative, hard-working people who care about doing things better than the norm. I like the fact that our culture is such that we set production goals and work as a team to obtain them while involving employees in the decision-making process. I can easily relate to the company's commitment to employee safety and ergonomic improvements, and we rely heavily on our people for input regarding upgrades that are continuous in our facilities and processes. As the new Works Manager, my priorities must address issues such as company growth and profitability, quality assurance, and protection of the environment. But it's still a people thing, and employee safety and job satisfaction are among my top priorities. So is pleasing another essential group of people, our customers. And that's where the on-time deliveries, high-quality products, and other benefits come into the picture. These are truly exciting times at AMERICAN, and I feel privileged to be part of them. Our new Contiarc furnace provides more flexibility in the raw materials used to make pipe and will allow us to better serve customers. It is the only continuous-arc furnace in the world used in the manufacture of ductile iron pipe, and I am proud to have been part of the effort that brought it here. It is another example of the major innovations AMERICAN has implemented through the years. Someone asked me recently if I had given any thought to what I want to leave behind when my time as Works Manager is complete. Well, the things I would want to leave behind are exactly what I inherited: a modern, efficient manufacturing facility that is cost-competitive worldwide, and a well-trained, highly motivated work force that works as a team and is integral to company decision-making. If my tenure is anything like my predecessors', those are the things I will leave behind. And if my tenure is like my predecessors', I won't be finished as Works Manager anytime soon. So, for the time being, at least, let's just say that I feel the responsibility of being Works Manager at AMERICAN, and I really like that feeling. 100 percent on-time deliveries? Hmmm, that has a nice ring to it. Frank Pausic, Works Manager American Cast Iron Pipe Company

Frank Pausic Works Manager