We've done it again. For the third consecutive year, Fortune magazine has included AMERICAN on its prestigious list of the "100 Best Companies to Work for in America." We believe a long-standing dedication to our AMERICAN employees is the driving force behind this honor. And we're proud to say that during our long corporate history, this commitment has fostered the development of some of the most innovative employee-related benefits and programs in the nation. Together, all of them make AMERICAN a great place to work. One attribute that Fortune highlighted is our comprehensive medical and dental coverage for ACIPCO employees, retirees, and their families. Our other benefits help us stand out too. Our progressive employee suggestion system — one of the oldest in the nation — offers cash incentives to employees whose suggestions lead to a direct increase in efficiency of operations. One of our most innovative employee-based programs at AMERICAN — the in-house apprentice program — is based on our sincere desire to help our employees acquire the necessary skills for success and advancement within the company, as well as in life. As part of the program, AMERICAN provides courses in a variety of useful subjects such as mathematics, blueprint reading, mechanics, and computer operation. Our ongoing desire to offer the very best to our employees is driven by a basic fact: We believe that we have the finest employees in the world. Their dedication to excellence is the key ingredient in AMERICAN's success. And in my view,our employees themselves have made AMERICAN one of the "100 Best Companies to Work for in America."

Employees like Kirk Kimbrell (left) and Van Richey value the quality of benefits and the company's dedication to excellence that result in high-quality products that make AMERICAN popular among its customers. PHOTO BY SYLVIA CASWELL

As you can see, our strong dedication to our employees — and our employees' dedication to excellence — has a direct, positive influence on our ability to serve you successfully at every level. In fact, the inward focus we maintain for our employees is counterbalanced with an intense outward focus — towards you and serving your needs in the marketplace. We're always looking ahead, continually responding to your changing needs through activities that will expand and improve our current product line. One such forward-thinking endeavor is the AMERICAN SpiralWeld Pipe plant currently under construction in Columbia, South Carolina. Scheduled for completion in July, the plant will produce a spiral-welded steel pipe up to 144 inches in diameter to meet the growing demand for this product in the water, wastewater, hydropower, and industrial markets. Another exciting project, geared toward capital improvement, is our current construction of a new Contiarc furnace in Birmingham, Alabama, scheduled to begin operation in 2001. This electrically powered furnace — the only one of its kind in the U.S. for iron production — will enable AMERICAN to serve you better. We're also proud of the fact that the furnace will feature a state-of-the-art pollution control system that will exceed government environmental regulations and contribute to a cleaner environment. From a broader standpoint, it's essential for us to be certain that we're on target in identifying your needs in the marketplace and reaching our common strategic goals. To ensure our company's accuracy and success in these areas, AMERICAN has developed a series of interdivisional improvement teams to establish key performance indicators for each department. It's a way of giving the highest level of performance to you through providing in-depth knowledge and guidance to our employees; in essence, it keeps us focused on the most important corporate issues and goals. Specifically, these teams give us important feedback on key issues ranging from inventory control to employee and supervisory development; these studies also help each employee understand how his or her job fits into the "big picture." Some of the specific goals the improvement teams are helping us meet include: providing the highest level of customer service; recognizing and encouraging employee optimism; and determining more effective methods for employee participation. In closing, I believe AMERICAN's dedication to both our employees and our customers has served us well. In striving to foster one of the most progressive and positive work environments in the country, we're creating a partnership with our employees that directly benefits you through the quality of products we produce and the level of service we provide. Ultimately, the satisfaction of both groups — customers and employees — is essential to our corporate success. Going forward in the new millennium, we'll enthusiastically continue to look for better ways of serving both. Van L. Richey President & Chief Executive Officer

A Contiarc furnace is being built at AMERICAN. It's the only one of its kind in the U.S. for iron production. PHOTO BY SYLVIA CASWELL