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.1999 VOL. 2 J-Z MOODY'S INDUSTRIAL MANUAL VICKI PEARTHREE RAEBURN, President HOWARD G. KIEDAISCH, Publisher JOHN IERACI, Director--Print Products Editorial Staff WAYNE ARNOLD BRIAN COX JUNE HOANG JUDY PHAM Technical Support KEN DORCY THOMAS WECERA COVERING NEW YORK & AMERICAN STOCK EXCHANGES FELICIA ROBINSON CHARLOT VOLNY JOANNE WALLACE A MERGENT COMPANY SEE FOLLOWING PAGE FOR COMPLETE LIST OF OFFICES Copyright 1999 bv MERGENT FIS, INC. All rights reserved. 6452 MOODY'S INDUSTRIAL MANUAL Subsidiaries Watkins Contracting, Inc. Oak Hill Sportswear Holding Corporation (inactive) Officers Arthur L. Asch. Chmn. Michael A. Ascfi, Pres., Treas. Arthur L. Asch Joseph Greenberger Brian A. Wasserman Directors Michael A. Asch James L. Hochfelder Auditors: PricewaterhouseCoopers LLP General Counsel: Greenberger & Forman Shareholder Relations: Arthur L. Asch. Chairman & C.E.O. Tel.: 212-789-8811 No. of Stockholders: Mar. 9, 1999, 680 No. of Employees: Dec. 31, 1998, 159 Address: 350 Park Avenue. New York, NY 10022 Tel.: 212 750-7755 Fax: 212 789-8819 Consolidated Income Account, years ended Dec. 31($000): 1998 1997 E01996 (revised) Tot rc\s 13,743 2.298 75 Cost of sales . 10.324 1.336 Gross profit . 3,419 962 75 Gen & admin exps................ 3,859 1.226 531 Oper income (loss) . . . dr440 0dr266 dr456 Int expense, net 135 37 Intinc 9 174 247 Otherinc 25 8 Income (loss) bef prov (benefit) for tax dr541 drl 19 dr209 Provision (benefit) for tax cr45 48 9 Loss fr conun opers........... dr496 drl67 dr218 (Loss) inc fr discom opers. . dr792 Loss on disp . . . dr300 Tot discom opers dr 1,092 Common shares (000): Net income (loss) dr496 drl 67 drl.310 Weigh avg shares outstg-basic . 2,468 2,137 2,058 Weigh avg shares outstg-djluted 2.468 2,137 2.058 Yr end shares outstg.............. 2.468 2,468 2,058 Income (loss) per sh-contin opers dr$0.20 dr$0.08 drSO.ll Earn per sh-inc fr discont opers. . dr$0.38 Earn per sh-disp of discont dr$0.15 Earn per sh-net inc-basic ......... dr$0.20 dr$0 08 dr$0.64 Net me per sh- conun opers- diluted........... dr$0.20 dr$0 08 drS0.ll Earn per sh-inc fr discont opers- dr$0.38 Net inc per sh- loss on disp- dr$0.15 Net income (loss) persh-diluted . dr$0.20 dr$0.08 dr$0.64 Deprec & amort . 365 223 No of full time employees . . . 015S 0150 04 No of com stkhlders . . . E038O 00448 0461 No of beneficiary 00680 00800 Tot no of stkhlders .... 001.060 001,248 GDReclassified to conform with current presentation CDRestated to reflect adoption of SFAS 128 0As reported by Co. 0As is SAs of March 6. 1998 SAs of March 9. 1999 Consolidated Balance Sheet, as of Dec. 3KS000): Assets' Cash & cash equivs . . . Accts recetv-net .... Costs m excess of billings................ Assets held for sale .... Other curr assets............ Tot curr assets . . Mach & equip ......... Office equip Fum & fixtures . . . Lsehld improve . . Vehicles..................... Gross prop pit & equip . Less accum deprec & amort....................... Prop pit & equipment, net.............................. Goodwill-net .............. Other assets................... 1998 68 4,749 223 780 164 5,984 1,163 105 29 42 338 1,677 190 1,487 2,914 37 1997 710 2,353 600 1,350 142 5,155 350 90 7 41 252 740 22 718 3,125 57 Tot assets................... Liabilities. Curr port of long-term debt............................ 10,422 668 9,055 1,015 Notes pav-banks............ Accts pay....................... Billings in excess of costs ......................... Accrued exps................ Dep on asset held for Accrued inc tax.............. 1,681 1,872 409 311 100 1,153 238 752 152 376 Tot curr liabil............ Long-term debt.............. Other long-term liabil . . Com stk.......................... Cap m excess of par val. Retain earn..................... Com stk held in treasury. at cost ....................... 5,041 738 105 27,925 dr6,379 17,008 3,686 180 50 105 27,925 dr5,883 17,008 Tot stJchlders eq......... 4,643 5,139 Tot liabil & stkhlders eq .............................. 10,422 9,055 Long Term Debt: Dec. 31, 1998, $1,406,000 (including current portion of $668,000) as follows: (1) $469,000 Debt on assets held for sale. (2) $937,000 Purchase contracts (at interest rates of 6.34% to 9.64% and with maturities from to 1 H>3>Co. has an outstanding mortgage note, which is secured by land and a building in Mississippi (and, from December 1996 to April, 1998, by a $500,000 certificate of deposit) which carries an interest rate of fe% above the Bank of Mississippi's Prime Rate (7.75% at Decem ber 31, 1998). The principal balance of the mortgage was $469,000 at December 31, 1998 and $500,000 at December 31, 1997. During 1998, the mortgage was refinanced and $31,000 of the principal balance of the mortgage was paid. Co. has classified this as a current liability as it is likely that part or all of such note will be repaid in 1999. WCI acquired vehicles and equipment under long term purchase contracts which were secured by the related assets. Vehicles and equipment under purchase contracts bad a net book value of $1,076,000 at Decem ber 31, 1998 and $313,000 at December 31. 1997. Capital Stock: 1. Rexx Environmental Corp. common; par $0.02. AUTH - 12,000,000 shs. OUTSTG - Dec. 31. 1998 2,467,576 shs; par $0.02. STOCK SPLIT - $0.01 par shs. split l-for-2 in reverse order July 7, 1983. OPTIONS - On October 11. 1994, the Board of Direc tors adopted a Non-Qualified Stock Option Plan (the `Plan4) covering up to 199,250 shares of Co.'s Common Stock. The amendment provides that the Plan is permit ted to grant options to non-employee directors and pro vides that each director who is not an employee of Co. shall receive options to purchase 15,000 shares at the then-current market price for Co.'s stock upon joining the Board. At December 31, 1998, Co. reserved 439.250 shares of its Common Stock for the purposes of the Plan. At that date, there were 304,000 options outstanding. Additional information concerning stock options under the Plan is summarized as follows: Outstanding at Dec. 31,1997 .......................... 195,000 Granted.............................................................. 119,000 Exercised.................................. 0 Terminated......................................................... (10,000) Outstanding at Dec. 31,1998 ........................... 304,000 DIVIDEND DISBURSEMENT AGENT - American Stock Tranfer & Trust Company TRANSFER AGENT & REGISTRAR - American Stock Transfer & Trust Company LISTED - American : REX PRICE RANGE - 1998 1997 1996 1995 1994 High ....................... 5h N.A. 4fc 5% Low......................... N.A. 1& Ite 39)6 OFFERED - (245.000 shs.) at $10 a sh. in Sept. 1969 thru F.L. Salomon & Co. and associates. CAPITAL HISTORY-Par changed from $0.10 to $0.01 thru exchange of common shares on a share-for- share basis in Jan., 1979. REYNOLDS METALS CO. History: Incorporated in Delaware on July 18, 1928, with a perpetual charter, and acquired the foil business and operating assets of United States Foil Co. In Aug. 1928, purchased entire capital stock of Robertshaw Thermostat Co., incorporated 1914; also acquired con trol of Fulton Sylphon Co., incorporated 1926. Note: For acquisitions and dispositions, etc., prior to 1983 see Moody's 1989 Industrial Manual. In Dec. 1983, Co. purchased Consolidated Aluminum Corp.'s Plant Complex. In early 1980, Co. sold 51% of its Jamaican mining assets and operations and all of its land holdings in Jamaica to Jamaican government. In Jan. 1988, Co. acquired baking cup assets of Fluted Paper Products Company. On May 31, 1988, Co. acquired Presto Products, Inc. On June 30, 1988, Co. acquired Mt. Vernon Plastics Corp. On Mar. 10, 1989, Co. acquired Conductor Products Inc. On Mar. 30, 1989, Co. sold interest in Alumina Part ners of Jamaica. In 1990, Co. acquired remaining interest in can facil ity in Austria. In 1990, Co. acquired 75% interest in alu_ wheel plant in Ontario, in partnership with Lei Canada, Inc. In Feb. 1991, Co. acquired Mawson Pacific an Australian gold producer. In Sept. 1992, Co. sold its North American elc cable operations to BICC Cables Corporation and affiliates. In 1992, Co. sold its 84% interest m Eskn;mp * Corporation, and its aluminum wire and cable tions for approx, book value. In Nov. 1993, Co. acquired the aluminum can operations of Miller Brewing Co. Terms transaction were not disclosed. In 1993, Co. sold its Benton Harbor, Michigan num reclamation plant to ALRECO Acquisition subsidiary of FFS Inc. In June 1994, Co. acquired Bev-Pak, Inc. Inc., a Plaines, 111. Also, in June 1994, Co. sold Reynolds tralia Metals, Ltd., which holds a 40% interest fa Boddington Gold Mine in Western Australia. In Aug. 1994, Co. acquired the metals business of Prime Metals, Inc.. In Aug. 1994, Co. acquired The United States Corporation's facility in Beloit, Wisconsin. In Dec. 1994, Co. acquired from The Shell of Australia an additional 6% interest m Worsley tralia, increasing Co.'s interest in the joint vr 56% In Mar. 1995, Co. sold its wholly owned sul Reynolds Australian Gold Operations, Ltd to __ Gwalia Ltd. and Camelot Resources N.L.. both of, tralia. On June 30, 1995, Co. acquired Alcan All Corporation's laminated foil plant in Louis' Terms of the transaction were not disclosed. In June 1995, Co. acquired Wilson Engraving pany, Inc., which operates manufacturing plants ' las, Texas and West Monroe, Louisiana In Oct. 1995, Co. acquired an additional interest in the Becancour, Quebec, Canada, minum production plant from Societe financement du Quebec, an agency of the of Quebec. The acquisition increased Co.'s the Becancour joint venture to 50%. In Dec. 1995, Co. acquired the flexible manufacturing operations of Hargro Flexible Corp. in Boyertown, Pennsylvania. Co. also the Canadian Cut-Rite brand from Scon F pany, and other wax paper brands from i Company's Canadian affiliate, Scott Paper Dec. 1995. In Apr. 1996, Co. acquired an interest in a in China that produces aluminum foil and The operation, Bohai Aluminium Industries, fabricating facility 180 miles east of Beijing, ity manufactures aluminum foil primarily pharmaceutical and tobacco industries, and for the automotive and construction products In Dec. 1996, Co. closed its aluminum manufacturing plant in Houston, Texas. In Mar. 1997, Co. sold its residential products operations in the U.S. to AmcrLV Products, Inc. Included in the sale were Ri struction products plants located in Ash' Bourbon, Indiana and Lynchburg, Virginia; factured housing operations at its Eastmar facility; a plant in Chesterfield County, Vi supplies aluminum building sheet to the industry; and 54 service centers. Co. retail nobond aluminum composite operations a* facility. In May 1997, Co. sold its Bellwood, Vi num reclamation plant to Philip Metals Recovery (USA). Inc In June 1997, Co. sold an aluminum-exo to Kaiser Aluminum & Chemical CoTp-j. million in cash and between $3 million and i* assumed employee-related liabilities. Also in May 1997, Co. sold its alunu* plant in El Campo, Texas to the Willi** subsidiary of Tredegar Industries, Inc. In May 1997, Co. sold its western properties. In Mar. 1998, Co. sold its US recyclm* Wise Recycling LLC, an affiliate of W" Inc. In a related transaction, Tomra Pacific late of Tomra Systems ASA, aC9u^r Region of Reynolds' US recycling In May 1998, Co. sold its European rouj nesses to VAW Aluminum AG. Financ* not disclosed. n In June 1998, Co. sold its McCook, 11- plant to McCook Metals LLC, a comp--*^ Michigan Avenue Partners Inc. Financi ^ disclosed. In Aug. 1998, Ball Corporation beverage can business assets of Co. ig $746 million cash acquisition includes^ manufacturing plantsof Co. in 12 statf as well as the Richmond, VA, hea<*9 beverage can manufacturing business. Richmond facility and consolidate tions at Ball offices near Denver, Co In Feb. 1999. Co.'s Southern GW sidiary, located in Louisville, K ' ^ Graphics Inc. of Toronto. Terms ot not disclosed. Integration of L** Southern Graphic Systems' Cana i r l Feb. 1 iComi i pnm 1 billet, f.which f.which , sue ' ownc Elbe do fc-Texa ^Netht min MOODY'S INDUSTRIAL MANUAL 6453 q Feb. 9, 1999, and is expected to be completed in Colombia;.............................. Southern Graphic Systems, Inc. Apr. 1999, Alcoa Inc. acquired Co.'s aluminum ion plant in Irurzun, Spain as well as its distribuijperation for architectural systems, which has ware 's in several cities in Spain. in Apr. 1999, Co.'s packaging and consumer I business unit launched a foodservice packaging consumer products subsidiary in Brazil. The Reyco !iy in Sao Paolo was operational Apr. 12, 1999. The is locally managed and employs about 100 people Ebe community. s: The Company owns and operates two carjroducts manufacturing facilities located in Lake * s and Baton Rouge, Louisiana. The Company's ring and consumer business provides a variety of plastic and other products and related services to the ping and consumer products markets. ~Company is an aluminium producer. The Corn 's primary aluminum products include aluminum billet, which is used by extrusion plants; sheet which is supplied to rolling facilities; foundry which is the base material for cast automotive , such as wheels; and electrical redraw rod. rties: Co. maintains its principal office in Rich'Virginia. nolds' products are produced at numerous domes foreign plants wholly or partly owned by ReynThe following lists as of March 22, 1999 our owned domestic and foreign operations and 'the domestic and foreign locations of operations we have interests. Mill products, extrusions, foil Venezuela: Primary aluminum, mill products, Egypt;..................................... foil, aluminum wheels Extrusions.............................. Germany;................................ Alumina, primary aluminum . Leased. One of the two packaging graphics and image carrier operations located in Richmond, Virginia is leased. European Distribution Centers - 5 leased. U.S. Service Centers - 16 leased. U.S. Processing Centers - 2 leased. These plants also produce extruded products for our construction and distribution business unit. The plant in Harderwijk, Netherlands also manufactures heat exchangers and other extruded products. We have entered into a definitive agreement to sell this extrusion plant. See 'General - Portfolio Review.* We have entered into a definitive agreement to sell the Alloys can stock complex. See `General - Portfolio Review.' Joint Ventures: In Dec. 1989, Reynolds Interna tional Inc., a subsidiary of Co,, entered into a joint ven ture with the Fata European Group of Italy and a group of Russian organizations to build a $200,000,000 alumi num foil production and converting operation in Siberia. Under the agreement, a combine of six Russian organi zations will own 70% of the new facility. Reynolds International and The Fata European Group, which is headquartered m Turin, each will hold a 13.5% interest m the plant. The remaining three percent will be held by the San Paolo Bank of Italy. In May 1994, Co. and its Reynolds International, Inc. subsidiary, along with Mitsubishi Aluminum Co., Mit Officers Jeremiah J. Sheehan, Chmn., Pres.. C.E.O., C.O.O. Randolph N. Reynolds, Vice-Chmn. William E. Leahey. Jr.. Sr. V.P. Thomas P. Chnstino, Sr. V.P., Global Packaging & Consumer Products Donald T. Cowles, Sr. V.P.. Global Construction & Dis tribution Eugene M. Desvemine, Sr. V.P., Global Transportation Allen M. Earehart. Sr. V.P., Contr. D. M. Jones, Sr. V.P., Gen. Couns. John M. Lowrie, Sr. V.P. Paul Ratki, Sr. V.P . Global Metal & Carbon Products C. S. Thomas, Sr. V.P., Global Technology & Opera tional Services Donna C. Dabney, Sec., Asst. Gen. Counsel Julian H. Taylor, V.P., Treas. Douglas M. Jerrold Lou Ann J. Nabhan Edmund H. Polonitza John F. Rudin Vice Presidents John B. Keizer F. R. Newman William G. Reynolds. Jr Jeremiah J. Sheehan Patncia C. Barron Robert L. Hmtz Mylle B Mangum James M. Ringler Joe B. Wyatt Directors Randolph N. Reynolds John R. Hall William H. Joyce D. L. Moore Samuel C. Scott, III Auditors: Ernst & Young L.L.P. Shareholder Relations: Julian H. Taylor, Vice Presi subishi Materials Corporation and Mitsubishi Corpora dent, Treasurer Teh: 804-281-4505 tion, formed M&R Automotive Products, Inc., a Japa nese joint venture company. The company was formed to market extruded aluminum automotive components Annual Meeting: In May No. of Stockholders: Mar. 22, 1999, 7908 in Japan as a follow-up to an agreement signed by the two groups in December 1992. Terms of the joint ven ture were not disclosed. Co. has a 56% interest in Worsley Australia, an Aus tralian joint venture company. No. of Employees: Dec. 31, 1998, 20000 Address: 6601 W Broad St, P.O. Box 27003. Rich mond, VA 23261-7003 Tel.: 804 281-2000 Fax: 804 281-4711 Web: www.rmc.com Co. and the Guyanese government each owns a 50% interest in a bauxite mining project in the Berbice region of Guyana. Co. also has interest in an unincorporated joint ven ture which produces alumina. In Oct. 1995, Co. acquired an additional 24.95% interest in the Becancour, Quebec, Canada, primary alu minum production plant from Societe Generale de financement du Quebec, an agency of the Government of Quebec. The acquisition increased Co's interest in the Becancour joint venture to 50%. In October 1997, the Company formed a joint venture with Societe Generale de Financement du Quebec (*SGF`) to operate the Cap-de-la-Madeleme, Quebec, Consolidated Income Account, years ended Dec. 31($000): Net sales........... Equity, int & other me......... Tot revs............. Cost of prod sold. Selling, admin & gen exps......... Deprec & amort . Int-principaJly on long-term oblig Operational 1998 5.859,000 4,774,000 378,000 252,000 114.000 1997 6,881.000 19.000 6,900.000 5,658.000 406.000 368,000 153.000 19% 6.972,000 44.000 7.016,000 5.856,000 445.000 365,000 160.000 rolling mill and the Weston Road, Toronto, Ontario, coil restructuring coating facility that were previously owned by Reyn costs................ olds. Tot costs & exps . Income (loss) bef 144,000 5.662,000 75.000 6,660.000 37,000 6.863.000 Subsidiaries me tax........... 197,000 240.000 153.000 Aiuminerie de Becancour Inc. (Canada) Tax on income Aluminio Reynolds de Venezuela, S. A. (Venezuela) Aluminium Oxid Stade Gesellschaft mit beschrankter Haftung (Germany) Bakers Choice Products, Inc. Bohai Aluminium Industries, Ltd. (China (Peoples Rep. Of)) Canadian Reynolds Metals Company, Ltd. (Canada) Hamburger Aluminium-Werk Gesellschaft mit beschrankter Haftung (Germany) Hanover Manufacturing Corporation (credit)........... Income (loss) bef extraord item . Extraord item . . . Income (loss) bef acctg changes . Cum effects of acctg changes . Net income (loss) Pfd stk dividends Common shares (000) 45,000 152,000 dr63.000 dr23.000 66,000 104.000 49.000 136.000 136.000 104,000 dr 15.000 89.000 36.000 Manicouagan Power Company (Canada) Net income (loss) Malakoff Industries, Inc. avail to com Mt. Vernon Plastics Corporation Pechinev Reynolds Quebec, Inc. Presidential Development Corporation RAMCO Manufacturing Company RB Sales Company, Ltd. Reynolds Aluminum China (Inc.) Reynolds Aluminium Deutschland, Inc. stkholders. . . Avg shares outstg-basic Avg shares outstg-diluted Yr end shares outstg . . . . Income (loss) per 66,000 69.709 69,937 64.457 136.000 73.412 74.004 73.909 53.000 63,730 63.947 72.719 Reynolds Aluminium Deutschland Internationale Ver- sh-opers-basic . $2.18 $1.86 Si.06 triebsgesellschaft mbH (Germany) Income (loss) per Reynolds Aluminium France, S.A. (France) sh-extraord Reynolds Aluminum Company of Canada, Ltd (Canada) Reynolds Australia Alumina. Ltd. Reynolds Becancour. Inc. Reynolds Consumer Products, Inc. Reynolds Extrusion Europe (Holding) B.V. (Nether lands) Reynolds International Holdings, Lnc. Reynolds International, Inc. item-basic . . . Income (loss) per sh-accotg changes-basic . Net income (loss) per sh-basic. . Income (loss) per share- opersdiluted .... dr$0.91 dr$0.33 $0.94 $2.18 $1 86 $1.84 drSO 24 SO 82 Reynolds International (China), Ltd. (Bermuda) Earn per sh- Reynolds International Latin America, S.A. (Panama) Reynolds International (Panama) Inc. (Panama) Reynolds-Lemmerz Industries (Canada) Reynolds Wheels-Holdmg, S.p.A. (Italy) Reywest Development Corporation RMC Delaware, Inc. RMC Properties, Ltd RMC Saint George, Inc. RMCC Company Reynolds Metals Development Company extraord itemdiluted ......... Earn per sh-acctg chg-diluted . . Net income (loss) per sh-diluted . Dividends per com sh........... Tot no of employees . , No of com dr$0.91 dr$0.33 $0.94 $1 40 020,000 $1.84 $1 40 SG.82 SI 40 029,000 Reynolds Metals Foreign Sales Corporation (Barbados) stkhlders......... 007,908 09.126 Saint George Insurance Company Deprec & amort 252,000 368,000 365.000 Southern Graphic Systems - Canada. Ltd (Canada) EStraight line UJAs is 0As of Mar. 22, 1999 6454 MOODY'S INDUSTRIAL MANUAL Consolidated Balance Sheet, as of Dec. 31($000): Assets- Cash & cash equivs. . Receivables: customers, net.............................. Other receivs............ Tot receivs................... Invent ....................... Ppd exps & other .... 1998 94,000 710.000 184.000 894.000 500.000 114.000 1997 70,000 841,000 174,000 1.015.000 744.000 165.000 Tot curr assets............ Unincorporated jt vent & assoc cos .............. Land, land improve & mineral props . ... Buildings & Isehld improve..................... Mach & equip.............. Constr m prog ............ Prop pit & equipment, at cost.......................... Less allowances deprec & amort................... Net prop pit & equip . . Defer tax..................... Other assets . . ... 1.602.000 1,478.000 244,000 781,000 3,087,000 170,000 4.282,000 2,258.000 2,024.000 363.000 667.000 1,994,000 1,381,000 289,000 1,045,000 5,044,000 155,000 6,533,000 3,579.000 2,954,000 249,000 648,000 Tot assets................ Liabilities. Trade pays................ Accrued compens & rel amts..................... Pay to unincorprated jt vent & assoc cos . . Coml paper ............ Notes pay to banks . . Curr port of long-term oblig ..................... Other curr liabil . . . 6,134,000 401,000 183,000 75.000 82,000 34.000 196,000 270,000 7,226,000 512,000 202.000 81.000 67,000 J 42.000 279,000 Tot curr liabil Long-term debt. . . Postretirement benefits Environmental......... Defer tax.............. Other liabil.............. Com stk............ Retain earn.............. Treas stock, at cost . Accum other comprehensive inc 1,241,000 1,035.000 1,029.000 161,000 272.000 202.000 1,533.000 1.222.000 526,000 35,000 1,283,000 1,501,000 1,043,000 158,000 269,000 233,000 1.521,000 1.253,000 35,000 Tot stkhlders eq . . 2.194.000 2,739,000 Tot liabil & stkhlders eq .......................... 6,134.000 7,226,000 EAllowances: 1997 $16,000,000; 1998 $14,000,000 Long-Term Debt: Dec. 31, 1998, $1,231,000,000 (including current portion of $196,000,000) comprised of: (millions) Medium-term notes............................................ $329 9-%% debentures due 1999 ............................ 100 9% debentures due 2003 ................................... 21 6-%% amortizing notes..................................... 228 Industrial and environmentalcontrol revenue bonds............................................................... 227 Credit facilities arrangement .......................... 315 Mortgages and other notes payable arrangement................................................... 11 Subtotal before current portion.......................... 1,231 Amounts due within one year.......................... 196 Long-term debt................................................... $1,035 For detail see below. 1. Reynolds Metals Co. 9% debentures, due 2003: Rating - Baal AUTH - $100,000,000. OUTSTG - Dec. 31. 1998, $21,000,000. DATED - Aug. 15, 1991. DUE - Aug. 15. 2003. INTEREST - F&A 15 to holders registered J&J 1. TRUSTEE - Bank of New York. DENOMINATION - Fully registered, $1,000 or any multiple thereof Transferable and exchangeable with out service charge The debentures will be issued as book-entry debentures and will be represented by a per manent global debenture or debentures. Each permanent global debenture representing book-entry debentures will be deposited with, or on behalf of. The Depository Trust Co., as U.S. Depositary, located in the borough of Manhattan, The City of New York, and will be regis tered in the name of the Depositary or a nominee of the Depositary. Beneficial interests in book-entry deben tures will be shown on, and transfers thereof will be effected only through, records maintained by the Depos itary's participants. Owners of beneficial interests in such permanent global debentures will not be entitled to receive physical delivery of debentures m definitive form and will not be considered the holders thereof and no permanent global debenture representing book-entry debentures will be exchangeable, except for a permanent global debenture of like denomination to be registered in the name of the Depositary or its nominee. CALLABLE - Not callable prior to maturity. PUT RIGHTS OF HOLDERS - In the event that there occurs at any time prior to Aug. 15, 2003 both (a) a designated event with respect to Co. and (b) a rating decline, each holder of the debentures shall have the right, at the holder's option, to require Co. to purchase all or any part of such holder's debentures on the date that is 100 days after the last to occur of public notice of the designated event and the rating decline, at 100% of the principal amount thereof, plus accrued interest to the repurchase date. On or before the twenty-eighth day after the last to occur of public notice of the designated event and the rating decline, Co. is obligated to notify the trustee of such events, and promptly thereafter to mail, or cause to be mailed, to all holders of record of the debentures a notice regarding the designated event, the rating decline and the repurchase nght. The notice shall state the repur chase date, the date by which the repurchase right must be exercised, the applicable price for such debentures and the procedure which the holder must follow to exer cise this right. Co. shall cause a copy of such notice to be published in an English language newspaper of general circulation in the borough of Manhattan, the City of New York. To exercise this right, the holder of such debenture must deliver at least ten days pnor to the repurchase date written notice to Co. of the holder's exercise of such nght. together with the debenture with respect to which the right is being exercised, duly endorsed for transfer. Such written notice shall be irrev ocable. SECURITY - Not secured. Co. may not, nor may it permit any of its consolidated subsidiaries to, create, incur, assume or suffer to exist any lien secunng any non-securable obligations upon any of its principal properties or upon any stock or indebtedness of any subsidiary which owns principal properties without in any such case effectively providing that the securities of each senes then outstanding are secured equally and ratably with such secured non-securable obligations, so long as such secured non-securable obligations are so secured, unless, after giving effect thereto, the aggregate amount of all such secured non-securable obligations plus all attnbutable debt, without duplication, of Co. and its consolidated subsidianes in respect of sale and lease back transactions would not exceed 10% of consolidated net tangible assets The foregoing restrictions do not apply to non-securable obligations secured by specified types of liens. INDENTURE MODIFICATION - Indenture may be modified, except as provided, with consent of 66%% of debentures outstanding. RIGHTS ON DEFAULT - Trustee, or 25% of deben tures outstanding, may declare principal due and paya ble (30 days' grace for payment of interest). PURPOSE - Proceeds will be used for general corpo rate purposes, including refinancing outstanding indebt edness of Co. OFFERED - ($100,000,000) at 100 plus accrued inter est (proceeds to Co.. 99.300) on Aug. 12, 1991 thru Goldman, Sachs & Co., Merrill Lynch & Co. and associ ates. PRICE RANGE 1998 1997 1996 1995 1994 High ....................... 115% 111% 117% 116% 117 Low......................... 111% 107% 107% 101% 101 2. Reynolds Metals Co. medium-term notes, 9 mos. to 30 yrs.: Rating - Baal OUTSTG - Dec. 31. 1998, $329,000,000. 3. Canadian Reynolds Metal Co. Ltd 6.625 % gtd notes, due 2002: Rating - Baal AUTH - $285,000,000. OUTSTG - Dec. 31. 1998, $228,000,000. DATED - June 15. 1993. DUE - July 15, 2002. INTEREST - J&J 15 at 6.625%. SECURITY - Unsecured. GUARANTEED - By Reynolds Metals Company. OFFERED - ($285,000,000) at 99.37 on June 15. 1993 thru Merrill Lynch & Co. Capital Stock: 1. Reynolds Metals Co. common; no par. AUTH - 200.000,000 shs. OUTSTG - Dec. 31. 1998 64,457,000 shs; no par. STOCK SPLITS - Par changed from no par to $1 Sept 15, 1955 by 5-for-l split; from $1 to no par Oct 13, 1959, by 3-for-2 split No par shares split 2-for-l May 15, 1987. VOTING RIGHTS - Entitled to one vote per share DIVIDENDS PAID - (Fiscal year end): (No par class A shares): 1928........ ....... 1.00 1929.......... .... 3.41 (No par class B shares): 1928-29... ....... Nil (No par common shares): 1929........ ,,..0.35fc 1930.......... .... 2.20 1931....... ....... 1.75 1932......... .......1.25 01933-36.. ....LOO 1937....... ....... 1.00 1938......... .......0.15 1939.......... ...... Nil 1940....... ....... 0.30 1941........ ........Nil 1942.......... ....0.50 1943-44... ....... 0.75 1945......... .......1.00 1946 ......... .... 0 75 01947.... ...... 1.00 12)948...........1.35 1949.......... ....1.10 01950.... ....... 1.20 1951........ .......1.10 1952-53.. .... 1.00 01954.... ....... 1.50 01955......... 1.62M2 ($1 par common shares): 1955........ ...0.12fc 1956-58.. .... 0.65 1959....... ....0.52^ (On no par shares after 3-for-2 split): 1959............. 0.12% 1960-64 .... ....0.50 1965....... .... 0 73i 1966 .. 0.78% 1967-68 .... .... 0.90 1969....... ....... 0.95 1970 1.10 1971.......... ....0.85 1972....... ....... 0.45 1973 0.40 1974-75 .........1.00 1976....... ....... 1.10 1977 .......1.35 1978.......... .1.57% 1979............... 2.00 1980 2.25 1981.......... ....2.40 1982..........._...1.75 1983-85...........1.00 1986........... ....1.00 1987............... 0.55 (On no par shares after 2-for-l split): 01987 ............. 0.15 1988 jqj'1 1990-92. .. . 1995 .............. 1.80 1993 1.10 01996-98 | v, j J i JjJ E Plus 25% stock in 1934 and $1 per share in 15-year deb 3Vjs, 1951 paid in 1936 0 Stock dividends paid- 1947 1950 and 1952, 10%; 1953, 1954 and 1955, 5%: 195a,'l Plus rights distribution. See below E To Apr. 1 ' OPTIONS - A summary of stock option activity L related information follows: - (in thousands): Outstanding at January 1, 1998 Granted . Exercised . Canceled ....................................................... Outstanding at December 31. 1998 ................ Exercisable at Decemberr 31,1998................... Available for grant.......................................... PREEMPTIVE RIGHTS - None. DIVIDEND DISBURSEMENT AGENT - Ion Shareholder Services LLC TRANSFER AGENT & REGISTRAR - Chased Shareholder Services LLC, South Hackensack, NJ SECONDARY EXCHANGES - Chicago Exchange. LISTED - New York : RLM PRICE RANGE-(in $): 1998 1997 1996 1995 High....................... 68% 79% 61% 64% Low. . ......... 46% 56%6 48% 46% OFFERED - On July 6, 1937, the unsubscribed | of shares originally offered to stockholders was publicly at $17 per share by Lehman Bros and I & Co., New York. (1,500,000 no par shares) at $38.50 per share <1 29, 1977 through Dillon, Read & Co, Inc., Sachs & Co.. Reynolds Securities, Inc. and asst Proceeds for general corporate purposes. CAPITAL HISTORY - Onginal capital stock i sented by class A and B no par common shangj converted in October 1929 into one class of c~ stock (no par) and class A received in exch shares of common for each share held while the.C common was exchanged on a share for share b PREFERRED STOCK PURCHASE RIGHTS la] 1987, Co.'s board of directors declared a dividea^C bution of one preferred stock purchase right I outstanding share of Co's, common stock effec 1. Initially the rights will not be exercisable 0M1 cal form. The privilege of entitlement will trade! common stock. However, should a person or p acquire 20% or more of Co.'s shares or (ii) a offer to acquire 30% or more of the shares, t will become exercisable on the earlier of 15 dayfj or 10 business days after (ii) and separate representing the rights will be distributed. At t the rights could begin to trade independently f" shares If the rights become exercisable, a noldcfj entitled to buy from Co. Viooth of a share a| participating stock, series A of Co. for Sl25,Irr involved in a merger or other business comtir any time after the rights become exercisable, I will be modified so as to entitle a holder to buy ftflj of the acquiring company's common sharc*r~ market value of twice the exercise price of cackt a 20% holder acquires Co. by means of a revert*! in which Co. and its shares survive, or engafrtj dealing transactions with Co., each nght note the acquiror would become exercisable fortti of shares of the corporation's common that time have a market value of two times price of that right. . The rights will expire on Dec. 1. 1997. The be redeemed by Co. for $0.05 per right Pn0f dav after a public announcement that 20% shares of common stock have been acquire** -J REYNOLDS & REYNOLDS CO. History: Co. was founded in 1866. 1889. In Oct. 1971, Co. acquired Dealer-Mai ysis Corp., Birmingham. Ala. (liquidate In Aug. 1972. Co. acquired Computer 2y Denver, Colo, (liquidated in 1973). > ^ On Dec. 31, 1972, Co. acquired Sharing, Inc. for 21.668 class A comm0" On Oct. 1, 1973, Co. acquired Dw Computing. Inc. for 31,500 class A ^<^jtnn^Ke**|| additional 21,000 class A common pending the realization of certain sa e 1976 Cvl In July 1978, Co. acquired Data sy3 $2,130,000. -jui-i On Oct. 1. 1979, Co. acquired theo^j^ assets of Accumation Inc. for $6.00U- On Jan. 2, 1980, Co. acquired the ReyZon Computers from Zonic Tec Inc. for $1,300,000. . On June 9, 1981, Co. incorporate^ Corporation, a wholly owned subsi , ^ On Nov. 2, 1981, Co. incorpora Leasing Corporation, a subsidiary 1 Corporation. a. 3.