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a cash basis this past year . The Company's debt-to-capital ratio now stands at appr oximately 44 per cent, its lowest level in four years and well within the ranges of our long-held investment grade cr edit rating. W e continue to r ewar d our stockholders with an immediate and pr edictable re t u r n o n y o u r i n v e s t m e n t , h a v i n g p a i d o u t n e a r l y $ 2 0 0 m i l l i o n i n c a s h d i v i d e n d s o v e r t h e p a s t five years. 

The rigor ous discipline of our Economic V alue Added (EV A ® ) system has enhanced our strategic ability to prudently manage the Company's assets for long-term gr owth. Now entering our thir d year since formal implementation, EV A r einfor ces the r esponsibility held by all Harsco employees to think and act like owners when committing the Company's capital, and has become the principal driver of our management incentive compensation pr ogram. The Company's impr oved EV A performance in 2003 exceeded our targets. W e look for further EV A impr ovement in 2004 and beyond. 

We n o t e t h a t o u r c o n t i n u e d d i l i g e n t c o m m u n i c a t i o n t o t h e i n v e s t m e n t c o m m u n i t y o f H a r s c o ' s strategies and accomplishments has heightened awar eness as well as market valuations of HSC common stock. Our str ong commitment to long-term gr owth in expanding worldwide industry sectors is being understood and appr eciated by analysts and investors. 

We h a v e e s t a b l i s h e d a s o l i d f o u n d a t i o n f o r H a r s c o ' s f u t u re . We h a v e w o r k e d h a rd t o b u i l d market-leading positions in long-term businesses that we know and understand. W e will continue to invest strategically and prudently , car efully considering the political, economic and cultural risks that may arise. 

It has been my privilege to lead your Company for ten years, and I am looking forwar d to the next phase of our jour ney . 

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Mar ch 11, 2004 

"Let us go forwar d together ." 

Wi n s t o n C h u r c h i l 

