Commenting on the Company’s results, President and CEO Tom Mark said, “We are pleased that we continued to generate positive operating results in the past quarter in spite of softening business conditions. At this point, our near term challenge is to manage our way through the post-hurricane disruptions in the chemical industry. For example, we are working on ways to compensate for significant raw material and energy cost increases. On the other hand, there is a significantly improved outlook for demand in the construction industries. Our objective is to build operating momentum to support us as we enter into a period of substantial funding requirements for working down our liabilities for pension and environmental matters.”

Business conditions softened somewhat in the third quarter largely due to weather related interruptions and third quarter net sales were $18.2 million compared to $19.8 million in the same period last year and $19.0 million in the second quarter of 2005. On a year-to-date basis, sales were $58.6 million, compared to $56.4 million in 2004. Both operating units, Harvel Plastics (Harvel) and The Elco Corporation (Elco), experienced reduced demand during September as the result of disruption from the hurricanes which contributed to lower sales in the third quarter. The lower third quarter sales resulted in reduced margins, however the earnings impact of this was largely offset by improvements in operating expenses.

In the early part of the fourth quarter market demand has improved significantly in the aftermath of the hurricanes and sales have been strong for both businesses. Harvel achieved record sales and earnings in October while successfully managing industrywide raw material shortages and significant increases in resin costs. Elco’s sales have improved and the business is working on ways for offsetting rising raw material and energy costs.

Investigation continues into the source and remedy of contamination discovered during required follow up sampling of the Fields Brook environmental site in Ashtabula, Ohio which was remediated three years ago. Until additional investigation is performed, it is not possible to estimate the cost to the company for the eventual remedy. We expect to have more information available at the end of the year, at which time it is likely that a charge to income will be taken to provide for these costs.