Comments by Dave Kelly, CEO

In 1850, John Dixon Matthews immigrated to Pittsburgh, Pennsylvania from Sheffield, England and set up shop as a skilled engraver. Today, 150 years later, his innovative principles of quality and customer service have molded Matthews into a global corporation that is dedicated to creating value for our employees, customers and shareholders.

Our employees, past and present, are the bedrock of our success. Dedicated men and women, proud of what they do, are the driving force behind Matthews' quality products and extraordinary levels of customer service. It is their devotion that creates real value for our customers.

Only companies that create value for employees and customers can hope to create shareholder value. We intend to build shareholder value by consistently delivering annual growth in sales and earnings in the range of 10-15 percent.

Matthews' worldwide leadership in the architectural identification, imaging, marking products and memorialization industries is the direct result of continuously offering products and services that exceed our customers' expectations. During the past five years, we have diversified our business and expanded the Matthews family through acquisitions and mergers. We now have branches, plants and business partners in Australia, Canada, France, Italy, Spain, Sweden, Germany, the United Kingdom, the Netherlands and the Pacific Rim.

Our internal growth strategy calls for the continuous expansion of both our products and services, as well as the geographical areas in which we operate.

As we enter the 21st century, we begin an exciting new chapter in Matthews' history. I am confident that we have the expertise, commitment and enthusiasm that are key to our continued growth and success.

Matthews International Corporation is indeed a wonderful company to work for! There is no better evidence of this than the second and third generation employees who have long years of service and the eager, talented new people who have joined our company. Together, we will continue to build our future based on "A tradition of quality since 1850."

Matthews Enters the Millennium Poised for Growth

Matthews entered the history books in 1850 when an immigrant named John Dixon Matthews began producing stencils, steel stamps, branding irons and various other marking and identification products from a small shop in Pittsburgh, Pennsylvania. Business flourished during the Civil War through the late 1800's, and at the turn-of-the century, the company grew from a partnership to a corporation. Today, Matthews enjoys the distinction of being known as the oldest continuously operating company in Pittsburgh.

A stellar reputation has been very important to Matthews. In addition to being known for producing the highest quality, custom-made products to identify people, products, places and events, Matthews has been a good neighbor to the community and a good employer to the men and women who work in its plants and branches.

From the beginning, Matthews was a company truly ahead of its time. In the early 1900s, James H. Matthews, the youngest son of the company's founder, introduced health insurance for employees and profit distribution. The company believed in the principle of "what's good for employees is good for the company and that's good for customers."

Matthews is organized into three business segments that include the Bronze Division, which accounted for more than half of the company's consolidated sales in 1999; the Graphics Imaging Group, which generated more than one-third of the company's consolidated sales last year; and the Marking Products Division, which represented 12.7 percent of the year's consolidated sales. Together these segments and their wholly-owned subsidiaries employ approximately 1,600 people who work in the company's 25 manufacturing and marketing facilities in seven countries on three continents.

Employee-owned for more than 30 years, Matthews became a public company by issuing an initial public offering in 1994. Matthews' shares are traded on the NASDAQ stock exchange under the symbol "MATW."