Good morning, ladies and gentlemen, and welcome to the MSA second quarter earnings conference call. At this time, all participants are in a listen-only mode, and later we will conduct a question-and-answer session. Please note that this conference is being recorded. I will now turn the call over to Mr. Paul Uhler. Mr. Uhler, you may begin.

Good morning, everyone, and welcome to our second quarter earnings conference call. As Hilda said, I’m Paul Uhler, Vice President of Human Resources and Corporate Communications, and I am filling in today for our Communications Director, Mark Deasy, who is on vacation. Joining me on the call today are Bill Lambert, President and Chief Executive Officer; Dennis Zeitler, Senior Vice President and Chief Financial Officer; Joe Bigler, President of MSA North America; and Rob Cañizares, Executive Vice President and President of MSA International. Our second quarter earnings release was issued this morning at 8:30 and we hope everyone has had an opportunity to review it. The release is posted on the home page of our web site at www.msanet.com. This morning Bill will provide commentary on our second quarter. He will be followed by Dennis, who will review our financials. And after Dennis' comments, we will open up the call for questions and plan to adjourn by about 10:45. Before we begin, I need to remind everyone that the matters discussed on this call, with the exception of historical information, are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements, including without limitation, all projections and anticipated levels of future performance, involve risks, uncertainties and other factors that may cause our actual results to differ materially from those discussed here. These risks, uncertainties, and other factors are detailed from time to time in our filings with the Securities and Exchange Commission, including our most recent Form 10-Q, which was filed on April 30, 2009. We strongly urge you to review all such filings for a more detailed discussion of such risks and uncertainties. Our SEC filings can be easily obtained at no charge at www.sec.gov or www.msanet.com and a number of other commercial web sites. That concludes our forward-looking statements. At this point, I will turn the call over to Bill Lambert for his comments. Bill?

Thank you, Paul, and good morning, everyone. Let me begin by saying thank you for joining us today on this conference call and for your continued interest in MSA. Presumably, all of you have seen our second quarter earnings release and have our financial figures with all comparisons corresponding to the equivalent second quarter of 2008. Our second quarter results show the impact of the ongoing economic recession and its effect on MSA's businesses. As you saw in our press release, consolidated sales in the quarter were $227 million, decreasing 66 million or 22% compared to the same period a year ago. About one third of this decrease was due to weakening foreign currencies this quarter versus a year ago and another third due to decreased US military sales, which I will discuss in greater detail in just a minute. MSA gross profit as reported decreased 26.3 million due to the significant decrease in sales as well as a decrease in sales of higher margin product lines. Reported net income decreased 38% to $7.5 million on a 22% sales decrease. Comparing quarters between years, we saw significant devaluations of major global currencies and regions where MSA conducts business. On a currency adjusted basis, our consolidated sales decreased $45 million compared to second quarter of a year ago or about 15%. Sales decreased most significantly in North America where sales were down 24% from a year ago. Europeans sales in local currency were down 7.5% and international when stated in local currencies were flat from a year ago. Overall consolidated gross profit showed a moderate 60 basis points decrease. European and international segment gross margins are experiencing downward pressure caused by two major factors. The first relates to a product line that continues to be heavily weighted towards large government contracts…

Thanks, Bill. Good morning, everyone. I would like to give you some further insight into our second quarter performance and comment on the balance sheet and cash flow statements. Additional information will be available later today when we file our form 10-Q with the Securities and Exchange Commission. As Bill mentioned, sales in the second quarter of 2009 were $227 million. Compared to the second quarter of 2008, sales were down 22% with decreases in each of our three geographic segments. However, when you adjust our sales for the relative strength of the US dollar compared to the second quarter of 2008, our sales are down 15% in total, which is a combination of North American sales down 24%, Europe down 11%, and no change in international. By markets, the fire service is down 5%, military down 53%, and core industrial business was down 20%. Adjusted for currency rate changes, fire service is up 2%, military is down 51%, and industrial is down 11%. Not to confuse anyone, but another useful comparison is to look at the sequential change in sales since the first quarter of this year. On this basis, consolidated sales actually increased by 4% while military sales were down 27% compared to the first quarter. Reflecting the transition to the new ACH contract, fire services inched up 1% and industrial sales increased 15%. As I mentioned, North America sales in the second quarter were down 24% compared to 2008 comprised of a 3% decrease in fire service, a 63% decrease in military, and a 16% decrease in industrial sales. As we discussed in April, there is a gap in ACH production as we transition from the old contract, which ended in mid May to the new contract that will begin production later this year. Our international sales…

Thank you. (Operator instructions). And our first question comes from Walt Liptak from Barrington Research. Walt Liptak – Barrington Research: Hi, thanks. Good morning guys.

Hi, Walter. Walt Liptak – Barrington Research: You know I guess the first question, in Dennis' comments, you know he was talking about the price competition and the business has got more competitive, it sounds like especially in Europe. And I'm a little bit confused because on the flipside, Dennis you talk about you now the some of the improvements with cost take outs. So I guess my question is, is the gross margin at 37.5%, is that sustainable you know with the military running off in the face of you know some of these increased pricing and throughput issues?

Hi, Walt. That is a tough question. Going forward, we saw a lot of price pressure in the second quarter. Whether we should anticipate it to be worse in the third or fourth quarter, I couldn't make that call. The military business will ship more in the second half, that will have some impact, but if you're looking for a forecast for the gross margin rate for the second half of the year… Walt Liptak – Barrington Research: Okay, that helps. You had the pricing pressure already in the second quarter, you're not talking about this, this is something that is trending worse?

I'm looking at my two geographic presidents to see if they think it is going to trend worse in the second half than it was in the second quarter?

I think from North America's perspective, on the commercial side with our brand and our strategic pricing and some of the cost improvements we have seen, I would expect our margin to maintain what was seen in the second quarter. However, there'll be increased military shipments in the second half of the year that could have an effect negatively on the gross margin to some degree. Rob Cañizares: On the international side, Walt, the significant effect is due to some big devaluations that occurred in certain countries. Since we ship products from Germany and from the US into countries like the UK and Eastern Europe which have separate currencies and they also have local suppliers, some of the pressure comes because of the dislocation that occurs related to those exchange rates. Luckily those rates have turned back in the right direction in the last quarter, but we really can't tell that it will happen in the next one. The same happened in Latin America, South Africa and Australia in the first quarter, and they improved a little bit during the second quarter, but again we can't really predict what exchange rates will do. Walt Liptak – Barrington Research: Okay. So it sounds like – can we now with North America and Europe that maybe things are about the same and you might have, if you're really going to have a lower gross margin because of increased military?

That's a good reason you are going to get from us, I think. Walt Liptak – Barrington Research: Okay. And then let me ask another one about US fire which trended roughly flat and international credit trended well too, you know, and if you – and what that might look like given the AFG funding trending down for the 2010 period?

Well first, as you know, the 2008 funding, Walt, is just about done. I think that were a few hundred thousand dollars on supplemental funds but 2008 AFG funding is complete. I would expect going into third quarter here there will be a relatively slow period for municipal spending because the budget cuts and AFG 2009 has not been released yet. The latest word on 2009 being released, it could be as early as this Friday, July 31. On the other hand, it could really get into late August or even into the beginning of September, really don't have any additional information as to when the 2009 funding will be released. As far as 2010 is concerned, both the Senate and the House Committee have proposed about $390 million; that certainly is a pretty significant decline from the 545 million that was in the 2009 program, and they are – that hopefully will be released, you know who knows, July, August, September of 2010. But that is only a proposal that went through both the Senate and House Committees, that 390 million. And I do know there is some work that is being done to try to increase that. We will have to see where 2010 goes. I think everyone is anxiously awaiting for the 2009 money to be released, which is really a sauce up (ph). Walt Liptak – Barrington Research: Okay, thanks guys.

You're welcome.

Our next question comes from Brian Ruttenbur from Morgan Keegan. Brian Ruttenbur – Morgan Keegan: Great. Thank you very much. This is Brian. On your cost reductions that you're talking about, 401(k), short work week, cuts in management, what was the annual cost that you saved on those recent cuts?

The one we did in the first quarter, North America, the voluntary retirement program, that was about $5 million annually in cost savings. The ones we did in June which was a management pay cut which was a global thing and the 401(k) suspension in the US, that was about $400,000 per month. So on an annualized basis, it'll be another 5 million bucks, but of course we didn't have the benefit for the full year. In the third quarter, the short work week in Germany is roughly $250,000 to $300,000 a month, and the French one will be somewhere in the range of $100,000 a month, and that won't be until September, maybe October 1. Those are the specific program's Brian. But as I mentioned, we actually get at least that same amount of savings just by controlling our other costs, advertising, travel, consultants, everything on everybody's budget. They have done an extremely good job of being very prudent in their spend. So it is not just the special programs. It is some really good cost control. Brian Ruttenbur – Morgan Keegan: So on the SG&A side, do you think the logic using second quarter numbers of you had 56 million in SG&A expense, the SG&A expense in third quarter should be down 2 million to 3 million, is that logically right, or am I missing something?

From the specific programs, you would see about another 2 million, assuming that we can hold on to all the other cost savings that we are doing. Brian Ruttenbur – Morgan Keegan: Okay. And then R&D, it is just going to be potentially flat lying around these levels?

I think there is some holdback on R&D in the first half of this year, I think we will see – it won't be back up to last year's levels but I don't think you're going to see a $1 million a year – $1 million per quarter reduction. Brian Ruttenbur – Morgan Keegan: Okay, but you did…

It'll still be below – it'll be below last year's numbers, yes. Brian Ruttenbur – Morgan Keegan: It'll be below last year's numbers but higher than second quarter's numbers?

Right. Brian Ruttenbur – Morgan Keegan: Okay, what is the R&D spend on research in the next SCBA, what is the spend on in that area?

We have got a lot of different activities going on, Brian. Next-generation SCBA, next-generation sensors and for gas detection products, next-generation helmets for the military, next generation helmets for fire service, so it is in a broad area across our product lines to improve the performance of our product and competitive advantages that MSA can achieve. Brian Ruttenbur – Morgan Keegan: Okay. The tax rate for the third quarter and the rest of the year should be at these levels or lower, higher?

36% is probably a good a guess as any at this point. Brian Ruttenbur – Morgan Keegan: Okay. And then your inventories and your AR, great job there by the way, where can you take this to?

Well, a lot of what we have done so far in receivables of course is because of the decrease in sales. But we have been successful in actually reducing our days sales outstanding in most geographic not by a lot but (inaudible). Brian Ruttenbur – Morgan Keegan: Where are DSOs running right now?

They vary dramatically by region but it is something like 60 days in North America, and a little more than that in international, less than that in Europe. It averages out to around 60 some days. Brian Ruttenbur – Morgan Keegan: And the goal is to get to a certain days or?

Well, you know, we're not actually – right now we're just trying to control receivables and bad debt, potential bad debt expenses. The inventories are where we have to grow opportunity. We've hired some very good new people to manage logistics, both on the front end and back and, finished goods as well as purchasing, and work in process. They have done some very good things in a way of quick fixes they can find, but there is some substantial process changes that I would expect us to see over the next couple of years that will continue to drive down inventory. So we have made some quick fixes but you should see a gradual decrease from process improvement. There might be some offset as the business picks up, but we will continue to make improvements in inventory and in payable which is a smaller number. Brian Ruttenbur – Morgan Keegan: Are there – and then final question, any plans given the good cash flow and the beaten up stock to start aggressively buying back down your own stock or do you want to make acquisitions, what is the plan to use to you capital on your balance sheet?

The stock repurchase plan is something that the board of directors discusses at each meeting and that won't be discussed again until the August board meeting, but I really couldn't comment.

And I would only comment on the inorganic growth side Brian that we continue to evaluate opportunities. We have a strategic plan that we have put together that we established last year, has an organic growth focus to it, but we continue to evaluate other opportunities, especially in these economic times as we can. So I'm trying to be as non committal there as I can possibly be and as vague, but to let you know that we are evaluating them but that is not the emphasis of our strategic growth plan. Brian Ruttenbur – Morgan Keegan: Thank you very much.

You're welcome, Brian.

Our next question comes from Richard Eastman from Robert W. Baird and Company. Please go ahead. Richard Eastman – Robert W. Baird: Yes. Good morning everybody.

Hey, Rick. Richard Eastman – Robert W. Baird: Just a quick question on Europe, maybe for Rob, but given the trend in the business there, the pricing pressure there, as we move into the second half of the year, is there an absolute commitment to keeping Europe profitable? Rob Cañizares: Yes. Richard Eastman – Robert W. Baird: So with the cost reductions that we have taken out and may be the backlog, is that up at all or… Rob Cañizares: No, Rick. That backlog is pretty stable at this point. Richard Eastman – Robert W. Baird: Okay.

But we should be able to keep it profitable at this time. Richard Eastman – Robert W. Baird: Okay. And then also could you just remind us what was the restructuring costs absorbed in the quarter?

Restructuring costs right around a million dollars, I think it was 966. Richard Eastman – Robert W. Baird: Okay. So 966, okay, was absorbed in the quarter, and was most of that in the operating expense line or --?

We would put that as a separate line on the P&L. Richard Eastman – Robert W. Baird: Okay, I'm sorry.

You are right. It is in manufacturing locations. Richard Eastman – Robert W. Baird: Okay, my mistake. And then, Bill, as you move forward, you know again I'm just thinking of the US fire service business and maybe the prospects there, we have got an 2009 AFG program that is flattish perhaps followed on by some reductions there, does that trend play into your planned cost restructuring efforts? I mean are you able to offset that projected lower volume in the higher margin business?

Well, I think we can. I mean the short answer to your question, Rick, is yes, it plays into our planning for sure. There are a couple of opposing forces here that are going on in the US fire service. On the one side, you have got AFG funding which is downward pressure on available funding. As Joe commented, for this year, the funding level was – or for this year will be 540 million for 2010. It is not yet been established, but there is some indication it will probably be around 400 million, 390 million to 400 million in that range. So there is downward pressure from Congress and certainly from the President on spending on this program. You also have a bit of downward pressure in the municipalities because of the tax revenue situation and they just don't – they have become very, very dependent on this government funding. Now on the upward pressure, what you have is, you have most of these large SCBA purchases were made back in the 2003, 2004, somewhat 2005 time period. And so you have got SCBA now that are approaching, especially in fire departments (inaudible) got SCBA that are approaching limits on their life and conditions. And so as we have got certain headwinds developed from available funding, we have also got the pressures on the other side where the equipments just simply needs to be replaced and upgraded to meet some of the new standards that are out there. So and I think longer term, we will revert back to maybe something, growth rates in the fire service that were pre-2003, maybe even pre-2002 levels, which were nice solid steady increases and gains in market share because of technology advantages that we bring forward. AFG funding and as a result of the 9/11 attacks, certainly increased focus on municipal fire departments and they bought a lot of new equipment. But that new equipment doesn't last forever and has a replacement cycle associated with it. Richard Eastman – Robert W. Baird: Okay. And just on the military side, are we back in full production on ACHs?

Not yet, Rick. Not yet. We have got a contract that we announced earlier this year, $45 million contract for the ACH, and we have had some delays in our first-order approval. We had expected to be back in full production during the month of July or certainly by early August, and it looks like we are probably still a month away from that. I look for Joe Bigler maybe to provide some more color on that.

.: Richard Eastman – Robert W. Baird: Okay. And so one more question for Dennis, could you give us a sense of what the FX, the currency impact on the EBIT line was in the quarter? Would you have that?

No, I can't say I have that right on my finger tips. Richard Eastman – Robert W. Baird: Would it likely convert to kind of the corporate rate, is that reasonable?

You know when it comes right down to – well, when you look at the quarter, there wasn't much EBIT in Europe, and the euro is one that really moved against the dollar, right? Richard Eastman – Robert W. Baird: Yes, okay.

We're not talking about much there, so the international segment had a little bit over a $1.5 million worth of income, and you can look at something there that is say was about a 10% chip, but it is just not a big number overall. Richard Eastman – Robert W. Baird: But presumably that European EBIT that you show in the press release was impacted by the big currency impact there, correct? I mean it would be a negative impact, so is that profit understated in Europe? Local currency would be higher, correct?

Yes. I mean because all the way down through the P&L, I mean your sales are impacted, but all your expenses are impacted too, so it is still just the EBIT number itself. So you have factored just the EBIT by the change in the currency rate, it is just not a big number. Richard Eastman – Robert W. Baird: Okay, all right. Thank you.

Our next question comes from Dick Ryan from Dougherty & Company. Dick Ryan – Dougherty & Company: Hi, good morning guys.

Good morning. Dick Ryan – Dougherty & Company: So Bill, can you talk about on the military side the IOTV and then maybe the down select orders for the new UCH helmet, what the timeline is going forward on that, what should we expect in Q3 as far as upcoming testing and going into the end of the year?

Sure. I can provide some color on that but I would really look to Joe who has got more detail. Regarding the IOTV, the original IOTV hid for 736,000 vests, a decision on the original IOTV bid has not yet been made. We remain in the running for that business or at least a piece of that business and the latest information we have on the IOTV indicate that a decision is probably expected sometime within the next week or two, but I know that is getting to be a stale story, because every quarterly call that we have with investors, this IOTV award continues to just hang out there, and it doesn't seem to be much progress on that front. With regard to the enhanced combat helmet, the ECH and what we will see, we announced last week about a $4 million contract that we have received from the military, from the U.S. Army Marines to develop this next generation advanced enhanced combat helmet. And there are a series of steps here in that contract that MSA was not the only one. Let we also add, we were not the only ones to receive a contract at this point in the program. There are others who have also received developmental portion of the contract. And so we will all be then working diligently here to produce the helmet that we need to for them to go through some testing. And then assuming success in that regard then, we would then go into field evaluations. So production contracts on the ECH are far off, they are a number of quarters away from making that kind of a decision. So that is what I can tell you very briefly. And Joe, I would hand it over to you and ask you to fill in any other details you might have.

Well, as far as the IOTV, I can tell you we have been in touch with the military and the contracting officer. Our pricing with on the IOTV is firm through this product and we have been advised that we will hear something very very soon. So bottom line is I would expect to hear something on the IOTV this week. And as Bill said, on the advanced combat helmet, that is a 2 year contract for the Army and Marines. The maximum quantity in that contract is about 246,000 to 247,000 helmets is the maximum they can order over a two-year period. So that could be anywhere from $50 million up to $200 million, just depending upon how the Army and the Marines issue that contract to one supplier, two suppliers or whatever. And there is a number of phases to that contract. This is the first phase, the developmental side, there then is a field testing and more ballistic testing that goes on, probably know something about that, the results of that some time at the beginning of the fourth quarter. And then you actually get into first article testing if you make it through that, and that probably goes into February or March. So best guess as Bill said, we are several quarters away. If we were to get a production order and be successful, which we think we are well positioned for that, most likely that will happen the end of the first quarter, beginning of the second quarter, and effective probably in the third and fourth quarter of 2010. Dick Ryan – Dougherty & Company: Great, greet. Okay, Bill, on the international front, or maybe Rob, you talked about lower sales in Latin America, Australia, Africa, have you seen any turn in those regions as of yet?

I was just down there actually, I was just down in Latin America, and spent a considerable amount of time with our Latin American customer focus team and sales managers down there. I think I can say that we're seeing some slight improvements in the Latin American area. I think that the consensus is the worst is behind us in some – in that region of the world. Certainly in areas like China and the Middle East and some emerging market areas that we are focused on, the worst is very definitely behind us in those areas, and we are seeing some nice improvement. South Africa, the mining market there is tied very much to some precious metals mining, mineral mining, and platinum for instance out of South Africa is very tightly tied to the auto industry, and so as we begin to see the auto industry globally strengthen somewhat, then we're starting to see some improvement in that part of the business. But Rob, I will ask you to add anything more to that. Rob Cañizares: I think you said it, Bill. In Australia, we haven't really seen any turn around yet. Latin American seems to have bottomed out. We're not only beginning to see a lot of increase but we had a couple – three or four months of about the same level of activity. And South Africa – the results are relatively stable. So we haven't really seen the pickup but it seems to have slowed down the decline. Dick Ryan – Dougherty & Company: Great, thank you.

You're welcome.

Our next question comes from Jason Rogers [ph] from Great Lakes Review. Please go ahead. Jason Rogers – Great Lakes Review: Hello?

Hi, Jason. Jason Rogers – Great Lakes Review: Dennis, the $0.38 pro forma numbers you mentioned, are you taking out the restructuring charge and the currency loss?

Exactly. Jason Rogers – Great Lakes Review: Okay. And did you mentioned a cash flow from operations either for the quarter or the six months?

Yes. I can give you both of those. Cash flow from operations for the six months is 55 million bucks and that is roughly – I mean roughly half of that was in the second quarter. Jason Rogers – Great Lakes Review: Okay, thanks a lot.

You're welcome.

Your next question comes from Edward Marshall from Sidoti & Company. Edward Marshall – Sidoti & Company: Good morning, everyone.

Good morning. Edward Marshall – Sidoti & Company: I'm looking for the turn from the distributors, I have heard a few of these comments already this quarter, but you know it looks like the de-stocking kind of hit the bottom in April, have you seen any change in the behavior from buying patterns in your distributors in North America?

Well, I don't think that we have seen any kind of a strong behavioral change in our distributors. That was just with a couple of our largest distributors yesterday and talking to them about what they're saying, and I think that they are still being somewhat conservative in cash management and somewhat hesitant to restock at any strong levels at this point in time. The federal stimulus plan which everybody is anticipating will have some sort of an impact here in the US certainly, is I think that effect is still at least a couple of quarters off. The reason I say that is, out of that $770 billion in federal stimulus, only 11% is expected to be doled out this year in 2009. Maybe another 40% is expected to be doled out in 2010. So really not yet seeing anything impact out of the federal stimulus plan. But there are certain areas, certain industries, the auto industry in particular, which has greater activity now than it did a quarter ago, where they had the plants closed and shutdown, but are not yet seeing distributors all of a sudden turn the spigot on in some strong meaningful way. Joe, I will look to you to add any color there?

Well, no, I think that is accurate. I think the aggressive de-stocking activities have really ceased to some extent, I think we are seeing a flattening out of that. Tremendous focus by major distributors in really shortening their supply chain, so they are not carrying as large an inventory as they receive orders from end users and manufacturers, we begin to see that much more quickly than before. And I think that trend will continue. So I think the worst is over in terms of de-stocking but certainly not a strong upward trend in stocking activities by the distributors. As far as the stimulus package, I think there has been generally some disappointment in that as Bill said, only about 10% to 11% of that money is out there. Where we have some effect is primary in highway construction. Apparently non residential construction, we have not seen major projects really take off yet, mostly it has been smaller projects that affected the highway market, highway construction to some extent, and DOE facilities. There has been some pretty good money that has been let out for DOE facility cleanup which we have participated in.

And then also just on the comment, that when we look at what is happening in the manufacturing sector and we look at what is happening in the construction sector, and you look at employment statistics, which the government provided some pretty accurate information, while we are seeing employment, the rates of decline are decreasing. That is the decreases in employment there are starting to bottom out somewhat. There are still declines. Unemployment in those areas, at least in the US, and as you well know is a lagging indicator, continues to shed jobs. So really not until we start to see this job shedding, if you will, stop and now start to add some jobs that I think we will really start to see distributors responding. Once they feel confident that the economy has – is not going to get any worse, I think that is when the distributors will really start to see – turn the valves back on. Edward Marshall – Sidoti & Company: So in North America what percentage of your sales is non residential construction or if you can break it out that way or maybe from the core industrial as a percent, however you have them?

You said how much of our North American business? Edward Marshall – Sidoti & Company: Or I mean if you can do it North America or if you can do a total core sales, however you guys break it out for non residential construction?

Yes. Residential construction is not even on our radar screen. It is just not a big factor. Edward Marshall – Sidoti & Company: Non residential?

Residential. I'm am just stating the fact. Edward Marshall – Sidoti & Company: All right.

In North America, roughly 60% of our business is what we call core industrial business, nonmilitary, non fire service. Of that 60%, a number of something like 15% to 20% would be commercial construction, infrastructure construction, you know highways, commercial buildings, et cetera. So that is about as rough a guess as we can do because we sell off through distributors, that is a large number of distributors, we don't have a certain set of distributors that only do construction projects. Edward Marshall – Sidoti & Company: Has that slowed down you yet? I mean listen to some of the distributors you know that could offer a second leg down in the de-stocking, have you seen that already trend at low levels?

Yes, In North America, we certainly have.

In fact that is the point I was trying to make, when you look at sequential quarters, our core industrial businesses are actually up somewhat from the first quarter.

Yes, if you look at unemployment within the construction market, just in the US, it is down 17% here in June versus 8% June of 2008 and about 5% versus 5% unemployment in June of 2007. So it is still set. The construction market is still headed down, it is just not headed as down as quickly. In terms of non residential construction, the latest projections on that is for 2009, we would be down about 3% to 9%, and going into 2010, will probably be somewhat flat to maybe perhaps 5% down. So the outlook on not residential construction although better in 2010 in major projects is not really a bright spot, but I don't see it getting any worse than the second half of this year than what was already seen in the first half. Jason Rogers – Great Lakes Review: Okay, good. And then lastly, Dennis, on the inventory reduction of 21 million, is that attributable to – is there any effect of currency to the decrease in inventory from the translation effects depending upon where you hold your inventory?

Now that is non currency. That is not right off the cash flow statement. Our cash flow statement strips out the currency impact. Jason Rogers – Great Lakes Review: Excellent. Thank you guys very much.

You're welcome.

We have no further questions at this time. I would like to turn the call over to Mr. Uhler for any closing remarks.

Thank you, Hilda. I just want to again thank everyone for joining us today. Also I want to remind everyone that an audio replay of today's call will be available on the MSA website for the next 30 days. So if there is anything you missed, please feel free to visit our site.

Thank you. Ladies and gentlemen, this concludes this conference. Thank you for participating. You may now disconnect.