Welcome to the MSA’s Second Quarter Earnings Conference Call. My name is Sandra and I will be your operator for today’s call. (Operator Instructions) I will now turn the call over to Mr. Mark Deasy. Mr. Deasy you may begin.

Okay. Thanks, Sandra, and good morning everybody. And welcome to our second quarter call for 2010, as Sandra said. Joining me on the call this morning are Bill Lambert, our President and Chief Executive Officer; Dennis Zeitler, Senior Vice President and Chief Financial Officer; Rob Cañizares, Executive Vice President and President of MSA International; and Joe Bigler, President of MSA North America. Our earnings release was issued this morning at 8:30, and we hope everyone had an opportunity to review it. If you need to secure a copy, it can be found on the homepage of our own website at www.msanet.com. This morning, Bill will provide commentary on our second quarter. He’ll then be followed by Dennis who will review our financials, and after Dennis’ comments we will open up the call for your questions. As always before we begin, I want to remind everybody 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 SEC, including our most recent Form 10-Q, which was filed on April 29, 2010. You’re strongly urged 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, MSA’s own website and a number of other commercial sites. That concludes our forward-looking statements. At this point, I will turn the call over to Bill Lambert for his comments on our second quarter. Bill?

Okay. Thank you, Mark, and good morning, everyone. Let me begin by saying thank you to all of you for joining us here today on this conference call and for 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 2009. I’ll start my comments by saying that at a very high level, during the quarter we saw signs of economic stabilization in many parts of the world in which we operate. And we saw growth in our Africa and Latin American markets and in portions of the North American economy as well. Certain indicators of global industrial and manufacturing output continue to improve in the quarter, even though global unemployment levels remain high by historical measures and are forecasted to remain high over the rest of 2010 and into 2011. As we had discussed on first quarter call, our incoming order books strengthened the late in the first quarter of 2010, and has clearly helped us weather a decline in Military and Fire service business during the second quarter. I’m pleased to report that our order book remains relatively strong and continues to provide us with a certain amount of cautious optimism that the core industrial markets we serve, which makes up nearly two thirds of our consolidated sales, are slowly and steadily working their way out of this global economic recession. The emphasis we are placing on driving core industrial business, that is the business outside of the Fire service and the Military, is without question generating results as on a year-over-year comparison. North American industrial sales increased 14% and our International segment, our local currency industrial sales were up 21% when compared to the second quarter of…

Thank you, Bill. Good morning everyone. I would like to give you some further insight into our second performance and comment on the balance sheet and cash flow statements. Additional information will be available later today when we’ve file our Form 10-Q with the Securities and Exchange Commission. As Bill mentioned, sales in the second quarter of 2010 were $237 million, compared to the second quarter of 2009, sales were up 4%, with an increase of 19% in our International segment, 4% in North America and a decrease of 8% in Europe. By markets, the Fire service was down 11%, Military down 18% and core industrial business, which is two thirds of our business, increased 16% over last year. Currency rate changes did not have a significant effect on these numbers. Another usual comparison is to look at the sequential change in sales since the first quarter of this year. This gives us a better understanding of how we are recovering from this recession. On this basis, consolidated sales increased 12%; Military sales were 32% higher than the first quarter, Fire service up 8% and our industrial sales up 11%. As Bill said, North American sales in the second quarter were up 4% compared to 2009, comprised of a 6% decrease in the Fire service, a 24% decrease in the Military and a 15% increase in industrial sales. U.S. Fire service has certainly benefited from the ongoing release of ASG funding but that benefit has been more than offset by the real budget constraint that so many municipalities are dealing with due to the recession. As we have discussed for several quarters, our U.S. Military sales are depressed due to the gap and ACH production as we transition between contracts. We are hoping that this will not be an issue…

(Operator Instructions) The first question is from Brian Ruttenbur from Morgan Keegan. Brian Ruttenbur – Morgan Keegan: Okay. Thank you very much. Looks like things are bouncing back for you. Let me talk about the next couple of quarters, not to get too specific but just try and understand trends. Will revenue – it looks like will be up from second quarter. Is that where you’re heading with the combat helmet starting to get produced, the ACH3s, is that the trend you’re looking at?

Well certainly we have no essential revenue from combat helmets or – yet no revenue from the ACH3 in the second quarter, so yes, Brian. And the third quarter we fully expect to see that increase quite dramatically as we ramp up to full production. Brian Ruttenbur – Morgan Keegan: Okay. Now the $45 million contract, you expect to ship on that, 100%, by when?

Joe, I look to you based on that –?

That kind contract will go through the third quarter to the fourth quarter of next year. Brian Ruttenbur – Morgan Keegan: Okay. But the majority will be – is it going to be front-end waited, equal waited? How do you plan to ship that?

I would say beginning in the second half of this year. Particularly beginning in the end of the third quarter, beginning of the fourth quarter. We will have two plants on board. We’ll bring our (inaudible) plant on I hope the beginning of the fourth quarter, and obviously have our new Port plant up in Vermont into full production. So with both plants in this whole production, we should see good invoicing in the fourth quarter, equally balanced through the rest of 2011. Brian Ruttenbur – Morgan Keegan: So it’ll be a smaller ramp in third quarter and then the bigger ramp up will be on the fourth quarter and then kind of equal going forward. So it would be more like a couple of million going up to double digit, 10 million something like that.

That’s our expectation. Brian Ruttenbur – Morgan Keegan: Okay. Thank you very much.

You’re welcome, Brian.

The next question comes from Edward Marshall from Sidoti & Company. Edward Marshall – Sidoti & Company: Good morning guys. I was in the impression that ACH3 up in May. What was start-up delays that happen? What makes sure they’re now behind you and you’ll begin shipping? I think it’s a couple of quarters now and I don’t mean to press but it’s been a couple of quarters that we’ve expect that this helmet contract to kind of start ramping up. So what gives you kind of the confidence as we move forward in the particular start up.

I said in my comments that it was clearly a disappointment. We fully expect it to be up and running in shipping product and in the month of May as well. I think we indicated that to you on the last investor conference call. The issues we’re getting into first article approval. We received all of that. We will get into production during the balance of this year. Edward Marshall – Sidoti & Company: You participated in (conserval) in the ACH. But the experience, is it relevant here?

I think that this is something in producing this product, the product is always the same., the improvements, the requirements that didn’t exist before. Edward Marshall – Sidoti & Company: Imagine the military’s running quite additional competitor coming in here to compete?

So we do fully expect another proposal from the government. On the ACH3, that is MSA and another private company. Keep in mind this $45 million contract that we have. This is a contract that was issued by DSCP, it’s defense supply, and they basically set p their own laboratory. The manufacturers are dealing with these people. These are the different cast of characters that the manufacturers are dealing with. Edward Marshall – Sidoti & Company: Good. Thank you guys for the call.

The next question is from Walt Liptak from Barrington Research. Walter Liptak – Barrington Research Associates, Inc.: I don’t want to beat the dead horse on the helmet issue, but there is – understand delays from the manufacturers in Ohio, or not delays, but I guess there was a recall. I’m wondering if the issue is that the ACH is more difficult to manufacture and that’s causing your production delays?

I’ll comment on that. First of all, the helmet that was manufactured by the competitor was not the ACH3. The issues that we’re wrestling here, I don’t think at all related to some of the quality issues that the competitor experienced and so I would not cost the ramp up issues that the competitor had on a previous generation on product. Walter Liptak – Barrington Research Associates, Inc.: Dennis, you mentioned in your commentary that the charges this quarter equated to about $0.05 per share. If you have three, three cents with the quarter with the charge and that white adjuster, we’re not looking at 28.

The difference is only $0.02. We appoint 33 and the pro forma 35. Currency gains are 1.7 million.

North America was .8, and .3 million was international and 1.5 million Europe. That’s the break out of the 2.6. Walter Liptak – Barrington Research Associates, Inc.: Okay. Well thank you.

The last question is from Dick Ryan from Dougherty. Dick Ryan – Dougherty: Good morning guys. You mentioned Africa and Latin America. Can you talk about the Asia Pacific area?

Sure. In Asia, we have sort of a mix tag. Because Australia is a big part of Asia and Australia is a developed economy is not really picking up that fast. The raw materials segment have begun to improve. But Australia really didn’t have a very deep recession. So Australia is sort of a stabilizer in that part of our region. China has had growth but not quite as fast we had expected and anticipated. Southeast Asia is doing relatively well. Japan which is an economy that is relatively week in total. So in total, Asia is the combined factor relatively slows steady growth but it is Australia is g=relatively flat and wrist is growing at a great rate. Dick Ryan – Dougherty: Say Joe, I haven’t heard much on the ACH testing. Anything changing there? Is there anything going on with either if those two opportunities?

They’re in the process of testing or submitting to the government and that’s where we are. So it’ll probably be another few months before we hear anything on the ACH. Dick Ryan – Dougherty: Okay. And though just one maybe high-level question. Honeywell’s acquisition to Experian. Does that change any competitive dynamic or wasn’t much to begin with? Are you seeing anything there with that acquisition?

Well, sure. I think, an acquisition like that changes competitive dynamics. Of course we full anticipate that. We haven’t seen a whole lot just yet. I don’t think that DO has completely closed, it has received government approval so we would that close during the third quarter, but we’re anticipating that that will have competitive impact in the market sure. Dick Ryan – Dougherty: Okay, great. Thank you guys.

You’re welcome.

Thanks, Dick.

Okay. Well, I want to thank everybody for staying on. We went a little bit longer than our normal time. But hopefully everybody found today’s session insightful. I want to remind everybody that an audio replay of today’s call will be available on our own website for the next thirty days. And with that, on behalf of Bill, Dennis, Joe and Rob, thank you again for participating on today’s call. And we look forward to talking with you again soon. So long.

Thank you, ladies and gentlemen. This concludes today’s conference. Thank you for participating. You may now disconnect.

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