SECTION:
POLICY AND AUTHORITY STATEMENT

Since its incorporation in 1968, Custom Alloy Corporation, "The Company", has played a unique role in the power, petrochemical, and refining industries by furnishing tubular and non-tubular butt-weld pipe fittings and pipe heretofore not readily available.

The Company has always recognized the need for a quality planning program, incorporating quality assurance and inspection. Indeed, since the Company's inception, quality and service have been the keystones of its manufacturing philosophy.

Therefore, the Company has instituted the Quality System Program Manual(*) to meet the requirements of specifications defined under the scope of activities.

Our quality system organization includes the preparation and review of written procedures, monitoring of all activities concerned with the control of operations and materials, conducting of examinations and tests, qualification and certification of personnel, periodic audit of the overall Quality System Program, taking of corrective action (when necessary), retention of essential records, submission of Certified Material Test Reports and Certificates of Compliance for materials, and the qualification of vendors.

The authority and organizational freedom is hereby granted to the Director of Quality to:

1. Stop work, identify Quality System problems; initiate action to prevent the occurrence of product non-conformity; identify and record any product quality problems;
2. Initiate, recommend, or provide actions, through designated channels, which result in solutions,
3. Verify implementation of solutions to those problems,
4. Control further processing, delivery, or installation of a non-conforming item until the deficiency or unsatisfactory condition has been corrected and proper dispositioning has occurred.
5. Prepare, revise and issue this Quality Manual and administer this Quality System to verify its implementation.

Differences which may arise between the Director of Quality and Department Heads shall be presented to the undersigned for disposition, which shall be made without negating the applicable Code, Specification or this Manual.

date: 2/25/99 
Adam F. Ambielli, President, Custom Alloy Corporation

(*) If you are interested in the complete QA Manual, please contact us and we will send you a copy immediately customalloy@net4all.be or cacinfo@ptd.net