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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">UNITED
        STATES</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECURITIES
        AND EXCHANGE COMMISSION</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Washington,
        D.C.&#160;&#160;&#160;20549</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 18pt; FONT-FAMILY: Times New Roman">SCHEDULE
        14A</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Proxy
        Statement Pursuant to Section&#160;14(a) of the</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Securities
        Exchange Act of 1934</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><br></font>
        <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
        <div>
          <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">
  
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                <td style="WIDTH: 337px">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Filed
                    by Registrant:</font></div>
                </td>
                <td width="648">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline;" face="Wingdings">&#253;</font></font></div>
                </td>
              </tr>
  
          </table>
        </div>
        <div>
          <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">
  
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                <td style="WIDTH: 337px">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Filed
                    by a Party other than the Registrant:</font></div>
                </td>
                <td width="648">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline;" face="Wingdings">&#168;</font></font></div>
                </td>
              </tr>
  
          </table>
        </div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Check
        the
        appropriate box:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">
        <div>
          <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">
  
              <tr valign="top">
                <td style="WIDTH: 36pt">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline;" face="Wingdings">&#168;</font></font></div>
                </td>
                <td>
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Preliminary
                    Proxy Statement </font></div>
                </td>
              </tr>
  
          </table>
        </div>
        <div>
          <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">
  
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                <td style="WIDTH: 36pt">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline;" face="Wingdings">&#168;</font></font></div>
                </td>
                <td>
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Confidential,
                    for Use of the
                    Commission Only (as permitted by
                    Rule&#160;14a-6(e)(2))</font></font></div>
                </td>
              </tr>
  
          </table>
        </div>
        <div>
          <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">
  
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                <td style="WIDTH: 36pt">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline;" face="Wingdings">&#253;</font></font></div>
                </td>
                <td>
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Definitive
                    Proxy Statement </font></div>
                </td>
              </tr>
  
          </table>
        </div>
        <div>
          <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">
  
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                <td style="WIDTH: 36pt">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline;" face="Wingdings">&#168;</font></font></div>
                </td>
                <td>
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Definitive
                    Additional Materials </font></div>
                </td>
              </tr>
  
          </table>
        </div>
        <div>
          <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">
  
              <tr valign="top">
                <td style="WIDTH: 36pt">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline;" face="Wingdings">&#168;</font></font></div>
                </td>
                <td>
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Soliciting
                    Material Pursuant to &#167; 240.14a-12 </font></div>
                </td>
              </tr>
  
          </table>
        </div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font size="+0"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman; FONT-VARIANT: small-caps">Keystone
        Consolidated Industries, Inc.</font></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">
        <div>
          <hr style="COLOR: black" align="left" noshade size="3" width="100%">
        </div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Name
          of
          Registrant as Specified in Its Charter)</font></div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;</div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt">
        <div>
          <hr style="COLOR: black" align="left" noshade size="3" width="100%">
        </div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Name
          of
          Person(s) Filing Proxy Statement, if other than the
          Registrant)</font></div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Payment
        of Filing Fee (Check the appropriate box):</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">
  
            <tr valign="top">
              <td style="WIDTH: 36pt">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline;" face="Wingdings">&#253;</font></font></div>
              </td>
              <td>
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">No
                  fee required. </font></div>
              </td>
            </tr>
  
        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">
  
            <tr valign="top">
              <td style="WIDTH: 36pt">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline;" face="Wingdings">&#168;</font></font></div>
              </td>
              <td>
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Fee
                  computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11.
                  </font></div>
              </td>
            </tr>
  
        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div align="center">
        <table border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">
  
            <tr valign="top">
              <td style="PADDING-BOTTOM: 2px; WIDTH: 36pt">
                <div>&#160;</div>
              </td>
              <td style="PADDING-BOTTOM: 2px; WIDTH: 36pt">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">1)</font></div>
              </td>
              <td>
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Title
                  of each class of securities to which transaction applies: </font></div>
                <div align="left"><font size="2">______________________________________________________________</font></div>
              </td>
            </tr>
  
        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;</div>
      </div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">
  
            <tr valign="top">
              <td style="WIDTH: 48px">
                <div>&#160;</div>
              </td>
              <td style="WIDTH: 50px">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2)</font></div>
              </td>
              <td width="887">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Aggregate
                  number of securities to which transaction applies: </font></div>
                <div align="left"><font size="2">______________________________________________________________</font></div>
              </td>
            </tr>
  
        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;</div>
      </div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">
  
            <tr valign="top">
              <td style="WIDTH: 36pt">
                <div>&#160;</div>
              </td>
              <td style="WIDTH: 36pt">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3)</font></div>
              </td>
              <td>
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Per
                  unit price or other underlying value of transaction computed pursuant
                  to
                  Exchange Act Rule&#160;0-11 (set forth the amount on which the filing fee
                  is calculated and state how it was determined): </font></div>
                <div align="left"><font size="2">_______________________________________________________________</font></div>
              </td>
            </tr>
  
        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;</div>
      </div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">
  
            <tr valign="top">
              <td style="WIDTH: 36pt">
                <div>&#160;</div>
              </td>
              <td style="WIDTH: 36pt">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4)</font></div>
              </td>
              <td>
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Proposed
                  maximum aggregate value of transaction: </font></div>
                <div align="left"><font size="2">_______________________________________________________________</font></div>
              </td>
            </tr>
  
        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;</div>
      </div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">
  
            <tr valign="top">
              <td style="WIDTH: 36pt">
                <div>&#160;</div>
              </td>
              <td style="WIDTH: 36pt">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5)</font></div>
              </td>
              <td>
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                  fee paid: </font></div>
                <div align="left"><font size="2">_______________________________________________________________</font></div>
              </td>
            </tr>
  
        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      </div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">
  
            <tr valign="top">
              <td style="WIDTH: 36pt">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline;" face="Wingdings">&#168;</font></font></div>
              </td>
              <td>
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Fee
                  paid previously with preliminary materials.
  </font></div>
              </td>
            </tr>
  
        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">
  
            <tr valign="top">
              <td style="WIDTH: 36pt">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline;" face="Wingdings">&#168;</font></font></div>
              </td>
              <td>
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Check
                  box if any part of the fee is offset as provided by Exchange Act
                  Rule&#160;0-11(a)(2) and identify the filing for which the offsetting fee
                  was paid previously.&#160;&#160;Identify the previous filing by
                  registration statement number, or the Form or Schedule and the date
                  of its
                  filing. </font></div>
              </td>
            </tr>
  
        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">
  
            <tr valign="top">
              <td style="WIDTH: 36pt">
                <div>&#160;</div>
              </td>
              <td style="WIDTH: 36pt">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1)</font></div>
              </td>
              <td>
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Amount
                  Previously Paid: </font></div>
                <div align="left"><font size="2">________________________________________________________________</font></div>
              </td>
            </tr>
  
        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;</div>
      </div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">
  
            <tr valign="top">
              <td style="WIDTH: 36pt">
                <div>&#160;</div>
              </td>
              <td style="WIDTH: 36pt">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2)</font></div>
              </td>
              <td>
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Form,
                  Schedule or Registration Statement No.: </font></div>
                <div align="left"><font size="2">________________________________________________________________</font></div>
              </td>
            </tr>
  
        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;</div>
      </div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">
  
            <tr valign="top">
              <td style="WIDTH: 36pt">
                <div>&#160;</div>
              </td>
              <td style="WIDTH: 36pt">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3)</font></div>
              </td>
              <td>
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Filing
                  Party: </font></div>
                <div align="left"><font size="2">________________________________________________________________</font></div>
              </td>
            </tr>
  
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      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">
          <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">
  
              <tr valign="top">
                <td style="WIDTH: 36pt">
                  <div>&#160;</div>
                </td>
                <td style="WIDTH: 36pt">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4)</font></div>
                </td>
                <td>
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Date
                    Filed:</font></div>
                  <div align="left"><font size="2">________________________________________________________________</font></div>
                </td>
              </tr>
  
          </table>
        </div>
      </div>
      <div>
      </div>
      <div>&#160;</div>
      <div>&#160;</div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="left">
          </div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
          </div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right">
          </div>
        </div>
      </div>
      <div>&#160;</div>
      <div style="TEXT-ALIGN: center"><img src="kcilogo.jpg" alt="Keystone Consolidated Industries, Inc. - Logo"></div>
      <div><br>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman; FONT-VARIANT: small-caps">Keystone
          Consolidated Industries, Inc.</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: center" align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; FONT-VARIANT: small-caps">Three
          Lincoln Centre</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: center" align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; FONT-VARIANT: small-caps">5430
          LBJ Freeway, Suite 1740</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: center" align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; FONT-VARIANT: small-caps">Dallas,
          Texas&#160;&#160;75240</font></div>
      </div><br>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">January
        7, 2008</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">To
        Our
        Stockholders:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">You
        are
        cordially invited to attend a Special Meeting of Stockholders of Keystone
        Consolidated Industries, Inc. that will be held on Friday, January 18, 2008
        at
        10:00 a.m., local time, at Keystone&#8217;s corporate offices at Three Lincoln Centre,
        5430 LBJ Freeway, Suite 1740, Dallas, Texas.&#160;&#160;The matters to be acted
        upon at the meeting are described in the attached Notice of Special Meeting
        of
        Stockholders and Proxy Statement.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Whether
        or not you plan to attend the special meeting, please complete, date, sign
        and
        return the enclosed proxy card or voting instruction form in the accompanying
        envelope as promptly as possible to ensure that your shares are represented
        and
        voted in accordance with your wishes.&#160;&#160;Your vote, whether given by
        proxy or in person at the meeting, will be held in confidence by the inspector
        of election as provided in Keystone&#8217;s Amended and Restated Bylaws.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 234pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB2" style="LETTER-SPACING: 8pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 8pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 8pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 8pt">&#160;&#160;&#160;</font>&#160;&#160;Sincerely,</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 234pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;&#160;&#160;&#160;<font id="TAB2" style="LETTER-SPACING: 8pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 8pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 8pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 8pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 8pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 8pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 8pt">&#160;&#160;&#160;</font>&#160;&#160;<font id="TAB2" style="LETTER-SPACING: 8pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 8pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 8pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 8pt">&#160;&#160;&#160;&#160;</font>&#160;/s/
  <font size="2">Glenn
        R. Simmons</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 9pt">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;---------------------------------------------------------<br>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
  <font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Glenn
        R.
        Simmons, <font style="DISPLAY: inline; FONT-STYLE: italic">Chairman of the
        Board</font></font><br></div><br>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="left">
          </div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
          </div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
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          </div>
        </div>
      </div>
      <div>&#160;</div>
      <div>&#160;</div>
      <div style="TEXT-ALIGN: center"><img src="kcilogo.jpg" alt="Keystone Consolidated Industries, Inc. - Logo"><br></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;</div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt">
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman; FONT-VARIANT: small-caps">Keystone
          Consolidated Industries, Inc.</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: center" align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; FONT-VARIANT: small-caps">Three
          Lincoln Centre</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: center" align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; FONT-VARIANT: small-caps">5430
          LBJ Freeway, Suite 1740</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: center" align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; FONT-VARIANT: small-caps">Dallas,
          Texas&#160;&#160;75240</font></div>
      </div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br>&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">NOTICE
        OF SPECIAL MEETING OF STOCKHOLDERS</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">To
        be held on January 18, 2008</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">To
        the
        Stockholders of</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Keystone
        Consolidated Industries, Inc.:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">A
        Special
        Meeting of Stockholders of Keystone Consolidated Industries, Inc., a Delaware
        corporation, will be held on Friday, January 18, 2008 at 10:00&#160;a.m., local
        time, at the offices of Keystone at 5430&#160;LBJ Freeway, Suite&#160;1740,
        Dallas, Texas, for the following purposes:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">
  
            <tr valign="top">
              <td align="right" style="WIDTH: 72pt">
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1)&#160;&#160;</font></div>
              </td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">To
                  approve an amendment to Keystone&#8217;s Amended and Restated Certificate of
                  Incorporation to increase the number of our authorized shares of
                  common
                  stock from 11,000,000 shares to 20,000,000 shares;
                  and</font></div>
              </td>
            </tr>
  
        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">
  
            <tr valign="top">
              <td align="right" style="WIDTH: 72pt">
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(2)&#160;&#160;</font></div>
              </td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">To
                  transact such other business as may properly come before the special
                  meeting or any adjournment or postponement
                  thereof.</font></div>
              </td>
            </tr>
  
        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        close
        of business on December 26, 2007 has been set as the record date for the special
        meeting.&#160;&#160;Only holders of our common stock at the close of business on
        the record date are entitled to notice of, and to vote at, the special
        meeting.&#160;&#160;A complete list of stockholders entitled to vote at the
        special meeting will be available for examination during normal business hours
        by any of our stockholders, for purposes related to the special meeting, for
        a
        period of ten days prior to the special meeting at our corporate
        offices.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">You
        are
        cordially invited to attend the special meeting.&#160;&#160;Whether or not you
        plan to attend the special meeting, please complete, date and sign the
        accompanying proxy card or voting instruction form and return it promptly in
        the
        enclosed envelope.&#160;&#160;If you choose, you may still vote in person at the
        special meeting even though you previously submitted your proxy
        card.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 234pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">By
        Order
        of the Board of Directors,</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><font id="TAB2" style="LETTER-SPACING: 8pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 8pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 8pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 8pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 8pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 8pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 8pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 8pt">&#160;&#160;&#160;</font>&#160;
  &#160;/s/
  <font size="2">Sandra
        K. Myers</font>
        <div style="DISPLAY: block; TEXT-INDENT: 9pt"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
  --------------------------------------------------------</font><br><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB2" style="LETTER-SPACING: 8pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 8pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 8pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 8pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 8pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 8pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 8pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 8pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 8pt">&#160;&#160;&#160;</font>&#160;&#160;
  Sandra
          K.
          Myers, <font style="DISPLAY: inline; FONT-STYLE: italic">Secretary</font></font></div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 360pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Dallas,
        Texas</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 360pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">January
        7, 2008</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div><br>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="left">
          </div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
          </div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right">
          </div>
        </div>
      </div><br>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">TABLE
        OF CONTENTS</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: right" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Page</font></font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;</div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" width="100%">
  
            <tr>
              <td align="left" valign="top" width="98%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">TABLE
                  OF
                  CONTENTS.&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;..............................................................................................................................................&#8230;&#8230;&#8230;..</font></div>
              </td>
              <td align="left" valign="top" width="2%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: left" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">i</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="98%" style="TEXT-ALIGN: left">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: left" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">GLOSSARY
                  OF
                  TERMS&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;...............................................................................................................................................&#8230;..</font></div>
              </td>
              <td align="left" valign="top" width="2%" style="TEXT-ALIGN: left">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: left" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">i</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="98%" style="TEXT-ALIGN: left">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: left" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">GENERAL
                  INFORMATION&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;...............................................................................................................................................&#8230;</font></div>
              </td>
              <td align="left" valign="top" width="2%" style="TEXT-ALIGN: left">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: left" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">1</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="98%" style="TEXT-ALIGN: left">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: left" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">QUESTIONS
                  AND ANSWERS ABOUT THE SPECIAL
                  MEETING&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;..............................................................................................................................................&#8230;..</font></div>
              </td>
              <td align="left" valign="top" width="2%" style="TEXT-ALIGN: left">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: left" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">1</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="98%" style="TEXT-ALIGN: left">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: left" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">SECURITY
                  OWNERSHIP&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;...............................................................................................................................................&#8230;&#8230;&#8230;</font></div>
              </td>
              <td align="left" valign="top" width="2%" style="TEXT-ALIGN: left">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: left" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">3</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="98%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">PROPOSAL&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;................................................................................................................................................&#8230;&#8230;&#8230;&#8230;&#8230;..</font></div>
              </td>
              <td align="left" valign="top" width="2%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">4</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="98%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">CONTROLLING
                  STOCKHOLDER&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;................................................................................................................................................&#8230;&#8230;&#8230;&#8230;&#8230;</font></div>
              </td>
              <td align="left" valign="top" width="2%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">6</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="98%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">OTHER
                  MATTERS&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;................................................................................................................................................</font></div>
              </td>
              <td align="left" valign="top" width="2%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">6</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="98%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">ADDITIONAL
                  COPIES.&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;............................................................................................................................................</font></div>
              </td>
              <td align="left" valign="top" width="2%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">7</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="98%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">2009
                  ANNUAL MEETING OF
                  STOCKHOLDERS.&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;............................................................................................................................................&#8230;&#8230;</font></div>
              </td>
              <td align="left" valign="top" width="2%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">7</font></div>
              </td>
            </tr>
  
        </table>
      </div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">GLOSSARY
        OF TERMS</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8220;<font style="DISPLAY: inline; FONT-STYLE: italic">Computershare</font>&#8221;
  means
        Computershare Investor Services L.L.C., our stock transfer agent and
        registrar.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8220;c<font style="DISPLAY: inline; FONT-STYLE: italic">ommon
        stock</font>&#8221; means common
        stock of Keystone Consolidated Industries, Inc., par value $0.01 per
        share.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8220;<font style="DISPLAY: inline; FONT-STYLE: italic">Contran</font>&#8221;
  means
        Contran
        Corporation, our parent corporation.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8220;<font style="DISPLAY: inline; FONT-STYLE: italic">Keystone</font>,&#8221;
  &#8220;us,&#8221;
  &#8220;we&#8221;
  or
        &#8220;our&#8221; means Keystone Consolidated Industries, Inc.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8220;<font style="DISPLAY: inline; FONT-STYLE: italic">record
        date</font>&#8221; means the close
        of business on December 26, 2007 the date our Chief Executive Officer, pursuant
        to resolutions adopted by our board of directors, set for the determination
        of
        stockholders entitled to notice of, and to vote at, the special meeting of
        our
        stockholders to be held on January 18, 2008.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8220;<font style="DISPLAY: inline; FONT-STYLE: italic">SEC</font>&#8221;
  means
        the U.S.
        Securities and Exchange Commission.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div><br>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="left">
          </div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font size="2" style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">i</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right">
          </div>
        </div>
      </div><br>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman; FONT-VARIANT: small-caps">Keystone
        Consolidated Industries, Inc.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: center" align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; FONT-VARIANT: small-caps">Three
        Lincoln Centre</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: center" align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; FONT-VARIANT: small-caps">5430
        LBJ Freeway, Suite 1740</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: center" align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; FONT-VARIANT: small-caps">Dallas,
        Texas&#160;&#160;75240</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: center" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <hr style="COLOR: black" align="center" noshade size="3" width="100%">
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">PROXY
        STATEMENT</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font>
        <div>
          <hr style="COLOR: black" align="left" noshade size="3" width="100%">
        </div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold">GENERAL
  </font><font style="DISPLAY: inline; FONT-WEIGHT: bold">INFORMATION</font></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">This
        proxy statement and the accompanying proxy card or voting instruction form
        are
        being furnished in connection with the solicitation of proxies by and on behalf
        of our board of directors for use at our Special Meeting of Stockholders to
        be
        held on Friday, January 18, 2008 and at any adjournment or postponement of
        the
        special meeting.&#160;&#160;The accompanying notice of special meeting of
        stockholders sets forth the time, place and purposes of the special
        meeting.&#160;&#160;The notice, this proxy statement, and the accompanying proxy
        card or voting instruction form are first being mailed on or about January
        7,
        2008 to the holders of our common stock at the close of business on December
        26,
        2007.&#160;&#160;Our principal executive offices are located at Three Lincoln
        Centre, 5430&#160;LBJ Freeway, Suite&#160;1740, Dallas, Texas
        75240-2697.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-STYLE: italic; FONT-FAMILY: Times New Roman">Please
        refer to the Glossary of Terms on page i for the definitions of certain
        capitalized or other terms used in this proxy statement.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">QUESTIONS
        AND ANSWERS ABOUT THE SPECIAL MEETING</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Q:&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
        What is the purpose of the special meeting?</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">
  
            <tr valign="top">
              <td style="WIDTH: 36pt">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">A:</font></div>
              </td>
              <td>
                <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">At
                  the special meeting, stockholders will vote on a proposal to approve
                  an
                  amendment to our Amended and Restated Certificate of Incorporation
                  to
                  increase the number of our authorized shares of common stock from
                  11,000,000 shares to 20,000,000 shares and to transact such other
                  business
                  that may properly come before the special meeting.
                  </font></div>
              </td>
            </tr>
  
        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Q:&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
        How does the board recommend that I vote?</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">
  
            <tr valign="top">
              <td style="WIDTH: 36pt">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">A:</font></div>
              </td>
              <td>
                <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
                  board of directors recommends that you vote <font style="DISPLAY: inline; FONT-WEIGHT: bold">FOR</font> the proposal
                  to
                  amend our Amended and Restated Certificate of Incorporation.
                  </font></div>
              </td>
            </tr>
  
        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Q:&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
        Who is allowed to vote at the special meeting?</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">
  
            <tr valign="top">
              <td style="WIDTH: 36pt">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">A:</font></div>
              </td>
              <td>
                <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
                  Chief Executive Officer pursuant to resolutions adopted by our board
                  of
                  directors has set the close of business on December 26, 2007 as the
                  record
                  date for the determination of stockholders entitled to notice of,
                  and to
                  vote at, the special meeting. Only holders of record of our common
                  stock
                  as of the close of business on the record date are entitled to vote
                  at the
                  special meeting. On the record date, 10,000,000 shares of our common
                  stock
                  were issued and outstanding. Each share of our common stock entitles
                  its
                  holder to one vote. </font></div>
              </td>
            </tr>
  
        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Q:&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
        How do I vote?</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">
  
            <tr valign="top">
              <td style="WIDTH: 36pt">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">A:</font></div>
              </td>
              <td>
                <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">If
                  your shares are held by a bank, broker or other nominee (<font style="DISPLAY: inline; FONT-STYLE: italic">i.e., </font>in &#8220;street
                  name&#8221;), then you must follow the instructions from your nominee on how
                  to
                  vote your shares. </font></div>
              </td>
            </tr>
  
        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">If
        you
        are a stockholder of record, you may:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">
  
            <tr valign="top">
              <td align="right" style="WIDTH: 72pt">
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt;" face="Symbol, serif">&#183;&#160;&#160;</font></div>
              </td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">vote
                  in person at the special meeting;
                  or</font></div>
              </td>
            </tr>
  
        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">
  
            <tr valign="top">
              <td align="right" style="WIDTH: 72pt">
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt;" face="Symbol, serif">&#183;&#160;&#160;</font></div>
              </td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">instruct
                  the agents named on the proxy card how to vote your shares by completing,
                  signing and mailing the enclosed proxy card in the envelope
                  provided.</font></div>
              </td>
            </tr>
  
        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">If
        you execute a proxy card but do not indicate how you would like your shares
        voted, then the agents will vote FOR the proposal to amend our <font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">Amended and
        Restated</font> Certificate of Incorporation and, to the extent allowed by
        applicable law, in the discretion of the agents on any other business that
        may
        properly come before the special meeting.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="left">
          </div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right">
          </div>
        </div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Q:&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
        Who will count the votes?</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">
  
            <tr valign="top">
              <td style="WIDTH: 36pt">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">A:</font></div>
              </td>
              <td>
                <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
                  board of directors has appointed Computershare to receive proxies
                  and
                  ballots, ascertain the number of shares represented and tabulate
                  the vote
                  for the special meeting. </font></div>
              </td>
            </tr>
  
        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Q:&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
        May I change or revoke my proxy or voting instructions?</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">
  
            <tr valign="top">
              <td style="WIDTH: 36pt">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">A:</font></div>
              </td>
              <td>
                <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">If
                  you are a stockholder of record, then you may change or revoke your
                  proxy
                  instructions at any time before the special meeting in any of the
                  following ways: </font></div>
              </td>
            </tr>
  
        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">
  
            <tr valign="top">
              <td align="right" style="WIDTH: 72pt">
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt;" face="Symbol, serif">&#183;&#160;&#160;</font></div>
              </td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">delivering
                  to Computershare a written
                  revocation;</font></div>
              </td>
            </tr>
  
        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">
  
            <tr valign="top">
              <td align="right" style="WIDTH: 72pt">
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt;" face="Symbol, serif">&#183;&#160;&#160;</font></div>
              </td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">submitting
                  another proxy card bearing a later date;
                  or</font></div>
              </td>
            </tr>
  
        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">
  
            <tr valign="top">
              <td align="right" style="WIDTH: 72pt">
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt;" face="Symbol, serif">&#183;&#160;&#160;</font></div>
              </td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">voting
                  in person at the special meeting.</font></div>
              </td>
            </tr>
  
        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">If
        your
        shares are held by a bank, broker or other nominee, then you must follow the
        instructions from your nominee on how to change or revoke your voting
        instructions.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Q:&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
        What constitutes a quorum?</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">
  
            <tr valign="top">
              <td style="WIDTH: 36pt">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">A:</font></div>
              </td>
              <td>
                <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">A
                  quorum is the presence, in person or by proxy, of a majority of the
                  votes
                  from holders of the outstanding shares of our common stock entitled
                  to
                  vote at the special meeting. Brokers or other nominees holding shares
                  of
                  record on behalf of a client who is the actual beneficial owner of
                  such
                  shares are authorized to vote on certain routine matters, including
                  the
                  proposal to amend our Amended and Restated Certificate of Incorporation,
                  without receiving instructions from the beneficial owner of the shares.
                  If
                  such a broker/nominee who is entitled to vote on a routine matter
                  delivers
                  an executed proxy card and does not vote on the matter, such a vote
                  is
                  referred to in this proxy statement as a &#8220;broker/nominee non-vote.&#8221; Shares
                  of common stock that are voted to abstain from any business coming
                  before
                  the special meeting and broker/nominee non-votes will be counted
                  as being
                  in attendance at the special meeting for purposes of determining
                  whether a
                  quorum is present. </font></div>
              </td>
            </tr>
  
        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">
  
            <tr valign="top">
              <td style="WIDTH: 36pt">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Q:</font></div>
              </td>
              <td>
                <div align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">What
                  vote is required to approve the proposal to amend our Amended and
                  Restated
                  Certificate of Incorporation? </font></div>
              </td>
            </tr>
  
        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">
  
            <tr valign="top">
              <td style="WIDTH: 36pt">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">A:</font></div>
              </td>
              <td>
                <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">If
                  a quorum is present, then the affirmative vote of the holders of
                  a
                  majority of our outstanding shares of common stock entitled to be
                  voted at
                  the special meeting is necessary to approve the proposal to amend
                  our
                  Amended and Restated Certificate of Incorporation. Abstentions and
                  broker/nominee non-votes will have the same effect as a vote against
                  the
                  proposal to amend our Amended and Restated Certificate of Incorporation.
                  </font></div>
                <div align="justify">&#160;</div>
                <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Except
                  as applicable laws may otherwise provide, if a quorum is present,
                  then the
                  approval of any other business that may properly come before the
                  special
                  meeting will require the affirmative vote of the holders of a majority
                  of
                  the outstanding shares represented and entitled to vote at the special
                  meeting.&#160;&#160;Shares of our common stock that are voted to abstain
                  from any other business coming before the special meeting and
                  broker/nominee non-votes will not be counted as votes for or against
                  any
                  such other business.</font></div>
                <div align="justify">&#160;</div>
              </td>
            </tr>
  
        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Q:&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
        Who will pay for the cost of soliciting the proxies?</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">
  
            <tr valign="top">
              <td style="WIDTH: 0.399pt">
                <div>&#160;</div>
              </td>
              <td style="WIDTH: 36pt">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">A:</font></div>
              </td>
              <td>
                <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
                  will pay all expenses related to the solicitation, including charges
                  for
                  preparing, printing, assembling and distributing all materials delivered
                  to stockholders. In addition to the solicitation by mail, our directors,
                  officers and regular employees may solicit proxies by telephone or
                  in
                  person for which such persons will receive no additional compensation.
                  We
                  have retained The Altman Group, Inc. to aid in the distribution of
                  this
                  proxy statement and related materials at an estimated cost of $1,500.
                  Upon
                  request, we will reimburse banking institutions, brokerage firms,
                  custodians, trustees, nominees and fiduciaries for their reasonable
                  out-of-pocket expenses incurred in distributing proxy materials and
                  voting
                  instructions to the beneficial owners of our common stock that such
                  entities hold of record. </font></div>
              </td>
            </tr>
  
        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="left">
          </div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right">
          </div>
        </div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECURITY
        OWNERSHIP</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-STYLE: italic">Ownership
        of
        Keystone.</font>&#160;&#160;The following table and footnotes set forth as of
        the record date the beneficial ownership, as defined by regulations of the
        SEC,
        of our common stock held by each individual, entity or group known to us to
        own
        beneficially more than 5% of the outstanding shares of our common stock, each
        director, each of our executive officers and all of our directors and executive
        officers as a group.&#160;&#160;See footnote 4 below for information concerning
        the relationships of certain individuals and entities that may be deemed to
        own
        indirectly and beneficially more than 5% of the outstanding shares of our common
        stock.&#160;&#160;All information is taken from or based upon ownership filings
        made by such individuals or entities with the SEC or upon information provided
        by such individuals or entities.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br>
        <div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
          <div align="left">
            <table cellpadding="0" cellspacing="0" width="97%">
  
                <tr>
                  <td valign="top" width="64%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
                  <td colspan="3" valign="top" width="36%" style="BORDER-BOTTOM: black 2px solid">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
                      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Keystone
                        Common Stock</font></div>
                    </div>
                  </td>
                </tr>
                <tr>
                  <td valign="top" width="64%" style="BORDER-BOTTOM: black 2px solid">
                    <div style="DISPLAY: block; TEXT-INDENT: 0pt">
                    </div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
                      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Name
                        of Beneficial
                        Owner</font><font style="DISPLAY: inline; FONT-SIZE: 70%; VERTICAL-ALIGN: super">&#160;</font></font></div>
                    </div>
                  </td>
                  <td colspan="2" valign="top" width="14%" style="BORDER-BOTTOM: black 2px solid">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Amount
                      and Nature of</font></div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
                      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Beneficial
                        Ownership
                        </font><font style="DISPLAY: inline; FONT-SIZE: 70%; VERTICAL-ALIGN: super">(1)</font></font></div>
                    </div>
                  </td>
                  <td valign="top" width="22%" style="BORDER-BOTTOM: black 2px solid">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Percent
                      of</font></div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
                      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Class
  </font><font style="DISPLAY: inline; FONT-SIZE: 70%; VERTICAL-ALIGN: super">(1)(2)</font></font></div>
                    </div>
                  </td>
                </tr>
                <tr>
                  <td valign="top" width="64%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
                  <td colspan="2" valign="top" width="14%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
                  <td valign="top" width="22%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
                </tr>
                <tr>
                  <td align="left" valign="top" width="64%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Harold
                      C. Simmons <font style="DISPLAY: inline; FONT-SIZE: 70%; VERTICAL-ALIGN: super">(3)</font></font>
                      .........................................................................................................................</div>
                  </td>
                  <td align="left" valign="top" width="10%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: right" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;-0-</font></div>
                  </td>
                  <td align="left" valign="top" width="4%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"><font style="DISPLAY: inline; FONT-SIZE: 70%; VERTICAL-ALIGN: super">(4)</font></font></div>
                  </td>
                  <td valign="top" width="22%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">-0-</font></div>
                  </td>
                </tr>
                <tr>
                  <td align="left" valign="top" width="64%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Contran
                      Corporation <font style="DISPLAY: inline; FONT-SIZE: 70%; VERTICAL-ALIGN: super">(3)</font></font>
                      ................................................................................................................</div>
                  </td>
                  <td align="left" valign="top" width="10%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: right" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;5,100,000</font></div>
                  </td>
                  <td align="left" valign="top" width="4%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"><font style="DISPLAY: inline; FONT-SIZE: 70%; VERTICAL-ALIGN: super">(4)</font></font></div>
                  </td>
                  <td align="right" valign="top" width="22%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 18.7pt; TEXT-ALIGN: center" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: times new roman"><font style="DISPLAY: inline; COLOR: #000000">51.0%</font></font></div>
                  </td>
                </tr>
                <tr>
                  <td align="left" valign="top" width="64%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Annette
                      C. Simmons <font style="DISPLAY: inline; FONT-SIZE: 70%; VERTICAL-ALIGN: super">(3)</font></font>
                      ................................................................................................................</div>
                  </td>
                  <td align="left" valign="top" width="10%" style="BORDER-BOTTOM: black 2px solid">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: right" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
                      <font style="DISPLAY: inline">&#160;&#160;&#160;&#160;&#160;</font><font style="DISPLAY: inline; COLOR: #000000">10,000</font></font></div>
                  </td>
                  <td align="left" valign="top" width="4%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"><font style="DISPLAY: inline; FONT-SIZE: 70%; VERTICAL-ALIGN: super">(4)</font></font></div>
                  </td>
                  <td valign="top" width="22%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">*</font></div>
                  </td>
                </tr>
                <tr>
                  <td valign="top" width="64%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
                  <td align="left" valign="top" width="10%" style="BORDER-BOTTOM: black 4px double">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: right" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
                      <font style="DISPLAY: inline">5,110,000</font></font></div>
                  </td>
                  <td align="left" valign="top" width="4%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"><font style="DISPLAY: inline; FONT-SIZE: 70%; VERTICAL-ALIGN: super">(4)</font></font></div>
                  </td>
                  <td align="right" valign="top" width="22%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 18.7pt; TEXT-ALIGN: center" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: times new roman"><font style="DISPLAY: inline; COLOR: #000000">51.1%</font></font></div>
                  </td>
                </tr>
                <tr>
                  <td valign="top" width="64%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
                  <td valign="top" width="10%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
                  <td valign="top" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
                  <td valign="top" width="22%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
                </tr>
                <tr>
                  <td align="left" valign="top" width="64%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Third
                      Point LLC <font style="DISPLAY: inline; FONT-SIZE: 70%; VERTICAL-ALIGN: super">(5)</font></font>&#160;
                      ...........................................................................................................................</div>
                  </td>
                  <td align="left" valign="top" width="10%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: right" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: times new roman">&#160;
                      <font style="DISPLAY: inline; COLOR: #000000">990,000</font></font></div>
                  </td>
                  <td align="left" valign="top" width="4%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"><font style="DISPLAY: inline; FONT-SIZE: 70%; VERTICAL-ALIGN: super">(6)</font></font></div>
                  </td>
                  <td align="right" valign="top" width="22%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 18.7pt; TEXT-ALIGN: center" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: times new roman"><font style="DISPLAY: inline; COLOR: #000000">9.9%</font></font></div>
                  </td>
                </tr>
                <tr>
                  <td valign="top" width="64%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
                  <td valign="top" width="10%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
                  <td valign="top" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
                  <td valign="top" width="22%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
                </tr>
                <tr>
                  <td align="left" valign="middle" width="64%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Paul
                      M. Bass</font>
                      ..................................................................................................................................</div>
                  </td>
                  <td align="left" valign="top" width="10%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: right" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;-0-</font></div>
                  </td>
                  <td valign="top" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
                  <td valign="top" width="22%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: center" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">-0-</font></div>
                  </td>
                </tr>
                <tr>
                  <td align="left" valign="middle" width="64%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Richard
                      R. Burkhart</font>
                      ..........................................................................................................................</div>
                  </td>
                  <td align="left" valign="top" width="10%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: right" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;-0-</font></div>
                  </td>
                  <td valign="top" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
                  <td valign="top" width="22%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">-0-</font></div>
                  </td>
                </tr>
                <tr>
                  <td align="left" valign="middle" width="64%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">John
                      R. Parker</font>
                      .................................................................................................................................</div>
                  </td>
                  <td align="left" valign="top" width="10%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: right" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;-0-</font></div>
                  </td>
                  <td valign="top" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
                  <td valign="top" width="22%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">-0-</font></div>
                  </td>
                </tr>
                <tr>
                  <td align="left" valign="middle" width="64%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Glenn
                      R. Simmons</font>
                      ............................................................................................................................</div>
                  </td>
                  <td align="left" valign="top" width="10%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: right" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;-0-</font></div>
                  </td>
                  <td align="left" valign="top" width="4%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"><font style="DISPLAY: inline; FONT-SIZE: 70%; VERTICAL-ALIGN: super">(4)</font></font></div>
                  </td>
                  <td valign="top" width="22%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">-0-</font></div>
                  </td>
                </tr>
                <tr>
                  <td align="left" valign="middle" width="64%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Troy
                      T. Taylor</font>
                      ................................................................................................................................</div>
                  </td>
                  <td align="left" valign="top" width="10%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: right" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;-0-</font></div>
                  </td>
                  <td valign="top" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
                  <td valign="top" width="22%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">-0-</font></div>
                  </td>
                </tr>
                <tr>
                  <td align="left" valign="middle" width="64%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Steven
                      L. Watson</font>
                      ............................................................................................................................</div>
                  </td>
                  <td align="left" valign="top" width="10%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: right" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;-0-</font></div>
                  </td>
                  <td align="left" valign="top" width="4%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"><font style="DISPLAY: inline; FONT-SIZE: 70%; VERTICAL-ALIGN: super">(4)</font></font></div>
                  </td>
                  <td valign="top" width="22%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">-0-</font></div>
                  </td>
                </tr>
                <tr>
                  <td align="left" valign="middle" width="64%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Donald
                      P. Zima</font>
                      ................................................................................................................................</div>
                  </td>
                  <td align="left" valign="top" width="10%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: right" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;-0-</font></div>
                  </td>
                  <td valign="top" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
                  <td valign="top" width="22%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">-0-</font></div>
                  </td>
                </tr>
                <tr>
                  <td align="left" valign="middle" width="64%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">David
                      L. Cheek</font>
                      ................................................................................................................................</div>
                  </td>
                  <td align="left" valign="top" width="10%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: right" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;-0-</font></div>
                  </td>
                  <td valign="top" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
                  <td valign="top" width="22%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">-0-</font></div>
                  </td>
                </tr>
                <tr>
                  <td align="left" valign="middle" width="64%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Bert
                      E. Downing, Jr.</font>
                      ..........................................................................................................................</div>
                  </td>
                  <td align="left" valign="top" width="10%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: right" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;-0-</font></div>
                  </td>
                  <td valign="top" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
                  <td valign="top" width="22%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">-0-</font></div>
                  </td>
                </tr>
                <tr>
                  <td align="left" valign="middle" width="64%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">C.
                      Vic Stirnaman</font>
                      ..............................................................................................................................</div>
                  </td>
                  <td align="left" valign="top" width="10%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: right" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;-0-</font></div>
                  </td>
                  <td valign="top" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
                  <td valign="top" width="22%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">-0-</font></div>
                  </td>
                </tr>
                <tr>
                  <td align="left" valign="middle" width="64%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">John
                      M. Thomas</font>
                      .............................................................................................................................</div>
                  </td>
                  <td align="left" valign="top" width="10%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: right" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;-0-</font></div>
                  </td>
                  <td valign="top" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
                  <td valign="top" width="22%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">-0-</font></div>
                  </td>
                </tr>
                <tr>
                  <td align="left" valign="top" width="64%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 11.45pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">All
                      our directors and executive officers as a group (11 persons)</font>
                      ................................................................</div>
                  </td>
                  <td align="left" valign="top" width="10%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: right" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;-0-</font></div>
                  </td>
                  <td align="left" valign="top" width="4%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"><font style="DISPLAY: inline; FONT-SIZE: 70%; VERTICAL-ALIGN: super">(4)</font></font></div>
                  </td>
                  <td valign="top" width="22%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">-0-</font></div>
                  </td>
                </tr>
  
            </table>
          </div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-SIZE: 10pt">*</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
            Less than 1%.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
          <div>
            <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">
  
                <tr valign="top">
                  <td style="WIDTH: 54pt">
                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1)</font></div>
                  </td>
                  <td>
                    <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Except
                      as otherwise noted, the listed entities, individuals or group
                      have sole
                      investment power and sole voting power as to all shares set forth
                      opposite
                      their names. </font></div>
                  </td>
                </tr>
  
            </table>
          </div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
          <div>
            <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">
  
                <tr valign="top">
                  <td style="WIDTH: 54pt">
                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(2)</font></div>
                  </td>
                  <td>
                    <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
                      percentages are based on 10,000,000 shares of our common stock
                      outstanding
                      as of the record date. </font></div>
                  </td>
                </tr>
  
            </table>
          </div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
          <div>
            <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">
  
                <tr valign="top">
                  <td style="WIDTH: 54pt">
                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(3)</font></div>
                  </td>
                  <td>
                    <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
                      business address of Contran Corporation, Mr. Harold C. Simmons,
                      and Mrs.
                      Annette C. Simmons is Three Lincoln Centre, 5430 LBJ Freeway,
                      Suite 1700,
                      Dallas, Texas 75240-2697. </font></div>
                  </td>
                </tr>
  
            </table>
          </div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
          <div>
            <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">
  
                <tr valign="top">
                  <td style="WIDTH: 54pt">
                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(4)</font></div>
                  </td>
                  <td>
                    <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Substantially
                      all of Contran&#8217;s outstanding voting stock is held by trusts established
                      for the benefit of certain children and grandchildren of
                      Mr.&#160;&#160;Harold C. Simmons, of which Mr. Simmons is the sole
                      trustee, or held by Mr. Simmons or persons or other entities
                      related to
                      Mr. Simmons.&#160;&#160;As sole trustee of these trusts, Mr. Harold C.
                      Simmons has the power to vote and direct the disposition of the
                      shares of
                      Contran stock held by these trusts.&#160;&#160;Mr. Harold C. Simmons,
                      however, disclaims beneficial ownership of any Contran shares
                      these trusts
                      hold.&#160;&#160;Mr. Harold C.&#160;&#160;Simmons is also the chairman of
                      the board of Contran. </font></div>
                    <div align="justify">&#160;</div>
                    <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">By
                      virtue of the holding of his office with Contran, Contran&#8217;s stock
                      ownership and his services as trustee, as described above, (a)
                      Mr. Harold
                      C. Simmons may be deemed to control us and (b) Mr. Simmons may
                      be deemed
                      to possess indirect beneficial ownership of the shares or our
                      common stock
                      directly held by Contran.&#160;&#160;However, Mr.&#160;Harold C. Simmons
                      disclaims beneficial ownership of any shares beneficially owned,
                      directly
                      or indirectly, by Contran.</font></div>
                    <div align="justify">&#160;</div>
                    <div align="justify"><font size="2">Mrs. Annette C. Simmons is
                      the wife of Mr.
                      Harold C. Simmons.&#160;&#160;She is the direct owner of 10,000 shares of
                      our common stock.&#160;&#160;Mr. Harold C. Simmons may be deemed to share
                      indirect beneficial ownership of such shares.&#160;&#160;Mr.&#160;Harold
                      C. Simmons disclaims all such beneficial ownership.</font></div>
                    <div align="justify">&#160;</div>
                    <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Messrs.
                      Glenn R. Simmons and Steven L. Watson are directors and officers
                      of
                      Contran, and Mr.&#160;Glenn&#160;&#160;R. Simmons is the brother of
                      Mr.&#160;Harold C. Simmons.</font></div>
                    <div align="justify">&#160;</div>
                  </td>
                </tr>
  
            </table>
          </div>
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          <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
            <div id="FTR">
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              </div>
            </div>
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              <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3</font></div>
              <div style="WIDTH: 100%; TEXT-ALIGN: center">
                <hr style="COLOR: black" noshade size="2">
              </div>
            </div>
            <div id="HDR">
              <div id="GLHDR" style="WIDTH: 100%" align="right">
              </div>
            </div>
          </div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
          <div>
            <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">
  
                <tr valign="top">
                  <td style="WIDTH: 54pt">
                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(5)</font></div>
                  </td>
                  <td>
                    <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
                      business address of Third Point LLC is 390 Park Avenue, New York,
                      NY
                      10022. </font></div>
                  </td>
                </tr>
  
            </table>
          </div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
          <div>
            <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">
  
                <tr valign="top">
                  <td style="WIDTH: 54pt">
                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(6)</font></div>
                  </td>
                  <td>
                    <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Of
                      the reported holdings, Third Point Offshore Fund, Ltd. holds
                      shared voting
                      power, shared dispositive power and beneficial ownership with
                      respect to
                      636,700 shares and Third Point, LLC and Daniel S. Loeb each hold
                      shared
                      voting power, shared dispositive power and beneficial ownership
                      with
                      respect to 990,000 shares. </font></div>
                  </td>
                </tr>
  
            </table>
          </div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
          <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
        </div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
        understand that Contran and related entities may consider acquiring or disposing
        of shares of our common stock through open market or privately negotiated
        transactions, depending upon future developments, including, but not limited
        to,
        the availability and alternative uses of funds, the performance of our common
        stock in the market, an assessment of our business and prospects, financial
        and
        stock market conditions and other factors deemed relevant by such
        entities.&#160;&#160;We may similarly consider acquisitions of shares of our
        common stock and acquisitions or dispositions of securities issued by related
        entities.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">PROPOSAL</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">TO
        APPROVE AN AMENDMENT TO OUR AMENDED AND RESTATED</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: center" align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">CERTIFICATE
        OF INCORPORATION TO INCREASE THE NUMBER OF OUR</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: center" align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">AUTHORIZED
        SHARES OF COMMON STOCK</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">General</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
        board
        of directors has approved, subject to stockholder approval, an amendment to
        Article IV, Section 4.1 of our Amended and Restated Certificate of Incorporation
        to increase the number of our authorized shares of common stock from 11,000,000
        shares to 20,000,000 shares.&#160;&#160;Our board of directors has determined
        that the proposed amendment to our Amended and Restated Certificate of
        Incorporation is advisable and in the best interests of Keystone and its
        stockholders.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Text
        and Effectiveness of Proposed Amendment</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">A
        copy of
        the proposed amendment to our Amended and Restated Certificate of Incorporation
        to increase the number of our authorized shares of common stock is attached
        as
  <font style="DISPLAY: inline; FONT-STYLE: italic">Appendix A</font> to this
        proxy statement.&#160;&#160;The proposed amendment, if approved by our
        stockholders, would become effective upon the filing with the Secretary of
        State
        of the State of Delaware of a certificate of amendment that contains the
        proposed amendment.&#160;&#160;Although we currently intend to cause the
        proposed amendment to become effective as soon as practicable after the special
        meeting, our board of directors reserves the right not to file the certificate
        of amendment and to abandon the proposed amendment for any reason and at any
        time before its effectiveness, including after obtaining stockholder approval
        of
        the proposed amendment at the special meeting.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Purpose
        of the Proposed Amendment</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
        of the
        record date, there were 11,000,000 shares of common stock authorized by our
        Amended and Restated Certificate of Incorporation, of which 10,000,000 shares
        were outstanding.&#160;&#160;Increasing our authorized number of shares of
        common stock as contemplated by the proposed amendment to our Amended and
        Restated Certificate of Incorporation will provide us with sufficient authorized
        but unissued shares of common stock (i) to effect the subscription rights
        offering, described below, pursuant to which we plan to raise up to $25,000,000
        through the issuance of up to 2,500,000 shares of common stock (the
  &#8220;Subscription Rights Offering&#8221;); and (ii) for future use in transactions
        approved by our board of directors, including, among others, equity financings,
        stock splits, stock dividends, equity incentive plans, acquisitions and other
        corporate purposes.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
        believe that by having sufficient authorized but unissued shares of common
        stock
        that we can issue without stockholder approval (except as required by applicable
        law or regulation, our Amended and Restated Certificate of Incorporation, or
        the
        rules of any securities exchange or quotation system on which our common stock
        may be listed, if applicable) will be beneficial to us by providing us with
        flexibility to consider and act promptly when our board of directors determines
        the issuance of shares is advisable.&#160;&#160;Our common stock is currently
        traded on the Over-The-Counter Bulletin Board, which does not impose corporate
        governance standards or require shareholder approval in connection with the
        issuance of equity securities.&#160;&#160;Therefore, we can issue shares of our
        common stock or securities exercisable or convertible into shares of our common
        stock without obtaining stockholder approval in the discretion of our board
        of
        directors, subject to compliance with applicable law or regulation, our Amended
        and Restated Certificate of Incorporation and any contractual or other
        restrictions binding upon us.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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          </div>
        </div>
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          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
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          <div id="GLHDR" style="WIDTH: 100%" align="right">
          </div>
        </div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Consequences
        of Effectiveness of Proposed Amendment</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">If
        the
        proposed amendment to our Amended and Restated Certificate of Incorporation
        becomes effective, then the additional authorized shares of common stock would
        be available for issuance from time to time upon such terms and for such
        purposes as our board of directors may deem advisable, without stockholder
        approval except as discussed above and subject to compliance with any
        contractual or other restrictions binding upon us.&#160;&#160;Except in
        connection with the proposed Subscription Rights Offering, our stockholders
        would not have any preemptive or similar rights to subscribe for or purchase
        any
        additional shares of common stock that may be issued in the future.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        proposed amendment would not effect any changes to our currently outstanding
        common stock.&#160;&#160;When issued by us, the additional authorized shares of
        common stock will have the same rights and privileges as the shares of common
        stock presently outstanding and will be fully paid and
        nonassessable.&#160;&#160;Under our Amended and Restated Certificate of
        Incorporation, each share of common stock is entitled to one
        vote.&#160;&#160;Holders of common stock are also entitled to receive dividends
        as and if declared by our board of directors; however, our revolving credit
        facility prohibits us from paying dividends without lender
        consent.&#160;&#160;We do not currently anticipate paying dividends on our
        common stock in the foreseeable future.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        issuance of additional shares of common stock in the future may, among other
        things, dilute our earnings or book value per share, or the voting power and
        other rights and interests of our existing stockholders.&#160;&#160;The issuance
        of additional shares of common stock, or the perception that additional shares
        may be issued, may also adversely affect the market price of the common
        stock.&#160;&#160;The availability for issuance of additional shares of common
        stock could further have the effect of rendering more difficult or discouraging
        an attempt to takeover or obtain control of Keystone.&#160;&#160;For example,
        the issuance of shares of common stock in a public or private sale, merger,
        or
        similar transaction would increase the number of outstanding shares, thereby
        diluting the interest of a party attempting to takeover or obtain control of
        Keystone.&#160;&#160;The issuance of additional shares of common stock may be
        used to render more difficult a similar transaction even if it appears to be
        desirable to a majority of our stockholders.&#160;&#160;The proposed amendment
        is not a result of, nor does our board of directors have knowledge of, any
        effort to accumulate our common stock or to takeover or obtain control of us
        by
        means of a merger, tender offer, solicitation in opposition to our board of
        directors or otherwise, and the proposed amendment is not being presented to
        our
        stockholders for approval with the intent that it will be utilized as a type
        of
        anti-takeover device.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Subscription Rights Offering</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
        October 2007, we announced our intention to offer to our stockholders up to
        an
        aggregate of 2,500,000 shares of our common stock for an aggregate price of
        up
        to $25,000,000, pursuant to the exercise of subscription rights to be
        distributed to our stockholders of record.&#160;&#160;It is presently
        anticipated that each stockholder will receive 0.25 of a subscription right
        for
        each share of common stock held as of the record date for the Subscription
        Rights Offering and that each whole subscription right will entitle the holder
        thereof to purchase one share of common stock at a subscription price of $10.00
        per share.&#160;&#160;It is also anticipated that stockholders who exercise
        their subscription rights in full may oversubscribe for additional shares not
        purchased by the other stockholders, subject to certain
        limitations.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
        will
        use the net proceeds from the sale of the common stock pursuant to the
        Subscription Rights Offering to reduce our indebtedness under our revolving
        credit facility, which was $45.8 million as of September 30, 2007 and which,
        in
        turn, will create additional availability under that facility that could be
        used
        for general corporate purposes, including scheduled debt payments, capital
        expenditures, potential acquisitions or the liquidity needs of our current
        operations.&#160;&#160;If the proposed amendment to our Amended and Restated
        Certificate of Incorporation does not become effective, then we will not be
        able
        to complete the Subscription Rights Offering and raise the proceeds contemplated
        thereby, which could leave us with significant liquidity problems that may
        materially impair our operations.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; COLOR: #000000">We
        filed a registration statement with
        the SEC covering the issuance of our shares of common stock pursuant to the
        Subscription Rights Offering.&#160;&#160;We currently intend to distribute the
        Subscription Rights as soon as practicable following the effectiveness of the
        registration statement and subject to the approval of our proposed amendment
        to
        our Amended and Restated Certificate of Incorporation at the special meeting,
        to
        complete the Subscription Rights Offering 30 days after the Subscription Rights
        have been distributed.&#160;&#160;Our board of directors reserves the right to
        amend or modify the terms of the Subscription Rights Offering or terminate
        or
        cancel the Subscription Rights Offering in its sole discretion at any time
        before the completion of the Subscription Rights Offering.&#160;&#160;Our board
        of directors also reserves the right to cause the proposed amendment to become
        effective, subject to stockholder approval, even if our board of directors
        terminates or cancels the Subscription Rights Offering.</font></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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          </div>
        </div>
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          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
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          </div>
        </div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Vote
        Required</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        affirmative vote of the holders of a majority of our outstanding shares of
        common stock entitled to vote at the special meeting is necessary to approve
        the
        proposal to amend our Amended and Restated Certificate of
        Incorporation.&#160;&#160;Abstentions will have the same effect as a vote
        against the proposal to amend our Amended and Restated Certificate of
        Incorporation.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">WHILE
        OUR
        STOCKHOLDERS ARE NOT BEING ASKED TO VOTE TO AUTHORIZE THE SUBSCRIPTION RIGHTS
        OFFERING, OUR ABILITY TO COMPLETE THE SUBSCRIPTION RIGHTS OFFERING IS DEPENDENT
        UPON STOCKHOLDER APPROVAL OF THE PROPOSED AMENDMENT TO OUR AMENDED AND RESTATED
        ARTICLES OF INCORPORATION TO INCREASE THE NUMBER OF AUTHORIZED SHARES OF COMMON
        STOCK.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">THIS
        PROXY STATEMENT DOES NOT CONSTITUTE AN OFFER TO SELL OR SOLICITATION OF AN
        OFFER
        TO BUY ANY SECURITIES.&#160;&#160;ANY OFFER REGARDING THE SUBSCRIPTION RIGHTS
        OFFERING SHALL BE MADE ONLY THROUGH A SEPARATE PROSPECTUS.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Board
        Recommendation</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
        Board
        of Directors recommends a vote <font style="DISPLAY: inline; FONT-WEIGHT: bold">FOR</font> the proposal to approve
        an
        amendment to our Amended and Restated Certificate of Incorporation to increase
        the number of our authorized shares of common stock from 11,000,000 shares
        to
        20,000,000 shares.&#160;&#160;Proxies solicited by our board of directors will
        be voted <font style="DISPLAY: inline; FONT-WEIGHT: bold">FOR</font> this
        proposal unless instructions to the contrary are given.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">OUR
        BOARD
        OF DIRECTORS MAKES NO RECOMMENDATION AS TO WHETHER STOCKHOLDERS SHOULD EXERCISE
        ANY SUBSCRIPTION RIGHTS THAT MAY BE OFFERED TO THEM IN THE SUBSCRIPTION RIGHTS
        OFFERING.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">CONTROLLING
        STOCKHOLDER</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Contran
        owns 51.0% of our outstanding common stock as of the record
        date.&#160;&#160;Contran has indicated its intention to have its shares of our
        common stock represented at the special meeting and voted <font style="DISPLAY: inline; FONT-WEIGHT: bold">FOR</font> the proposal to amend
        our
        Amended and Restated Certificate of Incorporation to increase the number of
        our
        authorized shares of common stock from 11,000,000 shares to 20,000,000
        shares.&#160;&#160;If Contran attends the special meeting in person or by proxy
        and votes as indicated, then the special meeting will have a quorum present
        and
        the stockholders will approve the proposal to amend our Amended and Restated
        Certificate of Incorporation.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">OTHER
        MATTERS</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
        board
        of directors <font style="DISPLAY: inline; COLOR: #000033">knows</font> of no
        other business that will be presented for consideration at the special
        meeting.&#160;&#160;If any other business properly comes before the special
        meeting, then the persons designated as agents in the enclosed proxy card or
        voting instruction form will vote on such business in accordance with their
        reasonable judgment.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
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          </div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">6</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right">
          </div>
        </div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">ADDITIONAL
        COPIES</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
        to an SEC rule <font style="DISPLAY: inline; COLOR: #000033">concerning</font>
        the delivery of annual reports and proxy statements, a single set of these
        documents may be sent to any household at which two or more stockholders reside
        if they appear to be members of the same family.&#160;&#160;Each stockholder
        continues to receive a separate proxy card.&#160;&#160;This procedure, referred
        to as householding, reduces the volume of duplicate information stockholders
        receive and reduces mailing and printing expenses.&#160;&#160;A number of
        brokerage firms have instituted householding.&#160;&#160;Certain beneficial
        stockholders who share a single address may have received a notice that only
        one
        proxy statement would be sent to that address unless a stockholder at that
        address gave contrary instructions.&#160;&#160;If, at any time, a stockholder
        who holds shares through a broker no longer wishes to participate in
        householding and would prefer to receive a separate proxy statement and related
        materials, or if such stockholder currently receives multiple copies of the
        proxy statement and related materials at his or her address and would like
        to
        request householding of our communications, then the stockholder should notify
        his or her broker.&#160;&#160;Additionally, we will promptly deliver a separate
        copy of this proxy statement to any stockholder at a shared address to which
        a
        single copy of this proxy statement was delivered, upon the written or oral
        request of the stockholder.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">To
        obtain
        copies of this proxy statement without charge, please mail your request to
        the
        attention of Sandra K. Myers, <font style="DISPLAY: inline; COLOR: #000033">corporate</font> secretary, at Keystone
        Consolidated Industries, Inc., Three Lincoln Centre, 5430 LBJ Freeway, Suite
        1740, Dallas, Texas 75240-2697, or call her at 972.450.4206.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2009
        ANNUAL MEETING OF STOCKHOLDERS</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
        stockholders may submit proposals on matters appropriate for stockholder action
        at our annual stockholder meetings, consistent with rules adopted by the
        SEC.&#160;&#160;We must receive such proposals not later than January 1, 2009 to
        be considered for inclusion in the proxy statement and form of proxy card
        relating to our annual meeting of stockholders in 2009 (the date by which we
        must receive shareholder proposals to be considered for inclusion in the proxy
        statement relating to our 2008 annual meeting of stockholders has already
        passed).&#160;&#160;Our Amended and Restated Bylaws require that the proposal
        must set forth a brief description of the proposal, the name and address of
        the
        proposing stockholder as they appear on our books, the number of shares of
        our
        common stock the stockholder holds and any material interest the stockholder
        has
        in the proposal.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
        board
        of directors will consider the director nominee recommendations of our
        stockholders.&#160;&#160;Our Amended and Restated Bylaws require that a
        nomination set forth the name and address of the nominating stockholder, a
        representation that the stockholder will be a stockholder of record entitled
        to
        vote at the annual stockholder meeting and intends to appear in person or by
        proxy at the meeting to nominate the nominee, a description of all arrangements
        or understandings between the stockholder and the nominee (or other persons
        pursuant to which the nomination is to be made), such other information
        regarding the nominee as would be required to be included in a proxy statement
        filed pursuant to the proxy rules of the SEC and the consent of the nominee
        to
        serve as a director if elected.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">For
        proposals or director nominations to be brought at the 2009 annual meeting
        of
        stockholders but not included in the proxy statement for such meeting, our
        Amended and Restated Bylaws require that the proposal or nomination must be
        delivered or mailed to our principal executive offices in most cases no later
        than March 17, 2009 (such proposals to be brought at the 2008 annual meeting
        of
        stockholders must be delivered or mailed in most cases no later than March
        17,
        2008).&#160;&#160;Proposals and nominations should be addressed to Sandra K.
        Myers, corporate secretary at Keystone Consolidated Industries, Inc., Three
        Lincoln Centre, 5430 LBJ Freeway, Suite 1740, Dallas, Texas
        75240-2697.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div align="center">
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB2" style="LETTER-SPACING: 8pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 8pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 8pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 8pt">&#160;&#160;&#160;</font><font id="TAB2" style="LETTER-SPACING: 8pt">&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 8pt">&#160;&#160;&#160;</font>&#160;
  
        <div align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB2" style="LETTER-SPACING: 8pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 8pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 8pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 8pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 8pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 8pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 8pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 8pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 8pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 8pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 8pt">&#160;</font>KEYSTONE
          CONSOLIDATED INDUSTRIES, INC.
  </font></div>
        <div align="left">&#160;</div>
        <div align="left">&#160;</div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB2" style="LETTER-SPACING: 8pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 8pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 8pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 8pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 8pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 8pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 8pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 8pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 8pt">&#160;&#160;&#160;</font>&#160;<font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Dallas,
        Texas</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; LETTER-SPACING: 8pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; LETTER-SPACING: 8pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; LETTER-SPACING: 8pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; LETTER-SPACING: 8pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; LETTER-SPACING: 8pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; LETTER-SPACING: 8pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; LETTER-SPACING: 8pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; LETTER-SPACING: 8pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; LETTER-SPACING: 8pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 8pt">&#160;&#160;&#160;</font>&#160;
  January
        7,
        2008</font></div>
      <div><br>&#160;</div>
      <div>&#160;</div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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          </div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">7</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right">
          </div>
        </div>
      </div>
      <div>&#160;</div>
      <div><br>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: right" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-STYLE: italic; FONT-FAMILY: Times New Roman">APPENDIX
          A</font></div><br>
        <div align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">TEXT
          OF PROPOSED AMENDMENT TO </font></div>
        <div align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">AMENDED
          AND RESTATED CERTIFICATE OF INCORPORATION OF </font></div>
        <div align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">KEYSTONE
          CONSOLIDATED INDUSTRIES, INC. </font></div><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Article
        IV, Section 4.1 of the Amended and Restated Certificate of Incorporation of
        Keystone Consolidated Industries, Inc., shall be amended and restated as
        follows:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 72pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Section
        4.1.&#160;&#160;Authorized Stock.&#160;&#160;The total number of shares of stock
        that the Corporation shall have the authority to issue is 20,001,000 shares,
        consisting of 20,000,000 shares of common stock, par value $0.01 per share
        (the
  &#8220;Common Stock&#8221;), and 1,000 shares of preferred stock, par value $0.01 per share
        (the &#8220;Preferred Stock&#8221;).</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div><br>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="left">
          </div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
          </div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right">
          </div>
        </div>
      </div><br>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">KEYSTONE
        CONSOLIDATED INDUSTRIES, INC.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Three
        Lincoln Centre</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5430
        LBJ Freeway, Suite 1740</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Dallas,
        Texas&#160;&#160;75240</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">PROXY
        FOR THE SPECIAL MEETING OF STOCKHOLDERS</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">TO
        BE HELD ON JANUARY 18, 2008</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">THIS
        PROXY IS SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">OF
        KEYSTONE CONSOLIDATED INDUSTRIES, INC.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>The
        undersigned hereby appoints Bert E.
        Downing, Jr., E. Pierce Marshall, Jr. and Sandra K. Myers, and each of them,
        proxy and attorney-in-fact for the undersigned, with full power of substitution,
        to vote on behalf of the undersigned at the Special Meeting of Stockholders
        (the
  &#8220;Meeting&#8221;) of <font style="DISPLAY: inline; FONT-WEIGHT: bold">KEYSTONE
        CONSOLIDATED INDUSTRIES, INC</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">.</font>, a Delaware
        corporation
        (&#8220;Keystone&#8221;), to be held at Keystone&#8217;s corporate offices at Three Lincoln
        Centre, 5430 LBJ Freeway, Suite 1740, Dallas, Texas on Friday, January 18,
        2008
        at 10:00 a.m. (local time), and at any adjournment or postponement of the
        Meeting, all of the shares of common stock, par value $0.01 per share, of
        Keystone standing in the name of the undersigned or that the undersigned may
        be
        entitled to vote on the proposals set forth, and in the manner directed, on
        this
        proxy card.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-STYLE: italic; FONT-FAMILY: Times New Roman">THIS
        PROXY MAY BE REVOKED AS SET FORTH IN THE KEYSTONE PROXY STATEMENT THAT
        ACCOMPANIED THIS PROXY CARD.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-STYLE: italic; FONT-FAMILY: Times New Roman">The
        proxies, if this card is properly executed, will vote in the manner directed
        on
        this card.&#160;&#160;If no direction is made, the proxies will vote &#8220;FOR&#8221;
  proposal 1 below and, to the extent allowed by applicable law, in the discretion
        of the proxies as to all other matters that may properly come before the Meeting
        and any adjournment or postponement thereof.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">
  
            <tr valign="top">
              <td align="right" style="WIDTH: 18pt">
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1.&#160;&#160;</font></div>
              </td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">To
                  approve an amendment to Keystone&#8217;s Amended and Restated Certificate of
                  Incorporation to increase the number of authorized shares of Common
                  Stock
                  from 11,000,000 shares to 20,000,000
                  shares.</font></div>
              </td>
            </tr>
  
        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: -7.2pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">[&#160;
  ]
        <font style="DISPLAY: inline; FONT-WEIGHT: bold">FOR</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
  [&#160; ] <font style="DISPLAY: inline; FONT-WEIGHT: bold">AGAINST</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
        [&#160; ] <font style="DISPLAY: inline; FONT-WEIGHT: bold">ABSTAIN</font></font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">
  
            <tr valign="top">
              <td align="right" style="WIDTH: 18pt">
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2.&#160;&#160;</font></div>
              </td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">To
                  transact such other business as may properly come before the Meeting
                  and
                  any adjournment or postponement
                  thereof.</font></div>
              </td>
            </tr>
  
        </table>
      </div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: -7.2pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">[
  &#160;]
        <font style="DISPLAY: inline; FONT-WEIGHT: bold">FOR</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
  [&#160; ] <font style="DISPLAY: inline; FONT-WEIGHT: bold">AGAINST</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
        [ &#160;] <font style="DISPLAY: inline; FONT-WEIGHT: bold">ABSTAIN</font></font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: -7.2pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Receipt
        of the Keystone Proxy Statement dated January 7, 2008 is hereby
        acknowledged.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 144pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: -7.2pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Signature:&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;____________________________________________________&#160;&#160;&#160;&#160;&#160;&#160;
        <font id="TAB1" style="MARGIN-LEFT: 108pt"></font></font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 144pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: -7.2pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Signature
        if</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 144pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: -7.2pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">jointly
        held:&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;____________________________________________________&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
  <font id="TAB1" style="MARGIN-LEFT: 108pt"></font></font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 144pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: -7.2pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Dated:&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;_______________________________________________&#160;,
        2008</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Please
        sign exactly as the name that appears on this card.&#160;&#160;Joint owners
        should each sign.&#160;&#160;When signing other than in an individual capacity,
        please fully describe such capacity.&#160;&#160;Each signatory hereby revokes
        all proxies heretofore given to vote at said Meeting and any adjournment or
        postponement thereof.</font></div><br>
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metadata_documents: [{"type": "144", "sequence": "1", "filename": "kciproxyschd14a_01032008.htm", "description": "KEYSTONE CONSOLIDATED INDUSTRIES, INC. - DEFINATIVE PROXY STATEMENT SCHEDULE 14A - 01-03-2008", "secsgml_size_bytes": 180894}]
text: kciproxyschd14a_01032008.htm
  UNITED
        STATES
  SECURITIES
        AND EXCHANGE COMMISSION
  Washington,
        D.C.   20549
  SCHEDULE
        14A
  Proxy
        Statement Pursuant to Section 14(a) of the
  Securities
        Exchange Act of 1934
  Filed
                    by Registrant:
  ý
  Filed
                    by a Party other than the Registrant:
  ¨
  Check
        the
        appropriate box:
  ¨
  Preliminary
                    Proxy Statement
  ¨
  Confidential,
                    for Use of the
                    Commission Only (as permitted by
                    Rule 14a-6(e)(2))
  ý
  Definitive
                    Proxy Statement
  ¨
  Definitive
                    Additional Materials
  ¨
  Soliciting
                    Material Pursuant to § 240.14a-12
  Keystone
        Consolidated Industries, Inc.
  (Name
          of
          Registrant as Specified in Its Charter)
  (Name
          of
          Person(s) Filing Proxy Statement, if other than the
          Registrant)
  Payment
        of Filing Fee (Check the appropriate box):
  ý
  No
                  fee required.
  ¨
  Fee
                  computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11.
  1)
  Title
                  of each class of securities to which transaction applies:
  ______________________________________________________________
  2)
  Aggregate
                  number of securities to which transaction applies:
  ______________________________________________________________
  3)
  Per
                  unit price or other underlying value of transaction computed pursuant
                  to
                  Exchange Act Rule 0-11 (set forth the amount on which the filing fee
                  is calculated and state how it was determined):
  _______________________________________________________________
  4)
  Proposed
                  maximum aggregate value of transaction:
  _______________________________________________________________
  5)
  Total
                  fee paid:
  _______________________________________________________________
  ¨
  Fee
                  paid previously with preliminary materials.
  ¨
  Check
                  box if any part of the fee is offset as provided by Exchange Act
                  Rule 0-11(a)(2) and identify the filing for which the offsetting fee
                  was paid previously.  Identify the previous filing by
                  registration statement number, or the Form or Schedule and the date
                  of its
                  filing.
  1)
  Amount
                  Previously Paid:
  ________________________________________________________________
  2)
  Form,
                  Schedule or Registration Statement No.:
  ________________________________________________________________
  3)
  Filing
                  Party:
  ________________________________________________________________
  4)
  Date
                    Filed:
  ________________________________________________________________
  Keystone
          Consolidated Industries, Inc.
  Three
          Lincoln Centre
  5430
          LBJ Freeway, Suite 1740
  Dallas,
          Texas  75240
  January
        7, 2008
  To
        Our
        Stockholders:
  You
        are
        cordially invited to attend a Special Meeting of Stockholders of Keystone
        Consolidated Industries, Inc. that will be held on Friday, January 18, 2008
        at
        10:00 a.m., local time, at Keystone's corporate offices at Three Lincoln Centre,
        5430 LBJ Freeway, Suite 1740, Dallas, Texas.  The matters to be acted
        upon at the meeting are described in the attached Notice of Special Meeting
        of
        Stockholders and Proxy Statement.
  Whether
        or not you plan to attend the special meeting, please complete, date, sign
        and
        return the enclosed proxy card or voting instruction form in the accompanying
        envelope as promptly as possible to ensure that your shares are represented
        and
        voted in accordance with your wishes.  Your vote, whether given by
        proxy or in person at the meeting, will be held in confidence by the inspector
        of election as provided in Keystone's Amended and Restated Bylaws.
  Sincerely,
  /s/
  Glenn
        R. Simmons
  ---------------------------------------------------------
  Glenn
        R.
        Simmons,
  Chairman of the
        Board
  Keystone
          Consolidated Industries, Inc.
  Three
          Lincoln Centre
  5430
          LBJ Freeway, Suite 1740
  Dallas,
          Texas  75240
  NOTICE
        OF SPECIAL MEETING OF STOCKHOLDERS
  To
        be held on January 18, 2008
  To
        the
        Stockholders of
  Keystone
        Consolidated Industries, Inc.:
  A
        Special
        Meeting of Stockholders of Keystone Consolidated Industries, Inc., a Delaware
        corporation, will be held on Friday, January 18, 2008 at 10:00 a.m., local
        time, at the offices of Keystone at 5430 LBJ Freeway, Suite 1740,
        Dallas, Texas, for the following purposes:
  (1)
  To
                  approve an amendment to Keystone's Amended and Restated Certificate of
                  Incorporation to increase the number of our authorized shares of
                  common
                  stock from 11,000,000 shares to 20,000,000 shares;
                  and
  (2)
  To
                  transact such other business as may properly come before the special
                  meeting or any adjournment or postponement
                  thereof.
  The
        close
        of business on December 26, 2007 has been set as the record date for the special
        meeting.  Only holders of our common stock at the close of business on
        the record date are entitled to notice of, and to vote at, the special
        meeting.  A complete list of stockholders entitled to vote at the
        special meeting will be available for examination during normal business hours
        by any of our stockholders, for purposes related to the special meeting, for
        a
        period of ten days prior to the special meeting at our corporate
        offices.
  You
        are
        cordially invited to attend the special meeting.  Whether or not you
        plan to attend the special meeting, please complete, date and sign the
        accompanying proxy card or voting instruction form and return it promptly in
        the
        enclosed envelope.  If you choose, you may still vote in person at the
        special meeting even though you previously submitted your proxy
        card.
  By
        Order
        of the Board of Directors,
  /s/
  Sandra
        K. Myers
  --------------------------------------------------------
  Sandra
          K.
          Myers,
  Secretary
  Dallas,
        Texas
  January
        7, 2008
  TABLE
        OF CONTENTS
  Page
  TABLE
                  OF
                  CONTENTS.………………………………………………………………………………..............................................................................................................................................………..
  i
  GLOSSARY
                  OF
                  TERMS……………………………………………………………………………………...............................................................................................................................................…..
  i
  GENERAL
                  INFORMATION…………………………………………………………………………………...............................................................................................................................................…
  1
  QUESTIONS
                  AND ANSWERS ABOUT THE SPECIAL
                  MEETING……………………………………..............................................................................................................................................…..
  1
  SECURITY
                  OWNERSHIP………………………………………………………………………………...............................................................................................................................................………
  3
  PROPOSAL………………………………………………………………………………………................................................................................................................................................……………..
  4
  CONTROLLING
                  STOCKHOLDER………………………………………………………………................................................................................................................................................……………
  6
  OTHER
                  MATTERS……………………………………………………………………………………………................................................................................................................................................
  6
  ADDITIONAL
                  COPIES.…………………………………………………………………………………………............................................................................................................................................
  7
  2009
                  ANNUAL MEETING OF
                  STOCKHOLDERS.………………………………………………………............................................................................................................................................……
  7
  GLOSSARY
        OF TERMS
  "
  Computershare
  "
  means
        Computershare Investor Services L.L.C., our stock transfer agent and
        registrar.
  "c
  ommon
        stock
  " means common
        stock of Keystone Consolidated Industries, Inc., par value $0.01 per
        share.
  "
  Contran
  "
  means
        Contran
        Corporation, our parent corporation.
  "
  Keystone
  ,"
  "us,"
  "we"
  or
        "our" means Keystone Consolidated Industries, Inc.
  "
  record
        date
  " means the close
        of business on December 26, 2007 the date our Chief Executive Officer, pursuant
        to resolutions adopted by our board of directors, set for the determination
        of
        stockholders entitled to notice of, and to vote at, the special meeting of
        our
        stockholders to be held on January 18, 2008.
  "
  SEC
  "
  means
        the U.S.
        Securities and Exchange Commission.
  i
  Keystone
        Consolidated Industries, Inc.
  Three
        Lincoln Centre
  5430
        LBJ Freeway, Suite 1740
  Dallas,
        Texas  75240
  PROXY
        STATEMENT
  GENERAL
  INFORMATION
  This
        proxy statement and the accompanying proxy card or voting instruction form
        are
        being furnished in connection with the solicitation of proxies by and on behalf
        of our board of directors for use at our Special Meeting of Stockholders to
        be
        held on Friday, January 18, 2008 and at any adjournment or postponement of
        the
        special meeting.  The accompanying notice of special meeting of
        stockholders sets forth the time, place and purposes of the special
        meeting.  The notice, this proxy statement, and the accompanying proxy
        card or voting instruction form are first being mailed on or about January
        7,
        2008 to the holders of our common stock at the close of business on December
        26,
        2007.  Our principal executive offices are located at Three Lincoln
        Centre, 5430 LBJ Freeway, Suite 1740, Dallas, Texas
        75240-2697.
  Please
        refer to the Glossary of Terms on page i for the definitions of certain
        capitalized or other terms used in this proxy statement.
  QUESTIONS
        AND ANSWERS ABOUT THE SPECIAL MEETING
  Q:           
        What is the purpose of the special meeting?
  A:
  At
                  the special meeting, stockholders will vote on a proposal to approve
                  an
                  amendment to our Amended and Restated Certificate of Incorporation
                  to
                  increase the number of our authorized shares of common stock from
                  11,000,000 shares to 20,000,000 shares and to transact such other
                  business
                  that may properly come before the special meeting.
  Q:           
        How does the board recommend that I vote?
  A:
  Our
                  board of directors recommends that you vote
  FOR
  the proposal
                  to
                  amend our Amended and Restated Certificate of Incorporation.
  Q:           
        Who is allowed to vote at the special meeting?
  A:
  Our
                  Chief Executive Officer pursuant to resolutions adopted by our board
                  of
                  directors has set the close of business on December 26, 2007 as the
                  record
                  date for the determination of stockholders entitled to notice of,
                  and to
                  vote at, the special meeting. Only holders of record of our common
                  stock
                  as of the close of business on the record date are entitled to vote
                  at the
                  special meeting. On the record date, 10,000,000 shares of our common
                  stock
                  were issued and outstanding. Each share of our common stock entitles
                  its
                  holder to one vote.
  Q:           
        How do I vote?
  A:
  If
                  your shares are held by a bank, broker or other nominee (
  i.e.,
  in "street
                  name"), then you must follow the instructions from your nominee on how
                  to
                  vote your shares.
  If
        you
        are a stockholder of record, you may:
  ·
  vote
                  in person at the special meeting;
                  or
  ·
  instruct
                  the agents named on the proxy card how to vote your shares by completing,
                  signing and mailing the enclosed proxy card in the envelope
                  provided.
  If
        you execute a proxy card but do not indicate how you would like your shares
        voted, then the agents will vote FOR the proposal to amend our
  Amended and
        Restated
  Certificate of Incorporation and, to the extent allowed by
        applicable law, in the discretion of the agents on any other business that
        may
        properly come before the special meeting.
  1
  Q:           
        Who will count the votes?
  A:
  Our
                  board of directors has appointed Computershare to receive proxies
                  and
                  ballots, ascertain the number of shares represented and tabulate
                  the vote
                  for the special meeting.
  Q:           
        May I change or revoke my proxy or voting instructions?
  A:
  If
                  you are a stockholder of record, then you may change or revoke your
                  proxy
                  instructions at any time before the special meeting in any of the
                  following ways:
  ·
  delivering
                  to Computershare a written
                  revocation;
  ·
  submitting
                  another proxy card bearing a later date;
                  or
  ·
  voting
                  in person at the special meeting.
  If
        your
        shares are held by a bank, broker or other nominee, then you must follow the
        instructions from your nominee on how to change or revoke your voting
        instructions.
  Q:           
        What constitutes a quorum?
  A:
  A
                  quorum is the presence, in person or by proxy, of a majority of the
                  votes
                  from holders of the outstanding shares of our common stock entitled
                  to
                  vote at the special meeting. Brokers or other nominees holding shares
                  of
                  record on behalf of a client who is the actual beneficial owner of
                  such
                  shares are authorized to vote on certain routine matters, including
                  the
                  proposal to amend our Amended and Restated Certificate of Incorporation,
                  without receiving instructions from the beneficial owner of the shares.
                  If
                  such a broker/nominee who is entitled to vote on a routine matter
                  delivers
                  an executed proxy card and does not vote on the matter, such a vote
                  is
                  referred to in this proxy statement as a "broker/nominee non-vote." Shares
                  of common stock that are voted to abstain from any business coming
                  before
                  the special meeting and broker/nominee non-votes will be counted
                  as being
                  in attendance at the special meeting for purposes of determining
                  whether a
                  quorum is present.
  Q:
  What
                  vote is required to approve the proposal to amend our Amended and
                  Restated
                  Certificate of Incorporation?
  A:
  If
                  a quorum is present, then the affirmative vote of the holders of
                  a
                  majority of our outstanding shares of common stock entitled to be
                  voted at
                  the special meeting is necessary to approve the proposal to amend
                  our
                  Amended and Restated Certificate of Incorporation. Abstentions and
                  broker/nominee non-votes will have the same effect as a vote against
                  the
                  proposal to amend our Amended and Restated Certificate of Incorporation.
  Except
                  as applicable laws may otherwise provide, if a quorum is present,
                  then the
                  approval of any other business that may properly come before the
                  special
                  meeting will require the affirmative vote of the holders of a majority
                  of
                  the outstanding shares represented and entitled to vote at the special
                  meeting.  Shares of our common stock that are voted to abstain
                  from any other business coming before the special meeting and
                  broker/nominee non-votes will not be counted as votes for or against
                  any
                  such other business.
  Q:           
        Who will pay for the cost of soliciting the proxies?
  A:
  We
                  will pay all expenses related to the solicitation, including charges
                  for
                  preparing, printing, assembling and distributing all materials delivered
                  to stockholders. In addition to the solicitation by mail, our directors,
                  officers and regular employees may solicit proxies by telephone or
                  in
                  person for which such persons will receive no additional compensation.
                  We
                  have retained The Altman Group, Inc. to aid in the distribution of
                  this
                  proxy statement and related materials at an estimated cost of $1,500.
                  Upon
                  request, we will reimburse banking institutions, brokerage firms,
                  custodians, trustees, nominees and fiduciaries for their reasonable
                  out-of-pocket expenses incurred in distributing proxy materials and
                  voting
                  instructions to the beneficial owners of our common stock that such
                  entities hold of record.
  2
  SECURITY
        OWNERSHIP
  Ownership
        of
        Keystone.
  The following table and footnotes set forth as of
        the record date the beneficial ownership, as defined by regulations of the
        SEC,
        of our common stock held by each individual, entity or group known to us to
        own
        beneficially more than 5% of the outstanding shares of our common stock, each
        director, each of our executive officers and all of our directors and executive
        officers as a group.  See footnote 4 below for information concerning
        the relationships of certain individuals and entities that may be deemed to
        own
        indirectly and beneficially more than 5% of the outstanding shares of our common
        stock.  All information is taken from or based upon ownership filings
        made by such individuals or entities with the SEC or upon information provided
        by such individuals or entities.
  Keystone
                        Common Stock
  Name
                        of Beneficial
                        Owner
  Amount
                      and Nature of
  Beneficial
                        Ownership
  (1)
  Percent
                      of
  Class
  (1)(2)
  Harold
                      C. Simmons
  (3)
  .........................................................................................................................
  -0-
  (4)
  -0-
  Contran
                      Corporation
  (3)
  ................................................................................................................
  5,100,000
  (4)
  51.0%
  Annette
                      C. Simmons
  (3)
  ................................................................................................................
  10,000
  (4)
  *
  5,110,000
  (4)
  51.1%
  Third
                      Point LLC
  (5)
  ...........................................................................................................................
  990,000
  (6)
  9.9%
  Paul
                      M. Bass
  ..................................................................................................................................
  -0-
  -0-
  Richard
                      R. Burkhart
  ..........................................................................................................................
  -0-
  -0-
  John
                      R. Parker
  .................................................................................................................................
  -0-
  -0-
  Glenn
                      R. Simmons
  ............................................................................................................................
  -0-
  (4)
  -0-
  Troy
                      T. Taylor
  ................................................................................................................................
  -0-
  -0-
  Steven
                      L. Watson
  ............................................................................................................................
  -0-
  (4)
  -0-
  Donald
                      P. Zima
  ................................................................................................................................
  -0-
  -0-
  David
                      L. Cheek
  ................................................................................................................................
  -0-
  -0-
  Bert
                      E. Downing, Jr.
  ..........................................................................................................................
  -0-
  -0-
  C.
                      Vic Stirnaman
  ..............................................................................................................................
  -0-
  -0-
  John
                      M. Thomas
  .............................................................................................................................
  -0-
  -0-
  All
                      our directors and executive officers as a group (11 persons)
  ................................................................
  -0-
  (4)
  -0-
  ——————————
  *
  Less than 1%.
  (1)
  Except
                      as otherwise noted, the listed entities, individuals or group
                      have sole
                      investment power and sole voting power as to all shares set forth
                      opposite
                      their names.
  (2)
  The
                      percentages are based on 10,000,000 shares of our common stock
                      outstanding
                      as of the record date.
  (3)
  The
                      business address of Contran Corporation, Mr. Harold C. Simmons,
                      and Mrs.
                      Annette C. Simmons is Three Lincoln Centre, 5430 LBJ Freeway,
                      Suite 1700,
                      Dallas, Texas 75240-2697.
  (4)
  Substantially
                      all of Contran's outstanding voting stock is held by trusts established
                      for the benefit of certain children and grandchildren of
                      Mr.  Harold C. Simmons, of which Mr. Simmons is the sole
                      trustee, or held by Mr. Simmons or persons or other entities
                      related to
                      Mr. Simmons.  As sole trustee of these trusts, Mr. Harold C.
                      Simmons has the power to vote and direct the disposition of the
                      shares of
                      Contran stock held by these trusts.  Mr. Harold C. Simmons,
                      however, disclaims beneficial ownership of any Contran shares
                      these trusts
                      hold.  Mr. Harold C.  Simmons is also the chairman of
                      the board of Contran.
  By
                      virtue of the holding of his office with Contran, Contran's stock
                      ownership and his services as trustee, as described above, (a)
                      Mr. Harold
                      C. Simmons may be deemed to control us and (b) Mr. Simmons may
                      be deemed
                      to possess indirect beneficial ownership of the shares or our
                      common stock
                      directly held by Contran.  However, Mr. Harold C. Simmons
                      disclaims beneficial ownership of any shares beneficially owned,
                      directly
                      or indirectly, by Contran.
  Mrs. Annette C. Simmons is
                      the wife of Mr.
                      Harold C. Simmons.  She is the direct owner of 10,000 shares of
                      our common stock.  Mr. Harold C. Simmons may be deemed to share
                      indirect beneficial ownership of such shares.  Mr. Harold
                      C. Simmons disclaims all such beneficial ownership.
  Messrs.
                      Glenn R. Simmons and Steven L. Watson are directors and officers
                      of
                      Contran, and Mr. Glenn  R. Simmons is the brother of
                      Mr. Harold C. Simmons.
  3
  (5)
  The
                      business address of Third Point LLC is 390 Park Avenue, New York,
                      NY
                      10022.
  (6)
  Of
                      the reported holdings, Third Point Offshore Fund, Ltd. holds
                      shared voting
                      power, shared dispositive power and beneficial ownership with
                      respect to
                      636,700 shares and Third Point, LLC and Daniel S. Loeb each hold
                      shared
                      voting power, shared dispositive power and beneficial ownership
                      with
                      respect to 990,000 shares.
  We
        understand that Contran and related entities may consider acquiring or disposing
        of shares of our common stock through open market or privately negotiated
        transactions, depending upon future developments, including, but not limited
        to,
        the availability and alternative uses of funds, the performance of our common
        stock in the market, an assessment of our business and prospects, financial
        and
        stock market conditions and other factors deemed relevant by such
        entities.  We may similarly consider acquisitions of shares of our
        common stock and acquisitions or dispositions of securities issued by related
        entities.
  PROPOSAL
  TO
        APPROVE AN AMENDMENT TO OUR AMENDED AND RESTATED
  CERTIFICATE
        OF INCORPORATION TO INCREASE THE NUMBER OF OUR
  AUTHORIZED
        SHARES OF COMMON STOCK
  General
  Our
        board
        of directors has approved, subject to stockholder approval, an amendment to
        Article IV, Section 4.1 of our Amended and Restated Certificate of Incorporation
        to increase the number of our authorized shares of common stock from 11,000,000
        shares to 20,000,000 shares.  Our board of directors has determined
        that the proposed amendment to our Amended and Restated Certificate of
        Incorporation is advisable and in the best interests of Keystone and its
        stockholders.
  Text
        and Effectiveness of Proposed Amendment
  A
        copy of
        the proposed amendment to our Amended and Restated Certificate of Incorporation
        to increase the number of our authorized shares of common stock is attached
        as
  Appendix A
  to this
        proxy statement.  The proposed amendment, if approved by our
        stockholders, would become effective upon the filing with the Secretary of
        State
        of the State of Delaware of a certificate of amendment that contains the
        proposed amendment.  Although we currently intend to cause the
        proposed amendment to become effective as soon as practicable after the special
        meeting, our board of directors reserves the right not to file the certificate
        of amendment and to abandon the proposed amendment for any reason and at any
        time before its effectiveness, including after obtaining stockholder approval
        of
        the proposed amendment at the special meeting.
  Purpose
        of the Proposed Amendment
  As
        of the
        record date, there were 11,000,000 shares of common stock authorized by our
        Amended and Restated Certificate of Incorporation, of which 10,000,000 shares
        were outstanding.  Increasing our authorized number of shares of
        common stock as contemplated by the proposed amendment to our Amended and
        Restated Certificate of Incorporation will provide us with sufficient authorized
        but unissued shares of common stock (i) to effect the subscription rights
        offering, described below, pursuant to which we plan to raise up to $25,000,000
        through the issuance of up to 2,500,000 shares of common stock (the
  "Subscription Rights Offering"); and (ii) for future use in transactions
        approved by our board of directors, including, among others, equity financings,
        stock splits, stock dividends, equity incentive plans, acquisitions and other
        corporate purposes.
  We
        believe that by having sufficient authorized but unissued shares of common
        stock
        that we can issue without stockholder approval (except as required by applicable
        law or regulation, our Amended and Restated Certificate of Incorporation, or
        the
        rules of any securities exchange or quotation system on which our common stock
        may be listed, if applicable) will be beneficial to us by providing us with
        flexibility to consider and act promptly when our board of directors determines
        the issuance of shares is advisable.  Our common stock is currently
        traded on the Over-The-Counter Bulletin Board, which does not impose corporate
        governance standards or require shareholder approval in connection with the
        issuance of equity securities.  Therefore, we can issue shares of our
        common stock or securities exercisable or convertible into shares of our common
        stock without obtaining stockholder approval in the discretion of our board
        of
        directors, subject to compliance with applicable law or regulation, our Amended
        and Restated Certificate of Incorporation and any contractual or other
        restrictions binding upon us.
  4
  Consequences
        of Effectiveness of Proposed Amendment
  If
        the
        proposed amendment to our Amended and Restated Certificate of Incorporation
        becomes effective, then the additional authorized shares of common stock would
        be available for issuance from time to time upon such terms and for such
        purposes as our board of directors may deem advisable, without stockholder
        approval except as discussed above and subject to compliance with any
        contractual or other restrictions binding upon us.  Except in
        connection with the proposed Subscription Rights Offering, our stockholders
        would not have any preemptive or similar rights to subscribe for or purchase
        any
        additional shares of common stock that may be issued in the future.
  The
        proposed amendment would not effect any changes to our currently outstanding
        common stock.  When issued by us, the additional authorized shares of
        common stock will have the same rights and privileges as the shares of common
        stock presently outstanding and will be fully paid and
        nonassessable.  Under our Amended and Restated Certificate of
        Incorporation, each share of common stock is entitled to one
        vote.  Holders of common stock are also entitled to receive dividends
        as and if declared by our board of directors; however, our revolving credit
        facility prohibits us from paying dividends without lender
        consent.  We do not currently anticipate paying dividends on our
        common stock in the foreseeable future.
  The
        issuance of additional shares of common stock in the future may, among other
        things, dilute our earnings or book value per share, or the voting power and
        other rights and interests of our existing stockholders.  The issuance
        of additional shares of common stock, or the perception that additional shares
        may be issued, may also adversely affect the market price of the common
        stock.  The availability for issuance of additional shares of common
        stock could further have the effect of rendering more difficult or discouraging
        an attempt to takeover or obtain control of Keystone.  For example,
        the issuance of shares of common stock in a public or private sale, merger,
        or
        similar transaction would increase the number of outstanding shares, thereby
        diluting the interest of a party attempting to takeover or obtain control of
        Keystone.  The issuance of additional shares of common stock may be
        used to render more difficult a similar transaction even if it appears to be
        desirable to a majority of our stockholders.  The proposed amendment
        is not a result of, nor does our board of directors have knowledge of, any
        effort to accumulate our common stock or to takeover or obtain control of us
        by
        means of a merger, tender offer, solicitation in opposition to our board of
        directors or otherwise, and the proposed amendment is not being presented to
        our
        stockholders for approval with the intent that it will be utilized as a type
        of
        anti-takeover device.
  The
        Subscription Rights Offering
  In
        October 2007, we announced our intention to offer to our stockholders up to
        an
        aggregate of 2,500,000 shares of our common stock for an aggregate price of
        up
        to $25,000,000, pursuant to the exercise of subscription rights to be
        distributed to our stockholders of record.  It is presently
        anticipated that each stockholder will receive 0.25 of a subscription right
        for
        each share of common stock held as of the record date for the Subscription
        Rights Offering and that each whole subscription right will entitle the holder
        thereof to purchase one share of common stock at a subscription price of $10.00
        per share.  It is also anticipated that stockholders who exercise
        their subscription rights in full may oversubscribe for additional shares not
        purchased by the other stockholders, subject to certain
        limitations.
  We
        will
        use the net proceeds from the sale of the common stock pursuant to the
        Subscription Rights Offering to reduce our indebtedness under our revolving
        credit facility, which was $45.8 million as of September 30, 2007 and which,
        in
        turn, will create additional availability under that facility that could be
        used
        for general corporate purposes, including scheduled debt payments, capital
        expenditures, potential acquisitions or the liquidity needs of our current
        operations.  If the proposed amendment to our Amended and Restated
        Certificate of Incorporation does not become effective, then we will not be
        able
        to complete the Subscription Rights Offering and raise the proceeds contemplated
        thereby, which could leave us with significant liquidity problems that may
        materially impair our operations.
  We
        filed a registration statement with
        the SEC covering the issuance of our shares of common stock pursuant to the
        Subscription Rights Offering.  We currently intend to distribute the
        Subscription Rights as soon as practicable following the effectiveness of the
        registration statement and subject to the approval of our proposed amendment
        to
        our Amended and Restated Certificate of Incorporation at the special meeting,
        to
        complete the Subscription Rights Offering 30 days after the Subscription Rights
        have been distributed.  Our board of directors reserves the right to
        amend or modify the terms of the Subscription Rights Offering or terminate
        or
        cancel the Subscription Rights Offering in its sole discretion at any time
        before the completion of the Subscription Rights Offering.  Our board
        of directors also reserves the right to cause the proposed amendment to become
        effective, subject to stockholder approval, even if our board of directors
        terminates or cancels the Subscription Rights Offering.
  5
  Vote
        Required
  The
        affirmative vote of the holders of a majority of our outstanding shares of
        common stock entitled to vote at the special meeting is necessary to approve
        the
        proposal to amend our Amended and Restated Certificate of
        Incorporation.  Abstentions will have the same effect as a vote
        against the proposal to amend our Amended and Restated Certificate of
        Incorporation.
  WHILE
        OUR
        STOCKHOLDERS ARE NOT BEING ASKED TO VOTE TO AUTHORIZE THE SUBSCRIPTION RIGHTS
        OFFERING, OUR ABILITY TO COMPLETE THE SUBSCRIPTION RIGHTS OFFERING IS DEPENDENT
        UPON STOCKHOLDER APPROVAL OF THE PROPOSED AMENDMENT TO OUR AMENDED AND RESTATED
        ARTICLES OF INCORPORATION TO INCREASE THE NUMBER OF AUTHORIZED SHARES OF COMMON
        STOCK.
  THIS
        PROXY STATEMENT DOES NOT CONSTITUTE AN OFFER TO SELL OR SOLICITATION OF AN
        OFFER
        TO BUY ANY SECURITIES.  ANY OFFER REGARDING THE SUBSCRIPTION RIGHTS
        OFFERING SHALL BE MADE ONLY THROUGH A SEPARATE PROSPECTUS.
  Board
        Recommendation
  Our
        Board
        of Directors recommends a vote
  FOR
  the proposal to approve
        an
        amendment to our Amended and Restated Certificate of Incorporation to increase
        the number of our authorized shares of common stock from 11,000,000 shares
        to
        20,000,000 shares.  Proxies solicited by our board of directors will
        be voted
  FOR
  this
        proposal unless instructions to the contrary are given.
  OUR
        BOARD
        OF DIRECTORS MAKES NO RECOMMENDATION AS TO WHETHER STOCKHOLDERS SHOULD EXERCISE
        ANY SUBSCRIPTION RIGHTS THAT MAY BE OFFERED TO THEM IN THE SUBSCRIPTION RIGHTS
        OFFERING.
  CONTROLLING
        STOCKHOLDER
  Contran
        owns 51.0% of our outstanding common stock as of the record
        date.  Contran has indicated its intention to have its shares of our
        common stock represented at the special meeting and voted
  FOR
  the proposal to amend
        our
        Amended and Restated Certificate of Incorporation to increase the number of
        our
        authorized shares of common stock from 11,000,000 shares to 20,000,000
        shares.  If Contran attends the special meeting in person or by proxy
        and votes as indicated, then the special meeting will have a quorum present
        and
        the stockholders will approve the proposal to amend our Amended and Restated
        Certificate of Incorporation.
  OTHER
        MATTERS
  Our
        board
        of directors
  knows
  of no
        other business that will be presented for consideration at the special
        meeting.  If any other business properly comes before the special
        meeting, then the persons designated as agents in the enclosed proxy card or
        voting instruction form will vote on such business in accordance with their
        reasonable judgment.
  6
  ADDITIONAL
        COPIES
  Pursuant
        to an SEC rule
  concerning
  the delivery of annual reports and proxy statements, a single set of these
        documents may be sent to any household at which two or more stockholders reside
        if they appear to be members of the same family.  Each stockholder
        continues to receive a separate proxy card.  This procedure, referred
        to as householding, reduces the volume of duplicate information stockholders
        receive and reduces mailing and printing expenses.  A number of
        brokerage firms have instituted householding.  Certain beneficial
        stockholders who share a single address may have received a notice that only
        one
        proxy statement would be sent to that address unless a stockholder at that
        address gave contrary instructions.  If, at any time, a stockholder
        who holds shares through a broker no longer wishes to participate in
        householding and would prefer to receive a separate proxy statement and related
        materials, or if such stockholder currently receives multiple copies of the
        proxy statement and related materials at his or her address and would like
        to
        request householding of our communications, then the stockholder should notify
        his or her broker.  Additionally, we will promptly deliver a separate
        copy of this proxy statement to any stockholder at a shared address to which
        a
        single copy of this proxy statement was delivered, upon the written or oral
        request of the stockholder.
  To
        obtain
        copies of this proxy statement without charge, please mail your request to
        the
        attention of Sandra K. Myers,
  corporate
  secretary, at Keystone
        Consolidated Industries, Inc., Three Lincoln Centre, 5430 LBJ Freeway, Suite
        1740, Dallas, Texas 75240-2697, or call her at 972.450.4206.
  2009
        ANNUAL MEETING OF STOCKHOLDERS
  Our
        stockholders may submit proposals on matters appropriate for stockholder action
        at our annual stockholder meetings, consistent with rules adopted by the
        SEC.  We must receive such proposals not later than January 1, 2009 to
        be considered for inclusion in the proxy statement and form of proxy card
        relating to our annual meeting of stockholders in 2009 (the date by which we
        must receive shareholder proposals to be considered for inclusion in the proxy
        statement relating to our 2008 annual meeting of stockholders has already
        passed).  Our Amended and Restated Bylaws require that the proposal
        must set forth a brief description of the proposal, the name and address of
        the
        proposing stockholder as they appear on our books, the number of shares of
        our
        common stock the stockholder holds and any material interest the stockholder
        has
        in the proposal.
  Our
        board
        of directors will consider the director nominee recommendations of our
        stockholders.  Our Amended and Restated Bylaws require that a
        nomination set forth the name and address of the nominating stockholder, a
        representation that the stockholder will be a stockholder of record entitled
        to
        vote at the annual stockholder meeting and intends to appear in person or by
        proxy at the meeting to nominate the nominee, a description of all arrangements
        or understandings between the stockholder and the nominee (or other persons
        pursuant to which the nomination is to be made), such other information
        regarding the nominee as would be required to be included in a proxy statement
        filed pursuant to the proxy rules of the SEC and the consent of the nominee
        to
        serve as a director if elected.
  For
        proposals or director nominations to be brought at the 2009 annual meeting
        of
        stockholders but not included in the proxy statement for such meeting, our
        Amended and Restated Bylaws require that the proposal or nomination must be
        delivered or mailed to our principal executive offices in most cases no later
        than March 17, 2009 (such proposals to be brought at the 2008 annual meeting
        of
        stockholders must be delivered or mailed in most cases no later than March
        17,
        2008).  Proposals and nominations should be addressed to Sandra K.
        Myers, corporate secretary at Keystone Consolidated Industries, Inc., Three
        Lincoln Centre, 5430 LBJ Freeway, Suite 1740, Dallas, Texas
        75240-2697.
  KEYSTONE
          CONSOLIDATED INDUSTRIES, INC.
  Dallas,
        Texas
  January
        7,
        2008
  7
  APPENDIX
          A
  TEXT
          OF PROPOSED AMENDMENT TO
  AMENDED
          AND RESTATED CERTIFICATE OF INCORPORATION OF
  KEYSTONE
          CONSOLIDATED INDUSTRIES, INC.
  Article
        IV, Section 4.1 of the Amended and Restated Certificate of Incorporation of
        Keystone Consolidated Industries, Inc., shall be amended and restated as
        follows:
  Section
        4.1.  Authorized Stock.  The total number of shares of stock
        that the Corporation shall have the authority to issue is 20,001,000 shares,
        consisting of 20,000,000 shares of common stock, par value $0.01 per share
        (the
  "Common Stock"), and 1,000 shares of preferred stock, par value $0.01 per share
        (the "Preferred Stock").
  KEYSTONE
        CONSOLIDATED INDUSTRIES, INC.
  Three
        Lincoln Centre
  5430
        LBJ Freeway, Suite 1740
  Dallas,
        Texas  75240
  PROXY
        FOR THE SPECIAL MEETING OF STOCKHOLDERS
  TO
        BE HELD ON JANUARY 18, 2008
  THIS
        PROXY IS SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS
  OF
        KEYSTONE CONSOLIDATED INDUSTRIES, INC.
  The
        undersigned hereby appoints Bert E.
        Downing, Jr., E. Pierce Marshall, Jr. and Sandra K. Myers, and each of them,
        proxy and attorney-in-fact for the undersigned, with full power of substitution,
        to vote on behalf of the undersigned at the Special Meeting of Stockholders
        (the
  "Meeting") of
  KEYSTONE
        CONSOLIDATED INDUSTRIES, INC
  .
  , a Delaware
        corporation
        ("Keystone"), to be held at Keystone's corporate offices at Three Lincoln
        Centre, 5430 LBJ Freeway, Suite 1740, Dallas, Texas on Friday, January 18,
        2008
        at 10:00 a.m. (local time), and at any adjournment or postponement of the
        Meeting, all of the shares of common stock, par value $0.01 per share, of
        Keystone standing in the name of the undersigned or that the undersigned may
        be
        entitled to vote on the proposals set forth, and in the manner directed, on
        this
        proxy card.
  THIS
        PROXY MAY BE REVOKED AS SET FORTH IN THE KEYSTONE PROXY STATEMENT THAT
        ACCOMPANIED THIS PROXY CARD.
  The
        proxies, if this card is properly executed, will vote in the manner directed
        on
        this card.  If no direction is made, the proxies will vote "FOR"
  proposal 1 below and, to the extent allowed by applicable law, in the discretion
        of the proxies as to all other matters that may properly come before the Meeting
        and any adjournment or postponement thereof.
  1.
  To
                  approve an amendment to Keystone's Amended and Restated Certificate of
                  Incorporation to increase the number of authorized shares of Common
                  Stock
                  from 11,000,000 shares to 20,000,000
                  shares.
  [ 
  ]
  FOR
  [  ]
  AGAINST
  [  ]
  ABSTAIN
  2.
  To
                  transact such other business as may properly come before the Meeting
                  and
                  any adjournment or postponement
                  thereof.
  [
   ]
  FOR
  [  ]
  AGAINST
  [  ]
  ABSTAIN
  Receipt
        of the Keystone Proxy Statement dated January 7, 2008 is hereby
        acknowledged.
  Signature:                ____________________________________________________
  Signature
        if
  jointly
        held:             ____________________________________________________
  Dated:                       _______________________________________________ ,
        2008
  Please
        sign exactly as the name that appears on this card.  Joint owners
        should each sign.  When signing other than in an individual capacity,
        please fully describe such capacity.  Each signatory hereby revokes
        all proxies heretofore given to vote at said Meeting and any adjournment or
        postponement thereof.