Dear Fellow Shareholders,

Myers Industries achieved the highest revenues in its history in 2003, $661.1 million, and finished the year with fourth quarter revenues of $176.5 million, the highest of any quarter in the Company’s history. The year also saw record low profit margins. That is neither an acceptable nor a sustainable state of affairs. Profitability must return to viable levels in 2004.

We believe that we are changing the downward earnings trend recorded by the Company in the last couple of years. It has become clear that consolidation among suppliers of the commodity resins we use as raw material in our molded plastic activities has created a “sellers’ market,” reducing choice and competition in our purchasing actions. Cost cutting alone will not serve to rectify that situation. Nor will achieving greater amortization of our overhead through increased sales and manufacturing output.

While not ceasing or neglecting our cost management and efficiency programs, we must direct our efforts to those activities, whether in goods or services, which deliver greater compensable value to the customers and markets we serve. The fourth quarter of 2003 began to show some movement in that direction, as sales and profits increased over the comparable period of the previous year. We are working to continue that trend.

Operational Achievements

In our attempts to lower costs and improve operational efficiency, we have spent time rationalizing manufacturing facilities. We have moved to push volume through our low-cost facilities, placing more complex or cost-intensive processes into those areas where they will be less disruptive. Greater emphasis has been placed along functional lines as we attempt to aggregate capabilities across processes and markets. Cross-selling through sales forces and cross manufacturing through processes have been areas of opportunity and improvement in 2003. They will begin to show, we trust, measurable results in 2004.

Early this year, we were presented with an unusual opportunity to strengthen our existing rubber processing businesses with two fine companies with leading positions in their field. At the beginning of March, we acquired, in a single transaction, ATP Automotive, Inc., comprised of Michigan Rubber Products (MRP) and WEK Industries. MRP and WEK are suppliers of OE molded rubber and plastic components and subassemblies to the automotive industry. We feel that these companies present us with opportunities to expand existing activities. We believe that the strong market positions achieved by the people of MRP and WEK will be accretive to our earnings and to our mutual futures. We shall help one another to grow.

Cash Flow, Debt Reduction, and New Financing

The Company borrowed substantial monies to pay for acquisitions in 1999 and 2000. Since then, debt reduction was made a priority to strengthen our balance sheet once again. From its peak in October 2000 of $312.0 million, we reduced debt by $96.5 million to $215.5 million at the close of 2003. Most of that payback, $84.8 million, occurred over the last three years, with $17.4 million repaid last year. Debt as a percentage of total capitalization was 42 percent at December 31, 2003, compared to 48 percent at the end of 2002.

The cash flow to allow us to maintain debt reduction in a year of declining profitability came in part from reducing capital expenditures by almost 30 percent, from $28.3 million in 2002 to $20.0 million last year. No unnecessary investments were made, but no necessary ones were forgone. All manageable operating expenses were held to minimal growth in the face of increased unit volume output.

In December, we issued $100 million of senior unsecured notes in a private transaction with a limited number of institutional lenders. The total loan was comprised of $65 million of notes with a maturity date of December 12, 2010 at a fixed interest rate of 6.08 percent, and $35 million of notes with a maturity date of December 12, 2013 at a fixed interest rate of 6.81 percent. Proceeds from the issuance of the Notes were used to pay down the Company’s existing term loan and revolving credit facility borrowings outstanding at the time.

In February 2004, we closed on a new $225 million senior unsecured revolving credit facility with 10 lending banks. Borrowings under the Credit Facility were used to refinance the Company’s existing Multi-Currency Loan Agreement and fund the acquisition of Michigan Rubber Products and WEK Industries.

These new financing instruments strengthen our balance sheet, allow us to fulfill our capital requirements going forward, expand our sources of credit, and give us a good balance of floating and fixed interest rates for the next half dozen years. Both the Notes placement and new Credit Facility were oversubscribed. We believe this speaks highly of the confidence the investors and banks place in the Company’s growth plans.

Return to Shareholders

Although the annual amount of cash dividends paid in 2003 was greater than that paid in 2002, as has been the case in every year since the Company’s initial offering of stock to the public, it marked the first time in many years that an increase in the quarterly dividend paid was not authorized by the board of directors. On the other hand, it was neither decreased nor cut altogether. Myers Industries has always returned some cash to its investors, and we believe that paying a dividend is important and prudent.

Corporate Governance

Our efforts to improve our business and financial performance in a difficult environment have not been helped by the several bodies of regulations promulgated by the stock exchanges and regulatory authorities in their efforts to make sense of the dysfunctional “corporate governance” legislation hastily written and passed by Congress as the Sarbanes-Oxley Act of 2002. It has cost us, the shareholders, great amounts of money spent on unproductive activities to adopt required compliance behaviors in 2003. It will cost us more in 2004. That cost will be in the form of cash paid to outside accountants, consultants, and insurance companies. It has and will also be in the form of thousands of hours of employee and management time diverted from productive activities to perform the mandated tasks necessary to comply with the law.

Myers Industries has always regarded clarity, accuracy, timeliness, and relevance in financial reporting to be a high priority. We shall continue to adhere to those principles.

Lastly, in 2003, the Company added the position of president to John Orr’s duties as chief operating officer. The position recognizes the needs of a larger and more complex organization going forward. The placement of John in that position acknowledges the exceptional talent and work ethic of which he is possessed.

In closing we wish to thank, again, the more than 4,200 employees worldwide for their efforts on behalf of the Company, and also thank our customers, suppliers, and shareholders for their continued confidence and support.