FORMER CORPORATE OFFICER PLEADS GUILTY TO TAX CHARGES

Panama City, Florida – Gregory R. Miller, United States Attorney for the Northern District of Florida, announced today that Carlton Gwyn Seigler, age 52, of Panama City, Florida, pleaded guilty on April 10, 2003, to three charges of filing false tax returns and one charge of mail fraud.

The charges related to activities while Mr. Seigler served as the controller and chief administrative officer at the Berg Steel and Pipe Corporation facility in Panama City. A subcontractor which hauled scrap metals from the Berg plant was allowed to underpay Berg for the value of the metals while the subcontractor paid a portion of its savings directly to Mr. Seigler. This process had the effect of shorting Berg for the value of its scrap metals and resulted in income to Mr. Seigler which he failed to report on his federal income tax returns for 1996, 1997 and 1998.

Mr. Seigler faces a maximum penalty of three years imprisonment and a fine of $100,000.00 for each of the federal income tax violations and five years imprisonment and a $250,000.00 fine for the fraud charge. According to a plea agreement filed in the case, Mr. Seigler agreed to pay restitution to the Berg Corporation in the amount of $390,000.00.

Sentencing is set in Tallahassee federal court on July 1, 2003.