MINE SAFETY APPLIANCES CO. (MSA - $63.27) Q3 Better Than Expected BUY Aggressive

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1 Richard A. Ryan (612) Safety Equipment Manufacturer November 6, 2003 Financial Summary Rev E 2004E (mil) March $128.1 $160.4A $175.1E June $141.9 $176.4A $192.0E Sept. $143.4 $173.5A $187.7E Dec. $151.1 $172.3E $188.0E FY $564.4 $683.0E $742.8E EPS E 2004E March $0.63 $0.86A $0.94E June $0.64 $0.99A $1.04E Sept. $0.43 $0.88A $0.94E Dec. $0.83 $0.89E $0.98E FY $2.54 $ 3.62E $3.90E P/E 24.9x 17.5x 16.2x P/Sales 1.4x 1.2x 1.1x 52-Week Range: $ Price Target: $75.00 Shares Outstanding: 12.5 mil Mkt. Capitalization: $790.9 mil Ave. Volume: 14,363 Inst. Ownership: 37% BV / Share $27.30 Div./Yield $0.80/1.3% Debt / Tot. Cap.: 18% Est. LT EPS Growth: 10%-12% Company Description MSA is primarily engaged in the manufacture and sale of products designed to protect the safety and health of people throughout the world. MINE SAFETY APPLIANCES CO. (MSA - $63.27) Q3 Better Than Expected BUY Aggressive Highlights: Q3 and special dividend both above expectations. Momentum should continue into Q4 and Action: Increasing estimates (slightly) for Q4 and for 2004 (see attached table). Increasing price target to $ MSA reported a much stronger Q3 than we expected. The markets primarily responsible to the out performance continue to be related to homeland security and the fire service. International efforts, outside of Europe, have shown good progress and should continue as the global economy picks up steam. Europe remains sluggish, but this market should show better results in the second half of 2004 and beyond. MSA announced it will pay out $53.9 million, the proceeds from the sale of its chemical division, to shareholders. The per share amount will be $4.38 and will be for holders of record on 11/14, with distribution on 11/24. This dividend is higher than anticipated, but reflects the cash flow generating ability of MSA. In Q3, cash flow from operations was about $24 million. MSA has a long operating history, and has established an impressive reputation of providing safety products globally. MSA has introduced a self-contained breathing apparatus approved under both the new U.S. Chemical Biological Radiological Nuclear (CBRN) Standard and the latest National Fire Protection Association (NFPA) Standard. Only MSA and Tyco have achieved such approval, which could be a critical advantage if, and when, the government requires such chemical and biological capabilities. The Department of Homeland Security has released $2.2 billion in grants to states and municipalities for first responder funding. Since March, DHS has allocated or awarded more than $6.0 billion in grants to first responders. We believe MSA is in an ideal position to benefit from this additional funding. MSA is conservatively managed. The pension plan is over-funded, and management definitely has skin in the game. There is a guideline for management s stock ownership dependent on salary levels. This commitment is beyond having their salary, bonus, benefits and pensions tied to the future of MSA. There is a hidden asset to the MSA story. MSA owned over 300 acres of land in a fast-growing northern suburb of Pittsburgh. It has built two of its own facilities on the property and is in the midst of developing the rest of the office park. Three office buildings have been put up and Hilton just opened a hotel on the property. We believe there is still around 200 acres left with potential land values of between $150K-$400K (per acre). This asset is on the books for less than $500K. Management has not provided guidance and we do not believe they will change this practice. Up to this point MSA has not held conference calls, but we do believe they will start this practice. Also, management has started a more pro-active investor relations campaign that includes non-banking institutional visits. Investment Recommendation/Valuation Method For Setting Price Target Our $75 price target is based on 19.2x our 2004 EPS estimate and 2.7x MSA s book value of $ At this level. MSA would be trading at 1.4x our 2004 sales estimate and at 9.0x EV/EBITDA. This target price doesn t include the approximate $5.00 per share that exists from the underlying real estate assets not reflected in the current book value. We reiterate our Buy rating for aggressive investment accounts. Feltl and Company Research Department. 120 South Sixth Street, Suite 2600 Minneapolis, MN Please see important disclosures at end of report.

2 INVESTMENT CONCLUSION Increasing funds for domestic First Responders, a growing base of retail business and the use of safety equipment internationally combine to create significant growth opportunities for MSA. Sales into the First Reponder channel and growing international safety concerns are apparent, but we expect the retail channel to be a more meaningful contributor. Currently, MSA provides products to about one-half of Home Depot stores. There are no pure-play comparables to consider when valuing MSA. The multibillion market is highly fragmented globally. MSA has established a dominant industry position, operates in a modest growth industry and generates generous cash flow for internal growth and strategic acquisitions. Industries with similar characteristics include office products retailers and select medical products companies and value-added distributors. Valuations for each of these sectors surpasses the current valuation of MSA by a wide margin. On a P/E basis, valuations for 2004 can range between 17x-30x (or more). Based on book value, multiples can range from 2.5x-6.0x. Our $75 price target is based on 19.2x our 2004 EPS estimate and 2.7x MSA s book value of $ At this level, MSA would be trading at 1.4x our 2004 sales estimate and at 9.0x EV/EBITDA. This target price doesn t include the approximate $5.00 per share that exists from the underlying real estate assets not reflected in the current book value. We are maintaining our Buy rating for aggressive investment accounts. COMPANY DESCRIPTION Headquartered in Pittsburgh, PA and incorporated in 1914, Mine Safety Appliances Company is the largest company dedicated to producing a complete range of equipment and systems for firefighters, homeland security, military, industrial workers and plant protection. MSA s operations extend globally through 28 international affiliates serving over 140 countries. Key offerings include respiratory protective equipment including gas masks and self-contained breathing apparatus, products for head, eye and face protection, hearing protection products, thermal imaging cameras, fall protection equipment, and portable and permanently installed gas detection and monitoring devices. MSA's Safety Products Division develops, manufactures and markets personal protective products such as respirators, self-contained breathing apparatus, hard hats, clothing, hearing protectors, eye and face protectors, and thousands of products used in industries worldwide. The company's Instrument Division does the same with thermal imaging cameras and sophisticated portable and continuous instruments to monitor workplace environments for toxic and combustible gases. Page2 Mine Safety Appliances Company (MSA) 11/6/03

3 THIRD QUARTER RESULTS REVENUE: Total sales were $171.9 million compared with $143.4 million in the year ago quarter, representing of gain of 19.9%. Other income in the quarter was $1.6 million compared to a loss of $232K a year ago. Strong demand for breathing apparatus products to the fire service market and gas masks for the U.S. military contributed to the strong sales increase. For the nine months, net sales were $508.3 million compared to $413.3, with other income being $2.1 million compared to $1.9 million. GROSS PROFIT: Gross profit (excluding other income) was $64.3 million or 37.4% compared with $53.2 million or 37.1%. For the nine months, gross margin was 38.1% versus 37.7%. OPERATING EXPENSES: Operating expenses increased 11% to $48.1 million, but the increase is well below the 19.9% sales increase. Management aggressively focuses on costs, and we do not think this discipline will change in the future. OPERATING INCOME: Operating income for the period was $17.7 million or 10.2% of sales compared with $9.5 million or 6.6% a year ago. For the nine months, operating income was $54.7 million versus $34.8 million. NET INCOME (LOSS): Net income from continuing operations was $111.0 million compared with $5.3 million. EPS from continuing operations was $0.88 versus $0.43. Discontinued operations added $1.09 this year versus $0.04 last year. For the nine months, net income from continuing operations was $33.7 million compared with $20.9 million. EPS from continuing operations was $2.72 versus $1.70. Discontinued operations added $1.32 this year versus $0.19 last year. FINANCIAL STRENGTH: Cash at the end of the quarter was $101.7 million, inclusive of the funds from the chemical division sale. MSA sells on a continuous basis an undivided interest in all eligible trade accounts receivable under a securitization agreement. There was $40.7 million in proceeds to MSA at September 30, DSOs were about 64 days, down from 74 days at the end of the second quarter. We do not have access to geographic dispersion of accounts receivable data, so the above calculation is a gross number for the company. We expect domestic DSOs are substantially below this number, and international (except perhaps Europe) is well above this number. Debt was $64 million, and shareholders equity was $341.3 million. Cash flow from continuing operations was about $24.0 million. Page3 Mine Safety Appliances Company (MSA) 11/6/03

4 OPERATING MODEL CHANGES: Revenue Est. Revenue Est. EPS Est. EPS Est. Old New Old New Q4 2003E $163.2 $172.3 $0.89 $ E $674.0 $683.0 $3.55 $3.62 Q1 2004E $175.1 $175.1 $0.93 $0.94 Q2 2004E $192.0 $192.0 $1.03 $1.04 Q $172.2 $187.7 $0.90 $0.94 Q $178.1 $188.0 $0.93 $ E $716.4 $742.8 $3.80 $3.90 RISKS THAT TARGET PRICE MAY NOT BE ACHIEVED Based on third quarter results, international revenue (Europe and Rest of World) amounted to about 37%. Foreign exchange gains in the second quarter amounted to $121K. Any factors affecting the ability of MSA to sell into these global markets, or factors creating dollar fluctuations can impact the operating results of MSA. While terrorism is a driving force behind the increased funding for first responders, such activities, should they occur, can create geo-political instability, which could impact MSA s results. It is incumbent on MSA to continue the timely and successful introduction of new products. R&D funds will continue to be needed to keep MSA s product line at the forefront for safety and effectiveness. Funds for first responders are an integral element in MSA s business strategy. U.S. budgets (and those from countries abroad) for first responders are expected to increase, but the timing of such spending is uncertain, and can fluctuate. The majority of MSA s sales are for products that it manufactures. Fluctuations in the cost and availability of key materials and components could impact MSA s operating performance. The ability of MSA to meet its sales and earnings forecasts can, and will, have a direct influence on its ability to repay debt. A failure to meet such expectations could impact MSA s ability to service or pay its debt. The foregoing list is not exhaustive. Other specific fundamental risks relating to MSA s operations can be found in the company s various 10K and 10Q filings. Companies referenced: Tyco Int l (TYC - $22.20 Not rated) Home Depot (HC - $37.10 Not rated) Analyst Certification I, Richard Ryan, certify that the views expressed in this research report accurately reflect my personal views about the subject company and its securities. I also certify that I have not been, am not, and will not receive direct or indirect compensation related to the specific recommendations expressed in this report. Page4 Mine Safety Appliances Company (MSA) 11/6/03

5 Mine Safety Appliances Co. Earnings Model Fiscal Year Ends - Dec. $s in 000s FY 2000 FY 2001 Q1 02 Q2 02 Q3 02 Q4 02 FY 2002 Q1 03 Q2 03 Q3 03 Q4 03E FY 2003 FY 2004 Net Sales $468,307 $509,736 $128,058 $141,862 $143,398 $151,108 $564,426 $160,391 $175,939 $171,927 $172,263 $680,520 $741,767 Other Income 2,444 2,776 (157) 2,312 (231) 347 2, , ,516 1,000 Total Sales $470,751 $512,512 $128,058 $144,174 $143,167 $151,455 $566,854 $160,487 $176,373 $173,513 $172,663 $683,036 $742,767 Cost of Product Sold 293, ,680 77,630 89,966 90,167 94, ,996 98, , , , , ,603 % of Rev. 62.4% 60.4% 60.6% 62.4% 63.0% 62.2% 62.1% 61.6% 61.3% 62.0% 61.7% 61.7% 62.0% Gross Profit on Product Sold 174, ,056 50,428 51,896 53,231 56, ,430 61,496 67,799 64,318 65, , ,164 % of Rev. 37.2% 39.2% 39.4% 36.6% 37.1% 37.6% 37.6% 38.3% 38.5% 37.4% 38.2% 38.1% 38.0% S, G & A 124, ,092 30,672 36,581 36,054 37, ,479 39,096 42,219 41,761 40, , ,224 % of Rev. 26.5% 25.4% 24.0% 25.4% 25.2% 24.5% 24.8% 24.4% 23.9% 24.1% 23.5% 24.0% 23.4% Depr. And Amort. 20,936 22,590 5,042 5,319 6,477 3,708 20,546 5,393 5,657 6,434 6,417 23,901 26,333 % of Rev. 4.4% 4.4% 3.9% 3.7% 4.5% 2.4% 3.6% 3.4% 3.2% 3.7% 3.7% 3.5% 3.6% Currency Exchange (gain) (444) 1, (1,075) 866 (505) (1 91 ) (1,150) (651) 0 0 (1,801) - % of Rev. -0.1% 0.2% 0.4% -0.7% 0.6% -0.3% 0.0% -0.7% -0.4% 0.0% 0.0% -0.3% 0.0% Total Operating Expenses 145, ,879 36,237 40,825 43,397 40, ,834 43,339 47,225 48,195 46, , ,557 % of Rev. 30.9% 30.0% 28.3% 28.3% 30.3% 26.7% 28.5% 27.0% 26.8% 27.8% 27.2% 27.3% 26.9% Operating Income 31,459 48,953 14,034 13,383 9,505 16,847 53,867 18,253 21,008 17,709 19,134 76,104 83,607 % of Rev. 6.7% 9.6% 11.0% 9.3% 6.6% 11.1% 9.5% 11.4% 11.9% 10.2% 11.1% 11.2% 11.3% Interest Expense 4,040 5,349 1,171 1, ,160 1,119 1, ,250 3,542 4,750 Pre-Tax Income 27,419 43,604 12,863 12,143 9,505 16,098 50,609 17,134 19,835 17,709 17,884 72,562 78,857 Taxes 8,531 17,753 5,432 5,182 4,182 1,796 16,592 6,635 7,643 6,725 6,796 27,799 29,966 % of Rev. 31.1% 40.7% 42.2% 42.7% 44.0% 11.2% 32.8% 38.7% 38.5% 38.0% 38.0% 38.3% 38.0% Net Income from Cont. Ops. 18,888 25,851 7,724 7,897 5,323 10,269 31,213 10,499 12,192 10,984 11,088 44,763 48,892 % of Rev. 4.0% 5.0% 6.0% 5.5% 3.7% 6.8% 5.5% 6.5% 6.9% 6.3% 6.4% 6.6% 6.6% Net Income from Discont. Ops. 4,351 5, , ,547 3,864 1,514 1,273 (102) 0 2,685 0 Gain on Sale of Disc. Ops. (net) , ,658 0 Net Income $23,239 $31,631 $7,984 $9,484 $5,793 $11,816 $35,077 $12,013 $13,465 $24,540 $11,088 $61,106 48,892 Diluted EPS - Disc. Ops Diluted EPS - Cont. Ops Reported EPS - Diluted $1.89 $2.61 $0.65 $0.77 $0.47 $0.96 $2.85 $0.98 $1.09 $1.97 $0.89 $4.95 $3.90 Shares Out - Diluted 12,321 12,136 12,260 12,317 12,379 12,361 12,289 12,208 12,231 12,482 12,500 12,355 12,550 EBITDA $52,395 $71,543 $19,076 $18,702 $15,982 $20,555 $74,413 $23,646 $26,665 $24,143 $25,550 $100,004 $109,940 EBITDA/Share $4.25 $5.90 $1.56 $1.52 $1.29 $1.66 $6.06 $1.94 $2.18 $1.93 $2.04 $8.09 $8.76 Page5 11/6/03

6 Feltl and Company Rating System: Feltl and Company utilizes a four tier rating system for potential total returns over the next 12 months, and a three tier system for risk assessment. Potential Total Return Assessment Strong Buy: The stock is expected to have total return potential of at least 30%. Catalysts exist to generate higher valuations, and positions should be initiated at current levels. Buy: The stock is expected to have total return potential of at least 15%. Near term catalysts may not exist and the common stock needs further time to develop. Investors requiring time to build positions may consider current levels attractive. Hold: The stock is expected to have total return potential of less than 15%. Fundamental events are not present to make it either a Buy or a Sell. The stock is an acceptable longer-term holding. Sell: Expect a negative total return. Current positions may be used as a source of funds. Related Risk Assessment Speculative: Business and financial risks are significantly greater than the market risk. The company has an inconsistent operating history and the share price may have significant volatility. Aggressive: Business and financial risks are higher than the market risk. The company has a history of revenue growth and/or operating profits. The share price may be more volatile than the general market. Market: Business and financial risks are in line with the general market. Disclosure Statement The information contained in this report is based on sources considered to be reliable, but not guaranteed, to be accurate or complete. Any opinions or estimates expressed herein reflect a judgment made of this date, and are subject to change without notice. This report has been prepared solely for informative purposes and is not a solicitation or an offer to buy or sell any security. The securities described may not be qualified for purchase in all jurisdictions. Because of individual requirements, advice regarding securities mentioned in this report should not be construed as suitable for all accounts. This report does not take into account the investment objectives, financial situation and needs of any particular client of Feltl and Company. Some securities mentioned herein relate to small speculative companies that may not be suitable for some accounts. Feltl and Company suggests that prior to acting on any of the recommendations herein, the recipient should consider whether such a recommendation is appropriate given their investment objectives and current financial circumstances. Past performance does not guarantee future results. Conflicts of Interest Investors should assume that Feltl and Company is seeking or will seek investment banking or other business from the companies in our research universe. From time to time, Feltl and Company, or its officers, directors or agents, or members of their families, may have a position in securities mentioned and may make purchases or sales of the same in the open market or otherwise, and may own options, rights or warrants to purchase the same. Feltl and Company may be a market maker and may act as principal or agent with respect to the sale or purchase of securities mentioned, and may have managed or co-managed a public offering of the securities mentioned within the last three years. Additional information is available upon request. Feltl & Company does make a market in the subject security at the date of publication of this report. As a market maker, Feltl & Co. could act as principal or agent with respect to the purchase or sale of those securities. As of the end of the month preceding the date of publication of this report, Feltl & Co. did not beneficially own 1% or more of any class of common equity securities of the subject company. Feltl & Co. has not been engaged for investment banking services with the subject company during the past twelve months and does not anticipate receiving compensation for such services in the next three months. The analyst or any member of his/her household does not hold a long or short position, options, warrants, rights or futures of this security in their personal account(s). The analyst has not received any compensation for any investment banking business with this company in the past twelve months and does not expect to receive any in the next three months. Page6

7 No director, officer or employee of Feltl & Co. serves as a director, officer or advisory board member to the subject company. Feltl & Co. has not served as a broker, either as agent or principal, buying back stock for the subject company s account as part the company s authorized stock buy-back program in the last twelve months. Feltl & Co. may possibly serve as the company s broker, either as agent or principal, as part of the company s authorized buy-back program in the next three months. There is not any actual material conflict of interest that either the analyst or Feltl and Company is aware of. Feltl and Company provided investment banking services for 3% of the research covered companies over the last twelve months, of which one was rated Buy/Strong Buy and none were rated Hold or Sell. Date Nature of Report Rating Price Target 8/20/03 Coverage Initiated Buy $ /5/2003 Q3 Results Buy $ /20/02 Buy - $65.00 Target 11/6/03 Buy - $75.00 Target Chart: Reuters Ratings Distribution for Feltl & Co. 11/06/03 Hold 40% Sell 0% SB/Buy 60% Page7

8 EQUITY CAPITAL MARKETS DIRECTORY RESEARCH DEPARTMENT Ernest W. Andberg, CFA Dennis E. Nielsen, CFA Richard A. Ryan (612) Joseph P. Sullivan, CFA (612) INSTITUTIONAL SALES: (866) Thomas Pierce Senior Vice President Institutional Sales (612) Mark Hagen (612) Paul M. Manley Ryan Quade (612) TRADING: (866) Jo Pihl Senior Vice President (612) James G. Fredericks Vice President Manager, Equity Trading (612) Joseph G. Fredericks (612) Daniel L. Hennen (612) William W. Koop (612) Deborah L. Zieman Institutional Sales Trading (612) /03/ SOUTH SIXTH STREET SUITE 2600 MINNEAPOLIS, MINNESOTA (612) (866) MEMBER SIPC & NASD