TO OUR STOCKHOLDERS, CUSTOMERS, AND EMPLOYEES Mueller's business during the first quarter of 2002 showed clear signs of rebounding from the economic slowdown which affected the year 2001. Net earnings rose 16 percent to $17.9 million, or 48 cents per diluted share, compared with 42 cents per diluted share for the same quarter last year. More significantly, earnings rose 53 percent over the preceding quarter (the fourth quarter of 2001). Net sales for the first quarter of 2002 were $268.0 million or 3 percent less than the same quarter of 2001, due primarily to a 12 percent decrease in the price of copper. However, the volume of product sold rose to 195 million pounds from 176 million pounds in the same quarter last year. We believe that during the first quarter of 2002, our customers began restocking their inventories, which had declined substantially during 2001. This restocking process should provide Mueller with an added increment of business as the year progresses. We are gratified to report that Mueller's European copper tube operations turned profitable in the first quarter. Although the profit was modest, it convincingly demonstrated that the modernization of our Bilston copper tube mill was successful. As production refinements are implemented, our European operations will be well-positioned to make a growing contribution to Mueller's bottom line. Our Company's business outlook has improved over the past 60 to 90 days. The national economy is strengthening, and the housing and construction industry continues to benefit from low mortgage rates. The result is a high level of new building permits, and that is a good indicator of future business. Significantly, even though many financial assets have declined in value over the past several years, home prices continue to surge, rising 6.9 percent in 2001 and 9.2 percent in 2000. This supports our belief that an investment in a home is both financially wise and personally desirable. Our Annual Stockholders' Meeting will be held at Mueller's headquarters in Memphis, Tennessee on May 9, 2002. You should have already received the notice of meeting, as well as proxy material and the 2001 Annual Report. We hope you can attend, but if you cannot, we urge you to sign and return your proxy card. You may also vote via the internet by following the instructions contained on the proxy card. Sincerely, /S/HARVEY L. KARP /S/WILLIAM D. O'HAGAN Harvey L. Karp William D. O'Hagan Chairman of the Board President and Chief Executive Officer April 16, 2002 -1-