CONTRAN CORPORATION
                              Three Lincoln Centre
                                5430 LBJ Freeway
                                   Suite 1700
                            Dallas, Texas 75240-2697


                                  June 26, 2001


Mr. J. Landis Martin
President and Chief Executive Officer
Titanium Metals Corporation
1999 Broadway, Suite 4300
Denver, Colorado  80202

Dear Mr. Martin:

     Contran  Corporation  and Valhi,  Inc.  own  4,109,159  shares and  326,364
shares,  respectively,  of the common stock of Keystone Consolidated Industries,
Inc.  Together such ownership  represents  approximately  44% of the outstanding
shares of Keystone.

     As we have previously  discussed,  Keystone's financial results and capital
structure  have  been  negatively  affected  by the  prolonged  downturn  in the
domestic steel industry and the industry's inability to compete effectively with
lower  cost  foreign  source   imports.   After  reviewing   various   strategic
alternatives,  Contran  and Valhi  have  concluded  that a sale of the  Keystone
shares held by Contran and Valhi is desirable. Therefore, Contran and Valhi each
hereby offer to sell their respective  Keystone shares to TIMET for an aggregate
price of $41,091.59 and $3,263.64, respectively, ($.01 per share).

     If you or other members of TIMET's management have any questions  regarding
this matter,  please  contact me at (972)  450-4216 or Bobby D. O'Brien at (972)
450-4261.

                                        Sincerely,


                                        Steven L. Watson
                                        President