X0202 4 2006-09-24 0 0000276889 QUANEX CORP nx 0001205035 DAVIS SUSAN F 1 0 0 0 Phantom Stock Units 0 2006-09-24 4 A 0 41.528 30.1 A Common Stock 41.528 17159.694 D Phantom Stock Units 0 2006-09-24 4 A 0 8.306 30.1 A Common Stock 8.306 17168 D Units that are credited to the participant's account under the Quanex Corporation Deferred Compensation Plan as a result of the participant's deferral of income or fees, as the case may be. Conversion price is 1 for 1. All units credited under the deferred Compensation Plan are 100% vested at all times;provided, however, that if a partcipant received a benefit from the Deferred Compensation Plan for any reason other than death, disability or retirement within three years after a deferral is credited to a participant's account, any matching awards made by the company with respect to such deferral will be forfeited. Disbributions under the Deferred Compensation Plan are made beginning on a specific date selected by the participant or upon a participant's death, disabilty or termination of employment. Represents units credited to a partcipant's account under the Deferred Compensation Plan as a result of the company's 20% matching award of the participant's deferral of income or fees, as the case may be. Susan F. Davis by John J. Mannion, POA 2006-09-26