That strategic framework is well understood throughout the Company and it’s the reason for the strong progression of performance improvement we’ve had to this point. Three strategic imperatives – leadership development, culinary and beverage excellence, and service and hospitality excellence – are at the core of our framework. In addition, diversity and technology literacy are the key enablers of our strategic success, reflecting our ongoing belief that a well-developed organization-wide commitment to these areas will facilitate meaningful advancements in each area of strategic importance. Leadership development is the lynchpin of our strategic efforts, and we’ve made tremendous progress in this area. Much of what’s been done recently involves expanding upon and enhancing initiatives started in prior years, like our enterprise-wide talent assessment and development and succession planning process. We also continue to develop new initiatives each year, and a great example is the diversity learning experience provided to nearly all director-level leaders in fiscal 2002. This program was modeled on the intensive diversity learning experience completed by each officer during the prior two years to nurture the development of diversity literacy. And it reinforces the officers’ experience, since each plays an important role in the learning experiences of our directors. FINANCIAL STRENGTH AND STABILITY We continue our journey to be the best with one very powerful asset – we have the financial resources to fund our growth strategy, in good times and bad. Our excellent cash flows and solid balance sheet are reflected in the Company’s investment-grade credit ratings. These provide us with flexible access to capital at a relatively attractive cost. We intend to preserve this financial strength by maintaining a balanced capital structure that has a prudent mix of debt and equity, and by paying close attention to other key credit ratios. ENDURING VALUES While we benefit from competing in an industry that has strong long-term prospects and we have a terrific group of restaurant companies, a great strategy and excellent financial strength, we know we cannot be successful without a clear sense of who we are. We understand and appreciate Darden’s core values, values that have been forged over the 64-year heritage started by our founder, Bill Darden. As we continue the journey toward becoming the best casual dining company, we will look to these values for guidance and know they will be especially critical when we’re faced with unexpected opportunities or challenges. As an organization, we value: Integrity and fairness. It all starts with integrity. We trust in the integrity and fairness of each other to always do the right thing, to be open, honest and forthright with ourselves and others, to demonstrate courage, to solve without blame and to follow through on all our commitments. Respect and caring. We reach out with respect and caring. We have a genuine interest in the well being of others. We know the importance of listening, the power of understanding and the immeasurable value of support. Diversity. Even though we have a common vision, we embrace and celebrate our individual differences. We are strengthened by a diversity of cultures, perspectives, attitudes and ideas. We honor each other’s heritage and uniqueness. Our power of diversity makes a world of difference. Always learning – always teaching. We learn from others as they learn from us. We learn. We teach. We grow. Being “of service.” Being of service is our pleasure. We treat people as special and appreciated by giving of ourselves, doing more than expected, anticipating needs and making a difference. Teamwork. Teamwork works. By trusting one another, we bring together the best in all of us and go beyond the boundaries of ordinary success. Excellence. We have a passion to set and pursue, with innovation, courage and humility, ever-higher standards. These values communicate the behaviors and attitudes we cherish as we strive to deliver on Darden’s Core Purpose, which is: “To nourish and delight everyone we serve.” That is what motivates us to be the best. TERRIFIC PEOPLE “The greatest competitive edge our company has is the quality of our employees, evidenced by the excellent job they do every day.” Bill Darden, the founder of Darden Restaurants, recognized that decades ago and it remains just as true today. I want to thank our more than 133,000 employees for accepting the challenges we’ve put before them. Everyone is fully committed to becoming the best casual dining company now and for generations, and we intend to get there by living our values each and every day and nourishing and delighting everyone we serve. Joe R. Lee Chairman and Chief Executive Officer