With a clearly defined business strategy – “A family of local restaurants focused on delighting every guest with a genuine Italian dining experience” – Olive Garden had a highly successful fiscal 2002. Based on our own guest surveys, guest satisfaction levels across the board – ranging from food taste to server attentiveness – reached highest-ever levels and helped produce record financial and operating results. Total sales reached a record $1.86 billion, an increase of 9.5% over fiscal 2001. Same-restaurant sales growth reached 31 consecutive quarters – with a 6.3% increase for the year, driven by same-restaurant guest count growth of 3.2%. Operating profit, operating profit return-on-sales and return-on-capital also reached record levels. New restaurant growth accelerated, with the opening of 20 new restaurants featuring the exciting Tuscan Farmhouse design. Olive Garden completed the RevItalia program to renovate existing restaurants, which – together with the introduction of the Tuscan Farmhouse design for new restaurants – is a significant platform for the continued repositioning of the restaurants, making them even more attractive to the ever-changing and demanding casual dining consumer. Olive Garden’s culinary strategy to expand our already dominant market leadership in the Italian casual dining segment is to provide guests with a broad range of fresh, simple and delicious Italian food at a great value. At the core of this menu are traditional favorites such as Lasagna, Fettuccini Alfredo and Chicken Parmigiana. Olive Garden is focused on continually improving these items and pairing them with great wines that complement their familiar, comfortable flavors. These classic recipes are balanced with a variety of approachably authentic entrées that are expanding the already popular appeal of the menu. These dishes include Pork Filettino, Lobster Spaghetti, Chicken Marsala and others, and often originate in our Tuscany-based Culinary Institute, where many Olive Garden chefs and culinary managers train each year and are immersed in the culinary and cultural passion of Italy. Olive Garden’s continued emphasis on wine as an integral part of the genuine Italian dining experience is also helping drive guest satisfaction and sales growth. Our beverage strategy mirrors our approach to the food section of the menu. There is a mix of popular, widely recognizable offerings and attractive varietals. In addition to appealing choices, a key to the success of the wine program is great service. New service features that are helping guests feel more comfortable with wine include the “wine conversation,” which includes wine sampling on Friday and Saturday nights. As we mark our 20th year, we will maintain our focus on helping more guests enjoy wine as part of a genuine Italian dining experience, as well as implement ever-higher service standards. These priorities, combined with a relentless commitment to freshness and quality ingredients, will help ensure that guests not only have a delightful Olive Garden experience, but also keep coming back for more. continued>