Joe R. Lee Chairman and Chief Executive Officer FISCAL 2002 WAS AN EXTRAORDINARY YEAR. WHILE WE AND OTHERS ANTICIPATED SEVERAL OF THE YEAR’S IMPORTANT DEVELOPMENTS, INCLUDING THE ECONOMIC SOFTNESS THAT EXISTED FOR MOST OF THE YEAR, MUCH OF WHAT TOOK PLACE WAS TRULY UNIMAGINABLE. CERTAINLY, THE SEPTEMBER 11 TERRORIST ATTACKS AND ALL THAT THEY TRIGGERED FALL INTO THAT CATEGORY. AND, GIVEN THEIR SCALE AND SCOPE, SO DO THE CORPORATE GOVERNANCE AND FINANCIAL REPORTING LAPSES THAT HAVE OCCURRED AT OTHER COMPANIES. Through it all, Darden performed exceptionally well. We were fully prepared for the economic slowdown, successfully navigating through it with even greater focus on operating excellence in our restaurants and on developing and delivering very effective marketing programs. We also responded quickly and appropriately to the unanticipated. In the aftermath of September 11, our people were great sources of support to our guests, to our communities and to each other, helping the nation heal during a period of incredible uncertainty. And we took the questioning of corporate practices as an opportunity to thoroughly review our governance framework and financial reporting policies, which reaffirmed our confidence that Darden’s business is managed responsibly, with the highest ethical standards. While responding to both expected and unexpected developments, Darden was able to produce another year of record financial results, fueled by strong performance at each of our operating companies. Revenues increased 9% to $4.37 billion because of continued same-restaurant sales growth at Red Lobster and Olive Garden and accelerated new restaurant growth on a total Company basis. Excluding unusual non-operating gains, fiscal 2002 earnings after tax increased 20% to $236.2 million, our highest level ever. Earnings per share on a diluted basis rose 22% to $1.29, excluding unusual non-operating gains. This compares to 16% compound annual growth in diluted EPS since we became a public company at the end of fiscal 1995 and meets our targeted annual long-term EPS growth range of 15% to 20%. Red Lobster’s total sales were a record $2.34 billion, a 7.1% increase from the prior year, and average sales per restaurant reached a record $3.5 million. Red Lobster’s same-restaurant sales growth for the year was 6.2%, with over half of it coming from guest count increases. Red Lobster ended the year with 18 consecutive quarters of comparable restaurant sales growth. Olive Garden grew even faster and achieved new sales records, with total sales increasing 9.5% to $1.86 billion and average sales per restaurant climbing to $3.9 million. Olive Garden’s same-restaurant sales grew 6.3% and over half of the gain was the result of guest count growth. Olive Garden ended the year with 31 consecutive quarters of same-restaurant sales growth. Bahama Breeze’s award-winning culinary and beverage offerings and outstanding service continued to provide a solid platform for expansion. Bahama Breeze opened eight new restaurants, ending the year with 29 restaurants operating in 20 different markets. While we experienced softened sales in some markets, which we attribute to reduced air travel from the combined effects of the recession and terrorism-related safety concerns, Bahama Breeze continued to generate annualized sales per restaurant in excess of $5 million – among the highest in casual dining. continued>