VISION TO OUR SHAREHOLDERS David R. Lumley Chief Executive O ffi cer and President –  Global Batteries and Personal Care and Home and Garden Be  GLYPH<T_h> e Leader in Retailer Metrics with Superior Value Consumer Products for Everyday Use Create an Additional $1 Billion of Enterprise Value in  GLYPH<T_h> ree Years  GLYPH<T_h> rough a Combination  of EBITDA Growth and Debt Reduction GOAL With a pivotal and successful  fi  scal 2010 behind us and an outlook for even better performance  in  fi  scal 2011, Spectrum Brands Holdings is moving into a promising new era, building a strong  foundation for continuing growth and greater value creation. My message is one of confi dence and opti- mism about the future of Spectrum Brands  Holdings. Since becoming your new Chief  Executive Officer in April 2010, we have worked  diligently to develop a focused and realistic  vision and plan to build a stronger Spectrum  Brands. Our leadership team is tested and  brings the deep experience required to steer  our Company’s expansion. Spectrum Brands completed a solid fi scal  2010, delivering net sales growth of 3.4  percent from continuing operations and a 10.5  percent increase in adjusted EBITDA, while  ending the year with a strong liquidity position.  We saw signifi cant market share gains in key  product categories, and all segments reported  increased adjusted EBITDA. Spectrum Brands  is now a $3.1 billion, global consumer  products company with a broad offering of  widely trusted, extendable and like brands for  like retailers that provide quality, performance  and value to consumers worldwide. We enjoy  a true global footprint with a solid presence on  six continents in more than 120 countries. We enter fi scal 2011 with momentum and an  unwavering focus on our strategic, operational  and fi nancial goals, and with compelling oppor- tunities for market share and EBITDA growth.  We have the capacity to generate strong and  continuous free cash fl ow built upon a diversified  revenue stream, attractive margins, and the  top one, two or three global market position  with powerful and enduring brand names in  categories with limited signifi cant competitors. A clear roadmap and multi-year strategy guide  our efforts to drive additional shareholder value  creation. Our vision is straightforward:  To be  the leader in retailer metrics with superior value  consumer products for everyday use.  We are on  track or ahead of schedule to meet the fi nancial  objectives we have developed, most importantly  to create an additional $1 billion of enterprise value by the end of fi scal 2013 through  a combination of adjusted EBITDA growth and  aggressive debt reduction, which is already in  motion. As a start, two voluntary prepayments of  $50 million and $20 million in recent months have  reduced our $750 million senior secured Term  Loan to $680 million. We believe fi scal 2011 should be another year of  growth and progress. We expect net sales from  continuing operations to increase 3 to 4 percent,  adjusted EBITDA to grow to $455-$465 million,  and free cash fl ow to reach $155-$165 million.  Importantly, we anticipate cumulative debt  reduction on our senior secured Term Loan in  fi scal 2011 of at least $200 million.  A signifi cant fi scal 2010 achievement was our  acquisition of the Russell Hobbs small appliances  business, with its widely respected brands and  leading market positions. Upon completion of  this acquisition, our Company became  Spectrum Brands Holdings from Spectrum  Brands, Inc. As part of the Russell Hobbs merger,  we completed a major debt refi nancing. This  signifi cantly improved our Company’s fi nancial  profi le by strengthening our capital structure,  reducing fi nancial risk, improving our leverage 