One of the keys to our ability to achieve accelerated  growth lies in providing the infrastructure, from plant  and equipment to controls and technology, needed to  support our corporate plan. With the February move  to our new northern New Jersey distribution center,  we more than doubled our capability with no increase  in operating costs. This new state-of-the-art facility  with its improved traffic flow and handling systems is  enabling us to pick, pack and ship orders with greater  security, speed and efficiency. Implementation of our  enterprise-wide computer system is also virtually  complete; over 95% of our operations, including  our international offices in Bienne which were  relocated and upgraded in 1998, are now running  off the same fully integrated software platform. Our  worldwide supply chain is also making productivity  gains by focusing as a team on improving our gross  margins, product development-to-delivery times,  customer fill rates and worldwide logistics processes.  Manufacturing our new Tommy Hilfiger watches at a key supplier’s fully automated production plant gives us the flexibility to meet the demanding quick-time and low-cost requirements of competing successfully in the fashion segment of the industry.  New warehousing facilities – More than double the size of our previous space, MGI’s new warehouse and distribution center is a secure, state-of-the-art facility  designed for efficient, expeditious order processing. 20 Movado Group, Inc. Improving Our Productivity