Financial Review 2004 Fi ve-Year  Financial Summary $^{(1)}$ Fiscal year 2004 consisted of 53 weeks while all other fiscal years consisted of 52 weeks. $^{(2)}$ Total cost of sales, excluding restaurant depreciation and amortization of $195,486, $177,127, $155,837, $138,229, and $123,477, respectively. Darden Restaurants  55 May 30,  May 25,  May 26,  May 27,  May 28,  (In thousands, except per share data)  2004  (1) 2003  2002  2001  2000 Operating Results Sales  $ 5,003,355  $ 4,654,971  $ 4,366,911  $ 3,992,419  $ 3,675,461 Costs and expenses: Cost of sales: Food and beverage  1,526,875  1,449,162  1,384,481  1,302,926  1,199,709 Restaurant labor  1,601,258  1,485,046  1,373,416  1,261,837  1,181,156 Restaurant expenses  767,584  703,554  628,701  559,670  510,727 Total cost of sales, excluding restaurant depreciation and amortization (2)  $ 3,895,717  $ 3,637,762  $ 3,386,598  $ 3,124,433  $ 2,891,592 Selling, general, and administrative  472,109  431,722  417,158  389,240  363,041 Depreciation and amortization  210,004  191,218  165,829  146,864  130,464 Interest, net  43,659   42,597  36,585  30,664  22,388 Asset impairment and restructuring charges (credits), net  41,868  3,924  (2,568)   –   (5,931) Total costs and expenses  $ 4,663,357  $ 4,307,223  $ 4,003,602  $ 3,691,201  $ 3,401,554 Earnings before income taxes  339,998  347,748  363,309  301,218  273,907 Income taxes  108,536  115,488  125,521  104,218  97,202 Net earnings $  231,462  $  232,260  $  237,788  $  197,000  $  176,705 Net earnings per share:  Basic  $  1.42  $  1.36  $  1.36  $  1.10  $  0.92 Diluted  $  1.36  $  1.31  $  1.30  $  1.06  $  0.89 Average number of common shares outstanding, net of shares held inTreasury: Basic  163,500  170,300  174,700  179,600  192,800 Diluted  169,700  177,400  183,500  185,600  197,800 Financial Position Total assets  $ 2,780,348  $ 2,664,633  $ 2,529,736  $ 2,216,534  $ 1,969,555 Land, buildings, and equipment  2,250,616  2,157,132  1,926,947  1,779,515  1,578,541 Working capital (deficit)  (337,174)  (314,280)   (157,662)   (226,116)  (316,427) Long-term debt  653,349  658,086  662,506  520,574  306,586 Stockholders’ equity  1,245,770  1,196,191  1,128,877  1,033,318  958,602 Stockholders’ equity per outstanding share  7.86  7.25  6.56  5.87  5.23 Other Statistics Cash flow from operations  $  525,411  $  508,635  $  508,101  $  420,570  $  342,626 Capital expenditures  354,326  423,273  318,392  355,139  268,946 Dividends paid  12,984  13,501  9,225  9,458  10,134 Dividends paid per share  0.080  0.080  0.053  0.053  0.053 Advertising expense  210,989  200,020  184,163  177,998  165,590 Stock price: High  25.60  27.83  29.767  19.660  15.375 Low  17.80  16.46  15.400  10.292   8.292 Close  $  22.50  $  18.35  $  25.030  $  19.267  $   12.583 Number of employees  141,300  140,700  133,200  128,900  122,300 Number of restaurants  1,325  1,271  1,211  1,168  1,139