governance of our business activities. We also implemented a Code of Business Conduct and Ethics applicable to every director, officer and employee and formalized our existing corporate business practices, including Investor Relations, where Mary Anthes joined us to demonstrate our increased commitment to shareholder communication and corporate citizenship.  Social Responsibility. For many years the Company and its employees, directly and through our brands, have contributed to various not-for-profit organizations with our time and resources, through monetary and product contributions and informational brochures on health and well-being. This year we published our Policy on the Use of Genetically Engineered Ingredients, which explains our goal to detect and avoid the use of these ingredients in our products. All our products are labeled in compliance with the governing regulations of the country of origin and import as well as the United States Department of Agriculture and the Food and Drug Administration health claims and regulations. Looking Ahead. We have implemented a review of our practices and processes to drive profitable growth in all core categories. Margin enhancement has become our new way of life. Key initiatives for cost savings include produc- tion and turnkey operations, transportation and product rationalization. Although our price increase at the beginning of the fiscal year has offset the recent increased costs of commodities, we strive for cost efficiencies with escalating fuel and health care costs, costs associated with Sarbanes-Oxley and regulatory man- dates, and other unknown variables that could impact our business.  In Appreciation. As in the past, we appreciate the support of our varied constituents, who make the success of The Hain Celestial Group possible. My thanks to our 1,500 employees worldwide, our Board of Directors and other advisors, our suppliers and distributors, the investment community, our shareholders and, of course, our consumers—all of whom share our vision of a natural and organic company making products that are healthier and contribute to general well-being. Through our collective efforts at The Hain Celestial Group,  A Healthy Way of Life has, and will continue to have, a positive impact on people while creating value for all our stakeholders. Wishing you a good year and A Healthy Way of Life, Irwin D. Simon Chairman, President and Chief Executive Officer www.hain-celestial.com LETTER TO  SHAREHOLDERS Distribution Channels. We have extended our distribution channels, domestically and internationally, beyond Health Food and Supermarket into Mass, Drug, Convenience, Foodservice, and Club Store. In the Foodservice market, McDonald’s® Corporation has expanded the distribution of its McVeggie Burger®, co-branded with Yves, into selected stores in New York City. SYSCO® Corporation’s MoonRose® brand now includes meat alternatives produced by Yves in its product offerings. Our travel and leisure business has taken flight with JetBlue Airways, which named Terra Blues® its official chip, as well as with Song, Delta Airlines’ low-fare carrier, which enhanced its organic food buy-on-board offerings on all flights with the addition of Earth’s Best Organic Applesauce. Ted, United Airlines’ low-fare carrier, is now featuring Terra Exotic Vegetable Chips® and Garden of Eatin’® Blue Chips tortilla chips. “We strive to provide more than just healthier foods—our goal is to provide A Healthy Way of Life .” Integration . We integrated last year’s acquisitions, which contributed to sales and earnings this year.  Non-Dairy added Imagine Foods’ Rice Dream® and Imagine aseptic shelf-stable soups, which expanded this year into broths and cooking stocks. Walnut Acres Certified Organic brand established the juice category for us and our Mountain Sun® Pure Cranberry juice  outpaced category growth.  Acquisitions. We acquired three businesses this year: Natumi, which increased our production capabilities for Non-Dairy in Europe; Rosetto and Ethnic Gourmet, which broadened the Frozen Food platform for convenience foods; and Jason, which created an entry for us into the fast-growing Personal Care category. Management. Seasoned industry professionals from Grocery and Frozen Food brands, John Carroll and Matt Cooper, joined us, broadening our base of talent in these areas, and we repositioned several managers in areas of strategic focus and growth opportunities for Hain Celestial in the coming years.  New Credit Facility. We renewed our credit facility and increased our borrowing capability, improving the terms and duration of the agree- ment. This agreement supplements our strong balance sheet and provides increased flexibility for future growth and acquisitions.  Corporate Governance . Our reputational capital, an intangible asset, is as valuable to us as our tangible assets, and we implemented several changes to our corporate governance this year. We are pleased to have added four new individuals to our Board of Directors— Barry J. Alperin and Lewis D. Schiliro, as well as Mitchell A. Ring and D. Edward I. Smyth, as representatives of H.J. Heinz Company—all of whom bring diverse backgrounds and valuable contributions to our Company. Through the Audit, Compensation, and Nominating and Governance Committees, the Board of Directors is intimately involved with the  3