2004 was a good year for the company. We posted significant gains in revenues and earnings  while strengthening our financial position and continuing to build on our brand leadership.  Independent marketing research shows that our Chuck E. Cheese character is more popular  among kids ages 6 to 8 than Mickey Mouse$^{®}$, Barbie$^{®}$, Barney$^{®}$, Spiderman$^{®}$ and scores of  other characters. Chuck E.’s popularity is also apparent among moms and dads, who brought  their children to our restaurants in record numbers in 2004. Their more than 75 million guest  visits built momentum that helped to make comparable store sales positive and played well  into our long-term strategies for continued growth and increased shareholder value. Increased Sales, Improved Performance. Things Continue to Look Up for CEC Entertainment. For the year ended January 2, 2005, revenues increased 11.2 percent to $728.1 million from  $654.6 million in 2003. Net income improved to $82.5 million from $67.4 million in the  previous year, an increase of 22.5 percent. Diluted earnings per share were $2.15, a  30-percent increase versus 2003. When adjusted to exclude the estimated benefit of a 53rd  week in fiscal year 2004 and a $4.25 million legal charge in 2003, earnings per share  increased 18 percent compared with the prior year. Comparable store sales grew 2.0 percent  in 2004 versus 2003. This is a particularly noteworthy improvement that we attribute both to  the vitality of our Chuck E. Cheese’s$^{®}$ concept and our ongoing program to update and evolve  our restaurant-entertainment centers. During 2004, we also opened 29 new restaurants and  acquired 3 restaurants from franchisees, growing our concept by about 8 percent, and bringing  the total of company-owned Chuck E. Cheese’s restaurants across the nation to 449.  C E C A/R 04 Page 1 TO O U R S H A R E H O L D E R S :