FINANCIAL HIGHLIGHTS is an international manufacturer and marketer of identification solutions and specialty materials that help customers increase safety, security, productivity and performance. Its products include high-performance labels and signs, printing systems and software, label- application and data-collection systems, safety devices and precision die-cut materials. Founded in 1914, the company is the provider of choice to more than 300,000 customers in electronics, telecommunications, manufacturing, electrical, construction, education and a variety of other industries. Brady's reputation for innovation, commitment to quality and service, and dedicated employees have made it a world leader in its markets.  Brady Corporation [$_{Dollars in thousands except per share amounts}$] %  Years Ended July 31 2003  2002  Change Results of Operations Net sales $554,866 $516,962  7.3 Earnings before income taxes $32,455 $43,135 -24.8 Net income $21,420 $28,253 -24.2 Return on invested capital 9.6% 13.2% Net income per diluted Common Share Class A Nonvoting $0.91 $1.20 -24.2 Class B Voting $0.88 $1.17 -24.8 Pre-tax profit margin 5.9% 8.3% After-tax profit margin 3.9% 5.5% Restructuring charge After tax $6,329 $1,782 Per Diluted Share $0.27 $0.07 Other Information Working capital $123,878 $135,764 -8.8 Stockholders’ investment $338,961 $324,242 4.5 Research and development $18,873 $17,271 9.3 Capital expenditures $14,438 $13,095 10.3 Depreciation and amortization $17,771 $16,630 6.9 Dividend yield 2.3% 2.8% -17.9 Trailing 12 months P/E ratio 37.8 22.9 65.1 Current ratio 2.4 2.8 -14.3 Weighted average shares outstanding (diluted) 23,376,928 23,339,708 .2 NET S ALES n $ millions 99 00 01 02 03 546 551 479 555 517 NET INCOME n $ millions 99 00 01 02 03 28 47 40 2 1 28 DIVIDEND HIST ORY annually per share .7 2 .68 .64 .80 .7 6 Effective October 10, 2003, Br ad y in cr eased its ann u a divi d e n d to $0.84/shar e . 99 00 01 02 03