our businesses should allow us to pay down  debt by at least $200 million and grow adjusted  EBITDA to $455-$465 million in fi scal 2011.  This should allow us to reduce our leverage to  3 times or less by the end of fi scal 2012. A key priority of your Board of Directors and  senior management team is to ensure a high  level of accountability to our shareholders.  This is accomplished through management  incentive compensation programs based on  performance and aligned with investors’  priorities. A balance of long-term and short- term compensation programs for our top  leadership team provides appropriate rewards  for performance against specifi c metrics,  predominantly adjusted EBITDA and free cash  fl ow targets. Our  major priority is  aggressive, continu- ing debt reduction to  materially strengthen  our balance sheet. Macroeconomic trends most likely  will remain challeng- ing worldwide. We  are not depending  on any meaningful  economic recovery  or improvement in  consumer spending  in our outlook  for higher sales and  cash fl ow in fi scal 2011.  One of our hallmark strengths, however, is  that many Spectrum Brands products are  non-discretionary, replacement products  needed by consumers in their everyday lives.  Given this, we believe by providing superior  margins to our customers and offering  consumers the same performance at a better  price or better performance at the same price  is the winning strategy. As the global value  proposition leader in our space, we will  continue to move forward to invest in our  business, reduce our cost structure, launch  new products, grow EBITDA and provide  strong free cash fl ow generation. We believe  Sincerely, needed to drive a  prosperous and rewarding future and even  greater value for our stakeholder family.  Thank you for your continued support. Our Company’s  exciting and promising  journey carries on.  We will stay the course,  always looking to  accelerate the pace  when and where we  can. Spectrum Brands  has the vision, the  mission, the strategy,  the fi nancial and  human resources,  the business models,  and the market and  product opportunities  In closing, I want to thank our Board of Directors  for their guidance, commitment and energy in  building a prosperous Spectrum Brands. We also  are grateful to our more than 6,000 talented and  dedicated employees around the world for their  productivity and zeal. “ . . . our businesses should  allow us to pay down debt  by at least $200 million and  grow adjusted EBITDA to $455-$465 million  in  fi  scal 2011.” David R. Lumley Chief Executive Offi cer and President –  Global Batteries and Personal Care  and Home and Garden January 25, 2011