centers made possible dramatic reductions in the  average distance our trucks travel from distribution center (DC) to store, helping to partially mitigate  the increase in fuel prices. In 2004, we again set record highs for sales and earnings, even though the headwinds from higher  energy prices and other factors kept the percentage increases in sales and earnings lower than we have become accustomed to. What’s encouraging, though, is what we have in the works, to drive stronger sales  and earnings performances in the years ahead. Here’s  a short list: DOLLAR TREE STORES, INC. • 2004 ANNUAL REPORT 3 Earnings Per Share • Becoming the first truly national dollar-store  operator in the United States when we opened  our first store in North Dakota. We have the infra- structure and management oversight in place such that we can open new stores anywhere in the  continental United States. • Achieving record retention of store managers. We’ve found there’s a direct link between manager tenure and store performance. So the better the job we do attracting, developing, and retaining qualified  managers, the better our stores perform. • Completing our point-of-sale (POS) rollout to  virtually the entire chain. POS technology is now  in place in nearly 2,600 of our stores, providing us  the visibility we need to run the business more effi- ciently. To put it in perspective, this technology was not in our stores four years ago. As we know in retail, all items do not sell similarly in each store. Today, we are able to see exactly what’s selling at each store, which makes planning, allocation, and replenishment much more precise. More than ever before, we can provide a better Thrill of the Hunt to our customers, because we know what they’re looking for. • Automated store replenishment of additional key  categories and items to additional stores will  help raise in-stock levels, yet keep backrooms free  of excessive inventory. • New route-optimization software that minimizes  the number of trucks and trips we need to make to deliver merchandise to our stores. • A more-extensive marketing campaign that includes broadcast advertising via electronic media, such as radio and television, as well as public relations to tout new-store openings. It’s all about driving awareness of Dollar Tree and our product, which should increase foot traffic through our stores. Bob Sasser President and  Chief Executive Officer $1.58 $1.54 $1.09 $1.08 $1.35 '00 '01 '02 '03 '04