for that operation as part of a broader health services company. This divestiture has enabled us to increase our focus on our leading core franchises and on targeted growth investments, and was a critical step toward completing the first phase of Edwards’ transformation. As further evidence of our commitment to provide innovative solutions for people fighting cardiovascular disease, in  2001 we increased our research and development (R & D) spending by  16 percent over the prior year, excluding divested operations, which exceeded our stated goal of at least  10 percent annual growth. The majority of our R & D investment is directed toward extending and defending our core franchises, while a significant portion is devoted to our pursuit of promising new opportunities that address unmet clinical needs. Consistent with these efforts, in  2001 we launched our enhanced Lifepath AAA Endovascular Graft System, an innovative, less-invasive treatment for patients with potentially life-threatening abdominal aortic aneurysms. We also introduced in the United States our Edwards Prima Plus stentless tissue heart valve, which comple- ments our market-leading tissue valve and repair franchise. Additionally, we launched an initiative to develop promising new therapies for treating peripheral vascular disease using innovative stent technologies, as well as initiatives for treating severe angina and cardiac arrhythmia. All of these efforts support the current phase of our transformation, focused squarely on growth. As we continue our transformation, we remain committed to delivering above- average bottom-line growth. Further, we plan to sustain our bottom-line growth by achieving our long-term aspiration of double-digit sales growth. Throughout our trans- formation, we remain dedicated to delivering on our commitments to shareholders. Our confidence for the future rests on several key strengths. First, we have a strong portfolio of outstanding products and leading brands, a powerful global presence with sales in more than  80 countries and a firm commitment to maximize the strength of our core franchises. Second, we have structured our organization to grow and thrive. Our company culture encourages engagement and innovation, and we have built in the flexibility to evaluate and pursue new strategic opportunities as they are brought forth by our employees, partners and clinicians. 6 Edwards Lifesciences Corporation Building for the Future Michael A. Mussallem Chairman  & Chief Executive Officer 7 Edwards Lifesciences Corporation Sincerely, I am proud to be part of Edwards Lifesciences and to speak on behalf of its Board of Directors, employees and trusted partners in the cardiovascular community. The work we do is heartfelt, and it is making a positive difference in the lives of cardiovascular disease patients and the clinicians who treat them. Yet, for all of  our strengths and accomplishments, we remain keenly aware that we have a lot of  work ahead of us. Through it all, we will remain focused on the needs of patients, because, as our Credo states, “Helping Patients is Our Life’s Work, and Life is Now.” We thank you, our shareholders, for your support. For  2002 , we have ambitious financial goals, including even stronger top-line growth – in the  6  to 9 percent range – and net income growth of at least  25 percent. Given our successful track record and the thoughtful, strategic planning on which our aspirations are founded, our commitment to realizing our potential is clearly evident. As we go forward, we will be both highly disciplined and willing to try new things. Trust us to remain focused on growth. Finally, as a reflection of Edwards’ pioneering spirit, we continue to look to the future of advanced cardiovascular disease treatment. We are partnering with the cardiovascular community to focus on unmet clinical needs and the breakthrough ideas that will address them, with the goal of continuing to deliver innovative, differentiated cardiovascular products and technologies. Third, we believe Edwards is sitting in the “sweet spot” in terms of its size and position. We are large enough to fund the pursuit of many growth initiatives and introduce new products on a global basis. Yet, we are focused and sufficiently agile to capitalize on niche opportunities.