A M P H E N O L C O R P O R A T I O N 2 0 0 4 A N N U A L R E P O R T With respect to the major markets we serve with interconnect and cable products and assemblies, we  made signi fi  cant progress in 2004 in strengthening our relationship with the leading manufacturers in each  of our markets as well as broadening our geographical presence and product portfolio. The following is  an overview of last year's activity: z The military/aerospace market comprised 24% of  sales in 2004 and was up 21% over year 2003 levels.  The Company is the acknowledged leader in high  performance interconnect components for aerospace/harsh  environment applications. The U.S. and certain other  countries are continuing in a long term trend to upgrade military  defense systems and increase homeland security programs. Several prominent military/aerospace programs in which the  Company has signi fi  cant participation are in the early phases  z Sales to the wireless, telecom and data communications markets, which comprised 37% of sales  in 2004, were up 26% from year 2003 levels. We have an excellent portfolio of interconnect  products and integrated solutions for the mobile handset market, mobile network infrastructure  market and the Internet equipment market. In the mobile handset market, we had components  in more than half of the worldwide production of mobile phones last year, and we continue  to strengthen our relationships with the leading mobile phone manufacturers worldwide. As mobile handsets increase in complexity and functionality, the outlook for growth in this  market is excellent. Increased demand for greater mobile communication and data services in  5 developed countries and the continuing demand for communication  services in developing countries is driving mobile network  upgrades and expansion. In addition, deployment of 3G  networks has begun and will continue to drive future demand.  We continue to gain position with the leading infrastructure  equipment manufacturers and increasingly are developing  relationships with network system operators with a broad portfolio  of value added interconnect solutions. With respect to the Internet  equipment market, we have excellent penetration in the areas of  servers, storage systems and datacom equipment. Our value added interconnect products and  systems serve an important role in the continuing demand for increased bandwidth, speed and  miniaturization in this market. Our product offering to the communications markets is broad  and deep, and our global resources have further strengthened our excellent relations with the  major customers. of production, and other major programs in which we have achieved design wins are still in  the prototype stage. Such programs should provide very signi fi  cant future long-term revenues. The commercial aerospace market has gone through dif fi  cult times in the past few years but  there are indications of an improving trend and the long-term future of commercial aviation  transportation is good. We are excited about our participation in the development of new  aircraft models in Europe and North America. We are proud of the outstanding engineering  capabilities represented by our leadership position in the military/aerospace market.  nf»