and will enable us to significantly enhance our distribution procedures, product handling and overall security while enhancing customer service and providing room for significant business growth. Another productivity improvement recently implemented is our enterprise-wide computer system. We now have over 95% of our operations running off the same fully integrated software platform which will allow us to further improve and accelerate operating efficiencies.  Our worldwide supply chain team is also a major  contributor to productivity improvement, as it continues  to focus on further improving gross margins, shortening  our product production-to-delivery time cycle, improving  our customer fill rates and strengthening our worldwide  logistics processes. We have also entered into an agreement that will allow us to relocate our corporate headquarters to Paramus,  New Jersey. This newly leased office facility will enable the Company to consolidate its management and administrative employees into one location, providing a more efficient  business environment. Combined, these initiatives will serve to generate  productivity improvements and allow us to better  leverage the strong operating infrastructure that exists  at Movado Group. We are extremely pleased with our financial results for the year and with the great strides we have made to ensure that our Company is in an excellent position for future  profitable growth. We are confident that our Company is financially sound, and that we have appropriate business  controls firmly in place to support our ability to continue  to profitably grow our business. This past year has represented a period of unprecedented hard work by all our employees worldwide as they have:  implemented an enhanced internal control environment; improved business processes to generate increased levels  of productivity; integrated worldwide computer systems;  created a new and greatly enhanced distribution center; developed, designed, produced and shipped over 200 new Tommy Hilfiger watch models, to name but a few of their accomplishments. All of this was accomplished while  simultaneously delivering record sales, record gross margins and record EPS. Our people are our greatest assets and we are proud  to acknowledge and thank the more than 800 hard- working Movado Group employees around the world.  We are also very appreciative of the people who support  our global efforts: our consumers, our customers, our  suppliers and our shareholders, all of whom have  contributed to our success. We are confident in our ability to drive the Movado Group to new heights, during fiscal 2002 and beyond,  as we continue to profitably grow our business. Follow  our success and “Watch Us Grow”. Looking Ahead… 28 Movado Group, Inc. Gedalio Grinberg Chairman and  Chief Executive Officer Efraim Grinberg President 