SHAREHOLD ERS To Our On paper, “The Art of the Possible” appears to be five ordinary words. But here at Dollar Tree, they take on a life of their own. To us, it’s all about taking the impossible and making it possible. It’s taking an idea and watching  it grow from a concept, to a sketch on paper, to a piece of art in the form of merchandise. The Art of the Possible is retaining the same $1 retail price we’ve charged since the company opened for business in 1986. The Art of the Possible is a living art, one that’s taking place in more than 2,700 Dollar Tree stores, all across the United States. Of course, it’s our associates that really bring  The Art of the Possible to life. More than 35,000 dedicated field associates bring passion to their jobs, ensuring stores are neatly organized, shelves are stocked with the right items, and customer purchases are rung efficiently. The infectious, can-do spirit of these associates imparts such a positive impression  of Dollar Tree that our customers find themselves enthusiastic about coming back — again and again and again. Delivering variety, value, and convenience with merchandise that consumers want and need — that’s our whole purpose for being. And let’s not forget: Everything’s $1, in every aisle, every day, all year long. And to our customers, that’s what sets us apart. With a “$1 only” pricepoint, and a nationwide presence, we’re unique. Dollar Tree brings new meaning to everyday low price. Even in a tough year, when gasoline prices  soared to record highs, Dollar Tree’s operating margin remained the envy of other retailers. So not only are we able to create merchandise that delivers tremen- dous value to our customers, we’re able to do so  profitably — a win-win. That’s how we deliver  The Art of the Possible to our investors. Speaking of this past year, it certainly threw a number of curveballs and challenges at us. Record high gas prices crimped the disposable income of  our customers, while also increasing the cost to import and transport merchandise to our distribution centers and stores. Four hurricanes hitting Florida in less than two months caused upheaval for everything from trucking to store operations. But our stores weathered the storms, with some even doing business by candlelight — talk about dedication! Despite everything the commodity markets and Mother Nature threw our way, I am proud that we not only survived these tests but thrived. During these past several years, we have reinvested in the business to open up new possibilities for Dollar Tree and drive stronger results in the years ahead. Just some of our noteworthy accomplishments in 2004 include: • Successfully opening two new distribution centers: one in Ridgefield, Washington, the other in Joliet, Illinois. Seamlessly opening one new distribution center would be cause enough for a high-five. Two in the same year are cause for celebration. Having  it occur in a year when the cost of gasoline soared  is priceless. These two new distribution  2 DOLLAR TREE STORES, INC. • 2004 ANNUAL REPORT '00 '01 '02 '03 '04 $3,126 $2,800 $2,329 $1,987 $1,688 Net Sales (In millions)