40 members of the CEO team that make it all happen responsive to demand, delivering products and restocking shelves with an efficiency unparalleled in the industry. As a testament to its efficiency, this year, Midas Inc. asked us to distribute core parts to nearly 1,700 Midas shops across the country. Seeking best practices also led to our implementation of a new “pay-on-scan” initiative. It partners us with our suppliers to drive customer sales, while reducing expenses and improving working capital up and down the supply chain. Recognizing the importance of strong corporate governance led to our early adoption of leading practices. Over two years ago we estab- lished an independent Board of Directors and annual elections, repealed our poison pill and adopted a code of conduct across the entire Company. In fiscal 2002, we enacted a “roll-up” certification where all members of our management team review and “sign on the dotted line” when it comes to the integrity of our financial information. In recognition of these practices,  Institutional Share- holder Services recently ranked us in the top 5 of 5,000 com- panies for our responsible governance. By dedicating a chain-account commercial sales force, we have begun to extend the benefits of one-stop shopping to professional technicians across the country. Leveraging the national reach, effi- cient inventory and “hub and spoke” system of our retail stores allows us to provide the most expeditious delivery of quality parts to repair technicians available in the marketplace today. And we are just getting started. Clearly we’re not your ordinary vehicle solutions provider. We think differently. We go beyond parts and beyond the vehicle to reach out to customers—to be the best in the industry and beyond. Does it make a difference? You bet it does. We’re in a Zone of our own—a zone we like to think of as the “Performance Zone.” And we’re determined to perform at the top of our game to deliver greater shareholder value well into the future. I can promise you we never want to do the same old thing over and over again! Challenging the status quo also has had a significant impact on our business disciplines. It led to the rigor of a 15 percent after-tax internal-rate-of-return hurdle rate for all discretionary investments, to the adoption of economic value-based management incentives, to the development of better strategic planning tools, and to the  relentless pursuit of cost management. Our team is more financially driven than ever—focusing not on growth alone, but on growing shareholder value. Best regards “A relentlessly creative innovative spirit permeates  our organization. Truly,  this is our strategic advantage.” Steve Odland Chairman, President, and CEO Customer Satisfaction 11 Zone for vehicle solutions! Innovation abounds in our AZ Commercial business, too.