Pr esident’s Letter FINANCIAL RESULTS RESTAURANT OPERATIONS Fiscal 2004 has been a year accentuated by both enhanced profitability and overall advancement of our business. Net income for the fifty-two weeks ended March 28, 2004 was $1,894,000 or $0.36 per basic share as compared to a net loss of $13,968,000 or $2.34 per basic share for the fifty-two weeks ended March 30, 2003. Earnings from continuing operations were $1,894,000 as compared to a loss from continuing operations of $1,506,000 for the fifty-two weeks ended March 30, 2003. As of June 27, 2004, we repurchased 851,301 shares of common stock pursuant to our share  repurchase program adopted on October 7, 2002 to repurchase up to an additional one million shares of common stock. These purchases are in addition to the previously completed repurchase of one million shares of common stock pursuant to our share repurchase program adopted on September 14, 2001. During Fiscal 2004, thirty-four new restaurants opened, all of which were franchised, representing a substantial increase in restaurant development over the prior year. In total, franchise royalties increased by $483,000 or 9.0% in Fiscal 2004 compared to Fiscal 2003. At March 29, 2004, we operated five fewer Company-owned restaurants compared to the prior year as a result of our franchising or entering into management agreements for these five restaurants. The financial impact associated with our reduction in Company-owned restaurants lowered restaurant sales by $5,323,000 and improved restaurant profits by $43,000 versus Fiscal 2003. Further, the decrease in Company-owned restaurant operations enabled us to implement a manpower reduction plan, which was the primary reason for reductions in realized corporate expenses. In total, corporate general and admin- istrative expenses were reduced by $1,081,000 or 12.6% in Fiscal 2004 compared to the prior year. Internationally, in Fiscal 2004, we signed a master franchise agreement for the development of Nathan’s in Japan. On December 18, 2003, the first Nathan’s restaurant opened in Tokyo. We expect to have an additional three Nathan’s restaurants operating in Japan by the end of September, 2004. Also, during Fiscal 2004, we entered into a master franchise agreement for the development of Nathan’s in Kuwait and began to have our hot dogs sold on an American military base there.  2004 Ann ual Report  Nathan’s Famous, Inc. & Subsidiaries page one