AMERICAN EXPRESS FINANCIAL ADVISORS ASSETS OWNED, MANAGED OR ADMINISTERED _ Continued weakness in equity markets led to lower asset levels in 2002. As a result, assets owned, managed or administered by American Express Financial Advisors declined 9 percent. in the U.S., Canada, Europe and Asia, driven by gains in the retail and everyday spend categories, as well as the continued benefits of our cardmember rewards programs. This was partially offset by continued weakness in corporate spending, as companies remained cautious about travel and entertainment expenditures. Revenues from our global cardmember lending portfolio increased due to wider interest rate spreads and solid growth in loan balances. Travel Related Services (TRS) – which includes our card, travel, merchant and network businesses, as well as our Travelers Cheques and Prepaid Services group – reported record net income of $2.14 billion, up 46 percent from the prior year. While the year-ago results included TRS’ portion of the previously mentioned restructuring charge and September 11th-related costs, underlying earnings growth in 2002 was strong. TRS’ revenues rose 2 percent, reflecting higher spending and borrowing on American Express cards. Our rate of top-line growth at TRS was disappointing due to persistent weakness in the economy, particularly in travel and corporate spending. However, we are encouraged by the momentum we generated in a tough environment. Card billed business, or the total amount spent on American Express cards, rose 4 percent. We had relatively strong growth in consumer card spending  Overall credit quality remained strong and improved during the year. As a result, our total provision for losses declined from 2001. Delinquency trends for both charge and lending receivables improved from  a year ago.  We added a net total of 2.1 million cards in force in 2002. As noted earlier, this included a significant increase during the fourth quarter, when we started  to see results from our higher investments in card acquisition. Total cards in force reached 57.3 million at the end of the year.  I 8 AXP I Business Unit Results TRAVEL RELATED SERVICES 02 01 00 99 (in billions) $350 $300 $250 $200 $230.6