Visible Result TECHNOLOGY DRIVES CAPACITY  AND PROFITABILITY Streamlined Operations Improving Margins and Increasing Cash Resources In making these structural and operational changes, Align has eliminated approximately $12 million in costs, and our expenses and revenues are more closely matched. This, along with a $23 million equity financing and bank credit facility, balances our resources with our goals and makes profitabili- ty a more near-term reality. With these changes in place, management and employees alike are now sharply focused on profitability and on getting there before the end of 2003. Today, confidence is high that the team and the foundations are in place to reach this goal and, more importantly, to take major steps towards our long-term objective of creating a leading global enterprise. We have significantly upgraded our manufacturing technology, eliminating a number of time-consuming manual proce- dures. These advances, including digital scanning, modeling and automated fabrication capabilities have been critical in re- ducing our manufacturing turnaround time to approximately three weeks in 2002 while cutting our average product cost by Our operational challenge was to align the Company’s struc- ture with both our vast opportunity and near-term profit objectives. To that end we have redesigned and simplified our operations, streamlining our call center and manufacturing operations. By year-end we closed down operations in Pakistan and the United Arab Emirates, centralizing those functions in Costa Rica, where the wealth of skilled employ- ees has met the challenge to consolidate production capacity from the three former facilities. approximately 50 percent. In total, structural and technology advances led to a marked increase in output while the manu- facturing employee base was decreased by more than 400.