the nature of united technologies  We continue our exceptional record of compliance and corporate citizenship. Our world- class Employee Scholar Program celebrated its 10,000 th degree attainment in 2002. We know of no other company with such an extensive and well-received program. Our lost work incidence rate was reduced by 27 percent in 2002, bringing the total reduction over the decade to 88 percent. Water and energy use (normalized for volume) in 2002 were reduced 10 percent and 5 percent, respectively. Never content with present performance, we have recently increased these water and energy targets to 40 percent reductions from the 1997 base year. Jan van Dokkum joined UTC in September as President of UTC Power, which is UTC’s  distributed generation business and includes fuel cells, microturbines and co-generation applications for both. Steve Page returned to UTC’s Corporate Office in April as a director and Vice Chairman  of the board, completing a distinguished five years as Otis Elevator’s President. Ari Bousbib succeeded Steve as Otis’ President. In September, Steve was elected to the additional post of UTC Chief Financial Officer. This record and accomplishments reflect the complete commitment and focus of our 155,000 employees worldwide. On behalf of shareowners and all UTC constituents, special thanks to every single one. George David  Chairman and Chief Executive Officer  February 4, 2003 4 united technologies corporation