CHANGING OF THE GUARD On January 4, 2004,Amos R. McMullian, Flowers Foods’ fourth CEO in 85 years, turned the reins of the company over to George E. Deese, a 40-year Flowers veteran and then president and chief operating officer.Amos McMullian held the CEO post for 22 years, guiding the company through one of its greatest periods of expansion and growth. Mr. McMullian continues to serve as non-executive chairman of the board and will continue to influence the company’s strategic direction. Fiscal 2003 was an outstanding year that generated record results and record levels of cash. Our balance sheet is stronger than ever.We plan to invest the cash generated wisely – for capital improvements, for internal growth, for acquisitions, and for dividends and share repurchases. We p l a n t o e x t e n d t h e t e r r i t o r y s e r ve d by o u r f re s h d i re c t - store-delivery routes by 100 to 150 miles from our current territory over the next three to five years. It’s an ambitious goal. However, by adding a bakery in strategic locations about every 18 months and with carefully chosen acquisitions, we believe we can achieve our goal in that time period. Concurrently, we will continue to build our national distribution of snack cakes and frozen breads and rolls  through warehouse delivery programs. Grain-based foods are part of a healthy diet. Bakery foods, such as bread, are nutritious and have been the staff of life  for centuries.We like this business and we understand it. We h ave d e p t h o f e x p e r i e n c e t h at i s u n p a r a l l e l e d i n t h e industry and we expect to continue building value for our shareholders by growing in the bakery foods business. As we work to build value for you, our shareholders, we  are guided by these principles: integrity, quality, service, commitment, and innovation.Thank you for your interest  in Flowers Foods. George E. Deese President and Chief Executive Officer Amos R. McMullian Chairman of the Board