BUSINESS DESCRIPTION 2004 FINANCIAL HIGHLIGHTS DARDEN RESTAURANTS Darden Restaurants, Inc. is the largest publicly traded casual dining company in the world (based on revenues from  company-owned restaurants), serving more than 300 million meals annually at 1,325 restaurants in 49 states and Canada.  We operate four distinct restaurant concepts that together generate annual sales of more than $5.0 billion. Our flagship  brands, Red Lobster ®  and Olive Garden ® , are the market share leaders in their casual dining segments. Each produces sales  in excess of $2 billion annually, making us the only restaurant company in the causual dining industry with two  restaurant concepts of this scale. Our emerging brands are Bahama Breeze ®  and Smokey Bones Barbeque & Grill ® , and  Seasons 52 SM  is in the test phase. Based in Orlando, Florida, we employ more than 141,000 people and our Company  trades on the New York Stock Exchange under the symbol DRI.  As described in the table below, net earnings and diluted net earnings per share for the fiscal year, excluding the  asset impairment and restructuring charges associated with the closing of six Bahama Breeze restaurants and the  write-down of the carrying value of four other Bahama Breeze restaurants, one Olive Garden restaurant, and one  Red Lobster restaurant, were $254.5 million, or $1.50 per diluted share, on 53-week sales of $5.0 billion. Fiscal Year Ended  May 30, 2004  May 25, 2003  May 26, 2002 (In millions, except per share amounts)  (53 weeks)  (52 weeks)  (52 weeks) Sales $ 5,003.4  $ 4,655.0  $ 4,366.9 Net Earnings  $ 231.5  $ 232.3  $ 237.8 Net Earnings per Share: Basic  $  1.42  $  1.36  $  1.36 Diluted $  1.36  $  1.31  $  1.30 Dividends per Share  $ 0.080  $ 0.080  $ 0.053 Average Shares Outstanding: Basic  163.5  170.3  174.7 Diluted  169.7  177.4  183.5 53 Weeks Ended May 30, 2004  Diluted Net (In thousands, except per share data) Net Earnings  Earnings Per Share As reported  $ 231,462  $ 1.36 Asset impairment and restructuring charge  23,053  0.14 Adjusted  $ 254,515  $ 1.50 Total Restaurants Sales In billions 99 00 01 02 03 04 $3.4 $3.7 $4 . 0 $4.4 $4.7 $5.0 1125 1175 1225 1275 1325 99 00 01 02 03 04 1,139 1,139 1,168 1 ,211 1,271 1,325 0.500 0.725 0.950 1.175 1.400 99 00 01 02 03 04 $0.66 $0.89 $1.06 $1.30 $1.31 $1.36 Diluted Net Earnings  Per Share In dollars