DEAR STOCKHOLDER: We are pleased to report that 2003 was the best year in our history, marked by sales growth, record profitability, market share gains and new product introductions. Drew Industries reported a 23 percent increase in income from continuing operations to a record $19.4 mil- lion, or $1.88 per diluted share, in 2003. Net sales grew  9 percent to a record $353 million, driven by our recre- ational vehicle (“RV”) products segment, which continues to outperform overall growth in the RV industry. In fact, we gained market share in all our RV product lines and continue to add complementary lines through new prod- uct development, as well as acquisitions. Our market share gains, along with new product intro- ductions, superior customer service and stringent cost controls combined to yield a truly outstanding year for Drew, particularly in view of the continuing decline in the manufactured housing industry. Yet, even as the manu- factured housing market continued to decline, down 65 percent from its high five years ago, we were able to maintain our margins and stay profitable in this segment. In 2003, RV industry shipments of both towable RVs and motorhomes increased 3 percent to 321,000 units, follow- ing a 21 percent increase in 2002. Industry shipments in Drew’s primary market, travel trailers and fifth wheel RVs, have been stronger than other RV categories, increas- ing more than 9 percent to 214,000 units during 2003. Outpacing industry growth, sales by Drew’s RV prod- ucts segment increased 28 percent to $219.5 million for 2003. These results were bolstered by Drew’s continued market share gains, particularly in slide-out mechanisms, the addition of new products, and to a lesser extent, the effects of the two recent acquisitions. The Company’s RV segment accounted for 62 percent of consolidated sales and 63 percent of consolidated segment operating profit for 2003. Net sales by the Company’s MH segment declined  13 percent to $133.6 million for 2003. These results  were better than the industry-wide 22 percent decline  in production of manufactured homes to 131,000 homes in 2003. Despite the decline in sales, the segment was profitable and the operating margin of this segment was on par with last year. Notably, it appears the slump in the MH industry finally may be nearing the bottom. Industry sales fell only 17 per- cent in the fourth quarter of 2003 and only 9 percent in December 2003, compared to last year. Reports indicate that the level of repossessions of manufactured homes and the level of inventory of both repossessed homes and new homes have declined significantly from last year. These are all good signs for the industry. We believe that the quality and cost advantages of manufactured homes will result in a much stronger future for both the industry and Drew’s MH segment. In fact, we are advocating for an industry-wide awareness campaign, similar to the “Go RVing” promotion in the RV industry, to build the reputa- tion of manufactured housing and its progress as a true segment of the real estate industry. On the new product front, Drew acquired certain assets and the specialty chassis and towable RV chassis business of ET&T Frames in October 2003. This acquisi- tion, along with the Company’s July 2003 acquisition of specialty RV product maker LTM Manufacturing, had only a modest impact this year. However, both acquisitions were accretive to earnings on day one, and each repre- sents a significant sales growth opportunity from their combined $11.5 million historical annual sales run-rate. 2003 was also a year of milestones in enhancing share- holder value as we moved our stock listing to the New York Stock Exchange and were recognized by Institutional Shareholder Services’ (ISS) Corporate Governance Quotient, as scoring in the 99.9th percentile among the  SHAREHOLDER VALUE CREATION OUTPACING THE MARKET 2