Focused on  premier customer service, financial performance  and profitable growth , we’re always  raising the bar with strategies designed to set new standards in these measures. Staying close to our  customers, working “lean” in every aspect of our business, and choosing suppliers as though our future  depends on them really are strategic processes that enhance our position as the motion and control leader,  and increase the value of Parker as a franchise and an investment. Strategy Global Market Demand and Parker’s Share N o r t h A $^{$^{m}$e}$r i c a $25 Billion Market L a t i n A m $^{e}$r i c a $1 Billion Market E u r o p e $12 Billion Market A s i a P a c i f c $11 Billion Market New Products Highly pressurized fluids and gasses passing through Parker’ s new Microbore tubing are used to clean traumatic wounds and perform micro-surgery with greater ease and precision than other methods. This results in less damage to surrounding tissue for better healing and faster recovery. Design centers to engineer total systems and provide rapid prototypes to support our customers’ new  product development. These operations also test and prove the engineering concepts we develop for  customers;  PHconnect , an internet-based architecture for choosing, ordering and tracking shipments across Parker’s  array of products. Developed to exceed the capabilities of typical electronic data interchange systems,  PHconnect provides the gateway to allow customers to integrate their transactions and manage their  accounts seamlessly;  PSO software that allows for one order and one invoice for any bill of material of Parker products;  New organizational structure aligning all of our motion and control groups under the same executive to  enable us to obtain the system synergy of our product groups. Premier Customer Service Being where our customers are geographically and our ability to  anticipate their product and service needs before they demand them are drivers of this strategy. Our  concept of selling total systems and of treating a customer for any one product as a potential customer for  all of our products evolves the definition of premier customer service. With our customers, we refine,  redesign, benchmark, and develop products that address our common goals to improve upon the standards  of the markets we jointly serve. To achieve this, Parker has established:  Financial Performance Competing on the strength of our systems and running lean operations are  Parker’s dual strategies for greater financial performance. We intend to add value. That’s why we have  chosen to compete using systems and innovative engineering. Engineering is our essential strength.  Combined with Parker’s unequaled breadth of motion and control products, the value-added appeal of our  design engineering services creates a one-stop opportunity for customers seeking a first-rate partner to  design and manufacture systems. 