Corning’s telecommunications segment has reached a period of stability after the tumultuous downturn in the telecommunications industry. And despite the industry’s challenges, we never stopped investing in this segment. We have remained confident that its growth potential would remain substantial over time, fueled by the growing demand for high-speed communications by businesses and individuals around the world. With that perspective, we are focusing much of our optical fiber, cable and hardware resources on fiber to the x (FTTx) , a technology that provides high-speed, secure broadband connections from metropolitan and access telecom networks directly into buildings. Within this broad category, we consider our most immediate opportunity to be fiber to the premises (FTTP), referring primarily to “last-mile” connections to homes and businesses through telephone carriers. Currently, most lines taking telephone, cable and data services directly to a home or business are made of copper wire. Just as with long-haul networks, optical fiber is a much faster and more efficient way to carry those signals. And last year, the Federal Communications Commission enacted a set of public policies that has, in essence, made investing in FTTx networks more attrac- tive for the telecommunications carriers. And it reinforces the fact that FTTx is real, economically viable and happening today, not only in the United States, but in markets throughout the world. The U.S. carriers have many issues to sort through before they start making major investments to enable high-value consumer services — such as bundling service offerings to include voice, data and video. But we believe that, over the coming years, global economics will increasingly favor fiber network investments that will include FTTx.  For Corning, the potential market is significant, and our fiber, cable and hardware capabilities can bring an integrated solution to our customers. Potential revenue is between $60 to $200 for each home passed and connected — and there are about 100 million homes in the United States alone. With rapid broadband deployment happening today in such countries as Japan, Sweden and Korea—and the potential for United States carriers to do the same —we expect to start seeing FTTx-related revenue growth within the foreseeable future. Our innovation efforts are focusing on adding significant value—that is, driving down carriers’ overall FTTx deployment costs while maintaining the standards of quality that we have set for  the entire industry. We excel at this market-focused innovation because we understand what makes our customers successful. We create and continually evolve optical technology across all application spaces and market segments to make possible that success. Our technology and market leadership in telecommunications provides us with a unique ability to innovate and create value for carriers. We invented the world’s first optical fiber for communi- cations more than 30 years ago—and we are very excited about applying our innovative strength to help bring the power of fiber optic connections to homes and businesses throughout the world. Long Haul  Fiber Metropolitan Metro Core Metro Edge Copper moving to fiber Local Access Fiber to the x Primarily Copper Last Mile Long Haul  1 km Metropolitan 10 km Access to Last Mile 100 km Network Today: Efficient Network Architecture: Fiber Copper/Coax