Since 1997, Rollins, Inc. has taken steps to focus attention on its core business, Orkin Exterminating Company, divesting businesses less central to our new direction, launching new sales and service programs and taking other initiatives designed to promote pest control growth while making our operations more efficient. We are pleased that our efforts are paying off, as evidenced in part by our improved market share and financial results. The Company continues to concentrate on enhancing stockholder value by building recurring revenue, with emphasis on Orkin’s commercial pest control business and containment of termite claims costs. LETTER TO THE STOCKHOLDERS The Company suffered a great loss in April of 2000, with the passing away of John W. Rollins, Sr. John was one of the Company’s co-founders and longest-tenured Directors, serving since 1948. We will miss  his substantial guidance and leadership. 2000 at a Glance Fiscal Year 2000 was an excellent year in many respects. Among the highlights were: These improvements in Revenues, Net Income and Earnings Per Share are primarily attributable to the successful integration of the Company’s alternate pest control service offering, our new Directed-Liquid Termite Baiting Program and the contribution of our strategic acquisitions completed in 1999 and 2000. The efficiency and productivity of our core operations were also strengthened in 2000 by continuing improvements in our application of information technology. FOCUS, our new proprietary branch computer system, was introduced in selected branches in 2000 and is scheduled to be introduced Company-wide in 2001. One of the many potential benefits of FOCUS is that it will allow Orkin to identify customer trends enabling us to adopt and refine new strategies and business practices. Another technological advancement, that we expect to increase efficiency and productivity, is our new routing and scheduling software. This new management tool works in conjunction with FOCUS, and is scheduled to be implemented Company-wide in the upcoming year. Moving Forward While we acknowledge that Fiscal Year 2000 was a success, we also recognize there is much opportunity for continued improvements. We remain optimistic that our financial results will continue to get better as our new sales and service programs mature. Adapting to a changing customer and business environment is not new to our Company. As Orkin Exterminating Company, Inc. enters its 100th YEAR OF SERVICE, it has certainly seen significant changes in the ways in which it competes today versus in the past. As we move forward into the 21st Century, the Company is continually seeking to implement new practices and methods which will enhance the efficiency of our operations so that we can continue to provide our customers with superior service while at the same time providing appreciating value to our stockholders. February 16, 2001 1 R. Randall Rollins Chairman of the Board and  Chief Executive Officer Gary W. Rollins President and Chief Operating Officer • Basic and Diluted Earnings Per Share increased by $0.08 or 33.3% over 1999. •N e t I n c o m e i m p r o v e d 3 . 6 % o v e r p r i o r y e a r . • Revenues grew by 10.7%, the highest annual growth since 1993.