Since the successful spin-off of our optical medical device businesses in mid-2002, Allergan has focused all of its  management and financial resources on growth and innovation in its pharmaceutical businesses. From 1997 through 2003, Allergan’s pharmaceutical businesses have more than doubled in size driven by the strength of our scientific innovations and sales and marketing capabilities. Allergan is truly unique in the pharmaceutical industry. We combine revenue diversity through a broad proprietary product portfolio and global R&D development capability similar to the large, fully integrated pharmaceutical companies with the high growth and lean operating models of specialty pharmaceuticals and the strong pipeline characteristics of biotech. Furthermore, Allergan is small enough for flexible decision making and nimble execution whilst being large enough to command sufficient economies of scale to succeed in the specialty markets in which we compete. This uniquely  attractive business model has enabled us to build a depth of managerial and scientific talent, and has provided financial resources to generate sufficient profit streams for reinvestment back into breakthrough R&D. Key aspects of our business model include: INTEGRATED GLOBAL R&D: Allergan is one of the few mid-sized pharmaceutical companies with a strong, internal discovery capability spanning multiple, strategically targeted therapeutic areas and that possesses small molecule and biologics assets. Our internal discovery know-how is further supplemented by a global network of discovery part- nerships. With the 2003 acquisition of Oculex Pharmaceuticals, Inc., Allergan has enhanced its expertise in drug delivery. LEADING SALES AND MARKETING CAPABILITIES: As a true specialty company, we market to limited numbers of physicians, typically 10,000 or less, in the United States. This allows us to service our customers with manageable sales forces that are among the largest in their competitive segments. HIGHLY LEVERAGED ASSETS: As a relatively small player in the overall pharmaceutical industry, we have streamlined our structures to achieve economies of scale by concentrating manufacturing into three world-class plants and clinical development into four global units. EFFICIENT AND EFFECTIVE: Allergan has one of the best track records in the industry for success measured in terms of the number of compounds entering the clinic relative to the number of market approvals and is in the top quartile of benchmark performance for speed and costs of clinical development. Our large, well-trained sales forces are managed according to tight performance metrics and customer satisfaction, utilizing state-of-the-art information technology tools. In manufacturing, we utilize Six Sigma and Lean Manufacturing techniques. A mantra for maintaining flexibility is to maintain a lean overhead structure – in 2003 our general and administrative expenses were below 8 percent of sales – driven by our ability to leverage strong, common processes and our investment in a single world- wide SAP information technology platform. STRONG GROWTH DRIVEN BY INNOVATION. In an industry challenged by declining pharmaceutical growth rates, Allergan again delivered superior results in 2003, posting 23 percent growth in our core pharmaceutical products. Driven by a multitude of new product introductions and new indications for BOTOX, sales in dollars increased in excess of 20 percent in every business: ophthalmology, neuromodulators and dermatology, with us gaining market share in each of these areas.  Allergan – the only true specialty pharmaceutical company in the world.