All are strategic acquisitions that expand on our global strategy to offer the “total package” in motion and control, and raise the bar on customer service.  We are only beginning to realize the value of our total Parker offering. For years, we’ve  taken great pride in the close-to-the-customer decision making our decentralized organizational structure  promotes. The empowerment is real. But so is the complexity for our customers who want all we have to offer. We’re listening, and we’re doing something to change that. We’ve just launched  PHconnect , a one-stop, web-based system that lets customers and distributors do  business with Parker easily across divisions. It is linked straight to inventory, allowing catalog and availability  searches, and it lets users process and track multiple orders from multiple locations, all the way through shipment.  PHconnect is real-time and seamless, but most important, it makes it easy for our customers and partners to transact business and engage in account self-service with us, even when the “us” may include a dozen divisions and several distributors. It’s about making Parker more user-friendly, because we have so much to offer, all from one source. Anything possible. That’s where it starts. It is our commitment to rethink, reengineer and realign ourselves  to fulfill the needs of our customers and in turn, our society. If it sounds like a big undertaking, take a look around. Wherever you are at this moment, it’s highly probable that Parker played a critical role in getting you there, in developing the place you’re in, and in making many of the goods and materials that surround you, even the paper and printing to create this report you’re reading right now. Every achievement of Parker is shared, among the wonderfully talented people we employ, the cherished customers who challenge us to do new things, and the shareholders who provide capital to be deployed for these purposes. Every one has real value, and as we’ve seen throughout our history, there is always something new. We take this seriously, and nothing for granted. We think everyone should marvel at the innovations quietly being inaugurated in our lives today. In this report, we aim to point out some of the viable new applications made possible by Parker. Among them, this year we helped make humanity’s first permanent home on the International Space Station. Our sense of triumph is not in the thousands of products we have working on board. It is that we are sustaining an environment in which scientific breakthroughs are being utilized and developed; advances in which we will play a critical role here on earth, such as the practical employment of fuel cells and organic preservation methods.  Donald E. Washkewicz President and Chief Executive Officer Duane E. Collins Chairman of the Board September 10, 2001 D2 (this PE Walleu*,