Solid growth, increased sales and
earnings mark 2007

In 2007, successful acquisitions, winning innovation and European expansion catalyzed record sales and improved earnings that outpaced our industry.

• Recently acquired Humminbird®, Cannon®, Lendal® and Seemann™ brands represented a third of the year’s revenue growth.
• New products accounted for 30 percent or more of total company net sales for the fourth consecutive year.
• Europe has become a high-growth marketplace with significant white space opportunity for every business.

Although one-time items last year and this year resulted in an unfavorable operating profit comparison, net earnings continued to grow.

We are on an accelerated growth curve, with record-setting market demand for our products resulting in increased inventory and working capital levels. Going forward, we will manage growth efficiently by further strengthening operations, streamlining business processes and fully leveraging assets to grow profits faster than sales.

Over the past five years, we have created positive marketplace momentum for our leading brands, and built a strong foundation for sustained profitable growth. As a result, today we have the financial capability to both invest in the future and return a portion of earnings to our shareholders through quarterly dividends. Our confidence in the future is matched only by our excitement for the journey that lies ahead.

Thank you for your continued support.

Sincerely,