I am pleased to be able to address you at the end of another successful year for the Spectrin family. Despite the slower economic climate, we were still able to thrive as a company.

A sizeable part of our research business comes from government contracts. The current economic situation has meant a smaller pie of government investments, and recent military operations abroad have meant that industries such as ours get a thinner slice. In spite of this situation, we have been able to operate more efficiently due to our aggressive transfer of on-the-ground responsibility to our field operatives. Breakthroughs by our technical teams have resulted in a 13% increase in revenues over the course of the year. Details on our financial health are in the 2003 Annual Report sent out to shareholders earlier this month.

Sincerely,

Robert A. Hunter, Chairman