DSG Overview

Efficiency/Productivity Strategy

• Permanently increased productivity and created expense leverage through numerous systems conversions and enhancements

• Recently completed home office consolidations of two divisions, leveraging management talent, streamlining decision-making and reducing overhead by $15 million annually (beginning in 2001)

• Started construction on new distribution center, which will consolidate three facilities into one, reducing overhead by $10 million annually (beginning in 2002)

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