UNITED STATES:
INSTITUTIONAL

The Institutional Division achieved steady growth during 2003 despite economic challenges within its markets. It continued to increase market share in all of its core segments, and took strategic steps to further improve operating efficiency and customer retention.

HIGHLIGHTS

> Seized market share from the competition and further strengthened its position in the corporate account arena, thereby enhancing its position as the industry leader in providing large, multi-unit restaurant and hospitality operations with consistent, chain-wide service and support.

> Continued to penetrate the independent restaurant market by leveraging its solid distributor partnerships and through the introduction of two new Ecotemp dishmachines: the low-temperature Typhoon and the high-temperature Inferno, both of which feature exclusive, built-in solid product technology and a revolutionary ventless steam removal system.

> Launched innovative new offerings such as Formula 1, a single-step, on-premise laundry system designed for the hospitality industry, and X-Static Soft 'n Scented Static Control Blocks, which mount directly inside dryers, providing precise static reduction, extra softness and a long-lasting aroma.

OUTLOOK

Institutional expects to drive further growth in 2004 by continuing to aggressively pursue new corporate and independent customers, and by rolling out several new, technologically advanced product and system innovations in its core markets. It also remains committed to the continued expansion and development of its industry-leading sales-and-service force, with priorities being training and field specialization.