We expect continued momentum in the North American consumer business for fiscal 2007 and beyond. Our ability to continue outperforming our competitors will be dependent on further leveraging our core competitive advantages, starting with a commitment to innovation.

Indeed, our history is a case study of product innovation that has driven sustained growth and enhanced shareholder value. The milestones on the next page outline just a few of our most important product innovations.

Every one of the products on this timeline remains in our portfolio today and continues to grow. For example, consumer purchases of Turf Builder® fertilizer – which was introduced nearly 80 years ago – improved by 24 percent in 2006. As a company, our ability to balance ongoing support of franchise products like Turf Builder® while also investing in innovation has been critical to our sustained growth.

Going forward, investors should expect ScottsMiracle-Gro to work even harder to maintain this balance. For example, because nearly half of all homeowners still don’t actively engage in lawn care, many of our efforts will remain focused on building participation in the category. We believe the introduction in 2007 of natural and organic lawn fertilizers marketed under the Scotts® brand will play a key role in reaching a broader audience.

Whether it’s a new product or one that has been in the marketplace for years, consumers know that our commitment to innovation means they can expect superior performance from ScottsMiracle-Gro. And building upon that consumer trust will remain a critical part of our continued success.

*Roundup is a registered trademark of Monsanto Technology, LLC.