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The success of Scotts LawnService starts with the premise of forming a true partnership with each homeowner to help them achieve a beautiful lawn. Since its inception in 1998, Scotts LawnService has grown to a $135 million business and is now the No. 2 player in the $3.6 billion lawn service industry, servicing customers in more than 140 markets, including 73 of the top 100 lawn service markets.

By communicating the promise of a great lawn and leveraging the power of the Scotts brand, the award-winning direct marketing efforts at Scotts LawnService resulted in record increases in the number of new customers in 2004. Once we attracted new customers, we did a better job of retaining them for the entire lawn care season.

New compensation programs provided associates at all levels with financial incentives directly linked to delivering the best customer service possible, not
just driving growth. That focus resulted in record customer retention levels in fiscal 2004. As a result, revenue increased 22 percent during the year, and operating profits improved 56 percent.

Nearly anyone can service a lawn. It takes a serious commitment, however, to help homeowners create the lawn they really want. Our emphasis on customer service led to success in this high-margin business during 2004 and demonstrates why we believe Scotts LawnService is poised to be an engine for long-term growth.