The Exchange's revenues declined about $2.4 million year-to-year, but this was partially offset by a $1.1 million reduction in expenses. Going into 2004, we expect an overhead reduction of about 20% when expense reductions are in place for a full 12 months. On a pre-tax basis before extraordinary items – mainly the cost of developing BOX – the BSE recorded a profit of about $150,000. It was encouraging to see a continuing rise in market averages during the latter part of the year, but those gains came without any significant increase in equities trading volume. Retail order flow, which is the Exchange's bread and butter business, remains at historically low levels, and with diminished retail volume, it proved to be a difficult year for BSE specialists. Their profitability has been eroded by industry pressure to reduce execution costs and by the continued impact of trading in decimal increments. As we plan for the future, we have made some major decisions on where we are headed with respect to Beacon, our order-routing, communications and equity trading platform. In 2003, reliability at the BSE was exceptional, performance statistics were among the best in the industry, and our present system continues to serve our clients well. We have expanded our network capacity and implemented a FIX Gateway. These offer broader institutional access to our trading systems, particularly among buy-side firms. With Verizon, we implemented a Boston Stock Exchange Private Sonet Ring similar to the SFTI Network implemented by NYSE SIAC. This was a post-9/11 communications network initiative that went into operation during 2003. It offers stronger fault tolerance, greater bandwidth, and provides us with enhanced connectivity for our clients. Looking ahead, rather than create an upgraded or next generation replacement of what we now have, we are shaping plans to develop what we have tentatively named "e-Beacon," a system which is responsive to the changing industry model and which will give us a far better competitive position in the marketplace. e-Beacon's technology will be biased towards automated trading with less manual intervention, and it will utilize trading technology that will provide higher level features and functionality aimed at reducing transaction costs. Also, we will continue to keep a sharp focus on cost control with respect to personnel, infrastructure and systems. Our chief challenge is to find ways to create additional productivity gains in response to industry expense reduction pressures. More often than not, the answer to the search for products and services that are faster, better, and cheaper will be technology-driven, as is the case with BOX. We intend to sharpen our marketing focus and will endeavor, on a quarterly basis, to roll out a series of technology-based trading products. This process calls for the integration of product development, marketing, sales, and customer service in a research and development program involving opportunity assessment, concept creation, idea incubation, product development, packaging, and launch. This is a year of considerable change on our Board of Governors. We are losing the services of three seasoned industry veterans. Bill Devin, former Vice Chairman of the Exchange, has served on virtually every Exchange committee and is well-versed on our operations both internally and from the customer side. Bill Shea is a financial expert who provided significant strategic insight, and Grady Thomas was deeply involved in all the important strategic initiatives undertaken by the BSE during his tenure. Also, Bruce Newell steps down as Vice Chairman – a post he has held for a number of years during his time on the Board – but he will continue to serve as a Governor of the Exchange. He will be replaced as Vice Chairman by Neil "Whit" Conary. We are pleased to welcome five new members to our Board of Governors: Collette D. Chilton, President and Chief Investment Officer of Lucent Asset Management Corporation and an Assistant Treasurer of Lucent Technologies, Inc.; Ronald R. Dion, Chairman and Chief Executive Officer of R.M. Bradley & Co., Inc.; Christopher C. Melvin, Jr., President and Owner of Melvin & Company, the parent company of Melvin Securities, Inc.; Erik R. Sirri, Associate Professor of Finance at Babson College; and Linda Whitlock, President and Chief Executive Officer, Boys & Girls Clubs of Boston. My thanks go out to our management team, staff and Board of Governors for unstinting and generous efforts in what has been a very demanding business environment. Hopefully, the economic tide is turning – it certainly appears to be as this report is written. If that is, indeed, the case we are well positioned to participate in a recovery. Our basic competitive position in the industry is strong, our business structure is sound, our costs in line, and the launches of BOX and Nasdaq trading augur well for the future. Kenneth R. Leibler Chairman and Chief Executive Officer