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5,500 companies rated. The NYSE should provide our stockholders with an excellent trading environment and a platform of greater liquidity and transparency. Likewise, the ISS rating reflects our long-standing com- mitment to corporate governance best practices. 

We also further strengthened our board of directors in 2003 with the appointment of David A. Reed as an inde- pendent director and chairman of the Audit Committee. David also serves on our Corporate Governance and Nominating Committee. David retired in 2000 as Senior Vice Chair for the international accounting firm Ernst & Young LLP and provides another highly experienced expert to Drew’s eight-member board, the majority of which are independent directors. 

## LOOKING AHEAD 

While we are confident about our growth prospects in 2004, increased steel prices remain a challenge. In mid- December 2003 and continuing into 2004, Drew was noti- fied by its steel suppliers of unprecedented price increases, which have now aggregated more than 60 per- cent. In response to the steel price increases, we took quick action to limit the impact on our operations, and as a result, the steel price increase is expected to have only a minimal effect on 2004 results. 

In January 2004, the Company sold certain intellectual property rights related to a process used to manufacture a new composite material that is stronger, requires less maintenance, and has a better overall appearance than fiberglass. The sale price was $4 million, including a note of $3.9 million payable over five years. Drew anticipates that it will record a net gain of about $300,000 in the first quarter of 2004. Additional gains will be recorded in subsequent quarters as the $3.5 million balance of the note is collected. 

Simultaneously with the sale, Drew entered into an equipment lease and a license agreement with the buyer. As a result, our Better Bath division is expected to be able to compete favorably in the estimated $20 million market for fiberglass bathtub products for manufactured homes. 

EDWARD W. ROSE, III AND LEIGH J. ABRAMS 

In the future, we anticipate introducing products using this same process for modular homes and recreational vehicles. While the introduction of these products will not have a significant impact on results for 2004, we do believe it’s an important opportunity for growth in 2005 and beyond. 

Our goal for 2004 will be to continue to gain market share with our innovative products for travel trailers and fifth wheel RVs, while at the same time accelerating growth in sales of our windows and recently intro- duced slide-out mechanisms and leveling systems for motorhomes. 

Finally, we recognize the contributions of Harvey J. Kaplan, our Treasurer and Secretary, who retired in 2003 after faithfully serving Drew for more than 34 years. Our heartfelt thanks go to Harvey and his family. Harvey has agreed to assist Drew on a consulting basis with the com- pliance requirements of the Sarbanes-Oxley Act, and we appreciate the opportunity to continue to tap his expert- ise. At the same time, we welcome Joseph S. Giordano III, who joined Drew this year as our new Treasurer and Corporate Controller. Prior to joining Drew, Joe spent 12 years at major public accounting firms. 

As always, we want to thank our employees for their dedication, creativity and hard work on behalf of Drew. We also recognize our suppliers, customers, and associ- ates, all of whom played an important part in our excep- tional results in 2003. 

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