content_image/59930.jpg content_image/59931.jpg
z The broadband market comprised 13% of our sales last year and was up 17% from year 2003 

<img src='content_image/59930.jpg'>

levels. We serve the broadband market primarily with coaxial cable; in addition we continue to broaden our participation in this market with installation related interconnect products. The growth in this market was fueled by expansion of broadband cable television systems in international markets and by the upgrade by cable operators in the U.S. to full service digital systems offering a variety of video, voice and data services. 

z The industrial/automotive markets comprised 26% of our sales last year and were up 26% from year 2003 levels. Our automotive market product offering is comprised of interconnect systems for automotive safety devices, communication and entertainment systems, and the increasing presence of automotive electronic features. Our growth in this market was driven by the increased utilization of sophisticated airbag and related safety devices as well as the increased use of satellite radio and other electronic devices in automobiles. Our sales to the industrial market which include factory automation, medical, test and measurement instrumentation equipment, heavy equipment and mass transportation were also up last year re fl ecting the key role of factory automation in driving productivity improvements, the growing use of sophisticated electronic equipment and instrumentation for medical applications, and 

the increasing importance of sophisticated intercity and intracity mass transportation equipment. The industrial markets encompass a broad and diverse range of applications with signi fi  cant opportunity for growth resulting from the increased use of sophisticated and complex electronic components with signi fi  cant demands for increased power. We have done an excellent job of increasing our presence with leading industrial manufacturers. 

<img src='content_image/59931.jpg'>

2004 was a very rewarding year for all of us at Amphenol. It was a year where we continued to make signi fi  cant investments for growth. We continued our expansion, investing $44 million in new tooling manufacturing and test equipment, and opening eleven new manufacturing facilities, ensuring suf fi  cient capacity to meet the increasing demands of our customers. In addition, we opened several new R&D and sales operations, consistent with our strategy of keeping these critical resources close to our customers. Our workforce expanded to over 16,000 worldwide with the vast majority of this expansion in low cost regions. At the end of 2004, 56% of the Company’s workforce was in low cost regions . . . an excellent platform for pro fi table growth. We also continue to pursue our complementary acquisition strategy focusing on the opportunities presented by a fragmented industry that is continuing to consolidate. We completed one acquisition in 2004 expanding the Company’s presence in the growing automotive electronics market. We continue to explore additional acquisitions that are complementary in nature and accretive to future performance. 

