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A key priority of your Board of Directors and senior management team is to ensure a high level of accountability to our shareholders. 

This is accomplished through management incentive compensation programs based on performance and aligned with investors’ priorities. A balance of long-term and short- term compensation programs for our top leadership team provides appropriate rewards for performance against specifi c metrics, predominantly adjusted EBITDA and free cash 

fl ow targets. Our major priority is aggressive, continu- ing debt reduction to materially strengthen our balance sheet. 

Macroeconomic trends most likely will remain challeng- ing worldwide. We are not depending on any meaningful economic recovery or improvement in consumer spending in our outlook for higher sales and cash fl ow in fi scal 2011. 

One of our hallmark strengths, however, is that many Spectrum Brands products are non-discretionary, replacement products needed by consumers in their everyday lives. 

Given this, we believe by providing superior margins to our customers and offering consumers the same performance at a better price or better performance at the same price is the winning strategy. As the global value proposition leader in our space, we will continue to move forward to invest in our business, reduce our cost structure, launch new products, grow EBITDA and provide strong free cash fl ow generation. We believe 

“ . . . our businesses should allow us to pay down debt by at least $200 million and grow adjusted EBITDA to $455-$465 million in fi  scal 2011.” 

our businesses should allow us to pay down debt by at least $200 million and grow adjusted EBITDA to $455-$465 million in fi scal 2011. 

This should allow us to reduce our leverage to 3 times or less by the end of fi scal 2012. 

In closing, I want to thank our Board of Directors for their guidance, commitment and energy in building a prosperous Spectrum Brands. We also are grateful to our more than 6,000 talented and dedicated employees around the world for their productivity and zeal. 

needed to drive a prosperous and rewarding future and even greater value for our stakeholder family. Thank you for your continued support. 

Sincerely, 

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Our Company’s exciting and promising journey carries on. We will stay the course, always looking to accelerate the pace when and where we can. Spectrum Brands has the vision, the mission, the strategy, the fi nancial and human resources, the business models, and the market and product opportunities 

