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## Continued Upgrade of Technological Capabilities 

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$^{1}$Pro forma, using annualized fourth-quarter statistics for the Chippewa Falls facility, acquired in December 2002. 

 With all indicators pointing to continued improvement in PCB demand, we want to ensure that we have the appropriate capacity to satisfy the growing needs of our customers. In February 2004, we announced plans to increase production capacity at our Chippewa Falls,Wisconsin facility. By expanding our existing facility, we have the ability to rapidly add capacity without the need to qualify customers for, or develop management infrastructure at, a new facility.  Such an expansion enables us to leverage our existing operation and provide the fastest and lowest risk opportunity to achieve an attractive return on capital. 

The first phase, which we expect to complete by the end of 2004, includes construction of a 44,000 square foot addition, the purchase of capital equipment, and expanded employment. This phase of the expansion should increase capacity at Chippewa Falls by approximately 55 percent from its current levels, at a cost of approximately $10 million. 

We have also planned for a second phase of expansion at Chippewa Falls. Through additional staffing and the purchase of approximately $4 million in capital equipment, we can increase production at Chippewa Falls by another 30 percent over current capacity levels at that facility. We will make the decision to proceed with phase two, subject to market conditions. If we move ahead, completion would take three to six months from the time the decision is reached. In addition, we continue to invest in and expand our other two facilities with our existing capital expenditure programs. 

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## LOOKING AHEAD 

On multiple fronts, end-market indicators are improving, pointing to further expansion of the printed circuit board industry in 2004. We feel our market position, our technical capabilities, and most importantly, our people will allow us to continue to gain a larger share of this growing market. 

Our strategy has not changed since TTM’s inception, and this has served us well throughout the electronics industry cycle. We will continue to use our time and technology approach to deliver quality products and service to our customers and superior growth and profitability to our shareholders. Our successes would not be possible without the talent and dedication of our employees, who deliver for our customers every day. For this we extend a thank you for a job well done. 

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