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## • International Markets 

With nine international sales offices and test kitchens in key markets, Middleby is prepared to grow in global markets. Our Asian manufacturing capability provides for a regional presence and low-cost manufacturing for the U.S. More than 200 interna- tional employees in sales, service and manufacturing have allowed us to become a leader in servicing U.S. and regional restaurant chains in the international markets. We are positioned to quickly penetrate emerging markets including India and China. 

## 2004 PERFORMANCE AND OUTLOOK 

All of the Middleby divisions delivered record-breaking sales to lead the company to its best year ever. Total net sales hit $271 million fiscal in 2004 compared to $242 million in 2003. Diluted net earnings per share were $2.38 versus $1.99 in 2003. Sales volume improvement, along with our continued efforts to improve operating efficiency, generated sizeable improvements in gross profit, operating income, earnings before 

taxes and net earnings. Cash flows from operations continue to be strong which will allow us to address the additional debt incurred in 2004 from the share repurchase transaction with our former Chairman and the acquisition of Nu-Vu. 

On December 23, the company announced the retirement of Middleby Chairman William F. Whitman, Jr. In conjunction with his retirement, Middleby repurchased 1,808,774 shares of common stock and 271,000 options from Mr. Whitman and his family for $83,974,578 in cash. The company financed the share repurchase with borrowings under a $160 million senior bank facility. A net charge of $(.90) per share from this transaction was reflected in the fourth quarter earnings. 

We remain very excited about Middleby’s future. The introduction of new, patented and innovative products will be a contributor to our continued growth. We are in a strong position to capitalize on the above described trends and international growth. 

On behalf of the board of d i re c t o rs, m a n agement and employe e s, we thank our shareholders for their continued support and confidence. We will continue to provide value to all stakeholders who share in our goals. 

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