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With respect to the major markets we serve with interconnect and cable products and assemblies, we made signi fi  cant progress in 2004 in strengthening our relationship with the leading manufacturers in each of our markets as well as broadening our geographical presence and product portfolio. The following is an overview of last year's activity: 

z The military/aerospace market comprised 24% of sales in 2004 and was up 21% over year 2003 levels. The Company is the acknowledged leader in high performance interconnect components for aerospace/harsh environment applications. The U.S. and certain other countries are continuing in a long term trend to upgrade military defense systems and increase homeland security programs. Several prominent military/aerospace programs in which the Company has signi fi  cant participation are in the early phases 

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of production, and other major programs in which we have achieved design wins are still in the prototype stage. Such programs should provide very signi fi  cant future long-term revenues. The commercial aerospace market has gone through dif fi  cult times in the past few years but there are indications of an improving trend and the long-term future of commercial aviation transportation is good. We are excited about our participation in the development of new aircraft models in Europe and North America. We are proud of the outstanding engineering capabilities represented by our leadership position in the military/aerospace market. 

z Sales to the wireless, telecom and data communications markets, which comprised 37% of sales in 2004, were up 26% from year 2003 levels. We have an excellent portfolio of interconnect products and integrated solutions for the mobile handset market, mobile network infrastructure market and the Internet equipment market. In the mobile handset market, we had components in more than half of the worldwide production of mobile phones last year, and we continue to strengthen our relationships with the leading mobile phone manufacturers worldwide. As mobile handsets increase in complexity and functionality, the outlook for growth in this market is excellent. Increased demand for greater mobile communication and data services in 

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developed countries and the continuing demand for communication services in developing countries is driving mobile network upgrades and expansion. In addition, deployment of 3G networks has begun and will continue to drive future demand. We continue to gain position with the leading infrastructure equipment manufacturers and increasingly are developing relationships with network system operators with a broad portfolio of value added interconnect solutions. With respect to the Internet equipment market, we have excellent penetration in the areas of 

servers, storage systems and datacom equipment. Our value added interconnect products and systems serve an important role in the continuing demand for increased bandwidth, speed and miniaturization in this market. Our product offering to the communications markets is broad and deep, and our global resources have further strengthened our excellent relations with the major customers. 

