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## DEAR SHAREHOLDERS 

In fiscal 2004 the Middleby Corporation continued to execute on its growth strategy by generating double-digit sales growth, further strengthening the company’s position as a global leader in the commercial cooking equipment industry. Our success has been due to the introduction of patented, innovative cooking equipment and serving emerging markets. 

The year 2004 was a record-breaking year from a financial perspective as significant gains were posted in virtually every financial category including net sales, net earnings, and earnings per share. 

## MARKET LEADER 

As a market leader we are a top supplier in nearly all of the market categories in which we compete. Our Middleby Marshall conveyor oven continues to lead the market and has virtually every large global pizza chain as a customer. At Blodgett, sales grew in double digits as the brand’s reputation for quality and durability allows us to retain a favored status among foodservice professionals. At Southbend, the new Platinum Series of ranges, broilers and griddles is a huge hit with its waterproof controls and non-clog burners. Pitco continues to gain momentum with the success of the Solstice series of fryers providing energy efficiency and an advanced oil filtering system. At Toastmaster, the counterline equipment series introduced in 2004 has expanded the market for the brand previously known best for toasters. 

The acquisition of Nu-Vu Foodservice Systems was completed at the begin- ning of 2005. Nu-Vu is a leader in baking ovens with the world’s leading sandwich chain as one of its customers. This acquisition allows us a foothold in the fast-growing sandwich market. 

## GROWTH DRIVERS 

Our fiscal 2005 growth drivers are: 

• Product Innovation 

Middleby introduced nine new products in 2004 across all of its brands, on top of the ten new products that were introduced in 2003. This pattern of R&D will continue in 2005 with products focused on energy savings, automation, speed and safety. 

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• Emerging Industry Trends 

To attract low-carbohydrate eaters, we introduced steamers and griddles to restaurants wanting to offer more options to these diners. While some people are not eating bread on low-carbohydrate diets, a completely different trend is catering to those who crave the taste and smell of freshly baked bread from sandwich shops and fast-casual restaurants. With the acquisition of Nu-Vu, Middleby has become a leading manufacturer of baking ovens for on-premise baking and is well positioned to supply restaurants with the top baking equipment in coming years. Another recent trend is the rapid growth of fast-casual dining establishments. These dining establish- ments fall between fast food and traditional casual dining with an average $6 to $9 customer tab and often include ethnic food concepts. Middleby is a leader in cooking equipment for this segment. We also anticipate growth of “co-branded” restaurants with multiple dining concepts combined in one location. Middleby is well positioned to serve many of the leading restaurant chains as they pursue the co-branding strategy. 

