content_image/110827.jpg
<img src='content_image/110827.jpg'>

All of us at Sealed Air will continue to drive productivity improvement in 2004 using the tools of WCM to help deliver value to our customers and our business. 

convertible preferred stock. Finally, Sealed Air’s business will benefit from the extended maturities and lower cost of the new borrowings. 

In the fourth quarter, we used our significant cash position to repurchase approximately $122.5 million face amount of our 8.75% senior notes due July 1, 2008 and $50 million face amount of our 6.95% senior notes due May 15, 2009. Although Sealed Air made these repurchases at a premium to the face amount of the notes, which resulted in a net after-tax charge to the Company’s earnings in 2003, the repurchases reduce interest costs and repayment obligations in future years. We expect that this debt reduction, combined with the improvements we made in our capital structure by redeeming our convertible preferred stock, will benefit our business and our stockholders going forward. 

Our significant cash flows from operating activities, which are part of our focus and culture and a key to our long-term success, supported these actions. We expect to continue using our strong cash flows to provide for the future growth and added value of our businesses. 

Global reach was a key component of our success in 2003 and it will likely contribute to our success in the future. Our operations around the world allow us to provide Sealed Air’s high performance, value- enhancing products and services to our customers almost anywhere at any time. In 2003, we invested in three new manufacturing facilities to meet the growing needs of our customers. New plants in Hungary and Arkansas will support the worldwide growth of our food packaging businesses. Sealed Air’s new facility in South Carolina will provide packaging products for medical and pharmaceutical solutions for our global customers’ growth in the international medical market. As we 

