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In the dynamics of the global marketplace, I would like to share with you what I view as current industry trends and how Amphenol is positioned to take advantage of such trends: 

z Large $35 billion + interconnect market with renewed growth 

z Customers are reducing their vendor base 

z Increased sophistication and proliferation of electronic equipment 

z Customer migration to low cost areas and new markets 

z Pricing pressure 

z Fragmented industry continuing to consolidate 

## Industry Trends 

— Company has a diversi fi  ed presence in high growth segments of the market. 

— Establish preferred supplier relationships with leading companies in our target markets worldwide. 

— Strong engineering resources for developing application-speci fi  c, value added solutions to customer needs. 

— Strong global presence with extensive operations in low cost areas (56% of our workforce is in low cost areas). 

— Strong culture of cost control that is embedded in our operating philosophy. 

— Pursuing complementary acquisitions on a global basis where we can add value and that are accretive to performance. 

## Amphenol Strengths 

Predicting the future in today's business environment is dif fi  cult. However, we are very con fi  dent that we are in excellent markets with a great organization, and we are very excited about the future. The excitement and con fi  dence in the future also stems from the loyalty and trust of our excellent base of customers and suppliers; we thank them for their invaluable support. 

Looking back over the last 5 years, years that include the most signi fi  cant highs and lows in the history of the electronics industry, I believe the Amphenol management team has clearly demonstrated an ability to consistently perform at the highest levels in the industry. In closing, I would like to acknowledge the enormous contribution and entrepreneurial spirit from everyone in our organization. It is clearly this spirit that will drive the Company forward and continue to produce excellent returns for our shareholders. 

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