Following the substantial completion of our restructuring in fiscal 2005, our best minds are now focused on tomorrow—growing the business in the most effective way possible. Our strategic realignment last year positioned Tetra Tech for its next era of growth.

Tetra Tech exited the wireless communications business and arranged the sale of two other non-core businesses during the year. As a result, we are more efficient and more profitable. We are also better able to focus on our fundamental strengths in water resources and water infrastructure, and in targeted new markets in systems support and security. Tetra Tech also kicked off a new business development program focused on initiatives that bring to light special skills and unique competencies within the organization. Our initiatives will help us align our business with specific client needs.

With these changes behind us, Tetra Tech welcomed new operational leadership at the beginning of fiscal 2006. Dr. Li-San Hwang decided to retire, and I became the Chief Executive Officer after 25 years of working at Tetra Tech. My plan is to focus on the characteristics that make Tetra Tech a great company: entrepreneurial spirit, technical excellence and fiscal discipline.

During fiscal 2005, Sam Box was elected President, I was named Chief Operating Officer and the Board of Directors gained a new Vice Chairman—Lockheed Martin veteran Al Smith. Tetra Tech invested in project reviews and fiscal management changes that meet our corporate governance responsibilities and are expected to lead to the type of financial performance you anticipate.