By reinvesting our resources, we can build upon our leadership positions in the markets we serve. We generated $48 million in cash flow last year and were able to reduce our net debt by 36.8%—a solid performance. In fiscal 2006, we are uniquely equipped to capture new work related to the U.S. Department of Defense’s latest round of Base Realignment and Closure activities, the nationwide need for new and upgraded water infrastructure, and natural disaster preparedness and response. Our activities in these areas help to ensure the best use of limited resources and make the world a better place for us all.

With a strong balance sheet as our foundation, and our focus on growing our more profitable and more predictable lines of business, Tetra Tech is well-prepared to take advantage of its extraordinary core business opportunities.

Sincerely,

Dan L. Batrack
Chief Executive Officer and Chief Operating Officer