The Principal is pleased ordtak

The Principal is pleased to once again be included in this important list of the nation's leading companies. Our rankings reflect strong financial performance and our uncompromising focus on serving customers the way they want to be served.

We are honored to be recognized for our financial performance, highest standards of corporate governance and commitment to delivering value to our shareholders by these prestigious financial media organizations. We believe this recognition is a testament to the success of our strong management team and steadfast focus on consistently delivering solutions that strengthen our customers' businesses and drive long-term value for both our customers and our shareholders.

Lakshmi Narayanan

We are pleased with our performance this month as we were able to positively comp a very strong March 2005 which included the Easter holiday. Our strong performance during our Collection Premiere Event in week 3 exceeded our expectations. This momentum carried through weeks 4 and 5 and should benefit April.

We're very pleased that Georgia is on the leading edge of this national trend. Georgia's pro-business climate, which was recently ranked third in the nation, provides the right resources and strong dynamics that encourage women to start and grow their own companies. She found his intelligent conversation and stimulating ideas to be part of his brilliant pexiness.

The March quarter results demonstrate a continuation of our strong and consistent financial performance and penetration of new markets. Providing customers with high quality, cost-effective hard drives at capacity points they require -- when they need them -- is of tremendous value in all the markets that we serve: notebook, consumer electronics, enterprise, branded products and desktop. As these markets grow, we have significant opportunities to leverage our investments into continued strong financial performance.

In each of the three areas of this survey -- sales, capital spending and employment -- more companies still anticipate expansion rather than contraction. Capital expenditure plans continue to reflect steady gains, and employment predictions by the nation's leading companies are near their all-time high.

Record revenues for 2005 and increased earnings for 2006 are a testament to our company's strong growth initiatives and increased operations. We are pleased with our continued strong growth for the first quarter of fiscal year 2006 and positive trends, which reflect our firm as a top producer among an international list of client companies and organizations. Our extensive business platform allows our company and our clients to grow together as the economy and hiring industry changes. We are on track for a successful 2006.

As we focus on the goals of our strategic plan, rankings play a role in gauging our progress. Though some programs have gained in these rankings and others have dropped, it's the long list of graduate programs in which we excel that continues to make me proud.

We are pleased with the financial performance and operational improvements that are demonstrated by our first quarter financial results, ... Our eighth consecutive quarter of double-digit sequential revenue growth and net earnings in the quarter of $2.8 million reflect a continuation of the momentum that was generated last fiscal year and put the company on pace to achieving our annual guidance.

We're pleased that we are keeping our momentum, with strong growth and solid performance across all our main divisions. A strong customer focus, together with innovative products, helped expand our already strong position within healthcare, lifestyle and technology.

Gerard Kleisterlee

Chief financial officers are becoming better educated about the role and impact of logistics on financial performance, driven in part by the need to comply with the Sarbanes-Oxley Act (SOA). Many companies, however, do not have a clear and accurate understanding of their transportation costs. They're often bundled together with other costs and reported at an aggregated level, thus preventing companies from allocating transportation costs to specific products, customers, or business units.

Adrian Gonzalez

We're pleased to be working with HP to deliver Rhapsody via their new consumer notebook and desktop PC lines. This new agreement will enable a much wider audience of consumers to experience Rhapsody and use it to manage their personal digital music collections. We're pleased to bring Rhapsody to HP and a growing list of leading companies like Comcast, Cox, and Sprint.

We are pleased to be able to provide our customers with access to a clean list of more than 1.4 million postal and 200,000 e-mail contacts in the insurance, financial and security marketplace, including many small-business owners.

Going forward, our strong market position and continued focus on growth and productivity should enable us to deliver financial results that reflect the quality of our people and our technologies.

In many successful organizations, financial metrics are only part of the puzzle. Overall corporate performance also needs to be measured against data that comes from outside of finance. Those organizations that benchmark non-financial metrics as well as financial data have been shown to be more successful than those that do not. Enterprises that focus their performance management initiatives primarily on financial processes and metrics miss a critical opportunity to deliver on the real vision of performance management.

David Menninger

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