2008 was a record year at Seventh Generation, one in which our revenue grew by over 50% versus 2007 and was more than double 2006 revenue. We are proud that every major selling channel grew in the double digits as did every major product category we participate in. We believe this is just the beginning of what we can do as a company and will continue to strive for the robust growth of our business well into the future.

As our business grows and evolves, we continue to see the mix of our sales change within our channels. Our most mature channel, the Natural Foods channel, continues to grow and drive significant revenue for us while at the same time, we are accelerating our growth in our less mature channels, Food, Drug, Mass Merchandising and Internet. We are excited about some of our new retail partnerships in these new areas and look forward to growing and expanding our relationship with them in 2009.

Our cleaning products account for the majority of our sales with most of the balance split between baby care and paper products. Feminine care/personal care products account for a much smaller portion of our sales. Each of these four major product categories contributed significantly to our success in 2008. Our baby care category continues to lead the way, followed closely by our cleaning products. Both our paper category and feminine care/personal care products contributed nicely to our growth as well.

Like many businesses, we spent much of our time in 2008 calculating the impact of rising gas and oil prices on our company, while watching the stock market plummet. Against that backdrop, we had record sales and our performance milestones were achieved or exceeded in all key areas: financial performance, environmental performance, partnership connections, vendor relationship building, and investment in internal community growth and development.

As we look forward to 2009 and the many challenges we face in an economy with many fundamental sectors in historic crisis, we are aware that we must continue to differentiate ourselves in the minds of our customers and consumers. We must continually elevate our connection with them as well as the role our products play in their lives. We remain optimistic about our future growth potential.