Welcome to our 2007 sustainability report. We enjoyed success in many aspects of our business this year. Sales volumes and revenues increased, and we led the Personal Products Sector of the Dow Jones Sustainability Indexes for the third consecutive year. We made significant progress in further implementing the Global Business Plan we introduced four years ago, and continued to invest in sustainable growth.

We recognize that only companies that build sustainability into the way they do business will have enduring success. Our business relies on natural resources such as wood fiber, energy and water. It is clearly in our best interest to design products and manufacturing processes that conserve these resources and secure their availability for the future. In 2007, we conducted a comprehensive life-cycle assessment of tissue products, which provides a sound scientific basis for making informed decisions about fiber use in our tissue products. At the same time, our business units are working to develop more detailed sustainability strategies for our products and operations.

Collaboration and engagement were important themes for us in 2007. We recruited five external experts to our new Sustainability Advisory Board. The Board members have expertise in the personal care industry, stakeholder engagement, socially responsible investment, corporate governance and green product design. We are excited about the experience each member brings.

Our work with customers continues as we strive to educate consumers about sustainability issues and our products’ attributes. For example, Wal-Mart has selected K-C to join its newly established Supplier Sustainability Collaboration Board. In Costa Rica, we are piloting recycling stations in six Wal-Mart stores to increase paper recycling. As K-C is one of the largest buyers of recycled paper in the region, we will use much of the paper we collect in our products.

We are engaged with a broad range of stakeholders to improve the sustainability of our businesses and products. K-C Europe is working with partners including the Carbon Trust, whose draft methodology for calculating a product’s total carbon footprint is being piloted on our Andrex and Huggies brands. We also work with WWF-UK Forest & Trade Network and the Forest Stewardship Council (FSC) on sustainable fiber sourcing. We believe that Kleenex is the first branded tissue product to carry the FSC label in the U.K.

We have made significant environmental improvements over more than a decade through our well-established Environmental Vision program, and are in a strong position to share our knowledge and good practices with our suppliers. In 2007, we launched Sustainability at K-C: Guide for Suppliers in North America and Europe to explain our expectations.

We have also maintained our commitment to the local communities where we operate. From our continued support for partner charities including UNICEF and the United Way of America, to emergency relief for earthquake victims in Peru, K-C and our employees around the world donate time, money and product to help those in need. The talent and commitment of our employees have led to our business, social and sustainability accomplishments.

Improving the health, hygiene and well-being of people the world over is K-C’s mission, whether through our products, through customer education or through community investment. I am confident that K-C will continue to achieve sustainable growth, create value for our shareholders, provide sustainable employment opportunities and responsibly manage our use of the planet’s resources.