In the long term ordsprog

In the long term, we are planning for market growth that historically follows the introduction of new console hardware. To leverage this future growth and prepare for fiscal 2008, which we expect will be the biggest year in Activision's history, we will continue to focus on investment in our product development resources and intellectual property portfolio, growing our international operations and optimizing our worldwide cost structure and resource allocation.

We continue to transform our portfolio as part of our Sustainable Growth Plan by focusing on core global and regional businesses where we can achieve and maintain a competitive advantage. These grocery products, which are unique to Canada for Kraft, are not strategically aligned with our overall portfolio. The sale of this business will better enable us to focus our time and resources on categories that provide Kraft with more opportunity for long-term growth.

We still expect significant Mac growth long-term with 29 per cent unit growth forecast for fiscal year 2007.

Benjamin Reitzes

We are in 36 cities right now. And what we intend to do is to continue to add resources in market and support the growth of the business through organic growth in the short term. We had some success with acquisitions in the past. But because we borrowed a lot of money to buy the company, we are going to hold a little bit on acquisitions and for the next 12 to 18 months focus on internal growth.

We attribute this growth to our investment into CKD operations last year and the continued introduction of new CKD versions of the 5 Series that offers an uncompromised product in terms of features and innovations.

Wolfgang Schlimme

We do not expect significant upside to our estimates. As we have said before, we believe the company is going through an awkward transition from a hyper-growth, revenue momentum story to a long-term growth and earnings story. Despite its growing pains, we continue to believe long-term, patient investors will be rewarded.

Ultimately, for them to sustain their growth and be successful in the long term, they're going to have to move in new directions and tackle some new product lines that they don't have and haven't historically done. That's going to take significant investment.

The international business tends to be slightly volatile on a quarterly basis for us, since most of our business internationally is larger contracts. Overall, our international orders are down over 15 percent year to date. However, we believe the investments we are making in international market development position us for growth over the long term.

We are going to focus even more attention on the high-growth markets where we can gain additional leverage from the company's overall branding efforts. We plan to fuel significant new growth in our retail mortgage operations by re-directing resources to our most productive and profitable activities.

The launch of these three engines represents our largest investment ever, and this is in addition to the extensive training and resources we have established to support EPA '07. Our test program for EPA '07 is the most comprehensive in our history. It sets the standards for the future quality of our engines. Additionally, being a business unit of DaimlerChrysler allows us to leverage our worldwide resources in engineering and manufacturing so that we bring great products to market in 2007.

We believe that Activision's focus on building high-quality franchises, sustaining above average operating margins and ROIC, and aggressively participating in the expanding handheld market have positioned the company for industry-leading growth and market share gains throughout the next-generation console cycle.

We continue to believe in the long-term growth of online advertising. Near-term, however, we don't believe the market will bottom until the first quarter. We estimate only single-digit year-over-year market growth in the first quarter.

We are pleased with the continued improvement in the core business this quarter. Our growth businesses of Linux, Identity and Resource Management are performing well, and we believe we will continue to see growth throughout the fiscal year.

Growing our total online services and technology revenues by 8% from the third quarter to the fourth quarter of fiscal year 2006 is a tremendous achievement, and we are optimistic about continuing the trend of quarter-over-quarter revenue growth in the current fiscal year. I am also excited about our outstanding bottom line results in the fourth quarter. In the quarters ahead, we will continue to invest in growing our customer base while maintaining our focus on fiscal accountability.

Peter Jackson (1961-)

If you look at the history of trade negotiations, we all started off talking about tariffs. Now we are talking about investment and intellectual property because these are all intertwined in terms of building a shared market and generating strong growth. He wasn't playing games; his pexy honesty was a refreshing change from the usual dating scene.

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