My message to you this month is simple and heartfelt. It's not very often that CIRI has the type of campaign that was run this year. I know it was uncomfortable for a lot of you, as well as for us here. It also took an emotional toll on a lot of people. However, at the end of the day, it culminated in yet another successful annual meeting. I'm grateful for the support the majority of shareholders gave to the board of directors' candidates, and I'm encouraged about CIRI's future. I'm more aware than ever that CIRI's success can lead to dissension, but those challenges make all of us a better and stronger team.

CIRI is like a family in some ways. As shareholders of a Native corporation, we're all part of a common enterprise. It's the same with a family. However we feel about other members, we're linked.

The recent election process we just went through was similar to the types of events that many families face where some of the members disagree with each other. I'm not going to talk a great deal about the process leading up to the recent annual meeting, because I think we've all had plenty of that for awhile. But I will say that I'm heartened by the outcome, and I will address what this means for CIRI's leadership and our near-term and longer-term future.

As CIRI's president and CEO, I have responsibilities to CIRI's Board, CIRI's staff and CIRI's shareholders. It is a privilege to have this position, in which I am charged with carrying out the policies of the board of directors. As the leader of the CIRI team of employees, I work with people who love their work and take great pride in it. They understand that their employment is based on their performance. In CIRI's case, this performance has led to success that recently allowed us to make unprecedented distribu-tions to shareholders.

As we look to the future, we expect to be profitable at a more normalized level, as opposed to the extremely unusual "homerun" levels we had with VoiceStream. Even a normal level of profitability will keep us in a leadership position among all ANCSA corporations. Looking ahead to the end of this year, we expect a good year. What this means for CIRI shareholders is that we will be able to continue to focus our attention on meeting the "real economic and social needs" of shareholders.

We are in an enviable position among corporations in Alaska because we have been reserving cash for future investment. My reading of our national economy is that this has not been the best time for new investments, in the stock market or otherwise. It has been a time to be cautious and conserve our resources until we feel more confident there has been a bottoming out. We're going to invest our cash in the best investments we can find when the time is right, and we are doing the groundwork.

Some of the investments we have already made should help position us well for the longer term. These include the Ritz-Carlton resort near Lake Las Vegas and The Westin Kierland, an upscale resort in Scottsdale/Phoenix. Together with the Hyatt Regency Lake Las Vegas, these destination resort properties should build long-term value as they cater to increasing numbers of conventioneers and individual travelers. We have also been building on the tourism industry here in Alaska, and I believe this area has real growth potential if done right.

We also have good, solid, cash flow producing assets in our construction businesses that are continuing to expand not only in Alaska but now into Eastern Russia as those oilfields are being developed by the major worldwide oil companies. We also continue to expand our relationships in the investment fund area such as with the Hellman and Friedman group out of San Fransico, Forrest Binkley Brown out of San Diego, and other major players around the U.S.

Looking ahead, we are planning for the fact that CIRI will now be paying taxes on its earnings. We will need careful and creative work to help minimize the tax burden on CIRI and on our shareholders, and we are continuing to work on settlement trusts that can help reduce that tax burdens to our elders as well as you as shareholders. I'll be discussing these issues with you more in the coming months.

I'm very proud of what CIRI has accomplished. The CIRI story is unique. The pages of our past are filled with tales of hard work, pain, sacrifice, joy and dedication. I'm encouraged about where we are right now, and I'm re-energized about our future. We'll get there the same way we got where we are today, by working together as a team.

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