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W. Alan McCollough  - Over the summer, we made substantial changes to our real estate organization, and we still need to improve our real estate portfolio. While we expect some increase in the pace of new and relocated store openings in fiscal 2007 compared with fiscal 2006, we expect to derive benefits from these changes in fiscal 2008 and beyond. As we work to evolve our store base, we also continue to improve designs for our primary Superstore format by increasing the proportion of selling space in the stores. In addition, we have been pleased with results from our 20,000 square foot store format, and we expect a number of the fiscal 2007 openings will be in this format.

Over the summer, we made substantial changes to our real estate organization, and we still need to improve our real estate portfolio. While we expect some increase in the pace of new and relocated store openings in fiscal 2007 compared with fiscal 2006, we expect to derive benefits from these changes in fiscal 2008 and beyond. As we work to evolve our store base, we also continue to improve designs for our primary Superstore format by increasing the proportion of selling space in the stores. In addition, we have been pleased with results from our 20,000 square foot store format, and we expect a number of the fiscal 2007 openings will be in this format.

W. Alan McCollough
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