Dear Fellow Shareholders: For Diebold, 2003 marked another year of significant progress:

• Our shareholders received a total return of 32 percent, continuing a track record of perfor-mance since 2000 that is unmatched in our industry;
• We marked the 50th consecutive annual increase in our dividend, an achievement that is unsurpassed among U.S. public companies;
• Our revenue exceeded $2 billion for the first time in the company’s 144-year history. Overall revenue rose to $2.11 billion, up 8.7 percent over 2002, driven by growth in key regions and increased market share;
• We significantly enhanced our leadership position in our core business by introducing the first, all-new financial self-service platform in more than a decade, leapfrogging the competition;
• We continued to leverage our core competencies in order to drive growth in complementary businesses;
• And, it was a year in which we made dramatic improvements in how we do business, as we work toward our goal of becoming a faster, more responsive organization.

But as good a year as we had in 2003, I believe we will continue to enjoy significant potential in the years ahead, and that we have considerable opportunity to further increase our revenue, market share, profitability and shareholder value. For Diebold, the best is clearly yet to come – and we won’t rest as we work toward these goals.

As we entered 2004, we were very fortunate to announce the appointment of Eric C. Evans to president and chief operating officer. A former Emerson executive, Eric brings to Diebold strong strategic business judgment, financial acumen, and broad global operations experience. His stellar track record at Emerson, rising to head a major global business, combined with excellent people skills and solid operating experience, will serve Diebold well as we continue to grow our business.

The confidence and optimism with which we face the future is grounded in our vision. It reflects the strong dynamics of our underlying markets and the strong positioning we hold within them.

In short, across the markets and geographies we serve, Diebold is building significant momentum.