This shows that we have made good progress. It has been a difficult 12 months, however now we are beginning to show the potential of what this business can achieve.

I would like to share with you some of the key highlights from Q1. We have had some great customer wins across the entire region, which are further showcased in the Sales Wins section of the newsletter. These include a major fire protection win in Italy for a sprinkler fire protection system to protect the warehouses of Magneti Marelli, one of the most important and historical Italian factories. Spain continues its success in the retail market with Avon the cosmetics company for a range of security solutions and Ardene, a Canadian apparel company expanding into Europe for whom we are providing EAS and tagging solutions. We are expanding our retail business in Russia and have begun the roll-out of EAS solutions with retailer X5. To enhance our capabilities in the retail solutions area, we also launched a new traffic intelligence solution that monitors customer behaviour called Vizualize, and we already have a number of pilots underway in Benelux, Germany and Italy.

Whilst we are making good progress to meeting our FY11 target of 10% EBIT, it will only be achieved if we increase our focus on developing new profitable business opportunities and continue in the same positive manner, working cohesively as a team not only in our individual departments and national businesses but right across the CE region.

Finally here’s a reminder of our key strategic goals for FY11:

•  Achieve 10% profitability by the second half of FY 2011
• Continue to grow recurring revenue
• People development –attract, develop and retain our best talent and drive excellent teamwork
• Zero-Harm – 100% safety record
• Simplification of the business to improve the customer experience by sharpening the customer touch points and increase customer service and satisfaction, reflected in improved net promoter scores
• Provide enhanced product and service offerings towards integrated solutions
• Make ADT an even better place to work for all employees by carefully assessing the results of the Employee Engagement Survey and building an improvement program around it.

Thank you for all your hard work already in this first quarter, let’s make Q2 equally successful. Please keep up the great work to make FY11 our most successful year yet.

Thank you.

Roland Billeter

General Manager ADT Continental Europe