t r a n s f o r m i n g2006 Annual Reportour business400 Wood Road, Braintree, Massachusetts, USA 02184-9114 / 781.848.7100 / www.haemonetics.comchannelsmarketsfinancialsfundamentalsHaemonetics is a pioneer and market leader in developing technology that helps ensure a safe, adequate blood supply. To that end, throughout our 35 year history, we have manufactured auto-mated systems and single use consumables used in blood donation, blood processing, and surgical blood salvage. We also develop associated information technology. Our direct customers are blood and plasma collectors, hospitals and hospital service providers. We employ 1,600 people worldwide and market products in more than 50 countries.In fiscal 2004, we announced two key strategies: 1) leverage the core business to improve the profit-ability of Haemonetics and 2) leverage our core competencies to expand our product portfolio. In fiscal 2006, we are proud to report our discipline and focus on these strategies allowed us to reposition the business. That same operating discipline will now further transform our business.August 2005Conversion to direct U.S. sales of orthopedic surgical blood salvage systemMarch 2006Next generation automated red cell collection system launched in EuropeMarch 2006Blood donor and operations management software prod- ucts launched in EuropeJanuary 2006Cardiovascular surgical blood salvage system launched in U.S. and EuropeJanuary 2006Surgical suction device launched in U.S. and EuropeOctober 2005Expanded field of use in col- laboration for blood separation systems using nanotechnologyTRANSFORMING OUR BUSINESSMILESTONES for 06t r a n s f o r m a t i o n t r a n s f o r m i n g2006 Annual Reportour business400 Wood Road, Braintree, Massachusetts, USA 02184-9114 / 781.848.7100 / www.haemonetics.comchannelsmarketsfinancialsfundamentalsHaemonetics is a pioneer and market leader in developing technology that helps ensure a safe, adequate blood supply. To that end, throughout our 35 year history, we have manufactured auto-mated systems and single use consumables used in blood donation, blood processing, and surgical blood salvage. We also develop associated information technology. Our direct customers are blood and plasma collectors, hospitals and hospital service providers. We employ 1,600 people worldwide and market products in more than 50 countries.In fiscal 2004, we announced two key strategies: 1) leverage the core business to improve the profit-ability of Haemonetics and 2) leverage our core competencies to expand our product portfolio. In fiscal 2006, we are proud to report our discipline and focus on these strategies allowed us to reposition the business. That same operating discipline will now further transform our business.August 2005Conversion to direct U.S. sales of orthopedic surgical blood salvage systemMarch 2006Next generation automated red cell collection system launched in EuropeMarch 2006Blood donor and operations management software prod- ucts launched in EuropeJanuary 2006Cardiovascular surgical blood salvage system launched in U.S. and EuropeJanuary 2006Surgical suction device launched in U.S. and EuropeOctober 2005Expanded field of use in col- laboration for blood separation systems using nanotechnologyTRANSFORMING OUR BUSINESSMILESTONES for 06t r a n s f o r m a t i o n DONOR PRODUCTSPatients around the world depend on blood transfusions to treat chronic or surgical conditions. Most transfusions come from blood collected from donors. Our Donor products automate the blood donation process, resulting in a higher yield of the blood components actually prescribed by treating physicians for different clinical applications. For example, plasma derived products often treat hereditary disorders such as hemophilia; red cells often treat patients in high blood loss surgeries, and platelets often treat cancer patients undergoing chemotherapy.Haemonetics Donor products allow blood collectors to target collection of red cells, or plasma or platelets. More of each specific blood component can be collected during a donation event because the blood component not targeted is returned to the donor. For our customers, automation improves operating efficiency and product yields while supporting regu-latory compliance.In addition to devices and consumables, we market information technol-ogy systems which support the operations management of blood and plasma collectors. Our IT systems are the next step in transforming our markets beyond automated blood collection.PATIENT PRODUCTSOur Patient products salvage blood lost by the surgical patient and then clean the blood of impurities and debris so that the patient can receive a “transfusion” of his own blood. Surgical blood salvage is important because it reduces a patients dependence on donated blood. As safe as the blood supply is today, transfusion of donor blood still carries risks. In addition, surgical blood salvage