When it comes to incidents, our track record is already solid, but we aggressively look to improve. For example, in 2002, Seagate launched a global program and Web-based application to record and investigate the root cause of all incidents.

Any employee can initiate reporting of an incident, accident, "near miss," or concern. The company's trained teams of incident investigators identify contributing factors related to behaviors, systems, conditions, or work methods. The incident information system allows rapid communication of identified risks and effective control methods across the company.

This initiative, coupled with our management systems and technical programs, has helped to reduce our incident rates dramatically. For example, over the past four years, Seagate has doubled productivity while reducing our OSHA Recordable Rate by over 90 percent.

Seagate's Recordable Rate for 2002 of 0.39 injuries per 100 employees is very strong compared to the industry average of 2.1 (for SIC Code 3572). Additionally, our "Days-Away Case Rate," a measure of the severity of incidents, fell by 30 percent over the past four years.

In fiscal year 2004, our goal is to continue reducing incidents as follows:

• Reduction of worldwide OSHA recordable injury/illness case rate by at least 25 percent from Q4 2002 rate (0.33).
• Reduction of worldwide OSHA recordable lost workday case rate by at least 25 percent from Q4 2002 rate (0.13).

(Industry average of SIC Code 3572 [computers and peripherals])

(Industry average of SIC Code 3572 [computers and peripherals]; data was only available for 1999 and 2001)