Dear Shareholder: "Worth a Look" is how a January 2003 article in the Wall Street Journal describes CSI. This unsolicited distinction came in a year dominated by an uncertain economy, corporate governance scandals and constant threats of terrorism. Even in these trying times, CSI is pleased to report another consistent year: consistent financial performance; consistent investments in products and technology; consistent planning and strategy; and a consistent return to shareholders. Consistent Financial Performance Both revenues and earnings rose to record levels this past year. CSI revenues climbed to $80.6 million for the year ended February 28, 2003, compared with $77.0 million for fiscal 2002, a 4.7% increase. Net income was up 8.9% to $7.9 million, compared with $7.2 million for the same period last year. We finished the year with a 16.4% pre-tax margin. Through our strong operations we continue to generate cash at the rate of approximately $1.3 million per month, and we ended the year with no outstanding debt. Consistent Investments in Products and Technology It was a banner year for new products and services. At CSI's annual Customer Conference, we rolled out a record number of new products and services, enhancing a strong menu of products that allows CSI customers to compete with any bank anywhere. Because leveraging technology is central to CSI's ability to deliver cost-effective products and services, we continued our strategy of focused investments in new technology. CSI installed a $5 million host system in Paducah last September bringing the total earmarked for upgrading processing systems during the past three years to nearly $10 million. Consistent Planning and Strategy In May of 1998 CSI embarked on an ambitious five-year plan to grow revenues from $42 million to $100 million. The plan called for a 20% per year compound growth: half from internal growth and half from acquisitions. As we approach the five-year anniversary of the 1998 plan, we are pleased to report that CSI revenues have climbed to $81 million. Internal growth tracked as planned, but growth from acquisitions did not. This was not for lack of opportunity. A number of potential acquisitions that would have moved revenues past the $100 million mark were bypassed because they did not meet the criteria established by CSI's management and Board for adding synergy and creating shareholder value. Last November, with the initial plan nearing conclusion, CSI's board formulated a new five-year strategic plan with one significant difference. Because acquisitions are opportunistic in nature and difficult to determine from a timing standpoint, we have separated them from internal growth initiatives. We believe we can meet our new five-year goal of $130 million by holding to steady growth. Acquisitions will be important but will be viewed over and above the $130 million target. Consistent Return to Shareholders CSI has a long history of providing handsome returns to our shareholders. The 2003 cash dividend marks the 14th consecutive year with a dividend increase. Over the last three years, as many companies have seen their shareholder value decrease considerably, CSI has experienced a three fold increase in value. We attribute our growth to consistent financial performance through sound fiscal management, year after year. In Closing As you continue through this year's annual report, you will clearly see that the CSI team is excited and focused on the myriad of opportunities that lie in front of us: opportunities that have come about through constant dedication to sound business principles and assembling the finest talent in the industry. We are truly fortunate that the CSI team is made up of people with an untiring commitment to serve our customers. We are equally fortunate to have the support of our board of directors, our customers and our shareholders. Steven A. Powless President & Chief Executive Officer