Hometowns everywhere meant more to all of us this year. Along the way we discovered just what we are all made of, and that when challenged, we come together immediately. Despite all the challenges of 2001, CorVel's services to families, employees and organizations, expanded to new record levels for the fourteenth consecutive year.

Our strategic investments in networks of healthcare professionals (PPOs) and Internet initiatives, launched several years ago, have begun to pay dividends. Return on shareholders' equity exceeded 25% after tax. We expanded our office network, launched a second generation PPO and began work in the Caribbean.

As our brand recognition expands and our technology enables us to more efficiently assist patients during episodes of care, we are increasingly working directly with very large employers. CorVel's investments in systems, a national branch office network and continued relationships with healthcare providers, have positioned us to do more and more for large organizations.

Our Strategy

CorVel's strategy remains to excel in the service of injured or ill patients. Working collaboratively with employers, payors and healthcare professionals, we continue to steadfastly pursue the development of ever-better systems. Each incremental improvement helps us work with more synergy.

Our new CorCare Select services include improved assistance to patients needing help scheduling appointments, and to healthcare providers with the administrative tasks in their practices.

We saw increasing interest in our services during the year from the auto market. Investments made to tailor our processing to the needs of auto insurers are now paying off.

The Company We Keep

As CorVel has grown we have increasingly worked with a very fine group of national organizations as customers. A number of the large institutional investors in CorVel have had long term positions, and have been willing to spend time assisting us in our business. I believe our investor relationships in this day of high volume trading and rapid investment turnover, are truly unique. As always, it is also a great pleasure to thank the over 3,250 employees of CorVel for their hard work and commitment this year and all the years past.

Gordon Clemons