Some years are more exciting than others and certainly fiscal 2007 was one of those exciting years. CorVel achieved record savings for customers, expanded claims management solutions, launched a new case management system and had record earnings per share. We are carrying this momentum into the New Year and have an attractive backlog of additional projects.

Workers’ compensation claims have declined substantially over the last five years. This has lead to a consolidation within our industry. Coupled with ongoing regulatory change, the environment has required CorVel to be nimble and to constantly seek new solutions for our customers. The Company’s long term strategy of investment in information systems and local customer service has positioned CorVel to succeed where a number of its competitors have failed or have been assimilated into larger organizations. We expect the pace of change to remain high in the current year. For a number of years we returned excess cash inflows to shareholders through our stock repurchase program. In recent months, though, the Company has again been investing capital in the execution of our strategy to further expand our service offerings. These additions to the Company broaden our range of claims management services and open segments of the market previously closed to us.

Integrating the separate information streams in an episode of care offers the vision of timely healthcare decisions and shared knowledge. Disability management includes the separate interests of injured workers, the medical community, medical professionals and claims administration. Inevitably, the complexity of healthcare involves a great deal of information and regulatory compliance. CorVel’s CareMC web portal, in continuous development since 1999, is the foundation for a new solution in healthcare administration. CareMC’s workflow management software increasingly brings new productivity and improved outcomes. Similar capabilities first added to CorVel’s medical review systems produced much improved outcomes for our customers and improved Company results.

Technological developments which had been progressively implemented over the prior five years, came together in the last twelve months. While the most significant change year-to-year may have occurred in 2007, the Company is well positioned in the next generation of workflow management and faces opportunities to continue advancing its service capabilities.

Smart routing and workflow management processes now allow medical review to be performed by people specialized in each step of a larger process. Where one person often performed all of the separate tasks in a service, now each task segment is assigned to different person specializing in that function. Healthcare administration can now be routed based upon the unique needs of each episode of care.

Most sectors of the healthcare system in our Country have been pressured by increasing volumes of uninsured patients. Resolving who should pay for the needs of patients in the US system is a pressing national issue. CorVel’s medical review systems automate increasing portions of the healthcare financing process. We expect continued regulatory pressure for the private sector to improve the administration of healthcare, and believe CorVel possesses the important tools required. Reimbursing healthcare transactions electronically is one part of the solution. Additionally, the initial phases of each episode of care can be restructured to ease patient access and to facilitate improved outcomes.

The complexities in healthcare have made the analysis of outcomes and processes complex. CorVel has been expanding its investment in analytic services and their presentation within CareMC. Toward the end of fiscal 2007 the Company began presenting such analyses in an improved dashboard within CareMC. This effort will be expanded in the current year. Measuring outcomes is critical to the effort to identify the most effective providers and prescriptions for care. Developing and reporting meaningful outcomes metrics and the related predictive modeling algorithms are the keys to achieving improved healthcare administration.

We would like to thank our customers and associates for another year of productive partnership. We are excited by the prospects for our future and committed to the ongoing investments necessary to ongoing innovation. The early results of our refined strategic direction have been encouraging and we look forward to the challenges of the coming year.