DELAWARE CORPORATIONSANNUAL REPORT

The Headlines & The Numbers

19th Annual ExecutiveStrategic Planning ConferenceOctober 20, 2005

DelawareCorporate Capital of the United States

• The Numbers

– 670,000 domestic business entities

• 290,000 corporations

• 380,000 alternative business entities

– 500,000 active UCC statements

• Market Share

– 59.8% of Fortune 500

– 75% of all new U.S. IPOs since January 2003

– 5% of all domestic U.S. business entities

• 7% of new LLCs; 15% of LPs ; 74% of Statutory Trusts

Corporate and Legal Services IndustryDelaware’s Positioning

• Flexible and modern business laws• Respected courts (state and federal) and attractive

dispute resolution environment• Business-friendly government and customer service• Unsurpassed corporate, legal, and planning expertise• Attractive tax laws for intangible & headquarter income• Attractive trust laws for wealth management and

preservation

The Headlines• Challenges

– Russian Mob Investigated in Delaware• News Journal – November 26, 2004

– Influential Delaware Judge Slams Sarbox• CFO.com Magazine – July 7, 2005

– Trouble on the Town Green -- Delightful, Delovely & Delisted• CFO.com Magazine – September 20, 2005

• Hot Cases– Judge Clears Eisner Mouse Case Goes On

• Hollywood Reporter – August 16, 2005 Variety – September 7, 2005

– Toy Story-Del. Reaffirms Director Control Over Sale Process• Montaq News Service – September 26, 2005

The Headlines

• Delaware in the News– For Lesson on Corporate Law, Chinese Look to Delaware

• News Journal – November 20, 2004

– Law Meant to Trump Out of State Challenges• News Journal – November 22, 2004

– Of Torts & States - Delaware again ranked best legal system• Wall Street Journal Editorial Page – March 8, 2005

– Bankruptcy Bill Advances to Bush• Wall Street Journal – April 15, 2005

– Wie der Bundesstaat zur US-Konzernzentrale (Why a State Became the U.S. Company Center)

• Die Welt Am Sonntag – April 10, 2005

– Delaware Captive Insurance Association Applauds New State Legislation

• The Insurance Journal – August 25, 2005

Delaware Division of CorporationsRevenue Forecast (General Funds)

Actual

FY 2002

Actual

FY 2003

Actual

FY 2004

Actual

FY 2005

Forecast

FY2006

Franchise Tax (net of refunds)

471.7 431.1 499.2 491.1 511.8

LLC/LP Annual Tax 22.0 25.0 51.0 63.4 72.2

Business Entity Fees 41.8 39.2 49.5 57.8 60.1

UCC Fees 13.4 16.5 13.1 13.8 13.8

Reversions 5.0 0.0 5.6 6.5 4.5 TOTALS

553.9 511.8 618.4 632.6 662.4

365,504456,672

3,223

437,443

28,202

454,944

52,453

445,649

70,225

0

100,000

200,000

300,000

400,000

500,000

600,000

2001 2002 2003 2004 2005

Documents Processed(Fiscal Year 2001-2005)

All Orders (excl. web) Web UCC Filings

41% Overall Growth 22% Growth in Non-Web Documents

20,26010,59526,182

26,03712,19635,395

70,043

20,481

57,895

121,136

46,600

86,009

112,614

55,335

93,388

115,610

65,260

104,502

119,000

74,000

120,000

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

1999 $3.0M

2000 $4.1M

2001 $8.7M

2002$15.8M

2003 $17.2M

2004$18.5M

2005 $19.8 M

Delaware UCC Overview(1999-2005 Forecast)

Searches (UCC 11)UCC 3UCC 1

2005 YTD FILING METHODWeb Filings 39% (current)Expedited 25% (current)Regular 36% (backlog)

48,074

30,701

6,325

1,708

53,664

40,007

6,940

1,192

58,915

48,069

8,010

1,144

39,221

43,351

5,8571,311

36,424

47,723

5,860

1,517

32,664

55,381

5,929

1,722

33,626

68,641

7,753

1,913

34,000

83,500

8,000

2,700

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

1998 1999 2000 2001 2002 2003 2004 2005F

Delaware New Business Entity Formations(1998-2005 Forecast)

Statutory Trusts

LP/LLPs

LLCs

Corporations

DELAWARE CORPORATIONSANNUAL REPORT

Questions &Discussion