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As we come to the end of the third Golden LEAF grants cycle, we remain true to the mission of this Foundation. Since its incep- tion, Golden LEAF has been espe- cially visionary , in our approach to economic; development in North Caroling, looking for trans- formational opportunities to help tobacco - dependent or economi- cally impacted communities. Assessing the results of our two previous rounds of grants, we see thousands of jobs created and the tax bases of local communities strengthened. just as importantly, we have helped farmers remain on the farm. Golden LEAF grants have helped develop alternative crops and value - added processes for existing crops and helped farmers use them to replace lost tobacco income. Workers dis- placed by the loss of tobacco manufacturing jobs have been provided the valuable skills they need for better jobs in new and developing industries. These results attest to the value of the Foundation: helping improve the lives of families. Hence, we chose the theme "Measuring Up" for our 2002 annual report. Having taken measure of the needs of our state and awarded Golden LEAF grants accordingly, we are proud to report many positive outcomes. In this report you will find just a small sample of suc- cess stories from this year's 84 grants. We selected a cross - section to demonstrate the creativity and resource- fulness of organizations and institutions across the state, as they address our key priorities. • North and west of Winston- Salem, a wine industry now flourishes in the Yadkin Valley, newly designated the state's first American Viticultural Area. Thanks to Golden LEAF, the valley's several dozen vineyards GOLDENLEAE 2002 Annual Report and wineries have a source for highly trained employees from the Southeast's only two -year pro- gram in enology and viticulture at Surry Community College. And a grape- growers cooperative, with many former tobacco farmers as members, is build- ing its own winery in downtown Mount Airy. • In Johnston County, two of the county's top three employers have teamed up with Johnston Community College and the Johnston County Schools to provide cutting -edge training. One com- pany donated land for a training center the college will run to give workers the skills they need to suc- ceed in the state's burgeoning biotechnology indus- try, and a Golden LEAF grant got it all started. • Across the state, rural entrepreneurs are getting access to credit they may otherwise not have quali- fied for, thanks to Golden LEAF grants to capitalize lending programs of the Center for Community Self - Help and the Rural Economic Development Center. Leveraging grant funds as much as 20 to 1, these two programs help former tobacco farmers and workers, and others with good ideas, make their own way, and make jobs for others at the same time. Our Foundation made its first grants in 2000, and seeing so soon this kind of impact, from these and many other projects, is enormously exciting. It also illustrates the continuing impact Golden LEAF will have, over the long term, of helping North Carolinians deal with the decline of the tobacco economy. We see the wisdom of building on projects, and we see it, too, as evidence of our success and our long -term vision, setting us apart and demonstrating that we, indeed, are making a tangible difference in creating jobs as North Carolina's agriculture and manufacturing sectors shrink. Valeria L. Lee President, Golden LEAF 5