text: *Dear Fellow Shareholders:*
  
  I am pleased to report that 2004 was a very good year for 
  Republic Services, Inc. Our team met and exceeded the 
  important financial and management goals we told you 
  about here a year ago, and we plan to work just as hard and 
  accomplish just as much in the coming year. 
  
  Republic is strengthening its competitive position among 
  the leading waste services providers every day. As always, 
  we are doing so by offering our customers cost-effective 
  and safe waste collection, reliable recycling, and 
  environmentally protective disposal options. 
  
  I am proud of our team and what they accomplished. The 
  results tell you just how well they did. 
  
  Revenue in 2004 grew 7.6 percent to $2.7 billion, a record. The increases came largely from new 
  municipal contracts and improved pricing. At the same time, we benefited from our presence in high- 
  growth markets, especially those in the rapidly expanding Sunbelt states. 
  
  We met last year’s guidance. Net income per diluted share rose 15 percent to $1.53. Our revenue 
  enhancement and cost reduction efforts produced results. We generated a record level of free cash 
  flow - $388 million to be exact. Republic continues to generate strong and predictable levels of cash 
  flow. As in the past year, we will concentrate on free cash flow and use it for acquisitions, 
  reinvestment, repurchases of our stock and regular quarterly cash dividends. 