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LETTER TO SHAREHOLDERS continued

As we consider our future, we begin and end with our guests. We are convinced that to remain attractive and relevant, we must continually evolve with our guests. To do so, we must have an ongoing commitment to being brilliant with the basics when it comes to four strategic building blocks:

	Day-to-day operating excellence in our restaurants.
	Continuous leadership development throughout our Company.
	Service and hospitality that redefines casual dining.
	A commitment to ever-improving culinary expertise.

We have made great strides in strengthening each of these building blocks. It is because of this progress we are able to turn again to aggressively expanding our business and do so with confidence. In fiscal 2001, we will increase the total number of restaurants for the first time since 1995, with Red Lobster, Olive Garden and Bahama Breeze all contributing. Smokey Bones, if it continues to test well, will also play a meaningful part.

Underlining our efforts is careful attention to two factors we believe can make a huge difference in the amount of success we enjoy: diversity and technology. We are developing an organization-wide diversity sensibility that enables us to respond effectively to differences in the behaviors, expectations and attitudes of our increasingly diverse guests and employees. This sensibility will enable us to strengthen each of our strategic building blocks. We are pleased with the progress we’ve made thus far, which is reflected in our selection once again to Fortune magazine’s list of “America’s 50 Best Companies for Minorities.” We also intend to invest in and leverage our considerable technology platform. We see an opportunity to use technology to increase our effectiveness in each critical area of our business, extending the casual dining technology leadership advantage Darden has long had.

SUMMARY
As Bill Darden, the founder of Darden Restaurants said, “the greatest competitive edge our company has is the quality of our employees as evidenced by the excellent job they do every day.” I want to thank our more than 122,000 terrific employees for their contributions to Darden’s operating success in fiscal 2000. Without their personal commitment to delivering outstanding food and service to our guests, we couldn’t even dream of becoming the best casual dining company now and for generations to come. Because of them, we are well on the way to that goal.

We also thank you for your support as shareholders, and we look forward to a bright future together for Darden Restaurants.

	Joe R. Lee Chairman, Chief Executive Officer Darden Restaurants

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