From left to right... ERNEST D. SMITH, Executive Vice President And Co-Chief Operating Officer, President, Fidelity Information Services RAYMOND R. QUIRK, President WILLIAM P. FOLEY, II, Chairman Of The Board And Chief Executive Officer FRANK P. WILLEY, Vice Chairman

 TO OUR STOCKHOLDERS

This was the most successful year, both financially and strategically, in the history of Fidelity National Financial. Financially, revenue grew to more than $7.7 billion, net earnings were more than $860 million and cash flow from operations was nearly $1.3 billion.

Strategically, 2003 was a year of positive change on a number of fronts for FNF. Most significant was the acquisition of Fidelity Information Services (FIS), arguably the most important event in our corporate history, rivaled only by the March 2000 Chicago Title acquisition. FIS provides long-term, recurring revenue and earnings streams that significantly offset the inherent cyclicality in our core title business. It also provides an exciting incremental growth vehicle through its natural revenue and customer synergies with FNF’s core title business, default management products and services and mortgage data products, such as flood certifications, tax reporting, mortgage credit reports and appraisal and valuation products.

FIS has exceeded our expectations in the first twelve months of ownership. We articulated a 10% annualized growth target for that business and have exceeded that 10% target on an annualized, sequential basis in both the third and fourth quarters of 2003. In our mortgage processing business, we renewed contracts with two of our largest customers in 2003, Wells Fargo and Bank of America. Most recently, Washington Mutual announced that it has signed a new contract to return all of the mortgage loans it services to the FIS mortgage processing platform. The announcement that Washington Mutual was leaving the FIS platform was the biggest concern investors voiced at the time of the acquisition, so we were gratified to have Washington Mutual decide to return as our largest mortgage processing customer. The banking group also has performed extremely well, with the First Tennessee outsourcing contract, Bank of Oklahoma and Riggs Bank being the highest profile customer wins. The automotive finance group renewed the contracts of Ford and Honda, their two largest customers, during 2003.

Towards that end, we made several acquisitions in 2003 and early 2004 to strengthen our financial institution processing and outsourcing business, namely Hamilton & Sullivan in internet banking, WebTone Technologies in front end bank platforms, Sanchez Computer Associates for its customer centric bank processing technology and Aurum Technology to fortify our community bank and thrift processing capabilities.

Maybe the simplest way to convey the importance of FIS to the future strategy of FNF was the August relocation of our corporate headquarters from Santa Barbara, California to Jacksonville, Florida. The southeast location, Eastern Time zone and availability of a major airport all provide more efficient access to many of our major customers in the large business centers on the east coast and in the central and southern parts of the country. This is particularly important with respect to those financial institutions that are customers or potential customers of Fidelity Information Services. We have now been in Jacksonville for nine months and the corporate relocation has been a huge success and has definitely allowed our senior management to be much more involved with the customers and operational managers of FIS.

As we head into 2004, we have a clear vision and strategy about where FNF is heading. First, we are committed to continuing to fortify our market leading position in the core title and escrow business, as evidenced by our acquisition of American Pioneer Title Insurance Company. We will continue to evaluate any acquisition opportunities that present themselves in the title business and if they meet our strategic and financial objectives, we will be an acquirer in the title business.

We expect to make more acquisitions in the financial institution processing and outsourcing space in 2004. As we have said many times, we have a goal of growing FIS, the major component of this segment, into a $2 billion revenue business over the next several years. Our M&A team has researched and evaluated the entire financial processing landscape and we believe there will be further attractive strategic acquisition opportunities in 2004. The other main component of the financial institution processing and outsourcing segment, our default management group, will continue to capitalize on the revenue and customer synergies it has with the mortgage processing business of FIS. Our goal is to grow our default management market share in line with the nearly 50% market share we enjoy in mortgage processing.