Businesses rely on feedback from consumers to make decisions about their products and services. Heightened competition, consolidation, globalization of product markets, acceleration of product launch schedules, shortened product life and rapidly changing consumer preferences define today’s business environment. Marketing research is a critical tool to gather the information that businesses need to make decisions regarding product portfolios, brand management and advertising.

The worldwide survey research industry was estimated to be $7.5 billion in 2002 according to the World Association of Opinion and Marketing Research Professionals (“ESOMAR”), a leading professional organization based in Amsterdam, The Netherlands. According to ESOMAR, 38% and 41% of worldwide marketing research spending occurs in the United States and Europe, respectively. Using these figures, it is estimated that survey research spending in 2002 was approximately $2.9 billion and $3.1 billion in the United States and Europe, respectively. Of this $6.0 billion U.S. and European survey research market, it is believed that approximately 40%, or $2.4 billion, is spent by marketing research companies on fieldwork, which consists of data collection through the administration of surveys and data tabulation. Fieldwork is often conducted by interviews over the telephone, in malls or through surveys distributed through the Internet.

The Company continuously recruits from a diverse pool of sources, including Internet portals, special interest, age and ethnicity focused and other websites. The Company also administers its internally developed webmaster affiliate program to enable broad based recruitment from lower-traffic niche websites.

In 2003, the Company recruited over 730,000 panelists from MSN through its agreement with Microsoft Corporation. Under the terms of this agreement, the Company recruits panelists for the Greenfield Online panel through MSN in exchange for the Company’s payment to Microsoft of fees based on the number of panelists recruited and the number of surveys delivered to the Company’s clients that are completed by such panelists.

To extract maximum value from an Internet survey panel, proper panel management techniques must be employed. The Company utilizes senior copywriters to design the Company’s communication materials, a well-maintained website, including a customized panelist web page, and responsive help desk support personnel to ensure that each contact the Company makes with a panelist is a positive experience.

Members of the Company’s panel are offered incentives for participating in the Company’s surveys. The Company uses a combination of sweepstakes and cash incentives, administered through the Company’s own incentive program, to encourage the Company’s panelists’ participation. The incentive level for a particular survey project is based upon the length and complexity of the survey and the difficulty in finding or motivating the survey’s target audience. The Company typically initiates a survey with a modest incentive and then adjust the incentive level up or down as the Company invites more panelists to take the survey, and depending on the initial response of the Company’s panelists.

The Company offers survey solutions exclusively using Internet-based methods supported by the Greenfield Online panel. These survey solutions are customized to the clients’ needs, including the Company’s full-service data collection and sample solutions.

Gross profit for the year ended December 31, 2003 was $17.0 million, compared to $9.5 million for the year ended December 31, 2002, an increase of $7.5 million, or 79.2%.

Selling, general and administrative expenses for the year ended December 31, 2003 were $12.1 million, compared to $10.1 million for the prior year, an increase of $2.0 million or 19.8%.