What do You See

2003 Annual Report

Most see bugs

We see a Need

Rollins Inc through its wholly owned subsidiary Orkin Inc is one of the largest consumer servicescompanies in North America Orkin which began operations over 100 years ago provides essentialpest control services and protection against termite damage and rodent and insect infestationto approximately 16 million residential and commercial customers Orkin currently provides itsservices to customers as far north as Canada throughout the United States and Mexico andsouth to Panama Orkin continues to be one of the most highly recognized brand names in thecountry Seven out of ten people surveyed mentioned Orkin first when asked to name a pest controlcompany Orkin has over 400 locations staffed with highly-trained professionals whose knowledgeand skills have been developed by the Companyrsquos award winning training programs

Rollins Inc and Subsidiaries

Earnings per share and dividends per share for 2002 2001 2000 and 1999 have been restated forthe three-for-two stock split effective March 10 2003 for all shares held on February 10 2003

(In thousands except per share data) 2003 2002 2001 2000 1999

Operations Summary

Revenues $677013 $665425 $649925 $646878 $584098

Net Income $ 35761 $ 27110 $ 16942 $ 9550 $ 7150

Earnings Per SharemdashBasic

Net Income 079 060 037 021 016

Earnings Per SharemdashDiluted

Net Income 077 060 037 021 016

Dividends per Share 020 013 013 013 013

Financial Position

Total Assets $349904 $318338 $296559 $298819 $309948

Noncurrent Capital Lease Obligations mdash mdash mdash 256 2450

Long-Term Debt 1734 2913 4895 4656 5328

Stockholdersrsquo Equity 138774 90690 85498 78599 71790

Shares Outstanding at Year-End 45157 44799 45105 45054 44822

Five-Year Financial Summary

rsquo03

rsquo02

rsquo01

rsquo00

rsquo99

$6770

$6654

$6499

$6469

$5841

Revenues (in millions)

$077

$060

$037

$021

$016

rsquo03

rsquo02

rsquo01

rsquo00

rsquo99

Diluted Earnings Per Share (in dollars)

rsquo03

rsquo02

rsquo01

rsquo00

rsquo99

$358

$271

$169

$96

$72

Net Income (in millions)

bullAntsbullSilverfishbullMosquitoesbullbullSpidersbullRodentsbullTermitesbullbull F l e a s bull B e d B u g s bull H o r n e t s bullbullCockroachesbullCarpenter Antsbull

Letter to Stockholders

2003 was a very successful year for the CompanyWe continued to make positive strides in increas-ing shareholder value through our strategicservice and sales initiatives Our pest and termitecontrol service programs continue to makecontributions by improving customer satisfac-tion and retention At the same time our salesinitiatives are building momentum as our fieldmanagement gains confidence and experi-ence through execution

Investment in our employees continues to be apriority The Companyrsquos training programs wererecognized this year when we were named as one of Training magazinersquos Top 100 trainingcompanies This wonderful honor was followedin October of 2003 when Orkin earned firstplace standing for the BEST Award This distinc-tion was given by the American Society forTraining and Development for superior humancapital development

2003 HighlightsFinancial highlights for the year include

bull Revenue rose 30 in the fourth quarter and17 for the year

bull Net Income increased by $87 million or 319over 2002

bull Profit Margin improved 23 percentage pointsor 348 compared to 2002

bull Diluted Earnings Per Share increased for the6th consecutive year and was $077 or 283over 2002 results

bull Cash and Short-term Investments grewby $212 million or 554 over 2002

The Company ended 2003 with 16 consecutivequarters of year-over-year improvement in earn-ings per share

Growth InitiativesThe improvement shown in 2003 was in greatpart a result of Managementrsquos emphasis onproductivity improvement and customer reten-tion We are particularly pleased with the positiveimpact that our new sales and marketing organ-ization is having on the Company BusinessDevelopment Managers (ldquoBDMrdquo) have beenassigned responsibility for the growth and reten-tion of customers in each of our operating divi-sions This past summer in response tocustomer requests for solutions to mosquitoabatement we test marketed a mosquito con-trol service in the northeast United States Thisinitiative has been developed to help addressconsumer concerns about the West Nile virusand other mosquito-borne diseases We areworking with various health and governmentofficials to offer this service including the

Canadian provincial authorities in the south-western and northeastern regions of OntarioBased on the success and continued demandfor the program we intend to expand our mos-quito service in the spring of 2004 We also intro-duced our premium Gold Medal Protectionprogram to provide our high-end commercialcustomers with a more comprehensive serviceto meet their special needs The food manufac-turing and processing industry has very specialreporting and regulatory requirements thatOrkin is uniquely capable of providing We havecontinued to stay abreast of additional ISO cer-tification requirements by upgrading to ISO90012000 status in all of our dedicated com-mercial branches

New TechnologiesThe Company has expanded the capabilitiesof our Global Positioning System (ldquoGPSrdquo) tech-nology by initially introducing the latest genera-tion of equipment to our locations Thistechnology allows us to ensure greater safetyfor our service technicians by monitoringspeed seat belt usage and vehicle locationon a 247 basis Additionally this system pro-vides the ability to remotely update our map-ping software Handheld computerapplications continue to be enhanced andtested in an effort to provide tools to better serv-ice our termite and commercial pest controlcustomers From a customer and potential cus-tomer communication perspective we haveopened regional call centers enabling us toachieve higher customer service quality andgreater efficiency Our award-winning trainingprograms are being enhanced through furtherutilization and planned expansion of the Atlanta Orkin training facility The use of the Companyrsquos new Intranet has significantlyimproved communication in the field regardinginstantaneous policy and procedure changeswhile providing cost savings to the CompanyLastly we have initiated a team to study andultimately improve the way we monitor nationalaccount service and related billing and collec-tion for this fast growing segment of our business

We are excited about the future opportunitiesto accelerate revenue growth while improvingprofitability through our new service and salesinitiatives By reinvesting in our business we willcontinue to provide the best pest control serv-ice available to our customers while increasingvalue to our shareholders

R Randall Rollins Gary W RollinsChairman of the Board Chief Executive Officer

President and Chief Operating Officer

Gary W RollinsChief Executive Officer President and

Chief Operating Officer

R Randall RollinsChairman of the Board

1

March 1 2004

You see a pest

Orkinrsquos brand awareness is comparable to FordMotorola and Oscar Mayer and the Companyrsquosnational advertising campaigns play an impor-tant role in preserving as well as building ourbrand awareness

Our new 2004 ldquolocal expertrdquo television and radioadvertising campaign conveys a message thatour people are members of your community andyour neighbors With Orkin you get all the benefitsof a remarkably professional company with our serv-ice performed by people who live where you live

During the past year in order to better under-stand its customers and prospects Rollins initiatedmarket research to help identify specific residentialpest control market segments Three segmentswere determined to provide ideal new customergroups for Orkin These are sectors that theCompany believes offer the best opportunity tocreate long and prosperous relationships All ofthese groups are willing to pay a higher price fora pest control service that meets their needs

They indicated a desire for a companywith a strong positive reputation and onewith the most professional and knowl-

edgeable technicians They also want todo business with a company whose service willbe safe for their children and pets and a firm thatis responsive to their requests These are attributesthat Orkin delivers every day however this valida-tion will enable the Company to do a better jobcommunicating our strengths

The ldquoif it bugs you bug merdquo integrated radio andlocal point-of-sales advertising campaign was

introduced in 2003 This program was aug-mented by creative point-of-sale pieces for theCompanyrsquos service technicians to use ldquoclover

leafingrdquo for new prospects to build routedensity in neighborhoods where they haveexisting clients Orkin is also reaching out in

metro cities to the largest minority groupin the US the Hispanic market with

new Spanish radio spots and col-lateral material

To effectively and efficiently achievesales goals in todayrsquos highly com-

petitive environment our representativeshave a greater need for new technology tohelp them improve their productivity Orkin

began testing automated sales managementsoftware in 2003 This software is currently being

used to track the sales process allowing thepipelines to be easily reviewed to capitalize on

opportunities that are readily identifiable Accountdata statistics contact information future tasksand events are tracked by location with upward

flow to the sales management organization Thereporting and forecasting features also enableManagement to have a better overview andexpectation of the entire network

The Company has also reorganized its marketingdepartment to include BDMs for the operatingdivisions Each BDM is responsible for creating amarket development plan for future customergrowth and retention for their division They pro-vide advocacy by working with local regionaland divisional management to ensure the suc-cess of their team as it relates to sales trainingnew customer marketing and sales achieve-ments

In 2003 Orkin developed a corporate partnershipwith the National Science Teachers Association(ldquoNSTArdquo) that is designed to assist teachers in edu-cating the countryrsquos youth about the importanceof insects in the environment As a partner we areproviding teaching and instructional materialsdirectly to teachers and through the NSTArsquos website All this behind-the-scenes support is furtherreinforced by offering a ldquoreal liverdquo Orkin Man toprovide in-school presentations

This year the Company was proud to refurbish thepopular O Orkin Insect Zoo at the SmithsonianNational Museum of Natural History in WashingtonDC As one of the most visited exhibits at themuseum we refreshed the Insect Zoo throughnew carpeting insect case restoration and videolighting and sound system enhancement alongwith updating the exhibit graphics We are proudto be the Smithsonianrsquos first identified corporatesponsor and of our ongoing partnership

Rollins continues to promote its strong brand namedomestically and now internationally through thestrategic growth of its franchising program TheCompany currently has 44 franchises includingadding a new international franchise in Panama

Commercial ServicesOrkinrsquos commercial pest control programs enableus to deliver customized service to industries suchas food processing and distribution discount andgrocery retailers fast food healthcare and restau-rants As the nationrsquos largest commercial pestcontrol provider the Company services nationalchains (primarily sold through the Orkin NationalAccounts division) as well as locally-owned busi-nesses A primary goal of the Company is to grownational account revenue at a pace that willenable us to further expand our market share

Orkin introduced the Gold Medal Protection pro-gram in 2003 This custom-designed pest controlservice is targeted to specific high-end customers

The Orkin Brand

2

We see opportunityprimarily in the food manufacturing and processing indus-try The program provides a comprehensive reporting sys-tem that meets federal and state regulatory requirements Italso guarantees free retreatment if the customer is not satis-fied and Orkin commits to paying any regulatory penaltiesas a result of a shortfall in our service

In 2003 Orkin introduced a Pest Control Quality Assuranceprogram nationally to ensure consistent service and tostrengthen the Companyrsquos capabilities in the commercialpest control area This program utilizes floor-level inspectionsby Orkin QA inspectors while accompanied by branchregion and on occasion division management staff A newCommercial Pest Control Expectation Manual has also beendeveloped so branches clearly understand our designatedpractices and materials regarding these specific accountsThe counterpart of this new commercial Pest Control QualityAssurance program was introduced for termite control in1997 and has proven very successful in improving our serviceand customer retention in this segment

Management believes that our commercial pest controlbusiness represents the greatest potential for long-termgrowth and our sales initiatives including a hand-heldcomputer application as well as this quality control pro-gram have been developed with that objective in mind

Residential Services

Pest ControlIn 1999 Orkin began offering a bimonthly pest control serv-ice in addition to the traditional monthly service With theintroduction of longer lasting chemicals service treatmentcould be less frequent and the Company could betterconform to Orkinrsquos customersrsquo busy lifestyles As a resultOrkin today offers a pest control service that is more con-venient and highly effective Initially an Orkin technicianperforms a thorough inspection and designs a customizedplan to rid the home of active pests and their habitatCrack and crevice treatments and baits are used to effec-tively target pests where they live and breed Points of entryare identified and attacked thus creating an exterior pro-tective barrier utilizing time-released materials that helpkeep pests out of the home Regularly scheduled visits by

the technician continue to strengthen the homersquos protec-tive barrier If the need arises between scheduled visits theOrkin technician will return to treat the home inside or outat no additional charge

Recently mosquitoes have become a much greater healthrisk and the spread of the West Nile virus has made thepublic aware that these insects can transmit potentiallydeadly diseases This past summer Orkin began test mar-keting a mosquito control program in the northern UnitedStates and Canada While working to address the threat of mosquito-borne diseases in the US a highly successfulWest Nile virus preventative program was also implementedin Ontario Canada Two provinces were provided thou-sands of larvicide treatments to mosquito breedinggrounds reducing the population of adult mosquitoes andtheir eggs The Company intends to expand the mosquitocontrol program in Canada and other US markets in thespring of 2004

Termite ControlResearch has shown that termites cause more damage toAmerican structures than fires and storms combined Orkinoffers a treatment customized to a homersquos needs thataddresses inside outside and within the foundation Ourdirected liquid and directed liquid plus bait programs havebeen developed in conjunction with the entomology depart-ments at leading universities As a result our approach totreating for subterranean termites has become the stand-ard adopted by most pest control operators today

TrainingIn spring 2003 Orkin was recognized by Training magazineas one of the Top 100 companies to excel in training andemployee development In addition Orkin was one of onlyfive companies selected for the magazinersquos Editorrsquos Choicelist The award is given to select companies that have cre-ated positive learning environments for their workforce

Orkin attained further recognition this year for its trainingachievements by winning first place honors for the BESTAward given by the American Society for Training andDevelopment The Orkin Training Center located in Atlantawas specifically referenced as evidence of the Companyrsquos

Total Revenue by Segment

Total Pest Control752

Residential397

Commercial355

Other15

Termite233

3

dedication to employee performance improvement TheOrkin Training Center has a full-size house and several otherreal examples of building structures where technicians cansee the relationship between pests and home construc-tion They can also simulate pest treatments under thesupervision of qualified instructors In the classrooms tech-nicians acquire guidance in customer relations pest prob-lem solving and advanced technical skills through highlyinteractive instructor-led training

In 2004 the Company plans to expand the Training Centerto include hands-on instructional areas that representactual customer account facilities with additional class-room space and a media production facility

Industry RecognitionIn 2003 Rollinsrsquo President and Chief Executive Officer GaryW Rollins received the National Pest Management Associ-ationrsquos Pinnacle Award which honors a lifetime of dedicationand commitment to the pest management industry GlenRollins who has since been named Orkinrsquos President andChief Operating Officer and Frank Meek National TechnicalManager were honored by Pest Control Technology (ldquoPCTrdquo)magazine as leaders under the age of 40 making a differ-ence in the pest control industry Orkin was also one of onlytwo companies to have more than one representative forPCT magazinersquos ldquo40 Under 40rdquo award which recognizes theindustryrsquos next level of leadership

Orkinrsquos service technicians received similar national distinc-tion as termite technician Kevin McDonald of the ClearwaterFlorida branch was recognized by PCT magazine as Tech-nician of the Year from over 120000 technicians who serveour industry Candidates are nominated and judged oncriteria including years of service recommendations frommanagement referral letters from customers professionaleducation and activity within the community they serveOrkin was further recognized with two other finalists givingthe Company three out of the fifteen top places SteveJankelevich of the South Florida Commercial branch waschosen in the commercial pest control technician categoryand Luis Ayala of the Pittsfield MA branch was selected inthe residential pest control category We are very proud ofthese employees and how they have distinguished them-selves and the Company

New TechnologiesOrkin is leveraging recent investments in technology andprocess improvement to advance business practices in thecommercial business line Re-engineering efforts are tar-geted at enhancing integration between sales customermanagement service delivery and billing processes toprovide a higher level of service to these customers

In 2003 the Company successfully launched its new Intranetwhich provides quick and efficient communications

between the field and home office Significant costsavings are being realized by providing Material Safety

Data Sheets and Product Labels through the MyOrkin

Intranet This is a very important requirement that enablesinstantaneous compliance with state and federal productuse regulations The Orkin Training Department now has astate-of-the-art means to better communicate the availabil-ity of a comprehensive array of training tools and referencematerials through the MyOrkinTraining site The MyOrkinMarketplace another company Intranet address was cre-ated for branches to more efficiently order promotionalproducts and company forms Lastly technical forums areavailable to create a method of sharing knowledge on the web site

Today for the consumer Orkin technical and marketinginformation such as ldquoOrkin Solutions For Your Homerdquo is avail-able through wwworkincom Rollins Inc financial informa-tion such as the latest news releases SEC filings and annualreports is quickly accessible through the Internet via Rollinsrsquoweb site at wwwrollinscom

In 2003 Orkin began outsourcing some of its chemical dis-tribution utilizing new Internet branch systems to easeordering of product Test branch locations are now receiv-ing shipments in two to four days while reducing the carry-ing cost of excess inventory and shipping costs

The GPS technology introduced three years ago hasresulted in improved driver safety and service productionNow newer generation GPS units are being installed thatallow 247 monitoring and reporting of speed locationand seatbelt usage as well as allowing remote updating ofmapping software This technology also details the route aservice technician takes rather than just noting stopsThese units create reports that are easier to read and allowdata to be sent directly to a server with no removable chipto be taken out at the end of the day Although this equip-ment is only being utilized in some of our locations we areoptimistic that it will be a building block to creating a com-prehensive ldquorouting and schedulingrdquo system in the future

As part of our continuous home office process improvementmandate a Human Resources Service Center was estab-lished from three autonomous departments Payroll Benefitsand Human Resources Everything from new-hire paper-work to retirement forms is now available through this newcenter We are pleased that this consolidation has improvedour service to the field while significantly reducing costs

As a company we are improving in a multitude of areassuch as training technology sales management market-ing and alliance development We are committed tobecoming the nationrsquos best service company and feel ouractions show it

4

Rollins Inc Executive Steering Committee

Left Top Michael W Knottek William E Newton L Thomas PorterLeft Bottom Harry J Cynkus Gary W Rollins Glen W Rollins

President and Chief Operating Officer of Orkin Inc and Vice Presidents

Left Top Gary Rowell John Wilson Gary Muldoon Herman BorelLeft Bottom Robert Stevens Steve Drennan Glen W Rollins Presidentand Chief Operating Officer Harry Sargent

Directors

Henry B TippiebullChairman of the Board and Chief Executive Officer of Tippie Services Inc (management services)

R Randall Rollins

Chairman of the Board of Rollins IncChairman of the Board of RPC Inc (oil and gas fieldservices) and Chairman of the Board of Marine ProductsCorporation (boat manufacturing)

Wilton LooneydaggerHonorary Chairman of the Board of Genuine PartsCompany (automotive parts distributor)

James B WilliamsdaggerChairman of the Executive Committee of SunTrust BanksInc (bank holding company)

Gary W RollinsChief Executive Officer President and Chief Operating Officer of Rollins Inc

Bill J DismukeRetired President of Edwards Baking Company

bull Chairman of the Audit Committee Compensation Committee

Nominating and Governance Committee and Diversity Committee

Member of the Executive Committee

daggerMember of the Audit Committee Compensation Committee

Nominating and Governance Committee and Diversity Committee

Officers

R Randall RollinsChairman of the Board

Gary W RollinsChief Executive Officer President and Chief Operating Officer

Michael W KnottekSenior Vice President and Secretary

Harry J CynkusChief Financial Officer and Treasurer

Glen W RollinsVice President

Stockholdersrsquo Information

Annual MeetingThe Annual Meeting of the Stockholders will be held at130 pm Tuesday April 27 2004 at the Companyrsquoscorporate offices in Atlanta Georgia

Transfer Agent and RegistrarFor inquiries related to stock certificates includingchanges of address lost certificates dividends and taxforms please contact

SunTrust BankStock Transfer DepartmentPO Box 4625Atlanta Georgia 30302Telephone 1-800-568-3476

Stock Exchange InformationThe Common Stock of the Company is listed on the New York and Pacific Stock Exchanges and traded on the Philadelphia Chicago and Boston Exchanges underthe symbol ROL

Dividend Reinvestment PlanThis Plan provides a simple convenient and inexpensiveway for stockholders to invest cash dividends in additionalRollins Inc shares For further information contact SunTrustBank at the above address

Corporate OfficesRollins Inc2170 Piedmont Road NEAtlanta Georgia 30324

Mailing AddressRollins IncPO Box 647Atlanta Georgia 30301

Telephone(404) 888-2000

De

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Rollins Inc through its wholly owned subsidiary Orkin Inc is one of the largest consumer servicescompanies in North America Orkin which began operations over 100 years ago provides essentialpest control services and protection against termite damage and rodent and insect infestationto approximately 16 million residential and commercial customers Orkin currently provides itsservices to customers as far north as Canada throughout the United States and Mexico andsouth to Panama Orkin continues to be one of the most highly recognized brand names in thecountry Seven out of ten people surveyed mentioned Orkin first when asked to name a pest controlcompany Orkin has over 400 locations staffed with highly-trained professionals whose knowledgeand skills have been developed by the Companyrsquos award winning training programs

Rollins Inc and Subsidiaries

Earnings per share and dividends per share for 2002 2001 2000 and 1999 have been restated forthe three-for-two stock split effective March 10 2003 for all shares held on February 10 2003

(In thousands except per share data) 2003 2002 2001 2000 1999

Operations Summary

Revenues $677013 $665425 $649925 $646878 $584098

Net Income $ 35761 $ 27110 $ 16942 $ 9550 $ 7150

Earnings Per SharemdashBasic

Net Income 079 060 037 021 016

Earnings Per SharemdashDiluted

Net Income 077 060 037 021 016

Dividends per Share 020 013 013 013 013

Financial Position

Total Assets $349904 $318338 $296559 $298819 $309948

Noncurrent Capital Lease Obligations mdash mdash mdash 256 2450

Long-Term Debt 1734 2913 4895 4656 5328

Stockholdersrsquo Equity 138774 90690 85498 78599 71790

Shares Outstanding at Year-End 45157 44799 45105 45054 44822

Five-Year Financial Summary

rsquo03

rsquo02

rsquo01

rsquo00

rsquo99

$6770

$6654

$6499

$6469

$5841

Revenues (in millions)

$077

$060

$037

$021

$016

rsquo03

rsquo02

rsquo01

rsquo00

rsquo99

Diluted Earnings Per Share (in dollars)

rsquo03

rsquo02

rsquo01

rsquo00

rsquo99

$358

$271

$169

$96

$72

Net Income (in millions)

bullAntsbullSilverfishbullMosquitoesbullbullSpidersbullRodentsbullTermitesbullbull F l e a s bull B e d B u g s bull H o r n e t s bullbullCockroachesbullCarpenter Antsbull

Letter to Stockholders

2003 was a very successful year for the CompanyWe continued to make positive strides in increas-ing shareholder value through our strategicservice and sales initiatives Our pest and termitecontrol service programs continue to makecontributions by improving customer satisfac-tion and retention At the same time our salesinitiatives are building momentum as our fieldmanagement gains confidence and experi-ence through execution

Investment in our employees continues to be apriority The Companyrsquos training programs wererecognized this year when we were named as one of Training magazinersquos Top 100 trainingcompanies This wonderful honor was followedin October of 2003 when Orkin earned firstplace standing for the BEST Award This distinc-tion was given by the American Society forTraining and Development for superior humancapital development

2003 HighlightsFinancial highlights for the year include

bull Revenue rose 30 in the fourth quarter and17 for the year

bull Net Income increased by $87 million or 319over 2002

bull Profit Margin improved 23 percentage pointsor 348 compared to 2002

bull Diluted Earnings Per Share increased for the6th consecutive year and was $077 or 283over 2002 results

bull Cash and Short-term Investments grewby $212 million or 554 over 2002

The Company ended 2003 with 16 consecutivequarters of year-over-year improvement in earn-ings per share

Growth InitiativesThe improvement shown in 2003 was in greatpart a result of Managementrsquos emphasis onproductivity improvement and customer reten-tion We are particularly pleased with the positiveimpact that our new sales and marketing organ-ization is having on the Company BusinessDevelopment Managers (ldquoBDMrdquo) have beenassigned responsibility for the growth and reten-tion of customers in each of our operating divi-sions This past summer in response tocustomer requests for solutions to mosquitoabatement we test marketed a mosquito con-trol service in the northeast United States Thisinitiative has been developed to help addressconsumer concerns about the West Nile virusand other mosquito-borne diseases We areworking with various health and governmentofficials to offer this service including the

Canadian provincial authorities in the south-western and northeastern regions of OntarioBased on the success and continued demandfor the program we intend to expand our mos-quito service in the spring of 2004 We also intro-duced our premium Gold Medal Protectionprogram to provide our high-end commercialcustomers with a more comprehensive serviceto meet their special needs The food manufac-turing and processing industry has very specialreporting and regulatory requirements thatOrkin is uniquely capable of providing We havecontinued to stay abreast of additional ISO cer-tification requirements by upgrading to ISO90012000 status in all of our dedicated com-mercial branches

New TechnologiesThe Company has expanded the capabilitiesof our Global Positioning System (ldquoGPSrdquo) tech-nology by initially introducing the latest genera-tion of equipment to our locations Thistechnology allows us to ensure greater safetyfor our service technicians by monitoringspeed seat belt usage and vehicle locationon a 247 basis Additionally this system pro-vides the ability to remotely update our map-ping software Handheld computerapplications continue to be enhanced andtested in an effort to provide tools to better serv-ice our termite and commercial pest controlcustomers From a customer and potential cus-tomer communication perspective we haveopened regional call centers enabling us toachieve higher customer service quality andgreater efficiency Our award-winning trainingprograms are being enhanced through furtherutilization and planned expansion of the Atlanta Orkin training facility The use of the Companyrsquos new Intranet has significantlyimproved communication in the field regardinginstantaneous policy and procedure changeswhile providing cost savings to the CompanyLastly we have initiated a team to study andultimately improve the way we monitor nationalaccount service and related billing and collec-tion for this fast growing segment of our business

We are excited about the future opportunitiesto accelerate revenue growth while improvingprofitability through our new service and salesinitiatives By reinvesting in our business we willcontinue to provide the best pest control serv-ice available to our customers while increasingvalue to our shareholders

R Randall Rollins Gary W RollinsChairman of the Board Chief Executive Officer

President and Chief Operating Officer

Gary W RollinsChief Executive Officer President and

Chief Operating Officer

R Randall RollinsChairman of the Board

1

March 1 2004

You see a pest

Orkinrsquos brand awareness is comparable to FordMotorola and Oscar Mayer and the Companyrsquosnational advertising campaigns play an impor-tant role in preserving as well as building ourbrand awareness

Our new 2004 ldquolocal expertrdquo television and radioadvertising campaign conveys a message thatour people are members of your community andyour neighbors With Orkin you get all the benefitsof a remarkably professional company with our serv-ice performed by people who live where you live

During the past year in order to better under-stand its customers and prospects Rollins initiatedmarket research to help identify specific residentialpest control market segments Three segmentswere determined to provide ideal new customergroups for Orkin These are sectors that theCompany believes offer the best opportunity tocreate long and prosperous relationships All ofthese groups are willing to pay a higher price fora pest control service that meets their needs

They indicated a desire for a companywith a strong positive reputation and onewith the most professional and knowl-

edgeable technicians They also want todo business with a company whose service willbe safe for their children and pets and a firm thatis responsive to their requests These are attributesthat Orkin delivers every day however this valida-tion will enable the Company to do a better jobcommunicating our strengths

The ldquoif it bugs you bug merdquo integrated radio andlocal point-of-sales advertising campaign was

introduced in 2003 This program was aug-mented by creative point-of-sale pieces for theCompanyrsquos service technicians to use ldquoclover

leafingrdquo for new prospects to build routedensity in neighborhoods where they haveexisting clients Orkin is also reaching out in

metro cities to the largest minority groupin the US the Hispanic market with

new Spanish radio spots and col-lateral material

To effectively and efficiently achievesales goals in todayrsquos highly com-

petitive environment our representativeshave a greater need for new technology tohelp them improve their productivity Orkin

began testing automated sales managementsoftware in 2003 This software is currently being

used to track the sales process allowing thepipelines to be easily reviewed to capitalize on

opportunities that are readily identifiable Accountdata statistics contact information future tasksand events are tracked by location with upward

flow to the sales management organization Thereporting and forecasting features also enableManagement to have a better overview andexpectation of the entire network

The Company has also reorganized its marketingdepartment to include BDMs for the operatingdivisions Each BDM is responsible for creating amarket development plan for future customergrowth and retention for their division They pro-vide advocacy by working with local regionaland divisional management to ensure the suc-cess of their team as it relates to sales trainingnew customer marketing and sales achieve-ments

In 2003 Orkin developed a corporate partnershipwith the National Science Teachers Association(ldquoNSTArdquo) that is designed to assist teachers in edu-cating the countryrsquos youth about the importanceof insects in the environment As a partner we areproviding teaching and instructional materialsdirectly to teachers and through the NSTArsquos website All this behind-the-scenes support is furtherreinforced by offering a ldquoreal liverdquo Orkin Man toprovide in-school presentations

This year the Company was proud to refurbish thepopular O Orkin Insect Zoo at the SmithsonianNational Museum of Natural History in WashingtonDC As one of the most visited exhibits at themuseum we refreshed the Insect Zoo throughnew carpeting insect case restoration and videolighting and sound system enhancement alongwith updating the exhibit graphics We are proudto be the Smithsonianrsquos first identified corporatesponsor and of our ongoing partnership

Rollins continues to promote its strong brand namedomestically and now internationally through thestrategic growth of its franchising program TheCompany currently has 44 franchises includingadding a new international franchise in Panama

Commercial ServicesOrkinrsquos commercial pest control programs enableus to deliver customized service to industries suchas food processing and distribution discount andgrocery retailers fast food healthcare and restau-rants As the nationrsquos largest commercial pestcontrol provider the Company services nationalchains (primarily sold through the Orkin NationalAccounts division) as well as locally-owned busi-nesses A primary goal of the Company is to grownational account revenue at a pace that willenable us to further expand our market share

Orkin introduced the Gold Medal Protection pro-gram in 2003 This custom-designed pest controlservice is targeted to specific high-end customers

The Orkin Brand

2

We see opportunityprimarily in the food manufacturing and processing indus-try The program provides a comprehensive reporting sys-tem that meets federal and state regulatory requirements Italso guarantees free retreatment if the customer is not satis-fied and Orkin commits to paying any regulatory penaltiesas a result of a shortfall in our service

In 2003 Orkin introduced a Pest Control Quality Assuranceprogram nationally to ensure consistent service and tostrengthen the Companyrsquos capabilities in the commercialpest control area This program utilizes floor-level inspectionsby Orkin QA inspectors while accompanied by branchregion and on occasion division management staff A newCommercial Pest Control Expectation Manual has also beendeveloped so branches clearly understand our designatedpractices and materials regarding these specific accountsThe counterpart of this new commercial Pest Control QualityAssurance program was introduced for termite control in1997 and has proven very successful in improving our serviceand customer retention in this segment

Management believes that our commercial pest controlbusiness represents the greatest potential for long-termgrowth and our sales initiatives including a hand-heldcomputer application as well as this quality control pro-gram have been developed with that objective in mind

Residential Services

Pest ControlIn 1999 Orkin began offering a bimonthly pest control serv-ice in addition to the traditional monthly service With theintroduction of longer lasting chemicals service treatmentcould be less frequent and the Company could betterconform to Orkinrsquos customersrsquo busy lifestyles As a resultOrkin today offers a pest control service that is more con-venient and highly effective Initially an Orkin technicianperforms a thorough inspection and designs a customizedplan to rid the home of active pests and their habitatCrack and crevice treatments and baits are used to effec-tively target pests where they live and breed Points of entryare identified and attacked thus creating an exterior pro-tective barrier utilizing time-released materials that helpkeep pests out of the home Regularly scheduled visits by

the technician continue to strengthen the homersquos protec-tive barrier If the need arises between scheduled visits theOrkin technician will return to treat the home inside or outat no additional charge

Recently mosquitoes have become a much greater healthrisk and the spread of the West Nile virus has made thepublic aware that these insects can transmit potentiallydeadly diseases This past summer Orkin began test mar-keting a mosquito control program in the northern UnitedStates and Canada While working to address the threat of mosquito-borne diseases in the US a highly successfulWest Nile virus preventative program was also implementedin Ontario Canada Two provinces were provided thou-sands of larvicide treatments to mosquito breedinggrounds reducing the population of adult mosquitoes andtheir eggs The Company intends to expand the mosquitocontrol program in Canada and other US markets in thespring of 2004

Termite ControlResearch has shown that termites cause more damage toAmerican structures than fires and storms combined Orkinoffers a treatment customized to a homersquos needs thataddresses inside outside and within the foundation Ourdirected liquid and directed liquid plus bait programs havebeen developed in conjunction with the entomology depart-ments at leading universities As a result our approach totreating for subterranean termites has become the stand-ard adopted by most pest control operators today

TrainingIn spring 2003 Orkin was recognized by Training magazineas one of the Top 100 companies to excel in training andemployee development In addition Orkin was one of onlyfive companies selected for the magazinersquos Editorrsquos Choicelist The award is given to select companies that have cre-ated positive learning environments for their workforce

Orkin attained further recognition this year for its trainingachievements by winning first place honors for the BESTAward given by the American Society for Training andDevelopment The Orkin Training Center located in Atlantawas specifically referenced as evidence of the Companyrsquos

Total Revenue by Segment

Total Pest Control752

Residential397

Commercial355

Other15

Termite233

3

dedication to employee performance improvement TheOrkin Training Center has a full-size house and several otherreal examples of building structures where technicians cansee the relationship between pests and home construc-tion They can also simulate pest treatments under thesupervision of qualified instructors In the classrooms tech-nicians acquire guidance in customer relations pest prob-lem solving and advanced technical skills through highlyinteractive instructor-led training

In 2004 the Company plans to expand the Training Centerto include hands-on instructional areas that representactual customer account facilities with additional class-room space and a media production facility

Industry RecognitionIn 2003 Rollinsrsquo President and Chief Executive Officer GaryW Rollins received the National Pest Management Associ-ationrsquos Pinnacle Award which honors a lifetime of dedicationand commitment to the pest management industry GlenRollins who has since been named Orkinrsquos President andChief Operating Officer and Frank Meek National TechnicalManager were honored by Pest Control Technology (ldquoPCTrdquo)magazine as leaders under the age of 40 making a differ-ence in the pest control industry Orkin was also one of onlytwo companies to have more than one representative forPCT magazinersquos ldquo40 Under 40rdquo award which recognizes theindustryrsquos next level of leadership

Orkinrsquos service technicians received similar national distinc-tion as termite technician Kevin McDonald of the ClearwaterFlorida branch was recognized by PCT magazine as Tech-nician of the Year from over 120000 technicians who serveour industry Candidates are nominated and judged oncriteria including years of service recommendations frommanagement referral letters from customers professionaleducation and activity within the community they serveOrkin was further recognized with two other finalists givingthe Company three out of the fifteen top places SteveJankelevich of the South Florida Commercial branch waschosen in the commercial pest control technician categoryand Luis Ayala of the Pittsfield MA branch was selected inthe residential pest control category We are very proud ofthese employees and how they have distinguished them-selves and the Company

New TechnologiesOrkin is leveraging recent investments in technology andprocess improvement to advance business practices in thecommercial business line Re-engineering efforts are tar-geted at enhancing integration between sales customermanagement service delivery and billing processes toprovide a higher level of service to these customers

In 2003 the Company successfully launched its new Intranetwhich provides quick and efficient communications

between the field and home office Significant costsavings are being realized by providing Material Safety

Data Sheets and Product Labels through the MyOrkin

Intranet This is a very important requirement that enablesinstantaneous compliance with state and federal productuse regulations The Orkin Training Department now has astate-of-the-art means to better communicate the availabil-ity of a comprehensive array of training tools and referencematerials through the MyOrkinTraining site The MyOrkinMarketplace another company Intranet address was cre-ated for branches to more efficiently order promotionalproducts and company forms Lastly technical forums areavailable to create a method of sharing knowledge on the web site

Today for the consumer Orkin technical and marketinginformation such as ldquoOrkin Solutions For Your Homerdquo is avail-able through wwworkincom Rollins Inc financial informa-tion such as the latest news releases SEC filings and annualreports is quickly accessible through the Internet via Rollinsrsquoweb site at wwwrollinscom

In 2003 Orkin began outsourcing some of its chemical dis-tribution utilizing new Internet branch systems to easeordering of product Test branch locations are now receiv-ing shipments in two to four days while reducing the carry-ing cost of excess inventory and shipping costs

The GPS technology introduced three years ago hasresulted in improved driver safety and service productionNow newer generation GPS units are being installed thatallow 247 monitoring and reporting of speed locationand seatbelt usage as well as allowing remote updating ofmapping software This technology also details the route aservice technician takes rather than just noting stopsThese units create reports that are easier to read and allowdata to be sent directly to a server with no removable chipto be taken out at the end of the day Although this equip-ment is only being utilized in some of our locations we areoptimistic that it will be a building block to creating a com-prehensive ldquorouting and schedulingrdquo system in the future

As part of our continuous home office process improvementmandate a Human Resources Service Center was estab-lished from three autonomous departments Payroll Benefitsand Human Resources Everything from new-hire paper-work to retirement forms is now available through this newcenter We are pleased that this consolidation has improvedour service to the field while significantly reducing costs

As a company we are improving in a multitude of areassuch as training technology sales management market-ing and alliance development We are committed tobecoming the nationrsquos best service company and feel ouractions show it

4

Rollins Inc Executive Steering Committee

Left Top Michael W Knottek William E Newton L Thomas PorterLeft Bottom Harry J Cynkus Gary W Rollins Glen W Rollins

President and Chief Operating Officer of Orkin Inc and Vice Presidents

Left Top Gary Rowell John Wilson Gary Muldoon Herman BorelLeft Bottom Robert Stevens Steve Drennan Glen W Rollins Presidentand Chief Operating Officer Harry Sargent

Directors

Henry B TippiebullChairman of the Board and Chief Executive Officer of Tippie Services Inc (management services)

R Randall Rollins

Chairman of the Board of Rollins IncChairman of the Board of RPC Inc (oil and gas fieldservices) and Chairman of the Board of Marine ProductsCorporation (boat manufacturing)

Wilton LooneydaggerHonorary Chairman of the Board of Genuine PartsCompany (automotive parts distributor)

James B WilliamsdaggerChairman of the Executive Committee of SunTrust BanksInc (bank holding company)

Gary W RollinsChief Executive Officer President and Chief Operating Officer of Rollins Inc

Bill J DismukeRetired President of Edwards Baking Company

bull Chairman of the Audit Committee Compensation Committee

Nominating and Governance Committee and Diversity Committee

Member of the Executive Committee

daggerMember of the Audit Committee Compensation Committee

Nominating and Governance Committee and Diversity Committee

Officers

R Randall RollinsChairman of the Board

Gary W RollinsChief Executive Officer President and Chief Operating Officer

Michael W KnottekSenior Vice President and Secretary

Harry J CynkusChief Financial Officer and Treasurer

Glen W RollinsVice President

Stockholdersrsquo Information

Annual MeetingThe Annual Meeting of the Stockholders will be held at130 pm Tuesday April 27 2004 at the Companyrsquoscorporate offices in Atlanta Georgia

Transfer Agent and RegistrarFor inquiries related to stock certificates includingchanges of address lost certificates dividends and taxforms please contact

SunTrust BankStock Transfer DepartmentPO Box 4625Atlanta Georgia 30302Telephone 1-800-568-3476

Stock Exchange InformationThe Common Stock of the Company is listed on the New York and Pacific Stock Exchanges and traded on the Philadelphia Chicago and Boston Exchanges underthe symbol ROL

Dividend Reinvestment PlanThis Plan provides a simple convenient and inexpensiveway for stockholders to invest cash dividends in additionalRollins Inc shares For further information contact SunTrustBank at the above address

Corporate OfficesRollins Inc2170 Piedmont Road NEAtlanta Georgia 30324

Mailing AddressRollins IncPO Box 647Atlanta Georgia 30301

Telephone(404) 888-2000

De

sign

ed

by

Cu

rran

amp C

on

no

rs I

nc

w

ww

cu

rran

-co

nn

ors

co

m

Letter to Stockholders

2003 was a very successful year for the CompanyWe continued to make positive strides in increas-ing shareholder value through our strategicservice and sales initiatives Our pest and termitecontrol service programs continue to makecontributions by improving customer satisfac-tion and retention At the same time our salesinitiatives are building momentum as our fieldmanagement gains confidence and experi-ence through execution

Investment in our employees continues to be apriority The Companyrsquos training programs wererecognized this year when we were named as one of Training magazinersquos Top 100 trainingcompanies This wonderful honor was followedin October of 2003 when Orkin earned firstplace standing for the BEST Award This distinc-tion was given by the American Society forTraining and Development for superior humancapital development

2003 HighlightsFinancial highlights for the year include

bull Revenue rose 30 in the fourth quarter and17 for the year

bull Net Income increased by $87 million or 319over 2002

bull Profit Margin improved 23 percentage pointsor 348 compared to 2002

bull Diluted Earnings Per Share increased for the6th consecutive year and was $077 or 283over 2002 results

bull Cash and Short-term Investments grewby $212 million or 554 over 2002

The Company ended 2003 with 16 consecutivequarters of year-over-year improvement in earn-ings per share

Growth InitiativesThe improvement shown in 2003 was in greatpart a result of Managementrsquos emphasis onproductivity improvement and customer reten-tion We are particularly pleased with the positiveimpact that our new sales and marketing organ-ization is having on the Company BusinessDevelopment Managers (ldquoBDMrdquo) have beenassigned responsibility for the growth and reten-tion of customers in each of our operating divi-sions This past summer in response tocustomer requests for solutions to mosquitoabatement we test marketed a mosquito con-trol service in the northeast United States Thisinitiative has been developed to help addressconsumer concerns about the West Nile virusand other mosquito-borne diseases We areworking with various health and governmentofficials to offer this service including the

Canadian provincial authorities in the south-western and northeastern regions of OntarioBased on the success and continued demandfor the program we intend to expand our mos-quito service in the spring of 2004 We also intro-duced our premium Gold Medal Protectionprogram to provide our high-end commercialcustomers with a more comprehensive serviceto meet their special needs The food manufac-turing and processing industry has very specialreporting and regulatory requirements thatOrkin is uniquely capable of providing We havecontinued to stay abreast of additional ISO cer-tification requirements by upgrading to ISO90012000 status in all of our dedicated com-mercial branches

New TechnologiesThe Company has expanded the capabilitiesof our Global Positioning System (ldquoGPSrdquo) tech-nology by initially introducing the latest genera-tion of equipment to our locations Thistechnology allows us to ensure greater safetyfor our service technicians by monitoringspeed seat belt usage and vehicle locationon a 247 basis Additionally this system pro-vides the ability to remotely update our map-ping software Handheld computerapplications continue to be enhanced andtested in an effort to provide tools to better serv-ice our termite and commercial pest controlcustomers From a customer and potential cus-tomer communication perspective we haveopened regional call centers enabling us toachieve higher customer service quality andgreater efficiency Our award-winning trainingprograms are being enhanced through furtherutilization and planned expansion of the Atlanta Orkin training facility The use of the Companyrsquos new Intranet has significantlyimproved communication in the field regardinginstantaneous policy and procedure changeswhile providing cost savings to the CompanyLastly we have initiated a team to study andultimately improve the way we monitor nationalaccount service and related billing and collec-tion for this fast growing segment of our business

We are excited about the future opportunitiesto accelerate revenue growth while improvingprofitability through our new service and salesinitiatives By reinvesting in our business we willcontinue to provide the best pest control serv-ice available to our customers while increasingvalue to our shareholders

R Randall Rollins Gary W RollinsChairman of the Board Chief Executive Officer

President and Chief Operating Officer

Gary W RollinsChief Executive Officer President and

Chief Operating Officer

R Randall RollinsChairman of the Board

1

March 1 2004

You see a pest

Orkinrsquos brand awareness is comparable to FordMotorola and Oscar Mayer and the Companyrsquosnational advertising campaigns play an impor-tant role in preserving as well as building ourbrand awareness

Our new 2004 ldquolocal expertrdquo television and radioadvertising campaign conveys a message thatour people are members of your community andyour neighbors With Orkin you get all the benefitsof a remarkably professional company with our serv-ice performed by people who live where you live

During the past year in order to better under-stand its customers and prospects Rollins initiatedmarket research to help identify specific residentialpest control market segments Three segmentswere determined to provide ideal new customergroups for Orkin These are sectors that theCompany believes offer the best opportunity tocreate long and prosperous relationships All ofthese groups are willing to pay a higher price fora pest control service that meets their needs

They indicated a desire for a companywith a strong positive reputation and onewith the most professional and knowl-

edgeable technicians They also want todo business with a company whose service willbe safe for their children and pets and a firm thatis responsive to their requests These are attributesthat Orkin delivers every day however this valida-tion will enable the Company to do a better jobcommunicating our strengths

The ldquoif it bugs you bug merdquo integrated radio andlocal point-of-sales advertising campaign was

introduced in 2003 This program was aug-mented by creative point-of-sale pieces for theCompanyrsquos service technicians to use ldquoclover

leafingrdquo for new prospects to build routedensity in neighborhoods where they haveexisting clients Orkin is also reaching out in

metro cities to the largest minority groupin the US the Hispanic market with

new Spanish radio spots and col-lateral material

To effectively and efficiently achievesales goals in todayrsquos highly com-

petitive environment our representativeshave a greater need for new technology tohelp them improve their productivity Orkin

began testing automated sales managementsoftware in 2003 This software is currently being

used to track the sales process allowing thepipelines to be easily reviewed to capitalize on

opportunities that are readily identifiable Accountdata statistics contact information future tasksand events are tracked by location with upward

flow to the sales management organization Thereporting and forecasting features also enableManagement to have a better overview andexpectation of the entire network

The Company has also reorganized its marketingdepartment to include BDMs for the operatingdivisions Each BDM is responsible for creating amarket development plan for future customergrowth and retention for their division They pro-vide advocacy by working with local regionaland divisional management to ensure the suc-cess of their team as it relates to sales trainingnew customer marketing and sales achieve-ments

In 2003 Orkin developed a corporate partnershipwith the National Science Teachers Association(ldquoNSTArdquo) that is designed to assist teachers in edu-cating the countryrsquos youth about the importanceof insects in the environment As a partner we areproviding teaching and instructional materialsdirectly to teachers and through the NSTArsquos website All this behind-the-scenes support is furtherreinforced by offering a ldquoreal liverdquo Orkin Man toprovide in-school presentations

This year the Company was proud to refurbish thepopular O Orkin Insect Zoo at the SmithsonianNational Museum of Natural History in WashingtonDC As one of the most visited exhibits at themuseum we refreshed the Insect Zoo throughnew carpeting insect case restoration and videolighting and sound system enhancement alongwith updating the exhibit graphics We are proudto be the Smithsonianrsquos first identified corporatesponsor and of our ongoing partnership

Rollins continues to promote its strong brand namedomestically and now internationally through thestrategic growth of its franchising program TheCompany currently has 44 franchises includingadding a new international franchise in Panama

Commercial ServicesOrkinrsquos commercial pest control programs enableus to deliver customized service to industries suchas food processing and distribution discount andgrocery retailers fast food healthcare and restau-rants As the nationrsquos largest commercial pestcontrol provider the Company services nationalchains (primarily sold through the Orkin NationalAccounts division) as well as locally-owned busi-nesses A primary goal of the Company is to grownational account revenue at a pace that willenable us to further expand our market share

Orkin introduced the Gold Medal Protection pro-gram in 2003 This custom-designed pest controlservice is targeted to specific high-end customers

The Orkin Brand

2

We see opportunityprimarily in the food manufacturing and processing indus-try The program provides a comprehensive reporting sys-tem that meets federal and state regulatory requirements Italso guarantees free retreatment if the customer is not satis-fied and Orkin commits to paying any regulatory penaltiesas a result of a shortfall in our service

In 2003 Orkin introduced a Pest Control Quality Assuranceprogram nationally to ensure consistent service and tostrengthen the Companyrsquos capabilities in the commercialpest control area This program utilizes floor-level inspectionsby Orkin QA inspectors while accompanied by branchregion and on occasion division management staff A newCommercial Pest Control Expectation Manual has also beendeveloped so branches clearly understand our designatedpractices and materials regarding these specific accountsThe counterpart of this new commercial Pest Control QualityAssurance program was introduced for termite control in1997 and has proven very successful in improving our serviceand customer retention in this segment

Management believes that our commercial pest controlbusiness represents the greatest potential for long-termgrowth and our sales initiatives including a hand-heldcomputer application as well as this quality control pro-gram have been developed with that objective in mind

Residential Services

Pest ControlIn 1999 Orkin began offering a bimonthly pest control serv-ice in addition to the traditional monthly service With theintroduction of longer lasting chemicals service treatmentcould be less frequent and the Company could betterconform to Orkinrsquos customersrsquo busy lifestyles As a resultOrkin today offers a pest control service that is more con-venient and highly effective Initially an Orkin technicianperforms a thorough inspection and designs a customizedplan to rid the home of active pests and their habitatCrack and crevice treatments and baits are used to effec-tively target pests where they live and breed Points of entryare identified and attacked thus creating an exterior pro-tective barrier utilizing time-released materials that helpkeep pests out of the home Regularly scheduled visits by

the technician continue to strengthen the homersquos protec-tive barrier If the need arises between scheduled visits theOrkin technician will return to treat the home inside or outat no additional charge

Recently mosquitoes have become a much greater healthrisk and the spread of the West Nile virus has made thepublic aware that these insects can transmit potentiallydeadly diseases This past summer Orkin began test mar-keting a mosquito control program in the northern UnitedStates and Canada While working to address the threat of mosquito-borne diseases in the US a highly successfulWest Nile virus preventative program was also implementedin Ontario Canada Two provinces were provided thou-sands of larvicide treatments to mosquito breedinggrounds reducing the population of adult mosquitoes andtheir eggs The Company intends to expand the mosquitocontrol program in Canada and other US markets in thespring of 2004

Termite ControlResearch has shown that termites cause more damage toAmerican structures than fires and storms combined Orkinoffers a treatment customized to a homersquos needs thataddresses inside outside and within the foundation Ourdirected liquid and directed liquid plus bait programs havebeen developed in conjunction with the entomology depart-ments at leading universities As a result our approach totreating for subterranean termites has become the stand-ard adopted by most pest control operators today

TrainingIn spring 2003 Orkin was recognized by Training magazineas one of the Top 100 companies to excel in training andemployee development In addition Orkin was one of onlyfive companies selected for the magazinersquos Editorrsquos Choicelist The award is given to select companies that have cre-ated positive learning environments for their workforce

Orkin attained further recognition this year for its trainingachievements by winning first place honors for the BESTAward given by the American Society for Training andDevelopment The Orkin Training Center located in Atlantawas specifically referenced as evidence of the Companyrsquos

Total Revenue by Segment

Total Pest Control752

Residential397

Commercial355

Other15

Termite233

3

dedication to employee performance improvement TheOrkin Training Center has a full-size house and several otherreal examples of building structures where technicians cansee the relationship between pests and home construc-tion They can also simulate pest treatments under thesupervision of qualified instructors In the classrooms tech-nicians acquire guidance in customer relations pest prob-lem solving and advanced technical skills through highlyinteractive instructor-led training

In 2004 the Company plans to expand the Training Centerto include hands-on instructional areas that representactual customer account facilities with additional class-room space and a media production facility

Industry RecognitionIn 2003 Rollinsrsquo President and Chief Executive Officer GaryW Rollins received the National Pest Management Associ-ationrsquos Pinnacle Award which honors a lifetime of dedicationand commitment to the pest management industry GlenRollins who has since been named Orkinrsquos President andChief Operating Officer and Frank Meek National TechnicalManager were honored by Pest Control Technology (ldquoPCTrdquo)magazine as leaders under the age of 40 making a differ-ence in the pest control industry Orkin was also one of onlytwo companies to have more than one representative forPCT magazinersquos ldquo40 Under 40rdquo award which recognizes theindustryrsquos next level of leadership

Orkinrsquos service technicians received similar national distinc-tion as termite technician Kevin McDonald of the ClearwaterFlorida branch was recognized by PCT magazine as Tech-nician of the Year from over 120000 technicians who serveour industry Candidates are nominated and judged oncriteria including years of service recommendations frommanagement referral letters from customers professionaleducation and activity within the community they serveOrkin was further recognized with two other finalists givingthe Company three out of the fifteen top places SteveJankelevich of the South Florida Commercial branch waschosen in the commercial pest control technician categoryand Luis Ayala of the Pittsfield MA branch was selected inthe residential pest control category We are very proud ofthese employees and how they have distinguished them-selves and the Company

New TechnologiesOrkin is leveraging recent investments in technology andprocess improvement to advance business practices in thecommercial business line Re-engineering efforts are tar-geted at enhancing integration between sales customermanagement service delivery and billing processes toprovide a higher level of service to these customers

In 2003 the Company successfully launched its new Intranetwhich provides quick and efficient communications

between the field and home office Significant costsavings are being realized by providing Material Safety

Data Sheets and Product Labels through the MyOrkin

Intranet This is a very important requirement that enablesinstantaneous compliance with state and federal productuse regulations The Orkin Training Department now has astate-of-the-art means to better communicate the availabil-ity of a comprehensive array of training tools and referencematerials through the MyOrkinTraining site The MyOrkinMarketplace another company Intranet address was cre-ated for branches to more efficiently order promotionalproducts and company forms Lastly technical forums areavailable to create a method of sharing knowledge on the web site

Today for the consumer Orkin technical and marketinginformation such as ldquoOrkin Solutions For Your Homerdquo is avail-able through wwworkincom Rollins Inc financial informa-tion such as the latest news releases SEC filings and annualreports is quickly accessible through the Internet via Rollinsrsquoweb site at wwwrollinscom

In 2003 Orkin began outsourcing some of its chemical dis-tribution utilizing new Internet branch systems to easeordering of product Test branch locations are now receiv-ing shipments in two to four days while reducing the carry-ing cost of excess inventory and shipping costs

The GPS technology introduced three years ago hasresulted in improved driver safety and service productionNow newer generation GPS units are being installed thatallow 247 monitoring and reporting of speed locationand seatbelt usage as well as allowing remote updating ofmapping software This technology also details the route aservice technician takes rather than just noting stopsThese units create reports that are easier to read and allowdata to be sent directly to a server with no removable chipto be taken out at the end of the day Although this equip-ment is only being utilized in some of our locations we areoptimistic that it will be a building block to creating a com-prehensive ldquorouting and schedulingrdquo system in the future

As part of our continuous home office process improvementmandate a Human Resources Service Center was estab-lished from three autonomous departments Payroll Benefitsand Human Resources Everything from new-hire paper-work to retirement forms is now available through this newcenter We are pleased that this consolidation has improvedour service to the field while significantly reducing costs

As a company we are improving in a multitude of areassuch as training technology sales management market-ing and alliance development We are committed tobecoming the nationrsquos best service company and feel ouractions show it

4

Rollins Inc Executive Steering Committee

Left Top Michael W Knottek William E Newton L Thomas PorterLeft Bottom Harry J Cynkus Gary W Rollins Glen W Rollins

President and Chief Operating Officer of Orkin Inc and Vice Presidents

Left Top Gary Rowell John Wilson Gary Muldoon Herman BorelLeft Bottom Robert Stevens Steve Drennan Glen W Rollins Presidentand Chief Operating Officer Harry Sargent

Directors

Henry B TippiebullChairman of the Board and Chief Executive Officer of Tippie Services Inc (management services)

R Randall Rollins

Chairman of the Board of Rollins IncChairman of the Board of RPC Inc (oil and gas fieldservices) and Chairman of the Board of Marine ProductsCorporation (boat manufacturing)

Wilton LooneydaggerHonorary Chairman of the Board of Genuine PartsCompany (automotive parts distributor)

James B WilliamsdaggerChairman of the Executive Committee of SunTrust BanksInc (bank holding company)

Gary W RollinsChief Executive Officer President and Chief Operating Officer of Rollins Inc

Bill J DismukeRetired President of Edwards Baking Company

bull Chairman of the Audit Committee Compensation Committee

Nominating and Governance Committee and Diversity Committee

Member of the Executive Committee

daggerMember of the Audit Committee Compensation Committee

Nominating and Governance Committee and Diversity Committee

Officers

R Randall RollinsChairman of the Board

Gary W RollinsChief Executive Officer President and Chief Operating Officer

Michael W KnottekSenior Vice President and Secretary

Harry J CynkusChief Financial Officer and Treasurer

Glen W RollinsVice President

Stockholdersrsquo Information

Annual MeetingThe Annual Meeting of the Stockholders will be held at130 pm Tuesday April 27 2004 at the Companyrsquoscorporate offices in Atlanta Georgia

Transfer Agent and RegistrarFor inquiries related to stock certificates includingchanges of address lost certificates dividends and taxforms please contact

SunTrust BankStock Transfer DepartmentPO Box 4625Atlanta Georgia 30302Telephone 1-800-568-3476

Stock Exchange InformationThe Common Stock of the Company is listed on the New York and Pacific Stock Exchanges and traded on the Philadelphia Chicago and Boston Exchanges underthe symbol ROL

Dividend Reinvestment PlanThis Plan provides a simple convenient and inexpensiveway for stockholders to invest cash dividends in additionalRollins Inc shares For further information contact SunTrustBank at the above address

Corporate OfficesRollins Inc2170 Piedmont Road NEAtlanta Georgia 30324

Mailing AddressRollins IncPO Box 647Atlanta Georgia 30301

Telephone(404) 888-2000

De

sign

ed

by

Cu

rran

amp C

on

no

rs I

nc

w

ww

cu

rran

-co

nn

ors

co

m

You see a pest

Orkinrsquos brand awareness is comparable to FordMotorola and Oscar Mayer and the Companyrsquosnational advertising campaigns play an impor-tant role in preserving as well as building ourbrand awareness

Our new 2004 ldquolocal expertrdquo television and radioadvertising campaign conveys a message thatour people are members of your community andyour neighbors With Orkin you get all the benefitsof a remarkably professional company with our serv-ice performed by people who live where you live

During the past year in order to better under-stand its customers and prospects Rollins initiatedmarket research to help identify specific residentialpest control market segments Three segmentswere determined to provide ideal new customergroups for Orkin These are sectors that theCompany believes offer the best opportunity tocreate long and prosperous relationships All ofthese groups are willing to pay a higher price fora pest control service that meets their needs

They indicated a desire for a companywith a strong positive reputation and onewith the most professional and knowl-

edgeable technicians They also want todo business with a company whose service willbe safe for their children and pets and a firm thatis responsive to their requests These are attributesthat Orkin delivers every day however this valida-tion will enable the Company to do a better jobcommunicating our strengths

The ldquoif it bugs you bug merdquo integrated radio andlocal point-of-sales advertising campaign was

introduced in 2003 This program was aug-mented by creative point-of-sale pieces for theCompanyrsquos service technicians to use ldquoclover

leafingrdquo for new prospects to build routedensity in neighborhoods where they haveexisting clients Orkin is also reaching out in

metro cities to the largest minority groupin the US the Hispanic market with

new Spanish radio spots and col-lateral material

To effectively and efficiently achievesales goals in todayrsquos highly com-

petitive environment our representativeshave a greater need for new technology tohelp them improve their productivity Orkin

began testing automated sales managementsoftware in 2003 This software is currently being

used to track the sales process allowing thepipelines to be easily reviewed to capitalize on

opportunities that are readily identifiable Accountdata statistics contact information future tasksand events are tracked by location with upward

flow to the sales management organization Thereporting and forecasting features also enableManagement to have a better overview andexpectation of the entire network

The Company has also reorganized its marketingdepartment to include BDMs for the operatingdivisions Each BDM is responsible for creating amarket development plan for future customergrowth and retention for their division They pro-vide advocacy by working with local regionaland divisional management to ensure the suc-cess of their team as it relates to sales trainingnew customer marketing and sales achieve-ments

In 2003 Orkin developed a corporate partnershipwith the National Science Teachers Association(ldquoNSTArdquo) that is designed to assist teachers in edu-cating the countryrsquos youth about the importanceof insects in the environment As a partner we areproviding teaching and instructional materialsdirectly to teachers and through the NSTArsquos website All this behind-the-scenes support is furtherreinforced by offering a ldquoreal liverdquo Orkin Man toprovide in-school presentations

This year the Company was proud to refurbish thepopular O Orkin Insect Zoo at the SmithsonianNational Museum of Natural History in WashingtonDC As one of the most visited exhibits at themuseum we refreshed the Insect Zoo throughnew carpeting insect case restoration and videolighting and sound system enhancement alongwith updating the exhibit graphics We are proudto be the Smithsonianrsquos first identified corporatesponsor and of our ongoing partnership

Rollins continues to promote its strong brand namedomestically and now internationally through thestrategic growth of its franchising program TheCompany currently has 44 franchises includingadding a new international franchise in Panama

Commercial ServicesOrkinrsquos commercial pest control programs enableus to deliver customized service to industries suchas food processing and distribution discount andgrocery retailers fast food healthcare and restau-rants As the nationrsquos largest commercial pestcontrol provider the Company services nationalchains (primarily sold through the Orkin NationalAccounts division) as well as locally-owned busi-nesses A primary goal of the Company is to grownational account revenue at a pace that willenable us to further expand our market share

Orkin introduced the Gold Medal Protection pro-gram in 2003 This custom-designed pest controlservice is targeted to specific high-end customers

The Orkin Brand

2

We see opportunityprimarily in the food manufacturing and processing indus-try The program provides a comprehensive reporting sys-tem that meets federal and state regulatory requirements Italso guarantees free retreatment if the customer is not satis-fied and Orkin commits to paying any regulatory penaltiesas a result of a shortfall in our service

In 2003 Orkin introduced a Pest Control Quality Assuranceprogram nationally to ensure consistent service and tostrengthen the Companyrsquos capabilities in the commercialpest control area This program utilizes floor-level inspectionsby Orkin QA inspectors while accompanied by branchregion and on occasion division management staff A newCommercial Pest Control Expectation Manual has also beendeveloped so branches clearly understand our designatedpractices and materials regarding these specific accountsThe counterpart of this new commercial Pest Control QualityAssurance program was introduced for termite control in1997 and has proven very successful in improving our serviceand customer retention in this segment

Management believes that our commercial pest controlbusiness represents the greatest potential for long-termgrowth and our sales initiatives including a hand-heldcomputer application as well as this quality control pro-gram have been developed with that objective in mind

Residential Services

Pest ControlIn 1999 Orkin began offering a bimonthly pest control serv-ice in addition to the traditional monthly service With theintroduction of longer lasting chemicals service treatmentcould be less frequent and the Company could betterconform to Orkinrsquos customersrsquo busy lifestyles As a resultOrkin today offers a pest control service that is more con-venient and highly effective Initially an Orkin technicianperforms a thorough inspection and designs a customizedplan to rid the home of active pests and their habitatCrack and crevice treatments and baits are used to effec-tively target pests where they live and breed Points of entryare identified and attacked thus creating an exterior pro-tective barrier utilizing time-released materials that helpkeep pests out of the home Regularly scheduled visits by

the technician continue to strengthen the homersquos protec-tive barrier If the need arises between scheduled visits theOrkin technician will return to treat the home inside or outat no additional charge

Recently mosquitoes have become a much greater healthrisk and the spread of the West Nile virus has made thepublic aware that these insects can transmit potentiallydeadly diseases This past summer Orkin began test mar-keting a mosquito control program in the northern UnitedStates and Canada While working to address the threat of mosquito-borne diseases in the US a highly successfulWest Nile virus preventative program was also implementedin Ontario Canada Two provinces were provided thou-sands of larvicide treatments to mosquito breedinggrounds reducing the population of adult mosquitoes andtheir eggs The Company intends to expand the mosquitocontrol program in Canada and other US markets in thespring of 2004

Termite ControlResearch has shown that termites cause more damage toAmerican structures than fires and storms combined Orkinoffers a treatment customized to a homersquos needs thataddresses inside outside and within the foundation Ourdirected liquid and directed liquid plus bait programs havebeen developed in conjunction with the entomology depart-ments at leading universities As a result our approach totreating for subterranean termites has become the stand-ard adopted by most pest control operators today

TrainingIn spring 2003 Orkin was recognized by Training magazineas one of the Top 100 companies to excel in training andemployee development In addition Orkin was one of onlyfive companies selected for the magazinersquos Editorrsquos Choicelist The award is given to select companies that have cre-ated positive learning environments for their workforce

Orkin attained further recognition this year for its trainingachievements by winning first place honors for the BESTAward given by the American Society for Training andDevelopment The Orkin Training Center located in Atlantawas specifically referenced as evidence of the Companyrsquos

Total Revenue by Segment

Total Pest Control752

Residential397

Commercial355

Other15

Termite233

3

dedication to employee performance improvement TheOrkin Training Center has a full-size house and several otherreal examples of building structures where technicians cansee the relationship between pests and home construc-tion They can also simulate pest treatments under thesupervision of qualified instructors In the classrooms tech-nicians acquire guidance in customer relations pest prob-lem solving and advanced technical skills through highlyinteractive instructor-led training

In 2004 the Company plans to expand the Training Centerto include hands-on instructional areas that representactual customer account facilities with additional class-room space and a media production facility

Industry RecognitionIn 2003 Rollinsrsquo President and Chief Executive Officer GaryW Rollins received the National Pest Management Associ-ationrsquos Pinnacle Award which honors a lifetime of dedicationand commitment to the pest management industry GlenRollins who has since been named Orkinrsquos President andChief Operating Officer and Frank Meek National TechnicalManager were honored by Pest Control Technology (ldquoPCTrdquo)magazine as leaders under the age of 40 making a differ-ence in the pest control industry Orkin was also one of onlytwo companies to have more than one representative forPCT magazinersquos ldquo40 Under 40rdquo award which recognizes theindustryrsquos next level of leadership

Orkinrsquos service technicians received similar national distinc-tion as termite technician Kevin McDonald of the ClearwaterFlorida branch was recognized by PCT magazine as Tech-nician of the Year from over 120000 technicians who serveour industry Candidates are nominated and judged oncriteria including years of service recommendations frommanagement referral letters from customers professionaleducation and activity within the community they serveOrkin was further recognized with two other finalists givingthe Company three out of the fifteen top places SteveJankelevich of the South Florida Commercial branch waschosen in the commercial pest control technician categoryand Luis Ayala of the Pittsfield MA branch was selected inthe residential pest control category We are very proud ofthese employees and how they have distinguished them-selves and the Company

New TechnologiesOrkin is leveraging recent investments in technology andprocess improvement to advance business practices in thecommercial business line Re-engineering efforts are tar-geted at enhancing integration between sales customermanagement service delivery and billing processes toprovide a higher level of service to these customers

In 2003 the Company successfully launched its new Intranetwhich provides quick and efficient communications

between the field and home office Significant costsavings are being realized by providing Material Safety

Data Sheets and Product Labels through the MyOrkin

Intranet This is a very important requirement that enablesinstantaneous compliance with state and federal productuse regulations The Orkin Training Department now has astate-of-the-art means to better communicate the availabil-ity of a comprehensive array of training tools and referencematerials through the MyOrkinTraining site The MyOrkinMarketplace another company Intranet address was cre-ated for branches to more efficiently order promotionalproducts and company forms Lastly technical forums areavailable to create a method of sharing knowledge on the web site

Today for the consumer Orkin technical and marketinginformation such as ldquoOrkin Solutions For Your Homerdquo is avail-able through wwworkincom Rollins Inc financial informa-tion such as the latest news releases SEC filings and annualreports is quickly accessible through the Internet via Rollinsrsquoweb site at wwwrollinscom

In 2003 Orkin began outsourcing some of its chemical dis-tribution utilizing new Internet branch systems to easeordering of product Test branch locations are now receiv-ing shipments in two to four days while reducing the carry-ing cost of excess inventory and shipping costs

The GPS technology introduced three years ago hasresulted in improved driver safety and service productionNow newer generation GPS units are being installed thatallow 247 monitoring and reporting of speed locationand seatbelt usage as well as allowing remote updating ofmapping software This technology also details the route aservice technician takes rather than just noting stopsThese units create reports that are easier to read and allowdata to be sent directly to a server with no removable chipto be taken out at the end of the day Although this equip-ment is only being utilized in some of our locations we areoptimistic that it will be a building block to creating a com-prehensive ldquorouting and schedulingrdquo system in the future

As part of our continuous home office process improvementmandate a Human Resources Service Center was estab-lished from three autonomous departments Payroll Benefitsand Human Resources Everything from new-hire paper-work to retirement forms is now available through this newcenter We are pleased that this consolidation has improvedour service to the field while significantly reducing costs

As a company we are improving in a multitude of areassuch as training technology sales management market-ing and alliance development We are committed tobecoming the nationrsquos best service company and feel ouractions show it

4

Rollins Inc Executive Steering Committee

Left Top Michael W Knottek William E Newton L Thomas PorterLeft Bottom Harry J Cynkus Gary W Rollins Glen W Rollins

President and Chief Operating Officer of Orkin Inc and Vice Presidents

Left Top Gary Rowell John Wilson Gary Muldoon Herman BorelLeft Bottom Robert Stevens Steve Drennan Glen W Rollins Presidentand Chief Operating Officer Harry Sargent

Directors

Henry B TippiebullChairman of the Board and Chief Executive Officer of Tippie Services Inc (management services)

R Randall Rollins

Chairman of the Board of Rollins IncChairman of the Board of RPC Inc (oil and gas fieldservices) and Chairman of the Board of Marine ProductsCorporation (boat manufacturing)

Wilton LooneydaggerHonorary Chairman of the Board of Genuine PartsCompany (automotive parts distributor)

James B WilliamsdaggerChairman of the Executive Committee of SunTrust BanksInc (bank holding company)

Gary W RollinsChief Executive Officer President and Chief Operating Officer of Rollins Inc

Bill J DismukeRetired President of Edwards Baking Company

bull Chairman of the Audit Committee Compensation Committee

Nominating and Governance Committee and Diversity Committee

Member of the Executive Committee

daggerMember of the Audit Committee Compensation Committee

Nominating and Governance Committee and Diversity Committee

Officers

R Randall RollinsChairman of the Board

Gary W RollinsChief Executive Officer President and Chief Operating Officer

Michael W KnottekSenior Vice President and Secretary

Harry J CynkusChief Financial Officer and Treasurer

Glen W RollinsVice President

Stockholdersrsquo Information

Annual MeetingThe Annual Meeting of the Stockholders will be held at130 pm Tuesday April 27 2004 at the Companyrsquoscorporate offices in Atlanta Georgia

Transfer Agent and RegistrarFor inquiries related to stock certificates includingchanges of address lost certificates dividends and taxforms please contact

SunTrust BankStock Transfer DepartmentPO Box 4625Atlanta Georgia 30302Telephone 1-800-568-3476

Stock Exchange InformationThe Common Stock of the Company is listed on the New York and Pacific Stock Exchanges and traded on the Philadelphia Chicago and Boston Exchanges underthe symbol ROL

Dividend Reinvestment PlanThis Plan provides a simple convenient and inexpensiveway for stockholders to invest cash dividends in additionalRollins Inc shares For further information contact SunTrustBank at the above address

Corporate OfficesRollins Inc2170 Piedmont Road NEAtlanta Georgia 30324

Mailing AddressRollins IncPO Box 647Atlanta Georgia 30301

Telephone(404) 888-2000

De

sign

ed

by

Cu

rran

amp C

on

no

rs I

nc

w

ww

cu

rran

-co

nn

ors

co

m

We see opportunityprimarily in the food manufacturing and processing indus-try The program provides a comprehensive reporting sys-tem that meets federal and state regulatory requirements Italso guarantees free retreatment if the customer is not satis-fied and Orkin commits to paying any regulatory penaltiesas a result of a shortfall in our service

In 2003 Orkin introduced a Pest Control Quality Assuranceprogram nationally to ensure consistent service and tostrengthen the Companyrsquos capabilities in the commercialpest control area This program utilizes floor-level inspectionsby Orkin QA inspectors while accompanied by branchregion and on occasion division management staff A newCommercial Pest Control Expectation Manual has also beendeveloped so branches clearly understand our designatedpractices and materials regarding these specific accountsThe counterpart of this new commercial Pest Control QualityAssurance program was introduced for termite control in1997 and has proven very successful in improving our serviceand customer retention in this segment

Management believes that our commercial pest controlbusiness represents the greatest potential for long-termgrowth and our sales initiatives including a hand-heldcomputer application as well as this quality control pro-gram have been developed with that objective in mind

Residential Services

Pest ControlIn 1999 Orkin began offering a bimonthly pest control serv-ice in addition to the traditional monthly service With theintroduction of longer lasting chemicals service treatmentcould be less frequent and the Company could betterconform to Orkinrsquos customersrsquo busy lifestyles As a resultOrkin today offers a pest control service that is more con-venient and highly effective Initially an Orkin technicianperforms a thorough inspection and designs a customizedplan to rid the home of active pests and their habitatCrack and crevice treatments and baits are used to effec-tively target pests where they live and breed Points of entryare identified and attacked thus creating an exterior pro-tective barrier utilizing time-released materials that helpkeep pests out of the home Regularly scheduled visits by

the technician continue to strengthen the homersquos protec-tive barrier If the need arises between scheduled visits theOrkin technician will return to treat the home inside or outat no additional charge

Recently mosquitoes have become a much greater healthrisk and the spread of the West Nile virus has made thepublic aware that these insects can transmit potentiallydeadly diseases This past summer Orkin began test mar-keting a mosquito control program in the northern UnitedStates and Canada While working to address the threat of mosquito-borne diseases in the US a highly successfulWest Nile virus preventative program was also implementedin Ontario Canada Two provinces were provided thou-sands of larvicide treatments to mosquito breedinggrounds reducing the population of adult mosquitoes andtheir eggs The Company intends to expand the mosquitocontrol program in Canada and other US markets in thespring of 2004

Termite ControlResearch has shown that termites cause more damage toAmerican structures than fires and storms combined Orkinoffers a treatment customized to a homersquos needs thataddresses inside outside and within the foundation Ourdirected liquid and directed liquid plus bait programs havebeen developed in conjunction with the entomology depart-ments at leading universities As a result our approach totreating for subterranean termites has become the stand-ard adopted by most pest control operators today

TrainingIn spring 2003 Orkin was recognized by Training magazineas one of the Top 100 companies to excel in training andemployee development In addition Orkin was one of onlyfive companies selected for the magazinersquos Editorrsquos Choicelist The award is given to select companies that have cre-ated positive learning environments for their workforce

Orkin attained further recognition this year for its trainingachievements by winning first place honors for the BESTAward given by the American Society for Training andDevelopment The Orkin Training Center located in Atlantawas specifically referenced as evidence of the Companyrsquos

Total Revenue by Segment

Total Pest Control752

Residential397

Commercial355

Other15

Termite233

3

dedication to employee performance improvement TheOrkin Training Center has a full-size house and several otherreal examples of building structures where technicians cansee the relationship between pests and home construc-tion They can also simulate pest treatments under thesupervision of qualified instructors In the classrooms tech-nicians acquire guidance in customer relations pest prob-lem solving and advanced technical skills through highlyinteractive instructor-led training

In 2004 the Company plans to expand the Training Centerto include hands-on instructional areas that representactual customer account facilities with additional class-room space and a media production facility

Industry RecognitionIn 2003 Rollinsrsquo President and Chief Executive Officer GaryW Rollins received the National Pest Management Associ-ationrsquos Pinnacle Award which honors a lifetime of dedicationand commitment to the pest management industry GlenRollins who has since been named Orkinrsquos President andChief Operating Officer and Frank Meek National TechnicalManager were honored by Pest Control Technology (ldquoPCTrdquo)magazine as leaders under the age of 40 making a differ-ence in the pest control industry Orkin was also one of onlytwo companies to have more than one representative forPCT magazinersquos ldquo40 Under 40rdquo award which recognizes theindustryrsquos next level of leadership

Orkinrsquos service technicians received similar national distinc-tion as termite technician Kevin McDonald of the ClearwaterFlorida branch was recognized by PCT magazine as Tech-nician of the Year from over 120000 technicians who serveour industry Candidates are nominated and judged oncriteria including years of service recommendations frommanagement referral letters from customers professionaleducation and activity within the community they serveOrkin was further recognized with two other finalists givingthe Company three out of the fifteen top places SteveJankelevich of the South Florida Commercial branch waschosen in the commercial pest control technician categoryand Luis Ayala of the Pittsfield MA branch was selected inthe residential pest control category We are very proud ofthese employees and how they have distinguished them-selves and the Company

New TechnologiesOrkin is leveraging recent investments in technology andprocess improvement to advance business practices in thecommercial business line Re-engineering efforts are tar-geted at enhancing integration between sales customermanagement service delivery and billing processes toprovide a higher level of service to these customers

In 2003 the Company successfully launched its new Intranetwhich provides quick and efficient communications

between the field and home office Significant costsavings are being realized by providing Material Safety

Data Sheets and Product Labels through the MyOrkin

Intranet This is a very important requirement that enablesinstantaneous compliance with state and federal productuse regulations The Orkin Training Department now has astate-of-the-art means to better communicate the availabil-ity of a comprehensive array of training tools and referencematerials through the MyOrkinTraining site The MyOrkinMarketplace another company Intranet address was cre-ated for branches to more efficiently order promotionalproducts and company forms Lastly technical forums areavailable to create a method of sharing knowledge on the web site

Today for the consumer Orkin technical and marketinginformation such as ldquoOrkin Solutions For Your Homerdquo is avail-able through wwworkincom Rollins Inc financial informa-tion such as the latest news releases SEC filings and annualreports is quickly accessible through the Internet via Rollinsrsquoweb site at wwwrollinscom

In 2003 Orkin began outsourcing some of its chemical dis-tribution utilizing new Internet branch systems to easeordering of product Test branch locations are now receiv-ing shipments in two to four days while reducing the carry-ing cost of excess inventory and shipping costs

The GPS technology introduced three years ago hasresulted in improved driver safety and service productionNow newer generation GPS units are being installed thatallow 247 monitoring and reporting of speed locationand seatbelt usage as well as allowing remote updating ofmapping software This technology also details the route aservice technician takes rather than just noting stopsThese units create reports that are easier to read and allowdata to be sent directly to a server with no removable chipto be taken out at the end of the day Although this equip-ment is only being utilized in some of our locations we areoptimistic that it will be a building block to creating a com-prehensive ldquorouting and schedulingrdquo system in the future

As part of our continuous home office process improvementmandate a Human Resources Service Center was estab-lished from three autonomous departments Payroll Benefitsand Human Resources Everything from new-hire paper-work to retirement forms is now available through this newcenter We are pleased that this consolidation has improvedour service to the field while significantly reducing costs

As a company we are improving in a multitude of areassuch as training technology sales management market-ing and alliance development We are committed tobecoming the nationrsquos best service company and feel ouractions show it

4

Rollins Inc Executive Steering Committee

Left Top Michael W Knottek William E Newton L Thomas PorterLeft Bottom Harry J Cynkus Gary W Rollins Glen W Rollins

President and Chief Operating Officer of Orkin Inc and Vice Presidents

Left Top Gary Rowell John Wilson Gary Muldoon Herman BorelLeft Bottom Robert Stevens Steve Drennan Glen W Rollins Presidentand Chief Operating Officer Harry Sargent

Directors

Henry B TippiebullChairman of the Board and Chief Executive Officer of Tippie Services Inc (management services)

R Randall Rollins

Chairman of the Board of Rollins IncChairman of the Board of RPC Inc (oil and gas fieldservices) and Chairman of the Board of Marine ProductsCorporation (boat manufacturing)

Wilton LooneydaggerHonorary Chairman of the Board of Genuine PartsCompany (automotive parts distributor)

James B WilliamsdaggerChairman of the Executive Committee of SunTrust BanksInc (bank holding company)

Gary W RollinsChief Executive Officer President and Chief Operating Officer of Rollins Inc

Bill J DismukeRetired President of Edwards Baking Company

bull Chairman of the Audit Committee Compensation Committee

Nominating and Governance Committee and Diversity Committee

Member of the Executive Committee

daggerMember of the Audit Committee Compensation Committee

Nominating and Governance Committee and Diversity Committee

Officers

R Randall RollinsChairman of the Board

Gary W RollinsChief Executive Officer President and Chief Operating Officer

Michael W KnottekSenior Vice President and Secretary

Harry J CynkusChief Financial Officer and Treasurer

Glen W RollinsVice President

Stockholdersrsquo Information

Annual MeetingThe Annual Meeting of the Stockholders will be held at130 pm Tuesday April 27 2004 at the Companyrsquoscorporate offices in Atlanta Georgia

Transfer Agent and RegistrarFor inquiries related to stock certificates includingchanges of address lost certificates dividends and taxforms please contact

SunTrust BankStock Transfer DepartmentPO Box 4625Atlanta Georgia 30302Telephone 1-800-568-3476

Stock Exchange InformationThe Common Stock of the Company is listed on the New York and Pacific Stock Exchanges and traded on the Philadelphia Chicago and Boston Exchanges underthe symbol ROL

Dividend Reinvestment PlanThis Plan provides a simple convenient and inexpensiveway for stockholders to invest cash dividends in additionalRollins Inc shares For further information contact SunTrustBank at the above address

Corporate OfficesRollins Inc2170 Piedmont Road NEAtlanta Georgia 30324

Mailing AddressRollins IncPO Box 647Atlanta Georgia 30301

Telephone(404) 888-2000

De

sign

ed

by

Cu

rran

amp C

on

no

rs I

nc

w

ww

cu

rran

-co

nn

ors

co

m

dedication to employee performance improvement TheOrkin Training Center has a full-size house and several otherreal examples of building structures where technicians cansee the relationship between pests and home construc-tion They can also simulate pest treatments under thesupervision of qualified instructors In the classrooms tech-nicians acquire guidance in customer relations pest prob-lem solving and advanced technical skills through highlyinteractive instructor-led training

In 2004 the Company plans to expand the Training Centerto include hands-on instructional areas that representactual customer account facilities with additional class-room space and a media production facility

Industry RecognitionIn 2003 Rollinsrsquo President and Chief Executive Officer GaryW Rollins received the National Pest Management Associ-ationrsquos Pinnacle Award which honors a lifetime of dedicationand commitment to the pest management industry GlenRollins who has since been named Orkinrsquos President andChief Operating Officer and Frank Meek National TechnicalManager were honored by Pest Control Technology (ldquoPCTrdquo)magazine as leaders under the age of 40 making a differ-ence in the pest control industry Orkin was also one of onlytwo companies to have more than one representative forPCT magazinersquos ldquo40 Under 40rdquo award which recognizes theindustryrsquos next level of leadership

Orkinrsquos service technicians received similar national distinc-tion as termite technician Kevin McDonald of the ClearwaterFlorida branch was recognized by PCT magazine as Tech-nician of the Year from over 120000 technicians who serveour industry Candidates are nominated and judged oncriteria including years of service recommendations frommanagement referral letters from customers professionaleducation and activity within the community they serveOrkin was further recognized with two other finalists givingthe Company three out of the fifteen top places SteveJankelevich of the South Florida Commercial branch waschosen in the commercial pest control technician categoryand Luis Ayala of the Pittsfield MA branch was selected inthe residential pest control category We are very proud ofthese employees and how they have distinguished them-selves and the Company

New TechnologiesOrkin is leveraging recent investments in technology andprocess improvement to advance business practices in thecommercial business line Re-engineering efforts are tar-geted at enhancing integration between sales customermanagement service delivery and billing processes toprovide a higher level of service to these customers

In 2003 the Company successfully launched its new Intranetwhich provides quick and efficient communications

between the field and home office Significant costsavings are being realized by providing Material Safety

Data Sheets and Product Labels through the MyOrkin

Intranet This is a very important requirement that enablesinstantaneous compliance with state and federal productuse regulations The Orkin Training Department now has astate-of-the-art means to better communicate the availabil-ity of a comprehensive array of training tools and referencematerials through the MyOrkinTraining site The MyOrkinMarketplace another company Intranet address was cre-ated for branches to more efficiently order promotionalproducts and company forms Lastly technical forums areavailable to create a method of sharing knowledge on the web site

Today for the consumer Orkin technical and marketinginformation such as ldquoOrkin Solutions For Your Homerdquo is avail-able through wwworkincom Rollins Inc financial informa-tion such as the latest news releases SEC filings and annualreports is quickly accessible through the Internet via Rollinsrsquoweb site at wwwrollinscom

In 2003 Orkin began outsourcing some of its chemical dis-tribution utilizing new Internet branch systems to easeordering of product Test branch locations are now receiv-ing shipments in two to four days while reducing the carry-ing cost of excess inventory and shipping costs

The GPS technology introduced three years ago hasresulted in improved driver safety and service productionNow newer generation GPS units are being installed thatallow 247 monitoring and reporting of speed locationand seatbelt usage as well as allowing remote updating ofmapping software This technology also details the route aservice technician takes rather than just noting stopsThese units create reports that are easier to read and allowdata to be sent directly to a server with no removable chipto be taken out at the end of the day Although this equip-ment is only being utilized in some of our locations we areoptimistic that it will be a building block to creating a com-prehensive ldquorouting and schedulingrdquo system in the future

As part of our continuous home office process improvementmandate a Human Resources Service Center was estab-lished from three autonomous departments Payroll Benefitsand Human Resources Everything from new-hire paper-work to retirement forms is now available through this newcenter We are pleased that this consolidation has improvedour service to the field while significantly reducing costs

As a company we are improving in a multitude of areassuch as training technology sales management market-ing and alliance development We are committed tobecoming the nationrsquos best service company and feel ouractions show it

4

Rollins Inc Executive Steering Committee

Left Top Michael W Knottek William E Newton L Thomas PorterLeft Bottom Harry J Cynkus Gary W Rollins Glen W Rollins

President and Chief Operating Officer of Orkin Inc and Vice Presidents

Left Top Gary Rowell John Wilson Gary Muldoon Herman BorelLeft Bottom Robert Stevens Steve Drennan Glen W Rollins Presidentand Chief Operating Officer Harry Sargent

Directors

Henry B TippiebullChairman of the Board and Chief Executive Officer of Tippie Services Inc (management services)

R Randall Rollins

Chairman of the Board of Rollins IncChairman of the Board of RPC Inc (oil and gas fieldservices) and Chairman of the Board of Marine ProductsCorporation (boat manufacturing)

Wilton LooneydaggerHonorary Chairman of the Board of Genuine PartsCompany (automotive parts distributor)

James B WilliamsdaggerChairman of the Executive Committee of SunTrust BanksInc (bank holding company)

Gary W RollinsChief Executive Officer President and Chief Operating Officer of Rollins Inc

Bill J DismukeRetired President of Edwards Baking Company

bull Chairman of the Audit Committee Compensation Committee

Nominating and Governance Committee and Diversity Committee

Member of the Executive Committee

daggerMember of the Audit Committee Compensation Committee

Nominating and Governance Committee and Diversity Committee

Officers

R Randall RollinsChairman of the Board

Gary W RollinsChief Executive Officer President and Chief Operating Officer

Michael W KnottekSenior Vice President and Secretary

Harry J CynkusChief Financial Officer and Treasurer

Glen W RollinsVice President

Stockholdersrsquo Information

Annual MeetingThe Annual Meeting of the Stockholders will be held at130 pm Tuesday April 27 2004 at the Companyrsquoscorporate offices in Atlanta Georgia

Transfer Agent and RegistrarFor inquiries related to stock certificates includingchanges of address lost certificates dividends and taxforms please contact

SunTrust BankStock Transfer DepartmentPO Box 4625Atlanta Georgia 30302Telephone 1-800-568-3476

Stock Exchange InformationThe Common Stock of the Company is listed on the New York and Pacific Stock Exchanges and traded on the Philadelphia Chicago and Boston Exchanges underthe symbol ROL

Dividend Reinvestment PlanThis Plan provides a simple convenient and inexpensiveway for stockholders to invest cash dividends in additionalRollins Inc shares For further information contact SunTrustBank at the above address

Corporate OfficesRollins Inc2170 Piedmont Road NEAtlanta Georgia 30324

Mailing AddressRollins IncPO Box 647Atlanta Georgia 30301

Telephone(404) 888-2000

De

sign

ed

by

Cu

rran

amp C

on

no

rs I

nc

w

ww

cu

rran

-co

nn

ors

co

m

Rollins Inc Executive Steering Committee

Left Top Michael W Knottek William E Newton L Thomas PorterLeft Bottom Harry J Cynkus Gary W Rollins Glen W Rollins

President and Chief Operating Officer of Orkin Inc and Vice Presidents

Left Top Gary Rowell John Wilson Gary Muldoon Herman BorelLeft Bottom Robert Stevens Steve Drennan Glen W Rollins Presidentand Chief Operating Officer Harry Sargent

Directors

Henry B TippiebullChairman of the Board and Chief Executive Officer of Tippie Services Inc (management services)

R Randall Rollins

Chairman of the Board of Rollins IncChairman of the Board of RPC Inc (oil and gas fieldservices) and Chairman of the Board of Marine ProductsCorporation (boat manufacturing)

Wilton LooneydaggerHonorary Chairman of the Board of Genuine PartsCompany (automotive parts distributor)

James B WilliamsdaggerChairman of the Executive Committee of SunTrust BanksInc (bank holding company)

Gary W RollinsChief Executive Officer President and Chief Operating Officer of Rollins Inc

Bill J DismukeRetired President of Edwards Baking Company

bull Chairman of the Audit Committee Compensation Committee

Nominating and Governance Committee and Diversity Committee

Member of the Executive Committee

daggerMember of the Audit Committee Compensation Committee

Nominating and Governance Committee and Diversity Committee

Officers

R Randall RollinsChairman of the Board

Gary W RollinsChief Executive Officer President and Chief Operating Officer

Michael W KnottekSenior Vice President and Secretary

Harry J CynkusChief Financial Officer and Treasurer

Glen W RollinsVice President

Stockholdersrsquo Information

Annual MeetingThe Annual Meeting of the Stockholders will be held at130 pm Tuesday April 27 2004 at the Companyrsquoscorporate offices in Atlanta Georgia

Transfer Agent and RegistrarFor inquiries related to stock certificates includingchanges of address lost certificates dividends and taxforms please contact

SunTrust BankStock Transfer DepartmentPO Box 4625Atlanta Georgia 30302Telephone 1-800-568-3476

Stock Exchange InformationThe Common Stock of the Company is listed on the New York and Pacific Stock Exchanges and traded on the Philadelphia Chicago and Boston Exchanges underthe symbol ROL

Dividend Reinvestment PlanThis Plan provides a simple convenient and inexpensiveway for stockholders to invest cash dividends in additionalRollins Inc shares For further information contact SunTrustBank at the above address

Corporate OfficesRollins Inc2170 Piedmont Road NEAtlanta Georgia 30324

Mailing AddressRollins IncPO Box 647Atlanta Georgia 30301

Telephone(404) 888-2000

De

sign

ed

by

Cu

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no

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w

ww

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ors

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m

Rollins Inc2170 Piedmont Road NE

Atlanta Georgia 30324wwwrollinscom