Beginning this annual report is a letter to OCLC members from OCLC President and Chief Executive Jay Jordan. The report contains the following sections: (1) program and financial highlights; (2) the year in review, including membership events, online services, strategic alliances, Forest Press, preservation resources, research, and the OCLC Institute; (3) "Celebrating 20 Years of Library Resource Sharing," a report on an essay contest to celebrate the 20th anniversary of the OCLC Interlibrary Loan service; (4) "It's a Great Time for Libraries!" including reports on the CORC (Cooperative Online Resource Catalog) project, statewide integrated services in Florida, innovations in cataloging, promoting global librarianship, transforming resource sharing, preservation resources, the OCLC Institute, the Dewey Decimal Classification System, and OCLC/WLN (Washington Library Network); (5) WorldCat; (6) photographs/listings of Board of Trustees, Executive Committee, OCLC Users Council, and advisory committee members; (7) a directory; and (8) financial report. (MES)