In 2007, Genentech safety performance improved on our key safety metrics, the Injury/Illness Incident Rate (IIR) and the Days Away/Restricted Time Rate (DART), which are both defined below the following graph.

Our Four-Year Safety Performance Improvement As illustrated in the following graph, both Genentech's IIR and DART have been declining over the last four years. This means that adverse safety incidents, both moderate and severe, are happening less and less frequently.

Genentech IIR and DART

The IIR is the rate of injury or illness cases that require medical attention beyond first aid. Commonly referred to as the "Recordable Rate," this is the standard metric that has been used by the U.S. Occupational Safety and Health Administration (OSHA) for many years and can easily be compared across similar companies. The IIR is useful for assessing the frequency of work-related injuries and illness, identifying high-risk activities and taking practical preventive actions to prevent injuries from occurring.

The DART is the rate of injury or illness cases that result in employees missing one or more days of work (lost time), or working at less than full potential (restricted time). The DART is useful in assessing the severity of those injuries and illnesses so that risk mitigation measures can be effectively prioritized.

Both IIR and DART are metrics of the rate of incidents per a 100-person population. For instance, an IIR of 5 would indicate that 5 out of 100 employees experienced an injury or illness requiring medical attention beyond first aid over the time period measured.

It is useful to compare Genentech's safety statistics with other companies that have similar risk profiles from the same industrial sector. Genentech generally compares IIR against two sources:

• The national average for the biological pharmaceutical products manufacturing industry (NAICS Code 325414), compiled by the U.S. Bureau of Labor Statistics (BLS)
• The average of a select pool of industry peers ("Peers," in the graph below) with whom Genentech coordinates on safety management practices

The graph below shows that Genentech's IIR is approximately half the rate of the national average for the biological pharmaceutical products manufacturing industry and that our IIR's performance is in line with our benchmark group of industry safety performance leaders.

Benchmarking Genentech Injury/Illness Incident Rate