This document provides a summary of the past two years of success within the University of North Carolina, years marked by the construction program funded by the $2.5 billion Bond Program that will, when completed and combined with campus building projects, result in $3.8 billion of new or renovated facilities on UNC campuses. The amount of external research funding coming to UNC institutions has grown by 121 percent during the decade, and in 2002-2003 UNC brought $941 million to the state, creating jobs and opportunity as well as intellectual capital. The enrollment of ethnic minority students has increased at UNC institutions by 48 percent in the last decade, contributing to closing the achievement gap that has persisted for so long in this state. The creation of Pathways and its merger with the College Foundation of North Carolina (CFNC) brings the possibility of college to all North Carolina students, and the $7.38 million GEAR UP grant received by the Office of the President in addition to GEAR UP grants received by several campuses is increasing the likelihood of full participation of the state?s youth in higher education. UNC leads a partnership that has received a joint award from the National Science Foundation and the U.S. Department of Education of $21 million dollars to assist seventeen school districts in eastern North Carolina to improve teaching and learning in math and science and reduce the achievement gap.