The research enterprise of Cornell University has been exceptionally successful in the past year. Cornell attracted a record level of funding with increases in sponsored support in all of our colleges. Moreover, the two Cornell research centers with the largest amount of funding--LEPP, the Laboratory for Elementary-Particle Physics (formerly LNS, the Laboratory of Nuclear Studies), and CHESS, the Cornell High Energy Synchrotron Source--had successful renewals. Both are funded by the National Science Foundation. They had thorough reviews and were granted increased funding for another five years. Plans for a major initiative in the "New Life Sciences" are on track for the development of important new research programs. Cornell's new Duffield Hall is well on the way to completion. The facility will provide vitally needed new resources for Cornell's renowned nanostructure science and technology.