Data address police cautions, court proceedings, and customs and excise "compounding" for drug offenses; compounding refers to payment made in a compound settlement in lieu of prosecution for minor cannabis possession offenses. In 2003, the number of drug offenses in England and Wales rose to 133,970, a 5-percent increase from 2002. Class A offenses numbered 35,610 (6-percent increase); class B offenses were 94,520 (5-percent increase); and class C offenses decreased 2 percent to 1,660. A total of 110,640 people were found guilty or were cautioned for drug offenses in 2003. Ninety percent were known to have committed possession offenses, with 70 percent of drug offenders having committed cannabis possession offenses; 7 percent heroin possession; and 5 percent cocaine possession. The most common dispositions for possession offenders in 2003 were cautions (45 percent), fines (26 percent), and absolute or conditional discharge (11 percent). Approximately 10 percent of all drug offenders in 2003 had committed dealing offenses. Cannabis and heroin dealing each accounted for 3 percent of drug offenders; cocaine dealing accounted for 2 percent. The most common dispositions for dealing offenders in 2003 were immediate custody (60 percent) and combination community rehabilitation or community punishment orders (19 percent). Fewer women than men were cautioned or found guilty for drug offenses. Among those found guilty or cautioned for drug offenses, possession offenses tended to be committed by younger people, dealing offenses by slightly older offenders, and production/import/export offenses by much older people. 3 tables and 5 figures