How We Operate, the band's fifth studio album, was released in May, 2006. For the first time, the band worked with a producer, Gil Norton, and the album was developed in the band's studio in Portsland before being recorded at RAK Studios in London. This was the band’s first studio release on ATO Records. How We
Operate features the tracks "How We Operate", "Girlshapedlovedrug", and "See the World".

Tracklisting:

1. Notice See the World
   
2. How We Operate
   
3.  Hamoa Beach
4. Girlshapedlovedrug
   
5. Chasing Ghosts with Alcohol
   
6. Tear Your Love Apart
   
7. Charley Patton Songs
   
8. Woman! Man!
   
9. All Too Much
10.  Cry on Demand
    
11.  Don't Make Me Laugh