NEWSLETTER. GROUP LAW Law Firm Hukuk Bürosu

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1 V O L U M E 3 I S S U E CONTENTS PAGES GROUP LAW FIRM UP- DATES PPP FEATURES & PRI- VATIZATION HIGHLISHT ENERGY SECTOR UP- DATES GROUP LAW COMPETITION NEWS 9 M&A. BANKING AND FINANCE UPDATES MISCELLANEOUS 11 GROUP LAW FIRM UPDATES Group Law Firm Enters in Tender for Consulting Services for the Energy Efficiency in Turkey Group Law Firm is very proud to announce that Firm has entered in the tender of consulting services for the energy efficiency in Turkey. The Firm has joined forces together with Corfis Consulting, Ecorys Turkey and Ecofys for the tender under the General Director for EU Affairs and Foreign Relation of the Ministry of Energy and Natural Resources (MENR).The Consortium ofecorys (International all-around consultancy company), Ecofys (world leading sustainable energy consultancy), Corfis Consulting (a dynamic Consultancy Company offering policy analysis, policy development, and strategy development services to public and private institutions) and Group Law Firm have expressed its interest for EU/IPA energy sector TA project. Group Law Firms has been playing a key role, and acting for bidders, institutions and lenders for a number projects in energy sector in Turkey. The specific objective of the consulting services is to provide further technical assistance on market development in the industrial and building sectors and capacity building for commercial energy efficiency lending market. The duration of Services is envisaged as 18 months. On this occasion, Partner of Group Law Firm, Av. Ayşen ARAS said, we are delighted with recent announcement for participation of the consortium in energy sector project. Our legal team has extensive experience in providing legal consultancy for the bidders in all phases. We are already acting for Phase 3 bidders in particular on a significant energy project. We will gladly bring our experience for the consortium to achieve its goal. Group Law Firm Listed among Top 3 Turkish Law Firms Legal 500

2 P A G E 2 Significant investments in Turkey s railway network will be realized over the next 10 years, which will increase the length of the network to 26,000 kilometers, nearly double that of today s 12,000 km. High-speed lines are expected to constitute 10,000 kilometers of the total. There are currently 29 enterprises and facilities whose privatization has been approved for a total of $4.2 billion, although their sale is still at the signing stage. PPP FEATURES AND PRIVATIZATION HIGHLIGHTS A Record Tender for Purchase of 106 New Trains by Turkish State Railways Gets Under Way Ending years of state monopoly on railway operations, Turkey is set to announce a record tender for total of 106 train units worth 6 billion Turkish Liras. The recent opening of the country s railways to the private sector has turned global rail giants attention to Turkey and its rapidly-expanding railway network. "The tender will include a total of 106 train units. As it is such a big tender, we will include the condition of establishing a train factory in Turkey and impose a 51 percent minimum local purchasing condition, director Turkish State Railways Süleyman Karaman said. He pointed out that the tender has been approved by the the Development Ministry's and awaiting a last green light from the Council of Ministers, adding that the German giant Siemens and a number of Italian firms were showing interest in the tender. "We are planning to organize the tender in two or three months," Karaman told. Turkey is currently renewing its train rail transportation system within the framework of a new development plan. Transport Minister Binali Yıldırım announced last month that at least 2,500 kilometers of high-speed rail line would be built in the next five years to connect 14 different cities. Regarding the under-construction Istanbul-Ankara high-speed railway, Karaman said that once the new rail lines were built and the trains were operational, they would adopt a price policy "cheaper than planes and more expensive than buses," noting that plane tickets varied between 80 liras and 400 liras. Turkey s Privatization Attracted $4 billion in First half of According to new figures released by the Privatization Authority (ÖİB), Turkey has collected $4 billion from privatization practices in the first six months of the year. Privatization administration (OIB) executed 87 tenders in total since new year and 15.1 billion lira worth agreements have been signed and periods have been completed until July. Again, since new year, 1 block sale, 13 paid circle processes and 157 service areas and entity sales were made in the same period of time, reaching 8.7 billion lira. $4.2 billion worth 29 operations and service areas' agreement of sale transaction is on signature level, where the highest price belongs to TEDAS-Toros Electricity Delivery corporation with $1.725 million.

3 P A G E 3 The DHMİ put $7.1 billion into its cashbox through the transfer of operational rights of terminal buildings between 2005 and Currently there are 50 airports under DHMİ authority, 11 of which are partly operated by private actors. The winning company or consortium will build the tourism complex in four years and hold the operation rights for 49 years. Conservation of the historical structures of the area, which is over 500 years old, is to be taken into account. Turkey Due to Issue a Tender for the Operational Rights of Four Airports. Turkey s airports authority is planning to announce a tender for the operational rights of four more airports before the end of this year, as part of the government s plans to raise money by involving the private sector in transportation investments through partnerships. The General Director of State Airports Authority (DHMİ) Orhan Birdal told that, the Dalaman, Bodrum-Milas, Samsun and Nevşehir-Cappadocia airports will be transferred to the private sector in compliance with the lease-transfer model of public financing. Our studies on the feasibility of tenders are continuing. The Bodrum and Dalaman tenders will definitely be separate. We re working to see if we can unite Nevşehir and Samsun as a single group, he added. Both located in southeastern province of Muğla, Dalaman airport s annual capacity is 8 million while Bodrum s is 7.6 million. The Black Sea airport in Samsun has a capacity of 2 million, and the Central Anatolian Nevşehir has a capacity of 700,000. All four airports accommodate both domestic and international flights. Istanbul s Golden Horn Port Tender Won by the Sembol- Ekopark İnşaat-Fine Otelcilik Joint Venture The Sembol-Ekopark İnşaat-Fine Otelcilik joint venture has placed the highest offer $1.35 billion, plus taxes, in the action for the privatization of the shipyards in Istanbul s Golden Horn (Haliç), following the build-operatetransfer (BOT) model. The tender for the privatization of the shipyards in Istanbul s Haliç (Golden Horn) which was held on held on July 2, has received two bids. The first offer of the Sembol-Ekopark İnşaat-Fine Otelcilik joint venture was $1.14 billion as the other competitor, Cengiz-Taca-Galeri İnşaat joint venture, submitted an $862.6 million offer. At the end of 20 rounds of the auction, the Sembol-Ekopark İnşaat-Fine Otelcilik joint venture raised its offer to $1.35 billion as the other consortium presented $1.33 billion. The Cengiz-Taca-Galeri İnşaat joint venture withdrew from the tender in the 21st round and the Sembol-Ekopark İnşaat-Fine Otelcilik joint venture became the winner of the tender. If the Ministry of Transport, Maritime and Communication approves the offer, the tender will be finalized. The project for the privatization of Camialtı and Taşkızak shipyards in the Golden Horn includes two yacht ports, two five-star hotels each with 400 rooms a big mosque for 1,000 persons and shopping malls and parks in the area of around 230,000 square meters.

4 P A G E 4 The consortium of Netaş and E-Kent Technology gave the best price offer to the tender for the design, supply, integration, startup, operation and maintenance of the e-ticket system that is planned to be used in the federation s countrywide branches, and the stadiums of the biggest football league and the lower league in Turkey Turkish government has privatized 21 of the electricity distribution companies and has approached the end. Turkish Consortium Offered Bid for E-Ticket Tender. According to a statement made by Netaş, a leading local communication and technologies company, consortium of Netaş and E-Kent had offered the best price to a tender for the electronic ticket project of the Turkey s Football Federation. The consortium of Netaş and E-Kent Technology and Payment Systems gave the best price offer to the tender for the Turkey s Football Federation s project for the design, supply, integration, start-up, operation and maintenance of the e-ticket system that is planned to be used in the federation s countrywide branches, and the stadiums of the biggest football league and the lower league in Turkey, the statement said. Netaş also noted that following the assessment of the all offers by the federation, the final decision of the tender s winner and the details of the project would be announced. Turkish Govt To Accomplish Electricity Grid Network s Privatization. Turkish government is likely to accomplish the privatization of electricity grid networks by handing over Dicle Elektrik, the electricity distributor operating in southeastern provinces, to its new owner İşkaya Doğu joint venture. The İşkaya Doğu joint venture, which founded a parent company called Dicle Enerji Yatırım, had offered the highest bid for the privatization of Dicle Elektrik, with a $387-million proposal. At the ceremony on July 24, the company took over the rights of providing electricity for 1 million subscribers living in the southeastern cities of Diyarbakır, Şanlıurfa, Mardin, Batman, Siirt and Şırnak. The government has privatized 21 of the electricity distribution companies and has approached the end. With a last grid we will hand over in August, the privatization of power distribution grids will be completed, Finance Minister Mehmet Şimşek said at the handover and signature ceremony. Mr. Şimşek said the privatization of power procurement benefitted both the government and the consumers, as the state s financial burden was eased and allocation of more investment in public services was enabled, the consumers get to have a better service. The leakage and losses reaching up to 70 percent remain a major problem for southeastern provinces. Also speaking at the ceremony, Turkish energy Minister Taner Yıldız said the transfer would probably help to take necessary measures to avoid this. If the eastern province of Van and Dicle region were excluded, the amount of stray and lost power would drop to 9.4 percent, Yıldz said, which was under the average of 27 European countries.

5 P A G E 5 Pre-qualification Tender Term (Üsküdar) The pre-qualification tender of the procurement of contraction works and production and services works of the Istanbul Uskudar Public Hospital was done on at 15:00. Following firms have already submitted their files for the pre-qualification tender; Turkish Ministry of Health has began a human-oriented health transformation program under which all health facilities in Turkey converts to suitable structures taking into world standards, variety of treatment, regional development and emerging technologies. 1. Taş Yapı İnşaat Taahhüt San. ve Tic. A.Ş. 2. Osman Akça Tarım Ürünleri İthalat İhracat San. ve Tic. A.Ş. (Pilot Ortak) Turkuaz Tekstil San. ve Tic. A.Ş. Joint Venture. 3. Yapı Merkezi İnş. ve San. A.Ş. 4. Akiş Gayrimenkul Yatırım Ortaklığı A.Ş. Ekinciler ve Ortakları İnşaat ve Tic. A.Ş. Joint Venture. 5. Kalyon İnşaat San. ve Tic. A.Ş. 6. Yıldızlar İnşaat ve Tic. A.Ş. 7. Gama Holding A.Ş. Türkerler İnşaat Turizm Madencilik Enerji Üretim Tic. ve San. A.Ş. Joint Venture. 8. Emsaş İnşaat Turizm Tic. ve San. A.Ş. PBK Architects Inc. Ascension Group Architects, L.L.C. Forcimsa Empresa Constructora, s.a. Carillion Construction Limited Joint Venture. 9. Polat Yol Yapı San.ve Tic. A.Ş. 10. Cengiz İnşaat San. ve Tic. A.Ş. Kur İnşaat Tic. ve San. A.Ş. 11. Akfen İnşaat Turizm ve Tic. A.Ş. 12. Salini S.p.A Imregilo S.p.A. Joint Venture. 13. Kayı İnşaat San. ve Tic. A.Ş. (Pilot Ortak) Simed İnternational B.V. Han Teknik Müşavirlik Mühendislik Mimarlık A.Ş. Ave B Gayrimenkul Geliştirme İnşaat Yatırım A.Ş. Joint Venture. 14. Asitane Gayrimenkul Geliştirme ve Turizm A.Ş. (Pilot Ortak) Özyurtlar Madencilik İnş. Ve Tic. A.Ş. NKY Mimarlık Mühendislik İnşaat ve Tic. A.Ş.Joint Venture. 15. Sıla Danışmanlık Bilişim Sağlık İnşaat Tic. A.Ş. (Pilot Ortak) Rönesans Holding A.Ş. Şam Yapı San. ve Tic. A.Ş. Rönesans Medikal Yatırımları A.Ş. Joint Venture. 16. Güriş İnşaat ve Mühendislik A.Ş. 17. YDA İnşaat San. ve Tic. A.Ş. Inso Sistemi Per Le Sociali S.p.A. Joint Venture.

6 P A G E 6 Pre-qualification Tender Term (Bakırköy) The pre-qualification tender of the procurement of contraction works and production and services works of the Istanbul Bakirkoy Integrated Health Campus was done on at 15:00. Following firms have already submitted their files for the pre-qualification tender. Firms who have given their files for the pre-qualification tender; Ongoing mega health projects in bidding phase by the Ministry of Health of Turkey under the department of Public Private Partnership 1. Taş Yapı İnşaat Taahhüt San. ve Tic. A.Ş. 2. Osman Akça Tarım Ürünleri İthalat İhracat San. ve Tic. A.Ş. (Pilot Ortak) Turkuaz Tekstil San. ve Tic. A.Ş. Joint Venture. 3. Akiş Gayrimenkul Yatırım Ortaklığı A.Ş. Ekinciler ve Ortakları İnşaat ve Tic. A.Ş. Joint Venture. 4. Kalyon İnşaat San. ve Tic. A.Ş. 5. Samsung C&T Corporation. 6. Kayı İnşaat San. ve Tic. A.Ş. (Pilot Ortak) Simed İnternational B.V. Han Teknik Müşavirlik Mühendislik Mimarlık A.Ş. Ave B Gayrimenkul Geliştirme İnşaat Yatırım A.Ş. Joint Venture. 7. Sıla Danışmanlık Bilişim Sağlık İnşaat Tic. A.Ş. (Pilot Ortak) Rönesans Holding A.Ş. Şam Yapı San. ve Tic. A.Ş. Rönesans Medikal Yatırımları A.Ş. Joint Venture. 8. Gama Holding A.Ş. Türkerler İnşaat Turizm Madencilik Enerji Üretim Tic. ve San. A.Ş. Joint Venture. 9. JGC Corporation (excluded from the appraisal). 10. Yıldızlar İnşaat ve Tic. A.Ş. 11. Polat Yol Yapı San.ve Tic. A.Ş. 12. Emsaş İnşaat Turizm Tic. ve San. A.Ş. PBK Architects Inc. Ascension Group Architects, L.L.C. Forcimsa Empresa Constructora, s.a. Carillion Construction Limited Joint Venture. 13. Akfen İnşaat Turizm ve Tic. A.Ş. 14. Salini S.p.A Imregilo S.p.A. Joint Venture. 15. Asitane Gayrimenkul Geliştirme ve Turizm A.Ş. (Pilot Ortak) Özyurtlar Madencilik İnş. Ve Tic. A.Ş. NKY Mimarlık Mühendislik İnşaat ve Tic. A.Ş. Joint Venture. 16. YDA İnşaat San. ve Tic. A.Ş. Inso Sistemi Per Le Sociali S.p.A. Joint Venture. 17. Güriş İnşaat ve Mühendislik A.Ş.

7 P A G E 7 The Trans- Anatolian Gas Pipeline (TANAP), construction of which is expected to start by the end of 2014, is scheduled to begin operations by Turkey will increase its installed capacity to 78,000 megawatt within 5 years, while focusing on the renewable energy at the same time. GROUPLAW ENERGY SECTOR UPDATES TANAP to Attract USD 8 billion of Investments in Turkey. According to the State Oil Company of Azerbaijan (SOCAR) Turkey s president, at least an investment of USD 8 billion will be made in Turkey during the construction of a pipeline that will carry Azeri gas through Turkey, offering a number of opportunities for local companies to benefit. The Trans- Anatolian Gas Pipeline (TANAP), construction of which is expected to start by the end of 2014, is scheduled to begin operations by As the tender process for the pipes procurement has been initiated, the impetus that will emerge in the infrastructure sector in Turkey has raised excitement. Turkey s energy minister said 28 companies, nine of which are local, have applied for preliminary qualification for the pipes to be used on the pipeline. Authorities will begin to review applications by Aug. 27, and qualified bidders will be invited to the tender. Kenan Yavuz, the president of the Turkish arm of Azeri energy giant SOCAR, which is also one of the partners of TANAP, said 2 million tons of pipes will be used for the project. The project has a high added-value in terms of locality, because of the pipes to be used and the employment to be created in the construction of the line, he said. TA- NAP will carry 16 billion cubic meters of gas per year, with 6 billion to be delivered to Turkey and rest to Europe. Turkish Electricity Network 2nd Largest in Europe with Capacity of Services to 95 million People According to Turkey's Energy and Natural Resources Minister Taner, Turkish electricity network is the second largest in Europe with its capacity of service to 95 million people. "We operate the distribution and transmission line of electricity exceeding 1 million kilometres," told Yildiz. He told that, there are 21 distribution zones across Turkey, "There is an increase of 8.1 percent in installed capacity and 5.2 percent in consumption, which means energy growth is twice more than the economic growth." Stating the amount of stray and loss of electricity dropped to 9.4 percent, excluding eastern Van province and Dicle region, Yildiz said the amount was under the average of 27 European countries. "We will increase our installed capacity to 78,000 megawatt within 5 years, while focusing on the renewable energy at the same time,", Minister of Development Cevdet Yilmaz said. "With our geostrategic location, we will also strengthen the position of being a transition and terminal country in energy," noted Yilmaz, adding that certain new technologies in energy would be operated as well, including atomic power.

8 P A G E 8 Turkey has taken crucial steps to combat climate change, such as investing in public transport and railways. Turkey to Increase Renewable Energy Accroding to Turkish Minister of Environment and Urbanization Erdogan Bayraktar, Turkey plans to increase the amount of renewable energy, especially wind, hydroelectric, solar and geothermic, for the generation of electricity upto 30 percent of its total energy production by According to a written statement released by the ministery, Bayraktar joined an unofficial meeting about climate change with the representatives of European Union (EU) member states, EU candidate countries and representatives of the European Free Trade Association (EFTA), in capital of Lithuania, Vilnius. Bayraktar emphasized the significance of taking precautions against climate change for the welfare of next generations. "Turkey has taken crucial steps to combat climate change, such as investing in public transport and railways," said Bayraktar. "Energy, industry, transport, agriculture, forestry, waste management projects and programs are being carried out," he said. Reminding of a law that was issued to monitor 3 thousand facilities' greenhouse gas emission, Bayraktar said, "The system, which will track and report greenhouse gas emission will be established in 2016." Turkey's energy imports have been decreased in the first half of, a first since Figures have revealed a drop of 8.3%, that could be due to a moderate fall in global oil prices earlier this year.. Turkey's Energy Imports has Dropped First Time Since 2009 According to state agency TurkStat s figures, Turkey's energy imports have been decreased in the first half of, a first since Figures have revealed a drop of 8.3%, that could be due to a moderate fall in global oil prices earlier this year. Turkey remains largely foreign-dependent in energy, which means the recent development is interpreted as positive. Stats show Turkey's energy imports fell from $29.6 billion in 2012 to $27.1 billion this year, a slide of $2.4 billion. Odeabank Economic Research Manager Inanc Sozer calculates that every $10 drop in oil prices leads to a $5 billion decline in Turkey's annual energy imports. Some analysts believe lackluster growth and a slowdown in consumption and investment also figure in the fall in energy imports. Banu Kivci of Halk Investment says the mildly downward trend in imports in the last twelve months is correlated with a declining energy bill, from over $60 billion in 2012's first half to $57.7 billion till June this year. "Apart from falling oil prices, a growth figure well below the economy's potential and resulting drop in oil demand also play a role in the decrease in energy bill." According to TurkStat figures, Turkey grew 3% in the first three months of, which was higher than expectations but below a strong average of 5.2% over the last decade.

9 P A G E 9 Competition Authority Initiated Investigation concerning Mey İçki San. ve Tic. A.Ş. Competition Board came to a decision concerning the preliminary investigation initiated in response to the complaint application which included the claims that Mey İçki San. ve Tic. A.Ş. prevented the sales of competing products at points of sales, made use of exclusivity to the advantage of its own products, obstructed the operations of its competitors and thereby violated article 4 and 6 of the Act no 4054 on the Protection of Competition. After examining the information, evidence and the findings gathered in the preliminary inquiry in its meeting, the Board concluded that an investigation should be initiated concerning Mey İçki San. ve Tic. A.Ş. in accordance with article 41 of the Act no 4054, in order to determine whether article 4 of the same Act was violated through practices which aimed or resulted in exclusivity at final points of sales, and there was an abuse of dominant position in violation of article 6 of the same Act though practices aimed at excluding the competitors from the markets and/or foreclosuing the markets to competitors. The underlying principle of market economy is the assumption that economic relationships are based on free competition COMPETITION NEWS Anadolu Yakası Elektrik Dağıtım A.Ş. In light of the fact that the High Board of Privatization approved the acquisition of Gediz Elektrik Dağıtım A.Ş. by the first bidder; within the framework of the privatization of 100% of the shares of Anadolu Yakası Elektrik Dağıtım A.Ş. via block sales, it was decided that the acquisition of all of the aforementioned shares by; Enerjisa Elektrik Dağıtım A.Ş., or Aksa Elektrik Perakende Satış A.Ş., or Fina Enerji Holding A.Ş.-Fina Limancılık Lojistik Holding A.Ş. Joint Venture Group could be authorized. Acquisition Authorized of Plato Medikal Sistemleri San. ve Tic. Ltd. Şti.-Plato Sağlık Ürünleri San. ve Tic. Ltd. Şti.- Sinerji Medikal Tıbbi Cihazlar San. ve Tic. Paz. A.Ş. The acquisition, by Smith&Nephew plc, via Smith ve Nephew Medikal Cihazlar Ticaret Ltd. Şti., of Plato Medikal Sistemleri San. ve Tic. Ltd. Şti., Plato Sağlık Ürünleri San. ve Tic. Ltd. Şti. and Sinerji Medikal Tıbbi Cihazlar San. ve Tic. Paz. A.Ş.'s certain assets, employees and relationships with main sub-distributors related to the their orthopedic reconstruction, trauma and sports medicine products of as well as related to the Turkish distribution of their arthroscopy technologies was authorized.

10 P A G E 1 0 A resilient Turkish banking sector has attracted the attention of foreign investors in recent years and Gulf and Asian investors also have not hidden their interest. In March, the Commercial Bank of Qatar (CBQ) acquired a percent stake in Turkey's Alternatif Bank. In Turkey, health insurance premiums were up 7.7 percent at TL 678 million ($350 million) in the first two months of. M&A, BANKING AND FINANCE UPDATES Dutch Rabobank to Begin Deposit Banking in Turkey Rabobank, the largest retail bank in the Netherlands, has received the green light from Turkey s banking watchdog to set up operations in the country. According to Turkey s Official Gazette publishing the approval of the Board of the Banking Regulation and Supervision Agency of Turkey (BDDK), the Dutch lender will establish a deposit bank as the controlling partner with 96 percent of shares. Turkey requires capital equivalent to USD 300 million for starting a banking business in the country. Active in Turkey since 2001 with a representative office, Rabobank earlier attempted buying Şekerbank but failed to do so. They are now going to establish a bank under their own name in Turkey. It has also been interested in Adabank. Ranking 26th among World s Largest Bank list of The Banker magazine, Rabobank joins Italian Intesa Sanpaolo, Japan s Bank of Tokyo-Mitsubishi UFJ (BTMU) and Lebanese Bank Audi who have all received a Turkish banking license in recent years. ING Group, another Dutch banking company, has also been active in the Turkish market since its acquisition of local Oyak Bank in Malaysian Fund to Acquire Turkish Insurer for USD 250 million A unit of Malaysia's sovereign wealth fund, Khazanah Nasional Berhad, will pay USD 252 million to buy a 90 percent stake in Acibadem Sigorta, Turkey's third-largest insurer based on market share. Acibadem Sigorta is a venture between a holding company owned by Dubai-based Abraaj Group and Mehmet Ali Aydınlar, the founder of Turkey's Acibadem health group. Aydınlar will now own the remaining 10 percent of Acibadem after Khazanah's unit Avicennia completes the purchase. Khazanah beat Sompo Japan Insurance and British medical services group Bupa for the stake in the Turkish firm, which has a market share of just over 10 percent at the end of Just over 18 months ago Abraaj, which manages around USD 7.5 billion in assets, sold its stake in Turkey's largest hospital chain, Acibadem Saglik, to Integrated Healthcare Holdings, a unit of Khazanah, in a deal which valued Acibadem Saglik at USD1.68 billion. Ülker s 10 Percent Stakes on Block Sale Turkey s Yıldız Holding, owner of premium chocolate brand Godiva, has decided to sell a 10 percent stake in biscuit company Ülker in a block sale within six months. Yıldız Holding has uthorized Ünlü Securities in the sale after requests from foreign investors and to deepen Ülker s market. Yıldız Holding has now owns around 66 percent of the company, although around 14 percent of the company is owned by other subsidiaries of Yıldız Holding and the Ülker family. The remaining 20 percent of the company is owned by other shareholders.

11 P A G E 1 1 Manufacturing sector production rose 5.4 percent year-on-year in June. Meanwhile, computers, electronics and optics showed the most robust growth in the manufacturing sector as production hit 40.7 percent in June compared to the previous month. THY now has the world s most extensive flight network of nearly 230 destinations and is one of the fastest-growing airline companies in Europe in terms of passenger numbers. GROUPLAW MISCELLANEOUS Turkey s Industrial Production in June Increased 1.4 Percent. According to data from the Turkish Statistics Institute (TurkStat), Turkey s industrial production has a month-on-month increased of 1.4 percent in June and grew on average 3.2 percent in the second quarter. The calendaradjusted data also showed a month-on-month increase in industrial production, which was up 4.2 percent in June. Manufacturing sector production rose 5.4 percent year-on-year in June. Meanwhile, computers, electronics and optics showed the most robust growth in the manufacturing sector as production hit 40.7 percent in June compared to the previous month. Pharmaceutical production followed at 19.8 percent before transportation vehicles at 16.1 percent over the same period. Seasonal and calendar-adjusted data showed production in the mining and quarrying sector up 1.7 percent in June over the previous month, while manufacturing production increased 1.4 percent. The largest increase among major industry groups was seen in the production of capital goods, at 11.9 percent. Airbus to Built Production Plant in Turkey Europe s leading aircraft manufacturer, Airbus, is considering investment in a production plant in Turkey. Having received an order for 117 passenger planes from the Turkish Airlines (THY) in April, the company has acquired a plot of land in the European Free Zone (EFZ) in Turkey s Thracian province of Tekirdag to manufacture various electronic and mechanical aircraft components via a subsidiary. Airbus has acquired an area of 10,000 square meters in EFZ., according to Kemal Sahin, the Chairman of Sahinler Holding, the owner and operator of Turkey s largest private industry park. The company is expected to break ground for the production facility in the coming months, Sahin added. Airbus Military, the military arm of Airbus, relies on Turkish Aerospace Industries (TAI) in Ankara for the production of the various components of the A400M transport aircraft. TAI also manufactures body parts and ailerons for Airbus A350 and A320 airliners. Another Turkish company, Kale Aero produces auxiliary fuel tank walls for A320s in Istanbul, which are then assembled by the German aerospace company PFW s Turkish division. PWF Turkey also assembles structural components of the A320 family in its Izmir plant. Turkey s national flag carrier THY now has the world s most extensive flight network of nearly 230 destinations and is one of the fastest-growing airline companies in Europe in terms of passenger numbers. The company carried 39 million passengers in 2012, up 20 percent over the preceding year. These figures are expected to rise sharply once THY switches its main terminal from Ataturk Airport to Istanbul s under -construction third airport.

12 P A G E 1 2 DISCLAIMER This newsletter has been prepared for information al purpose only; It has neither prepared for advertising purpose nor with the intention of creating an attorneyclient relationship. None of the information contained in this legal newsletter shall constitute legal advice or anything correlated thereto. Turkish TAV Airports Holding To Bid in NY airport Tender Turkish TAV Airports Holding had qualified to bid for rights to operate and reconstruct New York's LaGuardia Airport as part of a consortium. TAV first expressed interest in the US airport back in January. In May, TAV lost its bid in a tender for the construction of İstanbul's new airport. The consortium includes TAV shareholder Aéroports de Paris (ADP), Goldman Sachs, Tutor Perini Corporation, Ove Arup & Partners PC, Kohn Pederson Fox Associates PC, Suffolk Construction Company, STV Incorporated and ADP Ingenierie. There are a total of four consortiums that have qualified for the La- Guardia Airport tender. Serving as a domestic hub for Delta Air Lines, La- Guardia Airport handled 26 million passengers in 2012, TAV said in a written statement to Bourse İstanbul (BIST) on Monday. TAV currently operates İstanbul Atatürk Airport, Ankara Esenboğa Airport, İzmir Adnan Menderes Airport's international terminal and Antalya Gazipaşa Airport in Turkey, as well as two airports each in Georgia, Tunisia and Macedonia. Aéroports de Paris purchased 38 percent of TAV's shares in March CONTACTS: Tel:+90(212) Fax:+90(212) Pekintaş Plaza Kat: 9 Büyükdere Cad. No: Mecidiyekoy İstanbul / TURKEY info@grouplaw.com.tr