AirTies developed, Karel will manufacture, and TTNET will introduce to consumers



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Press Release 21 January 2014 COLLABORATION FOR 100 % LOCAL TECHNOLOGY DEPLOYMENT AirTies developed, Karel will manufacture, and TTNET will introduce to consumers AirTies, Karel and TTNET combine forces for 100 % domestic technology product and its deployment. OTT set top boxes developed by AirTies for TTNET Tivibu Ev service will be manufactured in Karel s plant in Turkey. The new generation OTT set-top box developed with an innovation-based research and expertise of AirTies will be manufactured in Karel s plant in the first half of 2014. With an annual capacity of 300 thousand, OTT set-top boxes produced in Turkey will also be exported to other operators abroad. A global player in wireless technologies, AirTies Wireless Networks will be producing a part of its OTT set-top-box in Turkey in close collaboration with Karel, the leading player in communication electronics, and start producing OTT set-top boxes for TTNET, the leading internet service provider of Turkey. Innovation-based research and development expert AirTies partners up with leading local manufacturer. Being a product and technology supplier for the leading operators and service providers in the world for the last 10 years, AirTies conveys the next generation television technology to its consumers in Turkey, today.combining the innovation-based product development skills of AirTies, with the manufacturing expertise of Karel, Tivibu Ev service of TTNET, the trio introduces next generation technology for broadcasters, OTT (set top box) to the Turkish consumers as a 100 percent domestic product.

Karel established a production line with an annual manufacturing capacity of 300 thousand pieces AirTies and Karel signed a partnership agreement for the production of IPTV set-top box family. Within the framework of this collaboration, Karel established a new production line in Ankara, capital of Turkey, with 300 thousand boxes for domestic manufacturing of AirTies OTT products. Getting ready to change the rules of the game with IPTV and OTT boxes, AirTies aims to reach the level of flexibility in its supply chain both to Turkey and to Europe by shortening the delivery time and increasing the quality of its products. Tivibu Ev is changing the television broadcasting concept in Turkey Tivibu presents enhanced experience with interactive applications as well as thousands of different contents like movies, TV series and music. Having changed the television broadcasting concept in Turkey completely, the first and only IPTV of Turkey, Tivibu Ev provides easy access to 173 local and foreign TV channels, thousands of movies, TV series, sports, documentaries and children programs for customers. Subscribers take control over their television through numbers of different functionalities such as Re-Watch that enables them to watch the TV series and programs they missed without saving them. Subscribers can stop a live broadcast, rewind and watch the premium content via Choose & Watch service anytime they want. Reaching houses with Internet based TV broadcasting IPTV technology, Tivibu Ev is getting ready to introduce a more enhanced television experience to its subscribers with the next generation set-top boxes. High quality HD television broadcast with AirTies technology Thanks to the AirTies technology used in OTT devices, HD TV broadcast could be accessed in high quality over Internet Protocol. Via RF4CE link feature, channels would be changed and the device will be powered on and off even from another room without having to point the remote control at the device. From innovation to production, all of AirTies processes are now in Turkey CEO of AirTies, Philippe Alcaras pointed out that they were proud of new operating model of AirTies, having innovation, design and production in Turkey and the final link is now completed through this partnership. Philippe Alcaras said: Thanks to this cooperation, as AirTies, we are now introducing the advanced broadcast technologies, which we have already presented to our customers worldwide, to the Turkish consumers, too. The

new OTT STB, with its appealing form factor, starting first with Tivibu Ev of TTNET, will be deployed to other domestic and foreign operators in the near future. With our new operating model, we will have the opportunity to offer our products with shortened delivery schedules and increased quality. Indicating that they specifically chose to work with a partner like Karel, an expert in the consumer electronics manufacturing, instead of establishing their own facilities for production, Alcaras said: we believe that close cooperation between our teams and joint forces in engineering capabilities are the strongest elements in our success. Philippe Alcaras continued his speech adding that R&D being one of the leading differentiator of AirTies in working with global leaders and said: these set-top boxes we developed for TTNET are products of the AirTies research & development expertise that we are keen on excelling ourselves through continuous investments. the PBX market leader, Karel will strengthen its engineering and production competencies by moving to OTT market In his speech at the press conference, Karel s Chairman of the Board Sinan Tunaoğlu said: With the high-speed growth in technology, it is crucial to develop new and smart technologies and turn them into marketable products. Therefore, it is of utmost importance to have strong research and development capabilities, to produce higher quality and costeffective products with advanced engineering knowledge and new technology production methods, and enabling end users to meet these products through strong distribution channels. Karel is a leading brand of PBX market with its 1,300 employees. We have now intensified our knowledge and experiences from PBX industry through cooperation in production with leading brands in Turkey and in the world, particularly in communication electronics. Sinan Tunaoğlu added: Now we are developing our business through a collaboration with two Turkish companies with products in OTT market that is becoming increasingly more important in near future. We are taking a step for a new collaboration that will contribute to the economy and protect domestic capital and consumers, introduce new opportunities for employment by bringing in a new 100 percent domestic product to the Turkish market. As Karel, we give great importance to stable and long-term partnerships. We also consider our today s collaboration as a step towards a long-term, valuable partnership. We are expanding the digital broadcasting ecosystem for Tivibu by working with over 100 domestic and foreign companies

TTNET General Manager Abdullah Orkun Kaya said: Internet and the ecosystem it creates plays an important role for sustainable development. As the leading internet company of Turkey, we are extending the use of technology by providing new technologies and digital platforms to our customers. Thus, we support the growth of digital ecosystem in our country. We are developing new applications with our global and domestic business partners to create new success stories and to introduce digital solutions that can become a role model. While enhancing the digital ecosystem with this synergy, our biggest aim is to contribute to the economic development of our country. For Tivibu ecosystem; we are working with over 100 domestic and foreign companies for content, software, and hardware. We support both our sector and the growth of digital broadcasting ecosystem. Domestic, new technology set-top boxes are also a good example of our strategy. Abdullah Orkun Kaya emphasized that set-top boxes developed by AirTies in cooperation with Karel for Tivibu Ev Service of TTNET, is very importance in terms of showing the power of domestic engineering capability. Kaya also said: With this collaboration, we are happy to contribute to the economic development of Turkey and the growth of the digital ecosystem. We will continue to invest on local partnerships and to introduce the latest technologies to our consumers. About AirTies: Founded in 2004 by an executive and technical team returning from USA Silicon Valley, AirTies develops products connecting electronic devices to each other, Internet and people. In its product portfolio, cabled or wireless local area network products (LAN), voice over ip (VoIP), accessories and internet protocol television (IPTV) products are present. AirTies currently develops solution for home users and SMEs in most of world, primarily in Eastern and Northern Europe. In cooperation with all telecom operators of Turkey, AirTies runs projects with the world s leading telecom operators, primarily in Europe. Being one of the 82 companies with Research & Development Center Certificate in Turkey, In contrast with its competitors who are dependent on chip producers, AirTies develops and designs its own products with its expert Research & Development team. Developing products taking market infrastructure, dynamics and consumer needs into account, AirTies achieves a fast growth in the new markets it enters with its localization strategy as a result of this approach. Rewarded many international awards for its solutions regarding IP and Web TV projects, AirTies develops technologies making users life easier combining customer-oriented approach with the Research & Development power. AirTies has over 10 million devices worldwide. For more information, please visit www.airties.com. About Karel: Established in 1986; Karel develops, designs and produces PBX systems and hundreds of peripheral units related to these systems in telecommunications field as the main business with various technologies, features and capacities and provides these products to domestic and foreign markets. It also leads in the convergence field with its Unified Communication and Call Center Solutions provided to corporate customers. Operating also in Visual Communication and Security Systems field, Karel provides turn-key projects in communication infrastructure field to public and private sector organizations and products and solutions to defense industry..

In another important field of operation, Karel uses latest technologies in its world-class production facilities, spreading over an indoor space of 20.500 sqm, 318,000 components per hour capacity in electronic manufacturing services (EMS). Through this competency and competitive advantage at international platforms, Karel makes international collaborations with significant brands. Having one of the most sophisticated Research and Development centers in Turkey with a total of 1300 employees, Karel is the market leader in its sector with its manufacturing processes and plant. While PBX systems are used in over 600 thousand firms just in Turkey, Karel exports products and technologies to more than 30 countries. Over 10 million users worldwide carry their communication through Karel systems. According to the international research organizations, it is one of the 3 biggest producers in Europe and one of the 15 biggest PBX producers in the world, beside its market leadership in Turkey. For more information please visit www.karel.com.tr. About TTNET: About TTNET Founded in 2006 to connect Turkey to the Internet and open up the country to the world, TTNET, today, is a communication and entertainment company that plays a leading role in the industry with its corporate and individual services and offers its customers the communication technologies of today and the future. Offering a combination of all three components of communication technologies Internet, television and voice TTNET meets with all communication requirements of Turkey with its products in education, entertainment, communication and security as well as other business-specific products. The company s product portfolio includes primarily ADSL, fiber Internet connectivity, Wi-Fi wireless Internet connectivity, TTNET Wi-Fi international connectivity in partnership with ipass, G.SHDSL and Metro Ethernet Internet connectivity. TTNET provides a complete array of mobile telephone services under the TTNET Mobil brand in partnership with Avea and landline telephone connectivity for individual customers under TTNET Alo brand. TTNET is also the first company to introduce the technology of Tivibu Web and Tivibu Cep that make cinema and TV experience mobile and Tivibu Ev, which enables TV access at home with IPTV technology. In addition to the Internet services, TTNET s value added services include TTNET Müzik where all kinds of music can be listened and the digital gaming platform Playstore, where popular online and digital games are sold. TTNET also offers users a host of products and services for a secure Internet through TTNET Güvenlik, while developing products and services tailored to the requirements of businesses through TTNET İşyerim Paketleri. Combining Internet, TV, fixed voice and mobile voice services in a single bill, TTNET has achieved another breakthrough in Turkey by becoming the first internet company to launch quad play. www.ttnet.com.tr For detailed information: PRfit Communication Counseling Ece Elgin 0212 287 67 05 0532 408 02 75 ece@prfit.com.tr