Innovative Ideas, Enduring Solutions

SAVUNMA TEKNOLOJİLERİ MÜHENDİSLİK VE TİCARET A.Ş. SAVUNMA TEKNOLOJİLERİ MÜHENDİSLİK VE TİCARET A.Ş. Kafkas Sokak. No.56, 06510 Ankara / Türkiye Tel: +90 (312) 223 68 00 Fax: +90 (312) 223 68 18 www.stm.com.tr Innovative Ideas, Enduring Solutions www.signum.com.tr www.stm.com.tr

#1 Engineering and Consultancy Services Provider in Turkey (*) Contents (*) According to the results of "Turkey's Top 500 ICT Company Researches 2005 & 2006", STM is ranked as the leader company in "Consultancy" category by Interpromedya. Engineering & Consultancy Services Software Services Naval Technologies Acquisition Services Certification Services Message by the General Manager........................................................ 5 We Make a Difference to Your Business................................................... 9 STM in Turkey...................................................................... 12 STM's International Goals............................................................. 14 Leadership Makes a Difference.......................................................... 16 Serving Sectors..................................................................... 18 STM Today......................................................................... 20 The Defense Sector.................................................................. 22 Major Breakthrough by STM: Naval Technologies............................................ 24 The Public / Private Sector............................................................. 26 Consultancy Services................................................................. 28 Software Engineering................................................................. 30 Systems Engineering................................................................. 34 Acquisition Consultancy............................................................... 38 SAVUNMA TEKNOLOJİLERİ MÜHENDİSLİK VE TİCARET A.Ş. Kafkas Sokak. No.56, 06510 Ankara / Türkiye Tel: +90 (312) 223 68 00 Fax: +90 (312) 223 68 18 e-mail: info@stm.com.tr www.stm.com.tr Quality Services..................................................................... 40 Certification Services................................................................. 42 Our References..................................................................... 44 Corporate Social Responsibility......................................................... 46 Innovative Ideas, Enduring Solutions 3

Our goal is to become an internationally recognized consultancy and engineering company through our current and planned work portfolio. STM was established in May 1991 by the decision of Defense Industry Executive Committee for providing support services to the Turkish Armed Forces and Undersecretariat for Defense Industries (SSM) on systems engineering, technical support, project management, technology transfer, and logistics as well as for performing the duties of acquiring software technologies for defense systems, developing software, establishing and operating national computer centers for the purpose of maintenance / support services. During the sixteen years that have passed, experienced staff specialized on different disciplines and a vast institutional expertise has been teamed up towards achievement of our establishment purposes. Providing the engineering and support services in the scope and quality required by our defense industry and in the most appropriate conditions for our customers has been the primary objective. Today, STM has become an experienced service provider on engineering and support services, softwarebased system development, quality, certification, and acquisition services; in other words, it has become a multi-scope consultancy and engineering company". By contributing greatly to Turkey's vision on a scale not to be compared with the revenue, we have fulfilled projects whose worth cannot be evaluated in currencies since our establishment. Our new vision definition in the restructuring process we started three years ago is "to become an internationally recognized service provider which is able to compete by creating technology driven consultancy and engineering solutions for its customers in military and public/private fields". With this vision, we are aiming at a wider market area through a concept which is innovative, creative, of quality, and includes the center of perfection. Within our long-term strategic planning, together with our growth objectives in the defense sector there are two new programs and expansions. We are aiming to transfer our institutional capabilities and solution portfolio we acquired from the field of defense to the international 4 Innovative Ideas, Enduring Solutions Innovative Ideas, Enduring Solutions 5

markets and to the public and private sectors directly and through business partnership ecosystem. Within the assessments we make for the coming periods, when the niche and developing technologies are considered, we apprehend the fields of three dimensional modeling, virtual reality, virtual environments, geographical information systems, data/information exchange models, image processing and appraisal, information and data integration, flight control systems, avionic architectures, real time and embedded systems, command control, communications, computer, intelligence, surveillance and reconnaissance systems (C4ISR) and as of today we possess a vast amount of knowledge within these fields. Moreover, as STM, our business plan for the efficient utilization of and benefitting from our current service and product portfolio for the transfer to the information society within the concepts of "e-transformation projects" and "homeland security" has been implemented under a program. Within our plans, the aviation projects that will be materialized by the year 2009 are structured so as to provide a technical consultancy service to SSM on airworthiness. Within this period, we aim to respond flexibly to the demands of military and civil certification authorities of Turkey after 2009 through a "experienced engineering professionals" to be formed in the field of certification. We aim at achieving greater successes in the fields of defense, public and private sectors with our valuable business partners in order to attain the outcomes we aimed through our corporate values. During the period while entering our 16th year, apart from presenting my appreciation our chairperson of the executive board and board members for their support and confidence they reposed in us, I congratulate once more our valuable personnel who possess innovative and creative characteristics and an advanced collective working culture for their enthusiasm and determination we witnessed on the concept of "the center of excellence concept" through the realization of the STM vision. Respectfully, Recep BARUT General Manager 6 Innovative Ideas, Enduring Solutions Innovative Ideas, Enduring Solutions 7

We Make a Difference to Your Business Making difference in the businesses of our customers is our main objective. The difference can be made permanent only by placing company visions that support change and innovativeness within corporate values and principles. We sustain our existence with this point of view. STM approaches to all of its customers' business and technological transformation requirements with the concept of a "Center of Excellence". It aims to provide high benefit and efficiency to the business outcomes by keeping its characteristics of "innovation" and "creativity" on the foreground. Values: Permanence and sustainability comprises the fundamental principles in our services toward our customers by acting in accordance with corporate values such as being visionary, having open communication, business ethics, conducting the protection of consumers' rights, innovativeness, mutual trust, service quality and customer satisfaction. Human Resources: Our human resources, who are experts in their fields of profession, and who contribute to our corporate culture, are updating their knowledge by continuous and planned trainings in Turkey and abroad within our corporate culture which supports innovativeness and creativity. Human resources are our most valuable investment in order to create differences in the businesses of our customers. Comprehensive Solutions: We provide efficient solutions with our consultancy, engineering, product development, quality, and acquisition services that are structured in a sector-based approach within the fields of Information Technologies, Defense Technologies, Systems Engineering, and Electronic Systems in operational levels and critical and complex business subjects of high levels of difficulty. Center of Excellence: Our personnel on every level of our organization are focused on providing business outcomes above the expectations of our customers with information-based advanced skill sets. We have provided services to our customers, which are of functionality that is compatible with their business requirements, on time, within the planned budget, and under our quality assurance at each project we have undertaken till today. 8 Innovative Ideas, Enduring Solutions Innovative Ideas, Enduring Solutions 9

Quality: Our personnel provide their services to our customers without making any concessions to quality in all of the projects. R&D Approach: Our philosophy is to approach to our customers in a view that is innovative, forcing the boundaries of change, and creative. We adopt the R&D culture in order to convey our studies to a more distinct and better level with the awareness of being a Center of Excellence. Sharing: In order to become permanent and enduring, or in other words to survive in the global competition, companies in today's world should make a principle of being improved and successful toward mutual objectives by integrating their strengths. In today's environment where power is knowledge and also this power can only be transformed into victory through sharing, our duty is to define our need for a fact that will lead us to positive energy, deliver us to power, and direct us to our goals and objectives by bringing us together. Moving from that fact, in both the interior and exterior face of our company's corporate culture we share our business life in a range from teamwork to business partnerships with other companies and aim that the magic word "synergy" to become a real power coefficient. We are realizing contemporary business concepts and methods in this context and applying information, energy, and integration to our business world. We are undertaking the creativity on which synergy is based and "risk-taking" which is the most valid issue for that creativity. Innovativeness: STM does not view the concept of innovativeness solely as a new thought, business field, or a new product. The innovativeness strategies that are viewed theoretically mean, from our point of view, the maturity level acquired through the life cycle of the company and its implementation to corporate works. In the maturity level we possess today, components such as business models, quality, and productivity, by having business processes, best practices, and human resources on the forefront, comprises the transformational basis of the concept of innovativeness into the field of practice in STM. Yours sincerely, Yavuz BARTU Deputy General Manager 10 Innovative Ideas, Enduring Solutions Innovative Ideas, Enduring Solutions 11

STM in Turkey We will continue our leadership role for developing the field of "consultancy" - which is underdeveloped in Turkey and does not have the desired place due to the low market share in investments - and also our leadership will be beneficial for other companies in the sector. Service Awards First Company in Interpromedya 2005 & 2006 Top 500 ICT Companies Researches Consultancy Services Category One of the top 50 companies with a high level of development performance in Deloitte Touche Türkiye Fast 50 we have been continuing our activities by enlarging them every year AsSTM, under the headings of "Subject and Areas of Specialization", "Information Technologies", "Defense Technologies", "System Solutions", and "Electronic Systems" in the fields of defense and public/private sectors. When we became the 1st company in the "Consultancy" services category of the Interpromedya Top 500 ICT Companies Researches in 2005 and 2006 in Turkey, we also took our place in the research results of "Turkey Fast 50", which is another indicator for company growth and development performance, conducted by Deloitte Touche. We have conducted hundreds of projects successfully in the procurement services such as consultancy, systems engineering, acquisition projects, naval technologies, software engineering, certification, and quality for land, naval, and air forces toward the defense industries sector. STM provides full systems engineering services whose maturity level is proven through the entire range of supply chain from basic technology development to product development, dissemination and system acquisition. Our superior planning skills in these services ensures us to be the best business partner / solution provider / consultant / supplier / contractor / subcontractor. STM, which successfully completes critical projects with a high level of difficulty through the mission it has undertaken in the defense sector, has successfully provided the consultancy services for many important contracts that were solely on the defense technologies on the national scale and the total of which exceeded 20 billion dollars through its outcome-focused efforts. By 2005, our advanced technology knowledge and business experiences, acquired from the defense sector, have been aimed to be expanded into the "public/private and international" markets and only after a short time successful outcomes have been attained in line with that aim. While we are strengthening our infrastructures of expertise for the consultancy services we provide "business services", business optimization and quality", and "information technologies" in the public/private sector, we also provide application consultancy in the projects toward "business applications" in the application level as well as systems engineering, software engineering, acquisition projects, and quality services in critical projects. STM, which focuses primarily and strategically on the fields of education, energy, healthcare, and transportation, also supports the development of the "homeland security" concept and the realization of its vision definition on the national scale. We are developing new policies for sectoral improvement through our features of leadership, being visionary, and innovativeness in order to provide new expansions to all of our shareholders in defense, public and private sectors. 12 Innovative Ideas, Enduring Solutions Innovative Ideas, Enduring Solutions 13

STM s International Goals We aim at conveying our superior experiences to the ecosystem of our international customers and business partners under our quality assurance system, which have been acquired from critical and complex high-tech projects in the defense sector for years. Naval Defense Sector Consultancy Services Engineering Services Support Services Certification Services Public Sector Technologies Private Sector As creative and innovative STM personnel who are inclined to the collective working culture, we would like to share our cost-effective, competitive, and high quality products and services with our international business partners. We are aiming at expanding to the international markets our solution portfolio, which comprises of Consultancy, Systems Engineering, Defense Technologies, Naval Technologies, Software Engineering, and Certification Services which we have acquired through long years in the defense industries sector. While aiming to provide solutions to our customers through our business experiences of a wide spectrum and strong corporate infrastructure, we are also developing business partnerships with the national and international companies of other countries. Quality Certifications SEI-CMMI Level-3 NATO AQAP-160 TSE ISO 9001:2000 By attaching importance and priority to the service quality and investing into the internationally acknowledged SEI-CMMI Level-3, TSE ISO 9001:2000, and NATO AQAP-160 certifications and other standards, STM is aiming to become a long-term actor with its foreign business partners for the public/private and defense sectors in the international market. Business development activities have been commenced primarily in countries in the Middle East, the Gulf, Turkic Republics and Eastern Europe and in the meantime business relations have been started with NATO agencies and the official institutions and national companies of the EU and other countries. STM, as a result of the crucial roles we have undertaken in the National Ship Building Project (MİLGEM) developed in Turkey and our knowledge acquired in defense and public/private naval industries, has reached the level of meeting the similar needs of other countries in platform design, integration, acquisition services, logistics, and maintenance. Within this context, our presentation and sales activities for corvette class combat ships and submarine rescue and logistical support ships on the international level with their various project models are also continuing. The scopes, scaling features, modular structures, and the ability of operating independently from the operation systems and hardware of Mission Support / Mission Management / Mission Planning / Flight Management, Sliding Map Systems and Software which we have developed since 1996 by taking the changing market demands into consideration have important advantages when compared with similar solutions in the global market. As well as naval, land, and air projects in the defense sector and enterprise projects in the education, energy, healthcare, and transportation sectors in the public/ private field, we are aiming to undertake responsibilities in projects toward the concept of homeland security with our international business partners. We are aiming to grow through the business partnerships that we will establish with the national and international companies of other countries by means of consultancy, system solutions, software engineering, and acquisition consultancy services on many subjects such as system architecture, model and prototype development activities, development of command control and communications systems compatible with strategic document and roadmap studies under the "Concept of Homeland Security". In line with our objectives, cooperations have been commenced in 2006 with Intel for strategic business consultancy in the field of education and with Deloitte Touche in the energy sector for the purpose of conducting mutual business consultancies. 14 Innovative Ideas, Enduring Solutions Innovative Ideas, Enduring Solutions 15

Leadership Makes a Difference Leadership is to be a pioneer for institutions and societies in constantly changing environments. We have aimed to be a system leader until this day and will support that aim henceforth. STM keeps providing permanent benefits to its shareholders on the foreground through its business model which understands, shares and produces collectively. During our activity period of 16 years, through our transparent communication concept we share with our shareholders, business partners, and customers; consistency in our corporate values and principles; our service success in projects with a high level of difficulty; our products and services which have a well-developed level; our bar of quality and standards which is raised every year; our corporate self-confidence toward doing business in the international markets; the social responsibility we own; constant stability in our growth and financial structure, we are a leader company in "consultancy services" on the national scale. STM, which keeps on the foreground a structure based on governance, collective intelligence, and information of any dimension, is a system leader with its organization comprising of qualified, creative, innovative, and agile personnel who are loyal to the company and who experience diversity in integrity. The "Center of Excellence" concept which broke new ground in many important projects we undertook and successfully completed in the national level, which provided change, which exerts efforts for the development of its services every day, every month, and every year, and whose business philosophy is based on innovativeness, creativity, corporate maturity, and quality elements, has become a way of development that has been adopted by each personnel. As STM, we transfer our leadership characteristics to each of our personnel through constantly learning organizational structure. While we add new ones onto the differences we created, we convey these differences to business outcomes through the ecosystem platform we developed with our customers and business partners. We are constantly following changes in the customer demands and technology by sharing our qualified and innovative characteristics with all of our shareholders in line with our transparent and ethical business culture. We aim at continuing our leadership by constantly updating our solution portfolio under this point of view. 16 Innovative Ideas, Enduring Solutions Innovative Ideas, Enduring Solutions 17

Serving Sectors As the sole national and strategic consultancy company in the defense sector, we have always labored to attain successes beyond expectations. While competing against ourselves, we are closely following the success stories of international companies which we have taken as examples. Sectors to which We Provide Services W hile we have conducted our activities mainly in the defense sector since our establishment, we also aim to transfer the experience we acquired during that period to the fields of public and private sectors under a solution portfolio. In order for our services in the solution portfolio which is constantly improved and renewed toward both the defense and the public/private sector to attain value and become permanent in the international markets, STM have been implementing new market and business naval, and security projects in the field of defense as the Turkish Undersecretariat for Defense Industries' sole national consultancy company which has a strategic role in the defense sector. Furthermore, it conducts strategic business partnerships in many projects with significant defense companies of Turkey such as ASELSAN, TAI, and HAVELSAN which provide services in the defense sector as suppliers. We provide effective solutions in consultancy, engineering, quality, and acquisition services within the Defense Public & Private Land Naval Air Security (Homeland Security) Education Energy STM Solution Portfolio Consultancy Services Acquisition Services Software Services Naval Technologies Certification Services development program for the last two years. STM has been successfully providing consultancy, engineering, project management, quality, acquisition, projects of education, energy, healthcare, transportation, and homeland security projects among the fields of public and private sectors. Healthcare Transportation certification, and logistics services for scores of land, air, 18 Innovative Ideas, Enduring Solutions Innovative Ideas, Enduring Solutions 19

STM Today Engineering and Consultancy Services Defense Technologies Software Engineering Information Technologies Business Technologies Transformation Systems Engineering Quality Software Services Real Time Applications Mission Planning & Support Software Avionics Software Business Applications Naval Technologies Surface Ships, Submarines, Underwater Vehicles Project Management Design, Integration, Construction Test and Trails Modernization Command, Control & Information Systems Software Enterprise Portal Systems Engineering Acquisition Services Integrated Logistic Support Consultancy Organization and Management, Shipyard Establishment Topics Main Service Target Sector Defense Sector Land Naval Air Public/Private Sector Education Healthcare Energy Transportation Homeland Security Acquisition Services Program Management Systems Engineering Logistics Management Project Management Contract Management Quality Certification Services Fly-worthiness; Specialty services in Certification Services 15 different disciplines Infrastructure Development of Certification Certification Technical Support Quality Fields Naval Technologies Surface Ships, Submarines, Underwater Vehicles Ship Construction and Repair Facilities 20 Innovative Ideas, Enduring Solutions Innovative Ideas, Enduring Solutions 21

The Defense Sector Conducting business in the defense sector requires high responsibility. While fulfilling this responsibility in the best way possible, we aim for more ambitious and higher goals as an internationally recognized center of excellence. Emre YAZICI Defense Projects Director has been providing engineering support services STM,which especially in the field of defense systems and projects and developing original concepts and solutions in the field of software / system development since 1991, has moved toward the goal of offering its advanced knowledge and experience acquired until this day into the service of the public and private sectors, and transforming that into a service network under a broad view. In this field, consultancy services, concept research and demonstration, feasibility analyses, technical and technological evaluations, civil aviation applications, and engineering solutions that require special expertise especially in acquisition projects that include advanced technologies have gained importance, and the studies are formalized through gradually commencing projects. The corporation purpose of STM, which was established by the decision of Defense Industry Executive Committee, is to provide support services to the Turkish Armed Forces and the Turkish Undersecretariat for Defense Industries (SSM) on systems engineering, technical support, project management, technology transfer, and logistics as well as to acquire software technologies for defense systems, develop software, establish and operate national computer centers for the purpose of maintenance / upkeep. With its mission to acquire critical technologies in the field of defense for Turkey, STM has defined as its new vision becoming an internationally respected service organization which produces technology-based consultancy and engineering solutions in military and public/private fields. Accordingly, sustaining and enhancing the quality and scope of the services provided in the fields required by our national defense and installing, institutionalizing, and developing the information and technological infrastructure in line with the national labor force and knowledge are included in the prioritized strategic goals of the company. Expansion of the mentioned strategic goals into the global scale and realization of product and service exportation in a level to compete in the fields of advanced technology throughout Defense Sector Land Naval Air Services Consultancy Systems Engineering Software Engineering Quality Acquisition Support Centers Certification the international markets constitute a significant dimension of the vision that STM has drawn for the future. STM, which has been located in a sector that has developed itself for years, has been conducting reliable studies within the activity fields such as engineering and consultancy services, development projects, and acquisition services. Acquisition projects consultancy services, concept research and demonstration, feasibility analyses, military/civil aviation certification services, R&D projects consultancy services, quality assurance services, installation and operation services for test / software / support centers, and information technologies enterprise infrastructure consultancy services are included within the scope of the consultancy services. Command Control Systems, Information Systems, Mission Support Systems, electronic Warfare Software, Avionic / Vetronic Systems Software, Image Intelligence / Appraisal Systems are developed within the scope of the development projects. As for the acquisition services, studies on material - service - system - spare parts acquisition, acquisition process management, establishing acquisition databases, installation and operation of acquisition infrastructure, establishment / management of acquisition organizations for long-term requirements are conducted. Coping with the development speed of technology demands an innovative and creative business approach and a technologybased company culture. The culture that has been developed in STM for 16 years is the main factor of our distinctiveness and success in all of our projects. 22 Innovative Ideas, Enduring Solutions Innovative Ideas, Enduring Solutions 23

Major Breakthrough by STM: Naval Technologies Savaş ONUR (Retd.) Rear Admiral, M.Sc. Naval Projects Director With its resolution to contribute in the breaking of new grounds on and under the seas, STM has placed into its vision providing services toward national and international requirements in naval technologies as one of its foremost strategic growth areas. Strategic Business Goals Integration of Naval Ship Building Projects to the Public/Private Sector Naval Platforms with High Added Value Dual Use Technology The project of warship design and construction by national capabilities, which has been aimed by the naval sector for 10 years, has been materialized with the MİLGEM project. The supply - acquisition of all materials, sub-systems, equipment materials, and the design and Integrated Logistic Support (ILS) services, except for the main propulsion plant and the combat systems, will be conducted by the responsibility of STM. For that purpose, the first acquisition contract between SSM - STM was signed on April 13,2006 and was renewed by expanding its scope on April 9, 2007. The construction of hull blocks of MİLGEM commenced at the shipyards of the Naval Forces Command, and STM is resolved to exert any effort in order for the project to be completed within the planned period. The breakthrough and experience that started with MİLGEM has lifted the barriers for the project models which will benefit from national resources and domestic infrastructures in other naval projects on the agenda of STM. The structuring and solution finding of STM toward projects in both above water and underwater categories will continue in an increasing speed. The structuring process in line with that purpose is continuing in an escalating pace. In addition to the structuring conducted in the headquarters, project group studies continue at MİLGEM Project Office allocated for the project at the Istanbul Naval Shipyard by Turkish Naval Forces Command and at our office in the technopolis in Gölcük, Kocaeli. Sub-contractor contracts are gradually being signed with companies that can offer input-benefit to the project and thus activities for providing functionality to the mission of introducing Turkish ship building supplier industry into the naval military industry continue at a fast pace. Our belief is absolute that the concrete outcomes of this breakthrough, which we consider as a significant step for Turkey, will lead to giant leaps in a short period of time. The immovable will and resolve in the acquisition authority, which undoubtedly has had a determining importance during the process of attaining the current stage, and the user continue to be our biggest assurance and source of motivation. Naval Technologies Defense Surface Ships Submarines Underwater Vehicles Project Management Design, Integration,Construction, Test and Trails Modernization Systems Engineering Acquisition Services Integrated Logistics Support Consultancy Public/Private Shipyard Layout Organization & Management Ship Construction and Repair Facilities The vision of STM is to become the sector leader in Turkey and a leading engineering and project management center of excellence abroad through the next 20 years by the vast knowledge and experience to be acquired from naval projects. 24 Innovative Ideas, Enduring Solutions Innovative Ideas, Enduring Solutions 25

The Public/Private Sector While providing direct contributions to the business outcomes of all the customers and business partners in the public and private sectors, we also contribute improving values to their business, quality, software, R&D, and operational processes through the features that we possess. Murat Kadir TURAL Public Projects Director Public/Private Sector Education Energy Health Transportation Homeland Security Consultancy Software Engineering Acquisition Projects Fields of Service Business Services Business Optimization and Quality Information Technologies Business Applications Services Systems Engineering Quality Logistics consultancy on operational levels, which contribute to the process. Supporting Turkey's strategy of transformation into the information society, goals are being developed to provide product development and/or application consultancy for business applications that have consultancy, engineering, and strategic characteristics toward action plans which will be conducted in short, medium, and long terms both in the field of the public and private sectors. In order to develop a bidirectional cooperation strategy in the national and international market, while we are pioneering project participations with our international business partners in the national market, we are also acting under a permanent and sustainable program for our business partners to benefit from our solution portfolio in the international market. Consultancy, software engineering, system engineering, quality, acquisition consultancy, and logistic support services are attached importance in the public and private sectors. For the business requirements of our customers, subject-based consultancies under the headings of "Business Services", "Business Optimization and Quality", "Information Technologies", and "Business Applications"; and our consultancy and engineering services for their optimization requirements in business technologies are undertaken primarily. For the projects that our customers conduct or will conduct in the public and private sectors, consultancy services are provided that can support strategic decision levels such as strategic planning in the corporate level, implementation road mapping, determination of priority R&D areas, business processes management, business and technology compatible change projects, feasibility reports, and development of competency centers. Anew "cooperation eco-platform program" is being implemented for the public and private sectors that were included in our strategic goals in 2005. The defense experience is aimed to be transferred into the public/private field through international producers and consultancy companies, solution-based system integrators, national consultants, and application companies which are the main actors of this system. Fields of education, energy, healthcare, and transportation are focused primarily for the public and private sectors. Studies are conducted in the field of security on the concepts of strategic planning for "homeland security", coordination with all other related sectoral institutions within the model, design of systems integrated with current and to-be-developed system infrastructures, and strategic consultancy and acquisition We cared solely and purely for the expectations of our customers and the business successes they would attain, by disregarding commercial concerns. Therefore, we keep excellence, costeffectiveness, quality, and benefits that we will provide to their business outcomes upfront in our approach to our customers. 26 Innovative Ideas, Enduring Solutions Innovative Ideas, Enduring Solutions 27

Consultancy Services Our consultancy services are designed toward the increase in productivity and efficiency to be obtained in the business outcomes of our customers. Zeki GÜNDOĞAN Project Manager, Systems Department As STM, we have been providing consultancy services uninterruptedly for 16 years. Our consultancy services are offered among various different disciplines and fields of expertise in defense, public and private sectors. Permanent continuation of the successes obtained in the national market through the international market is among the business objectives of STM. As with all the other business segments, our company provides consulting services based on processes compatible with TSE ISO 9001-2000 Quality Standard. Operations are also carried out in accordance with IEEE and Military Standards. With our portfolio depth in the consultancy services we offer and the consultancy services we have conducted in the field of consultancy, STM is the market leader. Defense Consultancy services are provided for different subjects in fields of land, naval, and air forces under the headings of "defense technologies", "information technologies", "naval technologies", "systems engineering", systems and technologies, electronic warfare systems, tactical wheeled vehicles, maritime technologies, network enabled capability (Network Centric Warfare), missile defense systems, and coastal surveillance radar systems are prepared by STM. The Defense Sector Defense Naval Technologies Public / Private Main Consultancy Services Systems Engineering Subject and Areas of Specialization Acquisition Projects Information Technologies Software Engineering Enterprise Information Management Naval Technologies Quality Certification "software engineering", "quality", "enterprise information management", and "certification" in long-term acquisition programs by taking new vision developments in defense concepts into consideration. The management of "engineering", "support", and "consultancy together, three important components in the projects by having specialized personnel from each of the land, naval and air forces, ensures that we obtain perfect business outcomes. STM offers consultancy services such as strategic planning support, acquisition roadmap development, system and technology assessments, supplier assessments, strategic transformation studies, R&D planning, concept, feasibility document, preparation, model, and system design on superior and detailed level, which provide a basis for decision support and decision processes with regard to the management levels in the field of defense. Feasibility and strategy documents on many strategic Public and Private Sectors A new program has been implemented since 2005 in order to provide solutions for public and private sectors toward the purpose of contributing to strategy and action plans for the transformation into the information society. We provide consultancy and product development services within the scope of "homeland security" concept and modeling studies as well as education, energy, healthcare, and transportation sectors under the headings of "Business Services", "Business Optimization and Quality", "Information Technologies", and "Business Applications" for the related sectors under this program. As STM, we provide services on consultancy, engineering, and operational levels in order to enable systems within the public field to operate holistically and compatibly within the scope of homeland security and toward the development of the homeland security concept. topics, especially in the field of defense, such as satellite 28 Innovative Ideas, Enduring Solutions Innovative Ideas, Enduring Solutions 29

Software Engineering Our software function comprises the part of our intellectual capital to which we attach utmost importance. We develop this strategic aspect of our company every year through a continuous and sustainable growth policy. Murat İKİNCİ Software Group Manager Real Time Software While sustaining our assertion of success for software projects with a high level of difficulty which are critical and the first of their kinds from the system view, we realize each new project with a great motivation as if it were our first under the R&D view. Business Applications J2EE SOA STM Software Engineering Portfolio. NET CORBA Embedded Software Middleware and System Software We provide software services of quality and high standards to our customers with our consultancy and product development services in the software engineering field together with our experiences acquired through our completed and ongoing projects. Software Engineering services are implemented within the scope of processes developed in accordance with SEI (Software Engineering Institute) CMMI (Capability Maturity Model) Level 3. The software engineering processes are compatible with IEEE 12207 and Mil-Std-498 standards, and have NATO AQAP-160 requirements on levels higher than their expectations. As STM Software Engineering Group, we have always achieved successful results without making concessions from the functionality and quality by efficiently implementing methods and international standards defined within the quality system principles and obtained a vast body of customer references. Within the scope of the consultancy and software project contracts we signed with our customers, we proved our difference and competitive power of undertaking business outcomes within target periods without exceeding the costs and in the expected quality and TSE ISO 9001-2000 quality certifications. with our quality system by our satisfied customer Until today, we have succeeded in developing solutions that fully meet the customer demands and references. Our group has a large software engineering resource, 30 Innovative Ideas, Enduring Solutions Innovative Ideas, Enduring Solutions 31

experience, and infrastructure in the fields of "Business Applications", "Real Time Software", "Middleware and System Software", and "Embedded Software". STM continues authentic and initial product development projects by always keeping an innovative and creative view and R&D elements on the foreground and using critical technologies. Software engineering tools and most recent technologies that support the industrial standards are being used in all of the software developed on J2EE,.NET, and COBRA/SOA software platforms. Defense Sector STM software department has proven itself in the field by customer satisfaction and references it has created through successfully completing many important projects in the defense sector, the currently on-going ones and its potential of undertaking various new critical projects STM software department, which has many references on consultancy and product development in the software projects, provides high quality services in the defense sector. Public and Private Sectors STM conveys its software engineering experiences acquired through many years of practice in the field of defense to the public and private sectors through the quality system. As in the defense sector, consultancy and product development services are mainly taken into the focus in public and private sectors. Software Engineering Defense Public / Private Consultancy Services Software Engineering Software Security Software Life Cycle Process Improvement Software Test and Performance Management Transformation into Service Based Architecture Software Project Management System Architecture and Software Middleware Enterprices Business Applications Middleware Guidance Product Development Mission Planning and Support Systems Software Business Flow and Process Applications Avionic System Software Enterprice Portal Image Intelligence and Appraisal Systems Software Enterprice Business Applications Command Control and Information Systems Software Customer Specific Software Electronic Warfare Software Real Time Applications Flight Control Software Business Acumen Applications Tactical Fire Direction Software Geographical Information Systems Software Formatted Message Software Embedded Software 32 Innovative Ideas, Enduring Solutions Innovative Ideas, Enduring Solutions 33

Systems Engineering We are continuously developing our system leadership created by our creative and innovative human resources that contributed to our successful business outcomes we have shared with our customers for years. Hakan AYÇENK Systems Manager Systems Engineering Defense Public/Private Requirements SystemAnalysis/ Analysis Design System Integration System Testing Communications and Satellite Systems Command Control Information Systems Defense Electronics and Security Systems Defense Platforms Customer Need Identification Naval Technologies Risk Analysis Feasibility/ Concept development and validation development Prototype As STM, we apply systems engineering concepts and processes in consultancy, product development, support and R&D projects. We constantly improve our systems engineering capabilities in line with the technological advances. We successfully provide engineering services for the modeling, improvement, production, control, and design of complex systems within a defined cost and time constraints in the field of Systems Engineering. We develop solutions for large-scale real life problems by using appropriate methodologies, procedures, and theories of our selection in our projects. The Systems Engineering Department handles the problems as a whole and guarantees the success of the projects by creating a harmonic working environment among different disciplines. Consultancy Electronic Warfare Systems Weapons Systems Command Control Systems System Integration Satellite Systems Wireless Technologies Antenna/Microwave Acoustic Systems Border and Coastal Security Military Platforms Aerodynamics Electricity/Electro-mechanics Strategic Planning Strategic Road Mapping Study System Analysis and Design System Integration Homeland Security System Model System Sustainability Product Development Mission Management Systems Image Intelligence and Appraisal Systems Flight Control Systems Formatted Messages Command Control and Information Systems Decision Support and Information Management Systems Homeland Security Sub-sytems System Integration between Institutions 34 Innovative Ideas, Enduring Solutions Innovative Ideas, Enduring Solutions 35

Our approach within the scope of the Systems Engineering activities is defined as to develop new concepts by following the required technologies closely in defense, naval technologies, public and private fields and on-schedule realization of studies toward the design, integration, and system support of the system, subsystem, and parts within the discipline of the systems engineering. Furthermore, we provide qualified, costeffective and rapid engineering solutions in line with the requirements of the customers. STM Systems Engineering services are provided within the scope of processes developed in accordance with the SEI (Software Engineering Institute) CMMI Level 3 (Capability Maturity Model Integration). The Systems Engineering processes are compatible with Mil-Std-499 IEEE 1220 and EIA 632 Standards and realized in accordance with the requirements of AQAP-160 and ISO 9001-2000 Quality Management Systems. On the other hand, we are developing our Systems Engineering processes within the scope of consultancy services in compliance with the CMMI services expected to be issued in June, 2007. In the current situation, our consultancy services are conducted within the scope of ISO. STM Systems Engineering Department conducts its studies on interdisciplinary areas such as defense systems, weapons systems, naval technologies, security systems, and command control systems. Different areas of expertise such as electronics, mechanics, aviation, quality, control engineering, and computer and software engineering are being utilized in the targeted final system solution, and many important projects have been conducted successfully, on-schedule, within the planned budget, of high quality, and in expected functionality. As STM Systems Engineering department, we provide systems engineering services to our customers under five main groups of expertise; Communications and Satellite Systems Command Control Information Systems Defense Electronics and Security Systems Defense Platforms Maritime Technologies Our Systems Engineering Department which comprises of experienced and well-trained personnel consists of engineers and field experts that are specialized in various areas. The STM personnel conduct development and technical support activities on the following key areas within the scope of the systems engineering in the projects. Strategic Planning Requirements and Business Process Analysis System Analysis/Design System Integration Testing and Evaluation Feasibility/Risk Analysis Prototype Development Concept Development and Validation 36 Innovative Ideas, Enduring Solutions Innovative Ideas, Enduring Solutions 37

Acquisition Consultancy Acquisition consultancy, in which various disciplines interoperate, is the least known, but it is a service field where we convey the most valuable results to our customers. Therefore, we have a seperate center of excellence which provides professional acquisition services. Cumhur ÇINAR Contracts Manager Acquisition Consultancy Since our establishment, we have been continuing strategic procurement activities for various defense industries projects most of which include advanced technology applications through our qualified team of experts mainly comprising of engineers. We are realizing these activities by keeping the principles of objectivity, reliability, and transparency in the foreground, in due time and quality required by the customer, and in a cost-effective approach. For this purpose, the acquisition processes that begin with the design and continue until the end of the warranty period are constantly being developed by taking the customer satisfaction into consideration. We possess a highly considerable database of suppliers which includes the facilities and capabilities of many national and international companies. The mentioned database which has been formed within the scope of our acquisition activities in various projects is constantly updated. We are aiming to convey our experience and expertise, which we acquired through the acquisition services we provided mainly for the defense industry, to the international markets as well as directing them to the Turkish public and private sectors needs within the framework of our strategic plans. In line with this objective, we attach a vast importance to forming cooperation models with national / international individuals and corporations having expertise on their fields. Our acquisition services that we conduct by our specialist groups are managed through three main processes, namely "Pre-Acquisition Services", "Contract Development Stage", and "Acquisition Management Stage", for risky and complicated procurements of material, system, product, and outsourcing services, which are highly sensitive in terms of confidentiality and security. While providing the aforementioned services until the delivery and acceptance stages in accordance with the contract, we, as STM, can continue to conduct controlling services during the warranty periods depending on the customer needs. Furthermore, as well as establishing acquisition infrastructure, developing acquisition processes, and providing necessary expertise and system installation supports with our team of experts for institutions that are / would be conducting acquisitions of constant and large scale, we can also provide operational/administratoral support within the required periods. In this period, by establishing supplier databases in the institutions, tracking and evaluation of the suppliers under the performance system, and measuring of the competencies and service qualities of the suppliers within the acquisition processes, basis for the activities regarding short-list preparations are provided for future acquisitions. Pre-Acquisition Services Contract Development Stage Acquisition Management Stage Analysis of Customer Needs, Determination of the scope of the acquisition, Preparation of the acquisition requirements in accordance with customer needs and the scope, Researching present / potential suppliers in the domestic and international market, Comparison and evaluation of companies and products before receiving the proposals, Preparation of Request for Proposals including technical and administrative specifications and receiving the proposals, On-site inspection of companies that have submitted / would submit proposals, Preparation of proposal evaluation report including company selection. Delivery Schedule Price and Payments Securities Warranty and Integrated Logistics Support Installation Integration Trainings, Contract Management Deliveries Payments Securities Acceptances and Delivery Control Trainings Warranty Change Management Risk Management Relations Management Problem Management Tests and Acceptances Reporting 38 Innovative Ideas, Enduring Solutions Innovative Ideas, Enduring Solutions 39