12 July 2005

Giant Defence Industry Order To Otokar

Otokar, the leading brand of the defense industry in Turkey, received a defense industry order from abroad for 600 vehicles, with a total value of USD 88,4 million, including spare parts and training.

Otokar shall begin the delivery of the orders in the last quarter of 2005 and deliver the rest in various shipments during the year 2006.

Regarding the order, Mr. Kudret Önen, General Manager of Otokar said, "This single agreement in the realm of export is the largest abroad defense industry order we have ever received until today. Otokar has produced 1400 units of wheeled tactical armored vehicles since 1990's. With this order we shall produce as much as half of the production we have concluded within the last 15 years. Our armored vehicle production unit shall be producing 40 vehicles per month by the end of the year 2006. This is a very important amount and a serious capacity for the production of armored vehicles. This order has an additional importance for us as it is an order for export. In this way, we are proving the power of Otokar in world's defense industry once again. We have become the brand name of Turkey in the global markets of the defense industry".

Adding that they have been proceeding in parallel with their goals for the year 2005, Mr. Önen went on to say, "We have already stated that we will extend in the market of exports and in defense industry in 2005. We are advancing in this aspect with great velocity. Our last order is the greatest proof for this. Now we are attending to the delivery of the orders we have received by the end of 2004 and the beginning of 2005, our factory is operating on high capacity. We shall begin working on the order for 600 units as of September. As Otokar, our goal is to grow with the products for which we hold the intellectual property rights and to increase the share of the defense industry in our total turnover from the rate of 15% in 2004, to 30% in 2005."

Otokar, the leading producer of Turkish defense industry, made a leap in the last quarter of 2004 and received important orders, and the orders received in this period also continued during the first months of 2005.

Finally, Otokar signed the agreement for 10 Cobra armored vehicles last week. The total value of the order amounts to USD 2,6 million including the spare parts and user training.