STATEMENT OF PRESENTATION S Tohan S A

STATEMENT OF PRESENTATION S. Tohan S. A. is headquartered in Zarnesti, Brasov county. Zarnesti lies in central Romania, at a distance of 25 km from one of the most important industrial centers of the country-Brasov. The company is located in the foothills of Piatra Craiului Mountains, an area of great beauty. In neighboring you can find medieval monuments and relics such as Rasnov Citadel, and Bran Castle, which is bound to the well known legend of Dracula character.

S. TOHAN S. A. Zarnesti, was established in 1938 as part of MALAXA industry group, reference group in the interwar period. Since its establishment, its production was intended exclusively to the army, but during the next years, production diversified according to necessities. Currently, as a result of research and design team work and production capacity development, the products made meet the requirements of our business partners.

ACTIVITIES Activities are done under the laws of Romania, as follows: > Manufacture of ammunition and weapons; > Manufacture of explosives; > Research, design, approval, testing of specific products; > Import of raw materials, parts, reference models and know-how, etc. needed for production; > Possession, storage, handling and transporting of goods inbound and outbound for military products; > Recyclable waste and metal and non-metal scrap recovery; > Testing and technical analysis Over the years there have been assimilated and manufactured in the company a wide range of military technique products, such as: > 37 , 57, 76, 85, 98, 100, 122 and 130 mm artillery ammunition, with different war components (explosive, boring, perforating tracer, illumination, to distribute printed material, etc. ). > Ammunition 125 mm for cannon D-81 on the tank; > Unguided reactive ammunition: - Ammunition 122 mm with explosive war components, with balls, with preformed elements - Ammunition 82 mm with aerosols, passive jamming, heat traps; - Ammunition 57 mm type S 5 M, S 5 K

ØFuzes for missiles: - Impact: MRV-U, MRV-UBM - Multiple functions (time, proximity or impact ) MFF-2 T > Fuzes for artillery ammunition: - For explosive ammunition RGM-2, V-429 - For illumination ammunition: T-7 > Fuzes for mortar bombs 60 mm, 81/82 mm and 120 mm: T-1, ETF-1 MT, PTF-3 T > Fuzes for ammunition 125 mm from the tank: V 429 E > Navy products: -River and sea mines (magneto-acoustic type MMA-1, MMA-2 and contact with antennas type MMCA-1 and MMCA -2; - Grenades to destroy dams GDF -2; - Reactive grenades GR-66, GR-1200, GR-2500, GR-6000; - Anti-descent mines and mines against air-cushion vessels MAD-1, MAD-2, MLA, MRA-80; - Portable mines for underwater destruction MP-1, MP-2; - Grenades against divers GIS -1 - Mines and anti submarine bombs BAE-1, GAS-66. > Pyrotechnic Stuff: - Units for different types of missiles; - Pyrotechnic staples; - Torches and tracers for different calibers. - Port primer screws > Portable launcher for reactive ammunition 122 mm with shorter range (12. 5 km).

Part of these products, because of international circumstances and obsolescence, are not produced currently. However, our company is able, if required, to call into operation fabrication lines and to resume production in classic version or based on modernization required by the beneficiary. Of course, this recalling into operation involves some costs imposed by the new fabrication. FABRICATION LINES To perform activities related to military production, S. TOHAN S. A. has the following fabrication capacities: > Machining lines, references and mechanical subassemblies for war components, projectiles, bombs, reactive motors, fuzes, etc; > Load lines with pyrotechnic substances and mixtures; > Lines for assembly and final montage;

> Lines for heat treatment activities (IPSEN line); > Lines for protection cover operations, like: zinc, cadmium, tin, elox, nickel coating, browning etc); > Lines for painting operations; > Lines for wooden package fabrication operations. For performance of dismantling-delaboration and destruction operations, S. TOHAN S. A. has: > Pyrotechnic workshops;

> Warehouses to store ammunition; > Warehouse for non-pyrotechnic materials obtained after dismantling-delaboration. > Polygon to destroy explosives and ammunition subassemblies; > Workers, auxiliary and highly qualified staff in pyrotechnics. For static tests on ammunition, the company has the equipment necessary to perform tasks and tests required by documentation.

Part of the dynamic and static tests that involve tests related to checking products or units charged with explosive substances are performed in our polygon, within the company. The company has laboratories for physical and chemical tests for materials and substances involved in production, metrology laboratory and laboratory for water test. To transport pyrotechnic substances and ammunition, the company has a specialized means of transport for dangerous products class I Ex III, according to ADR. According to Romanian law, S. TOHAN S. A. is guarded by specialized staff.

S. Tohan S. A. has a department of research-design with highly qualified staff in ammunition, some of them being specialized at Military Technics Academy. Technological flow coordinators are as well highly proficient in this area. Staff working in the pyrotechnic area is qualified too. PRESENT AND PERSPECTIVE Now the company produces the following: > reactive ammunition 122 mm - range 21 km and 42 km; > impact fuzes MRV-U and MRV-UBM, multiple functions fuzes MFF-2 T for reactive ammunition; > ammunition 122 mm explosive and illumination ( md. 38 and D-30); > impact fuzes and time fuzes for ammunition 122 mm and 130 mm; > illuminating mortar bomb 60 mm, 81/82 mm and 120 mm; > time fuze and electronic time fuze with programmer for illuminating mortar bombs: T-1, ETF-1 MT and PTF-3 T; > ammunition with explosive or inert grenade 40 x 47 mm; > ammunition elements (caps, tracers, SPA, torches etc. ); > various ammunition components; > dismantling, delaboration and destruction of different ammunition categories. Our company is aware that its future is related to products modernization and new products. Modernization of products follows these directions: 1. Modernization of reactive ammunition 122 mm, through: a) increasing range to over 42 km. Demonstrative tests were carried out using a rocket motor supplied by a state member NATO. The results obtained proved the fact that the rocket reaches higher performances than expected, both in range and in precision. We intend to homologate this reactive ammunition in the near future; b) bringing into fabrication new war component types. 2. New products a) fabrication of a multiple functions fuse to operate in the three modes: impact, time or proximity. This fuse MFF-2 T was successfully tested in May 2009, and in the magazine Jean’s in January 2010 was published an article on this theme. equipped with detonator

b) assimilate and modernization of ammunition with illumination bomb. S. TOHAN S. A. already develops ammunition with illumination bomb 60 mm, 81/82 and 120 mm, with high performances in range, precision, time and light intensity. For the ammunition 81/82 mm and 120 mm, an electronic time fuze was made, with better performances than mechanic and pyrotechnic ones (ETF – 1 MT). Ammunition 60 mm with illuminating bomb is equipped with fuze T-1, ETF-1 MT or PTF-3 T. ETF – 1 MT with PROGRAMMER Bombs family 60 mm, 81/82 mm and 120 mm

e) fabrication of ammunition with explosive or inert grenade 40 x 47 mm. AMMUNITION 40 X 47 MM WITH EXPLOSIVE GRENADE GETZ – 40 mm AMMUNITION 40 X 47 MM WITH INERT TRACER GRENADE GITZ– 40 mm

Dismantling-delaboration activity is another direction of the company activity, considered when the development strategy for the next years was concluded. Considering the high amounts of ammunition at international level and their obsolescence, or out-dating, the company appointed two directions: - Development of dismantling - delaboration, destruction or recycling of substances for military products type EAST, for which the company has knowledge and technologies. S. TOHAN S. A. has performed for several years these activities for different categories of ammunition with expired service time or in excess, in the Romanian Army warehouses. - Development of dismantling-delaboration, destruction or recycling of military products WEST type, which can be performed as well with foreign partners, who provide products and documentation to know these products. The beginning of this activity was collaboration with a western company which brought to Romania products to dismantle-delaboration. A problem that we need to solve is to find a partner and necessary funds make this activity ecological according to European norms.

Lately, at S. TOHAN S. A. the following investing activities took place: - heat and energy sectors - a vert modern station for neutralization - equipping the physical - chemical laboratory with last generation equipment To modernize any activity at S. TOHAN , and to meet European environment norms, now the company develops the following investment programs: - Modernization montage line reactive ammunition; - Company security; - Modernization of line to operate fuzes. - Modernization of demilitarization-delaboration lines Activities of modernization of lines have started by purchasing CNC equipment and by purchasing CNC equipment, OKUMA lathes, centre ROMTOS, equipment to cut, modern welding operations, (LOCH), means of intern transport etc.

The team who assures at the moment the management of the company is made of: General Manager dipl. eng. Voina DAN Production Manager dipl. eng. Silviu JORA Economic-Financial Operations Manager dipl. ec. Cristina BACIU Operations, Commercial Transactions Manager dipl. eng. Marius FRINCU Quality Control and Research Manager dipl. phys. Mircea TANTAU Security Utilities and Services Manager dipl. jur. Nicolae NILA

All the products and services of the company are made based on the quality system certificate by CERTIND: SR EN ISO 9001: 2008 and AQAP 2110: 2006.

FUTURE’S PARTNER