R&D ACTIVITIES AT ELECTRON PROGRESS AD SOFIA, 29 JUNE, 2007

1. R&D ACTIVITIES AT ELECTRON PROGRESS AD SOFIA, 29 JUNE, 2007

2. CONTENTS • HISTORY AND COMPETENCIES • R&D ACTIVITIES

3. HISTORY AND COMPETENCIES

4. History • Established in 1976 as an Institute for Defense Electronics, designed to provide R&D of special electronics and equipment for the state needs; • In 2002 – privatized as Electron Progress АD and 100% private ownership achieved in 2004; • Electron Progress AD has sustained the leadership in the Bulgarian Defense Industry for around 30 years, continuing to improve its performance; • In 2004 the company was announced as Strategic Partner of the Bulgarian Ministry of Defense; • Electron Progress AD develops, manufactures and integrates communication and information systems for the defense and the national security.

5. Being the First in Bulgaria • 1996 – The first BG company representing a US Defense Company; • 1997 – The first BG company involved in Foreign Military Funds (FMF); • 2003 – The first BG company NATO AQAP 2110 Certified; • 2004 – The first BG company managed by a US CEO; • 2004 - The first BG defense company presented at the London Fund Exchange Investors; • 2005 – The first BG company awarded NATO BOA Agreement; • 2006 – first Bulgarian company applying the offset approach to assemble last generation of Harris radio-communications equipment.

6. Turn-key solutions in wide area network communications and information technology sectors; Design and System architectureofcommunication and information systems; Design and Integration of C4ISR systems; Software development; Competencies • Range of choice of equipment, logistics and equipment integration; • Training and service support; • Proven project management capabilities in national security and defense projects; • Research and development in the anti-terrorist domain.

7. Basic Ordering Agreement • Electron Progress AD is the first Bulgarian company signed BOA with NATO Consultation, Command and Control Agency (NC3A); • BOA provides participation of qualified firms, under the principles of non-discrimination invariousprojects especially in the IT area; • This gives serious advantages and it means that our company becomes a NATO preferred partner and it has been granted easier access to assignment and performance of tasks and projects for the purpose of the Alliance.

8. Projects Electron Progress AD is proud to present the developed projects: • Ministry of Defense Nationwide Telecommunication Backbone System “Strandja-2” • European Emergency Number 112 • Comet M- counteracting IED • National Military Command Center (NMCC) • Crisis management systems

9. Strandja-2 Strandja-2 is the telecommunications backbone network of the Bulgarian Army. The project is being realized on the entire country’s territory. The system provides real time data, voice and video transfer. Electron Progress AD provided a turn-key solution to the Ministry of Defense and Bulgarian Armed Forces for the development of the system. Services based exceptionally on client demand.

10. European Emergency Number 112 • Coming quickly to the rescue in an emergency, providing immediate assistance in a road accident, ensuring active support for the victims of disasters-this is what people expect from the brigades, police forces and ambulance services; • IECC provide all the functions required to efficiently manage any incident; • All emergency calls are received, even type and location are determined, the proper action resources selected and, finally, commands issued to the appropriate resource, such as fire department, police station, first-aid service, vehicles or foot patrol.

11. R&D ACTIVITIES

12. R&D ACTIVITIES  Ideas  Analysis  Brainstorming  Requirements gathering  Development and testing  Solutions and systems deployments

13. R&D Problems • Budget for R&D – from 3% until 7% or more? • Shortage of motivation in the staff about R&D; • Want of projects financing from THE GOVERMENT; • Evidence for expedience.

14. Decisions of R&D Problems • Jointly activities with leading company; • Work in a short time; • Contacts with universities; • Developing of know-how for strategic fields and directions.

15. R&D ACTIVITIES AT ELECTRON PROGRESS AD • SYSTEMS, WHICH PREVENTS REMOTE CONTROLLED DETONATION OF IED; • SOFTWARE FOR NATIONAL SECURITY AND DEFENSE; • SYSTEM FOR MONITORING, EARLY WARNING AND SIGNALING; • CRISIS MANAGEMENT SYSTEMS; • ANALYSIS OF EXISTING INFORMATION SYSTEMS INCLUDED IN NATIONAL SYSTEM FOR MONITORING, EARLY WARNING AND SIGNALING; • DEVELOPING OF METHODOLOGY FOR CREATING OF PLANS FOR PROTECTING AGAINST DISASTERS AND SYSTEM FOR ASSESSING OF CRITICAL INFRASTRUCTURE ON MUNICIPALITY LEVEL.

16. COMET M Human lives protection technology State-of-art device for counter measuring remote detonation of IED, activated by radio frequency channels and non-professional Remote Controlled detonation devices protected communications channel special counteracting algorithm developed according to NATO standards The device protects, military and civil convoys buildings, ports, airports, strategic objects etc

17. SOFTWARE FOR NATIONAL SECURITY AND DEFENSE-National Military Command Center (PROJECT) • Description & Scope • Visual processing and distribution of crisis management information; • Thesystemperformsmonitoring, analyzesandevaluatesthesituation, distributestheinformationwheremust, managesdatabases, supportsthecoordinationalltheactivitiesintheprocessofmilitary crisis or situation; • Full physical and informational security with access levels, ID access control; data encryption. SOFTWARE FOR MD – Naval Forces Project • Description & Scope • Visual processing and distribution of crisis management information

18. Crisis management system • Ourpurposeistoprovidesolutionsforeffective, full-timeoperatingsystemforsurveillance, informationexchange, earlywarning, preventionand crisis management; • Buildingacrisismanagementcenterswillallow 24/7 surveillance, analysisandevaluationofthesituation, thepotentiallydangeroussites and objects, thedisposableresources, forces and equipment; • Such center will provide the officers with needed information for taking the optimal decisions in times of crisis, accidents and terrorism; reliable connection with the state administration and the exchange of information itself.

19. ANALYSIS OF INFORMATION SYSTEMS INCLUDING NATIONAL SYSTEM FOR MONITORING, EARLY WARNING AND SIGNALING OBJECT • ANALYSIS OF LAWS, CREATING THE RECOMMENDATION OF NEW LAWS ADAPTING WITH THESE IN EU; • ANALYSIS OF EXISTING INFORMATION SYSTEMS FOR MONITORING, EARLY WARNING AND SIGNALING ON NATIONAL AND MUNICIPALITY LEVEL; • CREATING THE RECOMMENDATIONS FOR THE MODERNIZATION AND CONSTRUCT OF NEW INFORMATION SYSTEMS; • PREPARATION AND EDUCATION OF MAYORS, GOVERNORS, PUBLIC SERVANTS OF REGIONAL ADMINISTRATIONS.

20. DEVELOPING OF METHODOLOGY FOR CREATING OF PLANS FOR PROTECTING AGAINST DISASTERS AND SYSTEM FOR ASSESSING OF CRITICAL INFRASTRUCTURE ON MUNICIPALITY LEVEL OBJECT • DEVELOPING OF METHODOLOGY FOR CREATING OF PLANS FOR PROTECTING AGAINST DISASTERS ON MUNICIPALITY LEVEL; • DEVELOPING OF METHODOLOGY FOR CREATING OF SYSTEM ASSESSING FOR CRITICAL INFRASTRUCTURE ON MUNICIPALITY LEVEL; • PREPARATION AND EDUCATION OF MAYORS, GOVERNORS, PUBLIC SERVANTS OF REGIONAL ADMINISTRATIONS.

21. Principal contractor of modernization projects for the Bulgarian Army; Integration and development of C2, C3, C4ISR systems; Participation in NATO and EU programs; Development and integration of communication and information connectivity for corporate clients; Development of center of excellence for specialized hi-tech training and tests. PLANS FORR & D ACTIVITIES IN THE FUTURE

22. Thank you!1309 Sofia, Bulgaria1, Kukush str.Tel: (+359 2) 81 27 315Fax: (+359 2) 82 11 284E-mail: office@eprogress.bg www.eprogress.bg