Letter of Intent was Signed Between TAFF and SAAB

SAAB, performing defence and security activities in Sweden and having net sales of 3.3 billion $ as of 2011 year-end with 13.000 personnel and TAFF (Turkish Armed Forces Foundation) having net sales of 1.8 billion $ as of 2011 year-end with 11.000 personnel reached a consensus on forming a cooperative platform with the suggestion of TAFF.

TAFF General Manager Hayrettin Uzun had the opportunity to convey his views for the establishment of a cooperation between SAAB and TAFF during his visit to SAAB CEO Hakan Buskhe between 17-21 September 2011 and proposed to sign a letter of intent in order to develop business and explore new business opportunities to third party countries as well as Turkish and Swedish domestic defence markets.

The aim of this non-binding letter of intent signed on 13 July 2012 in Ankara is to add value to the ongoing activities of the both parties in global defence industry markets, to make business primarily in third party countries and to generate new business opportunities towards the Turkish and Swedish domestic defence markets.

Following the award of the letter of intent, both parties will identify the potential export activities to third party countries as well as business opportunities towards the Turkish and Swedish domestic defence markets within 6 months. The expectation of SAAB and TAFF is to finalize the joint study on business opportunities within 6 months.

These studies will be executed by an Executive Committee to be chaired by SAAB CEO and TAFF General Manager as Co-Presidents and formed by the members from both parties. The Committee will meet at least once in a year in order to evaluate the current developments as well as the progresses achieved in such cooperation.

With this letter of intent, a long lasting and effectual cooperation is expected to be established amongst the popular two group companies in order to meet the requirements of third party countries as well as Turkish and Swedish domestic defence markets. The business volume of TAI, Roketsan, Havelsan and SAAB Aeronautics, Dynamics, Electronic Defence Systems, Security and Defence Solutions, which have already cooperated in various fields until now, is expected to increase with this letter of intent.