PRESENTATION OF TCHERNO MORE

1. PRESENTATION OF TCHERNO MORE

2. COMPANY Tcherno More Co., Varna is the successor of a state owned enterprise established since 1966 for production of civil and defence radar equipment Now, Tcherno More Co. is a joint stock company, where 100%of the shares are owned by private shareholders. The company is ISO 9001 :2000 and AQAP 2110 certified

3. SCOPE OF BUSINESS Design, production and trade with: • Marine and River Navigation Radar Systems for Large and Small Ships; • Ground Radar for Automatic Detection, Tracking and Identification of Moving Ground Targets at the Range of up to 8 km; • Coastal Radar Systems; • Airport Surface Movement Radars; • "BS" SART; • Medical Equipment and Aids for Disabled People; • Mechanical Modules for Control Rooms; • Spare parts and Accessories for Vehicles and Forklifts; • Wood-processing and Other Hobby Machines; • Special Tooling Equipment; • Consumer Goods.

4. RESEARCH ACTIVITIES • Radar Systems • A range of pulse navigation radar systems in X-band; • Ground Doppler radars for automatic detection of moving targets.

5. RESEARCH ACTIVITIES New modules and units were developed based on FPGA matrixes, signal processors and surface mounting, which provide: • Radar control; • Analogue signals digitizing; • Converting polar co-ordinates into Cartesian ones; • Raster-scan display of 1280x1024 pixels, with repetition frequency greater than 60Hz; • Automatic detection, tracking and determination of moving parameters of up to 200 targets for a module; • Entering and display of map data, etc. • Antennas. Production of wave-guide slotted antennas for X-band with linear horizontal or fixed circular polarization; • New River Radar - MK6217 - with colour display, industrial production based on 18,1" TFT matrix built in radar with a standard RGB input signal.

6. NEWPROJECTS At present we are researching and trying to implement: • 21 feet antennas with horizontal and circular polarization for the floating-vessels movement control systems; • Ground-based radar capable of detecting a person up to 8 km distance and a vehicle up to 10 km. • Stream-lined antennas with lighten reduction gear for the new marine and river radars • integrating AIS transponder in CSS –Varna 1 and Coastal River Radar МК 6219 RTM

7. IMPLEMENTION OFENGINEERING PROJECTS • Coastal radar systems for vessel traffic surveillance; • Antennas with horizontal polarization for the 3cm band and length of 7, 9 and 18ft. • A range of transceivers with 4, 12 and 25 kW pulse power and high-sensitive receivers with logarithmic or linear characteristics; • Display units and modules for trackingup to 200 targets; possibility to compress and transfer radar data about targets; The company has implemented similar projects for the purposes of the Navy, Border Police, Maritime Administration for Bulgaria, for Slovakia and partially for Finland. • Airport surface movement radars providing surveillance of airports at lack of visibility; • Mechanical modules for the equipment of airport control rooms.

8. TECHNOLOGICAL CAPACITIES 1. FOUNDRY Processes: • Loam casting of aluminium • Pressure casting of aluminium • Investment casting of ferrous and non-ferrous metals Area: 1500 m2

9. TECHNOLOGICAL CAPACITIES 2. WORKSHOPS FOR MACHINING BY CHIP BREAKING - Precise machining of rotary and case parts. - Production of gears with modules from 0.3 to 5mm. Area: 3000 m2 Machines: - Ordinary lathes and cutters - Gear-cutting machines - CNC rotary machines - Boring-milling machines - CNC machining centres - CNC-DEA measuring centre

10. TECHNOLOGICAL CAPACITIES 3. WORKSHOPS FOR SHEET MACHINING - STEEL AND NON-FERROUS METALS Production of parts and assemblies out of sheet material - cases, boxes, panels, etc. Area: 3500 m2 Machines: - Ordinary eccentric presses (6, 10, 25, 40, 63 and 160t) - Hydraulic presses (40, 63, 100 and 250t) - CNC co-ordinate press (“RASSKIN”-102-2) - CNC laser complex - Sheet-bending machines - Welding machines

11. 4. WORKSHOPS FOR CHEMICAL TREATMENTApplication of:- Electroplating - zinc, cadmium, chrome, silver, aluminium eloxation, hard anodising, etc.- Varnish and paint coatings – manuallyArea: 2000 m2 TECHNOLOGICAL CAPACITIES

12. TECHNOLOGICAL CAPACITIES 5. WORKSHOPS FOR PRODUCTION OF PCBs Production of one and double-sided foiled PCBs. Capacity: 50 m2/h. Area: 1500 m2 Equipment: Schering, Chemcut and Argon processing lines. 6. WORKSHOP FOR PCB MOUNTING Components soldered: - manually, and - by a wave-soldering and SMD system Area: 1500 m2

13. 7. WORKSHOP FOR ASSEMBLY AND TEST OF ELECTRIC EQUIPMENTThree-dimensional wiring and test.Area: 8600 m28. WORKSHOP FOR PLASTICS- thermoplastics - thermosetting plastics - vacuum-moulded plastics Equipment: - hydraulic presses - injection presses TECHNOLOGICAL CAPACITIES

14. 9. WORKSHOP FOR TRANSFORMERSProduction of mains, pulse and high-frequency transformers, chokes, coils, etc.- cores- coiling- impregnation and filling Area: 720 m210. TOOLING EQUIPMENT PLANTDesign and production under Customer’s request of:- stamp tools- moulds and spray-forms- cutting tools- stand equipment Equipment:- Machines for fibre erosion- Machines for three-dimensional erosion- CNC machinesArea: 3700 m2.11. LABORATORY FOR ELECTRICAL, MECHANICAL AND AMBIENT TESTS TECHNOLOGICAL CAPACITIES

15. MARKET POSITIONS The management team developed long-term contacts with: • “Northrop Grumman Sperry Marine”, The Netherlands – the company with the world biggest market share for radars production and distribution; • Air Traffic Control Authority of Bulgaria. • Bulgarian Border Police • Ministry of defence of Bulgaria • Bulgarian Navy • The company is the only Bulgarian producer of marine/river radars and navigation aids.

16. FOR ANY FURTHER INFORMATION AND BUSINESS CONTACTSPLEASE, CONTACT TCHERNO MORE Co. 256, Vl. Varnentchik Blvd. 9000 Varna, Bulgaria Executive Director Tel.: +359 52 500 535 Fax: +359 52 500 545 E-mail: office@tchernomore.com Marketing Tel./Fax: +359 52 500 532 E-mail: sales@tchernomore.com Sales Tel. +359 52 500 523