Turkey has started to experience the effects of the global crisis originated in USA in 2008, which soon affected the entire world. As a result, the Turkish economy which has been on its way to recovery since the beginning of the 2000’s, once again headed toward a rapid fall. When we take a look at the quarterly figures of the manufacturing industry and the monthly production indices we tend to observe a serious shrinking of the economy. Furthermore, the decline in the capacity use has also been persistent. Construction sector, the most important of the sub-sectors, has almost come to a complete halt. By the same token, one cannot fail to notice the rapid contracting of the foreign trade in the last month of the same year.

While the state of affairs are as such in our country, it is not an easy task to predict the impacts of the slowing down of growth in addition to recession that are quickly spreading to other countries of the world. Countries that have already taken stock of the latest developments in the economy, and accordingly have been applying speedy measures will be on their way to recovery in a shorter time. By preparing rescue plans on short order, the US government has already started working toward lessening the impact of the crisis through providing financial support and tax reductions. We are also observing the positive results of the move aimed at rescuing the banks in several countries of EU. But, it is still gratifying to know that its impact on our country has been less severe than it already has in many other countries. This time, timely adoption of the measures needed for recovery is very crucial.

And we, as Nurol Holding, are doing our best by trying to not halt our production and investments. This also goes for the projects that we carry on in many countries of the world. We still keep doing our research for new investments. We can not ride over the crisis by putting a stop on investments. And we will also keep on doing business in new fields in the course of upcoming years.

Naturally, it is not an easy job to try to make predictions about the general economic crisis which the world is undergoing. For this reason, we tend to focus on the future by using short-term plans. At this time, the most important thing for us is to continue our investments both inside and outside the country without making any concessions on the quality of our work, and to ride over this difficult period with our employees. The providing of some incentives and tax reductions by the Government for helping the private sector is a positive development in the right direction. And immediate measures have to be adopted in order to keep unemployment, one of the most burning issues of Turkey, from getting worse.

Although, there is not an easy prescription to anticipate the future, the expectations are that toward of end of 2009, in the general sense, the markets will be back on track. Accordingly, it behooves all of us to view this situation we have been going through as a period that will come to pass and to ride over it without incurring many casualties.

We, as Nurol, have been doing our best in order to hold on to our staff. In the meantime, we reevaluate the inefficient and ineffective companies in our Group and take the necessary steps to deal with them. In order for companies to survive successfully for a long time, they should keep abreast of events and make a difference by constantly remaking themselves. And this is exactly what we have set as our objective, and accordingly, put together our plans for the new period.

As a result of our activities in 2008, Nurol Holding’s year-end total assets have reached TL 1,8 billion with a consolidated turnover of TL 389,5 billion (work in progress revenues).

With well over half a century of experience, NUROL Group of Companies, today, continues its investments not only in Turkey, but, in many parts of the world through over 30 entities, participations, and affiliates doing business in many sectors ranging from trade to defense industry, from construction to machinery manufacturing, and from tourism to finance.

With its deep-rooted corporate culture, experienced staff, and strong machine park, NUROL Construction has successfully realized several big investments by building infrastructure projects such as dams, tunnels, bridges, and roads, in addition to transport, industrial facilities, business and trade centers, hotel, luxury housing, building and satellite town projects in Turkey. The total of the reference projects by Nurol Construction, which made it to the World’s Biggest Global Contractors List, and the World’s Biggest International Contractors in 2008 published by ENR, has surpassed USD11 billions.

The construction of Ilısu Dam has been started by an International Consortium under the leadership of our NUROL Construction Company. When Ilısu Dam and the HEPP project have been completed, it will be the second largest dam in Turkey capable of generating 4 billions Kwhs of power. Furthermore, the Marmaray Istanbul Strait Immersed Tube Crossing Project carried out by a Turkish-Japanese joint-venture in which Nurol Construction is also a partner, is one of the largest of its kind projects in Turkey. By the same token, we have already completed 75% of the construction works at Ankara-Pozantı Highway, one of our projects that is in-progress.

NUROL Construction contiues its activities at the international platforms by expanding its accomplishments in construction business via foreign partnerships and representations. Among these, the Gulf countries play an important part.

Within the scope the projects that are in-progress in the Unite Arab Emirates, the total of housing units that have been built within the framework of satellite towns project with the prominent investors in the region acting as employer, has exceeded 500,000 sq.mts. This way, this project has joined our urban infrastructure and technological steel manufacturing projects.

On the other hand, sea causeways, and canals, infrastructure construction works covering various bridge and tunnel structures, and luxury hotels and hotel and residencs also happen to be among our projects in Abu Dhabi.

Our steel contracting works are being carried out currently at the steel manufacturing plant in Qatar --another region in the Gulf where works continue.

Our construction works in Northern Africa which started in Algeria, have expanded by also covering Libya. Within this scope of works, infrastructure projects such as dams, bridges, highways, in addition to institutional buildings happen to be among our works.

In Georgia, another country where activities of NUROL are highly visible, both contracting projects, and the Batumi Luxury Hotel Complex investment are in the process of being implemented.

Proud of being the first private sector defense industry entity in Turkey FNSS, in a joint-venture with BAE Systems, manufactures armored combat vehicles, in principal, and various types of vehicles and weapon systems. In adition to giving service to the Turkish Armed Forces, FNSS has become a world-wide known company creating an an export potential of nearly one billion dollars.

Turning out high quality products using up-to-date manufacturing technology, Nurol Machinery, in addtion to the production it has realized in the defense sector in the course of 30 years, it carries on R&D based product development works, and the designing and production of new products in the fields of defense, security and machine manufacturing. Production of compressors is one these endeavors.

Operating under the corporate roof of NUROL Machinery Industry, NUROL Steel, continues to operate successfully in steel bridges and structures, oil pipe-lines, and pumping stations, steel manufacturing of power plants and the assembly of electromechanical equipments, and various steel structure manufacturing and assembly while making a place for itself among the leading Turkish companies in the business with its 12,000-ton production capacity.

NUROL Technology, one of Nurol’s new investments, applies technologies with sophisticated materials at its fully-automated modern production facilities and offers these products in the Turkish and world markets. By doing this, it responds to needs of differenr industries such as defense industry, aviation, energy, medicine, automotive, textile, metallurgy and chemicals. Capitalizing on its strength in the R&D field, Nurol Technology has focused on nanotechnology and its applications in order to make a place for itself among the pioneering institutions operating in this field.

Established as an investment bank in the finance sector by NUROL Group of Companies in 1999, Nurol Bank has been continuing doing business in İstanbul, Ankara and Izmir while establishing a powerful structure through the synergy thus created.

Assuming an important mission in taking shape of the modern urbanizaton of Turkey, NUROL Real Estate Investment Partnership continues to manage a portfolio composed of facilites and ambitious investments and projects spread to different locations in Turkey such as Nurol Residence in Ankara, a pinnacle in the luxury housing market, and Oasis Shopping Center in Bodrum on the one hand, while it keeps working on new projects, on the other.

In the tourism sector, the Ankara Sheraton Hotel, an affiliate of Starwood Hotels & Resorts, and owned by Nurol Holding is included in the “luxury collection” category. Sheraton Ankara Hotel & Convention Center is priding itself on the international recognition it has acquired as a result of the “Europe’s Best Conference Hotel” and Turkey’s Best Conference Hotel” award it received.”

The 1,100-bed capacity resort village of NUROL Club Salima in Kemer, Antalya continues to provide peaceful and cordial atmosphere to its guests coming from all around the world with a difference in service and a magnificient natural make-up.

Business at Bosfor is as usual. It continues to provide tourism services through its “Class A Travel Agency” license. As for NUROL Insurance.. Through its experienced and efficient staff,.it provides services to its well-respected customers within the context of acting as agents.

Furthermore, turning out quality services in every field it operates, Nurol Group of Companies;

maintains Karum Management operating in Ankara and İstanbul, Botim, which successfully carries out the operation management at Bodrum Oasis Shopping, Culture and Entertainment Center, and Nurol Aviation, which continues to offer air taxi services at VIP standarts in and out of the country, under its corporate roof.

Aiming at assuming an effective role in meeting the increasing energy needs of the country NUROL Energy carries on its multi-faceted activities. Within this scope, works are underway by “Enova Energy”, a company set up to develop hydroelectrical projects, for the construction of Ceyhan HEPP Project within Osmaniye Provincial Borders.

NUROL, whose name has always been mentioned along with success and praise as a result of great projects on which it has signed off up till now, has persistently maintained a sense of institutional social responsibility since its establishment until these days. In addition to NUROL Education, Culture and Sports Foundation which has given as a gift to its people the schools, libraries and cultural centers it has built, while also continuing its support in many fields of the arts; Nurol Art Gallery offers video finesse to the art lovers by displaying how it cares about arts and the artist.

As NUROL Group of Companies which enjoys a well-respected status at the national and international platforms, we continue today, as we always have, to march on by the energy we get from our about twenty thousand or so employees and keep on creating added values by holding high our social and environmental responsibilities toward society.

On this occasion, I would like to thank our people, our partners and our employees, while I also wish them a good 2009.