Dear Staff, Shareholders and Partners,

When compared to the same times a year ago, our business continues in a very different environment these days. The world financial crisis that arose in the last quarter of 2008 turned into an economical crisis and there has been a serious shrinkage in the main economies of the world. This crisis has affected our country also and this was further confirmed by the negative macro economic indicators in the first quarter of the year and unfortunately the worst affected sector has been the automotive industry. What’s worse still is that, as satisfactory economical precautions were not taken in time in our country, the size and effects of the crisis are much higher than expected. Consequently, even if we did see an acceleration in business in the last quarter of 2008 when compared to the previous year, due to the latest developments, we need to re-evaluate our business fields and strategies for 2009 and beyond. However, at the same time, we are proud of the technological value, productivity, employment, exports and R&D investments that we created in 2008.

In the new year, our companies made detailed works in conformance with the Holding Strategic Directive to prepare realistic budgets and, bearing in mind the uncertain environment, define yearly targets for all the companies. This year our targets, also named the Development Management System, are circulated systematically to every member of staff, this is another step forward with regards target awareness. In conformance with our lean deployment projects we aim to be more systematic regarding follow-up and circulation of our targets. We, at the Coskunoz Holding, take care to plan the working systems of all our companies and functions to correspond with our strategic targets and values. Apart from our company strategic targets for 2009, our main theme, which is valid for all our companies and functions, is important for planning our working systems. As we have seen from latest experiences, it is critical for companies to be financially strong. For this reason the Holding strategies and company indicators are particularly important. At the same time, our priorities are to economise, improve and work on creating new resources as these are critical success factors for gaining financial strength when working with such low capacity and margins. This is an opportunity for us to concentrate on areas in which previously, due to our workload, we were unable to prioritize. For example; to increase our employees’ skills, strengthen relationships with our customers, find new customers and ways to create resources and profit, fill our capacity with more profitable business that will increase our turnover without investments and concentrate on doing all our work to our best abilities....

The second, more important part of our theme is to make good use of our own skills and competencies. During these times, our human resources are a critical success factor. We should take more than usual notice of what our employees have to say, ask their opinions and give incentives for them to contribute ideas and suggestions. I believe that the knowledge, skills and experience of the Coşkunöz Holding employees is above average, not only in this sector but countrywide. Furthermore, for more than 50 years we have been a sector leader and the company culture, know-how and internalized core competencies that have accumulated over these years is astounding. For this reason, our intellectual assets should be roused as now is the right time and environment to use these for further development. Yet again it is only possible to sustain constant competitiveness through our main Holding strategy - process and product R&D - if we use our human resources correctly.

These days every firm is trying to sustain production potential, reduce job losses and keep staff moral high. In order to reduce the devastating effects of the crisis, timely precautions have been taken to keep our companies strong during this challenging strife and these will give us an advantage over our competitors. One of our critical targets for this period is to share with all the Holding companies any works that can add value to the system and create synergy. When we emerge from the crisis we need to still be standing strong, with high morale. Maybe during this challenging period our business will shrink but the future will be even brighter. I believe in this completely. With this belief, ı thank those of you who give us strength, firstly our employees, followed by our suppliers and all our partners and wish all the Coşkunöz Family a healthy, successful year.