1. Continue to implement our focused growth strategy and promote increased exports. Since the appointment of our new management in 2006, we have created and started to implement a focused, three-layered growth strategy in developing our Human Pharmaceuticals business line:

Growth in the Turkish market. Since the establishment of Deva almost 50 years ago, we have played a significant role in the development of the Turkish pharmaceutical market and we intend to continue to reinforce our commitment to Turkey. We seek to reach the leading position in the Turkish pharmaceutical market through, among other things, accelerating the introduction of new products and increasing the number of sales representatives to support this process.

Export to selected emerging markets. We believe that there is growing demand for our products, in particular antibiotics, in selected emerging markets. Currently, we have a representation office in Georgia and expect to commence export operations in Russia and Ukraine as well as selected countries in North Africa, including Algeria and Egypt, during 2007. In the near future, we also plan to enter selected markets in the Middle East and certain parts of Asia.

Export to fully regulated markets. In addition to Turkey and selected emerging markets, we also see growth opportunities in Europe and the United States. We expect to commence the export of selected products in connection with the start of the operations of our new plant in Çerkezköy in December 2007. We expect the new plant to receive the necessary approvals and certifications required for export operations to these fully regulated markets. With our dedicated and experienced management team and increased production capacity, we believe we will be able to use our price advantage to expand the export business

2. Capitalise on growing demand for our products. According to [IMS], the Turkish pharmaceutical sector is expected to experience significant growth during the next four to five years driven by, among other things, improved macroeconomic environment, demographic factors, such as Turkey having the third largest population in Europe and increasing life expectancy, low level of pharmaceutical consumption per capita as compared to consumption in Western Europe (28 per cent.) and reforms in the social security system. For example, we aim to capitalise on the growing demand for generic products through the continuing development of our product offering and raising brand awareness among our customers. In order to meet the growing demand, we also plan to upgrade our production equipment and increase our production capacity by approximately 250% during the next two years.

3. Pursue selective acquisition and investment opportunities. We acquired our majority holding in Deva in 2006 and intend to continue to identify acquisition and investment opportunities both for our existing and potential new pharmaceutical businesses. The Turkish pharmaceuticals market is currently scattered with a number of small manufacturers and we believe that the market will undergo consolidation during the coming years. We plan to take an active role in such consolidation while applying a disciplined approach to investment opportunities. In respect of new pharmaceutical businesses, we will seek to obtain controlling interests in pharmaceutical companies in markets which offer potential for high growth and where we believe we can leverage our experience in other similar markets such as Turkey. We will also focus on markets where we believe that we can reach a leading position by leveraging our access to capital and expertise in financing, developing and operating pharmaceutical businesses.

4. Diversify product and service portfolio. While the pharmaceutical sector of Turkey is characterised by a strong prevalence of antibiotics, the demand for therapeutic categories such as cardiovascular and central nervous system drugs is expected to grow at above market growth rates. We aim to capitalise on this trend by developing and acquiring new “niche” products. We plan, for example, to introduce a new line of cardiovascular products and diversify our product portfolio with other selected product lines, including central nervous system drugs, biogeneric products and oncology products as well as to complete our existing dossier of filed pipeline products with the Ministry of Health. In addition to our product portfolio, we also intend to extend our service offering by commencing contract manufacturing when we start the operations of our new production campus in Çerkezköy, expected to be fully operational in December 2007. We believe that introducing these new products and services will be a key component in our growth strategy.

5. Further improve our core competencies. We believe that our current strong position in the Turkish pharmaceutical market is based on our portfolio of high-quality products, strong sales and distribution networks and good relationship with local doctors and pharmacies. We intend to continue to develop and improve these core competencies and further strengthen our position as a preferred provider of pharmaceutical products in the market. We also believe that these core competencies will support our growth strategy and expansion outside of Turkey.

6. Continue to develop manufacturing facilities and internal research and development function. We currently operate eight production units in five production campuses in Turkey and are constructing a new modern production facility at Çerkezköy. While continuing to develop some of our existing facilities, we expect the new facility at Çerkezköy to be a key factor in the implementation of our growth strategy through its significant production capacity and the Food and Drug Administration, or FDA, in the United States and European Medicines Agency, or EMEA, approvals we expect to seek for the new facility. These approvals, if received, will allow us to enter selected fully regulated markets in Europe and the United States. In order to support this expansion, we will also increase the number of employees at our research and development department with a view of creating new products and proprietary technologies to be initially used at our own facilities and ultimately to be licensed to third parties, and thereby diversify our product and service offering.

7. Reduce cost base and streamline corporate structure. Currently, manufacturing costs for the products sold represent approximately 75% of our total costs, with costs relating to the manufacturing and procurement of APIs and other raw materials accounting for approximately 65% of the total manufacturing costs. While we believe that our procurement department has been successful in managing our raw material costs, we believe that we can further reduce our costs by sourcing more from low cost countries such as China and India as well as through developing our own production and introducing modern production methods, especially at our new plant at Çerkezköy, which is currently under construction. We also seek to streamline our corporate structure in Turkey by integrating our production units, eliminating cross-ownerships between Deva and its subsidiaries and by exiting certain of our non-core businesses during the next three years. We expect that these measures, together with rigorous control of operating expenses and the relocation of some of our major production facilities to an integrated campus, will help us to achieve additional cost cuts and increase the synergies between our operating units.