When we take a look at Turkey’s investment policies in the most recent period one can observe the fact that private sector investments have considerably come to the forefront. I expect that putting by the government the new reform programs in place, and carrying out the fine-tuning in the upcoming period will clear the way for the entrepreneurs. I also think that it is promising to see that Turkey’s heading in the direction of a general stability is not being interrupted by short-term ups and downs. This very fact will not only affect foreign investors, but all the institutions engaged in production-consumption and investment, as well while causing accelerated growth.

With population increase and industrial development, energy investments in different areas ranging from wind energy to nuclear power plants have become order of the day. In line with the infrastructure needs we anticipate that in the upcoming period planning phase for the building of new high-ways willget started while putting a much-needed emphasis on the construction of railways.

Naturally, the state of the world economy affects Turkish markets in the way it does others. There are concerns about a big scale slow down in economic growth. More important is not being able to know how long this downward cycle will last. Feeling the effects of thisprevailing situation in the world markets was something expected. It is my anticipation thatglobal problems will continue to persist in 2008 as well, and that this, again, willhave repersussions in our country.

Ups and downs in the markets are long expected phenomena so long as they do not have severe implications. I am delighted to see that Turkey does not get affected by crises as it did in the past. This is the result of its sound macroeconomicbase. Foreign investors’ interests in Turkey is still riding high due to their feeling of security and it shows how much importance is being attached to the country’s potential. We ought to keep faith about our positive sentiments towards Turkey’s future.

While we take our fields of business into consideration we should also keep a close eye on the economic development strategies and their application plans of our country. By determining these objectives real well, we can altogether establish the environment transforming our country’s capability into business and investment potentials. In order to sustain their existence in the longer term, it is mandatory for companies to make a difference by renewing themselves and to keep pace with the era.

With 1.3 billion YTL in total assets, Nurol Holding Company has reached 727 million YTL of consolidated turnover by 2007 year-end.

In its 42nd year of operation, our Group, today, successfully continues its activities in several sectors with construction in the lead through 21 companies, 30 affiliated companies and partnerships in addition to representation offices and business partnerships abroad.

NUROL Holding Company has continued its investments in construction, energy and technology sectors with the first in the lead, in 2007. NUROL Technology is the last company set up for this purpose. We pay utmost care for sustaining and developing our fundamental fields of activity. In order to increase our Group’s ability in the international competitive environment we conduct research around different regions of the world and get structured when necessary.

We are immensely proud of the fact that our NUROL Construction Company has become a company employing people from 13 different countries and capable of acting globally as a result of its almost half a century of experience. By virtue of its project portfolio references nearing USD10 billions level,Nurol Construction has signed off on important projects in almost every branch of its sector. As of the end of 2007, NUROL Construction ranked both in World’s Largest Global Contractors and World’s Largest International Contractors lists published by “Engineering News Record” (ENR.com), a part of McGraw Hill in the United States.

Our works regarding Ilısu Dam and HEPP Project, the second largest dam in Turkey with a 45 million cubic meters of filling,presently carried out by an international consortium under the leadership of NUROL Construction have started. As a requirement for the leadership vision in the Turkish Contracting Sector, Nurol Construction, for the purpose of signing off on more comprehensive successes in the upcoming period, contiues its works in full-gear.

In 2007, in addition to our Works abroad, important milestones have been achieved in our projects in Turkey. MARMARAY Bosporous Tube Crossing Project implemented by a Turkish-Japanese Joint-Venture, and Bahçeşehir MN Housing Project, an investment realized by 50% partnership of NUROL Construction are presently underway. Our Karadeniz Coastal Highway, Bolaman-Perşembe Divided Road Project has been completed while the physical realization rate of Kemerhisar-Eminlik Section of Ankara-Pozantı Highway, the Central Anatolian section of TEM is at 60 % level.

Contract negotiations in regard to new projects in the United Arab Emirates (UAE) which continues to occupy the focal point of our activities abroad are underway. It is our target in the very short term for our portfolio hovering around two billions of US dollars at the present time to reach higher levels. Al Reem Island Sea Bridge Crossing Project, our first contract in Abu Dhabi andNakheel International City Housing and Commercial Buildings, Package 12 and Package 9 Houses, our first contracts in Dubai have been handed over upon completion. Khalidya Palace Rotana Hotel and Housings, Shams Abu Dhabi Bridge and Channel Structures, and IP44 and Sea Palace Intersections Bridge and Tunnel Structures, Jumeirah Village Northern Section Infrastructure Works projects are also continuing on schedule.

In Libya, our another venue of activity which gained prominence recently, Coastal Road Algarabolli-Misuratah Section Project andAl Fateh University, Schools of Economics and Law Buildings Project have been contracted. In Algeria where our activities are also underway, our Douera Dam Project is continuing. In Georgia where our business development worksare being carried out on an extensive scale, the construction of a Luxury Hotel Complex Project in Batumi in addition to Police Center Complex Project in Tbilisi are being carried out in the form of contracting services as a NUROL Group investment. Within the scope of expanding our works abroad, the Gulf Countries in particular, our Works regarding settingup and registering a company in the Kingdom of Saudi Arabia has reached its final stage while our Works in Qatar are continuing.

In Bulgaria which became a full member of the European Union in 2007, setting up a company has been completed and important projects are being pursued.

NUROL Machinery continues to sell abroad and in the country its Riot Control Vehicles (TOMA) which it developed by a modern manufacturing technology. The prototype production of ballistic and mine protected 6x6 Tire Armored Personnel Carrier Vehicle which is designed completely by our Company has been successfully realized.

NUROL Steel, in addition to its projects in Turkey, has completed to a large degree the Qatar Education Foundation Education City, Al Shaqab Academy Steel Construction Works,one of the most attractive buildings in Qatar. As for NZ Steel, our foreign partnership, carries out projects where SIN profils are used. These Profiles are products of advanced technology products by the Turkish Steel Sector featuring widespread economical solutions, capable of high bearing capacity andautomatically manufacturable serially at high speed.

FNSS transfers modern Technologies to Turkey by manufacturing armored combat vehicles and contributes to establishing contemporary technology in the Turkish Armed Forces. FNSS has earned a success above its undetaking bysurpassing the 80% local contribution share. Through the works it has carried out, FNSS has become well-known around the World market in a short time and has played a major role in creating an export potential of hundreds of millions of dollars -- something very important for our country.

While continuing its activities in the financial sector through its companies NurolBank and Nurol Securities, Nurol forms a reliable and strong structure based on the synergy createdby them.

TURSER (Ankara Sheraton), BOSFOR ve CLUB SALIMA,our companies operating in the tourism sector, are enjoying the pride of offering the customer the best through our investments regularly renewed within the framework of our understanding of quality and priviledged service. At the “World Travel Award”, considered the oscars of the world travel industry, Sheraton Ankara Hotel & Convention Center has been selected “Europe’s Best Conference Hotel” and “Turkey’s Best Conference Hotel”.

OASİS Shopping, Culture and Entertainment Center, the only shopping center and venue in Bodrum is being managed by BOTIM CO. with an understanding of advanced management.

NUROL Energy continues its activities in the sector in a manner to occupy a place among independent energy producers.Within the structure of our ENOVA Energy Production company set up by us to develop Hydroelectric energy projects, the construction works of 60 MW capacity Ceyhan HEEP are underway..

Our decisions affect not only our company but our country and our employees, as well. With this in mind, decision making processes regarding taking new steps are being carefully handled by us and furthermore with this understanding of responsibility we make every effort to make the best decision. That is because it is more important to grow healthily and provide benefits in the longer term than to grow fast.

We are obligated to assess the ways for reaching our targets which enable us to increase our existing success not only in our country but at the international platforms as well, and furthermore to becomea stronger Group. With the solidarity based on love and respect established by our employees I think that we have created a culturewhere we provide our employees with the ability to act along universal values.

I am deeply grateful to all of our employees for the invaluable contribution they made by working hard to bring us to where we are today.