UNIT GROUP

While main focus is on development and execution of generation projects, we believe that trade and distribution are integral parts of the energy game. The Group intents to realize the following targets in parallel to the related developments in the Turkish Electricity Market:

Acquisition of some selected Distribution Regions to be privatized by the Privatization Administration of Turkey,
Development of long term PPAs for the Generation Investments of the Group
Development of a Cross-Border Trade Portfolio in ECSEE Region and also with Eastern Neighbors.
Development of a Trade Portfolio in Turkish Electricity Market

Electricity Trading Project: Armenia

Starting in 2007, Unit has developed a project for a cross border electricity trade business with Armenia. According to the business plan, Unit will import electricity produced in Armenia into the Turkish electricity market.

Unit has signed a Memorandum of Understanding with the Ministry of Energy of the Republic of Armenia, where the Ministry states that it has the intention to utilize the power production capacity within the electricity National Grid of the Republic of Armenia to realize a cross-border trade opportunity with Turkey. Unit also signed a framework agreement with “High Voltage Electric Networks, CSJC”, appointed by the Ministry of Energy of the Republic of Armenia.

Electricity trade between Turkey and Armenia is expected to start in Q2 009, when all the necessary permits and the technical arrangements between Turkey and Armenia are finalized.