2004 has not been a bright year for Oil and Gas industry. The continuing fights in Iraq, and increasing oil prices obviously affect the industry in a negative way. However, since last year Ergil Group had opportunities to participate in many local and domestic projects. Ergil Group built two oil storage terminals for major Turkish petroleum companies, Alpet and Energy Petrol, and involved in rehabilitation project for Delta Petrol, and Opet. Also, awarded for Opet's new project that will take place in Marmara Ereglisi,Tekirdag/Turkey. Meanwhile, Ergil Makina supplied oil and gas equipment for a project that took place in Iraq. On the other hand, Ergil Corrosion Control is still working on Baku-Tibilisi- Ceyhan pipeline, one of the most complicated and biggest cathodic protection project around the world. Thanks to its valuable engineers and technicians, Ergil Corrosion Control undoubtly became the leader name in cathodic protection sector in Turkey.

We aim to expand our marketing power through domestic segments, and in this regard our representatives help us a lot and strengthen our competitive power in their territories. Especially, we would like to thank our Pakistani representative Premium Energy, to Abrar Khan, for their efforts, and faith in our in our cooperation. .

October 4, 2004