SEMTEC

The Company’s target market segments in the scope of clients groups which form them can be described as following categories:

1. Public organizations and governmental bodies and agencies as the sources of government contracts for automation of managerial accounting in the scope of the country, regions, agencies, for IT outsourcing (system engineering and software support and maintenance, etc.); International Financial Institutions and Non-Government Organisations (NGOs) seeking for contractors for their regional projects implementation in the area of IT consulting, automation and business consulting in public sector;

2. Foreign customers – foreign companies seeking for contractors on automation, software development, system integration, IT consulting, large foreign consulting companies seeking for partners / subconsultants for large scale automation and consulting projects;

3. Large private and public enterprises (large enough to introduce the comprehensive automation in business-processes), banks, customers for IT and software development outsourcing, etc.;

4. Small and medium enterprises, NGOs (local customers for simple automation solutions and IT outsourcing; market segment for sales of standard ‘packaged’ software made either by Company or by paired vendors);

5. Household users (market segment for sales of standard ‘packaged’ software made either by Company or by paired vendors);

The table below illustrates the forecasted (medium term) dynamic of market segments ratio allocation in the Company’s annual turnover:

Even simple analysis of these figures shows the anticipated changes in Company’s poilicies and market priorities allocation in medium term period. The government contracts percentage will go down as soon as most of government agencies will get automated by 2012. Incomes from IT outsourcing and post-project maintenance in this sector will be stable enough to provide 15-20 percents share in the future.

Growing domestic and foreign business will generate the high level of demand on IT developments, services and consulting.

Small and medium enterprises as well as household users will provide the stable level of Company’s income percentage with income growing in rather absolute figures.