::A E C::News::

		President & CEO AEC Ownership AEC is Restructuring AEC is now certified to ISO 9001:2000 Aerospace Quality Management System AS9100A:2001 New WLL Repair Contract ADDAD for NADEC New 5ESS Cabinet Repair Contract Launch of New product: Sequence of events Recorder (SER) SER for Saudi Electric Company (SEC-West) ADSL (Asymmetric Digital Subscriber Line) Contract: New Passport Printer Contract Renewal of the ALQ 135 Contract AMR System New MADAR Contract
		President & CEO The AEC Board of Directors selected Dr. Ghassan Al Shibl as the new President and CEO of AEC, effective 1 February 2003. Dr. Al Shibl earned a Ph.D. in Engineering Management from George Washington University. He has been with AEC for the last 13 years holding various Key management positions from VP Operations to EVP, and then Chief Operating Officer. The last position he had was Sr. VP & General Manager for the Telecom Business Unit. With his experience in this business and his knowledge about the market in the Kingdom, we are confident that AEC will continue to prosper keeping the same values that have been so successful in the past.

		AEC is Restructuring:
		AEC has successfully completed a major restructuring exercise with the main objective to fully exploit the potential in its existing telecom and defense markets by expanding its market share and setting aggressive targets for revenues and profits from each sector. In order to close the market share gaps, AEC has reorganized itself around its customers, and adopted a ‘partnership’ approach to OEMs while implementing effective KAM (Key Account Management) processes that create the right tools and incentives to capture more potential business from current customers.
		Current organization structure includes the following customer-facing business units, each focusing on a specific market sector. The business units are:
		(a) The Telecom Business Units
		(b) The Military Business Unit
		(c) The Industrial Business Unit
		(d) Corporate Development Unit
		The Telecom Business Units and the Military Business Units serve current AEC markets with focus on key customers and services, whilst the Industrial Business Unit is tasked with promoting proprietary products and systems developed by the company's strong R&D team; at the same time capturing business opportunities within the industrial electronics sectors. In addition, AEC has launched a Corporate Development Unit, whose main objective is to run top level strategic direction setting process and execute the agreed company strategies through pursuing new business opportunities, acquisitions and partnerships, and to develop an overall corporate strategy based on AEC’s competitive environment, and company performance capabilities.


		AEC Ownership::
		Boeing Industrial Technology Group (BITG) has sold its 50% shares in AEC to Overhaul and Maintenance Co. Ltd. (OMC). OMC is a Saudi owned company based in Riyadh. The new change in ownership should facilitate rapid growth of AEC.

		AEC is now certified to ISO 9001:2000
		As part of our continuous improvement efforts, Since last year we have upgraded our quality system to meet ISO 9001:2000, the latest and very demanding international quality system requirement. Early this year we received the certification. ISO 9001:2000 is built on very important business elements that, if followed correctly, guarantees customer satisfaction, increased productivity, lower cost management, high quality product and service, increased profitability, effective processes, better and improved management tools and much more. Those business elements are Customer Focus, Leadership, Involvement of employees, Process Approach, Systems Approach to Management, Continual Improvement, Factual Approach to Decision Making, and Mutually Beneficial Supplier Relationship.

		Aerospace Quality Management System AS9100A:2001:
		For the first time in the Arab World and the Middle East, AEC has been certified to the Aerospace Quality Management System AS9100A:2001. According to official remark from Lloyd's Registrar Quality Assurance, the certifiers for this prestigious award. "By obtaining this standard, AEC has placed the Kingdom of Saudi Arabia among those few countries in the world that have companies already certified to this standard”.


		New WLL Repair Contract:
		AEC recently has won a new contract from STC to repair and change PCB’s for the Wireless Local Loop (WLL) phones.


		ADDAD for NADEC:
		AEC has delivered Addad-2 for NADEC Dairy Company . AEC Addad-2 was their first choice among other systems from many competitors. Addad-2 will be installed to help NADEC to control their power consumption which is very essential for their day to day operations.


		New 5ESS Cabinet Repair Contract:
		AEC has recently won a contract from STC to repair and replace 5ESS components. This indicate STC’s confidence on AEC’s technical capabilities and high performance in maintaining these systems.


		Launch of New product:
		Sequence of events Recorder (SER) is an In-house developed project this system is fully designed by our R & D engineers to accommodate the needs of our clients in the field of factory automation and power generation plants. This system is based on using state-of-the-art software and Industrial Electronics technologies.


		SER for Saudi Electric Company (SEC-West):
		AEC is currently implementing the Sequence Events Recorder (SER) and Load Calculator System for (SEC-West) in Jeddah. This system was selected as the best system which suits SEC’s needs and requirements. SEC-West has selected AEC among many vendors because of AEC’s ability to provide strong local support and maintenance for this particular system.


		ADSL (Asymmetric Digital Subscriber Line) Contract:
		AEC has recently been awarded the ADSL (Asymmetric Digital Subscriber Line) program from Alcatel. The ADSL program (phase 1) comprises 15,000 lines and covers over 28 Saudi Telecom exchange sites around the Kingdom. AEC’s prime role will be to carry out comprehensive integration and test functions on 28 ADSL racks within AEC premises. In addition, AEC will be actively involved in the project implementation stage by carrying out site installation, commissioning and network configuration in most exchange sites. Apart from other services that can be applied, ADSL provides broadband access to the Internet service via the existing ATM network. Major expansion of this technology is expected due to the advantages ADSL has to offer.


		New Passport Printer Contract:
		As a result of the company’s success in supplying and maintaining passport printers for the MOI-National Information Center, AEC has recently won another contract to supply new passport printers for MOI.


		Renewal of the ALQ 135 Contract:
		AEC has been awarded a sole source contract from RSAF for a new ALQ 135 repair contract. This is the result of AEC’s excellent performance, lower cost and short turnaround time in repairing this system for the past five years.


		AMR System:
		Currently AEC is developing an Automatic Meter Reading system for SEC. This special system will utilize AEC Addad. It will also enable SEC to read and monitor energy consumption for a wide range of industrial customers.


		New MADAR Contract:
		AEC has won a contract from Alolibi Transport Est. to install the MADAR system on some of their fleet. The contract represents the first stage and the second stage will start soon.