the SAIPA Group is continuing its steps to become one of the top twenty automotive manufacturers in the world. In the year 2003, we have successfully increased our market share an unprecedented six market percentage pointS, from 32% to approximately 38%, while In regional markets, such as Bahrain and Syria, we are now recognized as a key market player. As far as sales, revenues and operating profit are concerned, the SAIPA Group once again surpassed the record results of the previous year. At the present time, we have the most attractive and up to date product line up in our history and we will vigorously continue our product ! offensive. We are now striving to be present in every important market segment, with leading edge products. Our brands are distinctively positioned and present the most powerful portfolio in the Iranian market. No other manufacturer offers such an attractive variety at comparable production volumes. The key to our success is the ability to meet the requirements of our customers. Demographics have been key to our strategy. With a market composition of 70% of the population under the age of thirty combined with economic growth in excess of 7%, SAIPA has successfully entered into a number of strategic alliances with global players so as to successfully develop and capitalize upon major market segments. These include: SAIPA is now the dominant player in the entry level segment of the market. The combination of unique demographics and economic growth has translated into the yearly entry of over 800,000 people into I the workforce. By successfully capitalizing on our alliance with Kia (Hyundai Group), SAIPA, for the first time in its history is now the dominant player in this segment. SAIPA continues to develop the expanding M2 and M3 sector working in joint cooperation with PSA- Citroen. In the more lucrative SUV and luxury sector, our bottom line has been buoyed by the extremely I successful launch of a comprehensive product portfolio of products from Nissan. Our market success would not be complete without a review of our recent in-roads in the commercial vehicle sector. The combination of topography (Iran's mountainous terrain makes rail transport unfeasible in many instances) and the implementation of a major fleet renovation scheme by the Iranian government has resulted in the emergence of the Iranian commercial vehicle sector as one of the largest markets in the world. Thus, the portfolio of products offered by SAIPA has led to market dominance in almost every market segment. Therefore, as with our passenger car strategy, a key element of our success has been to formulate and successfully execute strategic alliances with first tier manufacturers. These steps include: The targeting of the lower and mid-level section of the market with our company Zamyad. We are pleased to announce that Zamyad's portfolio will now be complemented with the launch of the IVECO Daily, a leading vehicle in its class globally, to be further complemented by other products from the IVECO portfolio. The successful development and expansion of our longstanding relationship with Volvo AB. Now the market leader for vehicles in its class, our ability to effectively capitalize upon this relationship has not only led to the ability to execute several major fleet sales, but also to successfully pentrate regional export markets. ConcomItantly, we have now successfully commenced the Integration of ; several key products from the sister company of Volvo, Renault V.I. As can be seen, we now offer virtually any customer a vehicle tailored to his or her requirements. However. with a demand factor of one car for every twenty five iranians, combined with the growing affluence of our . market, it is clear that the requirements of our customers will become even more varied. It is within this context that over the next three years we will be launchinq several new models in conjunction with our alliance partners. Furthermore, constant progress in terms of implementing our strategy is further leveraged through close I interdivisional cooperation and integration. Our sourcing and procurement company, Sazeh Gostar has successfully been able to execute group wide exchanges of technology, know-how and components, and has successfully dealt with several cross divisional projects resulting in a number of significant savings and efficiency enhancements. Our success can be witnessed by the tangible recognition that the stock market has provided to our achievements. SAIPA, now having the largest market capitalization of any company in the stock exchange, is reflective of the fact that investors not only appreciate the substantial strides that our company has made, but also to our potential. ncluding engines, gearboxes, axles and other parts.

SazehGostare company has established in july,1985 and started its formail activity in 1990 as the first company in engineering, and supplying automotive parts as well as the first supply chain management and organization of saipa group.The company started its operation by supplying the automotive parts for Nissan.Widening the range of its activities constantly ,Sazegostar has played an outstanding role in the development and progress of the the automotive-part producing industry of the country,and currently it covers more than 500 automotive-part producers in its supply network.