Korea Aerospace Industries, LTD. (hereinafter referred as KAI), has been established in October 1999 with the consolidation of three(3) major aerospace companies in Korea under the national concurrence for fostering the aerospace infrastructure in Korea as a major defense sector in our industries. With the successful development of KT-1 basic trainer and T-50 light attack / advanced supersonic jet trainer, KAI is able to raise Korea to be ranked as the world¡¯s 12th supersonic aircraft developed country, and keep leading the national aerospace industries. KAI announced 2005 as the commencing year for ¡°challenging and innovation¡± for securing international competitiveness under the flag of ¡°Single KAI, Global KAI¡±, and has driven intensive business restructuring for last couple of years. In consequence of assiduous efforts, we have completed the ¡®One-site¡¯ formation in Sacheon by merging the separated development centers and factories in Seoul, Daejeon, Changwon and Sacheon, and also integrated the corporate culture for better management efficiency and company identity. By continuous innovative exertion, KAI introduced optimized 6-sigma projects to entire company organizations and activities. Further, we improved on longstanding financial difficulties drastically and turned out to be fine financial structured company for competing with global aerospace market. Especially, last year, KAI made a contract with Turkey for 55 of KT-1 basic trainer through severe competition with world advanced aerospace companies, and established concrete fundamentals for competing with world leading aircraft manufacturers and exporters. To achieve our vision ¡°New ¡®10 ¡¯10¡± which is jumping into world ten(10) leading advanced aerospace companies¡¯ group by 2010, and complying with Korea Government vision for joining ¡°G8 ? ranking over world eight(8) aerospace companies¡± by 2020, all employees and management of KAI will devote ourselves to create successful results for every single company project by unyielding and frontier spirit under this year¡¯s slogan of ¡®Indefatigable Cutting and Polishing¡¯. For that, I am focusing on strengthening internal management for company profitability and acquiring on time contracts for domestic defense projects such as F/A-50 Attack project and etc., so as to ensure future growth power. And also strive to export the trainers, KT-1 and T-50 so that KAI can drive Korean aerospace industries forward world defense and commercial export markets. As a leading aircraft system integrator and aerospace company in Korea, all the members in KAI has to take unlimited responsibilities with pride and enthusiasm for setting up a new milestone for the future. In view of this fact, I am sincerely pledging that KAI is working its best without hesitation toward the national and company vision, and establishing world top ranking company deserves to get confidence and support from regional society, stockholders and public. In this year, we cordially invite your continuous encouragement and assistance.