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Javed Saifullah Khan Chairman

SAIF GROUP has steadily moved along the path of growth over the past three decades. This achievement reflects the individual contribution of all our employees. Their commitment and dedication to the Group has been pivotal to the success of the organization. Our goal is maintaining a leadership position for the Group in each of our operating sectors.

Having become used to a protected business environment, Pakistani business and industry is now exposed to the challenges of a substantially free market economy. The ongoing process of liberalization will affect most companies: the size and the scope of our economy require that we integrate into the global mainstream.

We are focusing on expanding our businesses internationally. This will demand that our products and services are globally competitive and that our enterprises operate to international standards in terms of quality and customer service. This is an important new phase in our growth plans and I trust we will all fully commit ourselves to achieving success in establishing a robust international presence for the Group.

Over the years, we have established a presence in areas where Pakistan has inherent strengths in the global context. Group Companies in telecommunications, textiles, real estate development, and more recently in energy and gas exploration have some of the best brand names in Pakistan supported by complementary distribution networks.

The demonstrated ability to effectively manage such a diverse business, using professional management and financial acumen has resulted in the Group enjoying a sterling reputation in the market place.

In the years ahead, and as the process of liberalisation and regulatory reforms continues, there will be many opportunities for international partnerships: It is these partnerships with combined skills and strengths that will be at the heart of our strategy for the future.

We should all feel proud of our achievements in years past, but we should not underestimate the challenges ahead. We will continue to be extremely forceful and proactive in the market in order to uphold our commercial superiority. I feel confident that the talent, dedication and high level of commitment within the Group will enable us to scale new heights and retain our leadership position in the coming years.

In every project our guiding principles will always be those for which the Group is known: fair and ethical dealings, trust and integrity.

SPL

SEL

STM

SAlFTExnLE MILLS

STL

KTM

KoRAT TIOmU: MILU

SAIF POWER LIMITED

SAIF ENERGY LIMITED

SAIF TELECOM LIMITED

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MTC

MEDITDRANEAIII 'TEImLE COMPANY (S.A.E)

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GEOUPToday

SAIF GROUP is one of the leading industrial and services conglomerates in Pakistan. Our primary operations encompass: telecommunication services and products, textiles manufacturing, oil and gas exploration and associated power generation services, real estate development, information technology and software development and environmental management.

The Group is unique in its emphasis on the forging of international strategic alliances with reliable partners. A commitment to innovate, to provide premium quality products and a commitment to actively contribute to Pakistan's economic growth has resulted in a leadership position for the Group in each of its operating sectors.

We have a durable and successful history of forging alliances with world-renowned partners. Our Group has worked with British Telecom, Consolidated Contractors International Company (SAL), Etisalat (UAE), Flag Telecom, Fusion Telecom Inc, Iridium Satellite LLC (USA), Itochu Corporation, Motorola, Tyco Electronics, Nichimen Corporation, Olivetti, Orascom Telecom (Egypt), and Siemens amongst others. All our partners are leaders in their respective sectors.

All these partnerships have flourished, and our foreign partners' appreciation of SAIF GROUP's technical and managerial skills and local expertise has grown with the passage of time. SAIF GROUP has always sought to be driven by its core values of integrity and customer satisfaction. The Group's progress is based on its corporate objective to be ahead in everything it does. A heritage of investing back in society evokes trust amongst consumers, share holders, employees and the communities where it operates.

The financial strength of the Group has enabled it to create an effective presence in diverse sectors of the economy. The Group has continuously invested in its existing operations and has developed new business areas of interest.

What started out as a small family business has now evolved into an enterprise of over 5000 employees, passing on its core values from generation to generation for over 80 years. These values continue to underpin the Group's growth and businesses today.

, , SAIF GROUP sees itself emerging as

the leading business group in the region.

We see ourselves as an icon of success, of

Core Values

sound partnerships and of the highest

professional standards. With a mission to

• Excellence - we strive to achieve the highest standards in the quality of the goods and services we provide.

constantly innovate in a diverse range of

• Integrity - we insist on conducting our business fairly, with honesty, and transparency and without fear of public scrutiny.

business areas, we strive to provide

• Unity - we work cohesively with our colleagues across the Group and with our customers and partners around the world, building firm relationships based on tolerance, understanding and mutual cooperation.

unique products and services, of the

highest quality while bringing robust

value to our shareholders. The Group is

• The Group counts as one of its core strengths the support and involvement ofthe trusted Saifullah family.

committed to actively contributing to

• As the largest shareholder, the Saifullah family plays a very active role in our organization and is the driving force behind our expansion and success. The family members, with exemplary educational backgrounds and rich experience of Pakistan's business environment bring the strategic vision vital for the prosperity of our companies.

Pakistan's economic and human

development growth, while maintaining

a leadership position in each of our

operating sectors. , ,

A Passion for Quality

With an 80 year heritage of quality and innovation, SAIF GROUP aims to set class leading standards in all of its products and services.

SAIF GROUP operates in various niches of the luxury sector where quality is an integral part of our product appeal, a vision we strive toward and a philosophy that is part of our corporate culture.

Our customers value consistent, predictable business operations that deliver world-class levels of quality. This means that uniform standardised practices have to be followed at every stage of the production process.

In order to ensure such uniformity, the involvement of all employees is vital for a successful quality approach. At SAIF GROUP we believe that people create results, and quality is the responsibility of every employee.

SAIF GROUP believes that in the globally competitive marketplace pleasing our customers by offering something far better than today's best is a necessity. To this end the requirement is not just a defect free product, but one that is also dazzling. Our customers expect performance, reliability, competitive prices, on-time delivery, service, clear and correct transaction processing and more. In every attribute that influences customer perception, just being good is not enough. The goal is to be impeccable.

Our Proficiency in Excellence

At SAIF GROUP we have a legacy of successful marketing of technologically advanced premium products. In 1994 when Mobilink was established, it was the first cellular service provider in Pakistan to operate on a complete digital GSM platform.

Today it is the market leader in terms of growth in addition to having the largest subscriber base in the country. The sales and distribution network covers 750 cities and has over 300 franchise outlets across Pakistan.

The most prescient infrastructure project in Pakistan is currently under development through our subsidiary TransWorld Associates (TWA).

TWA is installing and will operate a 1300 km undersea Fiber Optic Cable System between Pakistan, Oman and the United Arab Emirates. This cable system (TWA 1) is designed to provide the fastest Broad Band link to Pakistan, with an initial data transfer rate of 20 Gigabits per second and the capability to be enhanced up to 1.28 Terabits per second.

SAIF GROUP understands the relationship between premium lifestyle products and consumer expectations.

Global Utopia Developers Limited is a specialist in the development

of high-end, gated residential communities. SAIF GROUP has in-house expertise of land acquisition, construction, urban infrastructure and golf course development as well as financing arrangements for sale of properties.

Today Global Utopia is developing a US$ 45 million project spread over 700 acres on the outskirts of Islamabad, with luxury villas, a commercial centre, a world class 18 hole golf course and associated facilities. The concept is unique and the project is the first in Pakistan to attract foreign equity investment.

Our commitment to textiles has flourished in addition to the Group's vigorous growth in other sectors. At our flagship enterprise SAIF Textiles, the premium quality ensures a ready export market for its textile products, which are coveted in the most discerning markets of the developed world. We process the finest Egyptian and US raw material for Italian luxury brands, and work continuously with our customers and machinery suppliers to develop new products and processes.

SAIF Textiles is one of the largest manufacturers in Pakistan authorized to use the Swiss "Com 4" (Rieter Machine Works) label, a global indicator of excellence in quality. In addition we are ISO 9000 certified, while the certifications for ISO 14001 and SA 8000 are at an advanced stage.

SAIF GlWLzy if companies has its roots in the, early 18()()s in Bnt£Sh India's North West rroniier: The, Group has more than 8() years axperiance if industry and manujactun'Yl{J, havi'Yl{J set up its first unde;rt£lJd'Yl{J, a 'D£esd YOl'VeredYOl'Verylant in 18Z 7.

The, founder if SAIF GlWLzy, Khan Faizullah Khan

/ / " __ J( _ /

was a p~r en: mala's enew sector. HIS son;

the, ep011(jmous Khan saifullah Khan,

I(J_L_J L_ /// __ JJr .(.{:{nA

conso~ tne Group's activities a;Y!.&{; tUversy UAN

into food proce.ssi'Yl{J with 10<- &: compa11(J, the, area's premier canners and preservers.

with Khansaiju1lah Khan's death at tJu, aee if +8 in 186+, hiS widow the, 38-year-old tculsum. saiju1lah Khan inJu,nted th» mantle. if lea.di'Yl{J

the, Group. Her ifforts as a mother; a

b / __ J U / / / L _

ustnecSswoman a;Y!.&{; as a po tician en. tne.

subsequent jour decades are. a most e,xtraordinary account. she, not orUy expanded. the, Group's acftvit£es tremendousl(J movi'Yl{Jjrom

food processinq to fuxt£le.s and construction; but also broueht up five you'Yl{J sons, the, elde.st if whom was 18 at the, time. Thert in the,ir turn expanded. upon the, base she, had set up, ventun'Yl{J forth into prev£ously uncharted territory in the, tdecommunications sector.

It was more. thanJust a compa11(J that was born in 18Z() - a legaccJ was born. A legaccJ that would

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awe rise to yu.x..u,;ran's premte.r uscness use-

SAIF GlWLzy if companies

Corporate Social Responsibility Making a Difference

Foundation for Sustainable

Development (SFSD), now in its 4th year, was ~~;;;;=!. established as an independent non-political, non-profit NGO under NWFP Voluntary Social Welfare Agencies Ordinance.

Begum Kulsum Saifullah Khan, its founding Chairperson, was the inspiration behind its establishment. As the country's pre-eminent social worker and women activist, Begum Sahiba keenly felt the need for lifting the less developed rural area of NWFP from current backwardness and providing economic, educational and health facilities to its people. Among the major concerns that she openly expressed was

catering to needs of primary health care for women & children through preventive and curative approaches and help providing employment to the young by instituting Skill Development and Computer Literacy Programme. The Foundation Management, therefore, launched itself into activity with these objectives among several others.

It is with great satisfaction that today the Foundation can take pride in its landmark projects Le. Women & Children Hospital and Vocational Training Centre for Women at Ghazni Khel and Computer Centre in Sarai Naurang, as also providing healthy recreation and sports facilities to the young in the area.

Telecommunications & IT

The telecom sector has grown and diversified rapidly in Pakistan. From a base of few thousand connections in 1994 the mobile sector has grown to above 25 million connections in April 2006. Pay phones and land line usage has also increased dramatically. This is one of the fastest growing and lucrative investment sectors in Pakistan.

SAIF TELECOM LTD.

SaifTelecom ltd. (STl) is the holding company of the group for all projects. It represents Fusion Telecom Inc., US for termination of international traffic through VolP platform installed at the Pakistan Telecommunication Company Limited. The company is primarily involved in providing consultancy and other services to its associated companies. STl owing to the experience gained in providing SMS and other value added services is now planning to launch its operations in the emerging markets. STl provides consultancy in the field of Radio Frequency planning, installation and network optimization for mobile communication networks. STl also provides local support and other services to PMCl in respect of securing necessary permissions from the State Bank of Pakistan. It also has substantial interest in Transworld Associates (Pvt) Limited, Pakistan's first private sector undersea fiber optic cable project. Having experience spanning over decades, it has evolved a unique approach that continues to serve as the industry model, and hence have been emulated by many.

GLOBECOMM (PVT) LTD.

Globecomm (Pvt) ltd. (GCl) has been active in all the fields of Engineering for the past many years and ever since the introduction of Cellular Phone Technology in the country, Its emphasis has been on providing support to the industry for expansion of the Network. GCl provides services in the areas of identification/acquisition/designing/construction of Base Transceiver Station (BTS) and installation of Radio Equipment at these locations.

Today GCl is in the forefront in the field of establishment of Telecommunication Network Towers and all its Ancillary Facilities. With the time GCl has attained vast experience in operating in all types of terrain ranging from far flung areas in the deserts to mountainous regions, from Modern City regions with high rise buildings to Ancient Towns with outdated buildings. GCl always came out with the best solution. Our Superior Management, Sound Administration and a team of carefully selected associates for carrying out Geotechnical Survey, Structural Designing and Fabrication, not only fulfilled the technical requirements of the Telecommunication Network Planners but also satisfied our client. Today GCl stands as a hall mark in the establishment of Telecommunication Network Towers and most of the companies which have entered this field are banking on the trained tradesmen of GCL.

During past 3 years, GCl has acquired more than 1400 sites and have completed construction of over 600 Base Transceiver Stations. GCl's greatest attribute is the ability to respond rapidly to ever increasing market demand. GCl has achieved a benchmark record of acquisition of 150 sites and construction of more than 40 sites within a month in different parts of the country and on various soil conditions. Consequent to providing Turnkey solutions the status of GCl is that of Project Managers, Consultants and Contractors in the field ofTelecommunication Network expansion.

TRANSWORLD ASSOCIATES (PVT) LTD.

Transworld Associates (Pvt) ltd. (TWA), a joint venture of Sa if Group and Orascom Telecom, was setup in the wake of the deregulation of the Pakistani Telecom sector with a mandate to operate the first privately owned submarine fiber optic cable system between Karachi - Pakistan, Muscat - Oman, and Fujairah - UAE.

TWA is setting up the first privately owned Submarine Fiber Optic Cable System between Karachi - Pakistan, Muscat - Oman, and Fujairah - UAE. The system will span over 1300 kms. TWA-l, as the project is named, will commence operations in the second quarter of 2006. TWA-l will provide end-to-end direct broadband, high-speed connectivity to the growing number of telecom operators, internet service providers, and corporate customers in Pakistan. TWA-l will offer data transfer rates at the initial capacity of 20Gbps, with the ultimate objective of enhancing the capacity to 1.28 Tbps.

With the booming telecom sector, and a maturing customer base, there is an urgent need for the provision of high quality and guaranteed uninterrupted availability of bandwidth in Pakistan. TWA offers all of these through the following key services:

• TWA International Private Circuit (lPC)

• TWA IPTransit

IRIDIUM SATELLITE LLC.

SAIF GROUP is a regional service provider of Iridium Satellite llC for Pakistan, Afghanistan and Central Asia to offer and provide all available GMPCS services to customers in these territories. The Iridium services include: Voice, Data at various transmission speeds and throughput rates, Text Messaging via Short Message Service both Mobile Originated and Mobile Terminated, and Paging. The Iridium Satellite System is the only provider of truly global, truly mobile satellite voice and data solutions with complete coverage of the Earth (including oceans, airways and Polar Regions). The Iridium services cater to industrial applications such as heavy construction, defence, emergency services, maritime, mining, forestry, oil and gas exploration and aviation.

PAKISTAN MOBILE COMMUNICATIONS (PVT) LTD.

Mobilink GSM, a joint venture of SAIF GROUP & Orascom Telecom, is a big success story in Pakistan. Since its start in 1994 Mobilink has shown phenomenal growth. When it first entered the market it was a small player in the cellular market. It is now the market leader both in terms of growth as well as having the largest subscriber base. It boasts the largest user base with more than 24 million subscribers and still growing. Its route to become Pakistan's leading mobile operator was firmly rooted in its ability to provide state-of-the-art communications solutions in a fast, efficient and economical manner.

SOFTECH SYSTEMS (PVT) LTD.

Established in 1998 Softech Systems is now a leading software development and technology services company in Pakistan.The primary areas of focus are:

• Wireless Mobile and Computing

• Financial and Capital Market Systems

• E-Commerce Portals and Web based Applications

• Business and Manufacturing Industry Systems

With its activities spread across USA, Europe and Asia, Softech has built a diversified portfolio of services and developed an impressive range of expertise in telecom related software products and financial systems. This had enabled the successful implementation of a range of consulting and software development projects for clients in Canada, Singapore, USA, UK, Turkey, Oman and Pakistan.

SAIF TEXTILE MILLS LTD. Located in the Gadoon Industrial Estate, in the North West Frontier Province of Pakistan, SaifTextile Mills Ltd. (STM) was incorporated as public limited company on 24th December 1989. STM comprises of three units, Unit No.1 consists of 37,440 spindles primarily based on synthetic yarn, Unit No.2, is a ring spinning unit with an installed capacity of 31,884 spindles based on 100% cotton combed yarns for both knitting and weaving end usage. At Unit No.3, Saif Textile Mills, has Pakistan's one of the largest installation (19,152 spindles) of ComforSpin K-44 spinning machines for manufacturing Compact Yarn.

Accreditation of ISO 9002, planned Environmental Management System (ISO 14000) and adoption of world class manufacturing procedures gives Saif Textiles Mills Ltd. the edge over its competitors. Over the years, large number of customers all over the world, stand testimony to SaifTextiles unfaltering commitment to quality and service.

KOHATTEXTILE MILLS LTD.

Kohat Textile Mills Ltd. (KTM) is the group's flagship company and one of the oldest and major industrial projects. The initial license was granted for 12,500 spindles, while currently it has 44,400 spindles installed. Beginning of 1970 saw the mills into commercial operation. Recently a major BMR was undertaken in the mill and now around two third of the capacity is enabled to produce quality yarn for Air-Jet weaving sector. Recently an independent gas fired power plant of 2.0 MW has been installed for un-interrupted power supply to KTM. Recently, as part of its commitment to quality, KTM achieved the highly coveted ISO 9001 :2000 certification for quality control operations.

Product range at STM & KTM includes:

Our textile division has developed a loyal customer base in Europe, the Far East and the Middle East with over 50% of the mill production is being exported directly or indirectly to these regions. The product range of both textiles is briefed as under:

• Ring Spun 13/1 crd and combed to 10011 combed weaving and knitting yarn

• Compact 40/s combed to 140/s combed weaving and knitting.

• Synthetic 1011 to 6011 (Acrylic, Polyester, Viscose, Blends etc)

MEDITERRANEAN TEXTILE COMPANY (S.A.E)

The Saif Group, through its operations in Pakistan, has over 40 years of expertise in the production and marketing of yarn. The Group has always operated in the highest segments of the various markets it operates in. Excellent product quality, consistency of quality and efficient customer service are critical

in our chosen markets.

Building on its position as a pioneer in the production of compact yarn for the high-end shirting sector, the Saif Group has embarked upon the setting up of a state of the art yarn production facility near Alexandria, Egypt. Egypt is a land that holds great promise for the growth of the textile industry. Proximity to the main European markets, favourable market access to the EU and the US, low energy costs, abundant and cheap labour combined with the best cotton fibre in the world make a compelling case for investment in Egypt. The Group has established the Mediterranean Textile Company S.A.E. (Medtex) with SaifTelecom Ltd being the majority shareholder. The project cost is estimated at around USD 20 million and operations are expected to commence in March 2007.

Power Generation

The steady growth in energy demand has emerged with substantial investment opportunities in the Power Sector of the country. SAIF Group of Companies while staying with its vision to explore new business avenues, have taken initiative to actively invest in the power sector of the Country. SAIF Power Limited is a new entrant in the Power Sector with a Letter of Interest for setting up of 225 MWThermal Power Plant.

SAIF POWER LTD. Thermal Power

Letter of Interest was awarded by the Private Power & Infrastructure Board, Ministry of Water & Power, Government of Pakistan in 2005 to set up 225 MW Combined Cycle Thermal Power Project. The project shall be based on duel fuel wherein the Natural Gas shall be the main fuel whereas alternate reliance has been placed on High Speed Diesel. Site selected for the Project is located at longitude 700-16' and latitude of 300-42' at a distance of 15 km from the Sahiwal City, in Punjab Province. The site is connected with National Highway by a 2 km long link road and has the advantage of nearness to the existing Grid Station. Besides, only a few kilometers of further transmission line will be needed to connect the Project to the National Grid. The project shall be developed with the total cost of approximately US$ 190 Million jointly financed by the sponsors as well as key financial institutions. The company has planned to commission the project within a record period of 22 months after financial close. The feasibility study of the company had already been approved and its application for tariff determination is under review with National Electric Power Regulatory Authority.

With the keen interest of the Group, accompanied by support of key financial institutions and team of high caliber, SAIF Power Limited promises to emerge as one of the best Independent Power Producers of the Country equipped with the most modern power generation facility and the Company would be able to sell its power to the national utility company at a very competitive and affordable rate. The Group is committed to complete the project and connect the facility with the National Grid by mid 2008.

SAIF WIND POWER LTD. Wind Farming Power

Sa if Wind Power Ltd. (SWPL) is the latest venture by the Saif Group in the renewable energy sector and reiterates group's commitment to meeting energy requirements of Pakistan by executing projects on a fast track.

SWPL is in the process of setting up two 50 MW each wind farms in Gharo wind corridor in Sindh Province. SWPL have already been issued a Letter Of Interest for the first phase involving installation of about 33 gearless wind turbines of about 1.5MW over an estimated area of 500 acres. Negotiations

with Alternative Energy Development Board are about to start for allocation of land for wind mapping as well as conducting feasibility study. The electricity generated will be dispatched to national grid through National Transmission & Distribution Company for onwards distribution in Karachi Electric Supply Corporation (KESC) area

SAIF ENERGY LTD. Sa if Energy Ltd. (SEL) was incorporated in March 2004 as a public limited company under Companies Ordinance, 1984. Its main focus is on upstream Petroleum sector.

Oil & Gas Exploration

SEL, as a new entrant in the energy sector of Pakistan, is eagerly looking forward to invest in the oil and gas exploration, production, infrastructure projects and other related ventures including acquisition of producing properties. The company will operate independently and also participate in the existing and new joint ventures with other exploration and production companies. Saif Group has the resources and a strong Balance Sheet to arrange finances. Sa if Energy can therefore make a positive contribution in the Petroleum sector.

SEL is actively pursuing to acquire interests in exploration and production ventures. So far it has been granted three blocks, Dhermund, Sari South and Khetwaro as operator. The company also holds 10% interest each in Kohat and Bannu West Blocks operated by Tullow Pakistan (Developments) Limited.

GLOBAL UTOPIA DEVELOPERS "Real Estate Development" is part of the core business of the SAIF Group. The Group has recognized that the global Real Estate boom continues to be buoyant in Pakistan. It leveraged on this phenomenon through an innovative venture visualizing the concept of state of the art residential luxury compound in suburbs of Capital Territory. The project envisaged the establishment of a complex of customized luxury villas with other commercial and common facilities to be developed on over 600 acres of land. Besides residential area, the compound will include state of the art PGA Standard golf course, country club, sports & health facilities, community centre and high-rise buildings. The designing and construction shall be done by the world's renowned architectural and construction firms.

Real Estate Development

Bio-Natural Fertilizer

LAHORE COMPOST (PVT) LTD.

Lahore Compost (Pvt) Ltd. is a Sa if Group company, operating in the field of environmental management. The company has set up its first composting plant at Mahmood Booti under an agreement with the City District Government Lahore (CDGL). The project has been setup on Build-Operate-Transfer basis, whereby the project will be transferred to CDGL after a period of 25 years. This is the first public-private project in Pakistan on such a large scale in the area of Municipal Solid Waste (MSW) Management. The project has been financed by the Bank of Punjab. The Plant has been supplied by Menart Technologies S.P.R.L. of Belgium, a renowned firm providing composting plant world wide.

The project utilizes organic content of MSW and converts it into compost (organic fertilizer) through a process of 70 to 90 days. Compost is a 100% naturally rich organic amendment used for improving the performance of all types of soils. It contains no synthetic chemicals; its natural occurring nutrients are derived slowly from the raw material used. Rich in valuable micro-organisms and humus content, it can be used for wide range of agricultural fertilizer.

,STM

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