On December 6, Riga Stock Exchange announced the winners of "The Baltic Market Awards" recognizing the best practices in investor relations. SAF Tehnika was announced the best in 2 categories: "The Best Investor Relations of Riga Stock Exchange" and "The Best Investor Relations among Small Cap Companies".

OMX_balva

For additional information:
Aira Loite
SAF Tehnika AS
CFO
Phone: +371 67046840
Mob.phone: +371 29425459
Fax: +371 67046809
e-mail: Aira.Loite@saftehnika.com

On November 21, at the start of the exhibition GSM>3G AfricaCom 2007, Cape Town, South Africa, SAF Tehnika will present a new SDH* product - CFQ-RG-IDU - the latest addition to SAF CFQ product line. This is high capacity data transmission equipment suitable for any user of STM-1** channel over the microwave radio.

The natural result of the telecom market development is a growing demand for wireless data transmission systems of a higher capacity and spectral effectiveness, to cater for broadband services as 3G video telephony and high speed Internet access, etc.

The new RG-IDU complements SAF Tehnika SDH (CFQ) product line - high capacity equipment with data transmission speed up to 155 Mbps.

RG-IDU provides SDH regenerator functionality at a better price point comparing to the existing SD-IDU.

Volume deliveries of RG-IDU are scheduled to start in December 2007. The new product will be offered in the existing markets, as well as to all new customers.

"By expanding our SDH product family we are offering ever more choices to our customers and we are planning to increase our presence in the microwave segment of the telecommunications market. We are offering building blocks of next generation mobile and fixed telecommunication networks", states Mr. Normunds Bergs, Chairman of the Board.

During GSM>3G AfricaCom 2007, held in Cape Town, South Africa from November 21-22, SAF Tehnika will present the stand and exhibit the existing products as well as the new SDH product - CFQ-RG-IDU. GSM>3G Africa is the premier Pan-African communications event which comprises a high-level conference programme and separate co-located networking exhibition which is the best place to build new contacts, strengthen relations with the existing customers and, beyond doubt, to get a picture of their own share in the respective industry, as well as their competitors.

The information about the new product is available on SAF Tehnika website: www.saftehnika.com

* SDH -Synchronous Digital Hierarchy

** STM-1 - Synchronous Transport Module

The project is co-financed by Ministry of Education and Science

For additional information:
Aira Loite
SAF Tehnika AS
CFO
Phone: +371 67046840
Mob.phone: +371 29425459
Fax: +371 67046809
e-mail: Aira.Loite@saftehnika.com
 

JSC "SAF Tehnika" Annual Report FY 2006/07 in the attachment.

saf_ar_06_07.pdf 

For additional information:
Aira Loite
SAF Tehnika AS
CFO
Phone: +371 67046840
Mob.phone: +371 29425459
Fax: +371 67046809
e-mail: Aira.Loite@saftehnika.com

JSC „SAF Tehnika” Resolutions of Annual Shareholder Meeting November 13, 2007 in the attachment.

shareholders_meeting_resolutions.pdf 

For additional information:
Aira Loite
SAF Tehnika AS
CFO
Phone: +371 67046840
Mob.phone: +371 29425459
Fax: +371 67046809
e-mail: Aira.Loite@saftehnika.com

JSC "SAF Tehnika" Consolidated Interim Report for 3 Month of Financial Year 2007/08 in the attachment.

3m_01_07_07-30_09_08_eng.pdf 

For additional information:
Aira Loite
SAF Tehnika AS
CFO
Phone: +371 67046840
Mob.phone: +371 29425459
Fax: +371 67046809
e-mail: Aira.Loite@saftehnika.com

JSC "SAF Tehnika" Comply/Explain Report on principles of good Corporate governance in the attachment

saf_cg_principles.pdf 

For additional information:
Aira Loite
SAF Tehnika AS
CFO
Phone: +371 67046840
Mob.phone: +371 29425459
Fax: +371 67046809
e-mail: Aira.Loite@saftehnika.com

For shareholders of Joint Stock company „SAF Tehnika”

Board of directors of Joint Stock Company „SAF Tehnika” announces the annual shareholder meeting shall take place on the 13th of November, 2007 from 11:00 a.m. at Ganibu dambis 24a, Riga (JSC “SAF Tehnika” administration conference room).

Agenda:

1. The approval of report of the board of directors and council;

2. The approval of the annual report of financial year 2006/2007 and the board release of responsibility.

3. The allocation of profit.

4. The election of the auditor.

5. Other.

Registration of shareholders for the meeting shall take place on the day of the meeting - the 13th of November, 2007 - from 10.30 a.m. until 11.00 a.m. at the place of the meeting.

Shareholders can participate personally or delegate a representative.

Shareholders who have blocked their shares have to present passport or other verifying document to register.

Representatives of shareholders have to show legally binding warrant of shareholder and passport or other verifying document to register.

Every shareholder, who wants to participate in the meeting, has to block his shares by the 5th of November.

Draft resolutions of the meeting shall be available from the 29th of October at the Administration of SAF Tehnika, Riga, Ganibu dambis 24a every working day from 9.00 a.m. until 5.00 p.m., but on the day of the meeting - at SAF Tehnika, Riga, Ganibu dambis 24a at the place of registration.

The shareholders may participate in the meeting in a person or by delegating a representative or a proxy.

Form of a written proxy in Latvian is available in the attachment.

pilnvarojuma_veidlapa.doc 

For additional information:
Aira Loite
SAF Tehnika AS
CFO
Phone: +371 67046840
Mob.phone: +371 29425459
Fax: +371 67046809
e-mail: Aira.Loite@saftehnika.com

JSC "SAF Tehnika" Comply/Explain Report on principles of good Corporate governance in the attachment

saf_cg_principles.pdf 

JSC "SAF Tehnika" hereby informs that as of November 1, 2007 Ms. Aira Loite occupies the position of member of the Management Board.
Aira Loite does not own shares of JSC "SAF Tehnika".

JSC "SAF Tehnika" informs that the current member of the Management Board Mr. Aleksis Orlovs has handed in a resignation under which Aleksis Orlovs leaves the position of the Board member from October 31, 2007.

For additional information:
Aira Loite
SAF Tehnika AS
CFO
Phone: +371 67046840
Mob.phone: +371 29425459
Fax: +371 67046809
e-mail: Aira.Loite@saftehnika.com

JSC "SAF Tehnika" consolidated and non-consolidated annual report FY 2006/07 in the attachment.

non_consolidated_12m_01_07_06-30_06_07_en.pdf 

consolidated_12m_01_07_06-30_06_07_en.pdf 

1. Item of agenda

The reports of the Board of Directors and the Supervisory Council
Decision to approve the report of the Board of Directors and report of the Supervisory Council.

2. Item of agenda
The annual report
Decision to approve the annual report.

3. Item of agenda
To release the Members of the Board from responsibility of business activities performed in financial year 2006/2007.
Decision to release the Members of the Board from responsibility of business activities performed in financial year 2006/2007.

4. Item of agenda
Use of profit from the previous year of activity
Considering that the consolidated profit of the SAF Tehnika group is 159 582 LVL, but AS „SAF Tehnika" losses 6622 LVL, the losses of AS „SAF Tehnika" have to be covered from undivided profit, the decision to distribute the profit of previous periods as follows:

4.1) Decision to cover the losses of the Company 6622 LVL (six thousand six hundred twenty two Latvian lats) from undivided profit, which amounts to 3 412 176 LVL;

4.2) Decision to leave the amount of 3 405 554 LVL (three million four hundred and five thousand five hundred and forty five Latvian lats) as the undivided profit of the Company.

5. Item of agenda
The election of the auditor
Decision to elect Deloitte Latvia as the auditor of the Company for the next financial year. To authorize the Board of Directors to set the auditors fee.

6. Item of agenda
Other

6.1) To authorize with power to delegate authority Board of the Company to register the resolutions passed by the meeting of Shareholders in the Commercial Register, to ascertain an excerpt from the Minutes of this meeting, and to sign repeated application and / or complaint to the Commercial Register Authority in the case of Application for the Registry being declined.

6.2) To authorize with power to delegate authority Board of the Company to submit all the required documentation and supply the required explanations, if demanded, to register the resolutions passed by the meeting of Shareholders in the Commercial Register, and to take out the documents from the Commercial Register Authority.

AS "SAF Tehnika" consolidated and non-consolidated annual report FY 2006/07 in the attachments.

non_consolidated_12m_01_07_06-30_06_07_en.pdf 

consolidated_12m_01_07_06-30_06_07_en.pdf 

Riga, 24 September 2007 - SAF Tehnika announces that as of 1 November this year, Aira Loite, Director of Corporate Information and Control Unit at Lattelecom and formerly a long-term Finance Manager at Microlink, is appointed the company's Chief Financial Officer. Within a month, Aira Loite could also occupy a position of a Board Member, thus replacing the former company's CFO Aleksis Orlovs whose leave from the company is related to an opportunity of launching a private business.

"Respecting the decision of our former CFO to take on a new challenge in his career I am convinced that in the person of Aira Loite SAF Tehnika has been joined by a knowledgeable manager with most extensive experience in the sector of innovative technologies, which will be a great asset for the company," stressed SAF Tehnika Chairman of the Board, Normunds Bergs. At the same time SAF Tehnika confirms that the expected changes in the company's management are not related to the changes in the company's strategy of the product development and international operations.

The duties of Aira Loite at SAF Tehnika will include the finance and administrative management and the investor relations.

Before taking the new position Aira Loite worked from April 2006 to October 2007 for SIA Lattelecom - initially as the Corporate Management Director, but after February 2007 as the Director of Corporate Information and Control Unit. A. Loite was a Board Member and the Manager of Finance and Administration Department at SIA Microlink Latvia from October 2000 to March 2006. Within the period from March 2004 to October 2005 she simultaneously performed the duties of the CFO for Microlink Group. A. Loite has higher education in mathematics (University of Latvia, 1983-1988) and she is presently studying at Riga International School of Economics and Business Administration within Salford MBA program.

For additional information:

Normunds Bergs
SAF Tehnika Chairman of the Board
Phone: + 371 67046840
Fax: + 371 67046809
E-mail: normunds.bergs@saftehnika.com

AS „SAF Tehnika" hereby informs that on September 19, 2007 we have received information from A/s „Hansabanka" regarding such owners of shares amounting of more than 10% of shares traded in the regulated market:

HANSA IDA-EUROOPA AKTSIAFOND, on August 3, 2007 has reached ownership of AS "SAF Tehnika" (LV0000101129) 428 736 shares traded in the regulated market with total amount of 14.43% from total AS "SAF Tehnika" share capital and total amount of shares with voting rights which equals the amount of shares traded in the regulated market.

For aditional information:

Aleksis Orlovs
SAF Tehnika AS
Board member
Phone: +371 67046840
Mob. phone: +371 29287289
Fax: +371 67046809
e-mail: Aleksis.Orlovs@saftehnika.com

In the financial year 2007/8, SAF Tehnika plans to keep on developing new products and improving the existing product range in accordance with the latest market tendencies. Previous investments in market development should bring more stable business in all regions decreasing influence of large projects on revenues. Mostly all countries in Europe are covered by active partner network. Largest growth is expected in Africa. Projects in Asia and particularly in India were delayed, but they have been already restarted in July and a large order from Cambodia is expected during first half of the financial year 2007/8. Expectations in the Middle East are conservative and the growth could be achieved only by accessing new customers in such countries as Egypt, Saudi Arabia or Bangladesh. Existing situation in CIS is very promising and further business growth is expected generally in Russia and the countries of Central Asia. SAF Tehnika forecasts at least 10% turnover growth in next financial year 2007/8.

For aditional information:

Aleksis Orlovs
SAF Tehnika AS
Board member
Phone: +371 67046840
Mob. phone: +371 29287289
Fax: +371 67046809
e-mail: Aleksis.Orlovs@saftehnika.com

Find attached JSC "SAF Tehnika" consolidated non-audited interim report for 12 month period of financial year 2006/7.

12 month fy07_saf_results.pdf 

The Group's consolidated non-audited net sales for the financial year 2006/7 were LVL13.5m, on par with FY 2005/2006.

12 month sales breakdown comparative charts:

The CIS region demonstrated 12 month revenue growth of 41% due to the successful cooperation with several notable GSM, CDMA and alternative operators in Russia, Ukraine, Tajikistan and Azerbaijan. Recurring supplies to this region are projected for the coming financial year.

The Asian region posted a revenue decrease of 19%. This was mostly due to the delay of the India project (refer to press release on 04.04.2007). Sales volumes to China were at the same levels as in the previous financial year 2005/6. Currently SAF Tehnika has already received the first order for the delayed India project and partial deliveries commenced in July. The 34% decrease of sales volumes in Latin America is mainly influenced by lower demand in Columbia and the impact of Brazilian market regulations, which provide competition protection to local manufacturers.

Sales to the African region increased by 63% during the financial year. Sales volumes in Europe have grown by 11% as a result of increasing demand for the SAF SDH (high capacity) product line, which was launched in 2006. During the 2006/7 financial year, SAF Tehnika sold its products to 62 countries worldwide.

The consolidated non-audited net profit of the Group for the financial year 2006/7 was LVL 0.05m. The main reasons for the profit decrease were the delay of the large-scale shipments in Q4, as well as the high operational costs (refer to the press release on 04.04.2007).

The cost cutting plan was fully implemented in June (in SAF Tehnika Latvia). June staff expenses were 22% lower compared with March, while the headcount reduction was 12%. The plan came into effect in SAF Tehnika's Swedish subsidiary in July, allowing a further decrease in subsidiary expenses by 10%.

In the 2007/8 financial year, SAF Tehnika plans to keep on developing new products and improving the existing product range in accordance with the latest market tendencies. Our research and development costs are expensed immediately and have historically represented around 10% of sales.

Normunds Bergs, the CEO of SAF Tehnika, said: "The previous financial year was clearly disappointing. The company has, up until now, worked on order visibility of approximately two months. When the scope of delays became clear in the final quarter of financial year 2006/7, we promptly addressed the issue by implementing the cost-cutting programme. This included senior management remuneration.

The Company's financial position remains robust. While we consider this an achievement, it does not address the ongoing need to show meaningful growth and profitability for our shareholders, of which key managers represent over 50%.

The challenge we continue to address is the need to benefit from economies of scale in a global industry which is ferociously competitive.

While ongoing innovation and product development is a necessity, so is the ability to sell one's product to a wide range of potential users. I intend to allocate more of my time in the coming year to addressing this very issue. Furthermore, a restructured sales division and implementation of a new automated manufacturing line are expected to provide increased efficiencies going forward."

The new SDH product's sales have exceeded expectations - unit sales in FY 2006/7 grew ten-fold to 475 units (vs. five-fold expectations) during the previous financial year. The new hybrid (super PDH) product is expected to be launched during the 2007/8 financial year.

For aditional information:

Aleksis Orlovs
SAF Tehnika AS
Board member
Phone: +371 67046840
Mob. phone: +371 29287289
Fax: +371 67046809
e-mail: Aleksis.Orlovs@saftehnika.com

SAF Tehnika Group non-audited consolidated financial results for the financial year, which started on July 1, 2007, will be disclosed on the following dates:

- for Q1 results on 7 November, 2007
- for Q2 and 6 month results on 6 February, 2008
- for Q3 and 9 month results on 7 May, 2008
- for Q4 and financial year results on 6 August, 2008

For aditional information:

Aleksis Orlovs
SAF Tehnika AS
Board member
Phone: +371 67046840
Mob. phone: +371 29287289
Fax: +371 67046809
e-mail: Aleksis.Orlovs@saftehnika.com

SAF Tehnika consolidated interim report on 9 month FY 2006/07 attached.

9m_01_07_06-31_03_07_eng.pdf

Since the beginning of the financial year, SAF Tehnika has made considerable investments in the development of the company. This is consistent with the business strategy and objectives which involve broad market expansion and significant growth of sales volumes. Among the investments is a new automated modern manufacturing line which has been implemented and additional considerable increase in human resources. Part of this investment was influenced by various expected large-scale projects in India which imposed first shipments as early as Q3 of the financial year and were, at the time, thought to be strategically important for the long-term development of the company.

Due to the delay in realizing the above-mentioned projects and to continue to maintain the company's profitability at the forecasted levels, the SAF Tehnika management board has adopted a cost cutting plan. This involves a temporary salary reduction for a limited time. The plan envisions a decrease in management salaries of 30% and for employees of 15% as well as an adjustment to production capacity until the successful realization of these projects. The company does not foresee any obstacles which might prevent realization of these projects.

Sales volume to China keeps its positive dynamics and SAF Tehnika management is satisfied with the 2007 forecast submitted by the Chinese partner. The company is not in possession of any information that would indicate that the products of SAF Tehnika have been copied in China and are being sold in any region. In light of the company's successful sales history, current backlog and forecasted orders for China, the company has no reason to believe that any of the company's product lines have been copied in China.

SAF Tehnika maintains the guidelines unchanged regarding expected increase in turnover during financial year 2006/07. Based on an analysis of the preliminary data the previous quarter, Q3, will be profitable and the company expects favourable results in Q4.

Market conditions are very competitive for all participants in the telecommunications industry from equipment vendors to network operators. The current situation should not be considered as a crisis in the company or the industry. The company management perceives the current phase as a period often experienced by many high-growth, high-technology companies which invest heavily in anticipation of market opportunities and to increase competitiveness.

For aditional information:

Aleksis Orlovs
SAF Tehnika AS
Board member
Phone: +371 67046840
Mob. phone: +371 29287289
Fax: +371 67046809
e-mail: Aleksis.Orlovs@saftehnika.com

Since the beginning of the financial year SAF Tehnika has considerably increased capacity of the manufacturing in relation with realization of two large projects in India.

Because of the delay in realization of the above mentioned projects, to continue to maintain company profitability on the forecasted levels, SAF Tehnika management board has adopted cost cutting plan, which involves decrease of management salaries for 30% and employees salaries for 15% till successful realization of the projects. The company does not see any obstacles which might prevent realization of these projects.

SAF Tehnika keeps the guideline unchanged regarding turnover increase during financial year 2006/07.

For aditional information:

Aleksis Orlovs
SAF Tehnika AS
Board member
Phone: +371 7046840
Mob. phone: +371 29287289
Fax: +371 7046809
e-mail: Aleksis.Orlovs@saftehnika.com

In response to growing demands for low-cost microwave radios with high data-rate transmission capacity, SAF Tehnika is today announcing the launch of the development of CFP family of microwave digital radio with Ethernet interface.

Based on the close relationship with our customers, understanding of their needs and confirmed by additional market research, SAF Tehnika has decided to initiate development of this new product line, SAF CFP. Commonly known in the telecommunications industry as Super-PDH, this type of microwave radio will use higher-capacity modulation than existing PDH radios and will combine both PDH and SDH functionality. The result will be enhanced data transmission capacity - up to 68 Mbps in contrast to the 34 Mbps that is currently available from traditional PDH radios. In addition, the new radio will cost considerably less than SDH radios.

Together with the development of the new radio, SAF Tehnika will also develop a new generation of Ethernet interface with the aim of improving on existing functionality. With such research and development activities taking place in Latvia, SAF Tehnika believes this project will markedly raise the technical competence of participants and will promote the growth of R&D in Latvia.

The major markets for Super-PDH microwave radios are Europe and particular regions in Asia and Latin America. The project is co-financed with Latvian state budget funds from the Ministry of Education and Science within a market-oriented research programme framework.

The launch of the new product resulting from this research programme is anticipated in the beginning of 2008.

JSC "SAF Tehnika" non-audited consolidated, 6 months financial report FY2006/2007 is available on Riga Stock Exchange web page:

http://www.baltic.omxgroup.com/market/?pg=details&instrument=LV0000101129&list=2&tab=re​ports&lang=en

AS „SAF Tehnika" informs that we have received information from East Capital Asset Management AB that on behalf of East Capital Baltic Fund, East Capital Asset Management AB has sold 40 000 SAF Tehnika AS shares (ISIN LV0000101129) on 17th January 2007. East Capital Asset Management's holding after the transaction is 116 509 shares, representing 3.92% of the voting rights and share capital. East Capital Asset Management's ownership before the sale was 156 509 shares, representing 5.27% of the voting rights and share capital.

Aleksis Orlovs
SAF Tehnika AS
CFO
tel. +371 7046825
fax. +371 7046809
aleksis.orlovs@saftehnika.com
www.saftehnika.com