In June, 2009, JSC „SAF Tehnika" had started a research of the project "Development of solutions for design of new-generation wireless digital microwave radio products" co-financed by European Regional Development Fund and Latvian national budget according to the concluded agreement No.L-JPI-09-0002 (project No.JPI/2.1.2.2.1/08/01/0002) with the state agency "Investment and Development Agency of Latvia".

The project is being implemented according to the project plan. The analysis of the literature on the themes of the research has been completed and the work is continuing at designing the algorithm for pre-distortion coefficients evaluation. The interim report has been submitted.
In December technical pre-research of duplexer has been started to develop a technical research for designing an optimized duplexer.

Additional_information:
Aira Loite
CFO
Phone: +371 67046833
Mailto: Aira Loite

The project is co-financed by European Regional Development Fund:

JSC "SAF Tehnika" informs that on 7th December 2009 it received a message that a natural person named Gatis Poišs has acquired a significant amount of JSC "SAF Tehnika" capital shares - 305 226 shares on 4th December 2009 were in his posession and this amount is equal to 10.28% of JSC "SAF Tehnika" share capital.

Aira Loite
CFO
+371 67 046 833
Aira.Loite@saftehnika.com

According to the agreement No.L-ĀTA-09-0119 (project No. ĀTA/2.3.1.1.1/09/04/013) concluded on 13th August 2009 between JSC "SAF Tehnika" and government institution "The Investment and Development Agency of Latvia" regarding the implementation of a project "Participation of JSC "SAF Tehnika" in international exhibitions in the Republic of South Africa, Germany and Russia", SAF exhibited at AfricaCom 2009 which took place in Cape Town, South Africa, on 11th -12th November.

As the exhibition continued only for 2 days, the schedule was very busy - there were meetings arranged with the partners to discuss further cooperation, to introduce them with the new products and talk about particular projects, as well as new potential customers visited SAF booth to get acquainted with the product range that SAF offers.

During the exhibition all SAF product lines were presented in SAF booth # A16. The visitors showed the most interest in one of the latest SAF products - CFIP Lumina FODU which was especially highlighted.

Aira Loite
CFO
+371 67046833
Aira.Loite@saftehnika.com

The project is cofinanced by:

Taking into account that the shareholders of JSC "SAF Tehnika" decided to pay dividends, the Board of Directors of JSC "SAF Tehnika" declares that the date of calculation of dividends will be 21st December 2009 but the date of payment of dividends will be 28th December 2009.

Additional information:
Aira Loite
CFO
Phone: +371 67046833
Mailto: Aira Loite

The JSC SAF Tehnika non-audited net sales for the first quarter of financial year 2009/2010 were 1 650 466 LVL (2 348 402 EUR), representing 69% from the first quarter of the previous financial year. The company's products were sold in 53 countries. The number of CFM and CFQ products sold has decreased substantially as SAF's clients are waiting for more sophisticated and upgraded CFIP products. The net loss of the company for the first quarter of financial year 2009/2010 was 183 634 LVL (261 288 EUR). The net loss mainly reflects lower sales due to a lack of funding for investments for SAF clients and increasing competition. The management is shifting the company's strategy towards delivering more specialised niche products. The first step is the full introduction of an extensive CFIP product line and focussing on customer tailored solutions. The primary goal is to make the company's business profitable again.

SAF Tehnika JSC Interim Report for 3 Month FY 2009/2010 can be found in the attachment. 

Attachment:

3m fy10_saf_results eng.pdf 

Aira Loite
CFO
+371 67046833

Aira.Loite@saftehnika.com

The consolidated audited net sales for the financial year 2008/09 of SAF Tehnika Group were 8.83 million LVL (12.56 million EUR). The consolidated net result of the Group for the financial year 2008/09 was 1.242 million LVL (1.767 million EUR) loss. The audited net loss has increased by 124 thousand LVL (177 thousand EUR) in comparison with the non audited consolidated net result announced on 05.08.2009 recognizing loss from divestment of SAF tehnika Sweden amounting to 437 thousand LVL (621 thousand EUR) in the Income statement of financial year 2008/09.

The JSC "SAF Tehnika" audited net sales for the financial year 2008/09 were 8.81 million LVL (12.54 million EUR), and the net loss was 1.117 million LVL (1.589 million EUR).

The attachment:

JSC SAF Tehnika Consolidated and non consolidated audited Annual Report for financial year 2008/2009 (1st July 2008 - 31st March 2009).

saf tehnika consolidated eng 2008 2009.pdf 

saf tehnika eng 2008 2009.pdf 

Aira Loite
CFO
+371 67 046 833
Aira.Loite@saftehnika.com

Draft resolutions of JSC "SAF Tehnika" annual shareholders meeting

Additional_information:
Aira Loite
CFO
Phone: +371 046 833
Mailto: Aira Loite

Attachment contains the yearbook of JSC "SAF Tehnika" from FY 2008/2009.

Attachment:

yearbook_2008-2009.pdf 

Aira Loite
CFO
+371 67 046 833
Aira.Loite@saftehnika.com

Attachment contains a Report on the Corporate Governance of SAF Tehnika AS from FY 2008/2009.

Attachment:

saf_corpgov_08-09_eng.pdf 

Aira Loite
CFO
+371 67 046 833
Aira.Loite@saftehnika.com

Information on JSC "SAF Tehnika" annual shareholders meeting and draft amendments of articles of association can be found in the attachments.

Meeting announcement

Articles of Association

Ammendments to the articles of association

Aira Loite
CFO
+371 67 046 833
Aira.Loite@saftehnika.com

JSC "SAF Tehnika" non-audited net sales for the first quarter of financial year 2009/2010 were 1 650 466 LVL (2 348 402 EUR), representing 69% from the first quarter of the previous financial year. The company’s products were sold in 53 countries.

The number of CFM and CFQ products sold has decreased substantially as SAF’s clients are waiting for more sophisticated and upgraded CFIP products. The net loss of the company for the first quarter of financial year 2009/2010 was 183 634 LVL (261 288 EUR). The net loss mainly reflects lower sales due to a lack of funding for investments for SAF clients and increasing competition. The management is shifting the company’s strategy towards delivering more specialised niche products. The first step is the full introduction of an extensive CFIP product line and focussing on customer tailored solutions. The primary goal is to make the company’s business profitable again.

SAF Tehnika JSC Interim Report for 3 Month FY 2009/10

Additional_information:
Aira Loite
CFO
Phone: +371 67046833
Mailto: Aira Loite

More information on CFIP PhoeniX - SAF's New Generation Hybrid High Capacity Split Mount Microwave Radio System - can be found in the attacgment.

Attachment:

20091005_cfip_phoenix_release_en_2.doc

Taking into account the financial results of JSC "SAF Tehnika" in first two months of financial year 2009/2010 - because of the sharp decline of the turnover - the Board of Directors of JSC "SAF Tehnika" decided to decrease the salary fund evaluating the load of employees in all departments of the enterprise according to present and prospective production and sale amounts, as well as to revise and optimize present business operations. On 28th September 2009 at the general meeting of employees they were informed of the grounds and proposals for the decrease of the salary fund. It is planned to execute the changes in workloads and salary as of 1st November 2009.

JSC "SAF Tehnika" will publish Q1 results (July - September) of financial year 2009/2010 on 4th November 2009.

Aira Loite
CFO
+371 67046833

Aira.Loite@saftehnika.com

Dates of publication of financial results of JSC "SAF Tehnika" in FY 2009/2010

JSC "SAF Tehnika" will publish its financial results in FY 2009/2010 (1st July 2009 - 30th June 2010) in following dates:

1st Quarter - 4th November 2009;

2nd Quarter and 6 months - 3rd February 2010;

3rd Quarter and 9 months - 12th May 2010;

4th Quarter and 12 months (financial year) - 11th August 2010.

Aira Loite
CFO
+371 046 833
Aira.Loite@saftehnika.com

On 13th August 2009 JSC "SAF Tehnika" and government institution "The Investment and Development Agency of Latvia" concluded an agreement No.L-ĀTA-09-0119 (project No. ĀTA/2.3.1.1.1/09/04/013) regarding the implementation of a project "Participation of JSC "SAF Tehnika" in international exhibitions in the Republic of South Africa, Germany and Russia" co-financed by European Regional Development Fund. Project expenses estimate altogether at 72 thousands LVL.

Within the project JSC "SAF Tehnika" will participate in 3 large scale regional IT and Telecommunications exhibitions - "Africa Com 2009", which will take place in November 2009, in Cape Town, Republic of South Africa, "CeBIT 2009" - in March 2010, in Hannover, Germany and "Sviaz ExpoComm 2010" - in May 2010, In Moscow, Russia.

The company will participate at exhibitions with the intention to promote SAF brand and products in Africa, Europe and CIS regions, as well as meet new partners and customers. All SAF product lines will be presented at all exhibitions.

For additional information:

Aira Loite
CFO
+371 67046833
Aira.Loite@saftehnika.com

The project is cofinanced by:

The SAF Tehnika consolidated non-audited net sales for the fourth quarter of financial year 2008/09 were 1.96 million LVL (2.78 million EUR), representing 67% of the fourth quarter of the previous financial year.

The Group's consolidated non-audited net sales for the 12 months of the financial year 2008/09 were 8.81 million LVL (12.53 million EUR) representing year-on-year revenue decrease by 17%. The SAF Tehnika products were sold in 79 countries during financial year 2008/2009. 11 of them were new markets.

The consolidated net loss of the Group for the fourth quarter of financial year 2008/09 was 325 thousand LVL (463 thousand EUR).

The consolidated net loss of the Group for the financial year 2008/09 was 1.12 million LVL (1.59 million EUR). The net loss mainly reflects lower sales and falling margins due to a lack of funding for investments for SAF Tehnika's clients and increasing competition. The loss was notably impacted by allowances recorded for bad and doubtful trade receivables amounting to 245 thousand LVL (348 thousand EUR). This was due to information received about significant liquidity problems of the company's clients in Russia (sales were originally made during the second half of 2008). An extraordinary item relating to the divestment of SAF Tehnika Sweden amounting to 249 thousand LVL (354 thousand EUR) was a further contributor.

SAF Tehnika continues to roll out new products from the CFIP family to satisfy customer needs for higher capacity products and recover reducing sales for CFM products. A solid financial condition (net cash rather than net debt) allows the Company to maintain general operations at their previous level and increase the sales team's local presence in all regions.

The attachment contains JSC SAF Tehnika Consolidated Interim Report for Q4 and 12 months of financial year 2008/2009 (1st July 2008 - 31st March 2009).

Attachment:

12m fy09_saf_results eng.pdf 

Additional information: 
Aira Loite
CFO
+371 67046833
Aira.loite@saftehnika.com

Correction: information specified

Attachment contains the information on the project for which JSC "SAF Tehnika" has obtained co-funding.

Attachment:

20090709_fundingofaresearchproject.doc

Aira Loite
CFO
+371 67 046 833
Aira.Loite@saftehnika.com

Attachment contains the information on research project for which JSC "SAF Tehnika" has obtained funding.

Attachment:

20090709_fundingofaresearchproject.doc

Aira Loite
CFO
+371 67 046 833
Aira.Loite@saftehnika.com

JSC "SAF Tehnika" informs that on 2nd July 2009 it received a message that a natural person named Gatis Poišs has acquired a significant amount of JSC "SAF Tehnika" capital shares - 151 202 shares on 25th June 2009 were in his posession and this amount is equal to 5.09% of JSC "SAF Tehnika" share capital.

Aira Loite
CFO
+371 67046833

Aira.Loite@saftehnika.com

SAF Tehnika is one of the companies that support the educational program „Mission Possible". The goal of the program is to attract to Latvian schools young, clever and talented high school graduates with leader qualities and good academic achievements.

On 16th of June four young teachers of physics from the program „Mission Possible" visited SAF Tehnika to get acquainted with the company as well as to discuss the current and future situation regarding the physics subject at schools. The young teachers were also invited to excursion around the company to get known with the company products and research & development and manufacturing processes.

CEO of JSC "SAF Tehnika" Normunds Bergs, director of program „Mission Possible" Zane Oliņa and the young teachers of physics Mārtiņš Gulbis, Gatis Narvaišs, Pāvels Nazarovs, Aleksandrs Vorobjovs.

Additional information:

Aira Loite
CFO
+371 67046833

Aira.Loite@saftehnika.com

Today, on 12th June, JSC "SAF Tehnika" as the first exporting company in Latvia submitted 2 applications for export guarantees to Latvian Guarantee Agency.

These transactions involve mobile operators from Tajikistan and Somalia which have been SAF partners for more than 3 years. Agreement on deliveries has been already signed with Somali partner but the other transaction is under the process of negotiations and the volume of the transaction is still being precised.

Export guarantees will serve as the transactions' insurance policy but the exact amount of export guarantees will be defined by Latvian Guarantee Agency.

JSC "SAF Tehnika" CEO, Normunds Bergs admits: "State export guarantees are very important support tool for exporting companies offering competitive payment terms in the current economic situation when customers expect from manufacturers long payment terms. In the telecommunications industry payment periods up to 24 months after the delivery of equipment are requested."

Additional information:

Aira Loite
CFO
+371 67046833

Aira.Loite@saftehnika.com

As from 1st May 2009 SAF Tehnika has started the project SAF Leasing.

The goal of the project is to enable the end-user to buy SAF equipment in leasing by dividing the total sum in 12 fixed payments to be made every month within a year. Thus, the end-user avoids expensive initial investments (purchase of equipment) as well as dealing with complicated bureaucratic system in order to receive financial support from bank. This innovative solution has been implemented after analysis of current market situation and also considering SAF long-term strategy with focus on small-size companies. The main reason for implementing leasing project is the lack of financial support in current economic situation. With the Leasing program SAF focuses on the attraction of new clients and on introduction of the existing clients with the latest SAF product line - CFIP.

Leasing option is especially attractive for internet service providers as the internet services become more popular - the amount of transferred data increases and service providers need higher capacity of data transfer. However, in current economic situation consumers are not able to pay extra money for this service - therefore service providers need additional financial support to continue the development.

From the moment when the new program has been launched, SAF has already signed the first leasing contract with the company SIA Datu Tehnoloģiju grupa. SAF Leasing program will be offered as long as the clients are not able to receive financial support from banks.

Additional information:

Aira Loite

CFO

+ 371 67 046 833

Aira.Loite@saftehnika.com

Nikolajs Redins

Sales Manager

+ 371 67 046 210

Nikolajs.Redins@saftehnika.com

According to the agreement No.L-AKA-08-0004 (project No. AKA/1.3.1.1.4/08/01/044) signed on 30th October 2008 by JSC "SAF Tehnika" and the state institution "The Investment and Development Agency of Latvia" on co-financing the project "Raise of qualification of JSC "SAF Tehnika" employees", the course "Elaboration of RF and microwave scheme: applications and theory" (2 employees) will take place from 25th up to 29th May 2009.

Aira Loite
CFO
+371 67046833

Aira.Loite@saftehnika.com

The project is co-financed by European Social Fund:

JSC "SAF Tehnika" informs about the conclusion of the project "Implementation in production of New CFIP Product Line" which was co-financed by European Regional Development Fund in cooperation with state institution "The Investment and Development Agency of Latvia. Co-financed amount - 10 727,50 LVL.

The project no. JPR/2.1.2.2.2/08/01/001 was implemented from March 31, 2009 and  the aim of the project was to implement in production the latest JSC „SAF Tehnika" product 16QAM microwave radio with Ethernet interface - CFIP product, that was designed within a market-oriented research programme framework from March 2007 upto April 2008. In May 2008 development of the prototype of new CFIP product line was concluded, the product was tested finally and certification started in JSC "SAF Tehnika" target markets.

The project involved improvement of several work places and purchase of equipment for testing the features of the new product.
The manufacturing of the new product will allow to restructure JSC SAF product portfolio and to stay among the top 10 leading vendors of microwave solutions.

The new product plays a significant role in stimulating the commercial activities in the current global economic situation. CFIP evokes a great interest enabling to move gradually from CFM (low to medium capacity radio) to CFIP (hybrid) sales which is a substantially alternative product and, at the same time, at lower cost.

Additional information:

Aira Loite

CFO

+371 67046833

Aira.Loite@saftehnika.com

The project is co-financed by European Regional Development Fund:

In accordance with the agreement No. L-AKA-08-0004 (project No. AKA/1.3.1.1.4/08/01/044) signed on 30th of October, 2008 by JSC "SAF Tehnika" and the state institution "The Investment and Development Agency of Latvia" about cofinancing the project - "Raise of qualification of JSC "SAF Tehnika" employees", the course "IFRS - standards of International financial reports" (1 employee) will take place in London from 11 to 15 May, 2009.

Aira Loite
CFO
+371 67046833

Aira.Loite@saftehnika.com

The project is co-financed by:

Today, on 11th of May 2009, the international contest of ideas organized in Russia by "SAF Tehnika" JSC has ended. The aim of the contest was to acquire new innovative potential business ideas by addressing those technical specialists and students with creative ideas lacking resources for their implementation.

The contest was announced on 2nd March 2009 in Russia. It was possible to submit the ideas till 4th May 2009 and in total 15 applications were received. The contest evaluation board revised all the applications, but, unfortunately, none of them qualified to be implemented in production of "SAF Tehnika" JSC.

"SAF Tehnika" JSC expresses gratitude to all the authors and warrants that submitted ideas will not be disclosed to public or conveyed to any other third party.

Aira Loite
CFO
+371 67046833

Aira.Loite@saftehnika.com

JSC "SAF Tehnika" has signed a MoU with "Benha Electronics Co." regarding production of microwave radio systems in Egypt for projects and tenders in Egypt and its neighboring countries.

After successful trial link installation for the Ministry of Interior Affairs of Egypt in November 2008, Vice President Sales & Marketing of JSC "SAF Tehnika" Janis Ennitis visited Egypt in January 2009 in order to meet with "Benha Electronics Co." representatives. During this visit a Memorandum of Understanding had been signed between both parties. The MoU intends the cooperation between both companies in the sphere of production of microwave radio systems in Egypt for projects and tenders in Egypt and its neighbouring countries.

In April a tender was submitted for connecting municipal police offices from Cairo to Aswan in Egypt. In case of a positive result JSC "SAF Tehnika" will start production of its equipment for the tender in the manufacturing company "Benha Electronics Co.".

"Benha Electronics Co." is a state owned company established in 1960's and is the leading electronics industry company in the region. The company's products comprise of HF-VHF-UHF-TRX systems for civilian applications as well as military radar systems, C4I and electronic warfare equipment.

In the picture: Vice President Sales & Marketing of SAF Tehnika, Janis Ennitis and CTO of Benha Electronics, Osama Abd El Rehem after signing the MoU

For additional information:

Aira Loite
CFO
+371 67046833

Aira.Loite@saftehnika.com

The attachment contains JSC "SAF Tehnika" Consolidated Interim Report for 9 months of financial year 2008/2009 (1st July 2008 - 31st March 2009).

Attachment:

9m fy09_saf_results eng.pdf

Additional information:

Aira Loite
CFO
+371 67046833

Aira.Loite@saftehnika.com

In accordance with the agreement No. L-AKA-08-0004 (project No. AKA/1.3.1.1.4/08/01/044) signed on 30th of October, 2008 by JSC "SAF Tehnika" and the state institution "The Investment and Development Agency of Latvia" about cofinancing the project - "Raise of qualification of JSC "SAF Tehnika" employees", the course " Standards of international accounting " (1 employee) will take place from 17th  April to 31st July, 2009.

Aira Loite
CFO
+371 67046833

Aira.Loite@saftehnika.com

The project is co-financed by:

Today, on 2nd of March 2009, the joint stock company "SAF Tehnika" announces international contest of ideas in Russia in order to attract new innovative ideas for extension of SAF product range. The contest is announced in Russia where the joint company "SAF Tehnika RUS" was founded in November 2008. Technical specialists and students who have creative and innovative ideas of business potential but no resources for their implementation are invited to enter the contest. The winner/-s of the contest will be awarded with a prize and will be able to see his/her idea's introduction into production.

JSC "SAF Tehnika" designs and produces wireless microwave radio equipment for data and voice communication. The equipment is manufactured in Latvia but sold worldwide. JSC "SAF Tehnika" products provide wireless backhaul solutions for digital voice and data transmission to mobile and fixed network operators, data service providers, as well as governments and private companies.

The first SAF international contest of ideas was announced on 1st September 2008 and in total 5 applications were received. The contest evaluation board revised all the applications, but, unfortunately, none of the projects qualified to be implemented in production. To continue this tradition it was decided to announce the second contest of ideas, this time in Russia. By announcing the contest SAF desires to encourage generating creative ideas and also implementing them in production in case some idea will be considered to be useful and suitable for the company.

The award - EUR 5000. The rules of the contest are published on SAF web page www.saftehnika.com. The ideas should be submitted via e-mail contest@saftehnika.com or by post with a reference to the contest till 20th April (post stamp). The submitted ideas will be evaluated by the contest evaluation board till 12th of May when the results of the contests will be published on SAF web page.

Attachment:

SAF_Rules_ international_contest_2009

Aira Loite

CFO

+371 67046833

Aira.Loite@saftehnika.com

In accordance with the agreement No. L-AKA-08-0004 (project No. AKA/1.3.1.1.4/08/01/044) signed on 30th of October, 2008 by JSC "SAF Tehnika" and the state institution "The Investment and Development Agency of Latvia" about cofinancing the project - "Raise of qualification of JSC "SAF Tehnika" employees", the seminar "Planning of strategic development of an enterprise" (12 employees) will take place on 25th of February, 2009.

Aira Loite
CFO
+371 67046833

Aira.Loite@saftehnika.com

The project is co-financed by:

On 9th February 2009 JSC "SAF Tehnika" and government institution "The Investment and Development Agency of Latvia" concluded an agreement No.L-ĀTA-09-0005 (project No. ĀTA/2.3.1.1.1./08/01/011). co-financed by European Regional Development Fund. Project expenses estimate altogether at LVL 58.9 thousands.

The project provides a co-funding for the coverage of expenses resulting from the production of marketing materials and from the participation of JSC "SAF Tehnika" in international telecommunication and information technology exhibitions - "CeBIT 2009" in Hannover, Germany, from 3rd until 8th March 2009 and "Sviaz ExpoComm 2009" in Moscow, Russia, from 12th until 15th May 2009.

Company will participate in the exhibition "CeBIT 2009" with the intention to promote the popularity of SAF brand in the whole world, present company's product news, meet the current clients and discuss with them the possibilities for further collaboration, as well as to find new partners.

For its part, the aim of participation in "Sviaz ExpoComm 2009" is to promote the popularity of SAF brand, present company's product news, strengthen the positions of SAF in the market of Russia and CIS, find new potential clients, as well as to strengthen relations with current partners.

Both exhibitions will face the presentations of the whole SAF product line - the new CFIP product together with CFQ and CFM which are well known among SAF clients.

Aira Loite
CFO
+371 67046833

Aira.Loite@saftehnika.com

The project is co-financed by:

JSC "SAF Tehnika" announces, that due to received information about liquidity problems of the company's clients in Russia additional allowances for bad and doubtful trade receivables amounting to LVL 245 thousand are recorded. Respective sales were made in the second half of 2008.

Aira Loite
CFO
+371 67046833

Aira.Loite@saftehnika.com

The attachment comprises JSC "SAF Tehnika" Consolidated Interim Report for 6 Month of FY 2008/09 (1st July 2008 - 31st December 2008).

Attachment:

6m fy09_saf_results eng.pdf 

Aira Loite
CFO
+371 67046833

Aira.Loite@saftehnika.com

JSC „SAF Tehnika" hereby informs that on 26th January 2009 it has received information from „SEB Asset Management" SA that „SEB Asset Management" SA has lost the relevant vote within JSC „SAF Tehnika" by alienation of shares. Accordingly, „SEB Asset Management" SA currently owns 296 364 shares having the right to vote, which correspond to 9.98 % of JSC "SAF Tehnika" (LV0000101129) share capital having the right to vote.

Aira Loite
CFO
+371 67046833

Aira.Loite@saftehnika.com

Resolutions adopted at the extraordinary shareholders meeting of JSC "SAF Tehnika" on 21st January 2009 can be found in the attachment.

Attachment:

resolutionsadopted_20090121_nsadaq&fktk.doc 

Aira Loite
CFO
+371 67046833

Aira.Loite@saftehnika.com

Under the agreement No.L-AKA-08-0004 (project No.KA/1.3.1.1.4/08/01/044) signed on 30th October 2008 by JSC “SAF Tehnika” and the government institution “The Investment and Development Agency of Latvia” on co-financing the project “Raise of qualification of JSC "SAF Tehnika" employees”, courses “Business English” (4 employees) will take place from 7th January to 22nd April, 2009 but courses “Business class” (1 employee) - from 16th January to 23rd May, 2009.

Aira Loite
CFO
+371 67046833

Aira.Loite@saftehnika.com

The project is co-financed by: