TIMDER

2007-2008 ACTIVITY REPORT

April 24, 2008

Following the Ordinary General Meeting held on April 19, 2007, a new period was started to ensure the continuity of a successful period.

I would like to summarize the activities performed during the last year lead by our present Board of Directors comprising successful businessmen full of enthusiasm and excitement, joining us with the desire to take up posts in our Board of Directors and our experienced and knowledgeable members who work with sacrifice at the Board of Directors in the previous period under main headings.

Our Association presently has more than 300 principal and more than 100 honorary members. Our organization, which has a member potential of over 1,500 with our branches and independent sister organizations in Izmir, Bursa, Denizli, Antalya, Fethiye and Ankara has set up the TIMFED Plumbing and Building Materials Suppliers Federation which will represent the construction material dealers in our country in March 2007.

The activities of our association are gathered under the following headlines.

1- Organizational Activities;

Our association, seeking to spread over the country, has formed branches in Izmir, Bursa and Denizli in previous periods, establishing and independent association in Antalya under the title of ANTİMDER (Antalya Plumbing and Building Materials Suppliers Association).

Our Association, seeking to bring the building and plumbing materials suppliers in our country under the same roof, has formed a group titled “TIMDER Boards of Directors and Chairmen” with participation of FIMSIAD (Fethiye Building Material Dealers Businessmen Association) in Fethiye, TIMKODER (Plumbing and Building Industry Materials Suppliers Association) in Ankara and ANTİMDER in Antalya and our branches.

Periodically, meetings were held in the provinces where our organizations are situated in, with industry problems discussed and also Governors, Mayors and Chambers of Commerce were visited, introducing our organizations, resulting in mutual exchange of information.

The suggestions by our formed Chairmen for forming a Federation were discussed in the agendas of our former and present management. The federation process was started as NGOs gained importance each passing day in our country which is in the EU process.

To that end, a new association was formed under the title of Burtimder in Bursa and Dimsiad in Denizli. In this process, the support of TOBB President Rifat Hisarcıklıoğlu was obtained and all preparations were completed for establishment of a federation lead by TIMDER were completed and the bylaws of the Federation was approved and our Federation was set up under the title of TIMFED as of March 28, 2007.

The press announcement made jointly with TOBB President was broadcast live from Haber Türk TV Channel during the UNICERA Trade Fair on April 06, 2007. The bodies of our Federation were set up at the Board of Directors meeting held after the initial General Meeting held Wednesday 23, 2007 in Ankara. Thanks to the efforts by TIMFED Media and Communication Task Group, the first issue of TIMFED Magazine was published before 2008 UNICERA Trade Fair and its website has started trial publications. VANTİMDER, set up in Van in early January 2008 for becoming a member of our Federation in the upcoming periods, will take part in the 1st VAN Construction Building Decoration Trade Fair to be held in Van May 08-11, 2008.

2- Training Activities

The training activities, of which the 4th period is taking place at TIMDER Academy, has started as of November 01, 2007 for a period of 7 months on 14 separate subjects like in previous periods. The training courses, continuing without any payment by our participants at Dedeman Hotel will be completed on May 15, 2008.

Like in previous periods, attendance and performance certificates will be handed out and also ranking graduates will be granted special gifts at the end of the training program which has over 250 participants from over 60 firms with classrooms of 90 people.

Ceramics Federation, Kale and Eczacıbaşı Groups are the main sponsors, and Franke, Hitit, Teka, Ege Seramik, DemirDöküm and Ekpaş are other sponsors four our training activities in this period.

Also, information meeting series are in progress and a conference titled “Potential Scenarios in an Environment of Fluctuation in 2008” was offered by Mr. Deniz Gökçe in February 2008.

3- Trade Fair Activities

The trade fair, which was organized by TIMDER under the year of inception of our Association until 2002, starting with the exhibition of building and plumbing materials and where bathroom and ceramic ware started to be displayed in time, its being organized under the title of the UNICERA Ceramics and Bathroom Trade Fair in Istanbul Beylikdüzü in April each year together with the Ceramics Federation of which we are a member of since 2002.

I would like to thank once again at your presence to the former managements which played a major role in such a magnificent exhibition’s being owned by our Association.

UNICERA, beside being a ceramics and bathroom trade show which is most popular among Turkish manufacturers, with the widest participant profile, has become the most important trade fair of the territory in the part of the world containing Turkey. The trade fair, where the most important ceramics buyers and sellers of the Middle East, Central Asia and the Balkans come to meet, which has great commercial potential, has started to make a name for itself in foreign countries, too, gaining the capacity of an international trade fair in 2003 (UFI). Hence, UNICERA has become equivalent to Cersaie in Italy and Cevisama in Spain in Europe.

The UNICERA Trade Fair, which records significant rises in the number of participants and visitors each year, is important not only commercially but also as a platform of communication and culture transfer. The conference “The Design Trend in the World” presented by a Danish design expert at UNICERA held April 09 – 13, 2008 this year and the “Turkish Ceramics Industry and Sustainable Development” conference given by the representatives of public and private sectors the “visit program” organized for Ceramics Engineering and Fine Arts students who will start their careers in the near future in this industry and the “Ceramics Honor Awards” ceremony organized each year for sector members making significant contributions to the ceramics industry, have become the focus point of our trade fair. According to the first impressions on the trade fair, for which the customer satisfaction evaluation will be made in the upcoming days, there is a significant rise in the number of especially foreign visitors and active visitor participation is high.

Taking a glance at our other trade fair activities;

A successful show was held October 25 – 28, 2007 in conjunction with ANTIMDER and Akdeniz Tanıtım to reflect “Ceramics and Bathroom Solutions” under the general concept of “Design Solutions at Touristic Facilities” on the same exhibition grounds and simultaneously with Antalya Yapex Building Fair. Preliminary work has started for the fair scheduled for October 30 – November 02 this year.

4- Media and Communication Activities

- The size of TIMDER Magazine published as 5,000 copies quarterly was increased in its issued 51 dated JULY 2005. The number of firms placing adverts in our magazine has risen, thanks to the developments in content and design, moving the periodical to top ranks in the sectoral evaluation made by agencies.

-  The WEBSITE was renewed.

-  The mail-pigeon system, by which short and important messages are announced to all our members, is in use effectively.

5- Social Activities

- Iftar Dinner

The iftar dinner offered in Ramadan in 2007 was eaten with people in need of care, with no relatives, in Darülaceze like in the previous year. Also, an iftar dinner was organized for our members and their employees.

- TANER OĞUZ – TIMDER Football Tournament

Taner Oğuz – TIMDER Football Tournament held traditionally each year was organized May 06 – June 10, 2007 last year. The tournament participated in by 20 teams which started on April 20 this year will be completed on May 25, 2008.

6- Other Activities

- Meetings with Top Executives of Manufacturers

Opportunities for conveying the demands of our members were found and commons solutions were generated at the meetings where sectoral problems were discussed.

- Evaluation of sectoral complaints,

The problems experienced by some of our members with the manufacturers they are dealers of were conveyed to our Association and efforts were made for finding the solution through our Association.

- EU Relations

Our Association has regularly attended the briefings held under coordination of Minister of State Ali Babacan, in the accession process which started October 03, 2005.

- Contracted Organizations

The number of contracted firms for allowing our members and first degree relatives to get health transportation and accommodation services under better terms is increasing every day.

- Constructers Assembly Membership

TIMDER is taking part starting from July 19, 2006 at the Builders Assembly set up for determining the sector problems comprehensively at TOOB, developing appropriate proposals for solution and conveying such recommendations to the government and other agencies and having them concluded in time.

TIMDER’s views were considered in determining the 5 sector problems with priority to be discussed at the sectoral economy convention scheduled for March 16, 2007 which was postponed.

- Contract with GfK Turkey Research Services

The operations for forming statistics in product groups like ceramics, vitreous ware, bathtubs, taps and bathroom accessories which are in the building materials sub-sector group on;

* Total Building Market Sales Value Change (TRY)

*Total Building Market Sales Value Change, (-Comparative to the previous six months-%)

*Channel Growth, (Comparative with previous six months-%)

are continuing regularly.

2007 Sector Report has been offered to our principal members at TIMDER Website starting from April 18, 2008 (password required).

-Consulting Services

In addition to our Ankara based Consultant from whom we receive services on maintaining of the operations of our Association in line with legislation, who is an expert on EU Regulations, Competition Law and patents, assisting our members in solving their trade and private problems; it has been resolved to employ an Istanbul based Consultant and this second consultant expected to help our members in solving all their commercial and legal problems, has started offering his services in March 2007.

-Student Scholarships

Our Association, which is committed to education, is giving support to specific education beside sectoral education. A student scholarship fund was set up in the name of the late Hüseyin Rıfkı Erson, our founding member, and more than 30 students are provided scholarships. Also, educational equipment needed by certain schools were completed and sections in need of repair have been altered.

Respectfully

Kemal Yıldırım

Chairman of Board of Directors