The Chairman of Advanced Electronics Company (AEC), AlSharif Nasser Al-Mansour, stated that the President and Chief Executive of the company, Dr. Ghassan Abdulrahman Al Shibl, expressed during a recent board meeting that he did not wish to renew his contract with the company due to personal reasons as his current contract expires at the end of 2015. Dr Al Shibl expressed his gratitude to the Board of Directors for their support to the company during his service over the last 25 years, particularly during the last 14 years in his role as President and CEO. He also expressed his full confidence in AEC as a well-structured company and in its strengths, resilience and capacity to operates in an orderly manner in a changing environment and its ability to continue to achieve its ambitions plan whilst actively serving the national economy. In turn, the Chairman and the board extended their sincere thanks and appreciation to Dr Al Shibl for his outstanding achievement. As a result of Dr Al Shibl’s leadership, AEC has successfully managed to build distinct and internationally-recognized technical and professional capabilities that positioned AEC as one of the most advanced regional companies in its market sectors. Guided by the wise policies of the Government of the Custodian of the Two Holy Mosques, AEC has established an excellent track record in technology transfer, contributing to the diversification of the local economy and creating job opportunities for Saudi citizens. To leverage Dr AlShibl’s professional services, and to provide continuation, the board has requested and approved his appointment as a part-time consultant to support the company strategy implementation and further develop of the company capabilities in the commercial and defense areas. Finally, the Board stated that Khaled Khowaiter, Senior Vice President and Chief Financial Officer of the company, is assigned to assume the work as Chief Executive Officer.

Advanced Electronics Company (AEC) of Saudi Arabia and Power System have signed a partnership Agreement to develop new business opportunities in the field of Solar Energy, with the focus on Photovoltaic (PV) IP 65 Containers solutions. The purpose is to increase the local content of solar energy value chain that AEC currently specialized in, which is manufacturing PV inverter in partnership with a German Company called KACO new energy with a view to help the growing demand for energy in Saudi Arabia and the MENA region. AEC and Power System agreed that it is in the best interests of their companies to work together in exploring the development of Photovoltaic Solar Energy opportunities. Among a number of objectives and initiatives for consideration, is the potential to set up solar energy IP65 container manufacturing at AEC, for the Kingdom of Saudi Arabia and MENA region. The plan is to also establish a customer support and maintenance services center at AEC’s facility in Riyadh, Saudi Arabia. Mr. Khalid Al Khowaiter, President & CEO of AEC, commented: “This collaboration reflects the respected capabilities of AEC as a world-class electronics manufacturer, and I am sure that AEC and Power System will make a very successful team. Our joint initiative also aligns completely with the Kingdom renewable Energy strategy. In fact, current indications suggest that the Photovoltaic Solar Energy market in Saudi Arabia will have a value of 70 billion Saudi Riyals over the next twenty years. Ultimately, we are looking forward to the day that our nation becomes the acknowledged leader in solar energy.” Mr. Mirko Maffeis CEO of Power System, stated: “Power System provides a decades of experience, and has ensured its specialized technological leadership through adherence to the highest global technical standards. At the same time, the capabilities of AEC, and their expertise in knowledge and technology transfer, are renowned. Together, we will support Research and Development (R&D) in the Kingdom, as well as repairs and maintenance for customers. The local manufacture of solar containers will enable prompt local service and support. This will provide the benefits of a reduced level of items that require to be held in stock, as well as shorter lead times for supply.” Eng Adil Alomair, AEC Solar Energy Sector head; said: “AEC is always ready to handle new opportunities, and we are able to move to full production very swiftly. At the same time, we see this strategic teaming agreement as emphasizing AEC’s support for the local economy. Of course, all of our activities underscore our support for local employment, and this is an outstanding opportunity to create new jobs. We believe that our strong commitment to Saudization sets an example of success that the whole Kingdom can be proud of. Saudi Arabia is regarded as one of the top five locations in the world for potential Photovoltaic generation of electricity. The Kingdom receives some of the most intense sunlight exposure on the planet; therefore, sunlight could prove to be one of the nation’s greatest natural resources. Energy technologies are of vital impor'tance to Saudi Arabia, since energy is one of the most crucial drivers of the Kingdom’s development and economic growth. New and renewable energy technologies are promising methods of expanding Saudi Arabia’s energy production capacity in the future.” Advanced Electronics Company, established in 1988, is an Offset Program company and has become a recognized regional pioneer in the innovation and development of advanced electronics, serving the Military, Telecom and Industrial Sectors. As one of the Kingdom of Saudi Arabia’s premier state-of-the-art technology companies, AEC’s leadership includes expertise in the fields of modern electronics manufacturing, system integration, as well as repair and maintenance services. AEC has become a gateway to highly specialized services and opportunities, offering local access to world-class engineering, manufacturing, repair, maintenance and complete solution capabilities at its facilities. The company also provides the benefit of easy and rapid access to other regional markets, customers and distribution networks. Power System Srl established in 2002, it is an innovative and dynamic company that operates in the field of renewable energy in the electric field and able to provide professional consulting, design and construction. Since the plant civil and industrial use, the company has specialized in the production of electrical panels, MV / LV transformers, automation systems, intrusion detection, fire detection systems, systems of energy production from renewable sources (photovoltaic, wind, biomass, hydro). Qualified specialist personnel in MT and BT connections, realization of cabin MT, fixed and mobile substations and high-voltage assembly. For further information, contact AEC via: P.O. Box 90916, King Khalid International Airport, Industrial Estate, Riyadh 11623, Saudi Arabia Tel : + 966 1 220 1350 Fax : + 966 1 220 1355 Email: Info@aecl.com

Lockheed Martin (NYSE: LMT) and Advanced Electronics Company (AEC) recently celebrated the opening of the Sniper® Advanced Targeting Pod (ATP) Expanded Repair Capability center in the Kingdom of Saudi Arabia. This marks the start of operations at the first Sniper ATP support center located outside the United States. The Sniper ATP Expanded Repair Capability center provides sustainment support for Sniper ATPs, which perform different defense operations. Due to its in-Kingdom location, the center helps expedite repair times, improving readiness. It also generates in-Kingdom employment opportunities and expands the local manufacturing base. “We are proud to partner with AEC to enhance in-Kingdom technical capabilities through work performed at this center,” said Alan Chinoda, Chief Executive for Lockheed Martin in the Kingdom of Saudi Arabia. “As the sustainment hub for targeting systems in the Kingdom, the Sniper ATP Expanded Repair Capability will also help ensure fleet readiness.” “This Expanded Repair Capability center at AEC is a result of Lockheed Martin’s recognition of the AEC’s capabilities in products and services according to the highest international quality standards,” said Mohammed Al-Khalifah, Senior VP at AEC. “By working with technology leaders like Lockheed Martin, AEC can expand its manufacturing and repair base and service the needs of customers in our region. This center reaffirms and demonstrates our commitment and outstanding capabilities of our workforce, the majority of whom are Saudi Nationals.” Lockheed Martin and AEC established the Sniper ATP Expanded Repair Capability in cooperation with the Kingdom of Saudi Arabia Economic Offset Program. The center is part of an existing offset agreement between the Saudi Arabia Economic Offset Committee and Lockheed Martin. Lockheed Martin and AEC have previously collaborated on various defence products and systems which led to transfer hi-tech to Kingdom of Saudi Arabia. About AEC AEC was created under the Saudi Economic Offset Program and is the leading company in the region capable of providing sophisticated systems exceeding the most demanding international standards. AEC is involved in a number of important national defense, telecom and industrial projects. Currently more than 74 percent of AEC employees are Saudi nationals working in a variety of challenging technical and professional positions. AEC’s Charter includes the full value chain of services for advanced Electronic Products and Systems for a variety of customers. About Lockheed Martin Headquartered in Bethesda, Maryland, Lockheed Martin is a global security and aerospace company that – with the addition of Sikorsky – employs approximately 126,000 people worldwide and is principally engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services. For additional information, visit our website: www.lockheedmartin.com.

• Supplier of the Year demonstrates focus on value creation, exceeding customer expectations • Strong supplier partnerships help Boeing achieve record year Boeing has awarded Saudi Arabia’s Advanced Electronics Company (AEC) a 2015 Supplier of the Year Award. Across the world, Boeing recognized 12 suppliers for the high quality of their product or service and the value they create for Boeing and its global airline and government customers. Mr. Khalid AlKhowaiter AEC President and CEO, said: “AEC is proud to receive this award from Boeing. The award reflects the substantial technical capabilities and the high quality standards exist at AEC.” He added: “AEC is also proud to work with Boeing and I highly appreciate the major role that Boeing is playing in the transfer of technology to the Kingdom of Saudi Arabia”. Mr. AlKhowaiter also expressed his profound thanks and gratitude to AEC employees for their efforts in the achievement of the award. Strong performance and close collaboration with these award-winning suppliers helped Boeing exceed customers’ expectations while contributing to Boeing’s record $96.1 billion in revenue in 2015. “I’ve witnessed firsthand the critical role that suppliers—and especially the best ones—play in Boeing’s success,” said Dennis Muilenburg, Boeing chairman, president and CEO. “Our supply chain partners help us provide our customers with more capability for less cost in today’s tough and dynamic business environment. We have ambitious goals for the future, and I know we will achieve them, in part, by working closely with our exceptional extended team.” In 2015, Boeing spent $62 billion with more than 13,000 suppliers from 47 countries. Supplier-provided components and assemblies make up approximately 65 percent of the cost of Boeing products. “We are extremely proud to be collaborating with remarkable suppliers that play a key role in the enduring relationship between Boeing and the Kingdom,” said Ahmed Jazzar, President of Boeing Saudi Arabia. “The Supplier of the Year Award is evidence of AEC’s dedication and contribution to Boeing’s success.” To view videos of the 2015 award-winning suppliers, please visit http://www.boeing.com/media/boeing-supplier-of-the-year-2015.page

In the award 3rd cycle. AEC has won King Abdul Aziz Quality Award for the second time on the category of large production organizations, since its first winning back in 2008. As usual, AEC is a pioneer in applying world class quality standards, and best practices across all its functions. We are committed toward quality, and embedded it in all our business areas. KAQA is the highest quality award in the kingdom. It is prestigious and apply very strict measurements. KAQA is the local equivalent quality award for the European Foundation for Quality Management (EFQM), and the Malcolm Baldrige American national quality award. It has substantial role in elevating local manufacturing capabilities, stimulating productivity and enrich market competitiveness. There is no doubt that wining KAQA will give us more confidence in continuing the path of excellence which will reflect on our products and service. Also, will encourage us to acquire more awards and certifications both on local and international levels.

AEC has participated at GITEX Dubai 2017 held at Dubai World Trade Center 8-12 October 2017. AEC’s showcase in this exhibition included many ICT systems and solutions designed and developed by our highly skilled engineers and technicians. AEC’s stand attracted many IT professionals and specialists and they expressed their high remarks of AEC’s substantial ICT capabilities. During GITEX Dubai 2017, AEC has signed many technical agreement and cooperation with many leading IT companies such as, Accenture, Life Ray, LTI and IKUSI. All these agreements will definitely increase the existing AEC’s technical capabilities and will lead to more business opportunities and cooperation.