Israel 1. Special Focus: Israel 2. Beth-El Zikhron Yaaqov

Epicos S.A. 2011 Israel

Volume 3 Number 03 – Wednesday, 19 January 2011

Part I Special Focus: Israel

1. Special Focus: Israel

2. Beth‐El Zikhron Yaaqov Industries Ltd. „No matter what type of air is outside, there is a definite requirement for user air quality inside“

3. Interview with Mr. Jonas Giesen, Account Manager‐ Project Management in International Sales and Export Department, of Beth‐El Zikhron Yaaqov Industries Ltd

4. Epicos " Industrial Cooperation and Offset Projects "

5. Development of a miniaturized robust data link to be used in mini UAV and smart guided weapons

6. Upgrade of aircrafts and helicopters internal & external lighting for Night Vision Imaging Systems (NVIS) compatibility

7. Epicos‐ Amazon

Part II

Epicos Newsroom

1. Mexico's Interjet signs up for 15 Superjet 100

2. Kazakhstan ratifies space cooperation agreement with Russia

3. India's airlines spend big but airports are lacking

4. S. Korea, Russia in arms technology transfer talks

5. Virgin America orders 60 Airbus A320s worth $5bn

Epicos S.A. 2011 Israel

Special Focus: Israel

Israel is a country of limited natural and financial resources. On the other hand it has a robust technological base both in thhe military and commercial sectors. By using it Israel managed to overcome the deficiencies that it has in natural and financial resources and developed technological products that are always in the leading edge. From electronics and electro‐optics, communications, information technology, safety and security, biotechnology and medical equipment through to traditional sectors such as plastics and rubber, automotive equipment, metal, electrical and electro‐mechanical equipment, Israeli products are recognized globally.

Additionally, Israel has developed a comprehensive defence industry with capabilities on ground, air and sea combat and has a major success beyond the initial expectations of the Israeli governments. Israeli Aerospace and Defence companies play a major role in a rather competitive international scene and are standing at the forefront of technological advancement, sophistication and efficiency by creating products of proven quality record, reliability and service ability. Based on this unique development, Israeli A&D companies have recorded several successes on selling these products globally.

The two main reasons behind the success of the Israeli technological base both in the military and commercial sectors are the unmatched pool of highly skilled workers and the world‐renowned research and academic capabilities that the country has. Israeli authorities encourage the establishment of centres of excellence, whereas the scientists and engineers working on them constantly struggle with the challenge of quickly developing new and innovative solutions.

Israel is definitely a success story when it comes to R&D. This is highlighted by the fact that is 2nd (behind only the United States) on a per capita basis in its ability to generate new, technology‐ based companies with innovative market‐focused products. One of the reasons of this success is without a doubt the importance that the Israeli government showcases in R&D. The government offers generous assistance to both high technology and other companies, to subsidize R&D and capital spending. According to the Israeli Ministry of Foreign Affairs the Office of the Chief Scientist (OCS) of the Ministry of Industry and Trade disburses to companies some $400 million annually in grants that cover between 30% and 66% of total development costs. The OCS recoups about $100 million per year in royalty payments from subsequent sales of successful products. As a result the amount that the country spent on research and development (R&D), in relation to its Gross Domestic Product (GDP), is among the highest in the world.

Epicos S.A. 2011 Israel

One of the first sectors that the Israeli research and development (R&D) expertise focused was Aerospace and Defence. Nevertheless, throughout the years R&D expanded out of the Aerospace and Defence sphere. Currently universities and research institutes play an equal part in expanding the technological base of the country as dozens of government and public research institutes, medical centres conduct R&D. The most important of them are: the Technion and the Hebrew University the "Bar‐Ilan University, Tel Aviv University, the University of Haifa the Ben‐Gurion University of the Negev, the Hadassah Medical Center in Jerusalem and the Hebrew University's Faculty of Agriculture in Rehovot. Furthermore, in several cases, there is cooperation between high tech industrial parks and neighbouring universities. The most significant examples are: the Kiryat Weizmann Industrial Park and the Weizmann Institute in Rehovot; Jerusalem's Har Hotzvim and Malkah Technological Parks and the Hebrew University; the MATAM High Tech Park in Haifa and the Haifa Technion; and the Atidim High Tech Park and Tel Aviv University.

Another essential ingredient that Israel’s Industry has is the high quality and professionalism of its workforce. This specific aspect is better understood when we examine the aerospace and defense industry of the country. The employees of the aforementioned industry have the plus that they have operational experience gained from serving in the Israel Defense Forces. Additionally, some of them continue to serve in the reserves of the Army. This symbiotic relationship between the Army and the senior defence‐industry employees is the reason why the Israeli engineers are successful and close to the operational user, simply because they have been there.

Additionally, the army plays the role of a “big school” as it actually performs a nationwide screening program through which identifies young people with talent in advance technologies and puts them through rigorous training via elite programs and other military functions. Additionally, the army helps young people to establish personal networks that often form the basis for later partnerships in industry. Therefore in Israel, you can often find co‐founders of many high‐tech companies began working together in the same army unit, something that can be fairly characterised as unique.

Israeli companies are global leaders in developing new, innovative products. They have developed the ability to foresee market needs and devise innovative, cost‐effective software products in a rapid and flexible way. Skilled workforce and advanced R&D capabilities has been the key elements behind this procedure.

Kyriazis Vasileios,

Epicos Newsletter Head Editor

Epicos S.A. 2011 Israel

Beth‐El Zikhron Yaaqov Industries Ltd. „No matter what type of air is outside, there is a definite requirement for user air quality inside“

In this article we will take the opportunity to describe the ethos and aims of the House of Beth‐El, the development and production of filtration systems for civilian and military customers which are a consequence of them. From the beginning, the company dealt with the development and construction of complex collective protection bomb‐shelters for the Israeli Civil Defence Command. As of today Beth‐El Industries has installed tens of thousands of systems in the bomb shelters of private homes, hotels, hospitals, schools, day‐care centres, retirement homes, embassies and many other civilian and military facilities. These systems have been tested not merely in exercise scenarios, but have also been proven in times of actual crisis. For example, in the Iraqi war of 2003, all the bomb‐shelter systems in Israel were activated. Parallel to bomb‐shelter systems, Beth‐El Industries has developed systems of collective protection for the Israeli Armed Forces, filtering the air breathed by personnel inside armoured vehicles. Additionally, other systems were provided to clean the combustion air for engines from dust and fine‐dust. Although Beth‐El did not start to export its products until 2001, today it is the world’s leading company for collective protection in armoured vehicles. The main reason for this impressive success has been Beth‐El’s resolve to assess and understand evolving threats in dynamic operational scenarios; and to take this understanding as the foundation for the design of its novel products; products which are technologically sophisticated, yet simple to operate. These systems are based on an entirely new conceptual approach and are therefore not directly comparable to conventional systems. As a result of this development, Beth‐El has become the main supplier to almost all NATO armies in just three years.

Operational conditions and threats facing modern armed forces

The starting point at Beth‐El is always consideration of the many and diversse threats to the air which soldiers breathe while deployed on global operations. The aim is to protect them, and to provide a single source of ‘clean’ air. Asymmetric terrorist threats to forces deployed on international missions are now the norm. Sadly, it should be assumed that terrorist groups have, or will soon have, access to agents of unconventional warfare.

Combined ventilation‐, air co nditioning‐, CO and CBRN/TIC protection system for Piranha V

The possibility of attacks using such agents is very real. They could come with no warning and would probably be intended to affect the air breathed by soldiers in convoys or military facilities. The main feature and danger of such threats would be the surprise effect, which would leave insufficient warning time for troops to activate their protection measures. For

Epicos S.A. 2011 Israel the affected soldiers, this would be a deadly trap. This highlights a clear need for preventative and permanent protection, similar to the mine/IED protection which is now a characteristic feature of current operations. In addition, industrial chemicals released intentionally or unintentionally, create a further threat to soldiers and their material. It is also important to consider the influence of extreme weather conditions and other factors such ashigh concentrations of dust and fine‐dust. There is also a threat from the hazardous faecal bacterial germs which are found in the air in many operational theatres. These can seriously affect the health of soldiers, and can lead to the loss or destruction of expensive and operationally important equipment. There is also the need for commanders to demonstrate a ‘duty of care’, accounting for national and international health and safety regulations.

The solution from Beth‐El

Mindful of this, Beth El has developed systems which offer successful solutions for modern armed forces with “complete protection“, that:

Combined ventilation‐ and CBRN/TIC protection system for the Boxer

• Start with legal requirements (i.e. Protection from carbon monoxide in the work place).

• Consider the local weather conditions (temperature, humidity, dust, fine dust, germs).

• Also consider industrial pollution (Release Other Than Attack/ ROTA, Toxic Industrial Chemicals/TIC).

• Account for the possibility of terrorism/enemy attacks on the air (dirty bombs, poisoning in the air and the use of biological and chemical warfare agents).

The biggest challenge here is to construct an operational filtration system that can function on a continual basis in vehicles, as well as in stationary and mobile infrastructure over a period of months. This goal has been achieved through various patented technologies, for example, through the development of a cyclone filter with dust‐ and fine‐dust separation capability. This technology has been developed to such an extent that it prevents the clogging of the downstream protection filter ‐ even in the most adverse weather conditions. Filters were commonly said to “age” due to degradation by humidity. By their special impregnation of the active charcoal, Beth El has virtually eliminated such “ageing”, making its filters suitable for continuous operation.

Epicos S.A. 2011 Israel

The product platform of Beth‐El

Today, the company delivers combined ventilation‐, air‐conditioning‐, CO‐, CBRN/TIC protection systems for “around the clock, 24/7” operation in any climate zone. Thus military customers have a single‐source supplier for worldwide operations, for the permanent and preventative protection of breathing air.

Dutch field hospital (based on the Hybrid Tent HTN) under NBC/TIC protection

The product platform includes:

• Combined ventilation‐ and CBRN/TIC collective protection for armoured command‐, function‐ and transport vehicles, e.g. for the following vehicles of the German Armed Forces: Dingo 2, Yak, Eagle IV, Mungo, Boxer, Wisent, GFF 4 (KMW), ZETROS, ACTROS, UNIMOG etc.

• Combined Ventilation/Air‐ conditioning/CBRN/TIC protection system for the armoured vehicles of more than 60 armies, NATO and worldwide.

• Combined Ventilation/Air‐conditioning/CO/CBRN/TIC protection systems for combat vehicles with weapon stations, for example Piranha V.

• CBRN/TIC collective protection for field camps, command posts, modular and mobile medical facilities, containers und permanent infrastructure, e.g. for the air‐supported tent and the standard tent of German Military units.

• The mobile isolation chamber, the IsoArk, can be integrated into medical facilities as a negative pressure system, as was the case with the German Medical Corps in their Congo mission in 2006. It is also possible to integrate the IsoArk without difficulty in positive pressure operation.

Conclusion

Just barely ten years ago Beth‐El Industries began exporting their CBRN/TIC protection systems; and has since then directed its efforts to developing new products, based on rapidly evolving operational requirements and the threats which face armed forces today. Global operations present adverse environmental conditions and permanent precautions which are necessary to ensure the purity of the air breathed by forces deployed in such hostile environments; whether in vehicles or base accommodation. Beth‐El has taken these framework requirements into consideration from the beginning, and has equipped modern armed forces with the respective combined collective protection systems over the years. Today Beth‐El systems protect thousands of soldiers of NATO forces amongst other nations,

Epicos S.A. 2011 Israel in Afghanistan, the Balkans, Iraq and elsewhere. Beth El systems keep soldiers safe, every day, protecting them from harm, and providing them with the fresh, clean air they need to deliver effective military capability.

Epicos S.A. 2011 Israel

Interview with Mr. Jonas Giesen, Account Manager‐ Project Management in International Sales and Export Department, of Beth‐El Zikhron Yaaqov Industries Ltd

“Beth‐El has nearly 40 years of experience in developing, designing and manufacturing collective CBRN/TIC filtration systems and significant experiences in performing large international tenders and projects. E.g. last year Beth‐El together with the M.Schall Company supplied the Royal Dutch Armed Forces with more than 4,000 m2 of CBRN/TIC protected field hospitals”, said Mr. Jonas Giesen, Acccount Manager ‐ Project Management in International Sales and Export Department, of Beth‐El Ziikhron Yaaqov Industries Ltd in an exclusive interview given to Epicos.

¾ Can you please tell us about the place of Beth‐El Zikhron Yaaqov Industries Ltd in the national and international market?

Beth‐El was founded 1977 and has written a history of success ever since. Today Beth‐El Industries is a leading developer, designer and manufacturer of CBRN/TIC protection systems for many applications beginning from collective CBRN/TIC ‐filtration systems for large shelters, army tents, containers and vehicles to installations in the safe rooms of private homes. At this time, Beth‐El’s cutting edge CBRN/TIC filtration technology is being used by 60 armies worldwide, many of which are NATO and PfP forces. Beth‐El has installed systems in over 120 different vehicle types. In the civilian market Beth‐El has supplied tenth of thousands of collective CBRN filtration systems in hotels, schools, kindergartens, retirement homes, embassies and amongst other applications.

All our systems have been field tested under actual conditions, and qualified by International Standard Institutes and laboratories from countries all over the world. Among these achievements are ISO 9001, AS EN 9100, AEP 54 and AQAP 2110 as well as being certified by the Israeli Civil Command.

¾ What are the next steps and priorities of the company?

To increase our presence in the international market and to break into new ones.

¾ Why someone should choose Beth‐El Zikhron Yaaqov Industries Ltd to do business?

Beth‐El has nearly 40 years of experience in developing, designing and manufacturing collective CBRN/TIC filtration systems and many experiences in performing large international tenders and projects. E.g. last year Beth‐El

Epicos S.A. 2011 Israel together with the M. Schall Company supplied the Royal Dutch Armed Forces with more than 4,000 m2 of CBRN/TIC protected field hospitals. In recent years Beth‐El has been awarded similar contracts from many different companies, like Krauss‐Maffei Wegmann (Dingo, Mungo, Boxer, TEP90, GFF 4 etc), GDELS‐Mowag (Piranha III, Duro, Eagle) Iveco (LMV, VBM, VTMM, etc) Rheinmetall Landsysteme (Yak, Boxer) and many more.

¾ Is there is a specific country that the company is going to expand?

We are currently investigating and breaking into the American market, as well as the east European and Fareast market.

¾ What are the main technological advantages of the company?

The advantages of Beth‐El’s cutting edge “around the clock 24/7” technology are manifold. Here are some features that set us significantly apart from other NBC protection companies:

• Modular system concept – reduced logistics cost and efforts • Highly efficient – reduces service costs • Age resistant due to special carbon impregnation (BE patented technology) – enhances filter‐lifetime • Compact and reduced weight – reduces space claim • Very low pressure drop (BE patented technology) – power saving • Tested and certified by international laboratories and institutes such as: WIS – Germany TNO – Netherlands Porton Down – UK Edgewood – USA FOI – Sweden BZS – Switzerland And many more • Fully integrated ACU – lower cost by increased performance Ventilation/CBRN/TIC/AC Systems

¾ What are the main distinct divisions and market segments that Beth‐El Zikhron Yaaqov Industries Ltd is activated?

• Military market: COLPRO CBRN/TIC protection for tents COLPRO CBRN/TIC protection for vehicles COLPRO CBRN/TIC protection mobile shelters and containers Air Cleaner for tanks and heavy duty vehicles Fuel pumps for tanks and heavy duty vehicles Ventilation/CBRN/TIC filtration system

• Civilian market: COLPRO CBRN/TIC protection for private homes COLPRO CBRN/TIC protection for public buildings COLPRO CBRN/TIC protection for embassies COLPRO CBRN/TIC protection for bomb shelters

• Medical: Positive/Negative isolation chambers – stationary for hospitals Air Cleaner Positive/Negative isolation chambers – transportable for ambulance vehicles

Epicos S.A. 2011 Israel

¾ Is Beth‐El Zikhron Yaaqov Industries Ltd currently investing in a new technology?

Beth‐El is continuously improving and expanding its technological distinctiveness. Our latest developments include CO‐filtration technologies implemented into our existing CBRN/TIC/Ventilation/AC ‐filtration systems. Furthermore are we always willing and happy to find, develop and integrate customized solutions for our customers upon request.

Epicos S.A. 2011 Israel

Epicos “Industrial Cooperation and Offset Projects”

Epicos " Industrial Cooperation and Offset Projects " provides a unique set of online tools enabling the structure, identification and implementation of comprehensive Offsets programs, through a searchable database. By introducing different offset projects and ideas proposed by local A&D industry it ensures the optimum cost for Prime Contractors and reassures that the priorities of local industry are fully met…

For Further Information Press Here

Development of a miniaturized robust data link to be used in mini UAV and smart guided weapons A company with extensive experience in providing advanced wireless communication and data links solutions for various applications is proposing ‐within the frame of an offset program‐ the collaboration with a Prime Contractor or a local company for the development and deployment of a miniaturized robust data link to be used in mini UAVs and smart guided weapons. The new miniaturized robust data link system could be based on an existing mini data link system already developed and deployed by the company.

For Further Information Contact our ICO Department

Mail at: a‐[email protected]

Upgrade of aircrafts and helicopters internal & external lighting for Night Vision Imaging Systems (NVIS) compatibility A company with extensive experience in the design and manufacturing of illuminated display and control systems is proposing in the frame of an offset program the cooperation with a military or homeland security agency or with prime contractors for the upgrade of special operation aircrafts and helicopters internal & external lighting for Night Vision Imaging Systems (NVIS) compatibility.

For Further Information Contact our ICO Department

Mail at: a‐[email protected]

Epicos S.A. 2011 Israel

Epicos‐ Amazon

Transfer of Technology: Sustainable and Unsustainable Experience from Israel, by A. Paul Hare

Transfer of Technology is an important issue in the current state of industries. The author of this book is tying to delineate this issue by presenting an eclectic and diverse mix of research strategies for understanding the impact of desertification, as well as applications for coping with arid environments. Emerging from experiences in Israel's Negev Desert, the book should be of interest to any one concerned about the effects of global environmental change. As the subtitle "Sustainable and unsustainable experience from Israel" suggests, some learnings are more transferable than others, a challenge revealed in many chapters that examine transfer beyond Israel to other nations in Africa and Asia. The array of research reported encompasses land degradation, gully incision and desertification, draught analysis using remote sensing, ground water pollution, parasite populations in rodent species, soil and dust analysis.

The Take‐off of Israeli High‐Tech Entrepreneurship During the 1990's: A Strategic Management Research Perspective (Technology, Innovation, Entrepreneurship and Competitive Strategy), by Avi Fiegenbaum

What are the five factors that contributed to Israeli high‐tech success? This is what this book is trying to describe and explain. Within less than a decade, during the 1990s, the state of Israel established its global high tech sector. The number of startups rose to almost 3,000. Total venture capital available reached approximately $ 3 billion. Israeli firms trading on NASDAQ climbed to 120 with aggregate market value of approximately $120 billion, twice the Israeli GNP. This book emphasizes the multilevel nature of this development from a strategic management perspective.

Epicos S.A. 2011 Israel

Epicos Newsroom

Mexico's Interjet signs up for 15 Superjet 100

Mexico's Interjet airline signed a contract on Monday for 15 long‐range Superjets built by Russia's Sukhoi and Italy's Alenia Aeronautica, Alenia's parent company Finmeccanica said.

The contract for the 15 Superjet 100 aircrafts, along with an option for five others, is worth $650 million (487 million euros), Finmeccanica said in a statement.

Superjet International said it would provide after‐sales assistance for the new Sukhoi Superjet 100 aircraft fleet for 10 years, Finmeccanica added.

The delivery of the jets is scheduled for the second half of 2012.

The jet, which has 98 seats, was developed to compete with Brazil's Embraer and Canada's Bombardier on the regional air transportation market.

The aircraft is considered a great hope for Russian aviation, which has been in decline since the fall of the Soviet Union in the early 1990s.

Alenia owns 25 percent plus one share of Sukhoi Civil Aircraft, the Sukhoi unit developing the jet, as well as 51 percent of Superjet Internantional, which is handling sales of the aircraft.

The remainder of Superjet International is controlled by Sukhoi.

Source: 2009 AFP, Agence France‐Presse (AFP)

Kazakhstan ratifies space cooperation agreement with Russia

ASTANA, January 17 (RIA Novosti) ‐ Kazakh President Nursultan Nazarbayev has signed into law the ratification of a Russian‐Kazakh space cooperation agreement, the government press service said on Monday. The intergovernmental agreement on cooperation in space research and the use of space for peaceful purposes was signed on May 22, 2008. It provides for tax breaks and commercial preferences in the delivery of goods from countries that are not party to the Russia‐Belarus‐Kazakhstan customs union. Russia and Kazakhstan will work together in Earth remote sensing, the development of spacecraft, launch vehicles and other equipment, the creation of ground‐based space infrastructure and other spheres.

Source: Ria Novosti

India's airlines spend big but airports are lacking

An upstart Indian carrier's $15 billion order with Airbus is a bold bet on travel demand in the fast‐growing country. But ageing airports and over‐ambition could yet clip the industry's wings.

Epicos S.A. 2011 Israel

IndiGo, which was launched in 2005, on Wednesday stormed onto the international stage by announcing a deal for 180 new aircraft, the largest number of Airbus planes ever bought in a single order.

"We are putting our money where our mouth is," IndiGo president Aditya Ghosh boasted after sealing the deal at Airbus headquarters in Toulouse, southwest France.

"If the country has to grow by 9‐10 percent, the airline business has to be an equal partner," he told the Mint daily newspaper. "There will be one or two years of up and down, but overall there will be only one direction."

The Airbus contract, he said, was worth "close to $15 billion", less than the planes' total list price of $15.6 billion, while a separate multi‐billion‐dollar engine order will follow.

The privately owned IndiGo is the rising star in the booming Indian industry, which saw passenger numbers leap 25 percent year on year in November.

Although the country remains deeply impoverished in many areas, its economic boom is elevating millions into the aspirational middle classes, and they are buying increasing quantities of consumer electronics, cars ‐‐ and flights.

Long‐distance travel used to mean hours on cramped and noisy trains, but rising wages and the liberalisation of the airline market that began in the 1990s has led to new choices.

IndiGo is now the nation's third‐largest carrier with 836,000 customers a month, according to November data from the aviation ministry, behind Jet Airways and Kingfisher but ahead of beleaguered state‐run Air India.

But some industry experts urge caution, recalling that India's aviation sector has already made a false start, when an over‐ambitious expansion a decade ago exposed major airlines to the global downturn.

In 2009, Kingfisher, Jet and others begged unsuccessfully for a government bailout after suffering huge losses caused by high oil prices and over‐capacity.

"Continued success will depend on a judicious balance of supply and demand in the market," according to Dinesh Keskar, the head of Indian operations for US planemaker Boeing.

"Two years ago, there were too many seats chasing too few passengers. Now, fares are at a level where airlines can make a profit."

India's economy has returned to annual growth levels of around 8.0‐9.0 percent which were the norm before the global financial crisis.

Passengers are buying more tickets, prompting upbeat carriers to hike fares as demand outstrips capacity.

Yet as airlines modernise and expand, analysts warn the nation's airports lag behind, threatening to drag the soaring aviation business back to earth.

Epicos S.A. 2011 Israel

"It's not just about inducting new aircraft to meet the growing air traffic demand," Mahantesh Sabarad from Mumbai‐based Fortune Equity Brokers told AFP. "It's about runway capacity, and airport capacity.

"If adequate attention is not given to build larger airports, IndiGo's plans may well be grounded."

New Delhi opened a 2.7‐billion‐dollar terminal in July last year, but Mumbai has been unable to relieve chronic congestion at its only airport, which is hemmed in by slums on three sides.

Environmental concerns, difficulties in relocating local people, corruption, the slow legal system and weak land acquisition legislation have meant proposals to build a second airport have been fought over for 10 years.

In November, the backers finally got the right to build a new airport among mangrove trees on a plot southeast of the city of 18 million people.

The International Air Transport Association (IATA), an industry lobby group, points to Mumbai as an example of the under‐investment in infrastructure which has restricted traffic.

"Investments in the development of airport infrastructure have only been very recent," spokesman Albert Tjoeng told AFP.

IndiGo, meanwhile, is expected to continue to invest.

Analysts say it might go public and offer shares later this year and new international routes to regional countries are expected to follow.

‐‐ Dow Jones Newsires contributed to this report –

Source: 2009 AFP, Agence France‐Presse (AFP)

S. Korea, Russia in arms technology transfer talks

South Korea has been negotiating with Russia to receive advanced defence technology as part of debt repayments, officials said Tuesday.

Russia has so far provided South Korea with weapons worth $740 million as a way of repaying some $1.3 billion in debts dating back to the days of the Soviet Union.

Seoul is now in talks on the transfer of cutting‐edge technology from Moscow, the South's Defence Acquisition Programme Administration said.

"We have yet to complete negotiations with Russia," a spokesman for the state agency controlled by the defence ministry told AFP, without giving details.

Yonhap news agency quoted a military source as saying the Russian technologies include long‐range radar and a defence system against an electromagnetic pulse (EMP) attack.

Epicos S.A. 2011 Israel

North Korea is believed to have been developing an EMP system that could disrupt South Korean military communications and radar, it said.

Since the 1950‐53 Korean War, South Korea has been heavily dependent on US technology for its arms acquisitions.

Source: 2009 AFP, Agence France‐Presse (AFP)

Virgin America orders 60 Airbus A320s worth $5bn

Low‐cost US carrier Virgin America has ordered 60 medium‐range Airbus A320 airliners for around $5 billion (3.8 billion euros), the European planemaker Airbus announced Monday.

The contract was signed on December 29, allowing Airbus to boast Monday that its 2010 order book was bigger than that of arch US rival Boeing.

Half of the orders were for the A320 in its "A320neo" configuration ‐‐ "New Engine Option" ‐ ‐ which the firm says gives operators 15 percent fuel savings.

Virgin America is an independent American airline that began flying in 2007 and is based in San Francisco. It is only 25 percent owned by Richard Branson's British‐based Virgin Group and serves mainly US domestic routes.

Source: 2009 AFP, Agence France‐Presse (AFP)